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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

1.0 Executive Summary .................................................................................................................... 1 Chart: Highlights .......................................................................................................................... 1 1.1 Objectives.................................................................................................................................... 1 1.2 Mission .......................................................................................................................................... 2 1.3 Keys to Success ........................................................................................................................ 2 2.0 Company Summary ..................................................................................................................... 2 2.1 Company Ownership ............................................................................................................... 2 2.2 Start-up Summary ................................................................................................................... 3 Table: Start-up.............................................................................................................................. 3 Chart: Start-up ............................................................................................................................. 4 3.0 Products and Services ................................................................................................................ 4 4.0 Market Analysis Summary ........................................................................................................ 5 4.1 Market Segmentation ............................................................................................................. 5 Table: Market Analysis ............................................................................................................... 6 Chart: Market Analysis (Pie) .................................................................................................... 6 4.2 Target Market Segment Strategy ...................................................................................... 7 4.3 Service Business Analysis ..................................................................................................... 7 4.3.1 Competition and Buying Patterns .............................................................................. 7 5.0 Strategy and Implementation Summary ............................................................................ 7 5.1 Sales Strategy ........................................................................................................................... 8 5.1.1 Sales Forecast.................................................................................................................... 8 Table: Sales Forecast ............................................................................................................. 8 Chart: Sales Monthly .............................................................................................................. 9 Chart: Sales by Year ............................................................................................................... 9 5.2 Milestones.................................................................................................................................. 10 Table: Milestones ....................................................................................................................... 10 Chart: Milestones ....................................................................................................................... 10 6.0 Management Summary ............................................................................................................ 10 6.1 Personnel Plan ......................................................................................................................... 11 Table: Personnel ......................................................................................................................... 11 7.0 Financial Plan ............................................................................................................................... 11 7.1 Start-up Funding .................................................................................................................... 11 7.2 Important Assumptions ....................................................................................................... 12 Page 1


Table of Contents

7.3 Break-even Analysis .............................................................................................................. 12 Table: Break-even Analysis.................................................................................................... 12 Chart: Break-even Analysis ................................................................................................... 13 7.4 Projected Profit and Loss ..................................................................................................... 14 Table: Profit and Loss ............................................................................................................... 14 Chart: Profit Monthly ................................................................................................................ 15 Chart: Profit Yearly .................................................................................................................... 15 Chart: Gross Margin Monthly................................................................................................. 16 Chart: Gross Margin Yearly .................................................................................................... 16 7.5 Projected Cash Flow .............................................................................................................. 17 Table: Cash Flow ........................................................................................................................ 17 Chart: Cash .................................................................................................................................. 18 7.6 Projected Balance Sheet ...................................................................................................... 19 Table: Balance Sheet ................................................................................................................ 19 7.7 Business Ratios ....................................................................................................................... 19 Table: Ratios ................................................................................................................................ 19 Table: Sales Forecast ......................................................................................................................... 1 Table: Personnel ................................................................................................................................... 2 Table: Personnel ................................................................................................................................... 2 Table: Profit and Loss ......................................................................................................................... 3 Table: Profit and Loss ......................................................................................................................... 3 Table: Cash Flow .................................................................................................................................. 4 Table: Cash Flow .................................................................................................................................. 4 Table: Balance Sheet .......................................................................................................................... 6 Table: Balance Sheet .......................................................................................................................... 6

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Maxie Consulting

1.0 Executive Summary Welcome to the future of event planning! Maxie Consulting, The Event Planning Specialists, brings to the community of Portland a new breath of air in the event planning market. By combining old fashioned values, going the extra mile, and using cutting edge event-planning software, Maxie Consulting will lead the market, providing the same quality results, every time. Maxie Consulting is an equal opportunity business making its expertise and its products available to help its customers plan their own events. Party Packs (complete kits for their event), make hosting a party a snap, right down to the refreshments. The event planning software brings interactive event planning as close as their personal computer. Through these and other affordable products and services, Maxie Consulting aims to be the number one resource for any event.

Chart: Highlights

1.1 Objectives Maxie Consulting is a small business aimed at the big time. In order to reach its lofty goals, Maxie Consulting must focus on the mission behind the vision. It will take all the employees, owners, founders, and vendors daily living the vision that Maxie Consulting represents. The vision manifests itself in three ways: 1. Be one of the top three event planning specialists in the Northwestern United States. 2. Justly compensate the employees, owners, and founders of Maxie Consulting. 3. Produce the same quality results, every time.

