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Security First Shredding

Executive Summary

Theft, vandalism, and industrial espionage are becoming ever increasing security problems. There are too many horror stories resulting from confidential information getting into the wrong hands. Today’s information explosion can be devastating to a business. With the increased use of office copiers and computers, staggering amounts of sensitive information is being generated and carelessly discarded.

Security First Shredding is a professional paper shredding company, providing the most secure, efficient, simple and cost effective plan available for destroying a company’s confidential information. Security First Shredding provides complete on-site and off-site document destruction services. Security First Shredding will service companies in the Madison area. The company has experience in product destruction as well as the shredding of microfilm, microfiche, credit cards, computer tapes and other forms of media storage.

A certificate of destruction will be provided with each invoice. We also offer recycling programs for non-confidential documents.

Janet Wilson, co-owner of Security First Shredding, has ten years of experience in the field of document destruction.  She has worked for both Shredd-All and Capital Shredding in New York, before moving to the Madison area last year.

Security First Shredding will have two state-of-the-art disposal trucks that can shred documents at the business site or transport it to a recycling center for disposal.

Document shredding business plan, executive summary chart image

1.1 Mission

The mission of Security First Shredding is to provide a cost-effective document disposal service that protects our customers demand for security.

1.2 Objectives

Security First Shredding’s objectives are as follows:

  • Achieve sales goal during first year of operation.
  • Achieve a customer base of 100 companies.
  • Increase sales by 15% during the second year of operation.
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Company Summary

Security First Shredding is a professional paper shredding company, providing the most secure, efficient, simple and cost effective plan available for destroying a company’s confidential information. Security First Shredding provides complete on-site and off-site document destruction services.  The company will be organized as a limited partnership.

Security First Shredding has an 8,000 square foot facility located in the Westside Industrial Park.  The park anchors the industrial section of the city and is within easy access of 80% of the potential customers.

2.1 Start-up Summary

The start-up expenses for the Security First Shredding is focused primarily on disposal equipment, disposal bins, and disposal trucks.  Janet Wilson and the silent partner will each make substantial investments in the company.  In addition, Wilson will secure a long-term loan business loan.

Document shredding business plan, company summary chart image

Start-up Funding
Start-up Expenses to Fund $249,600
Start-up Assets to Fund $80,400
Total Funding Required $330,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $80,400
Additional Cash Raised $0
Cash Balance on Starting Date $80,400
Total Assets $80,400
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
Janet Wilson $80,000
Silent Partner $150,000
Additional Investment Requirement $0
Total Planned Investment $230,000
Loss at Start-up (Start-up Expenses) ($249,600)
Total Capital ($19,600)
Total Capital and Liabilities $80,400
Total Funding $330,000
Start-up
Requirements
Start-up Expenses
Legal $2,000
Stationery etc. $600
Brochures $4,000
Insurance $1,000
Rent $2,000
Disposal Trucks $110,000
Disposal Bins $50,000
Disposal Equipment $80,000
Total Start-up Expenses $249,600
Start-up Assets
Cash Required $80,400
Other Current Assets $0
Long-term Assets $0
Total Assets $80,400
Total Requirements $330,000

2.2 Company Ownership

Security First Shredding is owned by Janet Wilson and a silent partner.

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Services

Security First Shredding offers the following services:

Security
On-site document destruction service is the safest, most secure, and convenient means of disposing of your sensitive documents. Our bonded uniformed employees will take a customer’s classified documents from the security bins that we provide for the office directly to the mobile shredding unit where the materials will be destroyed.

Efficiency
The high-speed shredders mounted on our trucks are 40 times faster than most office shredders, reducing a customer’s cost of shredding by over 25%.

On-site destruction services
Security First Shredding will provide security bins to be placed throughout the office area. These bins have a built in lock to ensure documents cannot be removed without a key. The material will be destroyed on-site and the shredded paper will then be taken to our facility where it will be recycled.

Off-site destruction services
Security First Shredding also offers off-site document destruction. We will still supply the customer with security bins but the materials will be brought back to our facility to be shredded. In addition to the security consoles for the office, we offer 65-gallon schafer containers. These schaefer containers are used for high volume areas. Customers with large volumes of paper find this to be the most economical way to handle classified materials.

A certificate of destruction will be provided with each invoice.

