This spreadsheet was created by Charlie Tillett, for MIT

Redistribution permitted with attribution.

Copyright 1999-2011. All rights reserved.

 P & L by Year
Source Year 1 Year 2 Year 3 Year 4
Revenue
Model 1 P&L By Qtr $ 1,275,000 100% $ 10,500,000 88% $ 33,750,000 82% $ 37,500,000 50%
Model 2 P&L By Qtr $ - 0% $ 1,400,000 12% $ 5,250,000 13% $ 27,500,000 36%
Model 3 P&L By Qtr $ - 0% $ - 0% $ 2,400,000 6% $ 10,500,000 14%
Total Revenue $ 1,275,000 100% $ 11,900,000 100% $ 41,400,000 100% $ 75,500,000 100%

COGS P&L By Qtr $ 425,000 33% $ 3,920,000 33% $ 13,385,000 32% $ 23,200,000 31%

Gross Margin $ 850,000 67% $ 7,980,000 67% $ 28,015,000 68% $ 52,300,000 69%

Expenses
Engineering P&L By Qtr $ 1,326,625 104% $ 3,475,275 29% $ 7,212,188 17% $ 12,205,975 16%
Marketing P&L By Qtr $ 710,750 56% $ 1,810,750 15% $ 3,239,350 8% $ 5,300,000 7%
Sales P&L By Qtr $ 1,214,250 95% $ 3,466,500 29% $ 7,171,500 17% $ 12,393,500 16%
G&A P&L By Qtr $ 964,575 76% $ 1,817,750 15% $ 3,117,000 8% $ 5,308,500 7%
Operating Exp. $ 4,216,200 331% $ 10,570,275 89% $ 20,740,038 50% $ 35,207,975 47%

Operating Profit $ (3,366,200) -264% $ (2,590,275) -22% $ 7,274,963 18% $ 17,092,025 23%

P & L by Year Page 2

 P & L by Month Source Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
Revenue
Model 1 Sales Plan $ - $ 150,000 $ 375,000 $ 750,000 $ 1,500,000 $ 2,250,000 $ 3,000,000 $ 3,750,000
Model 2 Sales Plan $ - $ - $ - $ - $ 200,000 $ 300,000 $ 400,000 $ 500,000
Model 3 Sales Plan $ - $ - $ - $ - $ - $ - $ - $ -
Total Revenue $ - $ 150,000 $ 375,000 $ 750,000 $ 1,700,000 $ 2,550,000 $ 3,400,000 $ 4,250,000

COGS Sales Plan $ - $ 50,000 $ 125,000 $ 250,000 $ 560,000 $ 840,000 $ 1,120,000 $ 1,400,000

Gross Margin $ - $ 100,000 $ 250,000 $ 500,000 $ 1,140,000 $ 1,710,000 $ 2,280,000 $ 2,850,000

Expenses
Engineering Expenses $ 169,375 $ 312,875 $ 378,000 $ 466,375 $ 576,038 $ 792,275 $ 965,163 $ 1,141,800
Marketing Expenses $ 111,250 $ 136,250 $ 185,125 $ 278,125 $ 330,600 $ 409,200 $ 470,738 $ 600,213
Sales Expenses $ 146,188 $ 220,188 $ 378,813 $ 469,063 $ 672,563 $ 792,188 $ 938,938 $ 1,062,813
G&A Expenses $ 173,700 $ 206,875 $ 284,325 $ 299,675 $ 388,150 $ 417,975 $ 492,300 $ 519,325
Operating Exp. $ 600,513 $ 876,188 $ 1,226,263 $ 1,513,238 $ 1,967,350 $ 2,411,638 $ 2,867,138 $ 3,324,150

Operating Profit $ (600,513) $ (776,188) $ (976,263) $ (1,013,238) $ (827,350) $ (701,638) $ (587,138) $ (474,150)

