CONFIDENTIALUniversity Cycle WorksBusiness PlanPrepared April 2012Contact InformationJosh Cochrane joshpcochrane@abc.comTable of ContentsExecutive Summary .....................................................................................................................1 Who We Are..........................................................................................................................1 What We Sell ........................................................................................................................1 Who We Sell To ...................................................................................................................2 Financial History .................................................................................................................2 Company Chapter ........................................................................................................................3 Company Overview ............................................................................................................3 Management Team..............................................................................................................3 Products and Services .................................................................................................................5 Products and Services .........................................................................................................5 Competitors ..........................................................................................................................6 Target Market ...............................................................................................................................8 Market Review .....................................................................................................................8 Market Needs .......................................................................................................................8 Key Customers .....................................................................................................................8 Market Trends......................................................................................................................9 Market Growth ..................................................................................................................10 Strategy and Implementation..................................................................................................11 Marketing Plan ..................................................................................................................11 Milestones...........................................................................................................................13i CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.Table of ContentsCompetitive Edge ..............................................................................................................13 Strategic Alliances .............................................................................................................14 Financial Plan .............................................................................................................................15 Personnel Plan....................................................................................................................15 Sales Forecast......................................................................................................................16 Budget ..................................................................................................................................19 Cash Flow Assumptions...................................................................................................21 Loans and Investments.....................................................................................................22 Projected Profit and Loss Statement ..............................................................................23 Projected Balance Sheet ...................................................................................................26 Projected Cash Flow Statement ......................................................................................27 Appendix .....................................................................................................................................30 Monthly Financial Details ...............................................................................................30ii CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksExecutive SummaryWho We AreUniversityCycleWorksisanestablishedbicyclespecialtystore,offeringretailsalesof nesandaccessories,clothing,andmaintenanceandrepairservice.Itis locatedinaheavilytityfocusedarea. UniversityCycleWorksisasubchapterScorporation,andiscurrentlyownertWheeler,currentassistantmanagerofUniversityCycleWorks,is purchasingUniversityCyclbar,acquiringexistinginventory,and assumingoutstandingaccountspayableanddatingproguppliers, locationlease,customerbaseandinformation,andUniversityCycleWorksbusinessill.ThebusinesswillcontinuetobeasubchapterScorporation. Exchangeofownershipwillr. WheelerhasbeentheassistantmanagerofUniversityCycleWorksforfiveyears,with