[Company Name]Business Plan 2011

Contact: [Name]
Address: [Address]
Phone: XXX-XXX-XXXX
Email: [Email Address]

Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [Company Name]. in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of [Company Name].
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 [Company
Name].
Upon request, this document is to be immediately returned to [Company Name].

___________________
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...........................................................................................................................2
1.1 Objectives....................................................................................................................................2
1.2 Mission...........................................................................................................................................2
1.3 Keys to Success.........................................................................................................................2
2.0 Company Summary......................................................................................................................3
2.1 Company Ownership................................................................................................................3
2.2 Company History.......................................................................................................................3
Table: Past Performance.............................................................................................................4
3.0 Services.............................................................................................................................................5
4.0 Market Analysis Summary.........................................................................................................5
4.1 Market Segmentation..............................................................................................................5
4.2 Target Market Segment Strategy........................................................................................6
4.3 Service Business Analysis......................................................................................................6
4.3.1 Competition and Buying Patterns...............................................................................7
5.0 Strategy and Implementation Summary.............................................................................7
5.1 Competitive Edge......................................................................................................................7
5.2 Marketing Strategy...................................................................................................................8
5.3 Sales Strategy............................................................................................................................8
5.3.1 Sales Forecast....................................................................................................................8
Table: Sales Forecast...............................................................................................................8
Chart: Sales Monthly...............................................................................................................9
Chart: Sales by Year................................................................................................................9
5.4 Milestones..................................................................................................................................10
Table: Milestones.........................................................................................................................10
6.0 Management Summary.............................................................................................................10
6.1 Personnel Plan..........................................................................................................................10
Table: Personnel..........................................................................................................................11
7.0 Financial Plan................................................................................................................................11
7.1 Important Assumptions........................................................................................................11
7.2 Break-even Analysis...............................................................................................................12
Table: Break-even Analysis.....................................................................................................13
Chart: Break-even Analysis....................................................................................................13
7.3 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
7.4 Projected Cash Flow...............................................................................................................17
Table: Cash Flow.........................................................................................................................17
Chart: Cash...................................................................................................................................18
7.5 Projected Balance Sheet......................................................................................................19
Table: Balance Sheet.................................................................................................................19
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Table of Contents

7.6 Business Ratios........................................................................................................................20

Table: Ratios.................................................................................................................................20
APPENDIX
Table: Sales Forecast...........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Profit and Loss..........................................................................................................................3
Table: Cash Flow...................................................................................................................................4
Table: Balance Sheet...........................................................................................................................6

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[Company Name]

1.0 Executive Summary

Company: [Company Name].
Contact: [Name]& [Name]
Address: [Address]
Phone: XXX-XXX-XXXX
Email: [Email Address]
Purpose
The purpose of this Business Plan is to:
1. Set a course for the Company's management to successfully manage, operate, and administer
the business.
2. To manage and increase the volume of existing contracts and customer base.
3. Inform financing sources of the capital requirements being requested by the Company, in
addition to its history, its projected future, and how the requested funding would give
the Company the ability to add value to the local economy, generate tax revenues for local and
federal government, and help put people back to work.
The Company
[Company Name]. encompasses three major components in its business model.
1. [Company Name] is one of the largest waste clearing facilities in the southeast United
States.
2. The company manages two waste transfer stations that take in all waste products,
separates recyclable material from waste product and delivers true debris to the landfills.
3. [Company Name] is one of the largest producers of Biomass fuel in [STATE].
Additionally, [Company Name]. is expanding its exposure through effective marketing as well
as introducing the area to market segments that have not yet discovered the Company.
Services
[Company Name]. is a recycling, waste management and Biomass fuel facility.
The Market
[Company Name]'s target market strategies are tri-fold and involve becoming the destination of
choice for companies in the South [CITY] as well as the South [STATE] area in need of
environmental recycling and waste management services. These customers prefer certain services
and quality and it's the Company's duty to deliver on their expectations.

To increase/takeover management services of existing and new waste transfer stations.

To expand its existing Biomass fuel contracts throughout the Southeast United States.

THE NEED FOR GARBAGE REMOVAL AND ENERGY FUEL SOURCES REQUIRED BY THE
GENERAL PUBLIC WILL ALLWAYS BE INCREASING.

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[Company Name]

Financial Consideration
In addition to diligently following this Business Plan to maintain the safeguards for successful
business operations and achieve the financial projections herein, the current financial plan of
[Company Name]. includes: restructuring of existing debt, purchasing a variety of new equipment
and operating capital. The requested funding amount is $8,000,000. The Company hopes to
secure the requested funds sometime in the third quarter of 2011. The Company's gross revenues
will increase by 47.4% over the next twelve months due to activation of the companys existing 20
year Biomass fuel contract as well as the opening of the second waste transfer station. Once the
above income streams are realized by [NAME] Recyclers, the Companys revenue is projected to
increase during the next three years, from $6,588,400 to $6,989,634.

