Import Business Plan

Tweraser Imports, Inc.

1.0 Executive Summary

IntroductionIt is the mission of Tweraser Imports to provide complete import/export brokerage services including purchase contracts, shipping, warehousing, and delivery scheduling. The company will concentrate on special and cultural imports from Austria and the European Union to the unique Bavarian retailers in the United States. Tweraser also plans to provide trade consultation services to newly started firms created in the EU and desiring a presence in the U.S.A.

The CompanyTweraser Imports will be a limited liability partnership registered in the state of Florida for tax purposes. Its founder is Mr. Wolfgang Tweraser, who has brought together a highly respected group of individuals who are well versed in foreign trade processes.

The company has a limited number of private investors and does not plan to go public. The company has its main offices in Hallandale Beach, Florida. The facilities include conference rooms and office spaces. The company expects to begin offering its services in January.

The ServicesTweraser offers complete import/export brokerage services plus inventory consulting services. As mentioned previously, this includes the following:

Supplier/buyer identification Purchasing, contracting and consulting Shipping Warehousing Delivery

It must be noted that Tweraser does not possess any warehousing facilities and intends to outsource this particular service. We expect to earn revenues by charging a commission based on the value of goods moved per order.

The MarketTweraser will be concentrating on servicing just two types of clients, the importers of retail goods from Europe, and the wholesalers of products from the European Union. For both market segments, we have secured exclusive contracts or endorsements putting us in a unique position to service these niche firms and their needs.

Profitability in these two markets is expected to be excellent, especially in the import section as Florida draws in over a million tourists each year. We expect profitability in the co-op end to be much slower in the first five years of operation, but it too will increase steadily.

Financial ConsiderationsStart-up assets required include expenses and cash needed to support operations until revenues reach an acceptable level. Most of the company's liabilities will come from outside private investors and management investment. However we have obtained a commitment from T.D. Bank, with the principal to be paid off in two years. A long-term loan is sought that will be paid off in ten years.

The company expects to reach profitability in year 2 and does not anticipate any serious cash flow problems. We expect that about 3,500 units per month will guarantee a break-even point.

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Chart: Highlights

Sales

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Highlights

1.1 Mission

It is the mission of Tweraser Imports to provide complete import/export consultation and brokerage services including purchase contracts, shipping, warehousing, and delivery. The company will concentrate on special and cultural imports from Germany and Austria to the unique goods and products from Western Europe and the E.U. Tweraser also plans to offer Class A office space to companies looking to import or expand their operations to the United States and Florida.

It is our long-term goal to become the preferred import company for the unique products of the E.U. Our goal is to stimulate and facilitate the internationalization of small European exporters. We offer a comprehensive set of solutions within a program aimed at the sustainability of participating companies, especially in terms of market share and job creation. Tweraser Imports has a combined 35 years of experience working in the import/export business. Our philosophy is in creating a long-term relationship with clients so that the delivery of their products becomes a seamless experience that promotes loyalty.

1.2 Keys to Success

Tweraser Imports' keys to long-term and profitability are as follows:

Differentiate our services to our niche clients so that they realize that we are better able to serve their needs than a more generic competitor.

Keeping close contact with clients and establishing a well functioning long-term relationship with them to generate repeat business and create a top notch reputation.

Establish a comprehensive service experience for our clients. This includes consultation, product/client search, purchasing contracts, warehousing, shipping, delivery, and follow up service analysis.

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1.3 Objectives

The three year goals for Tweraser Imports are the following:

Achieve break-even by year 2. Retain our long-term contracts with local importers from Austria and the E.U., through

excellent customer service. Become the premier importer of Austrian and European specialty products in Florida.

2.0 Company Summary

Tweraser Imports will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Wolfgang Tweraser, a former master distributor with Fisher-Mills. Mr. Tweraser has brought together a highly respected group of individuals who are well versed in the various aspects of foreign trade processes.

The company has a limited number of private investors and does not plan to go public. The company has its main offices in Hallandale Beach, Florida. The facilities we will build include conference rooms and Class A office spaces. The company expects to begin offering its services in January.