anasofbicycleindustryretailsalesandserviceexperience.Hefirst beganinvestigatingtheoinesstwoyearsago,however,thelocal Metroburgmarketseemedsaturatedwithshops.Realiziical optionwouldbetobuyanexistingshop,heapproachedhiscurrentboss.TheresultoflbethesaleofUniversityCycleWorkstoWheeler,taking effectJuly1st.Thegoalwillbeip,withstaff,bikelines, location,andoperationsunchanged.What We SellBicycles.Wesellnewbicycles,predominantlyinthemountainbikestyle,retrocruiser isat/touring/racingroadbikesadistantthird.Wealsosellsome usedbikeswhichwetakeinonmerswhoarebuying newbikes. Accessories.Weofferawidevarietyofaccessories.Locks,coers, fenders,cargoracks,comfortableseats,headlights,helmets,waterbottles,1 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle Workspanniers/backpacks/messengerbags,childseatsandtrailers,bikestorageracks,and autorosallfallinthiscategory. Clothing.Werotateourclothingbasedontheseason.ForexampleketsandGoreTex.InWinter,weofferhelmetcoversandliners,insulated jerseysandpants,.IntheSpring,westartdisplayingsummer jerseys,andracingshorts Parts.Partsgenerallyaterialsnecessarytothebasicfunctioningof thebicycle.Generally,partsareinstalleddureanadditionalcharge beyondtheservicefees.Who We Sell ToTheprimarymarketforUniversityCycleWorksistheuniversitystudentpopulation, whichnorer/growthofapproximately25%eachyear.The secondarymarketistheuniversityfacultyandarymarketisthe greaterMetroburgcommunity.Financial SummaryThisfinancialplanwasdevelopedbaseduponpreviousyearsdatafortheexisting store,traesandexpenses.Afivemonthtrackofsales,accounts receivablesandpayables,andinventorarkwasmade.The currentowner,HanDelbar,hassoldthebusinesstoHubertWheelerfor$140,andtheaccountantworkedtogetherontheplantobalanceoptimismwith reality.Anattorneficsofthesalecontract. Salesforthefirstyearofnewownershipareprojectedabove$500,nofalmost65%.Profitabilityisexpectedatthemidwaypointofthefiscalyear, inMarch.2 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksCompanyCompany OverviewUniversityCycleWorksisasubchapterScorporation,andiscurrentlyownedbyHan Delbar.HntassistantmanagerofUniversityCycleWorks,is purchasingUniversityCycleWorksfromDelxistinginventory,and assumingoutstandingaccountspayableanddatingprogramdebtstosupptionlease,customerbaseandinformation,andUniversityCycleWorksbusiness nameandgoodillcontinuetobeasubchapterScorporation. ExchangeofownershipwilloccuronJuly1st. teaccountingofexistinginventoryandoutstandingdebts,the prioryearsclosinginventoryialstatementasreviewedbythe businessCPAwereusedasbenchmarks.Thesales,ordersplaed, andaccountspayablepaymentsmadehavebeentrackedeachmonth,andatrial balanceofablishthefinalpurchasepriceforinventoryon hand,andtheamountofAccountsPayableassentedhereare conservative,realisticestimatesusedforplanningpurposes.Management TeamThecurrentassistantmanager,HubertWheeler,isbuyingUniversityCycleWorks,and willman.HehasaB.S.degreeinEconomicsandanM.A.in ComparativeLiterature.Hispassionhoweveeoriginally workedathislocalbikeshopwhenhewasincollege.Afterseveralyearstryingegreefield,hegaveupchasingthechimeraofthesefieldsand decidedtoworkwithsomethinnedtohisyouthfulenjoymentof bicycles. HeattendedtwoofthemajorbicyclemechanictraiwEngland BicycleAcademyandtheUnitedBicycleInstitute.Thesecoursescoveredmechanicalntenance,framebuildingandrepair,wheelbuilding,andshop3 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle Worksorganization,sales,andmanagement.Hehas12yearsofprogressivelyresponsible experiencepswiththelastfiveatUniversityCycleWorks. Oneoftheotherfulltimeemployees,Valerierestinlearning moreaboutthebikeindustryandshewillbepromotedtobethenewassistanorthreeyears.ShegraduatedfromStateUniversityat MetroburgwithtandemB.S.degreesinyandRecreation Management.Shelovestocycle,andhaskepthercontactsattheuniversityndexpertisedrawsmanywomenbicycliststoourstorewheretheyknow theywillgetthecarelymissingfromtraditionallymale staffedshops. Thecurrentowner,HanDelbarwillbeavail. Additionalresourcesare: OrderOutofChaos,ourfullcyclebookkeepingservice. Continnk. NewtRia,apartneratWeasel,Stoat,Muskratwhoadvisedonthesale/purchase arrangem4 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksProducts and ServicesProducts and ServicesRetailSales 1. Bicycles.Wesellnewbicycles,predominantlyinthemountainbikestyle,retrosesecond,andsport/touring/racingroadbikesadistantthird.We alsosellsomeusedbikessaservicetoourcustomers whoarebuyingnewbikes. 2. Accessories.Weofferawidevariets,computer speedometers,fenders,cargoracks,comfortableseats,headlights,helmets,waters,panniers/backpacks/messengerbags,childseatsandtrailers,bike storageracks,andautomsallfallinthiscategory.Itisnotpossible tocarryeverypossibleaccessory,sowetryhwillbe mostusefulordesiredbyourtargetmarkets.Whenwereceivespecialrequests foreraltotestthelocaldemand,andif adequate,willaddittoourregularstock. 3. Clothinglcyclists,whetheritisalogoemblazonedTshirt orapieceofwaterproofrainwear.AtUniteour clothingbasedontheseason.Justbeforetheautumnrainswestockjacketsand Goreetcoversandliners,insulatedjerseysand pants,gloves,andshoecovers.Andwhenspringacus appearsthroughthemeltingsnow,westartdisplayingsummerjerseys,and racingshorts.tsgenerallyreferstopiecesormaterialsnecessarytothebasic functioningofthebicycle.einstalledduringservice[see below]andareanadditionalchargebeyondtheservicefees.s,pedals,tires,derailleursorbrakes,arebothintegralpartsandupgrade accessories.Othets,bottombrackets,spokes,chains,cables,and cablehousingsarestrictlymaintenance,thesoldtocyclistswho prefertoworkontheirbikesthemselves. 