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February 2005

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Table of Contents
1.0 Executive Summary.............................................................................................................................1 1.1 Objectives ...................................................................................................................................1 1.2 Mission........................................................................................................................................2 1.3 Keys to Success ........................................................................................................................2 2.0 Company Summary.............................................................................................................................2 2.1 Company Ownership .................................................................................................................3 2.2 Start-up Summary ......................................................................................................................3 3.0 Services................................................................................................................................................6 4.0 Market Analysis Summary..................................................................................................................7 4.1 Market Segmentation ................................................................................................................8 4.2 Target Market Segment Strategy.............................................................................................9 4.3 Service Business Analysis .....................................................................................................10 4.3.1 Competition and Buying Patterns .......................................................................................10 5.0 Strategy and Implementation Summary..........................................................................................11 5.1 Competitive Edge....................................................................................................................11 5.2 Marketing Strategy ..................................................................................................................11 5.3 Sales Strategy..........................................................................................................................12 5.3.1 Sales Forecast .....................................................................................................................12 5.4 Milestones ................................................................................................................................15 6.0 Management Summary ....................................................................................................................17 6.1 Personnel Plan.........................................................................................................................17 7.0 Financial Plan ....................................................................................................................................18 7.1 Important Assumptions............................................................................................................18 7.2 Break-even Analysis................................................................................................................18 7.3 Projected Profit and Loss .......................................................................................................19 7.4 Projected Cash Flow ...............................................................................................................22 7.5 Business Ratios .......................................................................................................................24 7.6 Projected Balance Sheet ........................................................................................................26

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PC Repair
1.0 Executive Summary
PC Repair will provide computer and technical consulting (repairs, training, networking and upgrade service) to loc al small businesses as well as home PC users. The company will foc us on marketing, responsiveness, quality, and creating and retaining customer relations. PC Repair was initially formed as a sole proprietorship, but was rec onfigured as an S Corporation in Dec ember of 2004. PC Repair will at first be a home office start-up, utilizing one studio room in the owner's home and serving customers in the loc al Ramsford-on-Bitstream area. In the third month of our plan, we will move into a leased office space and hire a second tec hnician. As sales increase, we will hire additional personnel. The Market The very nature of the computing industry, with its extraordinary rate of tec hnological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues. In town, the majority of potential customers are dissatisfied with existing options, creating an attrac tive niche for an innovative start-up. Small business PC users will provide the majority of our business revenue. Business Week expec ts the computing industry to grow at a rate of 12% and the proc essor speeds to continue to expand for years to come, providing a rich resource for sales. PC Repair has dec ided to foc us mainly on the small business market, as these customers typically don't have a full-time IT person, but have full-time IT needs. PC Repair will offer an affordable, on-demand service for these customers. We can also offer maintenance agreements that generate additional monthly income. For our residential customers, we will offer a very affordable and helpful service with a very flexible sc hedule to meet their needs. Our target market will foc us on Ramsford-on-Bitstream and the surrounding areas. Market research indicates there is an abundance of business for a small company such as PC Repair. Start-up Funding and Financials To get PC Repair started the owner is providing cash and assets. We are also seeking a shortterm loan, to be secured with the owner's home equity, and repaid within three years. Our conservative sales forec asts, based on industry research within the loc al area, projec t hefty sales in year one, steadily increasing through year three. To reach these goals, we will use an aggressive advertising campaign to exploit our competitors' weaknesses. With good cost control, we will see a modest, yet comfortable, net profit the first year, even after moving into a leased space and hiring additional tec hnicians.

1.1 Objectives
1. 2. 3. 4. To provide the best service available to the community at an affordable price. To generate substantial market share so that PC Repair is a common name. Constant growth in sales from start up through year three. To generate customer satisfac tion so that at least 40% of our customer base is repeat business.

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PC Repair

1.2 Mission
Our goal is to set the standard for on-site computer solutions through fast, on-site service and response. Our customers will always rec eive one-on-one personal attention at a very affordable price. Our customers will rec eive the highest quality of customer service available. Our employees will rec eive extensive training, a great plac e to work, fair pay and benefits, and incentives to use their own good judgement to solve customers' problems.

1.3 Keys to Success


Establishing a brand identity and generating brand rec ognition through marketing. Responsiveness: being an on-call computer paramedic with fast response time. Quality: getting the job done right the first time, offering 100% guarantee. Relationships: developing loyal repeat customers--retainers.

2.0 Company Summary


PC Repair is an S Corporation loc ated in Ramsford-on-Bitstream, owned by Jack Hac ker. With a small 3-year loan, PC Repair will grow in one year from a one-man, home-office based repair shop to a profitable, 3-person business in a leased loc ation. We will build the necessary infrastructure to quickly and efficiently respond to customers' computer needs, guaranteeing speedy, friendly, competent, and cost-effective technical support.

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PC Repair
2.1 Company Ownership
PC Repair was initially envisioned as a sole proprietorship in the owner's home. However, rec ent feedback from our marketing outreach has suggested a much higher sales potential than originally imagined, and PC Repair has been reformed as an S Corporation. This change will provide additional legal protec tion for the owner, and will also streamline the financial operations of the company as we expand the personnel to 5 within the next three years, lease a separate space for offices, and purchase company vehicles and cell phones. The owner, Jack Hac ker, has 10 years of experience in the fields of tec hnical support, networking, and computer training and repair. Jack has also spent the last three years as the manager of a custom computer building and repair store, and understands the computer needs of small businesses.

2.2 Start-up Summary


Total start-up expenses include initial expenses for establishing our website, setting up the business, and doing our pre-opening advertising. Exac t alloc ations are shown in the table. The bulk of our start-up requirements are asset needs: we need diagnostic and repair equipment, half of which will be contributed to the business by the owner from his own materials. We are treating this equipment as assets bec ause we expec t it to last at least three years, and to have some resale value when we are through with it; we will buy additional expensed equipment in years two and three. We also need start-up inventory which includes RAM, spare hard drives, cables, and cases. Although we will keep expenses to a minimum for the first three months, before we move, we will also need cash at start-up, to see us through the next several months with a positive cash balance. We plan to fund our total start-up requirements direc t owner investment (including the contributed assets), and a three-year loan sec ured with the owner's collateral (his home equity). We should be able to easily repay this loan within three years, even with a much lower sales revenue than projec ted. (See the Cash Flow table for projec ted repayment.)

