• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Business plan sample
 

Business plan sample

on

  • 419 views

Business plan sample

Business plan sample

Statistics

Views

Total Views
419
Views on SlideShare
419
Embed Views
0

Actions

Likes
0
Downloads
15
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft Word

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Business plan sample Business plan sample Document Transcript

    • Executive SummaryIntroductionIt is the mission of Vashon Solicitation Services to provide clients with top quality call center services 24hours-a-day. A service that provides our clients with the greatest chance of communicating with their endcustomers. We do B2B and B2C services including both inbound and outbound calls. We have adedicated and well trained cadre of customer support specialists who are able to consistently provideexcellent services delivered in a timely and cost-effective manner.Whatever a clients customer relations goals are: quantifying sales leads, taking orders, responding to adinquiries, market research, or general information requests, VSS has the people with the expertise toprofessionally service those needs.The CompanyVSS will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founderis Mr. Martin Gibbs, a former telemarketing head with Medfone, Inc. Mr. Gibbs has brought together ahighly respected group of telemarketing and customer relations specialists who have a total of 35 years ofcombined experience with this industry.The company has a limited number of private investors and does not plan to go public. The company hasits main offices in Gig Harbor, Washington. The facilities include office spaces, conference rooms, and aphone center. The company expects to begin offering services in June of Year 1.The ServicesVashon offers a wide range of call center service including both inbound and outbound calls. We providebilingual services in both english and spanish. The most common needs that we can fulfill are: Generate sales leads Set appointments Market research Surveys (including statistical analysis and political surveys) First level help desk Database or mailing list information Business development Point-of-sale product promotion Seminar and conference invitations
    • VSS is not a telemarketing company, we do not create the marketing campaigns for our clients.Experience has shown that many companies desire to create their own marketing campaign since theyalready have marketing personnel with extensive contact and experience in the industry.The MarketThe telemarketing industry is a growing industry with most companies having an annual growth between6.5% and 8%. This is due to businesses that are becoming increasingly aware of the need for marketinformation and the desire to reduce customer turnover rates in a hard hit economy. A significant trend inthis industry is the growing number of clients who wish to outsource telemarketing functions to clientcompanies instead of developing such infrastructure in-house. This makes for an excellent opportunity forVSS. However, long-term analysis of growth rates in this industry show a cyclical pattern and VSS doesnot expect this high growth rate to continue.VSS plans to enter into two market segments. First, we will work in the medical services industry sincethey have a high need to maintain contact with their patients at all times. We will also be working as a firstlevel help desk for a number of small high-tech companies, and be taking on short-term projects such assurveys from small clients.Financial ConsiderationsStart-up assets required are shown in the tables accompanying the Start-up Summary topic. This includesexpenses and the cash needed to support operations until revenues reach an acceptable level. Most ofthe companys liabilities will come from outside private investors and management investment, however,we have obtained current borrowing from Bank of America Commercial Investments, the principal to bepaid off in two years. A long-term loan through Charter Bank of Tillamook will be paid off in ten years. Wealso have a line of credit from Viking Bank that we can draw upon if need be.The company expects to reach profitability in year two and does not anticipate any serious cash flowproblems. We conservatively believe that during the first three years that about three ongoing contractsper month will guarantee a break-even point.
    • Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »1.1 Keys to SuccessVashons keys to long-term survivability and profitability are: Create long-term contracts that demand constant monitoring or on-call services. Keeping close contact with clients and establishing a well-functioning long-term relationship with them to generate repeat business and obtain a top notch reputation. Establish a comprehensive service experience for our clients that include consultation, progress reports and post-program feedback.1.2 MissionIt is the mission of VSS to provide our clients with top quality call center services 24 hours-a-day thatprovide the greatest chance of communicating with end customers. We do B2B and B2C servicesincluding both inbound and outbound calls. We have a dedicated and well trained cadre of customersupport specialists who are able to consistently provide excellent services delivered in a timely and cost-effective manner.Whatever a clients customer relations goals are: quantifying sales leads, taking orders, responding to adinquiries, market research, or general information requests, VSS has the people with the expertise toprofessionally service your needs.
