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Executive Summary

SAFEassure, LLC has designed a new product that provides managers with a quick, easy, and affordable method to effectively monitor employee hand washing. Proper hand washing is the most effective preventative measure available to combat communicable diseases.

Improper hand washing contributes to more than 130,000 deaths in the U.S. each year through the transfer of communicable diseases in restaurants, day cares and hospitals (more than AIDS and breast cancer combined). Studies have shown that proper hand washing procedures in these environments could cut down the spread of disease by up to 75%. The greatest contributing factor to this problem stems from the inability of supervisors to monitor and control employee hand washing. Existing products offer no effective or affordable solutions for enforcing and ensuring hand washing compliance. Treatment of preventable diseases costs Americans over $95 Billion in direct costs each year. (

SAFEassure, LLC is the first producer that answers this problem and provides indisputable proof every time a person washes his or her hands. After washing occurs, the unique dye in our soap remains on the hands and fades to the skin’s natural color in under six minutes. This would allow supervisors to conclusively verify at a glance whether hand washing has taken place. No other product on the market offers such a high level of assurance of sanitation compliance.  The product is safe and meets all current FDA regulatory requirements for soap.

The Market
Although restaurants and hospitals have tremendous market need for a product such as ours, day cares represent the best opportunity for our initial target market. Day cares are an ideal market because they have a vested interest in reducing disease transfer amongst children, and have adamant support from their clients [parents] to create as clean an environment as possible. As stated by Family Practice News, “Most day care centers are sophisticated little germ factories, exchanging bacteria and viruses with the shake of a hand or the sharing of a toy. And many of those nasty bugs travel home where they can infect the rest of the family.”

The Company
SAFEassure, LLC boasts a strong founding team and experienced board of advisors. Our primary advisor, Jack Soap, brings twenty years of industry experience and networked relationships to accelerate market penetration of the product line. SAFEassure, LLC will outsource the production of its soaps to an existing soap manufacturer. The executive team will first target the Portland Metro area and eventually the greater Northwest using direct sales and existing distributor channels to penetrate the market. Initial capital will be used to test, patent, approve, produce, and market SAFEassure, as well as provide working capital for the first year.

SAFEassure, LLC will follow three concise strategies to achieve our desired growth:

  • Exploit first-mover advantage in a highly fragmented market with a unique and differentiated product.
  • Develop a strong branding campaign to build awareness, positive perception and sales of our products within our target markets.
  • Continue to develop new products to satisfy an ever growing set of markets.

Based on detailed financial projections, SAFEassure, LLC will require $250,000 in start-up capital, but will generate positive cash flow in October, Year 1. By the end of Year 3 the company will be generating $850,000 in sales with sizeable net profit. SAFEassure, LLC offers investors a company with substantial growth potential, cushioned by revenue generating stability.

Soap manufacturer business plan, executive summary chart image


Our mission is to create value for customers and shareholders by continually improving health and reducing preventable illnesses through the use of our soap.

Keys to Success

  • A first-mover branding campaign to build awareness of SAFEassure’s products as the standard for ensuring hand washing compliance.
  • Patent protection to defend our time-sensitive dye and product concept from competitors.
  • Complementary relationships with organizations interested in increasing hand washing compliance.


  • Develop a complete prototype which meets regulatory standards by February of Year 1.
  • Become the specialty soap of choice for day cares across the Northwest by December Year 2.
  • Achieve sales of $5 million by the end of Year 6.

Company Summary

SAFEassure, LLC was founded in Portland, Oregon, and created as a Limited Liability Corporation. SAFEassure, LLC develops and markets soaps utilizing time-sensitive dyes promoting sanitary and safe environments to businesses and parents interested in maximizing cleanliness. The company will initially be based out of a residential apartment in Portland.

Company Ownership

The executive team will retain at least 70% of the equity in the company. Every $2,500 dollars of investment in the company will secure up to 1% equity in the company. Assuming 30% of the company is owned by investors, Devon Nevius will retain 40% ownership, with Kevin Meinert retaining 30%.

Start-up Summary

Total funding required to get the business started is estimated at $250,000, of which the executive management team – Devon Nevius and Kevin Meinert – will invest $100,000 and $75,000, respectively. An additional $75,000 investment necessary to develop a product and effectively bring SAFEassure’s products to an initially limited geographic region is sought from other investor(s).

The key elements in the start-up plan for the company are:

  • Development of a working prototype.
  • Funding of working capital requirements and promotional materials for the principal operating activities of the company.
  • Gaining patent approval.
  • Establish a strong brand image early to position ourselves in the market.

The founders have already developed a rough prototype of the product. Our start-up period includes 5 months of work by an independently-contracted chemist at a local lab who will perfect this design into a finished prototype, with the correct balance of soap and dyes in four colors. The final two months of this start-up period include safety tests per government regulations to assure high quality.

Soap manufacturer business plan, company summary chart image

Start-up Expenses
Legal $15,000
Stationery etc. $100
Brochures $5,000
Consultants $1,000
Insurance $500
Rent $0
Website Development $450
Research and Development $100,000
Expensed Equipment $250
Other $1,000
Total Start-up Expenses $123,300
Start-up Assets
Cash Required $76,700
Start-up Inventory $50,000
Other Current Assets $0
Long-term Assets $0
Total Assets $126,700
Total Requirements $250,000
Start-up Funding
Start-up Expenses to Fund $123,300
Start-up Assets to Fund $126,700
Total Funding Required $250,000
Non-cash Assets from Start-up $50,000
Cash Requirements from Start-up $76,700
Additional Cash Raised $0
Cash Balance on Starting Date $76,700
Total Assets $126,700
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Planned Investment
Devon Nevius $100,000
Kevin Meinert $75,000
Other Investor(s) $75,000
Additional Investment Requirement $0
Total Planned Investment $250,000
Loss at Start-up (Start-up Expenses) ($123,300)
Total Capital $126,700
Total Capital and Liabilities $126,700
Total Funding $250,000

Company Locations and Facilities

The management team of SAFEassure, LLC will initially use a residential apartment in Portland to run operations. In Year 2, we will move to a rented office. Distribution will remain outsourced.


