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Wright's Dental Lab

Executive Summary

Wright’s Dental Laboratory is being established with the goal of providing dentists with restorations of superior quality and value. We offer all the state-of-the-art esthetic materials. Our product quality and services are excellent.

At Wright’s Dental Laboratory, we recognize that every practice is different… and every doctor is unique. We will take the time to listen to casework problems. Examine the doctor’s individual situation. In short, we reach a full understanding of their needs before we recommend a solution. Then, working as their partner, we put our extensive resources to work for them.

The result is creative and practical solutions to their casework needs on a consistent basis. All backed by over twenty-five years of experience and an investment in the techniques that enhance patient care quality like Product C*, Brand B, Brand B Model 2, and Product E, as well as all the premier implant systems. At Wright’s Dental Laboratory, our products and services are a valuable complement to well-established restorative treatment plans that promote aesthetics, tooth reinforcement and conservative preparation techniques.

*Registered Trademark brand and product names have been disguised throughout this sample plan.

Keys to Success

The keys to success for Wright’s Dental Laboratory are:

  1. Our dental laboratory must continually adjust its methods to meet the constantly evolving challenges of dentistry and aspirations of the dental professional.
  2. Our dental laboratory must be deeply and loyally committed to maintaining CONSISTENT product excellence.
  3. Our dental laboratory’s only dynamic resource is people. It must develop opportunities for each person to use his/her abilities to the utmost of their potential.

Objectives

The objectives of Wright’s Dental Laboratory are as follows:

  • Increase sales significantly each year.
  • Increase the number of dentists using lab services aggressively each year.
  • Expand service area to include the entire LochJaw tri-county area.
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Company Summary

Wright’s Dental Laboratory offers state-of-the-art dental restorations services to dental professionals.

Charles Wright attended State University and is a certified dental technician. He entered the dental laboratory industry in 1994 and by 2000 he had established his own small dental laboratory. Charles now joins his expertise with that of his brother, David, to create Wright’s Dental Laboratory. The synergy of their respective talents will allow the precision restorative capabilities of Wright’s Dental Laboratory to consistently provide leading-edge technologies and a high index of progressive services to the profession in the greater LochJaw area.

As an advocate of continuing dental education, Mr. Wright’s commitment to continuing education is illustrated by his involvement with metal-free restorations. Charles has successfully completed training in such state of the art techniques as Product E and Product E model 2 and Brand B model 2. He has also completed training for all the premier implant systems including Brand J, Brand K, Product L, Product M, Brand N, and Brand O.

Among his accomplishments, Charles has held the posts of vice president, secretary and treasurer of the Oregon State Dental Laboratory Association. Additionally, he is a member of the National Association of Dental Laboratories (NADL), the State Dental Laboratory Association and the American Academy of Cosmetic Dentistry (AACD).

David Wright attended State University and is a certified dental technician. He has spent over ten years working with some of the region’s most respected practitioners. David is committed to continuing education and has successfully completed Corporation X’s Advanced Crown & Bridge Dental Studies. He has also successfully completed training in all the premier implant systems including Brand J, Brand K, Product L, Product M, Brand N and Brand O.

David entered the dental laboratory industry in 1991. He began his training under the tutelage of his father with various phases of fixed and removable techniques. Over the years, David completed his training to become fully proficient in the design and fabrication of precision attachment restorations, implants and full mouth rehabilitation cases.

Start-up Summary

The start-up cost of Wright’s Dental Laboratory will consist primarily of equipment. Charles and David will each invest personal funds and also secure a long-term loan.

Dental laboratories business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $300
Brochures $1,000
Insurance $2,000
Rent $2,000
Lab Setup $30,000
Office Setup $20,000
Expensed Equipment $20,000
Total Start-up Expenses $76,300
Start-up Assets
Cash Required $71,700
Start-up Inventory $10,000
Other Current Assets $12,000
Long-term Assets $80,000
Total Assets $173,700
Total Requirements $250,000

Company Ownership

Wright’s Dental Laboratory, located in a custom designed, 8,000 square foot facility using the latest, state-of-the-art restoration production systems and computerized case tracking, is owned by Charles and David Wright. The company will operate as a general partnership with both Charles and David performing management functions.