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Maxie Consulting

1.2 Mission In an ever changing, fast-paced world, success is determined by good choices for lasting effects. Communication is essential. Occasions strives to be the best choice of clients by helping to ease their event planning burden. Through consistent, predictable professionalism, Maxie Consulting will ensure a worry and hassle-free event at a reasonable price. But, not all our clients will be external. Maxie Consulting has internal clients to serve. Maxie Consulting will strive to provide the same predictable and professional working environment to its employees and contracted vendors, justly compensating them for their services. It is also a priority to make a comfortable living wage for its owners, founders, full-time staff, and their families. Keeping in tune with the needs of the market, utilizing the latest technology and trends, all while ensuring the client receives the individual attention they deserve, is the vision and daily mission of Maxie Consulting; The Event Planning Specialists. 1.3 Keys to Success Our keys to success include the commitment to quality by every person who is part of the team. Each of us will be responsible to push ourselves to a higher level of professionalism in three areas: 1. Consistent, accurate fulfillment of the client's wishes. 2. Competitive pricing for the quality of services offered. 3. Significant profit made on each event planned. 2.0 Company Summary Founded originallyl on a part-time basis, Maxie Consulting is a small business designed to meet the needs of the ever changing social world. Portland, Oregon is the current home with plans to expand to branch offices within four years. Occasions' staff of two, with numerous contract vendors, plans events, writes event-planning products, and trains area students in the art of event planning. Maxie Consulting is invested in the community it resides in. Maxie Consulting is, in part, the answer to demands of the social world, on the working family, heavily-burdened office, out-of-town business, or special occasion in need of special recognition. As a business, we understand the needs of public and private organizations. As parents and family members, we understand the needs of setting special time apart from other events in our lives. Maxie Consulting strives to accomplish these goals, in Portland and eventually other areas of the Pacific Northwest. 2.1 Company Ownership Maxie Consulting is established as a sole proprietorship with the intention of selling the business when it is established to one of the employees invested in the vision of event planning. All aspects of the business will be documented to ensure clients can count on the same results every time. It is these documents that will become the basis of ownership. The sole proprietor will use his or her name as the guarantor of each service. Therefore, the sole proprietor must embody the vision and mission of Maxie Consulting.

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2.2 Start-up Summary Through careful planning on the part of the founders, the start-up costs for Maxie Consulting are minimal. It began as a home-based business with little overhead, and it continues to demand fewer outlay of funds as a service-based business. The start-up cost investment funds were assets saved from prior earnings by the owners who did event planning on a part-time basis before establishing themselves as a business. It is the wish of the founders to remain a debt-free establishment. However, recognizing that in reality not all variables are controllable, outside financing is a viable option. Both founders own homes and have a perfect credit rating. Table: Start-up

Start-up Requirements Start-up Expenses Legal Stationery etc. Brochures Consultants Insurance Rent Expensed Equipment Other Total Start-up Expenses

$200 $300 $185 $200 $145 $150 $1,985 $200 $3,365

Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets

$2,300 $0 $0 $0 $2,300

Total Requirements

$5,665

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Maxie Consulting

Chart: Start-up

3.0 Products and Services Although Maxie Consulting is primarily a service business, we also offer products to aid our customers in planning the event themselves. The following products are tools used inside our operation for the best possible results: 1. Party Pack The Party Pack is a complete kit for any party. It includes decorations, lighting effects guide, disposable theme cameras, cutlery, plates, napkins, cups, punch mix (or recipe), snack supplies (or recipe), tablecloths, theme music (where applicable), invitations, thank-you cards, and a step-by-step guide to planning, putting together,and hosting the event. 2. Step-by-Step Guides These booklets include a calendar to map out the event, a step-by-step guide on what is needed for and how to put together a successful, worry-free event, resource information, popular refreshments with recipes, games, and tips to put their event in the record books. The events available include birthdays for all ages, meetings, retreats, parties, vacations, and special occasion celebrations such as graduations, holidays, showers, weddings, and receptions. 3. Event Planning Software Due to be released June 2000, this cutting-edge tool will allow the client all the resources and visual aids for their event planning. They will be able to play with decoration themes, listen to theme music, design invitations, thank-you cards, and RSVP cards, use the interactive planning calendar, and much more. This software will bring their event into the millennium with cutting edge technology that is designed to save time and money. 4. Resources Manual This valuable guide acts as a review for all the resources located in the surrounding area. A ranking is given to the various services, such as caterers, decorators, disc jockeys, bands, and facilities. This manual gives the client the freedom of making a choice based on experience.