    • 1.3 ObjectivesThe three year goals for Vashon Solicitation Services LLC (VSS) are: Achieve break-even by year two. Establish long-term contracts with at least four clients. Establish minimum 95% customer satisfaction rate to form long-term relationships with our clients and create word of mouth marketing. Company Summary VSS will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Martin Gibbs, a former telemarketing head with Medfone, Inc. Mr. Gibbs has brought together a highly respected group of telemarketing and customer relations specialists who have a total of 35 years of combined experience with this industry. The company has a limited number of private investors and does not plan to go public. The company has its main offices in Gig Harbor, Washington. The facilities include office spaces, conference rooms, and a phone center. The company expects to begin offering its services in June of Year 1. The companys main clients will be companies that require high amounts of communication between themselves and their clients. This includes medical services, and companies that wish to outsource first-level help desk support. By focusing on institutions such as these that have special needs, we believe we will be able to better serve our clients and produce a superior service that is more effective that other call center firms. 2.1 Start-up Summary Start-up assets required are shown in the tables below. This includes expenses and the cash needed to support operations until revenues reach an acceptable level. Most of the companys liabilities will come from outside private investors and management investment, however, we have obtained current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. A long-term loan through Charter Bank of Tillamook will be paid off in ten years.We also have a line of credit from Viking Bank that we can draw upon if need be.
    • Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan »Start-up RequirementsStart-up Expenses
    • Legal $2,000Insurance $1,000utilities $200Rent $3,000Accounting and bookkeeping fees $2,000Expensed equipment $8,000Advertising $3,500Other $8,000Total Start-up Expenses $27,700Start-up AssetsCash Required $117,800Other Current Assets $3,500Long-term Assets $25,000Total Assets $146,300Total Requirements $174,000
    • Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. Create your own business plan »Start-up FundingStart-up Expenses to Fund $27,700Start-up Assets to Fund $146,300Total Funding Required $174,000AssetsNon-cash Assets from Start-up $28,500Cash Requirements from Start-up $117,800Additional Cash Raised $0Cash Balance on Starting Date $117,800Total Assets $146,300Liabilities and CapitalLiabilitiesCurrent Borrowing $16,000
    • Long-term Liabilities $55,000Accounts Payable (Outstanding Bills) $3,000Other Current Liabilities (interest-free) $0Total Liabilities $74,000CapitalPlanned InvestmentMr. Martin Gibbs $25,000Ms. Mary Stuart $20,000Mr. Henry Hannover $20,000Mr. Nicolas Caput $8,000Others $27,000Additional Investment Requirement $0Total Planned Investment $100,000Loss at Start-up (Start-up Expenses) ($27,700)Total Capital $72,300
    • Total Capital and Liabilities $146,300Total Funding $174,000 2.2 Company Ownership The company will have a number of outside private investors who will own 27% of the companys shares. The rest will be owned by the senior management including Mr. Martin Gibbs, (25%), Ms. Mary Stuart (20%), Mr. Henry Hannover, (20%), and Mr. Nicholas Caput (8%). All other financing will come from loans.ServicesVashon offers a wide range of call center service including both inbound and outbound calls. We providebilingual services in both english and spanish. The most common needs for call centers are: Generate sales leads Set appointments Market research Surveys (including statistical analysis and political surveys) First level help desk Database or mailing list information Business development Point-of-sale product promotion Seminar and conference invitationsVSS is not a telemarketing company we do not create the marketing campaigns for our clients.Experience has shown that many companies desire to create their own marketing campaign since theyalready have marketing personnel with extensive contact and experience in the industry. However, thecosts of carrying out such a telemarketing campaign can be prohibitive and often the firm does not wish todevelop the infrastructure to do so. This requires developing different skills and core competencies thatdivert management and resources from their primary duties. This is where VSS comes in. We eitherconnect a prospective client with a telemarketing company (we have arrangements and contacts withthree such consulting firms) or once such a campaign is designed we implement it for our clients. Wework closely with our clients in the creation of the campaigns goals, scope, length, and costs so has tocreate as close a fit between the client needs and our capabilitiesMarket Analysis Summary