SAFEassure’s product line provides a unique control level to managers, supervisors and parents alike. We have two basic product lines: CHILDassure, intended for day care facilities, and an antimicrobial-based product for hospitals (HEALTHassure) and restaurants (FOODassure) – the antibacterial products are not yet in development. The various product lines, competitors and future product possibilities for SAFEassure, LLC will be outlined in the following section.

Product Description

  • SAFEassure, LLC will produce a line of institutional liquid soaps with a time-sensitive dye blended into the mixture.
  • The dye reacts with the hands during the lathering process, staining the hands a distinct color, then fading in under six minutes.
  • The product will sell for approximately $90/case. (4 gallons/case)
  • The packaging will be compatible with existing soap dispensers mounted in washing stations and be available in a variety of sizes.
  • Initially, SAFEassure, LLC will produce products with child care acquirers in mind, utilizing the brightest colors possible. This product line, called CHILDassure, will consist of four colors: red, blue, pink and green.

Competitive Comparison

  • SAFEassure’s products offer a high value alternative to other hand washing compliance products.
  • They provide an unprecedented level of control, allowing these managers to monitor and follow hand washing frequency and habits of both child-care workers and children. Ultimately this can lower costs for all users, either in a workplace or private environment by reducing the risk of disease outbreaks and/or health code violations.
  • As the first fading dye hand soap in the market, SAFEassure, LLC will build brand identity, establishing the company as the standard for improving hand washing compliance.
  • As SAFEassure’s products become more familiar in a workplace environment, the product will begin to produce a pressure on employees, whereby they feel compelled to wash their hands out of a consciousness about the perception of all employees, not just managers. This “peer pressure” effect will further fuel the use of our products and the recognition of the benefits they deliver.

Sales Literature

In order to sell our product while creating familiarity and a positive brand image, it will be necessary to develop brochures and literature to emphasize the safety and beneficial attributes of fading dye soap, many of which may not be readily apparent to an interested party. These will be delivered both in person during a sales presentation and by direct mail.


The key to our success is the time-sensitive dye. Once the proper ratio of dye to base soap is isolated, the fragmented nature of the soap industry provides many options for outsourcing production. Similar to any commodity, economies of scale require the soap to be produced, packaged and distributed in large batches. Initially, the soap base will be purchased in quantities of at least 38,000 gallons for approximately $50,000. Once the relationship with the manufacturer is established, our subsequent purchases will be approximately for $20,000. These inventory amounts should be sufficient to for SAFEassure, LLC to meet the customer demand. Utilizing his production and distribution knowledge, Rick Brown will use existing established relationships in the industry to help us mix, package and distribute the product line.


The technology of our fading dyes will be pivotal in the success of our company.  The interactions between fading dyes and antibacterial or anti-microbial bases suitable for use in restaurants or hospitals are more complicated than the interactions with the glycerin or lotion soaps utilized in the CHILDassure line. As soon as cash flow permits, projected to be in 2008, SAFEassure, LLC will employ a professional chemist with experience developing dye products to further the research into technological innovations that may produce antibacterial and anti-microbial versions of the soap to address additional markets.

Future Products

Additional soap products, manufactured to comply with regulatory minimums for strength and effectiveness in their respective target markets will be developed to address restaurants and hospitals. These soaps will be trade marked under the names FOODassure and HEALTHassure, respectively.

Perhaps the most promising future market opportunity for fading dye soap is the retail market. This product line will include soaps using the same or similar dye colors as the day care to encourage children to wash their hands more often at home. This will be a top priority when the company develops the financial resources enough to mount a national advertising campaign and distribution system. A complete line of fading dye products could potentially be developed, including floor, counter and body cleaning products that use fading dyes to indicate places on a surface that may not have been cleaned.

Market Analysis Summary

There is tremendous potential for a product that provides supervisors and parents with the control to monitor and encourage hand washing. Considering the large scope of our potential markets, we feel it is imperative to focus our limited resources on a particular geographic region where we can establish demand for our product. After successful market penetration, we will begin  implementation into the restaurant and hospital markets.

Market Segmentation

SAFEassure’s first product line addresses the day care market. CHILDassure will first be introduced in the Portland, OR area, before sequential expansion to additional day care markets. There are currently 516 day care facilities in the Portland Metro area. After successful implementation in Portland, we will begin expansion into the greater Northwest. There are 3,414 day care facilities in the greater Northwest.

Successful penetration into the day care market will be followed by implementation into the restaurant and hospital markets. There are currently 19,362 restaurants in the Northwest, followed by health care services, which includes 23,108 organizations in the Northwest.

Industry Analysis

The Industrial and Institutional soap industry, of which we are a part, is quite fragmented, but contains several well known main competitors: Gojo, Kimberley Clark, Dial, Provon, and SoftSoap, as well as generic brands that provide to distributors like Massco and Sysco. The industry is stable and growing; between 1998 and 2003 it grew by an average of 4% annually. Within the I&I sector there is fierce competition for market share among the existing popular soap offerings, leading to lean profits on soap sales.

Distribution Patterns

Distribution in the soap industry is provided by regional providers. These distribution companies usually serve a large portion of the market based on the respective size of the market, delivering to the organizations monthly or bi-monthly depending on demand and usage patterns. Food services typically receive deliveries of cleaning products once a month. Hospitals typically have a distribution system that operates on monthly deliveries of large quantities. Restaurants typically have a weekly delivery schedule.

Competition and Buying Patterns

Commercial customers select soap based on the necessary minimum safety regulations for the intended user; restaurant and hospital regulations require anti-bacterial/microbial. Customers will typically select a product based on price, distributor availability, and convenience. Distributors will deliver a complete order of cleaning and maintenance products to customers. Major competitors sell to a variety of customers, including distributors like Sysco, who receive generic soap from bulk producers, then repackage and deliver it along with other products it sells, utilizing the same distribution systems.

Main Competitors

Traditional soap producers
Soap is a common and familiar the commodity of necessity to every company. Traditional soaps employ pleasant scents and dyes to encourage hand washing compliance. However there is no way to verify if hand washing has occurred and traditional soaps do little beyond the pleasant scents to encourage hand washing.