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PC Repair
Table: Start-up
Start-up Requirements Start-up Expenses Legal Website Business Cards Insurance Uniforms CPA Advertisement Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements

$650 $350 $100 $150 $300 $275 $1,200 $3,025

$28,000 $1,200 $10,000 $0 $39,200 $42,225

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PC Repair
Table: Start-up Funding
Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $3,025 $39,200 $42,225

$11,200 $28,000 $0 $28,000 $39,200

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Owner Investor Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital

$19,225 $0 $0 $0 $19,225

$23,000 $0 $0 $23,000 ($3,025) $19,975

Total Capital and Liabilities Total Funding

$39,200 $42,225

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PC Repair

3.0 Services
PC Repair will offer computer repairs, training, networking and upgrade service to clients in two major categories: home PC users and small business users. As PC Repair and the client demands grow, we will offer software development to our business clients. From the very first day, we will offer on-site repair and consulting services, so that our clients don't need to take time out of their busy days to haul a computer in to our workshop. This is the single biggest frustration Jack has seen among small business owners needing computer help. Much of our diagnostic equipment is portable, and we will remove a PC to our workshop only when the problem requires more detailed diagnosis or repair. We will also offer free pick-up and delivery of PCs needing repair. To meet the growing demand for this service, we will purchase a company vehicle in the third month. We will also offer extended maintenance contrac ts, so that business clients can deal with technical support and repair needs as a single line-item expense, rather than having to plan for unexpec ted crashes and problems with a rainy-day fund they may never use. Maintenance contrac ts yield a high gross margin for us, and provide peace of mind for the customer. We will offer limited software support (installation and compatibility issues), and foc us on hardware and networking support - this is a vital distinction, since software is evolving much more rapidly than hardware, and our clients will have such diverse software needs that we couldn't possibly keep up with all of them. We will encourage clients to register their software and use the software's own support options to their full potential. We will, however, keep up to date with multiple operating systems and networking developments, working with c lients to make sure they have the most appropriate combinations of hardware, OS, networking, bac kup systems, and software. Bac kup and security are bec oming higher priorities for all our potential customers, as internet usage (and its pitfalls) bec omes more common, and as more and more daily rec ords are stored elec tronically. Page 6

PC Repair
4.0 Market Analysis Summary
PC Repair will provide computer support in both a consulting and tec hnical capacity to small business owners as well as home PC users. Since PC Repair is currently a one man operation, its growth in the first three months will be limited by the owner's capacity to complete work. However, these first three months are critical for establishing our credibility and a reputation for getting the job done quickly and well. We will foc us on delivering excellent service, and using the good word of mouth from this initial period to network with other potential clients. Personal market research by the owner indicates an attrac tive market niche for our services, of which PC Repair will take full advantage. The very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues. National chains, such as "Geeks on Call," and Best Buy's "Geek Squad" have seen rapid growth in demand for these services in the last few years. Customers are seeking skilled help with everything from installation of software and hardware components, to networking, to transferring files from an old computer to a new one. Those who can often enlist their tec h-savvy children's help, but others are not so fortunate, and small-business owners need reliable and quick help with all their computer needs, since every hour down may mean an hour or more of lost revenue, espec ially for any business with a website or those doing e-commerce.

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PC Repair
4.1 Market Segmentation
The existing computer service market is so extensive that categorizing it is rather difficult. We have broken our potential market down into two groups, based on their needs: home PC users and small business clients. Home PC User Our home PC user market includes non-tech-savvy residents of the loc al area (15 mile radius), generally between the ages of 30 and 70, with at least one home computer. We are not expec ting income from users below 30, who tend to be more comfortable with technology and willing to attempt repairs and upgrades on their own, without seeking professional assistance. Such home users generally own a computer to do email, play games, write letters, sc an and print photos, and oc casionally to do bookkeeping or taxes. Home PC users with more sophisticated applications generally have enough tech savvy, from tec h experience at work, to do their own repairs and upgrades. Their hardware needs will include the computer itself, monitors, keyboards, mouse, printer, and sc anner. This group is growing slightly faster than the overall population growth in our area, in part due to the increasing demand for computers among retired people and young families, about 7% a year. Small Business Users Small business users will provide the majority of our business revenue. The small business market will be defined as customers within a 15 mile radius, with 2 or more computers or a network which they use for business purposes at least 25% of the time. Their business use may include minor usage, such as updating a business website for a brick-and-mortar store, keeping the books, designing graphics or ad campaigns, and writing copy for press releases. It may also be more extensive, incorporating inventory trac king, POS systems, customer databases, online product/service delivery, or product development. The more intensive their computer usage for business, the more critical it is to them that their tec hnology work well and reliably, and that quality repairs and support are available in a crisis. Their hardware needs will include the same items as home users, plus servers, bac kup systems, data storage, and wireless networking. The portion of the small business market we are targeting is growing at around 2% a year.

Table: Market Analysis


Market Analysis 2005 Potential Customers Home PC Users Small Business Users Other Total Growth 7% 2% 0% 5.39% 25,000 10,000 0 35,000 2006 26,750 10,100 0 36,850 2007 28,623 10,201 0 38,824 2008 30,626 10,303 0 40,929 2009 32,770 10,406 0 43,176 CAGR 7.00% 1.00% 0.00% 5.39%

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PC Repair

4.2 Target Market Segment Strategy


Although there are more potential customers among home PC users, we expec t the majority of our revenue to come from small business clients, since their need for our services is more urgent, and they are willing to invest in technology as part of their business plan. The majority of our marketing efforts will thus be foc used on small business owners. These customers typically don't have a full-time IT person, but have full-time IT needs. Home PCs are often used by multiple people, and serve multiple purposes. Our home PC users need help with managing their settings to integrate the different needs of all household members as much as they need technical assistance. ComputingNet magazine rec ently reported on the substantial need for timely and cost-effective computer upgrades and repairs in this region; Jack Hac ker has seen this market need in person, as frustrated clients waited for days or weeks for their critical components to be returned to full capacity, with no inexpensive alternative to the existing computer repair shops. All of our clients need technical assistance, but we are also selling peace of mind: our clients will know that friendly, efficient help is just a phone call away. As more and more companies switch their support services to automated call centers or touch-tone menus, the simple reassurance of hearing another human voice on the phone within a few rings is immeasurable. Even better is knowing that within a few hours, someone will show up and take care of their problem. Both the software and hardware side of the computer industry continue to turn out new and revised computer components at alarming rates. For PC Repair this means job security well into the future. As reported by the Wall Street Journal, there seems to be no end to the development of the computer market. Business Week expec ts the computing industry to grow at a rate of 12% and the proc essor speeds to continue to expand for years to come.