The company's main clients will be small to mid-sized exporters from the E.U. and start-up companies throughout Europe. By focusing on small niche market entrepreneurs, we believe we will be able to provide superior and more efficient service than other import/export firms.

2.1 Company Ownership

The company will have a number of outside private investors who will own 27% of the company's shares. The rest will be owned by the senior management including Mr. Wolfgang Tweraser. All other financing will come from loans.

2.2 Table: Start-up

Start-up

Requirements

Start-up Expenses

Legal $2,000 Insurance $1,000 Utilities $200 Rent $2,000 Accounting and bookkeeping fees $2,000 Expensed equipment $2,000 Advertising $4,000 Other $8,000 Total Start-up Expenses $21,200

Start-up Assets

Cash Required $38,550 Other Current Assets $15,000 Long-term Assets $10,000 Total Assets $63,550

Total Requirements $84,750

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Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $21,200 Start-up Assets to Fund $63,550 Total Funding Required $84,750

Assets

Non-cash Assets from Start-up $25,000 Cash Requirements from Start-up $38,550 Additional Cash Raised $0 Cash Balance on Starting Date $38,550 Total Assets $63,550

Liabilities and Capital

Liabilities

Current Borrowing $9,000 Long-term Liabilities $12,000 Accounts Payable (Outstanding Bills) $2,000 Other Current Liabilities (interest-free) $8,000 Total Liabilities $31,000

Capital

Planned Investment

Mr. Wolfgang Tweraser $46,000

Others $7,750 Additional Investment Requirement $0 Total Planned Investment $53,750

Loss at Start-up (Start-up Expenses) ($21,200)Total Capital $32,550

Total Capital and Liabilities $63,550

Total Funding $84,750

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Chart: Start-up

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3.0 Services

Tweraser offers complete import/export brokerage services plus inventory consulting services. As mentioned previously, this includes the following:

Supplier/buyer identification Purchasing process contracting and consulting Shipping setup Warehousing arrangements Delivery

It must be noted that Tweraser does not possess any warehousing facilities and intends to outsource this particular service. This means that we will have virtually no variable costs associated with unit sales.

Tweraser will be importing such things as steins, figurines, Christmas gifts, germanic foodstuffs, cuckoo clocks, and nutcrackers from Germany, where Mr. Tweraser has had extensive experience. In addition Tweraser will be importing Scandinavian wool products such as sweaters and other gift items.

Our revenue model is based on a commission rate charged to our clients scaled on the dollar value of goods moved per order, and the consulting and rental fees charged.

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4.0 Market Analysis Summary

Tweraser will be concentrating on servicing just two types of clients, the importers of retail goods from Europe, and the wholesalers of products from the European Union. For both market segments, we have secured exclusive contracts or endorsements putting us in a unique position to service these niche firms and their needs.

Profitability in these two markets is expected to be excellent, especially in the import section as Florida draws in over a million tourists each year. We expect profitability in the co-op end to be much slower in the first five years of operation, but it too will increase steadily.

4.1 Market Segmentation

Tweraser intends to be a small import/export company focused on clients serving a niche market. Having secured a very advantageous contract with several European exporters and gained the endorsement of the Pompano Beach city council, we plan to focus exclusively on these market segments. Both have such high potential that we do not see a need to expand our market reach for the foreseeable future.

Table: Market Analysis

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

European businesses 1% 34 34 34 34 34 0.00% US Co-op presence 5% 72 76 80 84 88 5.14% Total 3.58% 106 110 114 118 122 3.58%

4.2 Service Business Analysis

ImportsIt is with our wide experience of the US market, which we help entrepreneurs to get quick and practical results, with our Strategic Advisory service. This environment supports entrepreneurs through consulting services, technical advice as well as:

Legal business support in the areas of intellectual property, design and drafting contracts. Monitoring the registration and licensing processes of the company and products together

with government agencies. Support in developing the business model, consulting, and arranging expert assistance. Support in the general management of the companies selected while operating in US

territory. Support the activities related to marketing, aimed at the inclusion of the company in the US

market. Assistance in identifying the best tools and strategies for promotion and dissemination of the

companies and their products. Guidance for identification of the target market and business opportunities. Support the operation and logistics activities, including customs clearance, storage space in

the US, commodity inspection and verification of documentation needed to process.