The largest current soap producer, Dial Corp, consistently achieves strong sales, and has enjoyed strong market share in the commercial markets. Producing a wide variety of soap products, Dial has maintained 18% in market share over the last decade. The other largest commercial soap providers include Kimberly Clark, Gojo, SoftSoap, Provon and NXT.

Alternative hand washing compliance systems
HyGenius, a product produced by Compliance Control Inc., is a complete hand washing compliance system that is installed (and leased) in businesses like restaurants, hotels, hospitals and receive. The system includes a small control box that controls water temperature, pressure and run time. By systematically controlling these factors, employees can be both trained and monitored in their hand washing frequency and technique. Periodic reports stored on the computer and linked to the Internet can be produced to indicate the number of times per month employees have been washing their hands, and the estimated savings that the system has created through efficient water use.

This system has limited value to business managers because they are expensive to install and lease, and do not necessarily increase employee compliance. They provide managers the ability to track usage, but do not help control day-to-day hand washing compliance individually or immediately.

Disposable Gloves
Hypo-allergenic gloves are the solution provided by some organizations to combat the threat of hand washing non-compliance. To limit the risk of hand contamination, many restaurants and all hospitals require the use of gloves. Although gloves eliminate the risk of direct hand contamination they are not without downfalls:

  • Gloves can carry bacteria in-between fingers, and on the glove surface, causing similar cross contamination to that of bare hands.
  • Disposable gloves can cost a location upwards of $5,000 each year.
  • Gloves can provide a false sense of security, causing employees to substitute gloves in place of proper hand washing.
  • Gloves rip and tear.

Industry Participants

The soap industry is highly fragmented. There are more than forty different Institutional soap products that compete in the market. 

Target Market Segment Strategy

Our initial day care market will consist of medium to large day care organizations, consisting of twenty or more children. Organizations such as Kindercare and La Petite Academy represent very attractive opportunities for our products. Organizations of this type are attractive because they are well managed, successful, health conscious and nationwide. Within these organizations we will target decision level managers with the power to implement use of our product in those locations.

Market Needs

According to a study published in the medical journal, Infectious Diseases in Children, researchers in hand washing recovered fecal coliforms from the hands of one out of every five staff members, citing that more than 33% of day care facilities “had poor hand washing techniques and no policy for hand washing before eating or after playing outside. In spite of all the studies about the benefits of hand washing, improper or infrequent hand washing continues to be a major factor in the spread of disease in day-cares.” (

Hand washing in child care facilities is an ideal initial target market for several additional reasons:

  • Child care facilities have rampant illness and germ problems that can be directly reduced through frequent child and worker hand washing.
  • Child care facilities have strict, government mandated rules that require frequent hand washing.
  • Parents are particularly interested in reducing child illness, making them one of our strongest advocates for the use of CHILDassure in environments they cannot directly monitor.

In a study cited by Family Practice News in 1996, “Scientists had kids wash their hands when they arrived at school, before lunch then again after lunch time, recess and one more time before heading home every single day.”  As a result of these ‘scheduled’ wash times, researchers found that “a month later, these kids had 24 percent fewer days off from colds, sniffles and flus and a whopping 51 percent fewer sick days because of gastrointestinal complaints like stomach cramps or diarrhea.” ( 

With nearly 12 million children in child care facilities across the nation there is a clear need for CHILDassure, our first product, that can both encourage and help monitor child and employee hand washing to ensure a safe, clean environment for children. Additional future target markets also have significant need for fading dye products:

  • Hospitals:  “In health care, nurses and doctors wash only 30% of the required time between patient contacts and procedures. Each year, an alarming 2,400,000+ nosocomial infections occur in the U.S. alone. They are estimated to directly cause 30,000 deaths and contribute to another 70,000 deaths each year. Nosocomial infections cost over $2,300 per incident and $4.5 billion annually in extended care and treatment.” (Source: CDC) (
  • Restaurants:  “Food borne illness kills over 10,000 people each year. Over 70% of all outbreaks originate in food service operations and, as many as 40% are the result of poor food service and cross-contamination. Each year over 80 million estimated cases of food poisoning occur in the United States alone. The U.S. spends between $7.6 and $23 billion annually on health care and lost productivity resulting from food borne illness. The average incident costs the food service company over $75,000 and results in significant future sales losses.” (Source: FDA) ( 

There has been a recent effort by the Food and Drug Association, the Center for Disease Control, the National Restaurant Organization, and others to promote education to increase hand washing compliance in target markets. The focus of these programs is to educate and encourage preventative control measures for children and workers to help reduce diseases and lawsuits. This has led to greater awareness in our target markets about maximizing cleanliness and minimizing preventable illness.

There is an additional trend in both our target markets and industry towards organic based soaps. Organic products have become increasingly associated with safety and health in a variety of different markets. Our completely organic soap is complementary to this growing market trend.

Market Growth

The demand for child day care services will continue to grow. As the labor force participation of women between the ages of 16 and 44 remains high, parents of preschool and school-age children are expected to seek more day care arrangements. As parents continue to work during weekends, evenings, and late nights, the demand will grow significantly for child day care programs that can provide care during nontraditional hours. School-age children, who generally require child day care only before and after school, increasingly are being cared for in child care centers. (U.S. Department of Labor,

Strategy and Implementation Summary

The key element in SAFEassure’s initial strategy is to sell the fading dye soap in Portland’s day care facilities.  Our executive team will build loyalty for our products with decision-level managers of the organizations in the target markets, and create awareness and support of the benefits of the innovative fading dye attributes of our soap.

Strategy Pyramid

Our ultimate strategy is to build SAFEassure’s products into the standard for home and workplace hand washing safety and cleanliness, first regionally and eventually nationally. Our tactics to increase compliance through the use of our product include continual and progressive expansion into new markets and a strong branding campaign in coordination with promotional contracts with the government and possibly insurance companies.