P & L by Qtr Page 3

 P & L by Month Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
Revenue
Model 1 $ 5,625,000 $ 7,500,000 $ 9,375,000 $ 11,250,000 $ 11,250,000 $ 9,375,000 $ 9,375,000 $ 7,500,000
Model 2 $ 750,000 $ 1,000,000 $ 1,500,000 $ 2,000,000 $ 4,000,000 $ 6,000,000 $ 7,500,000 $ 10,000,000
Model 3 $ 150,000 $ 375,000 $ 750,000 $ 1,125,000 $ 1,500,000 $ 2,250,000 $ 3,000,000 $ 3,750,000
Total Revenue $ 6,525,000 $ 8,875,000 $ 11,625,000 $ 14,375,000 $ 16,750,000 $ 17,625,000 $ 19,875,000 $ 21,250,000

COGS $ 2,135,000 $ 2,887,500 $ 3,750,000 $ 4,612,500 $ 5,300,000 $ 5,450,000 $ 6,075,000 $ 6,375,000

Gross Margin $ 4,390,000 $ 5,987,500 $ 7,875,000 $ 9,762,500 $ 11,450,000 $ 12,175,000 $ 13,800,000 $ 14,875,000

Expenses
Engineering $ 1,504,125 $ 1,720,438 $ 1,940,500 $ 2,047,125 $ 2,622,513 $ 2,906,000 $ 3,193,238 $ 3,484,225
Marketing $ 607,813 $ 788,538 $ 793,450 $ 1,049,550 $ 1,013,775 $ 1,285,250 $ 1,336,713 $ 1,664,263
Sales $ 1,347,063 $ 1,628,688 $ 1,945,438 $ 2,250,313 $ 2,713,063 $ 2,934,438 $ 3,245,688 $ 3,500,313
G&A $ 661,450 $ 705,050 $ 849,300 $ 901,200 $ 1,090,050 $ 1,253,225 $ 1,364,475 $ 1,600,750
Operating Exp. $ 4,120,450 $ 4,842,713 $ 5,528,688 $ 6,248,188 $ 7,439,400 $ 8,378,913 $ 9,140,113 $ 10,249,550

Operating Profit $ 269,550 $ 1,144,788 $ 2,346,313 $ 3,514,313 $ 4,010,600 $ 3,796,088 $ 4,659,888 $ 4,625,450

P & L by Qtr Page 4

 Sales Plan Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2

Unit Sales

Model 1 - 20 50 100 200 300 400 500

Model 2 - - - - 20 30 40 50

Model 3 - - - - - - - -

Total Units - 20 50 100 220 330 440 550

Revenue

Model 1 $ - $ 150,000 $ 375,000 $ 750,000 $ 1,500,000 $ 2,250,000 $ 3,000,000 $ 3,750,000

Model 2 $ - $ - $ - $ - $ 200,000 $ 300,000 $ 400,000 $ 500,000

Model 3 $ - $ - $ - $ - $ - $ - $ - $ -

Total Revenue $ - $ 150,000 $ 375,000 $ 750,000 $ 1,700,000 $ 2,550,000 $ 3,400,000 $ 4,250,000

Cost of Goods Sold

Model 1 $ - $ 50,000 $ 125,000 $ 250,000 $ 500,000 $ 750,000 $ 1,000,000 $ 1,250,000

Model 2 $ - $ - $ - $ - $ 60,000 $ 90,000 $ 120,000 $ 150,000

Model 3 $ - $ - $ - $ - $ - $ - $ - $ -

Total COGS $ - $ 50,000 $ 125,000 $ 250,000 $ 560,000 $ 840,000 $ 1,120,000 $ 1,400,000

Sales Plan Page 5

 Sales Plan Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4

Unit Sales

Model 1 750 1,000 1,250 1,500 1,500 1,250 1,250 1,000

Model 2 75 100 150 200 400 600 750 1,000

Model 3 10 25 50 75 100 150 200 250

Total Units 835 1,125 1,450 1,775 2,000 2,000 2,200 2,250

Revenue

Model 1 $ 5,625,000 $ 7,500,000 $ 9,375,000 $ 11,250,000 $ 11,250,000 $ 9,375,000 $ 9,375,000 $ 7,500,000

Model 2 $ 750,000 $ 1,000,000 $ 1,500,000 $ 2,000,000 $ 4,000,000 $ 6,000,000 $ 7,500,000 $ 10,000,000

Model 3 $ 150,000 $ 375,000 $ 750,000 $ 1,125,000 $ 1,500,000 $ 2,250,000 $ 3,000,000 $ 3,750,000