Wright’s Dental Laboratory offers state-of-the-art dental restorations services to dental professionals.

Charles Wright attended State University and is a certified dental technician. He entered the dental laboratory industry in 1994 and by 2000 he had established his own small dental laboratory. Charles now joins his expertise with that of his brother, David, to create Wright’s Dental Laboratory. The synergy of their respective talents will allow the precision restorative capabilities of Wright’s Dental Laboratory to consistently provide leading-edge technologies and a high index of progressive services to the profession in the greater LochJaw area.

As an advocate of continuing dental education, Mr. Wright’s commitment to continuing education is illustrated by his involvement with metal-free restorations. Charles has successfully completed training in such state of the art techniques as Product E and Product E model 2 and Brand B model 2. He has also completed training for all the premier implant systems including Brand J, Brand K, Product L, Product M, Brand N, and Brand O.

Among his accomplishments, Charles has held the posts of vice president, secretary and treasurer of the Oregon State Dental Laboratory Association. Additionally, he is a member of the National Association of Dental Laboratories (NADL), the State Dental Laboratory Association and the American Academy of Cosmetic Dentistry (AACD).

David Wright attended State University and is a certified dental technician. He has spent over ten years working with some of the region’s most respected practitioners. David is committed to continuing education and has successfully completed Corporation X’s Advanced Crown & Bridge Dental Studies. He has also successfully completed training in all the premier implant systems including Brand J, Brand K, Product L, Product M, Brand N and Brand O.

David entered the dental laboratory industry in 1991. He began his training under the tutelage of his father with various phases of fixed and removable techniques. Over the years, David completed his training to become fully proficient in the design and fabrication of precision attachment restorations, implants and full mouth rehabilitation cases.

Start-up Summary

The start-up cost of Wright’s Dental Laboratory will consist primarily of equipment. Charles and David will each invest personal funds and also secure a long-term loan.

Dental laboratories business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $300
Brochures $1,000
Insurance $2,000
Rent $2,000
Lab Setup $30,000
Office Setup $20,000
Expensed Equipment $20,000
Total Start-up Expenses $76,300
Start-up Assets
Cash Required $71,700
Start-up Inventory $10,000
Other Current Assets $12,000
Long-term Assets $80,000
Total Assets $173,700
Total Requirements $250,000

Company Ownership

Wright’s Dental Laboratory, located in a custom designed, 8,000 square foot facility using the latest, state-of-the-art restoration production systems and computerized case tracking, is owned by Charles and David Wright. The company will operate as a general partnership with both Charles and David performing management functions.

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Products

Wright’s Dental Laboratory offers the following products:

CROWN AND BRIDGE
Ceramics Brand A Brand B
Porcelain to metal Brand A inlay/onlay Brand B inlay
Porcelain veneers Brand A bond to metal Brand B model 2
Product C
Product D
Product E
Product F
Product F model 2
REMOVABLES
Dentures & Partials Splints/Stents Orthodontics
Full dentures Brand G
Partial dentures Hard splint (night guard)
Night guards Implant stent
Relines Sports guard
Laser welded repairs Surgical template
Soft liners Bleaching fluoride trays
Brand H
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Market Analysis Summary

The LochJaw tri-county area has over 300 dentists. Next to salaries and benefits for associates, assistants and hygienists, dental laboratory fees are a dentist’s greatest expense.

Currently, there are seven dental labs in LochJaw. Of the seven, only four are full service. Most importantly, a new lab has not opened in the LochJaw area in the past six years. Over the past six years, the area’s population has grown tremendously. The current labs have not invested in the newest technology. Wright’s Dental Laboratory will set a new standard for products and services.

No where is this more important than in the dental care for children and seniors. The new materials and techniques creates more options for dentists to serve their young and senior patients. Wright’s Dental Laboratory is investing heavily in these new techniques and materials.

