Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Download for free

Free Business Planning Webinar:

AI and Your Plan Register Now

Printing icon Printing Services Broker Business Plan

Start your plan

Copriso

Executive Summary

Copriso is a total solution provider for printing related services and products such as office stationery, brochures, business forms, and marketing materials to Denver area businesses. It is a Colorado based, home business. Copriso operated under the name of ePrint, Inc. for the past five years under the sole ownership of Adam Suson. In 1983 Adam joined his family owned Sir Speedy franchise which his father had founded in 1972. From 1983 to 1996 Adam managed scheduling, procurement, press operations, employees and customer service issues for Sir Speedy. When the family chose to sell the franchise several years ago, Adam became an independent printing consultant under the name of ePrint, Inc.

The name Copriso was adopted last year to represent “Colorado Printing Solutions”. This name change was due to a Colorado name registration conflict. With the new name, it was determined that an aggressive marketing strategy should be implemented. This strategy involves direct mail and telephone solicitation. To facilitate this marketing strategy, Copriso brought on board a new business partner.

Paul Levy brings 15 years of sales and marketing experience in both computer technology and telephony. During that 15 year period, Paul demonstrated consistent performance personally, and with sales team members, in meeting and exceeding all sales goals with quotas ranging from $1-$3 million. Paul handled both individual sales as well as sales management and training.

Printing is an unavoidable business expense for most businesses. With our combined experience, and this industry’s resilience, we feel that this change in name and ownership coupled with our new marketing strategy will prove a sound business decision. Our keys to success and critical factors for the next year are, in order of importance:

  • Implementing our new marketing plan.
  • Increasing our customer base.
  • Financial control and cash flow planning

We are seeking a long-term loan to assist in our marketing strategy. Due to the seasonal nature of this industry, this loan will assist with business expenses during the first year of operation and insure that our marketing efforts are consistent.

Printing services broker business plan, executive summary chart image

1.1 Mission

Copriso is a printing solutions provider dedicated to offering a single source for all printing needs with a priority on earning and maintaining our customer’s trust. We will maintain a consistent and reasonable margin while providing customers with a fair price and exceptional service. We will also maintain a friendly, fair, and creative work environment, that respects new ideas and hard work.

1.2 Objectives

1. To generate generous annual sales by the third year of this plan.

2. To establish a tiered client hierarchy:

  • 20% long term, established customers
  • 60% customers with ongoing irregular and periodic needs
  • 20% new customers with unestablished needs.

3. To find 12 new appointments and bidding opportunities per month.

4. To establish two new long-term “quality” relationships per month.

5. To operate at 50%+ margin. This margin is arrived at through historical rates from the previous eight years of data.

6. To be a true one-stop operation by being able to accommodate all of a customer’s printing needs from consulting and design assistance to printing, binding, and distribution. Our goal is to eliminate the need for our customers to source any printing outside of our scope.

7. To promote an awareness of Copriso so as to support sales and income goals through aggressive marketing and telephone contact. This awareness will come from both marketing and word-of-mouth referrals. We will be using our existing customer base to solicit continued and enhanced business as well as requesting referral information from every customer. Client awareness of Copriso will initially be promoted through direct mailings and telephone sales. Future marketing plans are being discussed with both radio and television potentials.

8. To achieve a 30% annual growth rate. This number is arrived at using eight years of historical data and applying the new marketing plan.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Company Summary

Copriso is a privately owned and operated small business with well established relationships in the Denver Metro area. It was incorporated last year, but was conceived and begun several years ago as ePrint, Inc. Copriso was founded by Adam Suson who had 14 years experience in printing, managing and operating a Sir Speedy franchise.

Copriso offers a unique way to accomplish printing for businesses. Many companies that refer to themselves as brokers really match client and printers for a fee and their responsibility ends there. Printers try to meet the needs of their clients, but have a focus on profitability. Our company structure fills a niche while providing a classic environment of the “win/win” scenario.