Competitive Edge

Through the successful branding, first-mover advantage, excellent distribution and proprietary position of the company, SAFEassure, LLC will develop brand recognition beyond any competitor. As a small company, we are aware of the disadvantage we have in legal settings, should we face larger, more resourceful competitors. However, a patent for our unique product will provide us with a degree of protection beyond a first-mover advantage by creating an additional barrier to entry. As the market is quickly penetrated, we may have to consider selling the production and licensing rights outright to an established company, should their tactics pose a direct threat to the survival of the company.

Marketing Strategy

For our initial target market of day care facilities, the company will implement two parallel marketing efforts, aimed respectively at day care facility decision makers, and the parents of young children who use these facilities. We will create a push factor by effectively convincing the decision-level managers within the organizations that our product provides an ideal solution to the hand washing compliance. A “first to mind” branding campaign will build CHILDassure as the leader in increasing hand washing compliance. Significant parental support will encourage organizations to implement CHILDassure in environments involving their children.

Positioning Statement

CHILDassure is valuable to day care managers who need effective control solutions to ensure frequent child and child-care worker hand washing to keep the environment clean and to minimize preventable illness. No other product on the market serves the hand washing compliance aspect of workplace safety with such an affordable, direct and complete solution. Unlike traditional soaps, our product provides conclusive evidence every time an employee washes his or her hands for only a marginally higher cost than traditional soaps, and significantly less than gloves or other hand washing compliance systems.

Pricing Strategy

Retail pricing for CHILDassure will generally be around $90/case for four gallons and will command a 25-30% price premium over conventional liquid soaps. The value of our product will not be attractive to extremely price sensitive customers. The market for soap is generally inelastic, but our product offers significant differentiating benefits over current soaps that justify the price difference.

Promotion Strategy

One of the most important aspects of a successful launch is positive publicity for our product. We will develop an awareness campaign to promote our product through several avenues. Our management team will fiercely pursue positive public perception through government endorsements promoting the benefits of our products. We will also attempt to capitalize on the novelty of the solutions provided by our product by actively seeking local news and media coverage to help spread awareness. Buzz will be developed in social hubs by distributing samples to parties with potential interest. Parental support of the product will be garnered through free trials, demonstrations, and direct mailings to the day care parent roster lists, parent groups and PTA’s.

At washing stations in client facilities we will spread awareness with stickers targeted towards children, showing them the process of washing to turn their hands different colors and emphasizing how fun it can be. Pamphlets will be sent to the family homes through the day care roster mailing lists, to calm fears regarding a new product in their child’s environment, explain the benefits and encourage the parents to respond and build feedback for the benefits of the product to further increase implementation.

Some of the government programs of interest are the various compliance and workplace hygiene programs supported and funded by the Center for Disease Control (CDC), the Food and Drug Administration (FDA) and the National Center for Disease Control (NDIC). Programs such as the Health Protection Research Initiative implemented by the CDC demonstrate an invested interest by government programs in increasing the overall health of Americans.

Distribution Strategy

Our initial distribution strategy will involve a combination of distributor and direct sales. Relationships with local Northwest distributors will be established to increase promotional reach and potential users. The first orders will be available immediately through direct delivery by our executive team. Outsourcing distribution entirely in the future will allow SAFEassure, LLC to focus its efforts on marketing and expanding as quickly as possible.

Distributors will pay for the inventory up-front, and although this cuts our profit margins it helps SAFEassure, LLC to maintain a more flexible structure. By the start of 2007, distribution will be entirely outsourced  to distribution companies, and direct deliveries from the executive team will cease.

Marketing Programs

Our most important marketing program is our branding program, aimed initially at regional chain and franchise managers. This program is intended to penetrate the target markets, and establish SAFEassure’s products as the soap of choice. Achievement should be measured against our projected 45% monthly sales growth rate for the first year.

Emphasizing the risks associated with hand washing non-compliance, our marketing program will employ the fear of disease, costs of illness and government regulations extensively. Written materials will convey urgency, connect users to the underlying problem and suggest SAFEassure’s products as the optimal solution to the problem.<

Sales Strategy

Sales strategy will initially address local and regional managers with ordering authority for the establishments in that area. The prospective clients will be supplied with a professional product information packet and moved into the sales funnel to begin closing prospect, followed up with a direct mail brochure and a phone call.

There will be no initial direct compensation or commission for closed sales. Proceeds from sales will be invested back into developing and expanding the business. As the company begins to increase its initial sales force, commission-based incentive programs will be implemented.

Sales Forecast

  • If we are able to distribute our product through existing distributors, it will provide us a significant financial advantage, as well as the ability to meet the quick increase in demand for our product. 
  • Beginning with an initial monthly sale of $1,250 for our day care soap product (CHILDassure), we predict sales will increase by 45% per month for the first year.  We then calculate a growth rate of 90% yearly.  Cost of Goods Sold is approximately 47% of sales.  However, COGS grows at a yearly rate of 88%, which is less than the sales growth rate in order to represent the economies of scale that we hope to achieve as our operations grows.
Soap manufacturer business plan, strategy and implementation summary chart image

Soap manufacturer business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
CHILDassure soap (day care) $237,168 $450,620 $856,177
HEALTHassure/FOODassure $0 $0 $0
Total Sales $237,168 $450,620 $856,177
Direct Cost of Sales Year 1 Year 2 Year 3
CHILDassure soap (day care) $94,867 $178,351 $321,031
HEALTHassure/FOODassure $0 $0 $0
Subtotal Direct Cost of Sales $94,867 $178,351 $321,031

Strategic Alliances

SAFEassure, LLC will initially encourage critical strategic alliances in two distinct areas:


The relationship between SAFEassure, LLC and the product distributors will be essential. A flexible distribution system will be critical to the success and growth of our product. Good distribution will allow our product to satisfy and flexibly expand to accommodate demand.

The Government

By teaming up with government organizations, SAFEassure, LLC will be able to utilize existing hand washing compliance programs to reach a much larger potential audience than could be directly contacted. Government endorsement of our product, and the mention of its benefits in government brochures and written materials could be a major competitive advantage and sales opportunity for SAFEassure, LLC.