5 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksService UniversityCycleWorksisafullservicespecializedbicycleshop.Ourserviceofferinutisnotlimitedto: Free30day/100miletuneupwitheverynewbikesold. Quickrepairs,brakecables,etc. Scheduledtuneups,replacementofallbearingsurfaces,repackingofljustmentsofderailleursandbrakesystems. Installationofallaccessories. Authorizedwaairsonthebikes. Customwheelbuilding. FramesetrepairsbyoutsourcingtoViaPorcocus.CompetitorsSettingasidethediscountdepartmentstores,UniversityCycleWorkshasthefollowing direct. Onelocalmultisportstoreatthelocalmegamall Onestatewidechainofbicycleshopswnonlyshops, buthashadtotakeonotherbrandsandproducts. Oneusedbikestorethathanforitself,dealing strictlyinusedbikes. Threelocal,includingtheoldestshopintowationchain,thathasspecializedinopeningshopsinsmall localmallsinareasofnewhousiralgaragemechanicsofferingserviceonly. Noneofthesecompetitorsiswithintwomilesofto,forthepresent, wehavefirstaccesstoourchosenmarketsegments.Oneofthelocalshop6 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle Workstotargettheburgeoningyoungroadracersegment,anotherisfocusingonrecumbents andfold ThetwostrongestcompetitorsaretheOldestShopinTownwhichcarriesthecacheof beingtlknownaMetroburginstitution.TheMountain BikeSpecialisttargetsthesameathletic,yageconsciousrider thatwetargetintheuniversitystudentpopulation.Thesecyclistsarepheirbikeandwillgowherethenamebrandtheywantissold,orwilltryeverybike andthensofstoreloyalty.7 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksTarget MarketMarket OverviewThepredominantmarketsegmentforUniversityCycleWorksistheuniversitystudent populatiootheuniversitystaff,localbusinessemployees,and,along witheveryotherbicycleshopinroburgpopulation. Inpartthelocalmarketisdrivenbythelackofparking.Bicycletransporomical,aswellastimeandspaceefficientintheuniversityneighborhood.Partof themarkendanotherpartishookedonthelatestfad,beitframe style,numberofgears,orportrayedriveeachyear, ourmarketsegmentgrowthisassured.Market NeedsOurmarketnichehasseveralneedswhichwestrivetomeet: Qualitybikesatseveralpricepsandsizesofbikes,leaningheavilytowardthestylesmostpopular withthestudentpopulatoriesmostpracticalinthelocalsetting,suchaslocks,fenders, lights,tires,seats,rainyofreplacementcomponentsandserviceparts. Friendlypersonalrelationshipsbetweencyclitaff. Promptandconvenientservicefromonthespotflattirefix,todropinrepairs,to nce,wheretheridercandroptheirbikeoff,headto classorwork,andbeassuredthatthei.Key CustomersTheuniversitystudentsareourmaintargetmarket.8 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle Works1. Theyaremostlyundergraduates,sothereisa25%annualturnover. 2. Thelackofparkingiaandthegeneraleaseofbikemobility throughoutMetroburgmotivatesthemtousebicyclesaort. Athleticpursuitsdrawthem,andthenearbyareasforuseofmountainandtrail bikespe. 3. ThereisanewenthusiasmforretroCruiserbikes,andhighertechcruiserstyle bikesoodbrakes,etc.amongthecollegeagepopulation. 4. Also,mainmarketforracks,locks,thror/bags,fenders,rainwear, etc. 5. Theywantconvenienceforsalesandservice. Universityemsareanotherprimemarketsegment. 1. 2. 3. 4. Smallgrowthandturnover,butonthewhole,ttable. Arewillingtocommutebybicycletowork. Theywantastable,comfortablebikeandafes. Whentheirbikesneedserviceandmaintenance,localdropoff/pickup convenienceisimporheyhavefamilieswhoridebicyclesalso,andwillpatronizeashopthatgives personalserviurgpopulation. Thissegmenthasachoiceofgoingtoanybikeshopinthearea,andwillprobosertotheirhome.Theyarenotthemaintargetmarket segmentofUniversityCycleWorks,an,onlyasa collateraleffecttoouruniversityorientedefforts.Market TrendsTrendsinthebicycleindustryusuallylastforatime.Someofthemhavebeen: 1960sBigesbecamepopular. 1980sand1990sHugegrowthofmountainbikes9 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle Works 1990sTherumoredbutexaggerateddeathofroadbikesandtheunfulfilled prophesyofalarityofretrocruisers.Market GrowthThebulkofUniversityCycleWorksmarketgrowthistheregularmatriculationof studentsfryinMetroburg.Whiletheoverallmarketnumbers changeinsmallincrements,usuallylesstharnoverof2226% yearly.Inalongertimeframethenumberofstudentsandthenumberofunivrinkswitheconomicchanges,andwithpopulation demographics. Forthenextthreeyearswefowthintheoveralluniversitypopulation aswellascontinuedgrowthofMetroburgasadesira10 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksStrategy and ImplementationMarketing PlanOverviewOurmarketingstrategyseekstooptimizeouradvantageofprimelocation.Wewantthe universeusastheirbikeshop,evenournamesaysso,University CycleWorks.Wewantthemtoseeundashopthey candependonforquickrepairandmaintenanceservice.PositioningWeareUniversityCycleWorks,andwearepassionateaboutbicycles.PricingRetail Pricingofbicyclesisverytightwithamarkupofbetween30%and40%depending uponoplebelievethatbicyclesarepricedlike automobilesandareopenfornegotiation,andmakefers.Theshops havelittleleewayhere. Partsandaccessoriesaregenerallykeystonepriced.scostmorein handlingandsalesthantheydotobuyfromsuppliers.Thesecanbedoubleandstomerswontbuythemiftheydonthaveaminimumperceived