Total Revenue $ 6,525,000 $ 8,875,000 $ 11,625,000 $ 14,375,000 $ 16,750,000 $ 17,625,000 $ 19,875,000 $ 21,250,000

Cost of Goods Sold

Model 1 $ 1,875,000 $ 2,500,000 $ 3,125,000 $ 3,750,000 $ 3,750,000 $ 3,125,000 $ 3,125,000 $ 2,500,000

Model 2 $ 225,000 $ 300,000 $ 450,000 $ 600,000 $ 1,200,000 $ 1,800,000 $ 2,250,000 $ 3,000,000

Model 3 $ 35,000 $ 87,500 $ 175,000 $ 262,500 $ 350,000 $ 525,000 $ 700,000 $ 875,000

Total COGS $ 2,135,000 $ 2,887,500 $ 3,750,000 $ 4,612,500 $ 5,300,000 $ 5,450,000 $ 6,075,000 $ 6,375,000

Sales Plan Page 6

Staffing Plan Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2 Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4

Engineering
CTO Input 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Programmer Input 4 8 10 12 15 20 25 30 40 45 50 60 65 70 75 80
Tech Writer Input - 1 1 2 2 4 4 4 5 5 5 5 6 6 6 6
Other Input - - - - - - - - - - - - - - - -
Total Eng 5 10 12 15 18 25 30 35 46 51 56 66 72 77 82 87

Marketing
VP Marketing Input 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Product Manager Input 1 1 2 2 3 3 4 4 5 5 5 5 6 8 10 12
Mar-Com Input - - 1 1 2 2 2 2 3 3 4 4 5 5 6 6
Other Input 1 1 1 2 2 2 3 3 3 4 4 4 5 5 6 6
Total Mktg 3 3 5 6 8 8 10 10 12 13 14 14 17 19 23 25

Sales
VP Sales Input 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Regional Sales Input 1 2 4 5 7 8 9 10 12 14 16 18 22 24 26 28
Sales Support Input 1 2 4 5 7 8 9 10 12 14 16 18 22 24 26 28
Sales Admin Input 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8
Total Sales 4 6 11 13 18 20 23 25 30 34 39 43 52 56 61 65

General & Admin

CEO Input 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
VP Finance Input 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Accounting Input 1 1 2 2 3 3 4 4 6 6 8 8 10 12 14 16
MIS Input 1 2 3 3 4 4 4 4 6 6 8 8 10 10 12 12
Other Input 1 1 2 2 3 3 4 4 5 5 6 6 8 10 12 14
Total G&A 5 6 9 9 12 12 14 14 19 19 24 24 30 34 40 44

TOTAL EMP. 17 25 37 43 56 65 77 84 107 117 133 147 171 186 206 221

Annual Rev/Emp (000) - 24 41 70 121 157 177 202 244 303 350 391 392 379 386 385

Target Employees ### - 2 4 9 19 29 39 49 75 101 133 164 191 201 227 243

Staffing Plan Page 7

Departmental Expenses Source Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
Engineering
Salaries & Benefits Staffing Plan $ 129,375 $ 232,875 $ 276,000 $ 336,375 $ 408,038 $ 562,275 $ 685,163 $ 811,800
Tech Supplies (PP/PM) $ 2,000 input/formula $ 30,000 $ 60,000 $ 72,000 $ 90,000 $ 108,000 $ 150,000 $ 180,000 $ 210,000
Misc / Other input $ 10,000 $ 20,000 $ 30,000 $ 40,000 $ 60,000 $ 80,000 $ 100,000 $ 120,000
Total Engineering To P&L $ 169,375 $ 312,875 $ 378,000 $ 466,375 $ 576,038 $ 792,275 $ 965,163 $ 1,141,800