  1. Development by the founding team of a ‘rough’ prototype, to be further developed by a professional by September of 2004.
  2. Attain funding to complete the testing and development of a complete and working product prototype by November of 2004.
  3. Product development is initially the responsibility of the founding team; later, we will hire a professional chemist for the final testing and completion of the product. This final prototype will be completed by February of 2005.
  4. Final safety testing of the initial product with regulatory oversight in December, January and February.
  5. After the prototype is completed in February of 2005, a patent will immediately be applied for by the founding team. Target date for patent process completion is January 2007.
  6. Promotional materials will be developed to preempt the completion of the prototype to allow for quick acceleration to market, promotional materials development will begin in November of 2004.
  7. “Phase One” marketing will include market penetration in Portland area’s day care facilities. It will begin in February of 2005.
  8. After successful implementation within our primary market, we will begin the development of new products to address the hospital and restaurant markets, targeted for June of 2008.
Soap manufacturer business plan, strategy and implementation summary chart image

Milestone Start Date End Date Budget Manager Department
Develop Approximate Prototype 7/1/2004 9/1/2004 $0 Founders Product Dev.
Attain Funding 7/1/2004 11/1/2004 $0 Founders Product Dev.
Develop Final Prototype 9/1/2004 2/1/2005 $80,000 Founders Product Dev.
Safety Testing 12/1/2004 3/1/2005 $20,000 Founders Product Dev.
Begin Patent Process 12/1/2004 1/1/2007 $10,000 Founders Legal
Design Promotional Material 11/1/2004 3/1/2005 $25,000 Founders Marketing
Begin “Phase One” Marketing 4/1/2005 12/31/2006 $18,000 Founders Marketing
Begin R & D of New Products 6/1/2008 6/1/2009 $75,000 Founders R & D
Totals $228,000

Web Plan Summary

Our website will be available as a resource to customers and interested parties. It will include statistics, surveys and articles to build awareness about the need for and benefits of our product. The website will provide interested parties with a way to contact our company for answers to any questions they may have, and will include information on ordering and locating the product. Our product will not be directly available online, but we will build positive perception and awareness about our product there through statistics and user testimonials demonstrating our value.

We will include the URL in all printed materials, and encourage distributors to link to our site. Because the audience for SAFEassure’s products is fairly specialized, the most efficient means for marketing the site will be working specifically with the intended customers and pointing them to the site. The site will be registered with search engines. 

After the initial implementation of CHILDassure, the site will also be used as a resource to promote our other fading dye products as they are developed. The website will then be converted into a multiple product site, perhaps expanding its offering to include direct ordering. The initial website, being fairly simple, will be built by the executive team and supported by one website professional. Initial development is estimated to cost less than $500.

Management Summary

Two of our strengths are the low cost structure and flexible personnel needs. Sales people with experience relevant to each new respective target market can be attained as need dictates, but the initial management team consists of the founders themselves, with little operational support. The Board of Advisors will be a critical foundation for the successful growth and development of SAFEassure, LLC.

Management Team

Initially, both founders will share in the operational and financial responsibilities of the company. They will be responsible for finding, attaining and managing new accounts. Both founders will be responsible for making direct sales, marketing, and all other operational tasks involved with making this company successful. The CEO will oversee all company decisions.


Devon Nevius: President/Founder/CEO

Devon Nevius will oversee operations in all aspects of the business. In addition to managing client relationships, marketing and product expansion, Mr. Nevius will be responsible for hiring new personnel members to enhance the management team. Mr. Nevius will be receiving his bachelor of Science Degree in Business Administration from the University of Oregon with a concentration in Entrepreneurship.

In addition to this, Mr. Nevius founded and managed Green Leaf Collegiate Landscaping in Eugene, Oregon while a full-time student. Gross sales for the company reached $75,000 in 2004, and the company employed two foremen in addition to Mr. Nevius and his partner. Green Leaf Collegiate was sold early in 2004.

Kevin Meinert: Founder/COO

Kevin will contribute in both sales and financial management for SAFEassure, LLC He has worked as a manager at a restaurant and as a computer technician with several years of experience. In the spring of 2004, he will be receiving his bachelor of Science degree in Business Administration from the University of Oregon with a concentration in Entrepreneurship.

Board of Advisors:

Jack Soap: With over ten years in the soap industry, Mr. Soap has developed significant relationships and experience with other industry leaders. Currently running Birth to Three, a Eugene company that develops child hearing aids and programs for young parents, Mr. Soap is a dedicated, experienced and successful entrepreneur. He will be a valuable asset to the creation, set up and implementation of our product. Mr. Soap will consult and provide market information to the executive team and use his established contacts and relationships to accelerate the development and implementation of the product. Specifically, he will be critical in the establishment of a complete system to get the soap base from its original manufacturing plant to our customers.

John Patent: Dr. Patent is the Director of the Technology Transfer department of the University of Oregon. Dr. Patent is in charge of protecting and patenting concepts and technologies developed as a result of the myriad of research and development projects continually happening within the University.

Wilson Science: Mr. Science has been a Professor of Chemistry at the University of Oregon for over eighteen years. Mr. Science specializes in chemical interactions that break down over time. He has worked on projects dealing with plastics and containers that will quickly bio degrade after discarded, and other products with  short half-lives.

Franklin Money: Mr. Money is the Senior Vice President of the Lake Oswego Branch of Bank of America. Mr. Money specializes in business and investment consultation for his clients, helping entrepreneurs develop businesses efficiently and effectively.

Management Team Gaps

It will be necessary to hire new sales associates as we expand into each new market segment. An individual with experience in networking with the government, perhaps having specific contacts with the FDA and CDC, will be a necessary addition to successfully create a complementary relationship with government organizations. A child-care industry professional with relevant experience and networks in the industry will be acquired to accelerate sales growth. After sufficient cash flow has been established and revenues have plateaued, we will hire a chemist on salary to expand our existing product line. A chemical expert working as a consultant will initially be useful for three reasons:

  • Aiding in the research and creation of a safe initial prototype.
  • Troubleshooting problems with our product and answering customer questions and concerns about SAFEassure’s products as they arise.
  • Further developing the product for future target markets.

Personnel Plan

In order to free up enough capital to continue operations and possible expansion, our executive team will not receive more than a living wage salary until the product is well into the black. We understand that as a new product we will need technical support and legal advice; this will be currently outsourced to various consultants.