value.Ontheplusside,thesealeofabike. Whennewtechnologyarrivesinbicycles,andifthesupplyislimited,almostiswasthecaseinthemid1990swhenRockShoxintroduced suspensionforksformountainbikesateverwasaskedjust togetthoseforks.Ofcourse,inthistypeofsituationtheprice,boters.11 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksOtheraccessories,suchasstepinpedals,pannierracks,helmets,orheadlightsare sometimeedbythemanufacturers.Whilethisdrivesdemandand bringspeopleintotheshoptogetthesufacturersretailprice maylimitmarkup. Themarkuponclothes,shoes,jackets,glovescanotriplekeystone, dependinguponproduct,manufacturer,countryoforigin,andcustomerpercue.PearlIzumiandBurleyDesignrainwearcandemandpremiumpricesastopof thelinegarmousstudentscanonlyafforda$35nylon windbreaker.Ithasbeenandalwayswillbeademandck garmentsatthevariouspricepoints. Service WetrytomaintainabasicHourlyshopratepairsarethen pricedbaseduponanaveragetimeforcompletion.Somerepairs,suchasaflatmerperceptionofdifficulty.Examples: FlatTire$7.50 InstallFenders$10.00 Bra0 Overhaul$100.00 Allpartsusedinrepairsarepricedatkeystone,andaddedtothelabralotherbicycleshopsinthecity,therearesomepriceconstraintsbasedon competition.Cnbalancepriceceilingsbydrawingincustomers.PromotionOurmarketingprogramsarelocallyfocused,wherewecaneffectourmaintarget market.12 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksBacktoschoolspecials,atthebeginningofeachterm,includingperhapsafree Kryptonitelse.Wewilltrytohaveaspecialpurchaseofan economyvaluebikeforeachterm. Springspeebeginningofspringterm,butwewilldirect someofouradvertisingatthewiderpopulationdtune uptheirbikes. Coupons.Onceeveryothermonthwewillrunacouponforaservicespspaper,theDailyHyperbole.Wealsorunthiscouponasabanneradin theDailyHyperboleOnntsitewillalsoserveasamarketingmedium.Weoffer downloadablemapsofthecitybikeroecityarea,give informationaboutthestore,andannouncesales.Webelievethatcyclistswsoursiteforthevaluableinformationwewillprovide,andthiswillreinforcetheir ofawaleWorks,andwewillbecometheirbikeshopofchoice. Printadvertising.Inadditiontoourl3columninchad appearingonarecurringscheduleintheDailyHyperbole.ToboostcitywidecialswewillalsorunslightlylargeradsintheMetroburgBombast Obfuscatorduringthewe.Competitive EdgeTheforemostcompetitiveadvantageofUniversityCycleWorksisouruniversity location.Theer100yearsoldandasithasgrown,Metroburghasgrown aroundit.Parkingisalmostnonexingpermitormeter controlled,andlocalstreetsfilledtocapacitywiththevehiclesofresinobviousandpopulartransportationsolution. Ourlocation,inthefirstblockoffcampusinaturingtheuniversity bookstore,aprivatebookstore,bank,cafes,coffeeshopsandpopulars ideal.Wegetconstant,dailyvisualexposure.Studentsandstaffthrongthesidewalk outspthebenefits.Ournearestcompetitorisalmostamile13 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle Worksaway.Forthestudentcustomer,onfoot,inahurry,UniversityCycleWorksisthe immediate Afterthatfirstparkingticket,wearethefirstbikeshopthenewpedestriansees.Weare nacyclistgetsaflattireonthewaytoclass.Thefirsttimea ridergetstoclasswithandarain jacket. Thenegotiationsofthepasttwoyearsalsobringstheadvantageofcontinuentswithmajorsuppliers.Thisisanadvantageoverastartupbicycleshop,but, ismoreaparedtootherestablishedshopin Metroburg.Traditionallyastartupstorewillbeplacedostatusbybicyclemanufacturersandparts/accessoriessuppliers.TheCODstatusstays ineffehopdemonstratesitsabilitytomanageitsordersandcashflow. Thisalsomeansthenewshopletowritechecksona momentsnotice,forlargeamounts. UniversityCycleWorkswillbeconedsystemofdatingprograms, ordering,delivery,andinvoicing/accountspayable,stabilizingngneedsand monthlycashflow.Strategic Alliances Bicyclemanufacturerscontinuationofdatingprogramsandfinancial agreements. Accessotinuationoffinancialagreements. MetroburgParksDept.wesponsorprintedmapofcitybirwebsite. UniversitySecurityOfficemaintenance,supplyservicecontractforcycle secuhunkItwebsitedesignandmaintenance,searchengineplacement.14 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksFinancial PlanSales ForecastSales Forecast TableFY2013 SalesNew Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $116,000 $150,000 $68,000 $166,000 $1,200 $133,400 $172,500 $78,200 $190,900 $1,380 $153,410 $198,375 $89,930 $219,535 $1,587FY2014FY2015Total Sales Direct CostNew Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract$501,200$576,380$662,837$78,880 $75,000 $23,800 $0 $0$90,712 $86,250 $27,370 $0 $0$104,319 $99,187 $31,475 $0 $0Total Direct Cost Gross MarginGross Margin %$177,680 $323,52065%$204,332 $372,04865%$234,981 $427,85665%15 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksSales by MonthAbout the Sales ForecastSalesvaryseasontoseasonandwiththeacademicschoolyear.Surprisingly,summeris theslherearefewerstudentsintown.Businesspicksupin Augustwiththereturnofthestudentseptember. Accessoriesandrainwearsalesincreaseintheautumnandearlywinter.Repairsandesteady.Holidaysalesarebrisk,thoughgenerallyleaningagainto accessories,parts,rainlmets,headlights,etc.Wintersalesaremoderate, andthenpickupinspringtimeaspeoplepokforwardtolocal outdooractivities,longerdaylighthours,anddrierweather. Wehavethrmotionseachyear. 