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The assistance period is of 24 months duration forecasting, during which will be provided support and assistance in various aspects, such as the opening of the company in the US and all related legal requirements, training, administration, finance, marketing, legal, logistics and physical structure in Florida.

Tweraser looks to empower entrepreneurs to be self-sufficient in their promotional and sales activities in the US. We support the introduction of new products, processes and services in the US market, and to allow European exporters to participate in the American market. We will be facilitating access to facilities and services necessary to build and maintain a successful US commercial structure.

4.2.1 Assistance Program Highlights

Training, Education and Training

Training, Education and Training entrepreneurs in key managerial aspects such as:

Business management Marketing of products and services in the US market Accounting Marketing Legal assistance Fundraising and contracts with lenders Intellectual property rights and registrations

Infrastructure

Physical space for shared use, such as a meeting room, an area for demonstration of products, processes and services of listed companies.

Private, Class “A” office space for entry level companies to offer potential clients a professional, sophisticated office presence.

Support in identifying and hiring individualized physical space for the installation of complete offices of each company admitted.

Consulting and Technical advice

Business legal support, intellectual property and design. Product licensing with government agencies. Assistance for the preparation and / or updating of the business plan. Support in the preparation of requests for access to the private investors and

development agencies.

Marketing

Support the promotion and dissemination of the companies as well as their inclusion in networks and trade shows.

Advice on marketing and sales.

General Administration Page 7


Administrative support Human Resources Incorporation of companies Bookkeeping and Accounting Income tax returns (federal and state) Finance and Controlling Business Services

Operation and Logistics

Research and identify potential suppliers. Distribution RFI (Request for Information) and RFQ (Request for Quotation). Price negotiation, delivery time and payment terms. Receiving, checking and inspection of goods and documents. Storage. Consolidation and shipping.

5.0 Strategy and Implementation Summary

Our firm's business strategy is to enter into a focused or niche market where it can offer a higher standard of service to its specialized clients. This will allow us to charge slightly higher fees to our clients for these differentiated services.

5.1 Sales Strategy

Tweraser intends to develop sales by establishing close contact with potential clients. We will begin by offering a free consultation in terms of overall cost, service, and delivery. In addition, we intend to promote our management team's extensive experience both with German gift manufacturers and artisans, and our knowledge of the produce trade environment to draw in our target market segments.

5.1.1 Sales Forecast

Sales are based on the various contracts we anticipate acquiring in the two market segments. Revenues consist of a commission rate charged to our clients based on the dollar amount of goods moved and include projected average costs plus an undisclosed profit margin. Sales are expected to vary somewhat month to month, but are only slightly cyclical on the import end. The exports are expected to be highly cyclical. The company does not have any significant direct costs of sales.

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Table: Sales Forecast

Sales Forecast


Sales

Leavenworth imports $127,000 $145,000 $189,000 PCC farm exports $33,000 $56,000 $77,000 Total Sales $160,000 $201,000 $266,000

Direct Cost of Sales Year 1 Year 2 Year 3Leavenworth imports $0 $0 $0 PCC farm exports $0 $0 $0 Subtotal Direct Cost of Sales $0 $0 $0

Chart: Sales Monthly

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Tweraser imports

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Chart: Sales by Year

5.2 Marketing Strategy

Tweraser intends to leverage its contacts with the Pompano city council and the Puget Consumers Co-op in order to draw in new clients. The city council works very closely with local businesses in facilitating all aspects of business management in order to keep tourism flowing. Because of this, Tweraser has already signed contracts with nine Leavenworth businesses and we expect to gain a dominant market share within the town.

The PCC will be recommending Tweraser Imports, Inc. to its new farmers as long as we can keep shipping costs within accepted limits. Therefore we expect to have a large proportion of member farmers use our services.