All sales for the first year of operation will be closed by the executive management team. Starting from the second year, we will employ a Sales Associate who will handle sales transactions. His/her compensation will be a combination of fixed salary and commission on sales. For the purposes of financial planning, we combined the Sales Associate’s compensation into an aggregate forecast.

To be flexible in meeting the customer demand, we plan to stock a minimum amount of product in a rented warehouse. At the beginning, all incoming product stock will be accepted and later dispatched to customers by the company’s executive team. Starting in the second year, we plan to hire a full-time Inventory Manager to handle these tasks.

As stated earlier, development of new products will not start until the second half of 2008. As such, related R & D costs are beyond the planning horizon of this document. However, we plan to earmark $20,000 and $40,000 for the second and third years of operation, respectively, under “R & D” for additional expenses related to the patent protection of our products. Should these expenses be minimized, our bottom line profitability (especially in the second year of operation) will be positively affected.

Personnel Plan
Year 1 Year 2 Year 3
Devon Nevius $28,800 $32,000 $50,000
Kevin Meinert $28,800 $32,000 $50,000
Inventory Manager $0 $30,000 $40,000
Sales Associate $0 $30,000 $36,000
Research and Development $0 $20,000 $40,000
Total People 2 5 6
Total Payroll $57,600 $144,000 $216,000

Financial Plan

Based on market research, we expect the business to begin growing at 45% per month for the first 12 months, then at a yearly rate of 90% for the next two years. Due to our low initial investment costs, we can maintain the operations of the business with the cash buffer we will have from start up.  In addition, we will almost immediately have a positive cash flow, allowing us the flexibility to cover any unforseen expenses.

Important Assumptions


  • We have assumed no payroll expense for the startup period.
  • 100% of sales will be made on credit, the industry standard. Although we do plan to sell some of our product (mostly for product promotion purposes) to the government agencies who usually demand substantially longer payment terms, our major target group will remain commercial entities. As such, we assume, on average, a 45-day collection schedule.
  • Customers will pay for all relevant shipping charges.
  • To be flexible in meeting the customer demand, we plan to maintain a minimal stock of product at a rented warehouse and dispatch it from there. The rest of the product we expect to be shipped from the outsourced producer’s site.
  • Once we make the decision to address additional market segments, we will begin increasing our marketing and sales expenses to represent the expected increase in costs associated with developing packaging, advertisements, additional promotions, and creating awareness of our products in the differing markets.


  • Initial target markets include all professional day care facilities with capacity for 20 or more children.
  • Projections related to consumer acceptance were estimated using market surveys.
  • Initial total market size is comprised of professional day care facilities in the greater Portland Metro area. Additional markets include Seattle and the greater Northwest in 2008.


  • Further research to finally arrive at a working prototype will be outsourced to a chemist with extensive experience working with dyes.
  • After a working prototype is developed it will be pushed through the appropriate regulatory channels.
  • Funding for research for the first product (CHILDassure) will be provided for in the initial startup capital outlined in the start up table and summary.
  • We will use our success in the day care market to propel and fund in additional research and development on an antibacterial version of our soap for use in restaurants (FOODassure) and hospitals (HEALTHassure).
  • Should the cumulative $60,000 expenses earmarked during the second and third years for the patent protection of our products be minimized, our bottom line profitability will be positively affected.
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 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

Key Financial Indicators

Sales – Our sales are projected to grow at a consistent rate of 90% yearly, and we believe this accurately reflects the realistic growth our product would be capable of attaining if we can properly utilize existing channels of distribution and gain social acceptance.

Gross Margin – As we grow, become more efficient, and gain economies of scale we begin to see a slight growth in our margins.

Operating Expenses – In 2007 and 2008 we see an increase in the number of operating expenses that we will incur. We begin incurring larger costs involving advertising, promotion, marketing, and payroll expenses.

Inventory Turnover – We will begin operations with a preliminary purchase of $50,000/ 38,000 gallons of soap. Our preliminary forecast suggests that for us to be flexible in meeting customer demand we will need to maintain a minimal inventory stock at a rented warehouse. We estimate that, on average, we will keep two weeks worth of inventory on hand.

Collection days – We will collect our accounts receivable on an average of 45 days. In 2007 and 2008 we will have the cash to cover unexpected costs or expenses so that we may decide to allow a longer collection period.

Soap manufacturer business plan, financial plan chart image

Break-even Analysis

The following fixed costs reflect the relative costs for selling and distributing our product within the greater Portland metro area, and do not reflect the fixed costs necessary to expand further.

Soap manufacturer business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $11,250
Average Percent Variable Cost 40%
Estimated Monthly Fixed Cost $6,750

Projected Cash Flow

Overall, our business is expected to generate sufficient cashflows. Our cash balance will, among other things, depend on the level of inventory we’ll decided to keep at a rented warehouse. At the moment, our projections in this respect are preliminary and we expect to fine-tune them as the demand for our products grows.

We expect to secure a $50,000 line of credit in year 3 to finance our receivables, listed as “New Current Borrowing” in the table below.

In year 5 of operations, we will begin looking at our ability to begin paying back our initial investors the $250,000. Although the terms of the additionally sought investment are yet to be agreed upon, we belief that our investors will provide us with a buffer of some years before expecting a return on their investment, allowing us the capital and time to expand and grow at an appropriate or desired rate. Nevertheless, for planning purposes, we have made provisions to start paying out a modest dividend from the third year of our operations. Currently, we set dividend payments to be equal to 5% of net profits.

Soap manufacturer business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $0 $0 $0
Cash from Receivables $138,736 $362,031 $687,858
Subtotal Cash from Operations $138,736 $362,031 $687,858
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $50,000
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 $138,736 $362,031 $737,858
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $57,600 $144,000 $216,000
Bill Payments $128,381 $215,710 $438,395
Subtotal Spent on Operations $185,981 $359,710 $654,395
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 $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $185,981 $359,710 $654,395
Net Cash Flow ($47,245) $2,320 $83,463
Cash Balance $29,455 $31,775 $115,239

Projected Profit and Loss

Our profit and loss projections reflect our expectation that monthly fixed costs will remain constant over the course of the first year.