1. BacktoschoolinAugust/September.Thisisourbiggestsaleoftheyeas,helmets,racks,fenders,backpacks.Wealwayssearchforaspecial purchaseofgoodqualitkesforthissalesuchasyearend models,slowsellers,newlinelookstobreakintothemarwayssellouttostudentsseekinggreatvalues.16 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle Works2. Yearendholidays.ThisalsooverlapsthebeginningofWinterterm.Theretail marketdemationinthisannualbuyingfrenzy,yet,thissale produceslowerrevenuethanourothertwoe,and moreaccessoriesandclothing. 3. Spring.Thiscoincideswithboththereturnofnicewingof Springterm.Wefeaturenewbicycles,andrepair/maintenance/tuneupspecials. Itiseagoodselectiononhandatthistime.Whenpeople decidetheywantthatnewbike,theywanndmakethesaleimmediately,manyriderswilldecidethattheyreallycanget anotherseasonllspendtheirdiscretionaryincomeon someotherpurchase. Additionally,wehavesomespecialeforJunegraduation. Wegetsomesmallmonthlyrevenuefromthesesources: Saleofusedbe. RepairclassestaughtattheUniversityOutdoorCenter,onceaterm. MonthlyservicecondpartswiththeUniversitySecurity Office.Personnel PlanPersonnel TableFY2013Hubert Wheeler Valerie Pede Dee Ray JeanBaptiste Kape Parttime Employees $34,800 $27,000 $23,400 $19,800 $18,900FY2014$36,540 $28,350 $24,570 $20,790 $25,200FY2015$60,000 $30,000 $25,799 $21,830 $25,200Total$123,900$135,450$162,82917 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksAbout the Personnel PlanThestaffwillconsistofHubertWheeler,thenewowner,ValeriePede,andtwoother fulltimnBaptisteKape. Tomeettheneedforadditionalhelpduringtheyear,UniversityCycleWorksmeemployeesfromtheuniversitypopulation.Welookforpeoplewho areenthusiasticaboutcychanicalaptitude.Someofthesefolks haveworkedforusthroughouttheirentirecollegesojrydepending onthestoresneedsandtheirclassschedules.BudgetBudget TableFY2013 ExpensesSalary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300 $135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0 $162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0FY2014FY2015Total Expenses Major PurchasesLongterm asset$290,659$294,634$332,183$1,200$0$0Total Major Purchases$1,200$0$018 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksExpenses by MonthAbout the BudgetOursalarytotals,employeebenefitsandmonthlyexpenseprojectionsareincludedin theBudgasmadetothelandlordasasecurityduringthetransferof thebusinesstothenewowner,ireement.If,atthe endofthefirstyear,thebusinessisstillsolvent,thedepositwillbeent.Startup CostsOurestimatedstartingexpensestotal$13,300.Theyinclude,legalandaccountingcosts totripofthebusiness,stationery,etc.,promotionalmaterials,insurance, andthedownpaymentseofthebusiness.19 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksCash Flow AssumptionsCash Flow AssumptionsCash Inflow% of Sales on Credit 0%Cash Outflow% of Purchases on Credit Avg Payment Delay (Days) 100% 45InventoryMonths to Keep on Hand Minimum Inventory Purchase 1 $1,000About the Cash Flow AssumptionsWehaveaccountspayablesetat45days.Wealsokeepapproximatelyonemonths worthofinverchaseof$1,000,onaverage.Wehada startinginventorybalanceforthisplanat$17,000frch carriedforwardwiththebusinesstransfer. Wedonotselloncredit.20 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksLoans and InvestmentsLoans and Investments TableFY2013Family investment (interest free) Financing at 0% interest Current Borrowing Financing at 10% interest Business purchase price Loan at 7% interest for 72 mos. $10,000 $2,000 $130,000FY2014$0 $0 $0FY2015$0 $0 $0Total Amount Received$142,000$0$0Sources of FundsThecurrentowner,HanDelbar,hassoldthebusinesstoHubertWheelerfor $140,000.Thevaluy,itsreputation,assumptionofthebusiness name,existingclientbase,etc.isrecognizede.Itappearsasa startupexpenseinthefollowingtableasDownPayment.Thebalanceappeaheelerisinvestingsomeofhisownmoney,partiallyahomeequityloan,inthe company.Anavested,asshortterminterestfreeloans,by familymembers.Thisplancallsfortheseloansr.21 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksUse of FundsProjected Profit and Loss StatementProjected Profit and Loss StatementFY2013 Income Direct Cost Gross MarginGross Margin %FY2014 $576,380 $204,332 $372,04865%FY2015 $662,837 $234,981 $427,85665%$501,200 $177,680 $323,52065%ExpensesSalary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300 $135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0 $162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0Total Expenses Operating IncomeInterest Incurred Depreciation and Amortization Income Taxes$290,659 $32,861$7,966 $12,320 $3,144$294,634 $77,414$7,354 $12,540 $14,380$332,183 $95,673$5,942 $12,540 $19,298Net Profit Net Profit/Sales$9,431 2%$43,140 7%$57,893 9%22 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksGross Margin by YearNet Profit (or Loss) by Year23 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksAbout the Projected Profit and Loss StatementInnegotiatingthesmoothtransitioninownership,thelandlordagreedtocontinuethe currend.Assurety,onemonthsrentwasrequiredasadepositatthe timeofsale.Thisisshownielandlordagreedthatif, after11monthsoperationthenewcompanywassolventandcurrenthedepositcouldbeappliedtothetwelfthmonthsrent. ThemidsummermonthsofJulyandAugartofthe universitypopulationisgoneonsummerbreak.Themidwintermonthsare traditioeatheristhemostinclementanddiscretionaryincome isatitslowestaftertheholidaybingpourentirestaffon boardtoworkonourowninventory,storerefurbishing,andstafftrain24 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksProjected Balance SheetProjected Balance SheetAs of Period's EndCash Accounts