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Maxie Consulting

Free Event Planners Training for High School and College Students As a member of the Portland community, it is our mission to support our community. Ten hours each month will be devoted to training area students in event planning. This will aid them in planning proms, graduation parties, river clean-ups, homecoming, and other important events. This is a priority of Maxie Consulting. It will not be cut back as the business grows. Maxie Consulting provides event planning in a wide range of applications. We guarantee satisfaction in the areas of appearance, performance, and taste. The following is a sampling of the types of events we plan every year: 1. 2. 3. 4. 5.

Meetings, Trainings, and Retreats. Conferences and Workshops. Birthdays, Anniversaries, Graduations and Holidays. Weddings, Receptions, and Showers. Company picnics, banquets, and award ceremonies.

.....and any other event that needs to be planned. 4.0 Market Analysis Summary The following sections describe the market segmentation, strategies, and industry analysis. 4.1 Market Segmentation The breakdown of the market for event planning, falls in a wide, very diverse grouping. Individuals as well as organizations demand the services we provide. In order to provide the greatest depth of information, the market segments have been broken down into private and public organizations, and age groups. 1. Private Organizations and Businesses Private organizations make up the single largest portion of Occasions' client base. Private organizations such as businesses, corporations, and political parties host the most events on the largest scales, therefore, these events generate larger revenues per event. The majority of larger scale holiday functions will fall under this segment. 2. Public Organizations Government agencies host many events every year. Maxie Consulting hopes to alleviate the pressure of event planning for public employees. The second single largest segment, the public sector, can save money and give back to its community at the same time. These events are moderate in scale with middle to low revenues generated. Emphasis is placed on the visibility of the event for public viewing. The majority of organizational family functions will fall under this segment. 3. Age Breakdowns o

o

Under 24: Persons under the age of twenty-four (24) using an event planner are rare at best. We hope to tap the early college graduates who have begun their professional careers but have not yet started their families. These events will focus mainly on themes with moderate to high energy appeal. The revenues generated will range from moderate to high, depending on the event. The majority of weddings will fall into this segment. Ages 25-55: The persons that fall into this age group are employed, middle to uppermiddle class families. The reason they choose event planners is they are too busy to

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Maxie Consulting

o

do it themselves. Therefore, Maxie Consulting will be on hand for questions, contact will be moderate in length but occur regularly so as not to disturb the daily life of the families. These events will generate moderate revenues, with a few generating low revenues. The majority of special occasion planning will occur in this market segment. Ages 56 and above: Persons over the age of 55 have reached the turning point of life. Many are retiring, others are celebrating anniversaries of significant years, and still others are seeing that their children's special events are taken care of. These events will generate moderate to high revenues depending upon the income level of the family (direct correlation to social status). Most holiday parties, and other special occasions, such as wedding receptions and reunions, will occur in this market segment.

4. Other This segment has no direct information to compile for a description. It consists of any event planned that does not fit into one of the above categories. Table: Market Analysis

Market Analysis Potential Customers

Growth

Under 24 Age 25 to 55 Age 56 and over Private Organizations Public Organizations Other Total

0% 0% 0% 0% 0% 0% 31.95%

Year 1

Year 2

Year 3

Year 4

Year 5

18 33 31 40 62 5 189

18 33 31 40 62 5 189

20 44 37 102 105 7 315

21 51 40 163 137 8 420

22 59 44 261 178 9 573

CAGR 5.14% 15.63% 9.15% 59.83% 30.17% 15.83% 31.95%

Chart: Market Analysis (Pie)

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Maxie Consulting

4.2 Target Market Segment Strategy Our target markets are middle to upper-middle class families, couples, individuals, or private and public organizations. We chose these groups because they are most able to afford event planners, and have the least amount of time to spare for event planning in general. Families demand attention, employees are overburdened, and overwhelming detail needed to plan large events are too large a constraint to place on people not trained in the area of event planning. The fast pace of the world we live in leaves little time for extra things we would like to do, like plan events, parties, and social get-togethers. Maxie Consulting fills the need by being available to take on the burden of planning so that people can spend time on more important things, like family and friends. The demand for this service can only increase considering the rise in incomes, population, and need for interpersonal relations in the workplace. 4.3 Service Business Analysis Maxie Consulting is in a unique position of competition. We compete against hotels with conference facilities, conference centers, other event planners both on the large and small scale, persons within an organization who are assigned the task of organizing an event, and people who wish to organize their own events without the benefit of assistance. The benefits and drawbacks of each of our competitors as compared with the services we offer are hardly a match in quality and price. 1. Hotels and Conference Centers Strengths: On-site facilities, equipment, and support staff. Ability to transport and house persons for overnight stays. Able to internalize costs of transportation and equipment. Weakness: Often very expensive, impersonal, rely on unskilled labor for support staff. The error rate is high due to high volume and traffic from other events happening at the same time. 2. Other Event Planners Strengths: Have been in the market longer, have established a reputation and client base. Weakness: Reputation precedes them, no systems-based businesses designed to produce consistent results; focus on smaller events, specialized events are main focused rather than all events; do not have the supporting products to market with, or instead of, event planning services. 3. Employees or Persons wishing to do it themselves Strengths: Internalized cost of planning the event; able to add tiny personalized touches that have meaning within the group or family. Weakness: Consumes time that could be spent on other things; don't have access to the best prices, services, and other needed resources available. 4.3.1 Competition and Buying Patterns