Cost of goods sold increases at a decreasing rate, as economies of scale make soap production cheaper per unit as production volume increases. Based on these projections the company will become profitable in October, 2005.

Advertising expenses will remain steady during our first year of operations.  However, Advertising and Promotion will grow in years 2007 and 2008 to reflect the purchase of print ads, PR brochures, and additional promotional content.

Soap manufacturer business plan, financial plan chart image

Soap manufacturer business plan, financial plan chart image

Soap manufacturer business plan, financial plan chart image

Soap manufacturer business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $237,168 $450,620 $856,177
Direct Cost of Sales $94,867 $178,351 $321,031
Other $0 $0 $0
Total Cost of Sales $94,867 $178,351 $321,031
Gross Margin $142,301 $272,269 $535,146
Gross Margin % 60.00% 60.42% 62.50%
Payroll $57,600 $144,000 $216,000
Payroll Taxes $0 $0 $0
Depreciation $0 $0 $0
Rent $8,400 $8,400 $8,400
Utilities $1,200 $1,200 $1,500
Insurance $6,000 $6,000 $6,000
Telecommunications $1,200 $2,500 $3,500
Travel $1,800 $2,500 $4,000
Warehousing $3,600 $4,000 $4,500
Other General and Administrative Expenses $1,200 $1,200 $1,200
Total Operating Expenses $81,000 $169,800 $245,100
Profit Before Interest and Taxes $61,301 $102,469 $290,046
EBITDA $61,301 $102,469 $290,046
Interest Expense $0 $0 $2,500
Taxes Incurred $18,390 $30,741 $86,264
Net Profit $42,911 $71,728 $201,282
Net Profit/Sales 18.09% 15.92% 23.51%

Projected Balance Sheet

Once we have established a relationship with the manufacturer, we will purchase inventory in minimum quantities of approximately 15,000 gallons for approximately $20,000 per shipment (following the initial start-up inventory purchase, at $50,000).  As sales increase we expect that inventory turnover rate to increase.

Our only significant Accounts Payable will be Inventory, which are a direct reflection of the level of inventory on hand.  We will be paying off our Accounts Payable in accordance with sale of inventory.  Therefore, as we begin to sell more soap, we will be increasingly capable of meeting our obligations in a more timely manner, ensuring that we have enough cash on hand to cover our short term liabilities.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Current Assets
Cash $29,455 $31,775 $115,239
Accounts Receivable $98,432 $187,021 $355,340
Inventory $119,146 $34,927 $60,193
Other Current Assets $0 $0 $0
Total Current Assets $247,032 $253,723 $530,772
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $247,032 $253,723 $530,772
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $77,422 $12,384 $38,150
Current Borrowing $0 $0 $50,000
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $77,422 $12,384 $88,150
Long-term Liabilities $0 $0 $0
Total Liabilities $77,422 $12,384 $88,150
Paid-in Capital $250,000 $250,000 $250,000
Retained Earnings ($123,300) ($80,389) ($8,661)
Earnings $42,911 $71,728 $201,282
Total Capital $169,611 $241,339 $442,621
Total Liabilities and Capital $247,032 $253,723 $530,772
Net Worth $169,611 $241,339 $442,621

Business Ratios

The following table compares our ratios with standard ones from the soap and detergents industry (SIC Code 2841). Our current and quick ratios are much higher than industry averages.  This is due in part to the substantial difference between our assets compared to our liabilities.  Considering that we will be able to avoid any large loans and fund the company almost entirely independent of commercial creditors, there will necessarily be a discrepancy between our fairly large assets compared to our considerably smaller liabilities.  Our business model and truly unique product allows us to outsource the manufacturing of the product, since our added value comes in the soon to be patented dye/soap formula. So, unlike other commercial-use soap makers in our industry, we do not need to purchase major capital assets, funded by loans.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 90.00% 90.00% -2.19%
Percent of Total Assets
Accounts Receivable 39.85% 73.71% 66.95% 29.49%
Inventory 48.23% 13.77% 11.34% 23.24%
Other Current Assets 0.00% 0.00% 0.00% 21.00%
Total Current Assets 100.00% 100.00% 100.00% 73.73%
Long-term Assets 0.00% 0.00% 0.00% 26.27%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 31.34% 4.88% 16.61% 34.96%
Long-term Liabilities 0.00% 0.00% 0.00% 8.33%
Total Liabilities 31.34% 4.88% 16.61% 43.29%
Net Worth 68.66% 95.12% 83.39% 56.71%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 60.00% 60.42% 62.50% 33.85%
Selling, General & Administrative Expenses 24.35% 26.33% 26.71% 27.20%
Advertising Expenses 7.08% 5.33% 4.09% 0.73%
Profit Before Interest and Taxes 25.85% 22.74% 33.88% 0.81%
Main Ratios
Current 3.19 20.49 6.02 1.78
Quick 1.65 17.67 5.34 1.06
Total Debt to Total Assets 31.34% 4.88% 16.61% 46.64%
Pre-tax Return on Net Worth 36.14% 42.46% 64.96% 1.89%
Pre-tax Return on Assets 24.81% 40.39% 54.18% 3.54%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 18.09% 15.92% 23.51% n.a
Return on Equity 25.30% 29.72% 45.48% n.a
Activity Ratios
Accounts Receivable Turnover 2.41 2.41 2.41 n.a
Collection Days 40 116 116 n.a
Inventory Turnover 1.78 2.32 6.75 n.a
Accounts Payable Turnover 2.66 12.17 12.17 n.a
Payment Days 27 109 20 n.a
Total Asset Turnover 0.96 1.78 1.61 n.a
Debt Ratios
Debt to Net Worth 0.46 0.05 0.20 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $169,611 $241,339 $442,621 n.a
Interest Coverage 0.00 0.00 116.02 n.a
Additional Ratios
Assets to Sales 1.04 0.56 0.62 n.a
Current Debt/Total Assets 31% 5% 17% n.a
Acid Test 0.38 2.57 1.31 n.a
Sales/Net Worth 1.40 1.87 1.93 n.a
Dividend Payout 0.00 0.00 0.00 n.a