We save our customers money and time in three ways:

  1. We operate for our customers as an internal resource or employee of their company without the need for ongoing salaries.
  2. We find the most efficient and effective way for our customers to accomplish each and every printing task.
  3. We do this at a rate that’s very competitive, saving the customer an average of 10% to 25% off of direct printer pricing.

On the other hand, we provide a valuable service for our printer partners by bringing them large volumes of ongoing business. Our printer partners offer us a substantial discount off of the regular costs due to this positioning, allowing our projected margin.

2.1 Start-up Summary

Our start-up costs and expenses assumptions are shown in the following tables and illustration. The start-up costs are to be financed by direct owner investment. An additional loan is being sought to ensure business operations, marketing and stability during the first three years.

Printing services broker business plan, company summary chart image

Start-up Funding
Start-up Expenses to Fund $43,000
Start-up Assets to Fund $50,000
Total Funding Required $93,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $50,000
Additional Cash Raised $0
Cash Balance on Starting Date $50,000
Total Assets $50,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $50,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $50,000
Capital
Planned Investment
Adam Suson $21,500
Paul Levy $21,500
Other $0
Additional Investment Requirement $0
Total Planned Investment $43,000
Loss at Start-up (Start-up Expenses) ($43,000)
Total Capital $0
Total Capital and Liabilities $50,000
Total Funding $93,000
Start-up
Requirements
Start-up Expenses
Legal $1,000
Stationery etc. $250
Brochures $0
Consultants $800
Insurance $0
Rent $0
Research and Development $500
Expensed Equipment $100
Working Capital $40,350
Total Start-up Expenses $43,000
Start-up Assets
Cash Required $50,000
Other Current Assets $0
Long-term Assets $0
Total Assets $50,000
Total Requirements $93,000

2.2 Company Ownership

Copriso is a privately-held Colorado S-corporation. Adam Suson, Copriso’s founder, is the President and Operations Manager. Adam will be handling the internal operations, job management, and accounting functions. Paul Levy is the Vice President and Sales Manager. Paul will be handling the marketing, sales, computer based functionality, data management and storage functions.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Products

Copriso provides custom solutions for business printing needs. We service customers that are looking for a one-stop solution for all of their printing needs. We provide them with an overall cost savings through our “value-add” strategy of job specific solution sales. Our solutions focus on the needs of the customer, the time frame for the project and the overall scope of work. With well established vendor partners, Copriso can accommodate any job size with solutions tailored to the specific need and can further reduce costs by aggregating and allocating among the various sources. Products and services include:

SERVICES:

  • Consultation
  • Printing needs analysis and recommendations
  • Inventory management and storage
  • Graphic design
  • Corporate image
  • Copy writing
  • Pickup and delivery
  • Electronic communication and file management
  • Bindery, including cutting, folding, stitching, die cutting, foil stamping embossing

PRODUCTS:

  • Letterhead
  • Envelopes
  • Business cards
  • Business forms including multi-part and carbonless
  • Brochures
  • Mailers
  • Fliers
  • Packaging
  • Catalogs
  • Coupons
  • Labels
  • Annual reports
  • Specialty items including silk screening, embroidery and advertising specialties
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Market Analysis Summary

The market for printing is worth an estimated $168 billion nationwide according to the 2001 Printing Industry of America (PIA) report and projected to grow an average of 5% per year. The 2002 print markets will mirror the growing but slowing economy. Total US print shipments should grow around 5% to approximately $171 billion. This rate of growth in print shipments is slightly below the growth in total US economic output not adjusted for inflation, reflecting the transition of the printing industry from a growth industry to a mature industry. However, this should allow plenty of opportunity for printers with an additional $8.2 billion in printing shipments. Approximately 2% of the growth in print shipments is expected to reflect price increases, leaving around 3% real growth. Copriso’s predecessor, ePrint, Inc., has been selling at a rate of approximately $160,000 per year with no sales efforts at all for the past 5 years.

