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BUSINESS PLAN POLISH SHOP BASIA

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BUSINESS PLAN

POLISH SHOP BASIA

Legal Page

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ in this

business plan is confidential; therefore, reader agrees not to disclose it without the express written

permission of _______________.

It is acknowledged by reader that information to be furnished in this business plan is in all respects

confidential in nature, other than information which is in the public domain through other means

and that any disclosure or use of same by reader, may cause serious harm or damage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________

Signature

___________________

Name (typed or printed)

___________________

Date

This is a business plan. It does not imply an offering of securities.

Table of Contents

Page 1

1.0 Executive Summary .................................................................................................................... 1 Chart: Highlights .......................................................................................................................... 2

1.1 Objectives .................................................................................................................................... 2 1.2 Mission .......................................................................................................................................... 3 1.3 Keys to Success ........................................................................................................................ 3

2.0 Company Summary ..................................................................................................................... 3 2.2 Start-up Summary ................................................................................................................... 4 Table: Start-up .............................................................................................................................. 4 Chart: Start-up ............................................................................................................................. 4

3.0 Products and Services ................................................................................................................ 5 4.0 Market Analysis Summary ........................................................................................................ 5 5.1 SWOT Analysis .......................................................................................................................... 5 5.1.1 Strengths ............................................................................................................................. 5 5.1.2 Weaknesses ........................................................................................................................ 5 5.1.3 Opportunities ..................................................................................................................... 6 5.1.4 Threats ................................................................................................................................. 6

5.2 Competitive Edge ..................................................................................................................... 6 5.3 Marketing Strategy .................................................................................................................. 6 5.4 Sales Strategy ........................................................................................................................... 7 5.4.1 Sales Forecast.................................................................................................................... 7 Table: Sales Forecast ............................................................................................................. 7 Chart: Sales Monthly .............................................................................................................. 7 Chart: Sales by Year ............................................................................................................... 8

6.0 Management Summary .............................................................................................................. 8 6.1 Personnel Plan ........................................................................................................................... 8 Table: Personnel ........................................................................................................................... 8

7.0 Financial Plan ................................................................................................................................. 9 7.1 Start-up Funding ...................................................................................................................... 9 Table: Start-up Funding ............................................................................................................ 9

7.2 Break-even Analysis .............................................................................................................. 10 Table: Break-even Analysis .................................................................................................... 10 Chart: Break-even Analysis ................................................................................................... 10

7.4 Projected Profit and Loss ..................................................................................................... 11 Table: Profit and Loss ............................................................................................................... 11 Chart: Profit Monthly ................................................................................................................ 12 Chart: Profit Yearly .................................................................................................................... 12 Chart: Gross Margin Monthly ................................................................................................. 13 Chart: Gross Margin Yearly .................................................................................................... 13

7.5 Projected Cash Flow .............................................................................................................. 14 Table: Cash Flow ........................................................................................................................ 14 Chart: Cash .................................................................................................................................. 15

7.6 Projected Balance Sheet ...................................................................................................... 15 Table: Balance Sheet ................................................................................................................ 15

Table: Sales Forecast ......................................................................................................................... 1

Table of Contents

Page 2

Table: Personnel ................................................................................................................................... 2 Table: Personnel ................................................................................................................................... 2 Table: Profit and Loss ......................................................................................................................... 3 Table: Profit and Loss ......................................................................................................................... 3 Table: Cash Flow .................................................................................................................................. 5 Table: Cash Flow .................................................................................................................................. 5 Table: Balance Sheet .......................................................................................................................... 7 Table: Balance Sheet .......................................................................................................................... 7

Sklep Basia Business Plan

Page 1

1.0 Executive Summary

Polish Shop Basia is located in the heart of Willesden Green - highly Polish-populated area in

the North West London. The offer of the company includes Polish Shop & Take-away - big

variety of fresh products and homemade meals:

General food products

Fresh bakery

Polish meat and milk products

Fruit and vegetables

Alcohol & Tobacco

Cosmetics & drugs

Confectionery and desserts

Additionally the shop offers worldwide money transfers for its customers.

