Growth Management and Strategies
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 | |||||||||||||
| Job Bids | 0% | $1,000 | $1,500 | $2,250 | $3,375 | $5,063 | $7,594 | $11,391 | $17,086 | $25,629 | $38,443 | $57,665 | $86,498 |
| Retainer | 0% | $500 | $875 | $1,531 | $2,680 | $4,689 | $8,207 | $14,361 | $25,133 | $43,982 | $76,968 | $134,695 | $235,716 |
| Needs Analysis | 0% | $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 | $0 |
| Total Sales | $1,500 | $2,375 | $3,781 | $6,055 | $9,752 | $15,800 | $25,752 | $42,218 | $69,611 | $115,412 | $192,360 | $322,213 | |
| 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 | |
| Job Bids | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Retainer | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Needs Analysis | $350 | $403 | $463 | $532 | $612 | $704 | $810 | $931 | $1,071 | $1,231 | $1,416 | $1,628 | |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Subtotal Direct Cost of Sales | $350 | $403 | $463 | $532 | $612 | $704 | $810 | $931 | $1,071 | $1,231 | $1,416 | $1,628 | |
| 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 | ||
| Salesperson #1 | 0% | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |
| Total Payroll | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | |
| 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 | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |
| Long-term Interest Rate | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | |
| Tax Rate | 30.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | |
| 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 | $1,500 | $2,375 | $3,781 | $6,055 | $9,752 | $15,800 | $25,752 | $42,218 | $69,611 | $115,412 | $192,360 | $322,213 | |
| Direct Cost of Sales | $350 | $403 | $463 | $532 | $612 | $704 | $810 | $931 | $1,071 | $1,231 | $1,416 | $1,628 | |
| Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Cost of Sales | $350 | $403 | $463 | $532 | $612 | $704 | $810 | $931 | $1,071 | $1,231 | $1,416 | $1,628 | |
| Gross Margin | $1,150 | $1,973 | $3,318 | $5,522 | $9,140 | $15,096 | $24,943 | $41,287 | $68,540 | $114,180 | $190,944 | $320,585 | |
| Gross Margin % | 76.67% | 83.05% | 87.76% | 91.21% | 93.72% | 95.54% | 96.86% | 97.79% | 98.46% | 98.93% | 99.26% | 99.49% | |
| Expenses | |||||||||||||
| Payroll | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | |
| Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
| Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Rent | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | |
| Utilities | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | $650 | |
| Insurance | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
| Payroll Taxes | 15% | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 | $675 |
| Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
| Total Operating Expenses | $10,075 | $10,075 | $10,075 | $10,075 | $10,075 | $10,075 | $10,075 | $10,075 | $10,075 | $10,075 | $10,075 | $10,075 | |
| Profit Before Interest and Taxes | ($8,925) | ($8,103) | ($6,757) | ($4,553) | ($935) | $5,021 | $14,868 | $31,212 | $58,465 | $104,105 | $180,869 | $310,510 | |
| EBITDA | ($8,925) | ($8,103) | ($6,757) | ($4,553) | ($935) | $5,021 | $14,868 | $31,212 | $58,465 | $104,105 | $180,869 | $310,510 | |
| Interest Expense | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | |
| Taxes Incurred | ($2,712) | ($2,629) | ($2,199) | ($1,494) | ($336) | $1,570 | $4,721 | $9,951 | $18,672 | $33,277 | $57,841 | $99,327 | |