Receivable InventoryStarting Balances$0 $0 $17,000FY2013$142,440 $0 $17,026FY2014$183,550 $0 $19,580FY2015$233,747 $0 $19,583Total Current AssetsLongTerm Assets Accumulated Depreciation$17,000$61,500 $0$159,466$62,700 ($12,320)$203,130$62,700 ($24,860)$253,330$62,700 ($37,400)Total LongTerm Assets Total AssetsAccounts Payable Sales Taxes Payable ShortTerm Debt$61,500 $78,500$27,800 $0 $0$50,380 $209,846$36,025 $0 $200$37,840 $240,970$43,467 $0 $0$25,300 $278,630$43,884 $0 $0Total Current LiabilitiesLongTerm Debt$27,800$0$36,225$113,490$43,467$94,232$43,884$73,582Total LiabilitiesPaidIn Capital Retained Earnings Earnings$27,800$25,000 $0 $0$149,715$25,000 $0 $9,431$137,699$25,000 $9,431 $43,140$117,466$25,000 $52,571 $57,893Total Owner's Equity Total Liabilities & Equity$25,000$34,431$77,571$135,464$52,800$184,146$215,270$252,93025 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksAbout the Projected Balance SheetOurgoalistorepaytheloansfromourfamilywithinthefirstyear,andweproject payingHicewithinfiveyears.Otherbalancesheet informationisshowninthetable.Projected Cash Flow StatementProjected Cash Flow StatementFY2013 OperationsNet Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable $9,431 $12,320 $0 ($26) $8,225 $0 $43,140 $12,540 $0 ($2,554) $7,442 $0 $57,893 $12,540 $0 ($3) $417 $0FY2014FY2015Net Cash Flow from Operations Investing & FinancingAssets Purchased Investments Received Increase in ShortTerm Debt Increase in LongTerm Debt$29,950$60,568$70,847($1,200) $0 $200 $113,490$0 $0 ($200) ($19,258)$0 $0 $0 ($20,650)Net Cash Flow from Investing & FinancingCash at Beginning of Period Net Increase in Cash$112,490$0 $142,440($19,458)$142,440 $41,110($20,650)$183,550 $50,197Cash at End of Period$142,440$183,550$233,74726 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksProjected Cash Flow by MonthProjected Cash Flow by Year27 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksAbout the Projected Cash Flow StatementThecashflowreflectstheseasonalityofbicyclesalesandthevaryingpayment programs.Atnventoryheavy,stockingupforthebeginningof schoolrush,orspecificsales.Atothertimshflowaslongterm accountspayable,net90,net60paymentscoincidewithregularnet30i28 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksStarting BalancesSalesSales Last Month Sales 2 Months Ago Sales 3 Months Ago Sales 4 Months Ago Sales 5 Months Ago Sales 6 Months Ago $0 $0 $0 $0 $0 $0ExpensesExpenses Last Month Expenses 2 Months Ago Expenses 3 Months Ago Expenses 4 Months Ago Expenses 5 Months Ago Expenses 6 Months Ago $0 $0 $0 $0 $0 $0AssetsCash Accounts Receivable Inventory LongTerm Assets Accumulated Depreciation $0 $0 $17,000 $61,500 $0LiabilitiesAccounts Payable Sales Taxes Payable $27,800 $0CapitalPaidIn Capital $25,00029 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksRetained Earnings$030 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksAppendixMonthly Financial DetailsSales Forecast Table (With Monthly Detail)FY2013 SalesNew Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $9,500 $11,000 $3,500 $11,000 $14,000 $17,500 $3,500 $11,000 $14,000 $16,000 $4,500 $13,000 $9,500 $11,000 $6,500 $14,000 $6,500 $10,000 $10,500 $12,000 $10,000 $15,000 $7,500 $11,000 $7,500 $9,500 $4,500 $12,000 $6,500 $8,000 $3,500 $14,000 $8,000 $13,000 $4,500 $16,000 $9,500 $15,000 $6,500 $18,000 $11,000 $11,000 $7,500 $18,000 $10,000 $13,000 $5,500 $16,000Jul '12Aug '12Sep '12Oct '12Nov '12Dec '12Jan '13Feb '13Mar '13Apr '13May '13Jun '13$100$100$100$100$100$100$100$100$100$100$100$100Total Sales Direct CostNew Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract$35,100$46,100$47,600$41,100$39,100$43,600$33,600$32,100$41,600$49,100$47,600$44,600$6,460 $5,500 $1,225 $0$9,520 $8,750 $1,225 $0$9,520 $8,000 $1,575 $0$6,460 $5,500 $2,275 $0$4,420 $5,000 $3,675 $0$6,800 $7,500 $2,625 $0$5,100 $4,750 $1,575 $0$4,420 $4,000 $1,225 $0$5,440 $6,500 $1,575 $0$6,460 $7,500 $2,275 $0$7,480 $5,500 $2,625 $0$6,800 $6,500 $1,925 $0$0$0$0$0$0$0$0$0$0$0$0$0Total Direct Cost$13,185$19,495$19,095$14,235$13,095$16,925$11,425$9,645$13,515$16,235$15,605$15,22531 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksGross MarginGross Margin %$21,91562%$26,60558%$28,50560%$26,86565%$26,00567%$26,67561%$22,17566%$22,45570%$28,08568%$32,86567%$31,99567%$29,37566%FY2013 SalesNew Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $116,000 $150,000 $68,000 $166,000 $1,200FY2014FY2015$133,400 $172,500 $78,200 $190,900 $1,380$153,410 $198,375 $89,930 $219,535 $1,587Total Sales Direct CostNew Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract$501,200$576,380$662,837$78,880 $75,000 $23,800 $0 $0$90,712 $86,250 $27,370 $0 $0$104,319 $99,187 $31,475 $0 $0Total Direct Cost Gross MarginGross Margin %$177,680 $323,52065%$204,332 $372,04865%$234,981 $427,85665%32 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksPersonnel Table (With Monthly Detail)FY2013Hubert Wheeler Valerie Pede Dee Ray JeanBaptiste Kape Parttime EmployeesJul '12$1,800 $2,250 $1,950 $1,650 $0Aug '12$3,000 $2,250 $1,950 $1,650 $700Sep '12$3,000 $2,250 $1,950 $1,650 $1,400Oct '12$3,000 $2,250 $1,950 $1,650 $2,100Nov '12$3,000 $2,250 $1,950 $1,650 $2,100Dec '12$3,000 $2,250 $1,950 $1,650 $2,100Jan '13$3,000 $2,250 $1,950 $1,650 $2,100Feb '13$3,000 $2,250 $1,950 $1,650 $2,100Mar '13$3,000 $2,250 $1,950 $1,650 $2,100Apr '13$3,000 $2,250 $1,950 $1,650 $2,100May '13$3,000 $2,250 $1,950 $1,650 $1,400Jun '13$3,000 $2,250 $1,950 $1,650 $700Total$7,650$9,550$10,250$10,950$10,950$10,950$10,950$10,950$10,950$10,950$10,250$9,550FY2013Hubert Wheeler Valerie Pede Dee Ray JeanBaptiste Kape Parttime Employees $34,800 $27,000 $23,400 $19,800 $18,900FY2014$36,540 $28,350 $24,570 $20,790 $25,200FY2015$60,000 $30,000 $25,799 $21,830 $25,200Total$123,900$135,450$162,82933 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksBudget Table (With Monthly Detail)FY2013 ExpensesSalary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $7,650 $9,550 $10,250 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,250 $9,550Jul '12Aug '12Sep '12Oct '12Nov '12Dec '12Jan '13Feb '13Mar '13Apr '13May '13Jun '13$1,914 $1,618 $8,000 $300 $150 $350 $13,300$2,389 $2,073 $8,000 $300 $150 $350 $0$2,564 $4,268 $8,000 $300 $150 $350 $0$2,739 $1,798 $8,000 $300 $150 $350 $0$2,739 $1,738 $8,000 $300 $150 $350 $0$2,739 $1,998 $8,000 $300 $150 $350 $0$2,739 $1,698 $8,000 $300 $150 $350 $0$2,739 $1,528 $8,000 $300 $150 $350 $0$2,739 $1,813 $8,000 $300 $150 $350 $0$2,739 $2,313 $8,000 $300 $150 $350 $0$2,564 $1,993 $8,000 $300 $150 $350 $0$2,389 $2,028 $0 $300 $150 $350 $0Total Expenses Major PurchasesLongterm asset$33,282$22,812$25,882$24,287$24,227$24,487$24,187$24,017$24,302$24,802$23,607$14,767$0$0$0$0$0$0$0$0$0$0$0$1,200Total Major Purchases$0$0$0$0$0$0$0$0$0$0$0$1,20034 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksFY2013 ExpensesSalary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300FY2014FY2015$135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0$162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0Total Expenses Major PurchasesLongterm asset$290,659$294,634$332,183$1,200$0$0Total Major Purchases$1,200$0$035 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksLoans and Investments Table (With Monthly Detail)FY2013Family investment (interest free) Financing at 0% interest Current Borrowing Financing at 10% interest Business purchase price Loan at 7% interest for 72 mos.Jul '12Aug '12Sep '12Oct '12Nov '12Dec '12Jan '13Feb '13Mar '13Apr '13May '13Jun '13$10,000$0$0$0$0$0$0$0$0$0$0$0$2,000$0$0$0$0$0$0$0$0$0$0$0$130,000$0$0$0$0$0$0$0$0$0$0$0Total Amount Received$142,000$0$0$0$0$0$0$0$0$0$0$0FY2013Family investment (interest free) Financing at 0% interest Current Borrowing Financing at 10% interest Business purchase price Loan at 7% interest for 72 mos. $10,000 $2,000 $130,000FY2014$0 $0 $0FY2015$0 $0 $0Total Amount Received$142,000$0$036 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksProjected Profit and Loss Statement (With Monthly Detail)FY2013 Income Direct Cost Gross MarginGross Margin %Jul '12 $35,100 $13,185 $21,91562%Aug '12 $46,100 $19,495 $26,60558%Sep '12 $47,600 $19,095 $28,50560%Oct '12 $41,100 $14,235 $26,86565%Nov '12 $39,100 $13,095 $26,00567%Dec '12 $43,600 $16,925 $26,67561%Jan '13 $33,600 $11,425 $22,17566%Feb '13 $32,100 $9,645 $22,45570%Mar '13 $41,600 $13,515 $28,08568%Apr '13 $49,100 $16,235 $32,86567%May '13 $47,600 $15,605 $31,99567%Jun '13 $44,600 $15,225 $29,37566%ExpensesSalary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $7,650 $9,550 $10,250 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,250 $9,550$1,914 $1,618 $8,000 $300 $150 $350 $13,300$2,389 $2,073 $8,000 $300 $150 $350 $0$2,564 $4,268 $8,000 $300 $150 $350 $0$2,739 $1,798 $8,000 $300 $150 $350 $0$2,739 $1,738 $8,000 $300 $150 $350 $0$2,739 $1,998 $8,000 $300 $150 $350 $0$2,739 $1,698 $8,000 $300 $150 $350 $0$2,739 $1,528 $8,000 $300 $150 $350 $0$2,739 $1,813 $8,000 $300 $150 $350 $0$2,739 $2,313 $8,000 $300 $150 $350 $0$2,564 $1,993 $8,000 $300 $150 $350 $0$2,389 $2,028 $0 $300 $150 $350 $0Total Expenses Operating IncomeInterest Incurred Depreciation and Amortization Income Taxes$33,282$22,812$25,882$24,287$24,227$24,487$24,187$24,017$24,302$24,802$23,607$14,767($11,367)$0 $1,025 $0$3,793$773 $1,025 $0$2,623$764 $1,025 $0$2,578$754 $1,025 $0$1,778$745 $1,025 $0$2,188$734 $1,025 $0($2,012)$724 $1,025 $0($1,562)$715 $1,025 $0$3,783$705 $1,025 $0$8,063$694 $1,025 $0$8,388$684 $1,025 $0$14,608$674 $1,045 $3,14437 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksNet Profit Net Profit/Sales($12,392) (35%)$1,995 4%$834 2%$799 2%$8 0%$429 1%($3,761) (11%)($3,302) (10%)$2,053 5%$6,344 13%$6,679 14%$9,745 22%38 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksFY2013 Income Direct Cost Gross MarginGross Margin %FY2014 $576,380 $204,332 $372,04865%FY2015 $662,837 $234,981 $427,85665%$501,200 $177,680 $323,52065%ExpensesSalary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300 $135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0 $162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0Total Expenses Operating IncomeInterest Incurred Depreciation and Amortization Income Taxes$290,659 $32,861$7,966 $12,320 $3,144$294,634 $77,414$7,354 $12,540 $14,380$332,183 $95,673$5,942 $12,540 $19,298Net Profit Net Profit/Sales$9,431 2%$43,140 7%$57,893 9%39 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksProjected Balance Sheet (With Monthly Detail)As of Period's EndCash Accounts Receivable InventoryStarting Balances$0 $0 $17,000Jul '12$151,706 $0 $19,495Aug '12$152,532 $0 $19,095Sep '12$153,407 $0 $14,235Oct '12$152,374 $0 $13,095Nov '12$145,149 $0 $16,925Dec '12$148,191 $0 $11,425Jan '13$144,414 $0 $9,645Feb '13$136,288 $0 $13,515Mar '13$135,178 $0 $16,235Apr '13$142,143 $0 $15,605May '13$145,971 $0 $15,225Jun '13$142,440 $0 $17,026Total Current AssetsLongTerm Assets Accumulated Depreciation$17,000$171,201$171,627$167,642$165,469$162,074$159,616$154,059$149,803$151,413$157,748$161,196$159,466$61,500 $0$61,500 ($1,025)$61,500 ($2,050)$61,500 ($3,075)$61,500 ($4,100)$61,500 ($5,125)$61,500 ($6,150)$61,500 ($7,175)$61,500 ($8,200)$61,500 ($9,225)$61,500 ($10,250)$61,500 ($11,275)$62,700 ($12,320)Total Long Term Assets Total AssetsAccounts Payable Sales Taxes Payable ShortTerm Debt$61,500 $78,500$60,475 $231,676$59,450 $231,077$58,425 $226,067$57,400 $222,869$56,375 $218,449$55,350 $214,966$54,325 $208,384$53,300 $203,103$52,275 $203,688$51,250 $208,998$50,225 $211,421$50,380 $209,846$27,800 $0 $0$51,518 $0 $11,850$50,532 $0 $11,700$46,304 $0 $11,550$44,932 $0 $10,400$43,637 $0 $8,750$43,867 $0 $6,100$43,697 $0 $4,950$43,377 $0 $4,800$43,577 $0 $4,650$44,220 $0 $4,500$44,150 $0 $1,850$36,025 $0 $200Total Current LiabilitiesLongTerm Debt$27,800$63,368$62,232$57,854$55,332$52,387$49,967$48,647$48,177$48,227$48,720$46,000$36,225$0$130,000$128,542$127,076$125,601$124,118$122,626$121,125$119,616$118,098$116,571$115,035$113,490Total LiabilitiesPaidIn Capital$27,800$25,000$193,368$25,000$190,774$25,000$184,930$25,000$180,933$25,000$176,505$25,000$172,593$25,000$169,772$25,000$167,793$25,000$166,325$25,000$165,291$25,000$161,035$25,000$149,715$25,00040 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksRetained Earnings Earnings$0 $0$0 ($12,392)$0 ($10,397)$0 ($9,563)$0 ($8,764)$0 ($8,756)$0 ($8,327)$0 ($12,088)$0 ($15,390)$0 ($13,337)$0 ($6,993)$0 ($314)$0 $9,431Total Owner's Equity Total Liabilities & Equity$25,000$12,608$14,603$15,437$16,236$16,244$16,673$12,912$9,610$11,663$18,007$24,686$34,431$52,800$205,976$205,377$200,367$197,169$192,749$189,266$182,684$177,403$177,988$183,298$185,721$184,14641 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksAs of Period's EndCash Accounts Receivable InventoryStarting Balances$0 $0 $17,000FY2013$142,440 $0 $17,026FY2014$183,550 $0 $19,580FY2015$233,747 $0 $19,583Total Current AssetsLongTerm Assets Accumulated Depreciation$17,000$61,500 $0$159,466$62,700 ($12,320)$203,130$62,700 ($24,860)$253,330$62,700 ($37,400)Total LongTerm Assets Total AssetsAccounts Payable Sales Taxes Payable ShortTerm Debt$61,500 $78,500$27,800 $0 $0$50,380 $209,846$36,025 $0 $200$37,840 $240,970$43,467 $0 $0$25,300 $278,630$43,884 $0 $0Total Current LiabilitiesLongTerm Debt$27,800$0$36,225$113,490$43,467$94,232$43,884$73,582Total LiabilitiesPaidIn Capital Retained Earnings Earnings$27,800$25,000 $0 $0$149,715$25,000 $0 $9,431$137,699$25,000 $9,431 $43,140$117,466$25,000 $52,571 $57,893Total Owner's Equity Total Liabilities & Equity$25,000 $52,800$34,431 $184,146$77,571 $215,270$135,464 $252,93042 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksProjected Cash Flow Statement (With Monthly Detail)FY2013 OperationsNet Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable ($12,392) $1,995 $834 $799 $8 $429 ($3,761) ($3,302) $2,053 $6,344 $6,679 $9,745Jul '12Aug '12Sep '12Oct '12Nov '12Dec '12Jan '13Feb '13Mar '13Apr '13May '13Jun '13$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,045$0 ($2,495)$0 $400$0 $4,860$0 $1,140$0 ($3,830)$0 $5,500$0 $1,780$0 ($3,870)$0 ($2,720)$0 $630$0 $380$0 ($1,801)$23,718($986)($4,228)($1,372)($1,295)$230($170)($320)$200$643($70)($8,125)$0$0$0$0$0$0$0$0$0$0$0$0Net Cash Flow from Operations Investing & FinancingAssets Purchased Investments Received Increase in ShortTerm Debt Increase in LongTerm Debt$9,856$2,434$2,491$1,592($4,092)$7,184($1,126)($6,467)$558$8,642$8,014$864$0 $0$0 $0$0 $0$0 $0$0 $0$0 $0$0 $0$0 $0$0 $0$0 $0$0 $0($1,200) $0$11,850($150)($150)($1,150)($1,650)($2,650)($1,150)($150)($150)($150)($2,650)($1,650)$130,000($1,458)($1,466)($1,475)($1,483)($1,492)($1,501)($1,509)($1,518)($1,527)($1,536)($1,545)Net Cash Flow from Investing & Financing$141,850($1,608)($1,616)($2,625)($3,133)($4,142)($2,651)($1,659)($1,668)($1,677)($4,186)($4,395)43 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle WorksCash at Beginning of Period Net Increase in Cash$0 $151,706$151,706 $826$152,532 $875$153,407 ($1,033)$152,374 ($7,225)$145,149 $3,042$148,191 ($3,777)$144,414 ($8,126)$136,288 ($1,110)$135,178 $6,965$142,143 $3,828$145,971 ($3,531)Cash at End of Period$151,706$152,532$153,407$152,374$145,149$148,191$144,414$136,288$135,178$142,143$145,971$142,440FY2013 OperationsNet Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable $9,431 $12,320 $0 ($26) $8,225 $0FY2014FY2015$43,140 $12,540 $0 ($2,554) $7,442 $0$57,893 $12,540 $0 ($3) $417 $0Net Cash Flow from Operations Investing & FinancingAssets Purchased Investments Received Increase in ShortTerm Debt Increase in LongTerm Debt$29,950$60,568$70,847($1,200) $0 $200 $113,490$0 $0 ($200) ($19,258)$0 $0 $0 ($20,650)Net Cash Flow from Investing & FinancingCash at Beginning of Period Net Increase in Cash$112,490$0 $142,440($19,458)$142,440 $41,110($20,650)$183,550 $50,197Cash at End of Period$142,440$183,550$233,74744 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.University Cycle Works45 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.