Strategic Plan of set up and development of the company assumes that thanks to employing

different tools in order to attract customers, the business will be an efficient and successful

enterprise in a short time period. By providing customers with the highest quality of services

and variety of offer as well as great and friendly atmosphere, the company will achieve high

position on the local, regional and in the future also national market. Additionally, our main

competitive advantages include great location, friendly and enchanting interior and competent service.

We believe that Polish Shop Basia will maintain its current position as well as achieve further

achieve prestige and recognition among its customers who will appreciate the unique soul of the place.

Sklep Basia Business Plan

Page 2

Chart: Highlights

Sales

Gross Margin

Net Profit

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

Year 1 Year 2 Year 3

Highlights

1.1 Objectives

The owner of the restaurant is a person who has clear objectives and always tries to achieve

set out targets. The current objective, as well as a life dream is to continue the high standard

and further develop the already existing Polish Shop Basia. Based on the previous owner

experience and current profitable nature of the business, the owners believe that by allowing the business to grow they will achieve both the financial and personal targets.

The Polish Shop Basia offers a range of products and services targeting different consumer group. The range of products on offer includes:

General Polish Food products

Original Polish alcohol & tobacco

Fruit and vegetables

Fresh Bakery ( Including in-house baked buns)

Meat and milk products

cosmetics and drugs

Apart from that the shop also offers a range of money transfer possibilities to all over the world.

After receiving the licence from council, the owners are also planning to extend the shop and

create a kitchen for preparing home-made Polish food to be sold to the individuals as well as a

wholesale to other Polish shops.

Sklep Basia Business Plan

Page 3

To summarise, the main objectives of the company are:

Sale of high quality, fresh Polish food, meats and confectionery products Offering Money transfer services to various customers Introduction and development of fresh homemade food production and wholesale Improvement of services and growth of sales in the first year of existing of a company

and constant growth of profit margin

1.2 Mission

Mission of the company is to continue selling Polish and International products, so much missed

by Polish emigrants living in the UK as well as other clients. The company will offer customers

the highest quality of products at reasonable prices.

1.3 Keys to Success

1.3 Keys to Success

High quality products with unique Polish taste Guaranteed daily fresh products Competitive prices Good location - Willesden Green area with high number of Polish population For Polish community -great opportunity to buy polish products Getting new contracts with wholesalers and up-keeping of profitable contracts, which will

guarantee lower prices and higher profit margin

Providing home made food and getting contracts for distribution among other Polish

2.0 Company Summary

Owner of the company Ewa Abramczyk - Sadowska, experienced business owner in the retail

area. Having previously owned various retail businesses in Poland, she believes that her

experience and passion will make the business a great success. The legal status of the firm is

Limited company.

Sklep Basia Business Plan

Page 4

2.2 Start-up Summary

The following table and chart illustrates projected initial start-up costs for the firm.

Table: Start-up

Start-up

Requirements

Start-up Expenses Legal 3,500 Products/ Purchases 5,000 Insurance 1,000 Rent Deposit 2,880 Licence 600 Total Start-up Expenses 12,980

Start-up Assets Cash Required 0 Other Current Assets 85,000 Fixed Assets 0 Total Assets 85,000

Total Requirements 97,980

Chart: Start-up

Sklep Basia Business Plan

Page 5

3.0 Products and Services

The offer of the Shop includes the following products and services:

Polish food products and confectionery

Polish alcohols

Fresh fruit and vegetables

Fresh bakery

Cosmetics and drugs

Meat and milk products

Cigarettes & tobacco

Additionally at the end of calendar year the owners are also planning to open an in house food

production and delivery to other shops and companies.

4.0 Market Analysis Summary

The customer base will include both Polish & English-speaking members of local community, as

well as those from other parts of London looking for fresh and tasty food. The further

development of in-house kitchen and take away will enable both individuals and other shop

owners to purchase homemade food on daily basis.

5.1 SWOT Analysis

5.1.1 Strengths

The main Strength of the company is wide experience of its employees in the foodstuff field,

ability of properly presenting and selling the products and quality customer service and high

interpersonal and communicative skills. Also previous experience of the owners in running a

business will have a key role in making the company a success. Another Strength is the location

of the business in a very attractive area and the premises itself adapted to this kind of the

business. Also the existing customer base of the shop will have significant impact on its future wellbeing and development.