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PC Repair
4.3 Service Business Analysis
Secondary market research shows computer service customers tend to be very loyal to providers that do good work and satisfy their needs. An analysis of PC Repair's main c ompetitors shows no overwhelming strengths that would be significant barriers to entry into the market, as our loc al competitors have serious weaknesses. The computer maintenance and repair industry is fragmented, with a few large, national players and hundreds of small, loc al stores. While most computers are ac tually repaired in-store, near the customer, parts for the repair come from major manufac turers and distributors; delays in rec eiving necessary parts can significantly slow down the repair proc ess. Large chains have solved this problem by keeping vast amounts of inventory in stoc k at all times, while loc al stores offer customers the trade-off of personal interac tion and trust that may make up for some delay. PC Repair has established a relationship with a loc al distributor to do rapid special-ordering; although this capability is more expensive than normal channels, it will enable us to quickly establish a reputation as efficient and responsive to customer needs, particularly for our small business users. We will leverage this customer loyalty into great word of mouth marketing and steady growth.

4.3.1 Competition and Buying Patterns


Customers choose computer repair and assistance services based on reputation, previous experience, and price. They may choose to return to a medioc re provider with whom they're familiar, rather than try out a new unknown company about whom they've heard nothing. Large stores, espec ially the service departments of national chains, have a great advantage simply in their affiliation with an established brand. Establishing our brand identity and a great reputation in the first few months is critical to our success. Once we have broken in to the loc al market, our great service will turn new clients into permanent clients. Our services will be second to no one and our prices will be very reasonable for the high quality service we offer. By providing superior service, word of mouth alone will bring in many new clients. The satisfac tion our consumers find will keep them coming bac k. There are two main competitors for the computer upgrade and repair business in this area: 1. Competitor A. They are a well established provider of computer upgrades and services, and do quick work. However, they have a high staff turnover, a young and inexperienced staff, and are more interested in selling new components than in maintaining existing mac hines or finding custom solutions. They do not offer any kind of pick-up and drop-off service, and do not offer on-site help. They really only offer hardware support. 2. Competitor B. Smaller and less known then A, B provides many services for residents living in east and south parts of town. They are more willing to spend time with a client, figuring out exac tly what his or her needs are, and suggesting new options than c ompetitor A. However, they have an inefficient ordering system and an unkempt shop, which deters potential customers and can turn existing customers to the competition. They also do not offer on-site services, although they are considering instituting a trial pick-up/drop-off service. They are in the best position to copy our innovations and steal customers, but their management is complac ent and may not respond to competition. Both of these companies charge rates in excess of PC Repair; we will be able to attrac t the price-sensitive market without much work.

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PC Repair
5.0 Strategy and Implementation Summary
Our Strategy and Implementation turn on three points: 1. A value proposition of timely and prac tical solutions, at a reasonable rate, coupled with a 100% guarantee. 2. Exploiting our competitors weaknesses: a competitive edge based on quick, effective, and sympathetic customer service, which meets the customer where his needs are, rather than trying to fit him into an existing box. 3. Quickly establishing a brand identity and developing a great reputation among loc al customers to generate word of mouth advertising.

5.1 Competitive Edge


Quick response: PC Repair will provide same day and after hours service. A flat rate policy : This undermines the competition, who charge by the hour. The pricing has been set to reflec t the average amount of time it takes to perform the task. With this strategy we can undercut most competitors and gain loc al market power. On-site and pick-up/drop-off services: This will minimize the time and effort a customer needs to put into dealing with his computer problem. Suprisingly, our small size is an advantage: customers will rec ognize me (and future employees), and will know they will get the same great service every time they call.

5.2 Marketing Strategy


Our marketing strategy will aggressively exploit our competitors' weaknesses. During the start-up phase, we will run large ads in the business section of the loc al newspaper, asking, "Are you fed up with poor customer service for your computer needs?" These ads will foc us on our advantages, including on-site service, competitive rates, and quick response and turn-around times. They will announce our opening date, and include a coupon for free diagnostic service for the first 20 customers. We will follow up on these opening ads with a smaller direc t-marketing campaign to small business owners, with lists drawn from the loc al Chamber of Commerce. Jack will use his contac ts with business customers from his years as a manager to create a "buzz" about this new business. We will continue periodic advertisements, including several promotions (disc ounts, free diagnosis, etc.) throughout the first year. We expec t a small but steady response from home PC users who see our ads elsewhere, but will also run monthly ads in sec tions other than the business one. We will offer a promotion during the first 90 days of business to generate business traffic and word of mouth. Our promo is Spyware removal on any desktop PC for $70 including tax and software. Spyware is a huge problem for a lot of residential and small business customers, and the offer should draw a lot of interest.

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PC Repair
5.3 Sales Strategy
Our marketing strategy will generate customer inquiries. We will close the deals by offering an outstanding service and a very reasonable price. Happy customers generate repeat business and word of mouth. Our toll free number is operational 24 hours a day, seven days a week, and from 8am to 9pm, I will be available to answer calls. At other times, or when I am on the phone, an answering service we have hired will catch c allers and give them an estimated wait time for a call-bac k; this is another step towards delivering a complete solution to our customers. Sales forec ast figures are based on industry figures for the typical growth of a start-up and reflec t repeat business generated through meeting customer needs.