4.1 Market Segmentation

The printing industry is separated into the following market segments with the following anticipated growth:

Electronic Prepress 10%
Manuals  8%
Direct Mail 10%
Marketing/Promotion 13%
Quick Printing  6%
Catalogues  5%
Packaging  6%
Coupons  4%
Inserts  7%
Labels  4%
Trade Binding  4%
Business Forms  4%
Business Communications  6%
Annual Reports  2%
Books  6%
Magazines  5%
Traditional Prepress (negative 3%)

Although Copriso handles all business printing needs, our focus and expertise will be towards the larger scale, full color promotional and marketing pieces. Our ability to source more effectively and job specifically allows us to offer a much more competitive rate for each individual circumstance. Our ideal product focus is with full color, sheet fed printing. Customers for this product include, marketing and advertising firms, manufacturing, retail, and restaurant.

4.2 Target Market Segment Strategy

There is already a sense of segment strategy in the way we define our target markets. We are choosing to compete in the small to medium size business segment which we define as 10 to 200 employees with sales ranging from $250,000 to $5 million and printing expenditures of between $5,000 and $30,000. Industries include construction, property management, healthcare, manufacturing, Colorado based retail chains, Medical, Accounting and Legal firms.

We are not adverse to doing business outside the Colorado front range, however, our marketing and sales efforts are directed within Colorado. We believe that this segment of the market would not use an advertising/marketing agency yet would need the services of a printer instead of doing their own in-house work.

Our strategy revolves around “partnering” with clients. The smaller customer is likely to produce their own printed materials and larger customers tend to use the services of an agency. Medium size companies have the need for more professionally produced printing while not having the established budget to substantiate hiring an agency. Our goal is to provide an exceptional level of service while saving our customers money.

We have acquired lists of potential clients through the services of InfoUSA, a recognized leads source. With the focus that we’ve chosen, and the area within which we’re looking, there are over 5,000 immediate targets. With excellent businesses growth in this area, we feel that there are sufficient opportunities to keep our business easily on track.

4.3 Industry Analysis

The printing industry operates in an environment where a myriad of forces work on costs, prices, product demand and supply. Paper prices, electricity costs, labor conditions, and capital costs impact the bottom line, while changes in new printing technologies, emerging advertising media, new ways of conducting business, and the strengths of the print buying industries all impact the top line. Although there has been a softening of the economy in general, the printing industry is not as discretionary as other market segments.

4.3.1 Competition and Buying Patterns

In printing, cost and service are the two key areas. Sales efforts within the industry are generally sparse. Most quick and small commercial printers rely on Yellow Pages advertising and referrals in lieu of a direct sales effort; most are not truly full service printers; most rely on name recognition. We also feel that 80% of customers are willing to try alternative sources for their printing needs because there is a general lack of quality service to support the continued patronage of existing clientele.

As a service-centric business, Copriso, will strive to maintain existing customers with high quality service while educating them in additional services and products. Printing in general is not sales-centric as it is a necessary business expense. Therefore, most printers rely on customers coming to them. By going to the customer, we can capture a lion’s share of the existing printing purchases.

Comparison of local competition is shown in the following table. 

Comparison of Local Competition
Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7
Physical Space 1,500 Sq Ft 7,500 Sq Ft 15,000 Sq Ft 8,000 Sq Ft Home Office 8,000 Sq Ft 10,000 Sq Ft
No. Presses 2 6 7 3 0 2 5
Area Served S.E. Denver S.E. Denver Metro Denver Metro Denver Metro Denver Metro Denver Metro Denver
Years in Business 24 24 19 12 10 15 38
No. of Employees 4 14 15 8 1 8 10
Avg. Yrs. / Employed 2 2 1 1 10 2 5
Products General business Business & small commercial Business & small commercial Commercial, specialty, comprehensive Small business & commercial Medium commercial Commercial & specialty
Services Printing, bindery Design, printing, bindery, consulting Design, printing, bindery, consulting Design, printing, bindery, consulting Design, printing, bindery, consulting Design, prepress, printing, bindery, Design, prepress, printing, bindery,
Strengths Nice people Speed Customer service Unusual job specialists Communications Onsite for everything Product knowledge
Weaknesses No regular client contact, old equipment Poor accuracy Large scale and specialty Employee turnover No large format, no full color Customer service Quick printing
Pickup When they can Yes Yes Yes Yes Yes Yes
Deliver When they can Yes Yes Yes Yes Yes Yes
Consult No No No Yes Yes No Yes
Warehouse Not really Yes No Yes Yes No Yes
Inventory Mgmt. No No No No No No No
Terms Yes Yes Yes Yes Yes Yes Yes