5.1.2 Weaknesses

Limited financial resources are the main weakness of the business.

Sklep Basia Business Plan

Page 6

5.1.3 Opportunities

Big chances for success result from growing number of Polish society in the area and positive

initial response of the remaining part of society thanks to high quality and reasonable pricing of

offered products. Opportunities of quick and effective marketing actions can attract a large

number of customers which will determine company's success.

Other opportunities include:

Receiving more financial means for investment

Growth of range of services by entering local catering market

Constant growth of demand for those services and products

Better condition of the material situation of the society

Creating positive image of the company

Keeping prices at the steady level

High quality of offered services

Expansion of services after receiving the licence for the food production

5.1.4 Threats

Reserved approach of other nationals from trying out new flavours

Entering the market by new or big growth of existing competitors

Lack of sufficient funds for whole investment

Possibility of losing existing customers

5.2 Competitive Edge

Our competitive edge is a combination of our unique services, outstanding location, and our

interaction with our clients. By depending on the existing customer base as well as building up

a new one we believe that we can achieve the success matching expectations of this business

plan. Our clients will come to depend on our unique services and products.

5.3 Marketing Strategy

As Polish Shop Basia is an existing establishment with a significant number of customer base so

not too much investment in the marketing and advertising would be needed. Only in the third

month of trading, when the owners are planning to introduce home made food available for

take away, they will conduct a small marketing campaign to promote new services. Polish Shop

Basia plans to advertise its new services through newspaper and magazine articles, focusing

primarily on entertainment and lifestyle publications as well as contacting directly shop owners

and ordering teams. In addition the establishment will run ads in local journals and plans to put

up four billboard advertisements as well as Polish-oriented media. Believing that mouth-to-

mouth marketing is one of the main sources of customers the owners will build a strong

reputation and create customer loyalty.

Sklep Basia Business Plan

Page 7

5.4 Sales Strategy

As the table shows, Polish Shop Basia plans to deliver sales of approximately 350,000 in the

current year, 390 thousand in the second year, and 440,000 in the third year following this

plan.

5.4.1 Sales Forecast

The following chart and table show our present sales forecast. We project sales to grow

approximately 10 percent in the first year, then increase again by ten percent in the second

year followed up by another ten percent growth in third year.

Table: Sales Forecast

Sales Forecast

Year 1 Year 2 Year 3

Sales General Food Products 54,900 60,000 66,500 Meat and Milk Products 305,000 335,000 370,000 Bakery Products 11,700 13,000 15,000 Fruit and vegetables 4,250 5,000 6,000 Alcohol & Tobacco 53,500 59,000 65,000 Cosmetics and drugs 6,000 6,600 7,300 Money Transfer 44,500 49,000 55,000 Home made food 410,000 450,000 500,000 Total Sales 889,850 977,600 1,084,800

Direct Cost of Sales Year 1 Year 2 Year 3 Shop goods 174,000 190,000 210,000 Take-away ingredients 180,000 200,000 230,000 Subtotal Direct Cost of Sales 354,000 390,000 440,000

Chart: Sales Monthly

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

Sklep Basia Business Plan

Page 8

Chart: Sales by Year

General Food Products

Meat and Milk Products

Bakery Products

Fruit and vegetables

Alcohol

Cosmetics and drugs

Money Transfer

Home made food

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

Year 1 Year 2 Year 3

Sales by Year

6.0 Management Summary

GOOD FOOD management consists of the following full-time employees:

Front House sales people

2 Chefs

2 Kitchen Porters

There will also be a part time driver employed for the delivery services.

The book-keeping and accounting services will be outsourced to third party company or individual.

6.1 Personnel Plan

The following table shows the Personnel Plan for Polish Shop Basia.