5.0 Strategy and Implementation Summary Marketing and Competition We have discussed our client base as being predominately middle to upper-middle class individuals, couples or families, public and private organizations. We must then look at the needs of these markets and cater to them. We promise the same great results, every time.

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Maxie Consulting

When marketing to individuals, the idea of releasing them from the task, freeing their time for family and friends, and the promise of a worry-free event are the buzz words and concepts. Our marketing is predominantly by word of mouth or visual connection to large events these individuals have participated in or worked at. When marketing to public or private organizations, the idea of greater efficiency for the money and a professional event without error would be the key concept. Groups, especially large ones, do not wish to deal with problems that arise due to oversight on their part. If the guarantee of worry-free, error-free events is available at a cost benefit to them, there really appears to be no better choice. 5.1 Sales Strategy Maxie Consulting deals with a diverse market of clients. Within each market segment, closing of sales will differ. Each approach is described as follows: 1. Private and Public Organizations Sales will be concluded one to two days after the end of the event. A follow-up phone call will be placed informing the client of the total cost, number of attendees, and information about the billing packet that will arrive at their offices. Feedback forms will be included in these packets to ensure the client is being served as they deem appropriate. Form letter thank-yous will be sent following each event. 2. Individuals Sales will be concluded with a follow-up phone call one to two days after the event. The phone call will explain the total cost of the event, number of attendees, and information concerning the billing. Individual parties of any age group are placed on a billing cycle. Invoices will be sent out the 25th of the month and will be due the 10th of the following month. Feedback forms will be included in these packets to ensure the client is being served as they deem appropriate. Thank-you cards will follow each individual event. 5.1.1 Sales Forecast By beginning on a smaller scale, Maxie Consulting has the foresight to grow at a rapid pace to keep up with demand. We wish to maintain a steady rate of sales growth; however, we understand that sales of products and services will vary in different months. As noted in the graph and chart, rapid increases during the holiday season will boost sales, then allow that growth to level off at a steady rate. Table: Sales Forecast

Sales Forecast Year 1

Year 2

Year 3

$206,170 $113,185 $33,794 $353,149

$276,099 $178,490 $40,081 $494,670

$299,002 $193,000 $62,777 $554,779

Year 1 $28,864 $11,319 $1,690 $41,872

Year 2 $38,654 $17,849 $2,004 $58,507

Year 3 $41,860 $19,300 $3,139 $64,299

Sales Private Public Other Total Sales Direct Cost of Sales Private Public Other Subtotal Direct Cost of Sales

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Maxie Consulting

Chart: Sales Monthly

Chart: Sales by Year

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Maxie Consulting

5.2 Milestones The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned. Table: Milestones

Milestones Milestone Sample Milestones Finish Business Plan Acquire Financing Ah HA! Event Oooooh Noooooo! Event Grande Opening Marketing Program Starts Plan vs. Actual Review First Break-even Month Hire Employees Upgrade Business Plan Pro Totals

Start Date 1/4/2008 1/8/2012

End Date 1/4/2008 2/7/2012

Budget $0 $100

Manager ABC Dude

1/18/2012 1/28/2012 2/27/2012 3/8/2012 2/7/2012 7/4/2012 11/5/2012 10/4/2012 12/23/2012

3/8/2012 2/2/2012 3/3/2012 3/13/2012 3/3/2012 7/11/2012 12/5/2012 11/3/2012 12/25/2012

$200 $60 $250 $500 $1,000 $0 $0 $150 $100 $2,360

Dudette Marianne Marionette Gloworm Glower Galore Bouys Gulls Brass

Department Department LeGrande Fromage Legumers Bosses Chèvre deBlâme Nobs Marketeers Alles Salers HRM Bossies

Chart: Milestones

6.0 Management Summary Information and expense details are presented in subtopics Organizational Structure and Personnel Plan.