6.0 Management Summary

Company officers include our President, Mr. Wolfgang Tweraser, our head of exports Ms. Hannah Mills, and our head of imports, Mr. Steve Iltheus.

6.1 Personnel

Tweraser's management brings to the company strong capabilities in all aspects of trade relations, logistics, contracting and selling.

Mr. Wolfgang Tweraser is a former master distributor with Fisher-Mills, one of the nation's largest import/export firms. During his 10 years with Fisher-Mills he worked exclusively on trade contracts with Germany. In 1996 Mr. Tweraser accepted a position with Eagle Distributors as a department head. By introducing American wines into eastern Europe and the former Soviet republics he demonstrated his flair for opening new markets. Mr. Tweraser has an MBA in finance and an BS in International Relations.

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Tweraser imports

Rental/consulting fees

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Sales by Year


Ms. Hannah Mills graduated with honors from the University of Oregon, having earned a bachelors degree in marketing in 1988. From 1988-1994 Ms. Mills worked for Stanford Distributors working with canning companies in the midwest region. In 1995 she went to work for Anderson Consulting in their International Trade division. Four years later, Ms. Mills became vice president of A.V. Imports.

Table: Personnel

Personnel Plan


Mr. Wolfgang Tweraser - President $36,000 $36,000 $45,000 Mrs. Hannah Mills $36,000 $36,000 $45,000 Mr. Steve Iltheus $24,000 $36,000 $36,000 Other $0 $0 $0 Total People 3 3 3

Total Payroll $96,000 $108,000 $126,000

7.0 Financial Plan

Our financial plan anticipates one year of negative profits as we gain sales volume. We have enough investment to cover these losses, and have an additional credit line available if sales do not match predictions.

7.1 Important Assumptions

We are assuming approximately 50% sales on credit and average interest rates of 10%. These are considered to be conservative in case our predictions are erroneous.

Since Tweraser is an import/export broker, the firm has no variable costs associated with it.

Table: General Assumptions

General Assumptions


Plan Month 1 2 3Current 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

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7.2 Break-even Analysis

Our break-even analysis is based on the assumptions that our gross margin is 100%. In other words, we will have insignificant direct cost of sales. Since each market segment is so completely different, it is difficult to assign an average per unit revenue figure. However, it is believed that during the first three years, average revenue per unit per month will be about $4.00, due to the fact that, initially, we may be working with smaller companies projects. We expect that about 3,500 units per month will guarantee break even.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $14,067

Assumptions:

Average Percent Variable Cost 0% Estimated Monthly Fixed Cost $14,067

Chart: Break-even Analysis

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Break-even Analysis

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7.3 Projected Profit and Loss

The following table itemizes our revenues and associated costs. We expect to be paying higher costs in marketing and advertising than other companies as we attempt to build sales volume. We expect monthly profits to begin in April 2004 and yearly profits to occur in 2005.

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $160,000 $201,000 $266,000 Direct Cost of Sales $0 $0 $0 Other Costs of Sales $0 $0 $0 Total Cost of Sales $0 $0 $0

Gross Margin $160,000 $201,000 $266,000 Gross Margin % 100.00% 100.00% 100.00%

Expenses

Payroll $96,000 $108,000 $126,000 Sales and Marketing and Other Expenses $8,400 $8,000 $8,000 Depreciation $0 $0 $0 Rent $12,000 $12,000 $13,000 Utilities $3,600 $3,600 $4,000 Insurance $3,000 $3,000 $3,000 Payroll Taxes $14,400 $16,200 $18,900 Travel $24,200 $12,000 $10,000 Other $7,200 $8,000 $10,000

Total Operating Expenses $168,800 $170,800 $192,900

Profit Before Interest and Taxes ($8,800) $30,200 $73,100 EBITDA ($8,800) $30,200 $73,100 Interest Expense $2,035 $1,820 $1,600 Taxes Incurred $0 $8,514 $21,450

Net Profit ($10,835) $19,866 $50,050 Net Profit/Sales -6.77% 9.88% 18.82%

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Chart: Profit Monthly

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Chart: Profit Yearly

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Chart: Gross Margin Monthly

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Chart: Gross Margin Yearly

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7.4 Projected Cash Flow

The following is our cash flow table and chart. We do not expect to have any short-term cash flow problems even though we will be operating at a loss for the first year. Our short-term loan will be repaid in three equal payments in 2004-2006. Our long-term loan will be paid off in ten years.

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $80,000 $100,500 $133,000 Cash from Receivables $62,767 $96,084 $125,999 Subtotal Cash from Operations $142,767 $196,584 $258,999

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $142,767 $196,584 $258,999

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $96,000 $108,000 $126,000 Bill Payments $70,247 $73,711 $88,568 Subtotal Spent on Operations $166,247 $181,711 $214,568

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $2,000 $0 Other Liabilities Principal Repayment $0 $1,000 $1,000 Long-term Liabilities Principal Repayment $1,200 $1,200 $1,200 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $4,000 $10,000 $42,000 Subtotal Cash Spent $171,447 $195,911 $258,768

Net Cash Flow ($28,680) $673 $231 Cash Balance $9,869 $10,543 $10,774

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Chart: Cash

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7.5 Projected Balance Sheet

The following table is the Project Balance Sheet for Tweraser Imports.

Table: Balance Sheet

Pro Forma Balance Sheet


Assets

Current Assets

Cash $9,869 $10,543 $10,774 Accounts Receivable $17,233 $21,649 $28,650 Other Current Assets $15,000 $15,000 $15,000 Total Current Assets $42,103 $47,192 $54,424

Long-term Assets

Long-term Assets $10,000 $10,000 $10,000 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $10,000 $10,000 $10,000 Total Assets $52,103 $57,192 $64,424

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $6,588 $6,011 $7,393 Current Borrowing $9,000 $7,000 $7,000 Other Current Liabilities $8,000 $7,000 $6,000 Subtotal Current Liabilities $23,588 $20,011 $20,393

Long-term Liabilities $10,800 $9,600 $8,400 Total Liabilities $34,388 $29,611 $28,793

Paid-in Capital $53,750 $53,750 $53,750 Retained Earnings ($25,200) ($46,035) ($68,169)Earnings ($10,835) $19,866 $50,050 Total Capital $17,715 $27,581 $35,631 Total Liabilities and Capital $52,103 $57,192 $64,424

Net Worth $17,715 $27,581 $35,631

7.6 Business Ratios

We have included industry standard ratios from the trade consultant industry for comparison. Our NAICS industry class is currently Miscellaneous Nondurable Goods Merchant Wholesale - 424990. Our projections indicate a healthy company that will be able to obtain and retain long-term profitability.

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Table: Ratios

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth n.a. 25.63% 32.34% 6.98%

Percent of Total Assets

Accounts Receivable 33.08% 37.85% 44.47% 26.80% Other Current Assets 28.79% 26.23% 23.28% 43.95% Total Current Assets 80.81% 82.52% 84.48% 75.76% Long-term Assets 19.19% 17.48% 15.52% 24.24% Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 45.27% 34.99% 31.65% 31.78% Long-term Liabilities 20.73% 16.79% 13.04% 17.26% Total Liabilities 66.00% 51.77% 44.69% 49.04% Net Worth 34.00% 48.23% 55.31% 50.96%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 100.00% 100.00% 100.00% 100.00% Selling, General & Administrative Expenses 106.77% 90.12% 81.18% 85.31% Advertising Expenses 0.00% 0.00% 0.00% 1.02% Profit Before Interest and Taxes -5.50% 15.02% 27.48% 1.90%

Main Ratios

Current 1.78 2.36 2.67 1.88 Quick 1.78 2.36 2.67 1.48 Total Debt to Total Assets 66.00% 51.77% 44.69% 3.41% Pre-tax Return on Net Worth -61.16% 102.90% 200.67% 55.78% Pre-tax Return on Assets -20.80% 49.62% 110.98% 7.72%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin -6.77% 9.88% 18.82% n.aReturn on Equity -61.16% 72.03% 140.47% n.a

Activity Ratios

Accounts Receivable Turnover 4.64 4.64 4.64 n.aCollection Days 56 71 69 n.aAccounts Payable Turnover 11.36 12.17 12.17 n.aPayment Days 28 31 27 n.aTotal Asset Turnover 3.07 3.51 4.13 n.a

Debt Ratios

Debt to Net Worth 1.94 1.07 0.81 n.aCurrent Liab. to Liab. 0.69 0.68 0.71 n.a

Liquidity Ratios

Net Working Capital $18,515 $27,181 $34,031 n.aInterest Coverage -4.32 16.59 45.69 n.a

Additional Ratios

Assets to Sales 0.33 0.28 0.24 n.aCurrent Debt/Total Assets 45% 35% 32% n.aAcid Test 1.05 1.28 1.26 n.aSales/Net Worth 9.03 7.29 7.47 n.aDividend Payout 0.00 0.50 0.84 n.a

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Appendix

Table: Sales Forecast

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales

Leavenworth imports 0% $11,000 $13,000 $13,000 $12,000 $10,000 $8,000 $12,000 $9,000 $8,000 $9,000 $10,000 $12,000 PCC farm exports 0% $0 $0 $0 $0 $0 $2,000 $4,000 $4,000 $5,000 $5,000 $6,000 $7,000 Total Sales $11,000 $13,000 $13,000 $12,000 $10,000 $10,000 $16,000 $13,000 $13,000 $14,000 $16,000 $19,000

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Leavenworth imports $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

PCC farm exports $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Page 1

Appendix

Table: Personnel

Personnel Plan


Mr. Wolfgang Tweraser - President 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 Mrs. Hannah Mills 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 Mr. Steve Iltheus 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total People 0% 3 3 3 3 3 3 3 3 3 3 3 3

Total Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

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Appendix

Table: General Assumptions

General Assumptions


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

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Appendix

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $11,000 $13,000 $13,000 $12,000 $10,000 $10,000 $16,000 $13,000 $13,000 $14,000 $16,000 $19,000

Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $11,000 $13,000 $13,000 $12,000 $10,000 $10,000 $16,000 $13,000 $13,000 $14,000 $16,000 $19,000

Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses

Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

Sales and Marketing and Other Expenses

$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $500 $500 $500 $300 $300 $300

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Utilities $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Payroll Taxes 15% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 Travel 15% $1,200 $3,000 $1,000 $2,000 $2,000 $3,000 $2,000 $1,000 $2,000 $3,000 $1,000 $3,000 Other $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600

Total Operating Expenses $13,550 $15,350 $13,350 $14,350 $14,350 $15,350 $13,850 $12,850 $13,850 $14,650 $12,650 $14,650

Profit Before Interest and Taxes ($2,550) ($2,350) ($350) ($2,350) ($4,350) ($5,350) $2,150 $150 ($850) ($650) $3,350 $4,350

EBITDA ($2,550) ($2,350) ($350) ($2,350) ($4,350) ($5,350) $2,150 $150 ($850) ($650) $3,350 $4,350

Interest Expense $174 $173 $173 $172 $171 $170 $169 $168 $168 $167 $166 $165

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($2,724) ($2,523) ($523) ($2,522) ($4,521) ($5,520) $1,981 ($18) ($1,018) ($817) $3,184 $4,185

Net Profit/Sales -24.77% -19.41% -4.02% -21.01% -45.21% -55.20% 12.38% -0.14% -7.83% -5.83% 19.90% 22.03%

Page 4

Appendix

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $5,500 $6,500 $6,500 $6,000 $5,000 $5,000 $8,000 $6,500 $6,500 $7,000 $8,000 $9,500

Cash from Receivables $0 $183 $5,533 $6,500 $6,483 $5,967 $5,000 $5,100 $7,950 $6,500 $6,517 $7,033

Subtotal Cash from Operations $5,500 $6,683 $12,033 $12,500 $11,483 $10,967 $13,000 $11,600 $14,450 $13,500 $14,517 $16,533

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 $5,500 $6,683 $12,033 $12,500 $11,483 $10,967 $13,000 $11,600 $14,450 $13,500 $14,517 $16,533

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 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

Bill Payments $2,191 $5,784 $7,457 $5,556 $6,522 $6,554 $7,470 $5,986 $5,052 $6,044 $6,750 $4,882

Subtotal Spent on Operations $10,191 $13,784 $15,457 $13,556 $14,522 $14,554 $15,470 $13,986 $13,052 $14,044 $14,750 $12,882

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 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

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 $4,000 $0 $0 $0 $0

Subtotal Cash Spent $10,291 $13,884 $15,557 $13,656 $14,622 $14,654 $15,570 $18,086 $13,152 $14,144 $14,850 $12,982

Net Cash Flow ($4,791) ($7,201) ($3,523) ($1,156) ($3,138) ($3,687) ($2,570) ($6,486) $1,298 ($644) ($333) $3,551

Cash Balance $33,759 $26,558 $23,035 $21,879 $18,741 $15,053 $12,484 $5,998 $7,296 $6,652 $6,319 $9,869

Page 5

Appendix

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Current Assets

Cash $38,550 $33,759 $26,558 $23,035 $21,879 $18,741 $15,053 $12,484 $5,998 $7,296 $6,652 $6,319 $9,869 Accounts Receivable $0 $5,500 $11,817 $12,783 $12,283 $10,800 $9,833 $12,833 $14,233 $12,783 $13,283 $14,767 $17,233 Other Current Assets $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 Total Current Assets $53,550 $54,259 $53,375 $50,818 $49,163 $44,541 $39,887 $40,317 $35,231 $35,079 $34,935 $36,085 $42,103

Long-term Assets

Long-term Assets $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Long-term Assets $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Total Assets $63,550 $64,259 $63,375 $60,818 $59,163 $54,541 $49,887 $50,317 $45,231 $45,079 $44,935 $46,085 $52,103

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 $2,000 $5,533 $7,273 $5,338 $6,304 $6,303 $7,269 $5,819 $4,851 $5,817 $6,589 $4,655 $6,588 Current Borrowing $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 Other Current Liabilities $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 Subtotal Current Liabilities $19,000 $22,533 $24,273 $22,338 $23,304 $23,303 $24,269 $22,819 $21,851 $22,817 $23,589 $21,655 $23,588

Long-term Liabilities $12,000 $11,900 $11,800 $11,700 $11,600 $11,500 $11,400 $11,300 $11,200 $11,100 $11,000 $10,900 $10,800 Total Liabilities $31,000 $34,433 $36,073 $34,038 $34,904 $34,803 $35,669 $34,119 $33,051 $33,917 $34,589 $32,555 $34,388

Paid-in Capital $53,750 $53,750 $53,750 $53,750 $53,750 $53,750 $53,750 $53,750 $53,750 $53,750 $53,750 $53,750 $53,750 Retained Earnings ($21,200) ($21,200) ($21,200) ($21,200) ($21,200) ($21,200) ($21,200) ($21,200) ($25,200) ($25,200) ($25,200) ($25,200) ($25,200)Earnings $0 ($2,724) ($5,248) ($5,770) ($8,292) ($12,813) ($18,333) ($16,352) ($16,370) ($17,388) ($18,204) ($15,020) ($10,835)Total Capital $32,550 $29,826 $27,303 $26,780 $24,258 $19,738 $14,218 $16,198 $12,180 $11,163 $10,346 $13,530 $17,715 Total Liabilities and Capital $63,550 $64,259 $63,375 $60,818 $59,163 $54,541 $49,887 $50,317 $45,231 $45,079 $44,935 $46,085 $52,103

Net Worth $32,550 $29,826 $27,303 $26,780 $24,258 $19,737 $14,217 $16,198 $12,180 $11,162 $10,346 $13,530 $17,715

Page 6

Documents

Import Business Plan