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Market Analysis Summary

Theft, vandalism, and industrial espionage are becoming ever increasing security problems. There are too many horror stories resulting from confidential information getting into the wrong hands. Today’s information explosion can be devastating to a business. With the increased use of office copiers and computers, staggering amounts of sensitive information is being generated and carelessly discarded.

Outdated or inactive company files can also become damaging once they have reached their legal limit of retention. Shredding this information protects a company against potential lawsuits.

The supreme court has ruled that information in the trash is “fair game” to anyone. Privacy laws make any company vulnerable to law suits when personal records are disclosed to outsiders–even by accident.

The 1974 federal privacy act was established to ensure that government agencies protect the privacy of individuals and businesses with regard to information held by them and to hold these agencies liable if any information is released without authorization.

It is estimated that corporate espionage costs U.S. businesses over $7 billion in losses yearly. It’s believed that one in four American adults have been defrauded in various identify theft schemes.

A company’s trash is a great source of a financial and personal catastrophe. It’s an unimaginable nightmare for most people, and a nefarious windfall for the growing ranks of corporate scavengers and identity thieves currently farming america’s trash.

Large corporations have internal disposal systems to protect themselves, but small to second tier companies typically have poor or inefficient systems in place.  Madison has 3,000 businesses and companies that have potential need for a document disposal service.

4.1 Market Segmentation

Security First Shredding will focus on the following target customers:

  • Small Businesses and Companies: These companies have 10 to 25 employees. They represent a significant market since internal document disposal is not cost-effective or efficient. Outsourcing disposal services is a excellent solution that will reduce the business disposal costs by 25%.
  • Second Tier Companies: These companies have over 100+ employees. Record disposal is quickly becoming a important concern and is usually poorly organized and inefficient.  Outsourcing disposal services can cap costs and improve the efficiency of the process.
Document shredding business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Small Companies 4% 2,300 2,392 2,488 2,588 2,692 4.01%
Second Tier Companies 1% 700 707 714 721 728 0.99%
Total 3.33% 3,000 3,099 3,202 3,309 3,420 3.33%

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Strategy and Implementation Summary

Security First Shredding will market an annual service contract at a 20% discount to small companies and a 15% discount to medium-size companies. We will offer a free on-site survey of the company’s facility to determine the company’s exact needs.

5.1 Competitive Edge

Security First Shredding’s competitive edge is our quick response to a customer’s request for services. Security First Shredding will respond within 24 hours of a request by a company for record shredding services.  Our disposal trucks shred documents twice as fast as our competitors and has a greater load capacity.

Most importantly, Janet Wilson’s leadership is a tremendous competitive advantage.  She was the top salesperson for both Shredd-All and Capital Shredding when she was with those companies.  Her strength is her ability to use the assessment as a sales tool to demonstrate savings and promote the company’s services.

5.2 Sales Strategy

Security First Shredding’s sales strategy is to offer a free on-site disposal survey of the company’s facility.  Janet Wilson, who performed such surveys with both Shredd-All and Capital Shredding in New York, will supervise the assessment.  We anticipate that first month sales will be flat.  Sales will pick up quickly in the second month.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Document shredding business plan, strategy and implementation summary chart image

Document shredding business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
On-site Disposal $220,000 $230,000 $290,000
Off-site Disposal $232,000 $230,000 $290,000
Other $0 $0 $0
Total Sales $452,000 $460,000 $580,000
Direct Cost of Sales Year 1 Year 2 Year 3
On-site Disposal $17,200 $23,000 $29,000
Off-site Disposal $17,400 $23,000 $29,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $34,600 $46,000 $58,000

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Management Summary

Security First Shredding’s management system will be as follows:

  • Janet Wilson will be responsible for day-to-day operation of the facility.  She will also manage the sales team.
  • An off-site facility team will manage disposal of records at the Security First Shredding’s facility.
  • An on-site team will manage disposal at a customer site.

6.1 Personnel Plan

Security First Shredding’s personnel are as follows:

  • Janet Wilson
  • Off-site disposal manager
  • Facility staff (4)
  • On-site staff/drivers (4)
  • Customer service staff (1)
  • Sales staff (1)
Personnel Plan
Year 1 Year 2 Year 3
Janet Wilson $36,000 $36,000 $38,000
Off-site Facility Manager $30,000 $32,000 $34,000
Off-site Facility Staff $78,000 $86,000 $94,000
On-site Staff/Drivers $78,000 $86,000 $94,000
Customer Service Staff $19,200 $21,000 $23,000
Sales Staff $24,000 $26,000 $28,000
Other $0 $0 $0
Total People 12 12 12
Total Payroll $265,200 $287,000 $311,000

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Financial Plan

The following is the financial plan for Security First Shredding.