Market Segmentation

Wright’s Dental Laboratory will focus on dental professionals who work in the following three areas:

  • Dental services for seniors;
  • Dental services for children;
  • General dental services.
Dental laboratories business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Dental Services for Children 10% 60 66 73 80 88 10.05%
Dental Services for Seniors 15% 40 46 53 61 70 15.02%
General Dental Services 13% 200 226 255 288 325 12.91%
Total 12.64% 300 338 381 429 483 12.64%

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Strategy and Implementation Summary

Wright’s Dental Laboratory will aggressively pursue dental professionals in the LochJaw area by offering discounted services to encourage them to try the new lab. Charles Wright will manage the marketing campaign to promote the business. He has extensive contacts in the dental community that will be critical to the building of the business.

Sales Strategy

The sales strategy will focus on offering dental professionals the new techniques and equipment that will assist them in serving their speciality populations (i.e., children and seniors).

Sales Forecast

For the first month there will be no sales, as the company will be establishing its operations. We anticipate that sales will grow quickly during the second and third month of operation.

The following is the sales forecast for three years.

Dental laboratories business plan, strategy and implementation summary chart image

Dental laboratories business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Dental Products $615,000 $750,000 $880,000
Other $0 $0 $0
Total Sales $615,000 $750,000 $880,000
Direct Cost of Sales Year 1 Year 2 Year 3
Dental Products $221,000 $269,250 $315,920
Other $0 $0 $0
Subtotal Direct Cost of Sales $221,000 $269,250 $315,920

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Management Summary

The management team for Wright’s Dental Laboratory will be Charles and David Wright. Charles will be responsible for marketing, sales, customer relations. David will be responsible for managing the dental lab operation.

Personnel Plan

The personnel plan for Wright’s Dental Laboratory is as follows:

  • Marketing/sales manager
  • Lab manager
  • Lab techs (4)
  • Customer service (1)

Part way through the second year of operation it is estimated that the Lab will have to hire an additional customer service operator.

Personnel Plan
Year 1 Year 2 Year 3
Marketing/Sales Mgr $48,000 $50,000 $52,000
Lab Mgr $48,000 $50,000 $52,000
4 Lab Techs $144,000 $152,000 $160,000
Customer Service $24,000 $38,000 $60,000
Total People 7 7 7
Total Payroll $264,000 $290,000 $324,000

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Financial Plan

The following is the financial plan for Wright’s Dental Laboratory.

Start-up Funding

Each of the two Wright’s, David and Charles, will invest in the venture. An additional long-term loan will be secured from the SBA, or local lenders, with an interest rate not more that 10%.

Start-up Funding
Start-up Expenses to Fund $76,300
Start-up Assets to Fund $173,700
Total Funding Required $250,000
Assets
Non-cash Assets from Start-up $102,000
Cash Requirements from Start-up $71,700
Additional Cash Raised $0
Cash Balance on Starting Date $71,700
Total Assets $173,700
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $100,000
Capital
Planned Investment
Charles $75,000
David $75,000
Additional Investment Requirement $0
Total Planned Investment $150,000
Loss at Start-up (Start-up Expenses) ($76,300)
Total Capital $73,700
Total Capital and Liabilities $173,700
Total Funding $250,000

Break-even Analysis

The following table and chart display the monthly break-even point.

Dental laboratories business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $49,013
Assumptions:
Average Percent Variable Cost 36%
Estimated Monthly Fixed Cost $31,400

Projected Profit and Loss

The following table and charts will highlight projected profit and loss for the next three years.