Chart: Highlights

1.1 Objectives
[Company Name]'s main objectives are:
1. To provide the South [STATE] area with environmental waste management services.
2. Produce quality jobs.
3. To put needed income back into the economy.
1.2 Mission
[Company Name]'s mission is to impact the environmental recycling industry by offering
outstanding client service, safety, and reliability. It is to become the recognized leader in its
targeted market for waste management and recycling services.
1.3 Keys to Success
[Company Name]'s keys to success involve satisfying its customers and delivering excellent
service.

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[Company Name]

2.0 Company Summary

Company: [Company Name].
Contact: [Name]& [Name]
Address: [Address]
Phone: XXX-XXX-XXXX
Email: [Email Address]
[Company Name]. is a clearing waste facility located in [CITY], [STATE]. The Company was formed
to be a waste clearing yard when the burning or burying of debris was no longer allowed; thus,
[Company Name] was created to process debris into useable matter that can make fuel.
Additionally, the Company manages a waste transfer station and takes debris to the landfill. The
Company has contracts with [Vendor], [Vendor], and [Vendor].
2.1 Company Ownership
[Company Name]. is a C-Corporation established in 1999. It is owned by [Name], who has 100%
ownership of the Company.
2.2 Company History
The following table and chart shows the past financials for [Company Name].
Sales for 2010 were $4,937,506, respectively. The earnings for this period were ($869,792),
respectively.

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Table: Past Performance

Past Performance
Sales
Gross Margin
Gross Margin %
Operating Expenses

2010
$4,937,506
$4,937,506
100.00%
$5,940,608

Balance Sheet
2010
Current Assets
Cash
Other Current Assets
Total Current Assets

$557,463
$71,994
$629,457

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets

$1,925,391
$0
$1,925,391

Total Assets

$2,554,848

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities (interest free)
Total Current Liabilities

$0
$3,411,179
$0
$3,411,179

Long-term Liabilities
Total Liabilities

$603,152
$4,014,331

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Capital and Liabilities
Other Inputs
Payment Days

$5,312,905
($5,902,596)
($869,792)
($1,459,483)
$2,554,848

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[Company Name]

3.0 Services
[Company Name]. is a clearing waste facility. The Company has three different contracts and
provides services such as:
Contract with [Vendor], Recycling Division:
Producing and hauling a minimum of 200 tons of mulch per day to their facility, based on a
current contract for 7 years.
Contract with [Vendor], LLC:
Producing and hauling a minimum of 500 tons of mulch per day to their facility, based on a
current contract for 20 years.
Contract with [Vendor], USA Inc:
Hauling MSW and C&D for [Vendor] from two locations to their landfill.
Managing and operating both locations. This contract is for a total of 5 years
4.0 Market Analysis Summary
[Company Name]. competes in the market for environmental recycling and waste management
services. Additionally, the Company manages a waste transfer station and takes debris to the
landfill, as well as supply fuel wood. The Company's market area consists of the South [CITY] as
well as the South [STATE] area ([COUNTIES]).
The Company's industry does not have any seasonality that affects it; therefore, [Company
Name]. has the services and professionalism necessary to flourish within its market. By delivering
superior customer service, [Company Name]'s potential is excellent.
4.1 Market Segmentation
[Company Name]'s target market strategy is based on becoming a destination for companies in
the South [CITY] as well as the South [STATE] area in need of environmental recycling services.
These companies are heavily dependent on [Company Name]'s services for their business to
function effectively. [Company Name]'s ultimate goal is to satisfy the needs of its
clientele. Furthermore, the Company's marketing strategy is based on superior performance in the
following areas:

Quality recycling and waste management services

Having a knowledgeable staff
Demonstrating excellent workmanship

Customers within the environmental recycling industry want exceptional customer service as well
as quality workmanship. [Company Name]'s customers appreciate the valuable product that
the industry offers. The Company is beneficial to its customers because it delivers the dedication
and dependability that they desire.