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Maxie Consulting

6.1 Personnel Plan The following table shows the estimated personnel needs for Maxie Consulting. Table: Personnel

Personnel Plan Year 1

Year 2

Year 3

Event Specialist Site Manager Other Total People

$36,000 $11,097 $8,947 0

$40,000 $13,750 $9,560 0

$42,000 $14,560 $10,000 0

Total Payroll

$56,044

$63,310

$66,560

7.0 Financial Plan Service-based businesses require little funds to start-up, and as they grow and expand, less funds to maintain. The charts and graphs that follow will show that investment up front allows Maxie Consulting to function debt-free with little overhead. This gives Maxie Consulting a quicker break-even point and increased profit margins from the start. As Maxie Consulting grows, the debt-free philosophy will be maintained until it is impossible to function during growth periods without financial assistance. 7.1 Start-up Funding

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Maxie Consulting

7.2 Important Assumptions Tax rates are noted for information. We carry no loan burden that would be effected by these rates. What hits Maxie Consulting the hardest (but not nearly are bad as other service businesses), is the tax rate of 24%, which is nearly one quarter of the total sales. As Occasions continues to grow, these numbers will be reference rather than influence. 7.3 Break-even Analysis The break-even point is based on the assumption that we will produce 22 events per month and average approximately $521 per event. In the current situation, we average more than this assumption for our public and private organization events. These currently make up 18 of the 22 average events hosted per month. The break-even point will appear more rapidly for Maxie Consulting than for other types of home-based businesses. Start-up costs are limited to minimal equipment, there is little or no staff to pay in the beginning, and contracted companies will handle any additional equipment required for the planned events. Table: Break-even Analysis

Break-even Analysis Monthly Revenue Break-even

$19,313

Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost

12% $17,023

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Maxie Consulting

Chart: Break-even Analysis

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Maxie Consulting

7.4 Projected Profit and Loss Leading the industry in event planning requires the use of the resources available at the lowest cost. As noted in the table, we spend less money on overhead than another event planners with an outside office or office space in their own facility. This savings allows us to market in creative ways and spend funds on expansion into other areas when the time is right. Table: Profit and Loss

Pro Forma Profit and Loss Year 1

Year 2

Year 3

Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales

$353,149 $41,872 $196 $42,068

$494,670 $58,507 $203 $58,710

$554,779 $64,299 $221 $64,520

Gross Margin Gross Margin %

$311,081 88.09%

$435,960 88.13%

$490,259 88.37%

Payroll Sales & Marketing & Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other

$56,044 $146,013 $0 $0 $516 $264 $1,440 $0 $0

$63,310 $68,400 $0 $0 $750 $750 $1,800 $0 $0

$66,560 $73,400 $0 $0 $800 $1,000 $1,800 $0 $0

Total Operating Expenses

$204,277

$135,010

$143,560

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

$106,804 $106,804 $406 $25,535

$300,950 $300,950 $279 $72,161

$346,699 $346,699 $362 $83,121

$80,862 22.90%

$228,510 46.19%

$263,216 47.45%

Expenses

Net Profit Net Profit/Sales

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Maxie Consulting

Chart: Profit Monthly

Chart: Profit Yearly

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Maxie Consulting

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

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Maxie Consulting

7.5 Projected Cash Flow Our cash situation is great. Although we begin with little extra cash, our increased growth allows us to make up for lost time. Our cash balance is always above the mark with the cash flow not too far behind. We have no negatives in our cash analysis. Table: Cash Flow

Pro Forma Cash Flow Year 1

Year 2

Year 3

$141,260 $178,271 $319,531

$197,868 $283,330 $481,198

$221,912 $327,145 $549,057

$0 $4,000 $0 $0 $0 $0 $0 $323,531

$0 $1,080 $0 $0 $0 $0 $0 $482,278

$0 $1,080 $0 $0 $0 $0 $0 $550,137

Year 1

Year 2

Year 3

$56,044 $199,964 $256,008

$63,310 $209,744 $273,054

$66,560 $222,455 $289,015

$0 $3,500 $0 $0 $0 $0 $0 $259,508

$0 $500 $0 $0 $0 $0 $0 $273,554

$0 $0 $0 $0 $0 $0 $0 $289,015

$64,023 $66,323

$208,723 $275,047

$261,122 $536,168

Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance

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Maxie Consulting

Chart: Cash

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Maxie Consulting

7.6 Projected Balance Sheet Occasions is set up for success. According to the numbers, we start out fair and end up amazing. By FY2000, we will be worth over $125,000 with a profit margin of over 30%. We are operating with little to zero debt, boosting the net worth even higher. Our only weakness is the products to be released in FY2000 have not been accounted for as an investment of funds. This will effect the cash flow in a moderate way, and is undetermined how it will effect the profit ratio of the business. Table: Balance Sheet