Dental laboratories business plan, financial plan chart image

Dental laboratories business plan, financial plan chart image

Dental laboratories business plan, financial plan chart image

Dental laboratories business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $615,000 $750,000 $880,000
Direct Cost of Sales $221,000 $269,250 $315,920
Other Production Expenses $0 $0 $0
Total Cost of Sales $221,000 $269,250 $315,920
Gross Margin $394,000 $480,750 $564,080
Gross Margin % 64.07% 64.10% 64.10%
Expenses
Payroll $264,000 $290,000 $324,000
Sales and Marketing and Other Expenses $24,000 $30,000 $35,000
Depreciation $12,000 $12,000 $12,000
Leased Equipment $0 $0 $0
Utilities $6,000 $6,000 $6,000
Insurance $7,200 $7,200 $7,200
Rent $24,000 $24,000 $24,000
Payroll Taxes $39,600 $43,500 $48,600
Other $0 $0 $0
Total Operating Expenses $376,800 $412,700 $456,800
Profit Before Interest and Taxes $17,200 $68,050 $107,280
EBITDA $29,200 $80,050 $119,280
Interest Expense $12,463 $12,520 $11,777
Taxes Incurred $1,421 $16,659 $28,651
Net Profit $3,316 $38,871 $66,852
Net Profit/Sales 0.54% 5.18% 7.60%

Projected Cash Flow

The following table and chart highlight the projected cash flow for three years. It will be necessary for each Wright brother to loan the company additional funds mid-year.

Dental laboratories business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $153,750 $187,500 $220,000
Cash from Receivables $343,250 $536,598 $635,057
Subtotal Cash from Operations $497,000 $724,098 $855,057
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $40,000 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $537,000 $724,098 $855,057
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $264,000 $290,000 $324,000
Bill Payments $314,168 $418,284 $475,335
Subtotal Spent on Operations $578,168 $708,284 $799,335
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $9,864 $9,864 $5,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $588,032 $718,148 $804,335
Net Cash Flow ($51,032) $5,950 $50,722
Cash Balance $20,668 $26,618 $77,340

Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $20,668 $26,618 $77,340
Accounts Receivable $118,000 $143,902 $168,846
Inventory $30,800 $31,307 $35,377
Other Current Assets $12,000 $12,000 $12,000
Total Current Assets $181,468 $213,827 $293,562
Long-term Assets
Long-term Assets $80,000 $80,000 $80,000
Accumulated Depreciation $12,000 $24,000 $36,000
Total Long-term Assets $68,000 $56,000 $44,000
Total Assets $249,468 $269,827 $337,562
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $42,317 $33,669 $39,552
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $42,317 $33,669 $39,552
Long-term Liabilities $130,136 $120,272 $115,272
Total Liabilities $172,453 $153,941 $154,824
Paid-in Capital $150,000 $150,000 $150,000
Retained Earnings ($76,300) ($72,984) ($34,114)
Earnings $3,316 $38,871 $66,852
Total Capital $77,016 $115,886 $182,738
Total Liabilities and Capital $249,468 $269,827 $337,562
Net Worth $77,016 $115,886 $182,738