| Net Profit | ($6,328) | ($5,588) | ($4,672) | ($3,174) | ($714) | $3,337 | $10,032 | $21,147 | $39,678 | $70,714 | $122,913 | $211,069 | |
| Net Profit/Sales | -421.85% | -235.27% | -123.57% | -52.42% | -7.32% | 21.12% | 38.96% | 50.09% | 57.00% | 61.27% | 63.90% | 65.51% | |
| 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 | $1,500 | $2,375 | $3,781 | $6,055 | $9,752 | $15,800 | $25,752 | $42,218 | $69,611 | $115,412 | $192,360 | $322,213 | |
| Subtotal Cash from Operations | $1,500 | $2,375 | $3,781 | $6,055 | $9,752 | $15,800 | $25,752 | $42,218 | $69,611 | $115,412 | $192,360 | $322,213 | |
| 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 | $1,500 | $2,375 | $3,781 | $6,055 | $9,752 | $15,800 | $25,752 | $42,218 | $69,611 | $115,412 | $192,360 | $322,213 | |
| 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 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | |
| Bill Payments | $111 | $3,332 | $3,479 | $3,979 | $4,770 | $6,032 | $8,072 | $11,398 | $16,867 | $25,925 | $41,023 | $66,337 | |
| Subtotal Spent on Operations | $4,611 | $7,832 | $7,979 | $8,479 | $9,270 | $10,532 | $12,572 | $15,898 | $21,367 | $30,425 | $45,523 | $70,837 | |
| 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 | $4,611 | $7,832 | $7,979 | $8,479 | $9,270 | $10,532 | $12,572 | $15,898 | $21,367 | $30,425 | $45,523 | $70,837 | |
| Net Cash Flow | ($3,111) | ($5,457) | ($4,198) | ($2,425) | $482 | $5,268 | $13,180 | $26,320 | $48,244 | $84,987 | $146,837 | $251,376 | |
| Cash Balance | $42,689 | $37,232 | $33,034 | $30,609 | $31,092 | $36,360 | $49,539 | $75,859 | $124,103 | $209,090 | $355,927 | $607,303 | |
| 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 | $45,800 | $42,689 | $37,232 | $33,034 | $30,609 | $31,092 | $36,360 | $49,539 | $75,859 | $124,103 | $209,090 | $355,927 | $607,303 |
| Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Current Assets | $45,800 | $42,689 | $37,232 | $33,034 | $30,609 | $31,092 | $36,360 | $49,539 | $75,859 | $124,103 | $209,090 | $355,927 | $607,303 |
| 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 | $45,800 | $42,689 | $37,232 | $33,034 | $30,609 | $31,092 | $36,360 | $49,539 | $75,859 | $124,103 | $209,090 | $355,927 | $607,303 |
| 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 | $3,217 | $3,347 | $3,822 | $4,571 | $5,767 | $7,698 | $10,846 | $16,020 | $24,585 | $38,858 | $62,782 | $103,090 |
| 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 | $3,217 | $3,347 | $3,822 | $4,571 | $5,767 | $7,698 | $10,846 | $16,020 | $24,585 | $38,858 | $62,782 | $103,090 |
| Long-term Liabilities | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
| Total Liabilities | $25,000 | $28,217 | $28,347 | $28,822 | $29,571 | $30,767 | $32,698 | $35,846 | $41,020 | $49,585 | $63,858 | $87,782 | $128,090 |
| Paid-in Capital | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 | $35,000 |
| Retained Earnings | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) | ($14,200) |
| Earnings | $0 | ($6,328) | ($11,915) | ($16,588) | ($19,761) | ($20,475) | ($17,139) | ($7,107) | $14,040 | $53,718 | $124,432 | $247,345 | $458,414 |
| Total Capital | $20,800 | $14,472 | $8,885 | $4,212 | $1,039 | $325 | $3,661 | $13,693 | $34,840 | $74,518 | $145,232 | $268,145 | $479,214 |
| Total Liabilities and Capital | $45,800 | $42,689 | $37,232 | $33,034 | $30,609 | $31,092 | $36,360 | $49,539 | $75,859 | $124,103 | $209,090 | $355,927 | $607,303 |
| Net Worth | $20,800 | $14,472 | $8,885 | $4,212 | $1,039 | $325 | $3,661 | $13,693 | $34,840 | $74,518 | $145,232 | $268,145 | $479,214 |
By 