7.1 Break-even Analysis

The monthly break-even point is shown in the table and chart below.

Document shredding business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $31,528
Assumptions:
Average Percent Variable Cost 8%
Estimated Monthly Fixed Cost $29,115

7.2 Projected Profit and Loss

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

Document shredding business plan, financial plan chart image

Document shredding business plan, financial plan chart image

Document shredding business plan, financial plan chart image

Document shredding business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $452,000 $460,000 $580,000
Direct Cost of Sales $34,600 $46,000 $58,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $34,600 $46,000 $58,000
Gross Margin $417,400 $414,000 $522,000
Gross Margin % 92.35% 90.00% 90.00%
Expenses
Payroll $265,200 $287,000 $311,000
Sales and Marketing and Other Expenses $12,000 $15,000 $18,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $4,800 $0 $0
Insurance $3,600 $0 $0
Rent $24,000 $0 $0
Payroll Taxes $39,780 $43,050 $46,650
Other $0 $0 $0
Total Operating Expenses $349,380 $345,050 $375,650
Profit Before Interest and Taxes $68,020 $68,950 $146,350
EBITDA $68,020 $68,950 $146,350
Interest Expense $9,350 $8,200 $7,000
Taxes Incurred $17,601 $18,225 $41,805
Net Profit $41,069 $42,525 $97,545
Net Profit/Sales 9.09% 9.24% 16.82%

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

Document shredding business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $113,000 $115,000 $145,000
Cash from Receivables $242,375 $343,290 $409,347
Subtotal Cash from Operations $355,375 $458,290 $554,347
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $10,000 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $10,000 $0 $0
Subtotal Cash Received $375,375 $458,290 $554,347
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $265,200 $287,000 $311,000
Bill Payments $122,728 $142,754 $168,087
Subtotal Spent on Operations $387,928 $429,754 $479,087
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 $12,000 $12,000 $12,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $399,928 $441,754 $491,087
Net Cash Flow ($24,553) $16,536 $63,261
Cash Balance $55,847 $72,383 $135,643

7.4 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 $55,847 $72,383 $135,643
Accounts Receivable $96,625 $98,335 $123,988
Other Current Assets $0 $0 $0
Total Current Assets $152,472 $170,718 $259,631
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $152,472 $170,718 $259,631
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $23,003 $10,724 $14,092
Current Borrowing $0 $0 $0
Other Current Liabilities $10,000 $10,000 $10,000
Subtotal Current Liabilities $33,003 $20,724 $24,092
Long-term Liabilities $88,000 $76,000 $64,000
Total Liabilities $121,003 $96,724 $88,092
Paid-in Capital $240,000 $240,000 $240,000
Retained Earnings ($249,600) ($208,531) ($166,006)
Earnings $41,069 $42,525 $97,545
Total Capital $31,469 $73,994 $171,539
Total Liabilities and Capital $152,472 $170,718 $259,631
Net Worth $31,469 $73,994 $171,539