5.3.1 Sales Forecast


The sales strategy is a prediction of controllable growth for the first year. PC Repair will foc us on quality and attention to detail to avoid some potential pitfalls encountered by many new businesses. The predicted growth is moderate in the home PC market and in the small business arena. However, with aggressive advertising and word of mouth, this will increase. Our agressive TV advertising will increase our residential and small business customer base as well as word of mouth within the first year. Within a few months we will have the need for additional employees to handle the work load. At that time, we will move into a leased space with additional square footage, and buy a company vehicle to help with the on-site calls. Our competitors average 75+ calls a month. Given that our advertising will be aggressive, we expec t the same results. The sales forec ast is conservative, which gives us a chance to gauge our experience and adjust the plan ac cordingly. We will service all of Ramsford-on-Bitstream, and the surrounding area. We expec t that the majority of our jobs will be performed in the immediate town area. A service technician can perform an average of 3 jobs per day. Our sales forec ast predictions are less than that. With our agressive advertising campaign we expec t nominal growth. We predict it will take a few weeks for the marketing to settle in with c ustomers. However, we are going to offer a promo for our services which should generate some substantial results. The one element of sales not represented in the table below is direc t costs for our maintenance contrac ts. We estimate these costs at 12% of sales revenue, but expec t a delayed oc currence - that is, we will sell maintenance contrac ts starting in February, but do not expec t to ac tually perform maintenance on computers guaranteed under them for the first few months. We will incur more and more costs from these as time goes on, and the computers age - most of the service in a maintenance contrac t is performed within the last quarter of the specified period. Projec tions for the direc t costs for these contrac ts can be found in the Profit and Loss Table, as other costs of sales.

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PC Repair

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PC Repair
Table: Sales Forecast
Sales Forecast FY 2006 Unit Sales Home PC Unit Small Business Unit Promo Maintenance Contracts Total Unit Sales Unit Prices Home PC Unit Small Business Unit Promo Maintenance Contracts Sales Home PC Unit Small Business Unit Promo Maintenance Contracts Total Sales Direct Unit Costs Home PC Unit Small Business Unit Promo Maintenance Contracts Direct Cost of Sales Home PC Unit Small Business Unit Promo Maintenance Contracts Subtotal Direct Cost of Sales 166 264 235 32 697 FY 2006 $280.00 $500.00 $50.00 $400.00 FY 2007 200 300 0 60 560 FY 2007 $300.00 $600.00 $0.00 $600.00 FY 2008 225 350 0 85 660 FY 2008 $300.00 $600.00 $0.00 $600.00

$46,480 $132,000 $11,750 $12,800 $203,030 FY 2006 $84.00 $105.00 $4.00 $0.00

$60,000 $180,000 $0 $36,000 $276,000 FY 2007 $90.00 $126.00 $0.00 $0.00

$67,500 $210,000 $0 $51,000 $328,500 FY 2008 $90.00 $126.00 $0.00 $0.00

$13,944 $27,720 $940 $0 $42,604

$18,000 $37,800 $0 $0 $55,800

$20,250 $44,100 $0 $0 $64,350

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PC Repair

5.4 Milestones
Our milestones, listed in the table below, outline the major events that will promote, as well as insure the success of PC Repair and keep it a going concern well into the future. We will measure our success in meeting these milestones every month, and adjust the plan to keep up with our objec tives. Name rec ognition, in particular, is very important to breaking into this market - we will conduct a survey by calling 200 randomly selec ted small businesses from the Chamber of Commerce listings on the specified dates and asking them whether they have heard of PC Repair, and if so, what their impression is of our service. If any of the respondents have ac tually used our services, we will elicit feedbac k on their experience with us, and suggestions for improvement. We will also ask if they would rec ommend us to a colleague.

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PC Repair
Table: Milestones
Milestones Milestone Procurement of materials for opening Start-up Ad Campaign Get Loan Approved Open Business Name Recognition by 5% of potential market Meet with Leasing Agent Interview potential Techs Move into Leased Space Sign on Leased Vehicle Targeted Ads Begin 1st Tech Starts 2nd Round Tech Interviews Direct marketing to Small Businesses Increase Name Recognition to 20% 2nd Tech Starts Totals Start Date 12/1/2004 12/15/2004 1/1/2005 2/7/2005 2/28/2005 3/1/2005 3/1/2005 4/1/2005 4/15/2005 4/15/2005 5/1/2005 7/1/2005 7/1/2005 8/1/2005 8/1/2005 End Date 2/1/2005 2/6/2005 1/17/2005 2/8/2005 2/28/2005 3/10/2005 4/25/2005 4/10/2005 4/20/2005 5/15/2005 5/1/2005 7/31/2005 9/30/2005 8/2/2005 8/7/2005 Budget $1,200 $1,200 $0 $0 $0 $0 $0 $2,000 $6,000 $4,000 $0 $0 $8,000 $0 $0 $22,400 Manager JMH JMH JMH JMH JMH JMH JMH JMH JMH JMH JMH JMH JMH JMH JMH Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department

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PC Repair
6.0 Management Summary
PC Repair will be owned and managed by Jack Hac ker. Jack has 10 years of experience in the fields of technical support, networking, and computer training and repair. Jack has also spent the last three years as the manager of a custom computer building and repair store, and understands the computer needs of small businesses. Jack is adept at managing his time, and at quickly responding to multiple customer calls and needs. For the first three months, Jack will be in c harge of all aspec ts of the business. In the third month, when another tech is hired, Jack will shift some of his energy from direc tly responding to customer needs, to training and managing others to do this work effec tively. Jack will maintain direc t control over inventory ordering and bookkeeping, and will try to do as many of the on-site calls as possible himself. Part of our brand rec ognition strategy is to identify PC Repair with Jack's efficiency, friendliness, and technical expertise. The easiest way to associate the two is for Jack to be a major part of many customers' experiences with us. He will delegate technical repairs later in the year to the tec hs working in the leased office space, and will also train them in his method of direc t phone support. Jack has worked extensively with c omputer technicians and support staff in the past, and knows that they work best when given free rein within a set of mutually-agreed-upon guidelines. The first week of each tech's employment will be dedicated to helping them understand PC Repair's guidelines: the customer needs help, and we're here to help them; the customer is frustrated, upset, or confused - but that doesn't make the customer a problem; the customer needs reassurance as well as solutions. Within this framework, the tec hs can solve the customer's problem the best way they see fit Jack is not a micro manager.