Table: Personnel

Personnel Plan

Year 1 Year 2 Year 3

Sales Assistants 57,600 64,000 70,000 Chef 23,400 28,000 35,000 Kitchen Porter 19,800 25,000 30,000 Delivery Driver 4,500 6,000 8,000

Sklep Basia Business Plan

Page 9

Total People 9 9 9

Total Payroll 105,300 123,000 143,000

7.0 Financial Plan

The following subtopics help present the financial plan for Polish Shop Basia.

7.1 Start-up Funding

Polish Shop Basia start-up costs are detailed above, in the Start-up Table. The following table shows how these start-up costs will be funded by owner and investor capital.

Table: Start-up Funding

Start-up Funding Start-up Expenses to Fund 12,980 Start-up Assets to Fund 85,000 Total Funding Required 97,980

Assets Non-cash Assets from Start-up 85,000 Cash Requirements from Start-up 0 Additional Cash Raised 0 Cash Balance on Starting Date 0 Total Assets 85,000

Liabilities and Capital

Liabilities Current Borrowing 0 Fixed Liabilities 0 Accounts Payable (Outstanding Bills) 0 Other Current Liabilities (interest-free) 0 Total Liabilities 0

Capital

Planned Investment Owner 0 Investor 0 Additional Investment Requirement 97,980 Total Planned Investment 97,980

Loss at Start-up (Start-up Expenses) (12,980) Total Capital 85,000

Total Capital and Liabilities 85,000

Total Funding 97,980

Sklep Basia Business Plan

Page 10

7.2 Break-even Analysis

Our break-even analysis is based on our cost and price structure at present. As we grow, the fixed costs will grow in proportion to our employee numbers.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even 17,085

Assumptions: Average Percent Variable Cost 40% Estimated Monthly Fixed Cost 10,288

Chart: Break-even Analysis

0

2,000

4,000

6,000

8,000

10,000

(2,000)

(4,000)

(6,000)

(8,000)

(10,000)

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

30,000

33,000

Break-even Analysis

Sklep Basia Business Plan

Page 11

7.4 Projected Profit and Loss

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales 889,850 977,600 1,084,800 Direct Cost of Sales 354,000 390,000 440,000 Other Costs of Sales 0 0 0 Total Cost of Sales 354,000 390,000 440,000

Gross Margin 535,850 587,600 644,800 Gross Margin % 60.22% 60.11% 59.44%

Expenses Payroll 105,300 123,000 143,000 Marketing/Promotion 700 500 500 Depreciation 0 0 0 Rent 11,520 12,000 13,000 Rates 2,940 3,000 3,000 Utilities 2,640 3,000 3,500 Telephone and Broadband 360 500 700

Total Operating Expenses 123,460 142,000 163,700

Profit Before Interest and Taxes 412,390 445,600 481,100 EBITDA 412,390 445,600 481,100 Interest Expense 0 0 0 Taxes Incurred 123,717 133,680 144,330

Other Income Other Income Account Name 0 0 0 Other Income Account Name 0 0 0 Total Other Income 0 0 0

Other Expense Other Expense Account Name 0 0 0 Other Expense Account Name 0 0 0 Total Other Expense 0 0 0

Net Other Income 0 0 0 Net Profit 288,673 311,920 336,770 Net Profit/Sales 32.44% 31.91% 31.04%

Sklep Basia Business Plan

Page 12

Chart: Profit Monthly

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

32,000

36,000

40,000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Profit Monthly

Chart: Profit Yearly

0

40,000

80,000

120,000

160,000

200,000

240,000

280,000

320,000

Year 1 Year 2 Year 3

Profit Yearly

Sklep Basia Business Plan

Page 13

Chart: Gross Margin Monthly

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Gross Margin Monthly

Chart: Gross Margin Yearly

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Year 1 Year 2 Year 3

Gross Margin Yearly

Sklep Basia Business Plan

Page 14

7.5 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations Cash Sales 889,850 977,600 1,084,800 Subtotal Cash from Operations 889,850 977,600 1,084,800

Additional Cash Received Non Operating (Other) Income 0 0 0 VAT Received (Output Tax) 133,478 146,640 162,720 VAT Repayments 0 0 0 New Current Borrowing 0 0 0 New Other Liabilities (interest-free) 0 0 0 New Fixed Liabilities 0 0 0 Sales of Other Current Assets 0 0 0 Sales of Fixed Assets 0 0 0 New Investment Received 0 0 0 Subtotal Cash Received 1,023,328 1,124,240 1,247,520