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
CHILDassure soap (day care) 45% $1,250 $1,813 $2,628 $3,811 $5,526 $8,012 $11,618 $16,846 $24,426 $35,418 $51,356 $74,466
HEALTHassure/FOODassure 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $1,250 $1,813 $2,628 $3,811 $5,526 $8,012 $11,618 $16,846 $24,426 $35,418 $51,356 $74,466
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
CHILDassure soap (day care) 40% $500 $725 $1,051 $1,524 $2,210 $3,205 $4,647 $6,738 $9,770 $14,167 $20,542 $29,786
HEALTHassure/FOODassure $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $500 $725 $1,051 $1,524 $2,210 $3,205 $4,647 $6,738 $9,770 $14,167 $20,542 $29,786
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
Devon Nevius 0% $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Kevin Meinert 0% $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Inventory Manager 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Associate 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Research and Development 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 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800

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 $1,250 $1,813 $2,628 $3,811 $5,526 $8,012 $11,618 $16,846 $24,426 $35,418 $51,356 $74,466
Direct Cost of Sales $500 $725 $1,051 $1,524 $2,210 $3,205 $4,647 $6,738 $9,770 $14,167 $20,542 $29,786
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $500 $725 $1,051 $1,524 $2,210 $3,205 $4,647 $6,738 $9,770 $14,167 $20,542 $29,786
Gross Margin $750 $1,088 $1,577 $2,286 $3,315 $4,807 $6,971 $10,107 $14,656 $21,251 $30,814 $44,680
Gross Margin % 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00%
Payroll $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Telecommunications $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Travel $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Warehousing 15% $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Other General and Administrative Expenses $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Total Operating Expenses $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750
Profit Before Interest and Taxes ($6,000) ($5,663) ($5,173) ($4,464) ($3,435) ($1,943) $221 $3,357 $7,906 $14,501 $24,064 $37,930
EBITDA ($6,000) ($5,663) ($5,173) ($4,464) ($3,435) ($1,943) $221 $3,357 $7,906 $14,501 $24,064 $37,930
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($1,800) ($1,699) ($1,552) ($1,339) ($1,030) ($583) $66 $1,007 $2,372 $4,350 $7,219 $11,379
Net Profit ($4,200) ($3,964) ($3,621) ($3,124) ($2,404) ($1,360) $154 $2,350 $5,534 $10,150 $16,844 $26,551
Net Profit/Sales -336.00% -218.69% -137.79% -81.99% -43.51% -16.97% 1.33% 13.95% 22.66% 28.66% 32.80% 35.65%

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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash from Receivables $0 $667 $1,550 $2,248 $3,259 $4,725 $6,852 $9,935 $14,406 $20,889 $30,288 $43,918
Subtotal Cash from Operations $0 $667 $1,550 $2,248 $3,259 $4,725 $6,852 $9,935 $14,406 $20,889 $30,288 $43,918
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 $0 $667 $1,550 $2,248 $3,259 $4,725 $6,852 $9,935 $14,406 $20,889 $30,288 $43,918
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Bill Payments $5 $153 $256 $405 $621 $935 $1,389 $2,048 $3,651 $24,251 $38,626 $56,042
Subtotal Spent on Operations $4,805 $4,953 $5,056 $5,205 $5,421 $5,735 $6,189 $6,848 $8,451 $29,051 $43,426 $60,842
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $4,805 $4,953 $5,056 $5,205 $5,421 $5,735 $6,189 $6,848 $8,451 $29,051 $43,426 $60,842
Net Cash Flow ($4,805) ($4,287) ($3,506) ($2,958) ($2,162) ($1,009) $663 $3,088 $5,955 ($8,162) ($13,138) ($16,923)
Cash Balance $71,895 $67,608 $64,102 $61,144 $58,982 $57,973 $58,636 $61,723 $67,678 $59,516 $46,378 $29,455
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 $76,700 $71,895 $67,608 $64,102 $61,144 $58,982 $57,973 $58,636 $61,723 $67,678 $59,516 $46,378 $29,455
Accounts Receivable $0 $1,250 $2,396 $3,474 $5,037 $7,304 $10,591 $15,357 $22,267 $32,287 $46,817 $67,884 $98,432
Inventory $50,000 $49,500 $48,775 $47,724 $46,199 $43,989 $40,784 $36,137 $29,399 $39,082 $56,669 $82,169 $119,146
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $126,700 $122,645 $118,779 $115,300 $112,381 $110,275 $109,348 $110,130 $113,390 $139,047 $163,001 $196,432 $247,032
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 $126,700 $122,645 $118,779 $115,300 $112,381 $110,275 $109,348 $110,130 $113,390 $139,047 $163,001 $196,432 $247,032
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 $145 $243 $385 $591 $889 $1,322 $1,949 $2,859 $22,982 $36,786 $53,372 $77,422
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 $145 $243 $385 $591 $889 $1,322 $1,949 $2,859 $22,982 $36,786 $53,372 $77,422
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $145 $243 $385 $591 $889 $1,322 $1,949 $2,859 $22,982 $36,786 $53,372 $77,422
Paid-in Capital $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000
Retained Earnings ($123,300) ($123,300) ($123,300) ($123,300) ($123,300) ($123,300) ($123,300) ($123,300) ($123,300) ($123,300) ($123,300) ($123,300) ($123,300)
Earnings $0 ($4,200) ($8,164) ($11,785) ($14,909) ($17,314) ($18,674) ($18,519) ($16,169) ($10,635) ($485) $16,360 $42,911
Total Capital $126,700 $122,500 $118,536 $114,915 $111,791 $109,386 $108,026 $108,181 $110,531 $116,065 $126,215 $143,060 $169,611
Total Liabilities and Capital $126,700 $122,645 $118,779 $115,300 $112,381 $110,275 $109,348 $110,130 $113,390 $139,047 $163,001 $196,432 $247,032
Net Worth $126,700 $122,500 $118,536 $114,915 $111,791 $109,386 $108,026 $108,181 $110,531 $116,065 $126,215 $143,060 $169,611