Marketing
Salaries & Benefits Staffing Plan $ 86,250 $ 86,250 $ 135,125 $ 158,125 $ 210,600 $ 214,200 $ 270,738 $ 275,213
Literature / PR input $ 5,000 $ 5,000 $ 10,000 $ 10,000 $ 20,000 $ 20,000 $ 50,000 $ 50,000
Trade Shows input $ - $ 25,000 $ - $ 50,000 $ - $ 50,000 $ - $ 100,000
Misc / Other input $ 20,000 $ 20,000 $ 40,000 $ 60,000 $ 100,000 $ 125,000 $ 150,000 $ 175,000
Total Marketing To P&L $ 111,250 $ 136,250 $ 185,125 $ 278,125 $ 330,600 $ 409,200 $ 470,738 $ 600,213

Sales
Salaries & Benefits Staffing Plan $ 122,188 $ 179,688 $ 309,063 $ 366,563 $ 504,563 $ 572,688 $ 657,938 $ 730,313
Travel (PP/PM) $ 3,000 input/formula $ 9,000 $ 18,000 $ 36,000 $ 45,000 $ 63,000 $ 72,000 $ 81,000 $ 90,000
Commission (% Rev) 5.00% input/formula $ - $ 7,500 $ 18,750 $ 37,500 $ 85,000 $ 127,500 $ 170,000 $ 212,500
Misc / Other input $ 15,000 $ 15,000 $ 15,000 $ 20,000 $ 20,000 $ 20,000 $ 30,000 $ 30,000
Total Sales To P&L $ 146,188 $ 220,188 $ 378,813 $ 469,063 $ 672,563 $ 792,188 $ 938,938 $ 1,062,813

General & Admin

Salaries & Benefits Staffing Plan $ 129,375 $ 143,750 $ 195,500 $ 195,500 $ 251,550 $ 255,850 $ 299,475 $ 304,425
Rent (pp/pm) $ 375 input/formula $ 19,125 $ 28,125 $ 41,625 $ 48,375 $ 63,000 $ 73,125 $ 86,625 $ 94,500
Tel & Postage (PP/PM) $ 200 input/formula $ 10,200 $ 15,000 $ 22,200 $ 25,800 $ 33,600 $ 39,000 $ 46,200 $ 50,400
Misc / Other input $ 15,000 $ 20,000 $ 25,000 $ 30,000 $ 40,000 $ 50,000 $ 60,000 $ 70,000
Total G&A To P&L $ 173,700 $ 206,875 $ 284,325 $ 299,675 $ 388,150 $ 417,975 $ 492,300 $ 519,325

Total Operating Expense $ 600,513 $ 876,188 $ 1,226,263 $ 1,513,238 $ 1,967,350 $ 2,411,638 $ 2,867,138 $ 3,324,150

Expenses Page 8
 Departmental Expenses Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
Engineering
Salaries & Benefits $ 1,078,125 $ 1,214,438 $ 1,354,500 $ 1,621,125 $ 1,790,513 $ 1,944,000 $ 2,101,238 $ 2,262,225
Tech Supplies (PP/PM) $ 276,000 $ 306,000 $ 336,000 $ 396,000 $ 432,000 $ 462,000 $ 492,000 $ 522,000
Misc / Other $ 150,000 $ 200,000 $ 250,000 $ 30,000 $ 400,000 $ 500,000 $ 600,000 $ 700,000
Total Engineering $ 1,504,125 $ 1,720,438 $ 1,940,500 $ 2,047,125 $ 2,622,513 $ 2,906,000 $ 3,193,238 $ 3,484,225

Marketing
Salaries & Benefits $ 332,813 $ 363,538 $ 393,450 $ 399,550 $ 488,775 $ 560,250 $ 686,713 $ 762,763
Literature / PR $ 75,000 $ 75,000 $ 100,000 $ 100,000 $ 125,000 $ 125,000 $ 150,000 $ 1,500
Trade Shows $ - $ 100,000 $ - $ 200,000 $ - $ 150,000 $ - $ 300,000
Misc / Other $ 200,000 $ 250,000 $ 300,000 $ 350,000 $ 400,000 $ 450,000 $ 500,000 $ 600,000
Total Marketing $ 607,813 $ 788,538 $ 793,450 $ 1,049,550 $ 1,013,775 $ 1,285,250 $ 1,336,713 $ 1,664,263