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations Cash Spending 601,177 665,680 748,030 Bill Payments 0 0 0 Subtotal Spent on Operations 601,177 665,680 748,030

Additional Cash Spent Non Operating (Other) Expense 0 0 0 VAT Paid Out (Input Tax) 54,969 60,425 68,095 VAT Payments 70,961 93,763 94,625 Principal Repayment of Current Borrowing 0 0 0 Other Liabilities Principal Repayment 0 0 0 Fixed Liabilities Principal Repayment 0 0 0 Purchase Other Current Assets 0 0 0 Purchase Fixed Assets 0 0 0 Dividends 0 0 0 Subtotal Cash Spent 727,107 819,868 910,750

Net Cash Flow 296,221 304,372 336,770 Cash Balance 296,221 600,593 937,363

Sklep Basia Business Plan

Page 15

Chart: Cash

Net Cash Flow

Cash Balance

0

30,000

60,000

90,000

120,000

150,000

180,000

210,000

240,000

270,000

300,000

Mo

nth

1

Mo

nth

2

Mo

nth

3

Mo

nth

4

Mo

nth

5

Mo

nth

6

Mo

nth

7

Mo

nth

8

Mo

nth

9

Mo

nth

1

0

Mo

nth

1

1

Mo

nth

1

2

Cash

7.6 Projected Balance Sheet

The table shows the annual balance sheet results, with a healthy projected increase in net

worth. Detailed monthly projections are in the appendix.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets Cash 296,221 600,593 937,363 Other Current Assets 85,000 85,000 85,000 Total Current Assets 381,221 685,593 1,022,363

Fixed Assets Fixed Assets 0 0 0 Accumulated Depreciation 0 0 0 Total Fixed Assets 0 0 0 Total Assets 381,221 685,593 1,022,363

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities Accounts Payable 0 0 0 Current Borrowing 0 0 0 Other Current Liabilities 7,548 0 0 Subtotal Current Liabilities 7,548 0 0

Sklep Basia Business Plan

Page 16

Fixed Liabilities 0 0 0 Total Liabilities 7,548 0 0

Paid-in Capital 97,980 97,980 97,980 Retained Earnings (12,980) 275,693 587,613 Earnings 288,673 311,920 336,770 Total Capital 373,673 685,593 1,022,363 Total Liabilities and Capital 381,221 685,593 1,022,363

Net Worth 373,673 685,593 1,022,363

Appendix

Page 1

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 VAT Rate General Food Products 15.00% 3,200 3,200 4,000 6,000 5,000 4,000 4,500 5,000 5,000 5,000 5,000 5,000 Meat and Milk Products 15.00% 20,000 20,000 25,000 35,000 25,000 20,000 30,000 30,000 25,000 25,000 25,000 25,000 Bakery Products 15.00% 900 900 900 1,400 1,000 900 950 950 950 950 950 950 Fruit and vegetables 15.00% 300 300 300 500 400 350 350 350 350 350 350 350 Alcohol & Tobacco 15.00% 4,000 4,000 4,000 6,000 5,000 4,000 4,500 4,500 4,500 4,000 4,500 4,500 Cosmetics and drugs 15.00% 500 500 500 500 500 500 500 500 500 500 500 500 Money Transfer 15.00% 3,000 3,000 3,000 5,000 3,000 2,500 4,000 4,000 5,000 4,000 4,000 4,000 Home made food 15.00% 0 0 0 50,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 Total Sales 31,900 31,900 37,700 104,400 84,900 77,250 89,800 90,300 86,300 84,800 85,300 85,300

Direct Cost of Sales VAT Rate Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Shop goods 15.00% 14,000 14,000 14,000 18,000 16,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 Take-away ingredients 15.00% 0 0 0 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Subtotal Direct Cost of Sales 14,000 14,000 14,000 38,000 36,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000