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4.2 Target Market Segment Strategy

[Company Name]'s target market segments consist of businesses in the South [STATE] area that
rely on environmental recycling services. The Company knows that satisfied customers aid in
referring its business to other clients who need its services.
Currently, [Company Name]'s choice of target markets is based on an in-depth understanding of
the customer's needs. [Company Name]'s exceptional service, quality equipment
and reliability will allow the Company to effectively compete and establish a reputation within its
area. However strengthening its marketing strategy will improve the Company's profitability levels
as well as provide more business opportunities for the Company.
4.3 Service Business Analysis
Recycling is one of the largest and most rapidly developing sustainable industries. Major recycling
programs are run by government funded companies which collect recyclables from consumers,
then sort the collected items, next cleans them, and then refine them before making them into
new products.
Environmental- Recycling reuses many of the world's limited natural resources. Without recycling,
the products are thrown away to sit in a landfill where some slowly decompose and others sit for
eternity. Recycling reduces the amount of extraction of natural resources. Machines have been
developed to be further equipped to handle more recyclables and process them at a greater rate
while limiting the carbon footprint the recycling industry has on the earth. All of this has been
developed due to the increase in recyclers across America as well as across the world. Companies
have also worked on becoming more earth friendly by using more earth friendly products which
can be more commonly recycled when compared to their previously used products. Recycling has
become a reason for businesses and industries to create more recyclable and sustainable products
which all help the earth.
There have been many government policies and agencies that have influenced the recycling
industry. The government has improved regulations in the construction industry in order to
decrease the amount of waste which enters the environment through their projects. Some of
these new regulations include double liners and leachate collection systems. Along with
government policies come government agencies. One major government agency is the EPA, or the
Environmental Protection Agency. The EPA works with industries and all levels of the government
through pollution prevention programs and energy conservation efforts.
As simple as it may be, [Company Name]'s method of executing exceptional service will have an
important effect on the bottom line: People want to give their business to those who appreciate
it. Quality work as well as a practice of strong communication will bring the support the Company
desires.

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4.3.1 Competition and Buying Patterns

[Company Name]'s major league competitors include Waste Management and Viola Recycling. The
Company competes directly with them to control transfer stations which control shipping to
garbage; therefore, the company excels by keeping its equipment updated and current to ensure
a quality service to its client. However, there is no real competition in the fuel wood division
because there are only two companies in the South [STATE] area that supply service to the power
company.
Ultimately, it is [Company Name]'s focus to fulfill client's demands because it aids the Company in
generating future business. If clients are happy, they will recommend the Company to others who
need and rely on the service. Furthermore, [Company Name] knows that the proper image and
visibility aids the Company in getting its name out.
5.0 Strategy and Implementation Summary
The strategy of [Company Name]. is to consolidate its good customer and client service by
offering quality service, hiring the best staff and having a competitive pricing structure. The
Company has clearly defined the target market and has differentiated itself by offering a solid
solution to fulfilling its customers needs. Reasonable sales targets have been established with an
implementation plan designed to ensure the goals set forth below are achieved.
5.1 Competitive Edge
[Company Name]. offers the following advantages to customers.

Quality Service. The Company will provide its clients with courteous, prompt, and
dependable service. It intends to build upon its safety morals.
Competitive rates. The Company will provide competitive rates for its clients because it has
low cost inputs.
[Company Name]'s hardworking and dedicated staff definitely aids in the Company's overall
success. By building a business based on long-standing relationships with satisfied clients,
[Company Name]. simultaneously builds defenses against future competition. The longer the
relationship stands, the more the Company helps its customers understand what they offer them
and why they need it.

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[Company Name]

5.2 Marketing Strategy

[Company Name]'s marketing strategy involves:

Working with sales representatives that represent the Company in the waste management
industry, as well as residential and commercial accounts to increase its revenue. (5 year
contract)
Fuel side: maintain contracts and stay on top of power plants (20 year contract). Additionally,
the Company's fuel wood business has its hands full for 2 years.

[Company Name]. serves its market by providing quality workmanship and an exceptional
service to its customers. It knows what each customer needs and aims to satisfy them.
Additionally, the Company has an advantage because the owner, [Name] is a superior
business man with excellent work ethics and sufficient industry experience; thus he offers an indepth knowledge of the recycling and waste management industry and knows the ins and outs of
the business. Furthermore, the owner and the Company's level of integrity helps in building and
maintaining a strong reputation within its community.
5.3 Sales Strategy
[Company Name]'s utilizes sales representatives which sells and pitches its services to waste
companies,
residential
and commercial accounts. Additionally, the
Company has an
excellent image and work ethics. It makes an effort to stay in line with the recycling and waste
management industry in its area that are offering similar services; therefore paying attention to
industry standards, rates, as well as having the latest equipment is important. Ultimately, keeping
customers happy is an implicit part of building a relationship that will encourage repeat business.
5.3.1 Sales Forecast
The chart and table below shows [Company Name]'s projected Sales Forecast. Annual projections
for three years are shown here, with first year monthly figures in the appendix.
[Company Name]'s sales forecast includes recycling and waste management services to [Vendor],
[VENDOR], [Vendor]. [Company Name]'s projections for 2011 are $6,588,400. Sales projections
for 2012 and 2013 are based on a 3% increase. The Company expects its contracts to grow to $41
million in 20 years.
Table: Sales Forecast
Sales Forecast
2011