Pro Forma Balance Sheet Year 1

Year 2

Year 3

$66,323 $33,618 $4,991 $0 $104,933

$275,047 $47,090 $7,494 $0 $329,631

$536,168 $52,812 $6,478 $0 $595,458

$0 $0 $0 $104,933

$0 $0 $0 $329,631

$0 $0 $0 $595,458

Year 1

Year 2

Year 3

Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

$21,270 $2,500 $0 $23,770

$16,878 $3,080 $0 $19,958

$18,410 $4,160 $0 $22,570

Long-term Liabilities Total Liabilities

$0 $23,770

$0 $19,958

$0 $22,570

$3,665 ($3,365) $80,862 $81,162 $104,933

$3,665 $77,497 $228,510 $309,672 $329,631

$3,665 $306,007 $263,216 $572,888 $595,458

$81,162

$309,672

$572,888

Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth

7.7 Business Ratios Data on our business ratios is shown in the table below. Industry Profile ratios are based on Standard Industry Classification (SIC) Index code 7299. Table: Ratios

Ratio Analysis

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Year 1

Year 2

Year 3

Industry Profile

n.a.

40.07%

12.15%

11.37%

Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets

32.04% 4.76% 0.00% 100.00% 0.00% 100.00%

14.29% 2.27% 0.00% 100.00% 0.00% 100.00%

8.87% 1.09% 0.00% 100.00% 0.00% 100.00%

10.40% 3.83% 48.41% 62.64% 37.36% 100.00%

Current Liabilities Long-term Liabilities Total Liabilities Net Worth

22.65% 0.00% 22.65% 77.35%

6.05% 0.00% 6.05% 93.95%

3.79% 0.00% 3.79% 96.21%

23.10% 24.97% 48.07% 51.93%

100.00% 88.09% 69.22% 0.51% 30.24%

100.00% 88.13% 35.37% 0.44% 60.84%

100.00% 88.37% 34.65% 0.47% 62.49%

100.00% 100.00% 65.24% 2.43% 4.31%

4.41 4.20 22.65% 131.09% 101.40%

16.52 16.14 6.05% 97.09% 91.21%

26.38 26.10 3.79% 60.45% 58.16%

1.83 1.31 58.52% 7.33% 17.66%

Sales Growth Percent of Total Assets

Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin Return on Equity

22.90% 99.63%

46.19% 73.79%

47.45% 45.95%

n.a n.a

6.30 43 10.91 10.40 27 3.37

6.30 50 9.37 12.17 34 1.50

6.30 55 9.20 12.17 29 0.93

n.a n.a n.a n.a n.a n.a

0.29 1.00

0.06 1.00

0.04 1.00

n.a n.a

$81,162 262.90

$309,672 1,078.67

$572,888 957.73

n.a n.a

0.30 23% 2.79 4.35 0.00

0.67 6% 13.78 1.60 0.00

1.07 4% 23.76 0.97 0.00

n.a n.a n.a n.a n.a

Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout

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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

$12,860 $3,852 $800 $17,512

$10,966 $7,884 $955 $19,805

$11,435 $7,200 $900 $19,535

$12,889 $8,965 $1,190 $23,044

$13,001 $8,566 $2,450 $24,017

$15,777 $7,600 $2,133 $25,510

$15,998 $9,705 $2,100 $27,803

$24,960 $11,245 $4,656 $40,861

$26,522 $11,780 $4,500 $42,802

$20,009 $11,999 $4,622 $36,630

$19,650 $12,300 $4,800 $36,750

$22,103 $12,089 $4,688 $38,880

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$1,800

$1,535

$1,601

$1,804

$1,820

$2,209

$2,240

$3,494

$3,713

$2,801

$2,751

$3,094

$385

$788

$720

$897

$857

$760

$971

$1,125

$1,178

$1,200

$1,230

$1,209

Sales Private Public Other Total Sales Direct Cost of Sales Private Public Other Subtotal Direct Cost of Sales

0% 0% 0%

$40

$48

$45

$60

$123

$107

$105

$233

$225

$231

$240

$234

$2,226

$2,371

$2,366

$2,760

$2,799

$3,075

$3,315

$4,852

$5,116

$4,232

$4,221

$4,538

Page 1


Appendix Table: Personnel

Personnel Plan Event Specialist Site Manager Other Total People Total Payroll

0% 0% 0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$3,000 $735 $586 0

$3,000 $907 $800 0

$3,000 $735 $586 0

$3,000 $735 $586 0

$3,000 $735 $586 0

$3,000 $735 $586 0

$3,000 $1,245 $844 0

$3,000 $1,400 $895 0

$3,000 $1,245 $844 0

$3,000 $875 $844 0

$3,000 $875 $895 0

$3,000 $875 $895 0

$4,321

$4,707

$4,321

$4,321

$4,321

$4,321

$5,089

$5,295

$5,089

$4,719

$4,770

$4,770

Page 2


Appendix 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

$17,512

$19,805

$19,535

$23,044

$24,017

$25,510

$27,803

$40,861

$42,802

$36,630

$36,750

$38,880

$2,226

$2,371

$2,366

$2,760

$2,799

$3,075

$3,315

$4,852

$5,116

$4,232

$4,221

$4,538

$15

$13

$15

$16

$16

$16

$19

$22

$22

$13

$15

$14

$2,241

$2,384

$2,381

$2,776

$2,815

$3,091

$3,334

$4,874

$5,138

$4,245

$4,236

$4,552

Gross Margin

$15,271

$17,421

$17,154

$20,268

$21,202

$22,419

$24,469

$35,987

$37,664

$32,385

$32,514

$34,328

Gross Margin %

87.21%

87.96%

87.81%

87.95%

88.28%

87.88%

88.01%

88.07%

88.00%

88.41%

88.47%

88.29%

Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales

Expenses Payroll

$4,321

$4,707

$4,321

$4,321

$4,321

$4,321

$5,089

$5,295

$5,089

$4,719

$4,770

$4,770

Sales & Marketing & Other Expenses Depreciation

$9,015

$10,748

$9,982

$10,260

$10,315

$10,415

$12,418

$18,015

$16,615

$13,290

$11,975

$12,965

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$43

$43

$43

$43

$43

$43

$43

$43

$43

$43

$43

$43

Leased Equipment Utilities Insurance

$22

$22

$22

$22

$22

$22

$22

$22

$22

$22

$22

$22

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

$120

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$13,521

$15,640

$14,488

$14,766

$14,821

$14,921

$17,692

$23,495

$21,889

$18,194

$16,930

$17,920

Profit Before Interest and Taxes

$1,750

$1,781

$2,666

$5,502

$6,381

$7,498

$6,777

$12,492

$15,775

$14,191

$15,584

$16,408

EBITDA

$1,750

$1,781

$2,666

$5,502

$6,381

$7,498

$6,777

$12,492

$15,775

$14,191

$15,584

$16,408

$17

$50

$47

$44

$41

$38

$35

$33

$30

$27

$24

$21

$416

$415

$629

$1,310

$1,521

$1,790

$1,618

$2,990

$3,779

$3,399

$3,734

$3,933

Net Profit

$1,318

$1,315

$1,990

$4,148

$4,818

$5,669

$5,123

$9,469

$11,966

$10,765

$11,826

$12,454

Net Profit/Sales

7.52%

6.64%

10.19%

18.00%

20.06%

22.22%

18.43%

23.17%

27.96%

29.39%

32.18%

32.03%

Rent Payroll Taxes Other Total Operating Expenses

Interest Expense Taxes Incurred

12%

Page 3


Appendix Table: Cash Flow

Pro Forma Cash Flow Month 1

Month 2

Month 3

$7,005

$7,922

$7,814

$0

$5,604

$11,241

$7,005

$13,526

$19,055

$0 $0

$0 $4,000

New Other Liabilities (interest-free)

$0

New Long-term Liabilities

$0

Sales of Other Current Assets

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$9,218

$9,607

$10,204

$11,121

$16,344

$17,121

$14,652

$14,700

$15,552

$11,797

$12,844

$14,138

$14,888

$16,040

$20,860

$25,138

$23,706

$22,016

$21,014

$22,451

$24,342

$26,009

$32,384

$37,981

$39,790

$38,406

$37,568

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$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

$7,005

$17,526

$19,055

$21,014

$22,451

$24,342

$26,009

$32,384

$37,981

$39,790

$38,406

$37,568

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 Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing

Subtotal Cash Received Expenditures

0.00%

Expenditures from Operations Cash Spending

$4,321

$4,707

$4,321

$4,321

$4,321

$4,321

$5,089

$5,295

$5,089

$4,719

$4,770

$4,770

$477

$14,309

$13,919

$13,277

$15,006

$14,951

$15,891

$18,185

$27,728

$25,842

$20,173

$20,204

$4,798

$19,016

$18,240

$17,598

$19,327

$19,272

$20,980

$23,480

$32,817

$30,561

$24,943

$24,974

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

$350

$350

$350

$350

$350

$350

$350

$350

$350

$350

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Spent

$4,798

$19,016

$18,590

$17,948

$19,677

$19,622

$21,330

$23,830

$33,167

$30,911

$25,293

$25,324

Net Cash Flow

$2,206

($1,490)

$465

$3,066

$2,773

$4,720

$4,679

$8,554

$4,814

$8,879

$13,113

$12,245

Cash Balance

$4,506

$3,016

$3,481

$6,547

$9,321

$14,041

$18,719

$27,273

$32,087

$40,966

$54,079

$66,323

Bill Payments Subtotal Spent on Operations Additional Cash Spent

Page 4


Appendix

Page 5


Appendix Table: Balance Sheet

Pro Forma Balance Sheet Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$2,300 $0 $0 $0 $2,300

$4,506 $10,507 $2,448 $0 $17,462

$3,016 $16,786 $2,609 $0 $22,411

$3,481 $17,266 $2,602 $0 $23,350

$6,547 $19,296 $3,037 $0 $28,880

$9,321 $20,863 $3,079 $0 $33,262

$14,041 $22,031 $3,383 $0 $39,454

$18,719 $23,825 $3,647 $0 $46,191

$27,273 $32,301 $5,337 $0 $64,911

$32,087 $37,122 $5,628 $0 $74,837

$40,966 $33,963 $4,655 $0 $79,584

$54,079 $32,306 $4,643 $0 $91,028

$66,323 $33,618 $4,991 $0 $104,933

$0 $0 $0 $2,300

$0 $0 $0 $17,462

$0 $0 $0 $22,411

$0 $0 $0 $23,350

$0 $0 $0 $28,880

$0 $0 $0 $33,262

$0 $0 $0 $39,454

$0 $0 $0 $46,191

$0 $0 $0 $64,911

$0 $0 $0 $74,837

$0 $0 $0 $79,584

$0 $0 $0 $91,028

$0 $0 $0 $104,933

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

$0 $2,000 $0 $2,000

$13,844 $2,000 $0 $15,844

$13,478 $6,000 $0 $19,478

$12,777 $5,650 $0 $18,427

$14,509 $5,300 $0 $19,809

$14,423 $4,950 $0 $19,373

$15,296 $4,600 $0 $19,896

$17,259 $4,250 $0 $21,509

$26,860 $3,900 $0 $30,760

$25,169 $3,550 $0 $28,719

$19,502 $3,200 $0 $22,702

$19,470 $2,850 $0 $22,320

$21,270 $2,500 $0 $23,770

Long-term Liabilities Total Liabilities

$0 $2,000

$0 $15,844

$0 $19,478

$0 $18,427

$0 $19,809

$0 $19,373

$0 $19,896

$0 $21,509

$0 $30,760

$0 $28,719

$0 $22,702

$0 $22,320

$0 $23,770

$3,665 ($3,365) $0 $300 $2,300

$3,665 ($3,365) $1,318 $1,618 $17,462

$3,665 ($3,365) $2,633 $2,933 $22,411

$3,665 ($3,365) $4,623 $4,923 $23,350

$3,665 ($3,365) $8,771 $9,071 $28,880

$3,665 ($3,365) $13,589 $13,889 $33,262

$3,665 ($3,365) $19,258 $19,558 $39,454

$3,665 ($3,365) $24,381 $24,681 $46,191

$3,665 ($3,365) $33,851 $34,151 $64,911

$3,665 ($3,365) $45,817 $46,117 $74,837

$3,665 ($3,365) $56,582 $56,882 $79,584

$3,665 ($3,365) $68,408 $68,708 $91,028

$3,665 ($3,365) $80,862 $81,162 $104,933

$300

$1,618

$2,933

$4,923

$9,071

$13,889

$19,558

$24,681

$34,151

$46,117

$56,882

$68,708

$81,162

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth

Page 6


Maxie Consulting