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Strategy and Implementation Summary

Our strategy is to offer an unusually high level of service while aggressively maintaining and pursuing customer relationships. Organized, regimented and sustained contact will facilitate ongoing opportunities. Our service strategy is three fold:

  1. Our business premise is one of reducing customer action. We pickup and deliver all projects and when customer involvement is needed for review and/or opinion, the meetings are at the customer site.
  2. We manage our time wisely. Each project has a realistic due date which allows Copriso to manage and produce a job while meeting and exceeding our deadlines consistently. Although we build in sufficient time for any issues that might arise, we typically offer timelines that are far shorter that the industry standard. This is possible through our regular contact with our customers and, therefore, our knowledge of their upcoming needs to eliminate the “crisis management” that is so prevalent in the quick-print industry.
  3. Each project is handled with care. We manage each step of the process to insure that the job is moving within our timeline and meeting or exceeding our expectations. We work closely with our vendor partners and reinforce our expectations along the way. We take great pride in presenting a perfect finished product to a satisfied customer.

Contact is the key to service. Marketing is designed to gain market share, new opportunities, new contacts, and eventually new customers. Sales is not only closing the order, but is customer service, knowing the customer, making sure that the customer feels like they are our most important client, and maintaining regular contact with the key decision makers.

Our strategy is supported by a contact management software platform by Symantec Corporation called ACT! It is one of the top three contact management software programs available and has proven invaluable in managing customer interactions. Our new marketing manager has implemented this program as a foundation for our new marketing strategy. Regular contact facilitates new opportunities, knowledge of personnel changes, company focus shifts, referral possibilities and customer comfort level. Regular contact assures customers that we are a part of their team and not just someone else to contact if and when a need arises.

5.1 Competitive Edge

Our strongest advantages are our consultative philosophy and purchase methodology. We come to the market with 18 years of printing knowledge in the Colorado area and over 14 years of direct Business-to-Business sales experience. Additionally, we have 12 years of experience with computer technology which we will integrate with our business model to enhance and streamline our capabilities. Our focus on customer service is our foundation. The goal is to reduce the number of our customers who are willing to try someone else from the industry standard 80% to zero.

5.2 Sales Strategy

The first element is to get an onsite appointment. We will develop a rapport with the customer by taking a genuine interest in them and their business needs. Next we address current and future printing needs, develop a customized solution and present that in a clear format as quickly as possible. Finally, we follow up on all opportunities in a regimented manner. We utilize our customer contact management software to facilitate this goal.

Furthermore, we will continue to seek new contacts through our chamber memberships, seminars, business associations, referrals, and continued telemarketing. Our sales strategy is designed to both maximize and maintain existing relationships while continually looking for new opportunities. We also continually strengthen our existing vendor relationships while exploring new sources. This assures our clients that we can accommodate their needs with the best possible resource for their particular job. It also helps Copriso maintain multiple sources of supply to insure competitive supply pricing and timely turnaround availability.

5.2.1 Sales Forecast

With no sales efforts on existing business, Copriso (as ePrint) handled approximately $160,000 in annual sales over the past three years. Our new marketing strategy should increase our sales only slightly in the first few months, due to the extensive efforts that will be put forth to build and coordinate our operations. We expect to get approximately 3 new customers per month for the first 6 months. We have arrived at our target sales figures by adding these new customers and their business volumes to the numbers from previous years’ history, and also growing the business printing needs of the existing clients. Future projections indicate that a 30% increase per year is very attainable.