6.1 Personnel Plan


Jack Hac ker will be the only employee for the first few months; his salary is direc tly related to the success of the business, and will never exceed 18% of sales revenue. In the third month, we will move to a leased office space and hire a second employee, with a third hire planned for August, if projec tions are on target. We plan to hire additional part-time employees in the second year, to better handle the increasing sales. Our employees will be skilled professionals, with equally strong tec hnical and people skills. It is very important to Jack that they be paid salaries commensurate with their abilities and dedication- happy tec h support people make for happy customers. To that end, our full-time employees will rec eive health benefits (premiums split between the employee and PC Repair), paid holidays, and sick time. Those benefits are included in the payroll totals listed below.

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PC Repair
Table: Personnel
Personnel Plan Owner Tech1 Tech2 Part Time Total People Total Payroll FY 2006 $33,000 $21,600 $14,400 $0 3 $69,000 FY 2007 $38,000 $30,000 $30,000 $12,000 5 $110,000 FY 2008 $40,000 $30,000 $30,000 $15,000 5 $115,000

7.0 Financial Plan


The following sections include the annual estimates for the standard set of financial tables. Detailed monthly pro-forma tables are included in the appendix. Our financial plan calls for limited growth in the first three months, followed by much higher sales when we move and hire additional employees. These projec tions are based on sound market research and ratios for comparable businesses. As we grow, we will keep our operating expenses down, and maintain a positive cash balance as we repay our three-year loan.

7.1 Important Assumptions


PC Repair's customer base would fluctuate if there was a rec ess in the ec onomy or other extenuating circumstances that pertain direc tly to consumer or industry behavior. However, given the steady increase in c omputer users despite the rec ent rec ession, we assume that sales forec asts are unlikely to be dramatically altered by economic events. The table below shows some of our other assumptions.

Table: General Assumptions


General Assumptions FY 2006 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 7.00% 10.00% 30.00% 0 2 70.00% 10.00% 30.00% 0 FY 2007 3 70.00% 10.00% 30.00% 0 FY 2008

7.2 Break-even Analysis


Fixed costs are projec ted at a monthly average for the first year. This includes payroll, moving expenses and rent, purchase of a company vehicle, and other necessities like cell phones and the answering service. Variable costs (inventory used in repairing or servicing computers) are projec ted as well. At these levels, what we need to bring in per month to break even is shown in the table and chart below. We will reach our break-even point mid-year, although we expec t sales in November and Dec ember to dip below this level bec ause of holidays.

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Table: Break-even Analysis


Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 52 $15,110

$291.29 $70.00 $11,479

7.3 Projected Profit and Loss


The table below shows our projec ted profit and loss. There are two lines for direc t cost of sales - the second line shows projec ted inventory costs of fulfilling our maintenance contrac ts. The marketing/promotion line shows our planned advertising program expenses. Although these are aggressive, we must spend heavily in the first year in order to establish the brand rec ognition that will help us break in to the loc al market. This table also shows our projec ted expense increases as we hire more employees and move into a larger rented space. Before the move, the owner will absorb expenses related to utilities. In years two and three, we have budgeted for additional expensed equipment to expand our diagnostic and repair capabilities to keep up with orders. We are seeking a modest net profit in the first year. As our reputation grows, we will see higher revenues and net profit over the next three years.

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Table: Profit and Loss
Pro Forma Profit and Loss Sales Direct Cost of Sales Costs of Fulfilling Maintenance Contracts Total Cost of Sales Gross Margin Gross Margin % FY 2006 $203,030 $42,604 $1,488 $44,092 $158,938 78.28% FY 2007 $276,000 $55,800 $4,320 $60,120 $215,880 78.22% FY 2008 $328,500 $64,350 $6,120 $70,470 $258,030 78.55%

Expenses Payroll Marketing/Promotion Depreciation Lease Expensed Equipment Insurance Website Answering Service Mileage Vehicles Cell Phones Utilities Internet Moving Expenses Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

$69,000 $28,000 $0 $10,000 $0 $3,150 $2,080 $200 $2,660 $13,200 $1,260 $5,000 $1,200 $2,000 $137,750 $21,188 $21,188 $1,097 $6,027 $14,064 6.93%

$110,000 $6,000 $0 $12,000 $10,000 $1,200 $480 $2,400 $5,400 $15,000 $1,260 $6,000 $1,200 $0 $170,940 $44,940 $44,940 $6,570 $11,511 $26,859 9.73%

$115,000 $12,000 $0 $12,000 $12,000 $1,200 $480 $2,400 $5,400 $17,000 $1,260 $7,000 $1,200 $0 $186,940 $71,090 $71,090 $2,139 $20,685 $48,266 14.69%

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7.4 Projected Cash Flow


The Cash Flow chart, below, shows our projec ted cash position for the first year; the table following it shows highlights for the first three years. With the requested start-up funding, we will maintain a positive cash balance throughout, and repay the loan within three years.

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Table: Cash Flow
Pro Forma Cash Flow FY 2006 Cash Received Cash from Operations Cash Sales 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 FY 2007 FY 2008

$203,030 $203,030

$276,000 $276,000

$328,500 $328,500

$0 $0 $0 $0 $0 $0 $0 $203,030 FY 2006

$0 $0 $0 $0 $0 $0 $0 $276,000 FY 2007

$0 $0 $0 $0 $0 $0 $0 $328,500 FY 2008

$69,000 $110,873 $179,873

$110,000 $141,877 $251,877

$115,000 $164,115 $279,115

$0 $6,564 $0 $0 $0 $0 $0 $186,437 $16,593 $44,593

$0 $6,550 $0 $0 $0 $0 $0 $258,427 $17,573 $62,165

$0 $6,111 $0 $0 $0 $0 $0 $285,226 $43,274 $105,440

7.5 Business Ratios


Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7379, Computer Related Services, (NAICS 811212) are shown for comparison. Our projec ted growth is much higher than the industry average; in part, this is bec ause we are a start-up, growing sales steadily in these first three years. We are sure that our sales forec ast is conservative, given the dissatisfac tion among loc al computer users with existing options, and our planned aggressive marketing campaign.

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PC Repair
Table: Ratios
Ratio Analysis Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth 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 Net Profit Margin Return on Equity Activity Ratios 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 0.29 43% 2.15 5.96 0.00 0.28 22% 4.08 4.53 0.00 0.37 11% 8.45 3.01 0.00 n.a n.a n.a n.a n.a FY 2006 0.00% FY 2007 35.94% FY 2008 19.02% Industry Profile 5.23%

8.22% 16.81% 100.00% 0.00% 100.00% 42.77% 0.00% 42.77% 57.23%

8.15% 12.73% 100.00% 0.00% 100.00% 22.49% 0.00% 22.49% 77.51%

6.01% 8.14% 100.00% 0.00% 100.00% 11.12% 0.00% 11.12% 88.88%

2.79% 51.19% 75.09% 24.91% 100.00% 31.75% 18.48% 50.23% 49.77%

100.00% 78.28% 38.70% 0.00% 10.44%

100.00% 78.22% 65.72% 0.00% 16.28%

100.00% 78.55% 64.96% 0.00% 21.64%

100.00% 100.00% 80.06% 1.23% 1.95%

2.34 2.15 42.77% 59.02% 33.78% FY 2006 6.93% 41.32%

4.45 4.08 22.49% 63.01% 48.84% FY 2007 9.73% 44.10%

8.99 8.45 11.12% 63.16% 56.14% FY 2008 14.69% 44.21%

1.53 1.24 57.27% 2.73% 6.39%

n.a n.a

10.25 9.67 27 3.41

9.88 12.17 32 3.51

9.33 12.17 28 2.67

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

0.75 1.00

0.29 1.00

0.13 1.00

n.a n.a

$34,039 19.32

$60,898 6.84

$109,163 33.24

n.a n.a

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PC Repair
7.6 Projected Balance Sheet
The Balance Sheet shows a steadily increasing net worth over the next three years. Since we are planning to rent, and bec ause computer tec hnology changes so rapidly, we will have only short-term assets, such as computer equipment and furniture. This will make our net worth much more liquid than many similar businesses.

Table: Balance Sheet


Pro Forma Balance Sheet FY 2006 Assets Current Assets Cash 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 Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth FY 2007 FY 2008

$44,593 $4,890 $10,000 $59,482

$62,165 $6,404 $10,000 $78,569

$105,440 $7,385 $10,000 $122,825

$0 $0 $0 $59,482 FY 2006

$0 $0 $0 $78,569 FY 2007

$0 $0 $0 $122,825 FY 2008

$12,783 $12,661 $0 $25,444 $0 $25,444 $23,000 ($3,025) $14,064 $34,039 $59,482 $34,039

$11,561 $6,111 $0 $17,672 $0 $17,672 $23,000 $11,039 $26,859 $60,898 $78,569 $60,898

$13,662 $0 $0 $13,662 $0 $13,662 $23,000 $37,898 $48,266 $109,163 $122,825 $109,163

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Appendix
Table: Sales Forecast
Sales Forecast Feb Unit Sales Home PC Unit Small Business Unit Promo Maintenance Contracts Total Unit Sales Unit Prices Home PC Unit Small Business Unit Promo Maintenance Contracts Sales Home PC Unit Small Business Unit Promo Maintenance Contracts Total Sales Direct Unit Costs Home PC Unit Small Business Unit Promo Maintenance Contracts Direct Cost of Sales Home PC Unit Small Business Unit Promo Maintenance Contracts Subtotal Direct Cost of Sales 30.00% 21.00% 8.00% 12.00% $840 $1,500 $0 $0 $2,340 Feb $84.00 $105.00 $4.00 $0.00 $1,400 $1,500 $0 $400 $3,300 Mar $84.00 $105.00 $4.00 $0.00 $840 $1,500 $500 $400 $3,240 Apr $84.00 $105.00 $4.00 $0.00 $4,200 $5,000 $1,500 $800 $11,500 May $84.00 $105.00 $4.00 $0.00 $5,040 $12,500 $2,000 $1,200 $20,740 Jun $84.00 $105.00 $4.00 $0.00 $5,600 $17,500 $0 $1,200 $24,300 Jul $84.00 $105.00 $4.00 $0.00 $5,600 $20,000 $2,000 $1,200 $28,800 Aug $84.00 $105.00 $4.00 $0.00 $5,600 $22,500 $2,000 $1,600 $31,700 Sep $84.00 $105.00 $4.00 $0.00 $4,760 $25,000 $2,000 $1,600 $33,360 Oct $84.00 $105.00 $4.00 $0.00 $4,200 $7,500 $0 $1,200 $12,900 Nov $84.00 $105.00 $4.00 $0.00 $2,800 $5,000 $0 $1,600 $9,400 Dec $84.00 $105.00 $4.00 $0.00 $5,600 $12,500 $1,750 $1,600 $21,450 Jan $84.00 $105.00 $4.00 $0.00 3 3 0 0 6 Feb $280.00 $500.00 $50.00 $400.00 Mar 5 3 0 1 9 Mar $280.00 $500.00 $50.00 $400.00 Apr 3 3 10 1 17 Apr $280.00 $500.00 $50.00 $400.00 May 15 10 30 2 57 May $280.00 $500.00 $50.00 $400.00 Jun 18 25 40 3 86 Jun $280.00 $500.00 $50.00 $400.00 Jul 20 35 0 3 58 Jul $280.00 $500.00 $50.00 $400.00 Aug 20 40 40 3 103 Aug $280.00 $500.00 $50.00 $400.00 Sep 20 45 40 4 109 Sep $280.00 $500.00 $50.00 $400.00 Oct 17 50 40 4 111 Oct $280.00 $500.00 $50.00 $400.00 Nov 15 15 0 3 33 Nov $280.00 $500.00 $50.00 $400.00 Dec 10 10 0 4 24 Dec $280.00 $500.00 $50.00 $400.00 Jan 20 25 35 4 84 Jan $280.00 $500.00 $50.00 $400.00

$252 $315 $0 $0 $567

$420 $315 $0 $0 $735

$252 $315 $40 $0 $607

$1,260 $1,050 $120 $0 $2,430

$1,512 $2,625 $160 $0 $4,297

$1,680 $3,675 $0 $0 $5,355

$1,680 $4,200 $160 $0 $6,040

$1,680 $4,725 $160 $0 $6,565

$1,428 $5,250 $160 $0 $6,838

$1,260 $1,575 $0 $0 $2,835

$840 $1,050 $0 $0 $1,890

$1,680 $2,625 $140 $0 $4,445

Page 1

Appendix
Table: Personnel
Personnel Plan Owner Tech1 Tech2 Part Time Total People Total Payroll 0% 0% 0% 0% Feb $2,000 $0 $0 $0 1 $2,000 Mar $2,000 $0 $0 $0 1 $2,000 Apr $2,500 $0 $0 $0 1 $2,500 May $2,500 $2,400 $0 $0 2 $4,900 Jun $3,000 $2,400 $0 $0 2 $5,400 Jul $3,000 $2,400 $0 $0 2 $5,400 Aug $3,000 $2,400 $2,400 $0 3 $7,800 Sep $3,000 $2,400 $2,400 $0 3 $7,800 Oct $3,000 $2,400 $2,400 $0 3 $7,800 Nov $3,000 $2,400 $2,400 $0 3 $7,800 Dec $3,000 $2,400 $2,400 $0 3 $7,800 Jan $3,000 $2,400 $2,400 $0 3 $7,800

Page 2

Appendix
Table: General Assumptions
General Assumptions Feb Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 7.00% 10.00% 30.00% 0 2 7.00% 10.00% 30.00% 0 Mar 3 7.00% 10.00% 30.00% 0 Apr 4 7.00% 10.00% 30.00% 0 May 5 7.00% 10.00% 30.00% 0 Jun 6 7.00% 10.00% 30.00% 0 Jul 7 7.00% 10.00% 30.00% 0 Aug 8 7.00% 10.00% 30.00% 0 Sep 9 7.00% 10.00% 30.00% 0 Oct 10 7.00% 10.00% 30.00% 0 Nov 11 7.00% 10.00% 30.00% 0 Dec 12 7.00% 10.00% 30.00% 0 Jan

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Appendix
Table: Profit and Loss
Pro Forma Profit and Loss Sales Direct Cost of Sales Costs of Fulfilling Maintenance Contracts Total Cost of Sales Gross Margin Gross Margin % Feb $2,340 $567 $0 $567 $1,773 75.77% Mar $3,300 $735 $0 $735 $2,565 77.73% Apr $3,240 $607 $48 $655 $2,585 79.78% May $11,500 $2,430 $96 $2,526 $8,974 78.03% Jun $20,740 $4,297 $144 $4,441 $16,299 78.59% Jul $24,300 $5,355 $144 $5,499 $18,801 77.37% Aug $28,800 $6,040 $144 $6,184 $22,616 78.53% Sep $31,700 $6,565 $192 $6,757 $24,943 78.68% Oct $33,360 $6,838 $192 $7,030 $26,330 78.93% Nov $12,900 $2,835 $144 $2,979 $9,921 76.91% Dec $9,400 $1,890 $192 $2,082 $7,318 77.85% Jan $21,450 $4,445 $192 $4,637 $16,813 78.38%

Expenses Payroll Marketing/Promotion Depreciation Lease Expensed Equipment Insurance Website Answering Service Mileage Vehicles Cell Phones Utilities Internet Moving Expenses Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

$2,000 $4,000 $0 $0 $0 $150 $40 $200 $80 $0 $0 $0 $0 $0 $6,470 ($4,697) ($4,697) $109 ($1,442) ($3,364) -143.77%

$2,000 $1,000 $0 $0 $0 $0 $40 $0 $85 $0 $60 $0 $0 $0 $3,185 ($620) ($620) $106 ($218) ($508) -15.39%

$2,500 $3,000 $0 $1,000 $0 $300 $200 $0 $95 $6,000 $120 $500 $120 $2,000 $15,835 ($13,250) ($13,250) $103 ($4,006) ($9,347) -288.48%

$4,900 $2,000 $0 $1,000 $0 $300 $200 $0 $100 $800 $120 $500 $120 $0 $10,040 ($1,066) ($1,066) $99 ($350) ($816) -7.09%

$5,400 $2,000 $0 $1,000 $0 $300 $200 $0 $200 $800 $120 $500 $120 $0 $10,640 $5,659 $5,659 $96 $1,669 $3,894 18.78%

$5,400 $3,000 $0 $1,000 $0 $300 $200 $0 $300 $800 $120 $500 $120 $0 $11,740 $7,061 $7,061 $93 $2,090 $4,878 20.07%

$7,800 $3,000 $0 $1,000 $0 $300 $200 $0 $300 $800 $120 $500 $120 $0 $14,140 $8,476 $8,476 $90 $2,516 $5,870 20.38%

$7,800 $2,000 $0 $1,000 $0 $300 $200 $0 $300 $800 $120 $500 $120 $0 $13,140 $11,803 $11,803 $87 $3,515 $8,201 25.87%

$7,800 $2,000 $0 $1,000 $0 $300 $200 $0 $300 $800 $120 $500 $120 $0 $13,140 $13,190 $13,190 $83 $3,932 $9,175 27.50%

$7,800 $2,000 $0 $1,000 $0 $300 $200 $0 $300 $800 $120 $500 $120 $0 $13,140 ($3,219) ($3,219) $80 ($990) ($2,309) -17.90%

$7,800 $2,000 $0 $1,000 $0 $300 $200 $0 $300 $800 $120 $500 $120 $0 $13,140 ($5,822) ($5,822) $77 ($1,770) ($4,129) -43.93%

$7,800 $2,000 $0 $1,000 $0 $300 $200 $0 $300 $800 $120 $500 $120 $0 $13,140 $3,673 $3,673 $74 $1,080 $2,519 11.75%

15%

Page 4

Appendix
Table: Cash Flow
Pro Forma Cash Flow Feb Cash Received Cash from Operations Cash Sales 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 $0 $547 $0 $0 $0 $0 $0 $2,652 ($312) $27,688 $0 $547 $0 $0 $0 $0 $0 $5,649 ($2,349) $25,340 $0 $547 $0 $0 $0 $0 $0 $5,400 ($2,160) $23,179 $0 $547 $0 $0 $0 $0 $0 $15,871 ($4,371) $18,809 $0 $547 $0 $0 $0 $0 $0 $14,901 $5,839 $24,647 $0 $547 $0 $0 $0 $0 $0 $19,503 $4,797 $29,444 $0 $547 $0 $0 $0 $0 $0 $23,556 $5,244 $34,688 $0 $547 $0 $0 $0 $0 $0 $24,243 $7,457 $42,145 $0 $547 $0 $0 $0 $0 $0 $24,637 $8,723 $50,868 $0 $547 $0 $0 $0 $0 $0 $24,629 ($11,729) $39,139 $0 $547 $0 $0 $0 $0 $0 $12,897 ($3,497) $35,642 $0 $547 $0 $0 $0 $0 $0 $12,499 $8,951 $44,593 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

$2,340 $2,340

$3,300 $3,300

$3,240 $3,240

$11,500 $11,500

$20,740 $20,740

$24,300 $24,300

$28,800 $28,800

$31,700 $31,700

$33,360 $33,360

$12,900 $12,900

$9,400 $9,400

$21,450 $21,450

0.00%

$0 $0 $0 $0 $0 $0 $0 $2,340 Feb

$0 $0 $0 $0 $0 $0 $0 $3,300 Mar

$0 $0 $0 $0 $0 $0 $0 $3,240 Apr

$0 $0 $0 $0 $0 $0 $0 $11,500 May

$0 $0 $0 $0 $0 $0 $0 $20,740 Jun

$0 $0 $0 $0 $0 $0 $0 $24,300 Jul

$0 $0 $0 $0 $0 $0 $0 $28,800 Aug

$0 $0 $0 $0 $0 $0 $0 $31,700 Sep

$0 $0 $0 $0 $0 $0 $0 $33,360 Oct

$0 $0 $0 $0 $0 $0 $0 $12,900 Nov

$0 $0 $0 $0 $0 $0 $0 $9,400 Dec

$0 $0 $0 $0 $0 $0 $0 $21,450 Jan

$2,000 $105 $2,105

$2,000 $3,102 $5,102

$2,500 $2,353 $4,853

$4,900 $10,424 $15,324

$5,400 $8,954 $14,354

$5,400 $13,556 $18,956

$7,800 $15,209 $23,009

$7,800 $15,896 $23,696

$7,800 $16,290 $24,090

$7,800 $16,282 $24,082

$7,800 $4,550 $12,350

$7,800 $4,152 $11,952

Page 5

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet Feb Assets Current Assets Cash 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 Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $19,225 $0 $19,225 $0 $19,225 $23,000 ($3,025) $0 $19,975 $39,200 $19,975 $3,033 $18,678 $0 $21,711 $0 $21,711 $23,000 ($3,025) ($3,364) $16,611 $38,321 $16,611 $2,004 $18,131 $0 $20,135 $0 $20,135 $23,000 ($3,025) ($3,872) $16,103 $36,238 $16,103 $10,130 $17,584 $0 $27,714 $0 $27,714 $23,000 ($3,025) ($13,219) $6,756 $34,470 $6,756 $8,505 $17,037 $0 $25,542 $0 $25,542 $23,000 ($3,025) ($14,035) $5,940 $31,482 $5,940 $13,050 $16,490 $0 $29,540 $0 $29,540 $23,000 ($3,025) ($10,141) $9,834 $39,374 $9,834 $14,680 $15,943 $0 $30,623 $0 $30,623 $23,000 ($3,025) ($5,263) $14,712 $45,335 $14,712 $15,354 $15,396 $0 $30,750 $0 $30,750 $23,000 ($3,025) $607 $20,582 $51,332 $20,582 $15,733 $14,849 $0 $30,582 $0 $30,582 $23,000 ($3,025) $8,809 $28,784 $59,366 $28,784 $16,130 $14,302 $0 $30,432 $0 $30,432 $23,000 ($3,025) $17,983 $37,958 $68,390 $37,958 $4,422 $13,755 $0 $18,177 $0 $18,177 $23,000 ($3,025) $15,674 $35,649 $53,826 $35,649 $3,711 $13,208 $0 $16,919 $0 $16,919 $23,000 ($3,025) $11,544 $31,519 $48,439 $31,519 $12,783 $12,661 $0 $25,444 $0 $25,444 $23,000 ($3,025) $14,064 $34,039 $59,482 $34,039 $0 $0 $0 $39,200 $0 $0 $0 $38,321 Feb $0 $0 $0 $36,238 Mar $0 $0 $0 $34,470 Apr $0 $0 $0 $31,482 May $0 $0 $0 $39,374 Jun $0 $0 $0 $45,335 Jul $0 $0 $0 $51,332 Aug $0 $0 $0 $59,366 Sep $0 $0 $0 $68,390 Oct $0 $0 $0 $53,826 Nov $0 $0 $0 $48,439 Dec $0 $0 $0 $59,482 Jan Starting Balances Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

$28,000 $1,200 $10,000 $39,200

$27,688 $633 $10,000 $38,321

$25,340 $898 $10,000 $36,238

$23,179 $1,291 $10,000 $34,470

$18,809 $2,673 $10,000 $31,482

$24,647 $4,727 $10,000 $39,374

$29,444 $5,891 $10,000 $45,335

$34,688 $6,644 $10,000 $51,332

$42,145 $7,222 $10,000 $59,366

$50,868 $7,522 $10,000 $68,390

$39,139 $4,687 $10,000 $53,826

$35,642 $2,797 $10,000 $48,439

$44,593 $4,890 $10,000 $59,482

Page 6