2012

2013

$884,000
$2,210,000
$3,494,400
$6,588,400

$910,520
$2,276,300
$3,599,232
$6,786,052

$937,836
$2,344,589
$3,707,209
$6,989,634

Direct Cost of Sales

Recycling/Waste Management Services

2011
$1,712,984

2012
$1,764,374

2013
$1,817,305

Subtotal Direct Cost of Sales

$1,712,984

$1,764,374

$1,817,305

Sales
[Vendor]
Piedmont Green
[Vendor]
Total Sales

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[Company Name]

Chart: Sales Monthly

Chart: Sales by Year

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[Company Name]

5.4 Milestones
In order to achieve the growth and marketing goals that has been outlined in this business plan,
[Company Name]. has deadlines to meet and ideas to implement. These deadlines and ideas are
called "milestones". Milestones are the most important events and/or projects that must be
completed in order to ensure the success of [Company Name].
Because of the critical importance of milestones to the Company's growth, success, and
operational efficiency, management will periodically review and update the progress that has been
made in completing each milestone. The review and update process will include adding new
milestones, deleting completed milestones, and revising estimated end dates and budgets.
Table: Milestones
Milestones
Milestone
Obtain Loan
Refinance loan used for real-estate
purchase/construction
Refinance loans/lease used to buy
equipment
Purchase real-estate to be used by
the business
Purchase equipment
Pay Down Payables
Cover Operating Capital
Totals

Start Date
10/1/2011

End Date
12/31/2011

Budget
$0
$3,178,160

Manager
[Name]
[Name]

$1,370,004

[Name]

$1,250,000

[Name]

$4,655,735
$275,000
$1,271,101
$12,000,000

[Name]
[Name]
[Name]

6.0 Management Summary

[Name] is the owner of [Company Name]. He established [Company Name]. in 1999 in [CITY],
[STATE]. In addition to [NAME]'s extensive knowledge of the recycling and waste management
industry, he also has many years of managerial experience. [NAME] has assistance from his wife
[NAME], who handles the administrative and financial duties of the Company, as well as the
assistance of [Name], who serves as the Chief Financial Officer of the Company. The team's strong
managerial skills and leadership qualities aids them in running the business effectively.
6.1 Personnel Plan
The table below contains the details of [Company Name]'s personnel plan. The detailed monthly
personnel plan for the first year is included in the appendix.
[Company Name]'s key staff consists of the owner, [Name], his wife [NAME], and [Name].
Additional personnel will be hired as needed.

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[Company Name]

Table: Personnel
Personnel Plan
[Company Name]Staff

2011
$1,098,588

2012
$1,131,546

2013
$1,165,492

$1,098,588

$1,131,546

$1,165,492

Total People
Total Payroll

7.0 Financial Plan

The current financial plan is based on the assumption of achieving desired levels of funding, in
which [Company Name]. plans to obtain funding sources in the amount of $8,000,000 for the
purpose of purchasing equipment, expansion, and covering operating capital in the first year of
plan implementation. Additionally, this Business Plan is used by the management of [Company
Name]. As a road map to its success. It is an indispensable tool for the ongoing performance and
improvement of the Company, and it will be referred to often as management plots its business
course.
Management commits to reviewing this Business Plan on a regular basis to make certain financial
projections remain accurate and strategies remain pertinent as the economy, technology,
communication methods, and customer demographics change. The three year financial projections
within this Business Plan indicate that the Company will have generated sufficient growth, profits,
and cash to permit the Company to continue to exists and prosper. Evaluation of the Company's
success will be an ongoing process involving the owner's monthly review of financial statements
and other pertinent financial data.
7.1 Important Assumptions
The table below presents the assumptions used in the financial calculations of this plan. [Company
Name]. is a C-Corp business and is taxed accordingly. The Company's expenses assume a 3%
increase due to inflation & other cost variables.