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8072, Dental Laboratories, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 21.95% 17.33% 6.60%
Percent of Total Assets
Accounts Receivable 47.30% 53.33% 50.02% 15.10%
Inventory 12.35% 11.60% 10.48% 4.50%
Other Current Assets 4.81% 4.45% 3.55% 56.00%
Total Current Assets 72.74% 79.25% 86.97% 75.60%
Long-term Assets 27.26% 20.75% 13.03% 24.40%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 16.96% 12.48% 11.72% 34.20%
Long-term Liabilities 52.17% 44.57% 34.15% 18.20%
Total Liabilities 69.13% 57.05% 45.87% 52.40%
Net Worth 30.87% 42.95% 54.13% 47.60%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 64.07% 64.10% 64.10% 0.00%
Selling, General & Administrative Expenses 63.37% 58.73% 56.34% 70.40%
Advertising Expenses 3.90% 4.00% 3.98% 0.20%
Profit Before Interest and Taxes 2.80% 9.07% 12.19% 10.10%
Main Ratios
Current 4.29 6.35 7.42 1.81
Quick 3.56 5.42 6.53 1.25
Total Debt to Total Assets 69.13% 57.05% 45.87% 52.40%
Pre-tax Return on Net Worth 6.15% 47.92% 52.26% 18.10%
Pre-tax Return on Assets 1.90% 20.58% 28.29% 38.00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 0.54% 5.18% 7.60% n.a
Return on Equity 4.31% 33.54% 36.58% n.a
Activity Ratios
Accounts Receivable Turnover 3.91 3.91 3.91 n.a
Collection Days 56 85 86 n.a
Inventory Turnover 10.48 8.67 9.48 n.a
Accounts Payable Turnover 8.42 12.17 12.17 n.a
Payment Days 28 34 28 n.a
Total Asset Turnover 2.47 2.78 2.61 n.a
Debt Ratios
Debt to Net Worth 2.24 1.33 0.85 n.a
Current Liab. to Liab. 0.25 0.22 0.26 n.a
Liquidity Ratios
Net Working Capital $139,152 $180,158 $254,010 n.a
Interest Coverage 1.38 5.44 9.11 n.a
Additional Ratios
Assets to Sales 0.41 0.36 0.38 n.a
Current Debt/Total Assets 17% 12% 12% n.a
Acid Test 0.77 1.15 2.26 n.a
Sales/Net Worth 7.99 6.47 4.82 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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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
Dental Products 0% $0 $30,000 $30,000 $40,000 $40,000 $50,000 $60,000 $65,000 $70,000 $70,000 $80,000 $80,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $30,000 $30,000 $40,000 $40,000 $50,000 $60,000 $65,000 $70,000 $70,000 $80,000 $80,000
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
Dental Products $0 $12,000 $12,000 $15,000 $15,000 $18,000 $21,000 $22,000 $25,000 $25,000 $28,000 $28,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $12,000 $12,000 $15,000 $15,000 $18,000 $21,000 $22,000 $25,000 $25,000 $28,000 $28,000
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
Marketing/Sales Mgr 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Lab Mgr 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
4 Lab Techs 0% $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Customer Service 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Total People 7 7 7 7 7 7 7 7 7 7 7 7
Total Payroll $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000

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% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
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 $30,000 $30,000 $40,000 $40,000 $50,000 $60,000 $65,000 $70,000 $70,000 $80,000 $80,000
Direct Cost of Sales $0 $12,000 $12,000 $15,000 $15,000 $18,000 $21,000 $22,000 $25,000 $25,000 $28,000 $28,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $12,000 $12,000 $15,000 $15,000 $18,000 $21,000 $22,000 $25,000 $25,000 $28,000 $28,000
Gross Margin $0 $18,000 $18,000 $25,000 $25,000 $32,000 $39,000 $43,000 $45,000 $45,000 $52,000 $52,000
Gross Margin % 0.00% 60.00% 60.00% 62.50% 62.50% 64.00% 65.00% 66.15% 64.29% 64.29% 65.00% 65.00%
Expenses
Payroll $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000
Sales and Marketing and Other Expenses $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Depreciation $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Taxes 15% $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400 $31,400
Profit Before Interest and Taxes ($31,400) ($13,400) ($13,400) ($6,400) ($6,400) $600 $7,600 $11,600 $13,600 $13,600 $20,600 $20,600
EBITDA ($30,400) ($12,400) ($12,400) ($5,400) ($5,400) $1,600 $8,600 $12,600 $14,600 $14,600 $21,600 $21,600
Interest Expense $833 $833 $833 $1,000 $1,156 $1,146 $1,136 $1,126 $1,115 $1,105 $1,095 $1,084
Taxes Incurred ($9,670) ($4,270) ($4,270) ($2,220) ($2,267) ($164) $1,939 $3,142 $3,745 $3,748 $5,852 $5,855
Net Profit ($22,563) ($9,963) ($9,963) ($5,180) ($5,289) ($382) $4,525 $7,332 $8,739 $8,746 $13,654 $13,661
Net Profit/Sales 0.00% -33.21% -33.21% -12.95% -13.22% -0.76% 7.54% 11.28% 12.48% 12.49% 17.07% 17.08%