Appendix

Page 2

Table: Personnel

Personnel Plan

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

Sales Assistants 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800

Chef 0 0 0 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600

Kitchen Porter 0 0 0 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200

Delivery Driver 0 0 0 500 500 500 500 500 500 500 500 500

Total People 4 4 4 9 9 9 9 9 9 9 9 9

Total Payroll 4,800 4,800 4,800 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100

Appendix

Page 3

Table: Profit and Loss

Pro Forma Profit and Loss

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

Sales VAT Rate 31,900 31,900 37,700 104,400 84,900 77,250 89,800 90,300 86,300 84,800 85,300 85,300 Direct Cost of Sales 14,000 14,000 14,000 38,000 36,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000

Other Costs of Sales 15.00% 0 0 0 0 0 0 0 0 0 0 0 0 Total Cost of Sales

14,000 14,000 14,000 38,000 36,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000

Gross Margin 17,900 17,900 23,700 66,400 48,900 43,250 55,800 56,300 52,300 50,800 51,300 51,300

Gross Margin % 56.11% 56.11% 62.86% 63.60% 57.60% 55.99% 62.14% 62.35% 60.60% 59.91% 60.14% 60.14%

Expenses VAT Rate Payroll

4,800 4,800 4,800 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100 10,100

Marketing/Promotion 15.00% 0 0 0 500 100 100 0 0 0 0 0 0 Depreciation 0 0 0 0 0 0 0 0 0 0 0 0

Rent 15.00% 960 960 960 960 960 960 960 960 960 960 960 960 Rates 0.00% 245 245 245 245 245 245 245 245 245 245 245 245 Utilities 0.00% 220 220 220 220 220 220 220 220 220 220 220 220 Telephone and Broadband 10.00% 30 30 30 30 30 30 30 30 30 30 30 30

Total Operating Expenses VAT Rate 6,255 6,255 6,255 12,055 11,655 11,655 11,555 11,555 11,555 11,555 11,555 11,555

Profit Before Interest and Taxes 11,645 11,645 17,445 54,345 37,245 31,595 44,245 44,745 40,745 39,245 39,745 39,745

EBITDA 11,645 11,645 17,445 54,345 37,245 31,595 44,245 44,745 40,745 39,245 39,745 39,745

Interest Expense 0 0 0 0 0 0 0 0 0 0 0 0

Taxes Incurred 3,494 3,494 5,234 16,304 11,174 9,479 13,274 13,424 12,224 11,774 11,924 11,924

Other Income

Other Income Account Name 15.00% 0 0 0 0 0 0 0 0 0 0 0 0 Other Income Account Name 15.00% 0 0 0 0 0 0 0 0 0 0 0 0 Total Other Income 0 0 0 0 0 0 0 0 0 0 0 0

Other Expense Other Expense Account Name 15.00% 0 0 0 0 0 0 0 0 0 0 0 0 Other Expense Account Name 15.00% 0 0 0 0 0 0 0 0 0 0 0 0 Total Other Expense 0 0 0 0 0 0 0 0 0 0 0 0

Net Other Income 0 0 0 0 0 0 0 0 0 0 0 0

Net Profit

8,152 8,152 12,212 38,042 26,072 22,117 30,972 31,322 28,522 27,472 27,822 27,822

Net Profit/Sales 25.55% 25.55% 32.39% 36.44% 30.71% 28.63% 34.49% 34.69% 33.05% 32.40% 32.62% 32.62%

Appendix

Page 4

Appendix

Page 5

Table: Cash Flow

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 31,900 31,900 37,700 104,400 84,900 77,250 89,800 90,300 86,300 84,800 85,300 85,300

Subtotal Cash from Operations 31,900 31,900 37,700 104,400 84,900 77,250 89,800 90,300 86,300 84,800 85,300 85,300

Additional Cash Received VAT Rate

Non Operating (Other) Income 0 0 0 0 0 0 0 0 0 0 0 0

VAT Received (Output Tax) 4,785 4,785 5,655 15,660 12,735 11,588 13,470 13,545 12,945 12,720 12,795 12,795

VAT Repayments 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 Fixed Liabilities 0 0 0 0 0 0 0 0 0 0 0 0