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[Company Name]

7.2 Break-even Analysis

The monthly break-even point is shown in the Break-Even Analysis Table below. The break-even
analysis has been calculated on the "burn rate" of The Company. [Company Name]. feels that this
gives the investor a more accurate picture of the actual risk of the venture. The Break-Even
Analysis Table is based on the Company's forecasted monthly expenses, cost of sales, and gross
margins. It forecasts the average revenue (sales) level that must be achieved each month for the
Company to break-even (show neither a profit nor a loss).
Even though Management's desire is to reach the break-even level every month and as early in
the month as possible, it is unrealistic to believe that the break-even point will be achieved in
every month of the Company's existence. Management realizes that there are several factors that
may cause monthly losses. The most common factors include:
Periods of seasonally slow sales/business.
Months in which annual or unusual expenses occur.
During months following strategically planned personnel expansion where increases in payroll,
employee benefits, and payroll taxes are not immediately offset by increased production, sales or
profits.
During months following strategically planned asset acquisition where increases in depreciation,
operating expenses, and long-term loan finance charges are not immediately offset by increased
production, sales and profits.
Management will closely follow the Financial Statement Review section of the Financial Plan
contained within this Business Plan by reviewing the Company's financial statements on a monthly
basis. This is done to make certain that months without profit are the result of one of the factors
listed above as opposed to a growing negative trend. Management will take immediate action to
reverse the trend by reducing expenses, increasing profit margins, or increasing sales should it
determine that sustained months without profit are the result of factors other than those listed
above.

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[Company Name]

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$268,566

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

26%
$198,739

Chart: Break-even Analysis

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[Company Name]

7.3 Projected Profit and Loss

The following Projected Profit and Loss Table and charts illustrate [Company Name]'s sales,
operating expenses, and profitability over the next three years. It illustrates the effects on
profitability of increased expenses such as asset acquisition, personnel, and marketing as the
Company expands. It also illustrates the delayed revenue (sales) growth that occurs months after
the capital expenditures of expansion. A monthly projection for the first twelve months of sales,
direct cost of sales, operating expenses, gross profits, tax consequences, and net profits after
taxes is found in the appendix.
The sales for 2011, 2012, and 2013 are $6,588,400, $6,786,052, and $6,989,634, respectively.
The net profit for the same period is $1,361,030, $732,199 and $823,368, respectively. The
percentages of the net profit sales for this period are 20.66%, 10.79%, and 11.78%, respectively.
Important notes regarding Depreciation, Payroll & Miscellaneous Expenses

The Company's miscellaneous expenses are 10% of the operating cost.

Once the Company receives funding to add the new assets, the depreciation of the equipment
will be over a 10 year period, while the depreciation of the property will be over a 39 year
period.

Table: Profit and Loss

Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

2011
$6,588,400
$1,712,984
$0
$1,712,984

2012
$6,786,052
$1,764,374

2013
$6,989,634
$1,817,305

$1,764,374

$1,817,305

Gross Margin
Gross Margin %

$4,875,416
74.00%

$5,021,678
74.00%

$5,172,329
74.00%

Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other

$1,098,588
$9,240
$13,102
$186,000
$33,768
$220,536
$164,788
$658,840

$1,131,546
$9,517
$78,608
$191,580
$34,781
$227,152
$169,732
$678,605

$1,165,492
$9,803
$78,608
$197,327
$35,824
$233,967
$174,824
$698,963

Total Operating Expenses

$2,384,862

$2,521,521

$2,594,808

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$2,490,554
$2,503,656
$546,225
$583,299

$2,500,157
$2,578,765
$1,454,158
$313,800

$2,577,520
$2,656,128
$1,401,281
$352,872

Net Profit
Net Profit/Sales

$1,361,030
20.66%

$732,199
10.79%

$823,368
11.78%

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[Company Name]

Chart: Profit Monthly

Chart: Profit Yearly

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[Company Name]

Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

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[Company Name]

7.4 Projected Cash Flow

[Company Name]. has applied for $8,000,000 in loan funding. The Company forecast that it
will receive the funding in the third quarter of 2011. During this period, [Company Name]. will use
the money to purchase equipment, purchase real-estate to be used by the business, and to
restructure existing debt as well as cover working capital. The equipment and realestate purchases are reflected in the purchase of long-term assets. Additionally, restructuring the
loan will save the Company around $30,000 per month in payments. The amortization schedule of
the loan is 15 years.
The following table displays [Company Name]'s cash flow and the chart illustrates monthly cash
flow in the first year. Monthly cash flow projections are also included in the appendix.
Table: Cash Flow
Pro Forma Cash Flow
2011