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7389, Business Services, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 1.77% 26.09% 8.20%
Percent of Total Assets
Accounts Receivable 63.37% 57.60% 47.76% 26.30%
Other Current Assets 0.00% 0.00% 0.00% 44.20%
Total Current Assets 100.00% 100.00% 100.00% 74.30%
Long-term Assets 0.00% 0.00% 0.00% 25.70%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 21.65% 12.14% 9.28% 49.00%
Long-term Liabilities 57.72% 44.52% 24.65% 13.80%
Total Liabilities 79.36% 56.66% 33.93% 62.80%
Net Worth 20.64% 43.34% 66.07% 37.20%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 92.35% 90.00% 90.00% 0.00%
Selling, General & Administrative Expenses 83.26% 80.76% 73.18% 81.40%
Advertising Expenses 2.65% 3.26% 3.10% 1.70%
Profit Before Interest and Taxes 15.05% 14.99% 25.23% 2.10%
Main Ratios
Current 4.62 8.24 10.78 1.49
Quick 4.62 8.24 10.78 1.17
Total Debt to Total Assets 79.36% 56.66% 33.93% 62.80%
Pre-tax Return on Net Worth 186.44% 82.10% 81.24% 4.20%
Pre-tax Return on Assets 38.48% 35.59% 53.67% 11.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 9.09% 9.24% 16.82% n.a
Return on Equity 130.51% 57.47% 56.86% n.a
Activity Ratios
Accounts Receivable Turnover 3.51 3.51 3.51 n.a
Collection Days 56 103 93 n.a
Accounts Payable Turnover 6.34 12.17 12.17 n.a
Payment Days 30 47 26 n.a
Total Asset Turnover 2.96 2.69 2.23 n.a
Debt Ratios
Debt to Net Worth 3.85 1.31 0.51 n.a
Current Liab. to Liab. 0.27 0.21 0.27 n.a
Liquidity Ratios
Net Working Capital $119,469 $149,994 $235,539 n.a
Interest Coverage 7.27 8.41 20.91 n.a
Additional Ratios
Assets to Sales 0.34 0.37 0.45 n.a
Current Debt/Total Assets 22% 12% 9% n.a
Acid Test 1.69 3.49 5.63 n.a
Sales/Net Worth 14.36 6.22 3.38 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
On-site Disposal 0% $0 $6,000 $8,000 $10,000 $14,000 $19,000 $20,000 $23,000 $26,000 $29,000 $32,000 $33,000
Off-site Disposal 0% $0 $5,000 $6,000 $10,000 $17,000 $21,000 $23,000 $25,000 $28,000 $31,000 $33,000 $33,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $11,000 $14,000 $20,000 $31,000 $40,000 $43,000 $48,000 $54,000 $60,000 $65,000 $66,000
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
On-site Disposal $0 $400 $500 $600 $1,000 $1,500 $1,600 $1,600 $2,000 $2,400 $2,600 $3,000
Off-site Disposal $0 $300 $400 $600 $1,300 $1,600 $1,600 $1,600 $2,200 $2,400 $2,600 $2,800
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $700 $900 $1,200 $2,300 $3,100 $3,200 $3,200 $4,200 $4,800 $5,200 $5,800
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
Janet Wilson 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Off-site Facility Manager 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Off-site Facility Staff 0% $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500
On-site Staff/Drivers 0% $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500
Customer Service Staff 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600
Sales Staff 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
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 12 12 12 12 12 12 12 12 12 12 12 12
Total Payroll $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100

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 $11,000 $14,000 $20,000 $31,000 $40,000 $43,000 $48,000 $54,000 $60,000 $65,000 $66,000
Direct Cost of Sales $0 $700 $900 $1,200 $2,300 $3,100 $3,200 $3,200 $4,200 $4,800 $5,200 $5,800
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $700 $900 $1,200 $2,300 $3,100 $3,200 $3,200 $4,200 $4,800 $5,200 $5,800
Gross Margin $0 $10,300 $13,100 $18,800 $28,700 $36,900 $39,800 $44,800 $49,800 $55,200 $59,800 $60,200
Gross Margin % 0.00% 93.64% 93.57% 94.00% 92.58% 92.25% 92.56% 93.33% 92.22% 92.00% 92.00% 91.21%
Expenses
Payroll $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100
Sales and Marketing and Other Expenses $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Insurance $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
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% $3,315 $3,315 $3,315 $3,315 $3,315 $3,315 $3,315 $3,315 $3,315 $3,315 $3,315 $3,315
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $29,115 $29,115 $29,115 $29,115 $29,115 $29,115 $29,115 $29,115 $29,115 $29,115 $29,115 $29,115
Profit Before Interest and Taxes ($29,115) ($18,815) ($16,015) ($10,315) ($415) $7,785 $10,685 $15,685 $20,685 $26,085 $30,685 $31,085
EBITDA ($29,115) ($18,815) ($16,015) ($10,315) ($415) $7,785 $10,685 $15,685 $20,685 $26,085 $30,685 $31,085
Interest Expense $825 $817 $808 $800 $792 $783 $775 $767 $758 $750 $742 $733
Taxes Incurred ($8,982) ($5,890) ($5,047) ($3,335) ($362) $2,101 $2,973 $4,476 $5,978 $7,601 $8,983 $9,106
Net Profit ($20,958) ($13,742) ($11,776) ($7,781) ($845) $4,901 $6,937 $10,443 $13,949 $17,735 $20,960 $21,246
Net Profit/Sales 0.00% -124.93% -84.12% -38.90% -2.72% 12.25% 16.13% 21.76% 25.83% 29.56% 32.25% 32.19%