Printing services broker business plan, strategy and implementation summary chart image

Printing services broker business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Printing Services $275,000 $357,500 $464,750
Other $0 $0 $0
Total Sales $275,000 $357,500 $464,750
Direct Cost of Sales Year 1 Year 2 Year 3
Printing Services $151,250 $196,625 $255,613
Other $0 $0 $0
Subtotal Direct Cost of Sales $151,250 $196,625 $255,613

5.3 Milestones

The accompanying table lists important program milestones with dates for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table doesn’t show is the commitment behind it. Our business plan software includes complete provisions for plan-vs.-actual analysis, and we will be holding monthly follow-up meetings to discuss the variance and course corrections.

Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 6/1/2001 12/31/2001 $100 Owners Department
Long-term Loan 11/1/2001 1/2/2002 $0 Owners Department
Flow Charting 6/1/2001 8/1/2001 $0 Adam Department
Business Systems 6/1/2001 8/1/2001 $500 Paul Department
$30,000.00 cash in bank 1/1/2003 6/1/2004 $0 Owners Department
Benefits Package 10/1/2001 12/31/2002 $0 Owners Department
Articles of Incorporation 6/1/2001 6/30/2001 $0 Owners Department
Logo Apparel 6/1/2001 12/31/2001 $200 Adam Department
Totals $800

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Management Summary

Copriso is structured to be a two person operation. Both owners are managers as well. There is no immediate plan to hire any formal employees, however, the nature of our business model has us working with many subcontractors to match specific jobs.

6.1 Personnel Plan

Our two owners are key to our success.

Adam Suson has been involved with the printing industry since 1983 when his family owned and operated a Sir Speedy Franchise. From 1983 to 1996 he managed scheduling, procurement, press operations, employees and customer service issues for Sir Speedy. Duties included outsourcing, project management, timeline estimates and press knowledge. Adam demonstrated a unique ability to earn and maintain customer trust with his steadfast determination to meet and exceed customer expectations. His outgoing personality is continually reinforced with client recognition, confidence and trust. After 1993, he was handling all aspects of the printing process individually. Adam will be handling the accounting and job operations functions.

Paul Levy has 15 years of sales and marketing experience with industries ranging from banking and brokerage to technology and telephony. During his sales career, Paul consistently demonstrated an above average ability to find, close and maintain client relationships. He has managed sales volumes of up to $3 million annually and client populations of up to 5,000. Paul has had training and experience in telemarketing, prospecting, canvassing, leads sourcing, and sales to both government and corporate C-level, and has utilized various contact management software products. Furthermore, he has over 10 years marketing experience with a previous startup company, AMISYS, Inc. Paul has given seminars, put on demonstrations, met with clients both one-to-one, and in groups ranging from 2 to 1,000. He also brings an in-depth knowledge of computer technology to Copriso. As computer technology is playing an ever increasing role in the printing industry, his expertise in this area has and will continue to prove invaluable in customer communications, general operations, and our ability to handle and manipulate multiple media formats. Paul will be handling the sales and marketing functions.

Personnel Plan
Year 1 Year 2 Year 3
Adam Suson $45,000 $45,000 $45,000
Paul Levy $45,000 $45,000 $45,000
Other $0 $0 $0
Total People 2 2 2
Total Payroll $90,000 $90,000 $90,000

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Financial Plan

We want to finance growth through increasing sales and enlarging our customer base.

Initial funding for the marketing effort will be crucial to long-term success.

The most important factor in our case is our low overhead and high margin.

We will attempt to maintain our pre-paid and COD business to further strengthen our cash position in the long run.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

We assume an immediate increase in sales.

We assume there are no dramatic changes in business printing needs.

We assume a constant growth in our long-term customer base.

We assume continued influx of new customers with our aggressive marketing and sales strategies.

We assume that the printing industry will continue to show a resilience against global economic factors as a non-discretionary commodity.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 8.00% 8.00% 8.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

7.2 Break-even Analysis

The break-even analysis shows what Copriso requires in sales per month to break even. Our sales forecast is in line with this projection and exceeds it rapidly. Furthermore, we anticipate an ability to regularly acquire 2 to 3 new customers per month.

Printing services broker business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $21,907
Assumptions:
Average Percent Variable Cost 55%
Estimated Monthly Fixed Cost $9,858

7.3 Projected Profit and Loss

We expect to ramp up the sales conservatively in order to achieve our desired long-term profit estimates.