2012

2013

$6,588,400
$6,588,400

$6,786,052
$6,786,052

$6,989,634
$6,989,634

$0
$0
$0
$12,000,000
$0
$0
$0
$18,588,400

$0
$0
$0
$0
$0
$0
$0
$6,786,052

$0
$0
$0
$0
$0
$0
$0
$6,989,634

2012

2013

$1,098,588
$3,716,839
$4,815,427

$1,131,546
$4,844,427
$5,975,973

$1,165,492
$4,915,716
$6,081,208

$0
$170,559
$0
$65,614
$0
$5,905,735
$0
$10,957,335

$0
$322,236
$0
$303,211
$0
$0
$0
$6,601,420

$0
$322,236
$0
$303,211
$0
$0
$0
$6,706,655

$7,631,065
$8,188,528

$184,632
$8,373,160

$282,978
$8,656,138

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

2011

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[Company Name]

Chart: Cash

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[Company Name]

7.5 Projected Balance Sheet

The Balance Sheet Table (below) shows the Pro-Forma Balance Sheet projections. In the appendix,
the first twelve months are shown individually.
[Company Name]'s net worth is ($98,453), $633,747, and $1,457,114 for 2011, 2012, and 2013
respectively. The Company's total assets for this same period will be $16,078,546, $16,184,570,
and $16,388,940, respectively.
Table: Balance Sheet
Pro Forma Balance Sheet
2011

2012

2013

$8,188,528
$71,994
$8,260,522

$8,373,160
$71,994
$8,445,154

$8,656,138
$71,994
$8,728,132

$7,831,126
$13,102
$7,818,024
$16,078,546

$7,831,126
$91,710
$7,739,416
$16,184,570

$7,831,126
$170,318
$7,660,808
$16,388,940

2012

2013

$398,841
$3,240,620
$0
$3,639,461

$398,112
$2,918,384
$0
$3,316,496

$404,562
$2,596,148
$0
$3,000,710

Long-term Liabilities
Total Liabilities

$12,537,538
$16,176,999

$12,234,327
$15,550,823

$11,931,116
$14,931,826

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

$5,312,905
($6,772,388)
$1,361,030
($98,453)
$16,078,546

$5,312,905
($5,411,358)
$732,199
$633,747
$16,184,570

$5,312,905
($4,679,158)
$823,368
$1,457,114
$16,388,940

($98,453)

$633,747

$1,457,114

Assets
Current Assets
Cash
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

Net Worth

2011

Page 19

[Company Name]

7.6 Business Ratios

The table below presents the projected business ratios from the waste collection and recycling
industry as a reference with sales from $1,000,000 -$4,999,999.
Table: Ratios
Ratio Analysis
Sales Growth
Percent of Total Assets
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

2011
33.44%

2012
3.00%

2013
3.00%

Industry Profile
0.07%

0.42%
27.82%
72.18%
100.00%

0.37%
35.97%
64.03%
100.00%

0.33%
42.92%
57.08%
100.00%

28.54%
58.36%
41.64%
100.00%

20.02%
3.39%
23.41%
76.59%

14.38%
2.72%
17.10%
82.90%

9.78%
2.17%
11.95%
88.05%

34.65%
34.50%
69.15%
30.85%

100.00%
100.00%
58.54%

100.00%
100.00%
58.94%

100.00%
100.00%
58.29%

100.00%
59.90%
15.68%

0.14%
63.74%

0.14%
62.47%

0.14%
62.51%

0.24%
4.09%

1.39
1.39
23.41%
29.40%
22.52%

2.50
2.50
17.10%
24.79%
20.55%

4.39
4.39
11.95%
21.95%
19.33%

1.36
1.34
69.15%
42.38%
13.08%

Page 20

[Company Name]

Table: Ratios (Continued)

Additional Ratios
Net Profit Margin
Return on Equity
Activity Ratios
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

2011
41.46%
20.58%

2012
41.06%
17.35%

2013
41.71%
15.36%

n.a
n.a

11.96
27
0.38

12.17
30
0.35

12.17
30
0.32

n.a
n.a
n.a

0.31
0.86

0.21
0.84

0.14
0.82

n.a
n.a

$1,352,248
14.15

$4,182,201
16.38

$7,141,011
21.32

n.a
n.a

2.63
20%
1.39
0.50
0.00

2.85
14%
2.50
0.42
0.00

3.08
10%
4.39
0.37
0.00

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

Page 21

Appendix
Table: Sales Forecast
Sales Forecast
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$69,545
$174,135
$274,762
$518,442