Sales of Other Current Assets 15.00% 0 0 0 0 0 0 0 0 0 0 0 0 Sales of Fixed Assets 15.00% 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 36,685 36,685 43,355 120,060 97,635 88,838 103,270 103,845 99,245 97,520 98,095 98,095

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 23,749 23,749 25,489 66,359 58,829 55,134 58,829 58,979 57,779 57,329 57,479 57,479

Bill Payments 0 0 0 0 0 0 0 0 0 0 0 0

Subtotal Spent on Operations

23,749 23,749 25,489 66,359 58,829 55,134 58,829 58,979 57,779 57,329 57,479 57,479

Additional Cash Spent VAT Rate Non Operating (Other) Expense 0 0 0 0 0 0 0 0 0 0 0 0

VAT Paid Out (Input Tax) 2,247 2,247 2,247 5,922 5,562 5,262 5,247 5,247 5,247 5,247 5,247 5,247

VAT Payments 0 2,538 2,538 3,408 9,738 7,173 6,326 8,223 8,298 7,698 7,473 7,548

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

Fixed Liabilities Principal Repayment 0 0 0 0 0 0 0 0 0 0 0 0

Purchase Other Current Assets 15.00% 0 0 0 0 0 0 0 0 0 0 0 0 Purchase Fixed Assets 15.00% 0 0 0 0 0 0 0 0 0 0 0 0 Dividends

0 0 0 0 0 0 0 0 0 0 0 0

Subtotal Cash Spent 25,996 28,534 30,274 75,689 74,129 67,569 70,401 72,449 71,324 70,274 70,199 70,274

Appendix

Page 6

Net Cash Flow 10,690 8,152 13,082 44,372 23,507 21,269 32,869 31,397 27,922 27,247 27,897 27,822

Cash Balance 10,690 18,841 31,923 76,294 99,801 121,070 153,939 185,335 213,257 240,503 268,400 296,221

Appendix

Page 7

Table: Balance Sheet

Pro Forma Balance Sheet

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

Assets Starting Balances

Current Assets Cash 0 10,690 18,841 31,923 76,294 99,801 121,070 153,939 185,335 213,257 240,503 268,400 296,221 Other Current Assets 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 85,000 Total Current Assets 85,000 95,690 103,841 116,923 161,294 184,801 206,070 238,939 270,335 298,257 325,503 353,400 381,221

Fixed Assets

Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 Accumulated Depreciation 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Assets 85,000 95,690 103,841 116,923 161,294 184,801 206,070 238,939 270,335 298,257 325,503 353,400 381,221

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

Current Liabilities Accounts Payable 0 0 0 0 0 0 0 0 0 0 0 0 0 Current Borrowing 0 0 0 0 0 0 0 0 0 0 0 0 0 Other Current Liabilities 0 2,538 2,538 3,408 9,738 7,173 6,326 8,223 8,298 7,698 7,473 7,548 7,548 Subtotal Current Liabilities 0 2,538 2,538 3,408 9,738 7,173 6,326 8,223 8,298 7,698 7,473 7,548 7,548

Fixed Liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Liabilities 0 2,538 2,538 3,408 9,738 7,173 6,326 8,223 8,298 7,698 7,473 7,548 7,548

Paid-in Capital 97,980 97,980 97,980 97,980 97,980 97,980 97,980 97,980 97,980 97,980 97,980 97,980 97,980 Retained Earnings (12,980) (12,980) (12,980) (12,980) (12,980) (12,980) (12,980) (12,980) (12,980) (12,980) (12,980) (12,980) (12,980) Earnings 0 8,152 16,303 28,515 66,556 92,628 114,744 145,716 177,037 205,559 233,030 260,852 288,673 Total Capital 85,000 93,152 101,303 113,515 151,556 177,628 199,744 230,716 262,037 290,559 318,030 345,852 373,673 Total Liabilities and Capital 85,000 95,690 103,841 116,923 161,294 184,801 206,070 238,939 270,335 298,257 325,503 353,400 381,221

Net Worth 85,000 93,152 101,303 113,515 151,556 177,628 199,744 230,716 262,037 290,559 318,030 345,852 373,673