Printing services broker business plan, financial plan chart image

Printing services broker business plan, financial plan chart image

Printing services broker business plan, financial plan chart image

Printing services broker business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $275,000 $357,500 $464,750
Direct Cost of Sales $151,250 $196,625 $255,613
Other Production Expenses $0 $0 $0
Total Cost of Sales $151,250 $196,625 $255,613
Gross Margin $123,750 $160,875 $209,138
Gross Margin % 45.00% 45.00% 45.00%
Expenses
Payroll $90,000 $90,000 $90,000
Sales and Marketing and Other Expenses $8,948 $10,804 $13,217
Depreciation $0 $0 $0
Entertainment $750 $1,125 $1,688
Telephone/Fax $1,800 $1,800 $1,800
Liability Insurance $600 $600 $600
Rent $0 $0 $0
Payroll Taxes $16,200 $16,200 $16,200
Other $0 $0 $0
Total Operating Expenses $118,298 $120,529 $123,504
Profit Before Interest and Taxes $5,453 $40,346 $85,633
EBITDA $5,453 $40,346 $85,633
Interest Expense $3,780 $3,160 $2,360
Taxes Incurred $502 $11,156 $24,982
Net Profit $1,171 $26,030 $58,291
Net Profit/Sales 0.43% 7.28% 12.54%

7.4 Projected Cash Flow

With the current projections, lack of overhead, and expected margins, we project no additional need for future investment or borrowing. Cash flow and cash balance should both increase steadily through the lifecycle of the business eliminating the need for further or ongoing funding.

Printing services broker business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $110,000 $143,000 $185,900
Cash from Receivables $141,400 $207,420 $269,646
Subtotal Cash from Operations $251,400 $350,420 $455,546
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 $0 $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 $251,400 $350,420 $455,546
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $90,000 $90,000 $90,000
Bill Payments $171,000 $234,452 $310,295
Subtotal Spent on Operations $261,000 $324,452 $400,295
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 $5,500 $10,000 $10,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $266,500 $334,452 $410,295
Net Cash Flow ($15,100) $15,968 $45,251
Cash Balance $34,900 $50,868 $96,119

7.5 Projected Balance Sheet

The following table shows our projected Balance Sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $34,900 $50,868 $96,119
Accounts Receivable $23,600 $30,680 $39,884
Other Current Assets $0 $0 $0
Total Current Assets $58,500 $81,548 $136,003
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $58,500 $81,548 $136,003
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $12,829 $19,847 $26,010
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $12,829 $19,847 $26,010
Long-term Liabilities $44,500 $34,500 $24,500
Total Liabilities $57,329 $54,347 $50,510
Paid-in Capital $43,000 $43,000 $43,000
Retained Earnings ($43,000) ($41,829) ($15,799)
Earnings $1,171 $26,030 $58,291
Total Capital $1,171 $27,201 $85,492
Total Liabilities and Capital $58,500 $81,548 $136,003
Net Worth $1,171 $27,201 $85,492