Sales
Salaries & Benefits $ 882,813 $ 1,023,938 $ 1,185,188 $ 1,334,563 $ 1,637,563 $ 1,797,188 $ 1,977,938 $ 2,145,813
Travel (PP/PM) $ 108,000 $ 126,000 $ 144,000 $ 162,000 $ 198,000 $ 216,000 $ 234,000 $ 252,000
Commission (% Rev) $ 326,250 $ 443,750 $ 581,250 $ 718,750 $ 837,500 $ 881,250 $ 993,750 $ 1,062,500
Misc / Other $ 30,000 $ 35,000 $ 35,000 $ 35,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000
Total Sales $ 1,347,063 $ 1,628,688 $ 1,945,438 $ 2,250,313 $ 2,713,063 $ 2,934,438 $ 3,245,688 $ 3,500,313

General & Admin

Salaries & Benefits $ 396,875 $ 403,225 $ 499,875 $ 507,625 $ 635,075 $ 732,375 $ 866,525 $ 969,525
Rent (pp/pm) $ 120,375 $ 131,625 $ 149,625 $ 165,375 $ 192,375 $ 209,250 $ 231,750 $ 248,625
Tel & Postage (PP/PM) $ 64,200 $ 70,200 $ 79,800 $ 88,200 $ 102,600 $ 111,600 $ 41,200 $ 132,600
Misc / Other $ 80,000 $ 100,000 $ 120,000 $ 140,000 $ 160,000 $ 200,000 $ 225,000 $ 250,000
Total G&A $ 661,450 $ 705,050 $ 849,300 $ 901,200 $ 1,090,050 $ 1,253,225 $ 1,364,475 $ 1,600,750

Total Operating Expense $ 4,120,450 $ 4,842,713 $ 5,528,688 $ 6,248,188 $ 7,439,400 $ 8,378,913 $ 9,140,113 $ 10,249,550

Expenses Page 9
 Cash Flow Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
Beginning Cash $ - $ 4,281,488 $ 3,273,300 $ 1,849,038 $ 311,800 $ 6,692,450 $ 5,134,813 $ 3,829,675

Gross Margin $ - $ - $ 100,000 $ 250,000 $ 500,000 $ 1,140,000 $ 1,710,000 $ 2,280,000

Expenses $ (600,513) $ (876,188) $ (1,226,263) $ (1,513,238) $ (1,967,350) $ (2,411,638) $ (2,867,138) $ (3,324,150)
Investment $ 5,000,000 $ - $ - $ - $ 8,000,000 $ - $ - $ -
Capital Expense $ (118,000) $ (132,000) $ (298,000) $ (274,000) $ (152,000) $ (286,000) $ (148,000) $ (78,000)
Change in Cash $ 4,281,488 $ (1,008,188) $ (1,424,263) $ (1,537,238) $ 6,380,650 $ (1,557,638) $ (1,305,138) $ (1,122,150)

Ending Balance $ 4,281,488 $ 3,273,300 $ 1,849,038 $ 311,800 $ 6,692,450 $ 5,134,813 $ 3,829,675 $ 2,707,525

Capex and Cash Flow Page 10

 Cash Flow Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
Beginning Cash $ 2,707,525 $ 1,295,075 $ 752,363 $ 1,097,175 $ 2,617,988 $ 4,795,088 $ 7,756,175 $ 10,661,063

Gross Margin $ 2,850,000 $ 4,390,000 $ 5,987,500 $ 7,875,000 $ 9,762,500 $ 11,450,000 $ 12,175,000 $ 13,800,000
Expenses $ (4,120,450) $ (4,842,713) $ (5,528,688) $ (6,248,188) $ (7,439,400) $ (8,378,913) $ (9,140,113) $ (10,249,550)
Investment $ - $ - $ - $ - $ - $ - $ - $ -
Capital Expense $ (142,000) $ (90,000) $ (114,000) $ (106,000) $ (146,000) $ (110,000) $ (130,000) $ (110,000)
Change in Cash $ (1,412,450) $ (542,713) $ 344,813 $ 1,520,813 $ 2,177,100 $ 2,961,088 $ 2,904,888 $ 3,440,450

Ending Balance $ 1,295,075 $ 752,363 $ 1,097,175 $ 2,617,988 $ 4,795,088 $ 7,756,175 $ 10,661,063 $ 14,101,513

Capex and Cash Flow Page 11