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 $7,500 $7,500 $10,000 $10,000 $12,500 $15,000 $16,250 $17,500 $17,500 $20,000 $20,000
Cash from Receivables $0 $0 $750 $22,500 $22,750 $30,000 $30,250 $37,750 $45,125 $48,875 $52,500 $52,750
Subtotal Cash from Operations $0 $7,500 $8,250 $32,500 $32,750 $42,500 $45,250 $54,000 $62,625 $66,375 $72,500 $72,750
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 $20,000 $20,000 $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 $0 $7,500 $8,250 $52,500 $52,750 $42,500 $45,250 $54,000 $62,625 $66,375 $72,500 $72,750
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 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000
Bill Payments ($437) $250 $20,057 $17,247 $25,374 $22,569 $30,852 $35,775 $35,961 $41,450 $38,533 $46,536
Subtotal Spent on Operations $21,563 $22,250 $42,057 $39,247 $47,374 $44,569 $52,852 $57,775 $57,961 $63,450 $60,533 $68,536
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 $1,233 $1,233 $1,233 $1,233 $1,233 $1,233 $1,233 $1,233
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 $21,563 $22,250 $42,057 $39,247 $48,607 $45,802 $54,085 $59,008 $59,194 $64,683 $61,766 $69,769
Net Cash Flow ($21,563) ($14,750) ($33,807) $13,253 $4,143 ($3,302) ($8,835) ($5,008) $3,431 $1,692 $10,734 $2,981
Cash Balance $50,137 $35,387 $1,580 $14,833 $18,976 $15,674 $6,839 $1,831 $5,262 $6,954 $17,687 $20,668
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 $71,700 $50,137 $35,387 $1,580 $14,833 $18,976 $15,674 $6,839 $1,831 $5,262 $6,954 $17,687 $20,668
Accounts Receivable $0 $0 $22,500 $44,250 $51,750 $59,000 $66,500 $81,250 $92,250 $99,625 $103,250 $110,750 $118,000
Inventory $10,000 $10,000 $13,200 $13,200 $16,500 $16,500 $19,800 $23,100 $24,200 $27,500 $27,500 $30,800 $30,800
Other Current Assets $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Total Current Assets $93,700 $72,137 $83,087 $71,030 $95,083 $106,476 $113,974 $123,189 $130,281 $144,387 $149,704 $171,237 $181,468
Long-term Assets
Long-term Assets $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000
Accumulated Depreciation $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000
Total Long-term Assets $80,000 $79,000 $78,000 $77,000 $76,000 $75,000 $74,000 $73,000 $72,000 $71,000 $70,000 $69,000 $68,000
Total Assets $173,700 $151,137 $161,087 $148,030 $171,083 $181,476 $187,974 $196,189 $202,281 $215,387 $219,704 $240,237 $249,468
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 $0 $19,913 $16,820 $25,053 $21,969 $30,082 $35,005 $34,998 $40,597 $37,401 $45,514 $42,317
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 $0 $19,913 $16,820 $25,053 $21,969 $30,082 $35,005 $34,998 $40,597 $37,401 $45,514 $42,317
Long-term Liabilities $100,000 $100,000 $100,000 $100,000 $120,000 $138,767 $137,534 $136,301 $135,068 $133,835 $132,602 $131,369 $130,136
Total Liabilities $100,000 $100,000 $119,913 $116,820 $145,053 $160,736 $167,616 $171,306 $170,066 $174,432 $170,003 $176,883 $172,453
Paid-in Capital $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
Retained Earnings ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300) ($76,300)
Earnings $0 ($22,563) ($32,527) ($42,490) ($47,670) ($52,959) ($53,342) ($48,817) ($41,485) ($32,745) ($23,999) ($10,345) $3,316
Total Capital $73,700 $51,137 $41,173 $31,210 $26,030 $20,741 $20,358 $24,883 $32,215 $40,955 $49,701 $63,355 $77,016
Total Liabilities and Capital $173,700 $151,137 $161,087 $148,030 $171,083 $181,476 $187,974 $196,189 $202,281 $215,387 $219,704 $240,237 $249,468
Net Worth $73,700 $51,137 $41,173 $31,210 $26,030 $20,741 $20,358 $24,883 $32,215 $40,955 $49,701 $63,355 $77,016

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