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7389.1706, Printing Brokers, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 30.00% 30.00% 8.77%
Percent of Total Assets
Accounts Receivable 40.34% 37.62% 29.33% 25.04%
Other Current Assets 0.00% 0.00% 0.00% 48.34%
Total Current Assets 100.00% 100.00% 100.00% 76.80%
Long-term Assets 0.00% 0.00% 0.00% 23.20%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 21.93% 24.34% 19.12% 37.98%
Long-term Liabilities 76.07% 42.31% 18.01% 13.86%
Total Liabilities 98.00% 66.64% 37.14% 51.84%
Net Worth 2.00% 33.36% 62.86% 48.16%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 45.00% 45.00% 45.00% 100.00%
Selling, General & Administrative Expenses 45.74% 38.57% 33.23% 82.52%
Advertising Expenses 2.00% 2.00% 2.00% 1.54%
Profit Before Interest and Taxes 1.98% 11.29% 18.43% 1.73%
Main Ratios
Current 4.56 4.11 5.23 1.60
Quick 4.56 4.11 5.23 1.26
Total Debt to Total Assets 98.00% 66.64% 37.14% 60.73%
Pre-tax Return on Net Worth 142.86% 136.71% 97.40% 2.33%
Pre-tax Return on Assets 2.86% 45.60% 61.23% 5.94%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 0.43% 7.28% 12.54% n.a
Return on Equity 100.00% 95.70% 68.18% n.a
Activity Ratios
Accounts Receivable Turnover 6.99 6.99 6.99 n.a
Collection Days 58 46 46 n.a
Accounts Payable Turnover 14.33 12.17 12.17 n.a
Payment Days 27 25 26 n.a
Total Asset Turnover 4.70 4.38 3.42 n.a
Debt Ratios
Debt to Net Worth 48.97 2.00 0.59 n.a
Current Liab. to Liab. 0.22 0.37 0.51 n.a
Liquidity Ratios
Net Working Capital $45,671 $61,701 $109,992 n.a
Interest Coverage 1.44 12.77 36.29 n.a
Additional Ratios
Assets to Sales 0.21 0.23 0.29 n.a
Current Debt/Total Assets 22% 24% 19% n.a
Acid Test 2.72 2.56 3.70 n.a
Sales/Net Worth 234.89 13.14 5.44 n.a
Dividend Payout 0.00 0.00 0.00 n.a

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your 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
Printing Services 0% $15,000 $25,000 $30,000 $25,000 $25,000 $25,000 $20,000 $20,000 $25,000 $25,000 $20,000 $20,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $15,000 $25,000 $30,000 $25,000 $25,000 $25,000 $20,000 $20,000 $25,000 $25,000 $20,000 $20,000
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
Printing Services $8,250 $13,750 $16,500 $13,750 $13,750 $13,750 $11,000 $11,000 $13,750 $13,750 $11,000 $11,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $8,250 $13,750 $16,500 $13,750 $13,750 $13,750 $11,000 $11,000 $13,750 $13,750 $11,000 $11,000
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
Adam Suson 0% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Paul Levy 0% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 2 2 2 2 2 2 2 2 2 2 2 2
Total Payroll $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500

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 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 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
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 $15,000 $25,000 $30,000 $25,000 $25,000 $25,000 $20,000 $20,000 $25,000 $25,000 $20,000 $20,000
Direct Cost of Sales $8,250 $13,750 $16,500 $13,750 $13,750 $13,750 $11,000 $11,000 $13,750 $13,750 $11,000 $11,000
Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $8,250 $13,750 $16,500 $13,750 $13,750 $13,750 $11,000 $11,000 $13,750 $13,750 $11,000 $11,000
Gross Margin $6,750 $11,250 $13,500 $11,250 $11,250 $11,250 $9,000 $9,000 $11,250 $11,250 $9,000 $9,000
Gross Margin % 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00% 45.00%
Expenses
Payroll $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Sales and Marketing and Other Expenses $568 $793 $905 $793 $793 $793 $680 $680 $793 $793 $680 $680
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Entertainment $50 $50 $50 $50 $50 $50 $75 $75 $75 $75 $75 $75
Telephone/Fax $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Liability Insurance $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 18% $1,350 $1,350 $1,350 $1,350 $1,350 $1,350 $1,350 $1,350 $1,350 $1,350 $1,350 $1,350
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $9,668 $9,893 $10,005 $9,893 $9,893 $9,893 $9,805 $9,805 $9,918 $9,918 $9,805 $9,805
Profit Before Interest and Taxes ($2,918) $1,358 $3,495 $1,358 $1,358 $1,358 ($805) ($805) $1,333 $1,333 ($805) ($805)
EBITDA ($2,918) $1,358 $3,495 $1,358 $1,358 $1,358 ($805) ($805) $1,333 $1,333 ($805) ($805)
Interest Expense $333 $330 $327 $323 $320 $317 $313 $310 $307 $303 $300 $297
Taxes Incurred ($975) $308 $951 $310 $311 $312 ($335) ($335) $308 $309 ($332) ($331)
Net Profit ($2,276) $719 $2,218 $724 $726 $729 ($783) ($781) $718 $720 ($774) ($771)
Net Profit/Sales -15.17% 2.88% 7.39% 2.90% 2.91% 2.91% -3.91% -3.90% 2.87% 2.88% -3.87% -3.86%