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 $2,750 $3,500 $5,000 $7,750 $10,000 $10,750 $12,000 $13,500 $15,000 $16,250 $16,500
Cash from Receivables $0 $0 $275 $8,325 $10,650 $15,275 $23,475 $30,075 $32,375 $36,150 $40,650 $45,125
Subtotal Cash from Operations $0 $2,750 $3,775 $13,325 $18,400 $25,275 $34,225 $42,075 $45,875 $51,150 $56,900 $61,625
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 $2,000 $2,000 $2,000 $2,000 $2,000 $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 $10,000 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $2,750 $3,775 $15,325 $30,400 $27,275 $36,225 $44,075 $45,875 $51,150 $56,900 $61,625
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 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100 $22,100
Bill Payments ($1,142) ($1,016) $2,677 $3,743 $5,816 $9,853 $13,031 $14,013 $15,540 $18,025 $20,225 $21,963
Subtotal Spent on Operations $20,958 $21,084 $24,777 $25,843 $27,916 $31,953 $35,131 $36,113 $37,640 $40,125 $42,325 $44,063
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 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
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 $21,958 $22,084 $25,777 $26,843 $28,916 $32,953 $36,131 $37,113 $38,640 $41,125 $43,325 $45,063
Net Cash Flow ($21,958) ($19,334) ($22,002) ($11,518) $1,484 ($5,678) $94 $6,962 $7,235 $10,025 $13,575 $16,562
Cash Balance $58,442 $39,108 $17,106 $5,588 $7,072 $1,394 $1,488 $8,450 $15,685 $25,710 $39,285 $55,847
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 $80,400 $58,442 $39,108 $17,106 $5,588 $7,072 $1,394 $1,488 $8,450 $15,685 $25,710 $39,285 $55,847
Accounts Receivable $0 $0 $8,250 $18,475 $25,150 $37,750 $52,475 $61,250 $67,175 $75,300 $84,150 $92,250 $96,625
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $80,400 $58,442 $47,358 $35,581 $30,738 $44,822 $53,869 $62,738 $75,625 $90,985 $109,860 $131,535 $152,472
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 $80,400 $58,442 $47,358 $35,581 $30,738 $44,822 $53,869 $62,738 $75,625 $90,985 $109,860 $131,535 $152,472
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 $3,658 $4,658 $6,595 $10,524 $13,669 $14,602 $16,046 $18,457 $20,597 $22,312 $23,003
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $10,000 $10,000 $10,000 $10,000
Subtotal Current Liabilities $0 $0 $3,658 $4,658 $8,595 $14,524 $19,669 $22,602 $26,046 $28,457 $30,597 $32,312 $33,003
Long-term Liabilities $100,000 $99,000 $98,000 $97,000 $96,000 $95,000 $94,000 $93,000 $92,000 $91,000 $90,000 $89,000 $88,000
Total Liabilities $100,000 $99,000 $101,658 $101,658 $104,595 $109,524 $113,669 $115,602 $118,046 $119,457 $120,597 $121,312 $121,003
Paid-in Capital $230,000 $230,000 $230,000 $230,000 $230,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000 $240,000
Retained Earnings ($249,600) ($249,600) ($249,600) ($249,600) ($249,600) ($249,600) ($249,600) ($249,600) ($249,600) ($249,600) ($249,600) ($249,600) ($249,600)
Earnings $0 ($20,958) ($34,700) ($46,477) ($54,257) ($55,102) ($50,201) ($43,264) ($32,821) ($18,872) ($1,137) $19,823 $41,069
Total Capital ($19,600) ($40,558) ($54,300) ($66,077) ($73,857) ($64,702) ($59,801) ($52,864) ($42,421) ($28,472) ($10,737) $10,223 $31,469
Total Liabilities and Capital $80,400 $58,442 $47,358 $35,581 $30,738 $44,822 $53,869 $62,738 $75,625 $90,985 $109,860 $131,535 $152,472
Net Worth ($19,600) ($40,558) ($54,300) ($66,077) ($73,857) ($64,702) ($59,801) ($52,864) ($42,421) ($28,472) ($10,738) $10,223 $31,469

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