$70,930
$175,856
$277,520
$524,306

$71,936
$177,635
$280,305
$529,876

$72,102
$179,411
$284,118
$535,631

$72,355
$181,205
$286,959
$540,519

$72,956
$183,017
$289,829
$545,802

$73,804
$184,737
$292,827
$551,368

$74,539
$186,490
$295,640
$556,669

$74,971
$189,462
$298,611
$563,044

$75,931
$190,444
$301,577
$567,952

$76,878
$193,352
$304,613
$574,843

$78,053
$194,256
$307,639
$579,948

Direct Cost of Sales

Recycling/Waste Management
Services

Jan
$135,754

Feb
$136,202

Mar
$137,463

Apr
$138,838

May
$140,526

Jun
$142,658

Jul
$143,549

Aug
$144,474

Sep
$145,949

Oct
$147,378

Nov
$149,852

Dec
$150,341

Subtotal Direct Cost of Sales

$135,754

$136,202

$137,463

$138,838

$140,526

$142,658

$143,549

$144,474

$145,949

$147,378

$149,852

$150,341

Sales
[Vendor]
Piedmont Green
[Vendor]
Total Sales

Page 1

Appendix
Table: Personnel
Personnel Plan
[Company Name]Staff

Jan
$91,549

Feb
$91,549

Mar
$91,549

Apr
$91,549

May
$91,549

Jun
$91,549

Jul
$91,549

Aug
$91,549

Sep
$91,549

Oct
$91,549

Nov
$91,549

Dec
$91,549

$91,549

$91,549

$91,549

$91,549

$91,549

$91,549

$91,549

$91,549

$91,549

$91,549

$91,549

$91,549

Total People
Total Payroll

Page 2

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Jan
$518,442
$135,754

Feb
$524,306
$136,202

Mar
$529,876
$137,463

Apr
$535,631
$138,838

May
$540,519
$140,526

Jun
$545,802
$142,658

Jul
$551,368
$143,549

Aug
$556,669
$144,474

Sep
$563,044
$145,949

Oct
$567,952
$147,378

Nov
$574,843
$149,852

Dec
$579,948
$150,341

$135,754

$136,202

$137,463

$138,838

$140,526

$142,658

$143,549

$144,474

$145,949

$147,378

$149,852

$150,341

$382,688
73.82%

$388,104
74.02%

$392,413
74.06%

$396,793
74.08%

$399,993
74.00%

$403,144
73.86%

$407,819
73.96%

$412,195
74.05%

$417,095
74.08%

$420,574
74.05%

$424,991
73.93%

$429,607
74.08%

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$51,844

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$52,431

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$52,988

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$53,563

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$54,052

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$54,580

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$55,137

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$55,667

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$56,304

$91,549
$770
$0
$15,500
$2,814
$18,378
$13,732
$56,795

$91,549
$770
$6,551
$15,500
$2,814
$18,378
$13,732
$57,484

$91,549
$770
$6,551
$15,500
$2,814
$18,378
$13,732
$57,995

Total Operating
Expenses

$194,588

$195,174

$195,731

$196,306

$196,795

$197,324

$197,880

$198,410

$199,048

$199,539

$206,779

$207,289

Profit Before Interest

and Taxes
EBITDA
Interest Expense
Taxes Incurred

$188,100

$192,930

$196,682

$200,487

$203,198

$205,820

$209,939

$213,785

$218,047

$221,035

$218,212

$222,318

$188,100
$24,925
$48,953

$192,930
$24,925
$50,402

$196,682
$24,925
$51,527

$200,487
$24,925
$52,669

$203,198
$24,925
$53,482

$205,820
$24,925
$54,269

$209,939
$24,925
$55,504

$213,785
$24,925
$56,658

$218,047
$24,925
$57,937

$221,035
$74,551
$43,945

$224,763
$123,967
$28,274

$228,869
$123,383
$29,680

Net Profit
Net Profit/Sales

$114,223
22.03%

$117,604
22.43%

$120,230
22.69%

$122,893
22.94%

$124,791
23.09%

$126,627
23.20%

$129,510
23.49%

$132,202
23.75%

$135,186
24.01%

$102,539
18.05%

$65,972
11.48%

$69,254
11.94%

Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %

Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other

15%
10%

Page 3

Appendix
Table: Cash Flow
Pro Forma Cash Flow
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$518,442
$518,442

$524,306
$524,306

$529,876
$529,876

$535,631
$535,631

$540,519
$540,519

$545,802
$545,802

$551,368
$551,368

$556,669
$556,669

$563,044
$563,044

$567,952
$567,952

$574,843
$574,843

$579,948
$579,948

$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

$6,000,000

$6,000,000

$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

$518,442

$524,306

$529,876

$535,631

$540,519

$545,802

$551,368

$556,669

$563,044

$6,567,952

$6,574,843

$579,948

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 Longterm Assets
New Investment
Received
Subtotal Cash
Received

0.00%

Page 4

Appendix
Table: Cash Flow (Continued)
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 Longterm Assets
Dividends
Subtotal Cash
Spent
Net Cash Flow
Cash Balance

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$91,549
$10,422
$101,971

$91,549
$312,753
$404,302

$91,549
$315,251
$406,800

$91,549
$318,200
$409,749

$91,549
$321,288
$412,837

$91,549
$324,294
$415,843

$91,549
$327,715
$419,264

$91,549
$330,396
$421,945

$91,549
$333,031
$424,580

$91,549
$337,561
$429,110

$91,549
$375,094
$466,643

$91,549
$410,832
$502,381

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$56,853

$56,853

$56,853

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$5,026

$30,294

$30,294

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$5,905,735

$0

$0
$101,971

$0
$404,302

$0
$406,800

$0
$409,749

$0
$412,837

$0
$415,843

$0
$419,264

$0
$421,945

$0
$424,580

$0
$490,989

$0
$6,459,525

$0
$589,528

$416,471
$973,934

$120,004
$1,093,938

$123,076
$1,217,013

$125,882
$1,342,895

$127,682
$1,470,577

$129,959
$1,600,536

$132,104
$1,732,640

$134,724
$1,867,363

$138,464
$2,005,827

$6,076,963
$8,082,790

$115,318
$8,198,108

($9,580)
$8,188,528

Page 5

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Current
Assets
Cash
Other
Current
Assets
Total Current
Assets
Long-term
Assets
Long-term
Assets
Accumulated
Depreciation
Total Longterm Assets
Total Assets

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$557,463
$71,994

$973,934
$71,994

$1,093,938
$71,994

$1,217,013
$71,994

$1,342,895
$71,994

$1,470,577
$71,994

$1,600,536
$71,994

$1,732,640
$71,994

$1,867,363
$71,994

$2,005,827
$71,994

$8,082,790
$71,994

$8,198,108
$71,994

$8,188,528
$71,994

$629,457

$1,045,928

$1,165,932

$1,289,007

$1,414,889

$1,542,571

$1,672,530

$1,804,634

$1,939,357

$2,077,821

$8,154,784

$8,270,102

$8,260,522

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$7,831,126

$7,831,126

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$6,551

$13,102

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$1,925,391

$7,824,575

$7,818,024

$2,554,848

$2,971,319

$3,091,323

$3,214,398

$3,340,280

$3,467,962

$3,597,921

$3,730,025

$3,864,748

$4,003,212

$10,080,175

$16,094,677

$16,078,546

Starting Balances

Page 6

Appendix
Table: Balance Sheet (Continued)
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

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$0

$302,248

$304,648

$307,494

$310,482

$313,373

$316,705

$319,299

$321,821

$325,099

$361,402

$397,079

$398,841

$3,411,179

$3,411,179

$3,411,179

$3,411,179

$3,411,179

$3,411,179

$3,411,179

$3,411,179

$3,411,179

$3,411,179

$3,354,326

$3,297,473

$3,240,620

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$3,411,179

$3,713,427

$3,715,827

$3,718,673

$3,721,661

$3,724,552

$3,727,884

$3,730,478

$3,733,000

$3,736,278

$3,715,728

$3,694,552

$3,639,461

$603,152

$603,152

$603,152

$603,152

$603,152

$603,152

$603,152

$603,152

$603,152

$603,152

$6,598,126

$12,567,832

$12,537,538

$4,014,331

$4,316,579

$4,318,979

$4,321,825

$4,324,813

$4,327,704

$4,331,036

$4,333,630

$4,336,152

$4,339,430

$10,313,854

$16,262,384

$16,176,999

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

$5,312,905

($5,902,596)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($6,772,388)

($869,792)
($1,459,483)
$2,554,848

$114,223
($1,345,260)
$2,971,319

$231,827
($1,227,656)
$3,091,323

$352,057
($1,107,426)
$3,214,398

$474,950
($984,533)
$3,340,280

$599,741
($859,742)
$3,467,962

$726,368
($733,115)
$3,597,921

$855,878
($603,605)
$3,730,025

$988,080
($471,403)
$3,864,748

$1,123,265
($336,218)
$4,003,212

$1,225,804
($233,679)
$10,080,175

$1,291,776
($167,707)
$16,094,677

$1,361,030
($98,453)
$16,078,546

($1,459,483)

($1,345,260)

($1,227,656)

($1,107,426)

($984,533)

($859,742)

($733,115)

($603,605)

($471,403)

($336,218)

($233,679)

($167,707)

($98,453)

Page 7