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 $6,000 $10,000 $12,000 $10,000 $10,000 $10,000 $8,000 $8,000 $10,000 $10,000 $8,000 $8,000
Cash from Receivables $0 $300 $9,200 $15,100 $17,900 $15,000 $15,000 $14,900 $12,000 $12,100 $15,000 $14,900
Subtotal Cash from Operations $6,000 $10,300 $21,200 $25,100 $27,900 $25,000 $23,000 $22,900 $22,000 $22,100 $23,000 $22,900
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 $6,000 $10,300 $21,200 $25,100 $27,900 $25,000 $23,000 $22,900 $22,000 $22,100 $23,000 $22,900
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 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Bill Payments $326 $10,009 $16,897 $20,165 $16,776 $16,774 $16,655 $13,283 $13,397 $16,782 $16,663 $13,273
Subtotal Spent on Operations $7,826 $17,509 $24,397 $27,665 $24,276 $24,274 $24,155 $20,783 $20,897 $24,282 $24,163 $20,773
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 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
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 $7,826 $18,009 $24,897 $28,165 $24,776 $24,774 $24,655 $21,283 $21,397 $24,782 $24,663 $21,273
Net Cash Flow ($1,826) ($7,709) ($3,697) ($3,065) $3,124 $226 ($1,655) $1,617 $603 ($2,682) ($1,663) $1,627
Cash Balance $48,174 $40,465 $36,768 $33,702 $36,826 $37,053 $35,397 $37,015 $37,618 $34,936 $33,273 $34,900
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 $50,000 $48,174 $40,465 $36,768 $33,702 $36,826 $37,053 $35,397 $37,015 $37,618 $34,936 $33,273 $34,900
Accounts Receivable $0 $9,000 $23,700 $32,500 $32,400 $29,500 $29,500 $26,500 $23,600 $26,600 $29,500 $26,500 $23,600
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $50,000 $57,174 $64,165 $69,268 $66,102 $66,326 $66,553 $61,897 $60,615 $64,218 $64,436 $59,773 $58,500
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 $50,000 $57,174 $64,165 $69,268 $66,102 $66,326 $66,553 $61,897 $60,615 $64,218 $64,436 $59,773 $58,500
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 $9,450 $16,221 $19,606 $16,217 $16,215 $16,212 $12,840 $12,838 $16,223 $16,220 $12,831 $12,829
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 $9,450 $16,221 $19,606 $16,217 $16,215 $16,212 $12,840 $12,838 $16,223 $16,220 $12,831 $12,829
Long-term Liabilities $50,000 $50,000 $49,500 $49,000 $48,500 $48,000 $47,500 $47,000 $46,500 $46,000 $45,500 $45,000 $44,500
Total Liabilities $50,000 $59,450 $65,721 $68,606 $64,717 $64,215 $63,712 $59,840 $59,338 $62,223 $61,720 $57,831 $57,329
Paid-in Capital $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000 $43,000
Retained Earnings ($43,000) ($43,000) ($43,000) ($43,000) ($43,000) ($43,000) ($43,000) ($43,000) ($43,000) ($43,000) ($43,000) ($43,000) ($43,000)
Earnings $0 ($2,276) ($1,556) $662 $1,385 $2,112 $2,840 $2,057 $1,277 $1,995 $2,715 $1,942 $1,171
Total Capital $0 ($2,276) ($1,556) $662 $1,385 $2,112 $2,840 $2,057 $1,277 $1,995 $2,715 $1,942 $1,171
Total Liabilities and Capital $50,000 $57,174 $64,165 $69,268 $66,102 $66,326 $66,553 $61,897 $60,615 $64,218 $64,436 $59,773 $58,500
Net Worth $0 ($2,276) ($1,556) $662 $1,385 $2,112 $2,840 $2,057 $1,277 $1,995 $2,715 $1,942 $1,171

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan