New Business Carpet

8/7/2019 New Business Carpet

http://slidepdf.com/reader/full/new-business-carpet 1/26

2010

CMS, JMI

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Submitted By:

Anoop Kumar

Sonal Kumar Sing

Bishal Kumar Kar

Naveen C Narain

S. Meraj Ahmad

New Carpet Cleaning

Business Idea



Executive Summary

Like New Carpet Cleaning, located in Delhi, will sell carpet and upholstery cleaning services to home and

condominium owners, building its brand around the fact that it will make carpets look "like new." To that end, the

business will raise Rs57,500 from outside investors to purchase its delivery van, carpet-cleaning equipment, and

develop a unique, service-oriented website which will keep administrative costs low and drive sales through its simpleand easy accessibility for the consumer.

The initial customer base will be homeowners with a high percentage of their floors carpeted, within a 5-mile radius of

Delhi,. Sales are projected to grow at 25% per year as the business expands into new markets. Profitability will be the

goal only after the business grows to a significant scale and becomes a major player in the local market. At that point,

the business will enjoy significantly lower expenses as well as an infrastructure which positions it well for future

expansion.

Objectives

Like New Carpet Cleaners seeks to establish a substantial foothold in the local carpet-cleaning business in Delhi ,

and position itself for expansion either through company-run offices or franchising. The following goals representthese objectives: .

y Within three years of launch, to serve 10% of homes with carpets in Fairfield County.

y Within five years of launch, to serve 25% of homes with carpets in Fairfield County.

Mission

Like New Carpet Cleaners will bring simplicity and automation to carpet cleaning service for homes, helping

homeowners maintain beautiful carpets and a beautiful home and saving them from the cost of replacing carpets.

Keys to Success

1. Use online technology to make the process of ordering, scheduling, and paying for carpet cleaning simpler for

customers.

2. Provide a good customer experience, with a well-trained cleaning crew, and quality assurance with a 30-day

money back guarantee.

3. Use environmentally friendly cleaning products and stay up to date on new breakthroughs in safe and earth-

friendly products and processes



Company Summary

Like New Carpet Cleaners will be a local carpet-cleaning service doing business in Delhi Established in June 2009 as

an LLC,

Company OwnershipThe company is jointly owned by Naveen Chandra Narain, Sonal Kumar singh, Anoop Kumar, Bishal Kumar and

S.Meraj.

Start-up Summary

The startup expenses for the business are primarily in three strategic areas:

1. Website: A website will be developed and tested, with functionality to allow online ordering, scheduling,

rescheduling, and customer support. (Rs30,000 estimate)

2. Delivery Van: A delivery van must be purchased to transport cleaning staff and equipment to customer homes.

One van will be used to transport multiple cleaning crews during initial operations. (Rs15,000 estimate)

3. Cleaning Equipment: 3 portable extractors and additional specialized equipment for cleanings. (Rs15,000estimate)

The business will be based out of a home office, which will limit initial rent and overhead costs.

Start-up

Requirements

Start-up Expenses

Legal Rs1,500

Stationery etc. Rs1,000

Insurance Rs2,000

Rent Rs1,000

Website Rs30,000

Other Rs2,000

Total Start-up Expenses Rs37,500

Start-up Assets

Cash Required Rs30,000

Other Current Assets Rs0

Long-term Assets Rs30,000

Total Assets Rs60,000

Total Requirements Rs97,500

Services

Like New Carpet Cleaners services and products will include:

y Regular Carpet Cleaning

y Spot Treatment for Carpets

y Furniture Cleaning



y Leather Furniture Cleaning

y Area Rugs

y Gift Certificates

The company will focus on cleaning carpets, rugs, and upholstered items and will seek to build and maintain its

expertise in this area; its services will not include hardwood floors or other home-cleaning services.

Through its website, the company will offer the service of easy scheduling and the set-up of automated recurring

appointments for its regular customers.

Market Analysis Summary

The INDIA. carpet and upholstery cleaning service sector was estimated at Rs500 crore in 2006 by Marketdata

Enterprises. The market is broken into residential and commercial services. While only moderate growth is estimated

for the next five years, the national market is highly competitive.

Market SegmentationCustomers for this industry are broken into the following targets:

y Residences (including individuals, families, and landlords)

y Businesses (including small businesses, larger businesses, insurance companies, and commercial landlords)

Residences require a higher level of customer support, pay higher rates on average, and often include additional

opportunities to sell related services to homeowners.

Businesses require less customer support and service, pay lower rates on average, and generally seek ongoing

services which can repeat the same tasks without much room for upselling.



Market Analysis

Year 1 Year 2 Year 3

Potential Customers Growth CAGR

Large Homes 25% 10,000 12,500 15,625 25.00%

Medium Homes 25% 20,000 25,000 31,250 25.00%

Condos and Small Homes 25% 10,000 12,500 15,625 25.00%

Total 25.00% 40,000 50,000 62,500 25.00%

Target Market Segment Strategy

Like New Carpet Cleaners will focus on residential cleaning services, rather than businesses, because it believes this

market is more likely to accept technological advances and Internet customer service. Like New has divided the

market into these segments:

y Large homes (over 5,000 square feet) - Generally have many rooms needing regular service as well as the

need for upholstery and spot treatments. Service may require a full day of cleaning.

y Medium homes (2000 to 5000 square feet) - Generally have a couple of rooms needing regular service and

may require service as often or more often than large homes as each room is given more wear and tear by

families. Service may require half a day (four hours) of cleaning.y Small homes and condos (under 2000 square feet) - Generally have at least one carpeted room requiring

regular service. Service may often be completed in two hours or less.

Service Business Analysis

The carpet-cleaning business is characterized by multiple local businesses serving a town or a few towns, and some

national franchises. Each town can have from ten to twenty businesses.

Cleaning services are generally managed out of a central office. Delivery vans are used to transport equipment and

cleaning crews from the central office to customer homes.

Services are generally ordered by phone. For large homes, on-site consultations are given to develop a more

accurate quote for cleaning service, rather than quoting a price site unseen. Some online ordering is done, but most

small businesses rely on phone conversations to gather the information needed to quote a price to customers.



Web Plan Summary

The website for Like New Carpet Cleaners will convert Web users to ordering cleaning services because of the

simplicity of the process, customization of services, and the ability of the online system to red flag inquiries which

require additional attention.

For new customers, the site will include:

y Graphics and tutorials to go through the booking and scheduling process

y Client testimonials

y Explanations of how pricing is determined

y A list of services

y "Frequently-asked questions" page to answer common questions and to explain how the service works, what

the time frame is to complete the work, etc.

y "About us" page - details on the founders and mission of the company

For current customers, the website will also be an account management tool, allowing them to:

y Schedule and reschedule cleanings

y Set up automated, recurring appointments

The website will have the functionality to provide quotes to most customers, based on their entries about the services

needed, size of their space, furniture, carpets, etc. For certain specifications (determined by the founders) the system

will be unable to provide a quote and will refer the inquiry to the sales department for further investigation. Clients will

pay by credit card (using a security protocol connection for sending credit card information over the Internet) and can

have their credit card saved on file for easier booking in the future.

Strategy and Implementation SummaryThe strategy of Like New Carpet Cleaning is to expand rapidly within Fairfield County, CT, targeting residential

customers only, with an eye towards proving its model as scalable on a statewide level. To that end, it will seek

funding for its initial five years of growth and then an additional round of funding to support that growth after five

years. The strategy includes the following priorities:

y Ensure high-quality, moderately-priced service using a web-based model of sales and customer support.

y Keep overhead low by operating out of one office and keeping full-time staff at a minimum.

y Build its brand around the fact that carpets will look "like new" after cleanings, saving customers worry and

expense.

Competitive Edge

The website of Like New Carpet Cleaning will offer complete sales, service, and scheduling applications online. This

allows the business to reduce its operating costs, establish a business that can scale up quickly, and still provide a

good customer experience. This online scheduling approach lets customers sign up for carpet cleaning services any

time, day or night. This is a convenience that will be appreciated by the customer. It is an asset which it will be difficult

for competitors to imitate because of the high cost of implementation.



Marketing Strategy

Sales Forecast

The primary revenue streams for Like New Carpet Cleaners will be carpet cleaning and intensive spot treatments. As

the company will brand itself as the leader in making carpets look "like new," these will be the drivers of growth. Additional services will be sold primarily to customers who seek out Like New for its carpet treatments.

Average services are defined as the following, for the purpose of the sales forecast:

y Average carpet cleaning is two rooms (a small, semi-carpeted apartment)

y Average furniture cleaning is one large couch

y Average intensive spot treatment is one carpet

y Average area rug cleaning is one area rug

Cost of sales is expected to be 35% for the labor of cleaning staff. The remaining 4-10%, depending on the service, is

for cleaning supplies and gasoline applied to the job to transport crew and equipment.

Over the first year, rapid growth is anticipated month over month as customer reviews come in and the simplicity and

assurance of the web model is tested by the customer. A 25% annual growth is estimated as the business expands to

cover all of Fairfield County, with additional bases of operation throughout the county. Growth will be primarily

through the company's geographic expansion and secondarily through deeper penetration in each town as word-of-

mouth grows.

The main impediment to this rapid growth would be the reluctance of customers to switch from their current carpet

cleaning services. This risk will be mitigated by offering incentives to customers who switch and no-commitment trial

prices. Competitors are unlikely to offer the same web-based model as their entire infrastructures are built around the

use of salespeople, customer service reps, and in-person sales appointments.

Sales Forecast


Unit Sales

Carpet Cleaning 3,054 3817 4772

Furniture Cleaning 2,310 2888 3609

Intensive Spot Treatment 3,054 3817 4772

Area Rugs 1,486 1857 2322

Other Services 1,486 1857 2322

Total Unit Sales 11,390 14,237 17,796

Unit Prices Year 1 Year 2 Year 3

Carpet Cleaning Rs100.00 Rs100.00 Rs100.00

Furniture Cleaning Rs25.00 Rs25.00 Rs25.00

Intensive Spot Treatment Rs50.00 Rs50.00 Rs50.00

Area Rugs Rs25.00 Rs25.00 Rs25.00

Other Services Rs25.00 Rs25.00 Rs25.00

Sales

Carpet Cleaning Rs305,395 Rs381,744 Rs477,180



Furniture Cleaning Rs57,750 Rs72,188 Rs90,234

Intensive Spot Treatment Rs152,691 Rs190,864 Rs238,580

Area Rugs Rs37,147 Rs46,434 Rs58,042

Other Services Rs37,147 Rs46,434 Rs58,042

Total Sales Rs590,130 Rs737,663 Rs922,078

Direct Unit Costs \Year 1 Year 2 Year 3

Carpet Cleaning Rs30.00 Rs30.00 Rs30.00

Furniture Cleaning Rs7.50 Rs7.50 Rs7.50

Intensive Spot Treatment Rs22.50 Rs22.50 Rs22.50

Area Rugs Rs9.75 Rs9.75 Rs9.75

Other Services Rs11.25 Rs11.25 Rs11.25

Direct Cost of Sales

Carpet Cleaning Rs91,619 Rs114,523 Rs143,154

Furniture Cleaning Rs17,325 Rs21,656 Rs27,070

Intensive Spot Treatment Rs68,711 Rs85,889 Rs107,361

Area Rugs Rs14,487 Rs18,109 Rs22,636Other Services Rs16,716 Rs20,895 Rs26,119

Subtotal Direct Cost of Sales Rs208,858 Rs261,072 Rs326,341

Management Summary

The business will be managed the owners. The member of management team comprises its owner only.

All the relevant decisions will be solely taken by the owners.

Naveen Chandra Narain : marketing and promotions

Sonal Kumar Singh : Marketing Strategies

BIshal Kumar : Financial Advisor

Anoop Kumar : Financial Advisor

S.Meraj : Sales & Fund manager



Financial Plan

Like New Carpet Cleaning will add at least one new local base each year, consisting of parking for the company vanand storage for cleaning equipment and supplies. This future growth will be financed by cash generated from existing

locations and debt to finance vehicle and cleaning equipment purchases.

Start-up Funding

Start-up funding will be provided by a combination of owner investment and investor funding, with a small amount of

debt. The owners will contribute Rs20,000 of initial funding to develop a prototype of the website. Investors will

contribute Rs57,500 for a 30% share of the company.

Start-up Funding

Start-up Expenses to Fund Rs37,500

Start-up Assets to Fund Rs60,000

Total Funding Required Rs97,500

Assets

Non-cash Assets from Start-up Rs30,000

Cash Requirements from Start-up Rs30,000

Additional Cash Raised

Cash Balance on Starting Date Rs30,000

Total Assets Rs60,000

Liabilities and Capital



Liabilities

Current Borrowing Rs0

Long-term Liabilities Rs15,000

Accounts Payable (Outstanding Bills)

Other Current Liabilities (interest-free) Rs0

Total Liabilities Rs20,000

Capital

Planned Investment

Owners Rs20,000

Investor Rs57,500

Additional Investment Requirement

Total Planned Investment Rs77,500

Loss at Start-up (Start-up Expenses) (Rs37,500)

Total Capital Rs40,000

Total Capital and Liabilities Rs60,000

Total Funding Rs97,500



Break-even Analysis

The business will benefit from a low monthly break-even point due to the assignment of most costs directly to the

cleaning service (gasoline, cleaning crew labor, and cleaning products) and the low payroll that is achieved by

leveraging Like New's website, which will reduce administrative costs.

Break-even Analysis

Monthly Units Break-even 705

Monthly Revenue Break-even Rs36,506

Assumptions:

Average Per-Unit Revenue

Average Per-Unit Variable Cost

Estimated Monthly Fixed Cost Rs23,586



Projected Profit and Loss

The business will experience modest profits for its first three years of operation. This is due to the fact that the

operations of the organization will be built to scale up over a larger geographic region. In the fourth and fifth years of

operation, this will begin to pay off with healthy profits.This will prove the viability of the business model for a

franchise or statewide expansion.

Direct labor is estimated at 35% of sales revenue (the actual cleaning representing about a 280% markup of the

labor). Direct labor is included in the cost of sales.

Pro Forma Profit and Loss


Sales Rs590,130 Rs737,663 Rs922,078

Direct Cost of Sales Rs208,858 Rs261,072 Rs326,341

Other Costs of Sales Rs0 Rs0 Rs0

Total Cost of Sales Rs208,858 Rs261,072 Rs326,341

Gross Margin Rs381,272 Rs476,590 Rs595,738

Gross Margin % 64.61% 64.61% 64.61%



Expenses

Payroll Rs138,000 Rs160,000 Rs210,000

Marketing/Promotion Rs60,000 Rs70,000 Rs80,000

Depreciation Rs6,000 Rs10,000 Rs12,000

Rent Rs10,200 Rs30,000 Rs40,000

Utilities Rs1,200 Rs2,000 Rs2,500

Insurance Rs3,600 Rs4,000 Rs5,000

Payroll Taxes Rs52,029 Rs63,161 Rs80,451

Website Maintenance/Hosting Rs6,000 Rs7,000 Rs8,000

Other Rs6,000 Rs7,000 Rs8,000

Total Operating Expenses Rs283,029 Rs353,161 Rs445,951

Profit Before Interest and Taxes Rs98,243 Rs123,429 Rs149,787

EBITDA Rs104,243 Rs133,429 Rs161,787

Interest Expense Rs688 Rs0 Rs0

Taxes Incurred Rs29,267 Rs37,029 Rs44,936

Net Profit Rs68,289 Rs86,400 Rs104,851

Net Profit/Sales 11.57% 11.71% 11.37%



Projected Cash Flow

In the first year, cash flow will be supported by start-up funding and full payment by customers in advance Company

vans will be purchased with auto loans. When the business expands to new offices across the county, additional vans

and cleaning equipment must be purchased. These will be financed through debt, including a company credit line.

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales Rs590,130 Rs737,663 Rs922,078

Subtotal Cash from Operations Rs590,130 Rs737,663 Rs922,078

Additional Cash Received

Sales Tax, VAT, HST/GST Received Rs0 Rs0 Rs0

New Current Borrowing Rs0 Rs0 Rs0

New Other Liabilities (interest-free) Rs0 Rs0 Rs0

New Long-term Liabilities Rs0 Rs0 Rs0

Sales of Other Current Assets Rs0 Rs0 Rs0

Sales of Long-term Assets Rs0 Rs0 Rs0

New Investment Received Rs0 Rs0 Rs0

Subtotal Cash Received Rs590,130 Rs737,663 Rs922,078



Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending Rs138,000 Rs160,000 Rs210,000

Bill Payments Rs308,546 Rs516,001 Rs585,861

Subtotal Spent on Operations Rs446,546 Rs676,001 Rs795,861

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out Rs0 Rs0 Rs0

Principal Repayment of Current Borrowing Rs0 Rs0 Rs0

Other Liabilities Principal Repayment Rs0 Rs0 Rs0

Long-term Liabilities Principal Repayment Rs15,000 Rs0 Rs0

Purchase Other Current Assets Rs0 Rs0 Rs0

Purchase Long-term Assets Rs18,000 Rs30,000 Rs30,000

Dividends Rs0 Rs0 Rs0

Subtotal Cash Spent Rs479,546 Rs706,001 Rs825,861

Net Cash Flow Rs110,584 Rs31,662 Rs96,218

Cash Balance Rs140,584 Rs172,245 Rs268,463



Projected Balance Sheet

The net worth of the business will show healthy growth, even while liabilities will increase due to the growth of the

business and the need to purchase additional assets. Liabilities will initially decrease in the second year as accounts

payable from the first large expansion are paid off. After that point, growth will be more even. A cash balance will be

built up with the plan of financing expansion of the business.

Pro Forma Balance Sheet


Assets

Current Assets

Cash Rs140,584 Rs172,245 Rs268,463

Other Current Assets Rs0 Rs0 Rs0

Total Current Assets Rs140,584 Rs172,245 Rs268,463

Long-term Assets

Long-term Assets Rs48,000 Rs78,000 Rs108,000

Accumulated Depreciation Rs6,000 Rs16,000 Rs28,000

Total Long-term Assets Rs42,000 Rs62,000 Rs80,000

Total Assets Rs182,584 Rs234,245 Rs348,463

Liabilities and Capital Year 1 Year 2 Year 3



Current Liabilities

Accounts Payable Rs74,295 Rs39,556 Rs48,923

Current Borrowing Rs0 Rs0 Rs0

Other Current Liabilities Rs0 Rs0 Rs0

Subtotal Current Liabilities Rs74,295 Rs39,556 Rs48,923

Long-term Liabilities Rs0 Rs0 Rs0

Total Liabilities Rs74,295 Rs39,556 Rs48,923

Paid-in Capital Rs77,500 Rs77,500 Rs77,500

Retained Earnings (Rs37,500) Rs30,789 Rs117,190

Earnings Rs68,289 Rs86,400 Rs104,851

Total Capital Rs108,289 Rs194,690 Rs299,540

Total Liabilities and Capital Rs182,584 Rs234,245 Rs348,463

Net Worth Rs108,289 Rs194,690 Rs299,540



Business Ratios

The business will have higher SGA expenses as a ratio of sales compared to the carpet and upholstery cleaning

industry as it requires a more professional, senior-level staff during its first years of operation. These years are key to

establishing the systems and procedures which can be scaled for expansion. SGA as a percentage of sales will drop

to lower than the industry average after this expansion due to the reduction in staff and office overhead allowed by its

Web-based sales model. Savings from this will be put into advertising to support the rapid growth of the business.

Ratio Analysis

Year 1 Year 2 Year 3Industry

Profile

Sales Growth n.a. 25.00% 25.00% -0.71%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 53.59%

Total Current Assets 77.00% 73.53% 77.04% 70.11%

Long-term Assets 23.00% 26.47% 22.96% 29.89%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 40.69% 16.89% 14.04% 37.94%

Long-term Liabilities 0.00% 0.00% 0.00% 54.53%

Total Liabilities 40.69% 16.89% 14.04% 92.47%

Net Worth 59.31% 83.11% 85.96% 7.53%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%



Gross Margin 64.61% 64.61% 64.61% 59.56%

Selling, General & AdministrativeExpenses

53.04% 52.90% 53.24% 28.35%

Advertising Expenses 10.17% 9.49% 8.68% 1

Profit Before Interest and Taxes 16.65% 16.73% 16.24% 8.19%

Main Ratios

Current 1.89 4.35 5.49 1.24

Quick 1.89 4.35 5.49 1.18

Total Debt to Total Assets 40.69% 16.89% 14.04% 92.47%

Pre-tax Return on Net Worth 90.09% 63.40% 50.01% 696.24%

Pre-tax Return on Assets 53.43% 52.69% 42.98% 52.41%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 11.57% 11.71% 11.37% n.a

Return on Equity 63.06% 44.38% 35.00% n.a

Activity Ratios

Accounts Payable Turnover 5.09 12.17 12.17

Payment Days 28 43 27 n.a

Total Asset Turnover 3.23 3.15 2.65 n.a



Debt Ratios

Debt to Net Worth 0.69 0.20 0.16 n.a

Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios

Net Working Capital Rs66,289 Rs132,690 Rs219,540 n.a

Interest Coverage 142.90 0.00 0.00 n.a

Additional Ratios

Assets to Sales 0.31 0.32 0.38

Current Debt/Total Assets 41% 17% 14% n.a

Acid Test 1.89 4.35 5.49

Sales/Net Worth 5.45 3.79 3.08 n.a

Dividend Payout 0.00 0.00 0.00 n.a

Long-term Plan

The business's financial strategy is to grow rapidly to the point where its investment in its website and infrastructure

can be shown to provide much greater revenue than that of the competition's more traditional approach of working

with salaried salespeople. At this point, the business will present a viable model for a second round of equity

financing to move towards a regional and then statewide franchise. At this point there will be the potential for initial

investors to cash out of the business.



Appendix

Personnel Plan

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9Month

10

Month

11

Month

12

CEO Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000



COO Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000

Administrative Assistant/

Manager

Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs3,000 Rs3,000 Rs3,000 Rs3,000 Rs3,000 Rs3,000

Administrative Assistant 2

Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

Total People 2 2 2 2 2 2 3 3 3 3 3 3

Total PayrollRs10,00

0Rs10,00

0Rs10,00

0Rs10,00

0Rs10,00

0Rs10,00

0Rs13,00

0Rs13,00

0Rs13,00

0Rs13,00

0Rs13,00

0Rs13,00

0

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9Month

10Month 11 Month 12

SalesRs11,00

0Rs13,72

0Rs17,11

7Rs21,35

7Rs26,65

4Rs33,27

2Rs41,54

5Rs51,88

6Rs64,81

7Rs80,99

0Rs101,22

5Rs126,54

7

Direct Cost of Sales Rs3,870 Rs4,830 Rs6,030 Rs7,529 Rs9,403Rs11,74

6Rs14,67

8Rs18,34

7Rs22,93

9Rs28,68

8Rs35,889 Rs44,910

Other Costs of Sales


Total Cost of Sales Rs3,870 Rs4,830 Rs6,030 Rs7,529 Rs9,403Rs11,74

6Rs14,67

8Rs18,34

7Rs22,93

9Rs28,68

8Rs35,889 Rs44,910

Gross Margin Rs7,130 Rs8,890Rs11,08

7Rs13,82

8Rs17,25

1Rs21,52

6Rs26,86

7Rs33,53

9Rs41,87

8Rs52,30

2Rs65,336 Rs81,637

Gross Margin % 64.82% 64.80% 64.77% 64.75% 64.72% 64.70% 64.67% 64.64% 64.61% 64.58% 64.55% 64.51%

Expenses

PayrollRs10,00 Rs10,00 Rs10,00 Rs10,00 Rs10,00 Rs10,00 Rs13,00 Rs13,00 Rs13,00 Rs13,00

Rs13,000 Rs13,000



0 0 0 0 0 0 0 0 0 0

Marketing/Promotion

Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000 Rs5,000

Depreciation Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500

Rent Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs1,200 Rs1,200 Rs1,200 Rs1,200 Rs1,200 Rs1,200

Utilities Rs50 Rs50 Rs50 Rs50 Rs50 Rs50 Rs150 Rs150 Rs150 Rs150 Rs150 Rs150

Insurance Rs200 Rs200 Rs200 Rs200 Rs200 Rs200 Rs400 Rs400 Rs400 Rs400 Rs400 Rs400

Payroll Taxes15%


Website Maintenance/Hosting15%


Other Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500 Rs500

Total Operating Expenses Rs19,331 Rs19,475 Rs19,654 Rs19,879 Rs20,160 Rs20,512 Rs25,402 Rs25,952 Rs26,641 Rs27,503 Rs28,583 Rs29,936

Profit Before Interest andTaxes

(Rs12,201) (Rs10,585) (Rs8,567) (Rs6,051) (Rs2,909) Rs1,014 Rs1,465 Rs7,587 Rs15,237 Rs24,799 Rs36,753 Rs51,701

EBITDA (Rs11,701) (Rs10,085) (Rs8,067) (Rs5,551) (Rs2,409) Rs1,514 Rs1,965 Rs8,087 Rs15,737 Rs25,299 Rs37,253 Rs52,201

Interest Expense Rs115 Rs104 Rs94 Rs83 Rs73 Rs63 Rs52 Rs42 Rs31 Rs21 Rs10 Rs0

Taxes Incurred (Rs3,695) (Rs3,207) (Rs2,598) (Rs1,840) (Rs895) Rs285 Rs424 Rs2,264 Rs4,562 Rs7,433 Rs11,023 Rs15,510

Net Profit (Rs8,621) (Rs7,482) (Rs6,063) (Rs4,294) (Rs2,087) Rs666 Rs989 Rs5,282 Rs10,644 Rs17,344 Rs25,720 Rs36,191

Net Profit/Sales -78.37% -54.53% -35.42% -20.11% -7.83% 2.00% 2.38% 10.18% 16.42% 21.42% 25.41% 28.60%

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 Rs11,000 Rs13,720 Rs17,117 Rs21,357 Rs26,654 Rs33,272 Rs41,545 Rs51,886 Rs64,817 Rs80,990 Rs101,225 Rs126,547

Subtotal Cash from Operations Rs11,000 Rs13,720 Rs17,117 Rs21,357 Rs26,654 Rs33,272 Rs41,545 Rs51,886 Rs64,817 Rs80,990 Rs101,225 Rs126,547

Additional Cash Received

Sales Tax, VAT, HST/GSTReceived

0.00% Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

New Current Borrowing Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

New Other Liabilities (interest-

free)


New Long-term Liabilities Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

Sales of Other Current Assets Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

Sales of Long-term Assets Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

New Investment Received Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

Subtotal Cash Received Rs11,000 Rs13,720 Rs17,117 Rs21,357 Rs26,654 Rs33,272 Rs41,545 Rs51,886 Rs64,817 Rs80,990 Rs101,225 Rs126,547

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

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Current Borrowing Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

Other Current Liabilities Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0

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Total Liabilities Rs20,000 Rs22,567 Rs22,845 Rs23,507 Rs24,646 Rs26,383 Rs28,869 Rs32,404 Rs37,001 Rs43,067 Rs50,974 Rs61,188 Rs74,295

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Earnings Rs0 (Rs8,621) (Rs16,103) (Rs22,165) (Rs26,459) (Rs28,547) (Rs27,881) (Rs26,892) (Rs21,610) (Rs10,966) Rs6,379 Rs32,099 Rs68,289

Total Capital Rs40,000 Rs31,379 Rs23,897 Rs17,835 Rs13,541 Rs11,453 Rs12,119 Rs13,108 Rs18,390 Rs29,034 Rs46,379 Rs72,099 Rs108,289

Total Liabilities and Capital Rs60,000 Rs53,946 Rs46,743 Rs41,342 Rs38,187 Rs37,837 Rs40,988 Rs45,513 Rs55,391 Rs72,101 Rs97,353 Rs133,287 Rs182,584

Net Worth Rs40,000 Rs31,379 Rs23,897 Rs17,835 Rs13,541 Rs11,453 Rs12,119 Rs13,108 Rs18,390 Rs29,034 Rs46,379 Rs72,099 Rs108,289

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