    • The telemarketing industry is a growing industry with most companies having an annual growth between6.5% and 8%. This is due to businesses that are becoming increasingly aware of the need for marketinformation and the desire to reduce customer turnover rates in a hard hit economy. A significant trend inthis industry is the growing number of clients who wish to outsource telemarketing functions to clientcompanies instead of developing such infrastructure in-house. This makes for an excellent opportunity forVSS. However, long-term analysis of growth rates in this industry show a cyclical pattern and VSS doesnot expect this high growth rate to continue.The telemarketing industry is quite fragmented with companies that vary greatly in size, scope, servicesoffered, and market share. Many companies are general advertising agencies that offer telemarketingservices along with a wide range of other consulting services. In addition, many companies, still notrealizing the potential advantages of outsourcing, choose to develop their own telemarketing services.VSS plans to enter into two market segments. First, we will work in the medical services industry sincethey have a high need to maintain contact with their patients at all times. We also will be working as a firstlevel help desk for a number of small high-tech companies. Mr. Gibbs and Ms. Stuart have already signedcontracts with Evergreen Medical and Sno-net, Inc. to serve in these capacities. We will also be taking onshort-term projects, such as surveys, from small clients.4.1 Market SegmentationVirtually every company, both large and small require some form of telemarketing at some point. Often itis a survey to determine customer satisfaction or awareness. Sometimes it is effectively communicatingan upcoming event such as a conference.Other companies wish to know if telemarketing is a feasible method of sales generation. One of the newuses for call centers is in first level help desk services. About 75-80% of all technical problems faced byend customers can be solved by non-technical customer service representatives who are familiar with acomputer or technical system and who have a scripted set of procedures to solve most common occuringproblems. This is where an outsourced call center can save a client a large amount of money and allow areduction in personnel needed on call 24 hours-a-day.VSS plans to enter into two market segments. First, we will work in the medical services industry sincethey have a high need to maintain contact with their patients at all times. We also will be working as a firstlevel help desk for a number of small high-tech companies.Mr. Gibbs and Ms. Stuart have already signed contracts with Evergreen Medical and Sno-net, Inc. toserve in these capacities. Our customer service representatives are already in the process of receivinghands-on training from these two companies to meet their needs. We will also be taking on short-termprojects such as surveys from small clients.Once we have established a good working relationship with these initial clients, we will leverage ourreputation and profitability into new contacts and contracts with other local companies. Our ultimate goalis to service the entire west coast region and become the company with a dominant market share.The market analysis table and graph which follows shows the number of businesses within the state ofWashington. This will be our initial geographical focus for the first four to five years of our companys
    • existance. Later, as we expand to a west coast scope, our future business plans will include all of ourpotential clients in this area.Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5Potential Customers Growth CAGRHigh-tech companies 2% 400 408 416 424 432 1.94%Medical companies 3% 350 361 372 383 394 3.00%
    • Other 3% 2,200 2,266 2,334 2,404 2,476 3.00%Total 2.86% 2,950 3,035 3,122 3,211 3,302 2.86%Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own businessplan.Create your own business plan »4.2 Service Business AnalysisThe telemarketing industry is a growing industry with most companies having an annual growth between6.5% and 8%. This is due to businesses that are becoming increasingly aware of the need for marketinformation and the desire to reduce customer turnover rates in a hard hit economy. However, long-termanalysis of growth rates in this industry show a cyclical pattern and VSS does not expect this high growthrate to continue.The telemarketing industry is quite fragmented with companies that vary greatly in size, scope, servicesoffered, and market share. Many companies are general advertising agencies that offer telemarketingservices along with a wide range of other consulting services. In addition, many companies, not realizingthe potential advantages of outsourcing, choose to develop their own telemarketing services.VSS believes that the greatest threat at the moment is in new entrants to the market who perceive anopportunity in a "high" growth industry. The most likely entrants will be pre-existing advertising agencieswishing to horizontally integrate and enter new sub-markets.The one major disadvantage to new entrants is that all firms engaged in contracting to telemarketingagencies face significant switching costs when bringing on a new partner. Furthermore, VSS understandsthat in this industry there is a significant learning curve that creates declining "unit" costs as a firm gainsmore cumulative experience in the field itself and with long-term clients specifically. Finally there aresignificant start-up costs associated with creating a call center.Rivalry among different call center agencies is quite intense. The telemarketing industry as a whole ismature with long-term moderate growth. Most of the largest agencies are mutually dependent when itcomes to jockeying for position and market share. The fact that there are so many diverse and seemingly"generic" or general telemarketing agencies makes this a cutthroat industry.The threat of clients backwardly integrating so as to have all their advertising done in-house is one of themajor factors that buyers use to indirectly control price in this industry, and increase competition amongfirms. This must always be foremost in the minds of Vashons management when offering services andsetting prices.
    • 4.2.1 Competition and Buying PatternsCompetitionCompetition includes all potential call centers and telemarketing agencies across the country. In additionwe have indirect competition from organizations that handle all their telemarketing in-house. Practicallyspeaking, this means we have the greatest threat from the largest telemarketing agencies such as Crouch&Weasley, Berman Telemarketing, and other big, nationwide call center companies that hold significantmarket share. The call center industry is highly fragmented, with a large number of small companies thatmainly cater to small firms and a few large companies that seek the largest contracts from companiessuch as Sprint, GM, etc. This makes competition within the industry very intense. Through our focusedstrategy of serving niche markets such as help desk services, we intend to avoid such a debilitatingenvironment and avoid its drawbacks such as price wars, and etc.Buying patterns and needsCompanies usually enter into contracts with call center firms based on their reputation of professionalismand effective campaigns in the past. This reputation is difficult to obtain by new firms unless its personnelbring it with them from previous companies such as ours. Price and scope are also important reasons foraccepting contracts, especially if the company is small.Strategy and Implementation SummaryVashon Solicitation Services business strategy is to enter into a focused approach to its services ratherthan being everything to its clients. Our company does not intend to be a telemarketing consultation firm,nor will it ever become so. We are a call center firm that simply implements telemarketing campaigns orhelp desk functions for its clients. These services are where we can offer a higher standard of quality toour clients. This will allow us to charge a higher profit margin for these differentiated and more focusedservices.5.1 Marketing StrategyVashon has already concluded two contracts with local companies requiring 24 hour call center services.These will provide us with initial revenue and the chance to build our reputation. Our company intends touse testimonials from such clients to build further contracts. We have begun to establish our presenceusing various marketing methods such as flyers, cold calls, B2B contacts, and we will be attendingconventions and other events as well.5.2 Sales StrategyVashons management will be focusing on leveraging its employees established reputations and contactsin the telemarketing industry to generate contracts. Both Mr. Gibbs and Mr. Hannover have been in theindustry for many years and experience shows that many of their existing clients will still wish to work withthem despite having to establish a new contract with VSS. We also understand that we may need to lowercosts in our first couple of years in order to attract new customers and close deals.In addition to our first contracts with Evergreen Medical and Sno-net, Inc. Mr. Hannover has been activelyseeking to acquire a large contract with National Conventions & Events over the past seven months. This
    • company is the largest event organizing firm on the West coast and has been seeking a call center firmfor a customer survey project to be launched in the near future. VSS believes that its chances foracquiring this contract are excellent.5.2.1 Sales ForecastSales are based on the various contract projects we anticipate acquiring in the various market segments.Revenues are based on average costs per project/contract based on estimated time and complexity ofcontract plus and undisclosed profit margin. The company does not have any significant direct costs ofsales.We anticipate that our most attractive target markets, medical services and help desk clients will provideus with significant early revenue. As time goes on, and we acquire more customers, the percentage ofshort-term and other projects will increase.Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »
    • Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Sales Forecast Year 1 Year 2 Year 3SalesMedical call center services $132,000 $180,000 $270,000Help desk services $69,000 $120,000 $150,000Short-term projects $43,500 $65,000 $96,000Other projects $33,500 $58,000 $69,000
    • Total Sales $278,000 $423,000 $585,000Direct Cost of Sales Year 1 Year 2 Year 3Row 1 $0 $0 $0Other $0 $0 $0Subtotal Direct Cost of Sales $0 $0 $0Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own businessplan.Create your own business plan »Management SummaryThe company will have four officers including our president, Mr. Martin Gibbs. Our head of operations willbe Mr. Nicholas Caput, plus 12 customer service representatives. Finances and general admin will behandled by Ms. Stuart.The company plans to hire additional service representatives, and administrative personnel as we beginto get large numbers of contracts.6.1 PersonnelVashons management brings to the company strong capabilities in contract negotiation, projectmanagement, telemarketing, and a unique combination of skills drawn from other businesses.Key PersonnelMr. Martin Gibbs is a graduate of the University of Missouri where he obtained his business degreedegree in 1971. Since then, Mr. Gibbs has had extensive experience in marketing, telemarketing, andproject management. This includes experience in budgeting, project oversight, etc. In 1996 he obtained agraduate degree in marketing from University of Washington. Mr. Gibbs spent the last four years as thetelemarketing department head with Medfone, Inc.
    • Mr. Nicholas Caput graduated from Arizona State University with a bachelors degree in marketing in1975. From 1978-1988 Mr. Caput worked for Nelson Marketing Consultants. In 1989 he went to work forAnderson Consulting in their marketing division, where he worked as a project manager.Personnel Plan Year 1 Year 2 Year 3Mr. Martin Gibbs - President $36,000 $36,000 $60,000Ms. Mary Stuart - Office Manager $36,000 $36,000 $60,000Mr. Nicholas Caput - Operations $36,000 $36,000 $36,000Customer service representatives $101,050 $203,000 $203,000Total People 19 27 27Total Payroll $209,050 $311,000 $359,000Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own businessplan.Create your own business plan »Financial PlanOur financial plan anticipates two years of negative profits as we gain sales volume. We have budgetedenough investment to cover these losses and have an additional credit line available if sales do not matchpredictions.
    • 7.1 Important AssumptionsWe are assuming approximately 75% sales on credit and average interest rates of 10%. These areconsidered to be conservative in case our predictions are erroneous.General Assumptions Year 1 Year 2 Year 3Plan Month 1 2 3Current Interest Rate 10.00% 10.00% 10.00%Long-term Interest Rate 10.00% 10.00% 10.00%Tax Rate 30.00% 30.00% 30.00%Other 0 0 0Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own businessplan.Create your own business plan »7.2 Break-even AnalysisOur break-even analysis is based on the assumptions that our gross margin is approximately 100%. Inother words, we will have insignificant direct cost of sales. Since each contract will be of different scope,length, and complexity, it is difficult to assign and average per unit revenue figure. However, it isconservatively believed that during the first three years, average profitability per month per segment willbe moderate. This is because we will be dealing with smaller companies at first that have smallercontracts. We expect that about three ongoing contracts per month will guarantee a break-even point.
    • Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Break-even AnalysisMonthly Revenue Break-even $27,234Assumptions:Average Percent Variable Cost 0%Estimated Monthly Fixed Cost $27,2347.3 Projected Profit and LossThe following table itemizes our revenues and associated costs. We expect to be paying higher costs inmarketing and advertising than other companies as we attempt to build sales volume. As shown in thetable in the Appendix, we expect monthly profits to begin in December 2003.
    • Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »
    • Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.
    • Create your own business plan »Pro Forma Profit and Loss Year 1 Year 2 Year 3Sales $278,000 $423,000 $585,000Direct Cost of Sales $0 $0 $0Other Costs of Sales $4,300 $6,000 $6,000Total Cost of Sales $4,300 $6,000 $6,000Gross Margin $273,700 $417,000 $579,000Gross Margin % 98.45% 98.58% 98.97%ExpensesPayroll $209,050 $311,000 $359,000Sales and Marketing and Other Expenses $18,000 $10,000 $10,000Depreciation $0 $0 $2,500Rent $18,000 $18,000 $18,000Utilities $7,200 $8,000 $9,000
    • Insurance $13,200 $14,000 $15,000Payroll Taxes $31,358 $46,650 $53,850Travel $12,000 $8,000 $4,000Other $18,000 $15,000 $15,000Total Operating Expenses $326,808 $430,650 $486,350Profit Before Interest and Taxes ($53,108) ($13,650) $92,650EBITDA ($53,108) ($13,650) $95,150Interest Expense $8,183 $9,400 $9,100Taxes Incurred $0 $0 $25,065Net Profit ($61,291) ($23,050) $58,485Net Profit/Sales -22.05% -5.45% 10.00%7.4 Projected Cash FlowThe following is our cash flow chart and diagram. We do not expect to have any short-term cash flowproblems even though we will be operating at a loss for the first nine months. Our short-term loan will berepaid in two equal payments in 2004-2005. Our long-term loan will be paid off in ten years.
    • Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Pro Forma Cash Flow Year 1 Year 2 Year 3Cash ReceivedCash from OperationsCash Sales $69,500 $105,750 $146,250Cash from Receivables $159,050 $291,458 $409,934Subtotal Cash from Operations $228,550 $397,208 $556,184
    • Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $20,000 $6,000 $0New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $3,000 $5,000 $0Subtotal Cash Received $251,550 $408,208 $556,184Expenditures Year 1 Year 2 Year 3Expenditures from OperationsCash Spending $209,050 $311,000 $359,000Bill Payments $121,806 $135,385 $162,552Subtotal Spent on Operations $330,856 $446,385 $521,552Additional Cash Spent
    • Sales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $0 $0 $8,000Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $0 $0 $4,000Purchase Other Current Assets $0 $0 $0Purchase Long-term Assets $0 $0 $0Dividends $0 $0 $0Subtotal Cash Spent $330,856 $446,385 $533,552Net Cash Flow ($79,306) ($38,177) $22,632Cash Balance $38,494 $317 $22,9497.5 Projected Balance SheetThe following table shows the projected balance sheet for VSS.Pro Forma Balance Sheet Year 1 Year 2 Year 3
    • AssetsCurrent AssetsCash $38,494 $317 $22,949Accounts Receivable $49,450 $75,242 $104,058Other Current Assets $3,500 $3,500 $3,500Total Current Assets $91,444 $79,059 $130,507Long-term AssetsLong-term Assets $25,000 $25,000 $25,000Accumulated Depreciation $0 $0 $2,500Total Long-term Assets $25,000 $25,000 $22,500Total Assets $116,444 $104,059 $153,007Liabilities and Capital Year 1 Year 2 Year 3Current LiabilitiesAccounts Payable $11,435 $11,100 $13,563Current Borrowing $36,000 $42,000 $34,000
    • Other Current Liabilities $0 $0 $0Subtotal Current Liabilities $47,435 $53,100 $47,563Long-term Liabilities $55,000 $55,000 $51,000Total Liabilities $102,435 $108,100 $98,563Paid-in Capital $103,000 $108,000 $108,000Retained Earnings ($27,700) ($88,991) ($112,041)Earnings ($61,291) ($23,050) $58,485Total Capital $14,009 ($4,041) $54,444Total Liabilities and Capital $116,444 $104,059 $153,007Net Worth $14,009 ($4,041) $54,444Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own businessplan.Create your own business plan »7.6 Business RatiosWe have included industry standard ratios from the telemarketing solicitation services industry to comparewith ours. These ratios are as closely matched to our industry as management could find, however thereare some significant differences, especially in sales growth, financing ratios, long-term asset investmentsand net worth. However, our projections indicate a healthy company that will be able to obtain and retainlong-term profitability.
    • Ratio Analysis Year 1 Year 2 Year 3 Industry ProfileSales Growth 0.00% 52.16% 38.30% 8.79%Percent of Total AssetsAccounts Receivable 42.47% 72.31% 68.01% 28.12%Other Current Assets 3.01% 3.36% 2.29% 44.18%Total Current Assets 78.53% 75.98% 85.29% 76.27%Long-term Assets 21.47% 24.02% 14.71% 23.73%Total Assets 100.00% 100.00% 100.00% 100.00%Current Liabilities 40.74% 51.03% 31.09% 38.61%Long-term Liabilities 47.23% 52.85% 33.33% 13.60%Total Liabilities 87.97% 103.88% 64.42% 52.21%Net Worth 12.03% -3.88% 35.58% 47.79%Percent of Sales
    • Sales 100.00% 100.00% 100.00% 100.00%Gross Margin 98.45% 98.58% 98.97% 100.00%Selling, General & Administrative Expenses 120.50% 104.03% 88.98% 82.68%Advertising Expenses 0.00% 0.00% 0.00% 1.66%Profit Before Interest and Taxes -19.10% -3.23% 15.84% 1.37%Main RatiosCurrent 1.93 1.49 2.74 1.59Quick 1.93 1.49 2.74 1.22Total Debt to Total Assets 87.97% 103.88% 64.42% 3.09%Pre-tax Return on Net Worth -437.51% 570.43% 153.46% 60.22%Pre-tax Return on Assets -52.64% -22.15% 54.61% 7.76%Additional Ratios Year 1 Year 2 Year 3Net Profit Margin -22.05% -5.45% 10.00% n.aReturn on Equity -437.51% 0.00% 107.42% n.aActivity Ratios
    • Accounts Receivable Turnover 4.22 4.22 4.22 n.aCollection Days 56 72 75 n.aAccounts Payable Turnover 11.39 12.17 12.17 n.aPayment Days 28 30 27 n.aTotal Asset Turnover 2.39 4.06 3.82 n.aDebt RatiosDebt to Net Worth 7.31 0.00 1.81 n.aCurrent Liab. toLiab. 0.46 0.49 0.48 n.aLiquidity RatiosNet Working Capital $44,009 $25,959 $82,944 n.aInterest Coverage -6.49 -1.45 10.18 n.aAdditional RatiosAssets to Sales 0.42 0.25 0.26 n.aCurrent Debt/Total Assets 41% 51% 31% n.aAcid Test 0.89 0.07 0.56 n.a
    • Sales/Net Worth 19.84 0.00 10.74 n.aDividend Payout 0.00 0.00 0.00 n.aAppendixSales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12SalesMedical call center services 0% $8,000 $8,000 $8,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000Help desk services 0% $0 $0 $0 $5,000 $5,000 $5,000 $8,000 $8,000 $8,000 $8,000 $11,000 $11,000Short-term projects 0% $2,000 $2,500 $0 $0 $2,000 $3,000 $3,000 $6,000 $4,000 $7,000 $7,000 $7,000Other projects 0% $1,000 $1,500 $0 $0 $0 $0 $7,000 $5,000 $7,000 $5,000 $2,000 $5,000Total Sales $11,000 $12,000 $8,000 $17,000 $19,000 $20,000 $30,000 $31,000 $31,000 $32,000 $32,000 $35,000Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Row 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Direct Cost of
    • SalesNeed real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own businessplan.Create your own business plan »Personnel Plan Month Month Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 10 11 12Mr. Martin Gibbs - President 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000Ms. Mary Stuart - Office Manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000Mr. Nicholas Caput - Operations 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000Customer service 0% $5,760 $5,760 $5,760 $5,760 $5,760 $7,680 $9,600 $10,000 $10,000 $10,000 $11,500 $13,470representativesTotal People 0% 9 9 9 9 9 11 13 15 15 15 17 19Total Payroll $14,760 $14,760 $14,760 $14,760 $14,760 $16,680 $18,600 $19,000 $19,000 $19,000 $20,500 $22,470General Assumptions Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 12Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
    • Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%Long-term Interest 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%RateTax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%Other 0 0 0 0 0 0 0 0 0 0 0 0Pro Forma Profit and Loss Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 12Sales $11,000 $12,000 $8,000 $17,000 $19,000 $20,000 $30,000 $31,000 $31,000 $32,000 $32,000 $35,000Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other Costs of Sales $200 $100 $100 $200 $300 $300 $500 $600 $500 $500 $500 $500Total Cost of Sales $200 $100 $100 $200 $300 $300 $500 $600 $500 $500 $500 $500Gross Margin $10,800 $11,900 $7,900 $16,800 $18,700 $19,700 $29,500 $30,400 $30,500 $31,500 $31,500 $34,500Gross Margin % 98.18% 99.17% 98.75% 98.82% 98.42% 98.50% 98.33% 98.06% 98.39% 98.44% 98.44% 98.57%ExpensesPayroll $14,760 $14,760 $14,760 $14,760 $14,760 $16,680 $18,600 $19,000 $19,000 $19,000 $20,500 $22,470Sales and Marketing $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500and Other Expenses
    • Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Rent $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500Utilities $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600Insurance $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100Payroll Taxes 15% $2,214 $2,214 $2,214 $2,214 $2,214 $2,502 $2,790 $2,850 $2,850 $2,850 $3,075 $3,371Travel 15% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000Other $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500Total Operating $24,174 $24,174 $24,174 $24,174 $24,174 $26,382 $28,590 $29,050 $29,050 $29,050 $30,775 $33,041ExpensesProfit Before Interest ($13,374) ($12,274) ($16,274) ($7,374) ($5,474) ($6,682) $910 $1,350 $1,450 $2,450 $725 $1,460and TaxesEBITDA ($13,374) ($12,274) ($16,274) ($7,374) ($5,474) ($6,682) $910 $1,350 $1,450 $2,450 $725 $1,460Interest Expense $592 $592 $592 $592 $633 $675 $717 $758 $758 $758 $758 $758Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Net Profit ($13,966) ($12,866) ($16,866) ($7,966) ($6,107) ($7,357) $193 $592 $692 $1,692 ($33) $701Net Profit/Sales -126.96% -107.21% -210.82% -46.86% -32.14% -36.79% 0.64% 1.91% 2.23% 5.29% -0.10% 2.00%Pro Forma Cash Flow
    • Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Cash ReceivedCash from OperationsCash Sales $2,750 $3,000 $2,000 $4,250 $4,750 $5,000 $7,500 $7,750 $7,750 $8,000 $8,000 $8,750Cash from Receivables $0 $275 $8,275 $8,900 $6,225 $12,800 $14,275 $15,250 $22,525 $23,250 $23,275 $24,000Subtotal Cash from $2,750 $3,275 $10,275 $13,150 $10,975 $17,800 $21,775 $23,000 $30,275 $31,250 $31,275 $32,750OperationsAdditional Cash ReceivedSales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0ReceivedNew Current Borrowing $0 $0 $0 $0 $5,000 $5,000 $5,000 $5,000 $0 $0 $0 $0New Other Liabilities (interest- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0free)New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Investment Received $0 $0 $0 $0 $0 $0 $1,500 $1,500 $0 $0 $0 $0Subtotal Cash Received $2,750 $3,275 $10,275 $13,150 $15,975 $22,800 $28,275 $29,500 $30,275 $31,250 $31,275 $32,750
    • Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Expenditures from OperationsCash Spending $14,760 $14,760 $14,760 $14,760 $14,760 $16,680 $18,600 $19,000 $19,000 $19,000 $20,500 $22,470Bill Payments $3,340 $10,202 $10,106 $10,109 $10,210 $10,358 $10,695 $11,213 $11,405 $11,308 $11,316 $11,543Subtotal Spent on Operations $18,100 $24,962 $24,866 $24,869 $24,970 $27,038 $29,295 $30,213 $30,405 $30,308 $31,816 $34,013Additional Cash SpentSales Tax, VAT, HST/GST Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0OutPrincipal Repayment of Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0BorrowingOther Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0RepaymentLong-term Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0RepaymentPurchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Cash Spent $18,100 $24,962 $24,866 $24,869 $24,970 $27,038 $29,295 $30,213 $30,405 $30,308 $31,816 $34,013Net Cash Flow ($15,350) ($21,687) ($14,591) ($11,719) ($8,995) ($4,238) ($1,020) ($713) ($130) $942 ($541) ($1,263)
    • Cash Balance $102,450 $80,762 $66,172 $54,453 $45,457 $41,219 $40,199 $39,486 $39,356 $40,298 $39,757 $38,494Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own businessplan.Create your own business plan »Pro Forma Balance Sheet Month Month Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 10 11 12 StartingAssets BalancesCurrent AssetsCash $117,800 $102,450 $80,762 $66,172 $54,453 $45,457 $41,219 $40,199 $39,486 $39,356 $40,298 $39,757 $38,494Accounts Receivable $0 $8,250 $16,975 $14,700 $18,550 $26,575 $28,775 $37,000 $45,000 $45,725 $46,475 $47,200 $49,450Other Current Assets $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500Total Current Assets $121,300 $114,200 $101,237 $84,372 $76,503 $75,532 $73,494 $80,699 $87,986 $88,581 $90,273 $90,457 $91,444Long-term AssetsLong-term Assets $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
    • Total Long-term Assets $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000Total Assets $146,300 $139,200 $126,237 $109,372 $101,503 $100,532 $98,494 $105,699 $112,986 $113,581 $115,273 $115,457 $116,444 Month Month MonthLiabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 10 11 12Current LiabilitiesAccounts Payable $3,000 $9,865 $9,769 $9,769 $9,865 $10,002 $10,321 $10,833 $11,028 $10,931 $10,931 $11,149 $11,435Current Borrowing $16,000 $16,000 $16,000 $16,000 $16,000 $21,000 $26,000 $31,000 $36,000 $36,000 $36,000 $36,000 $36,000Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Current $19,000 $25,865 $25,769 $25,769 $25,865 $31,002 $36,321 $41,833 $47,028 $46,931 $46,931 $47,149 $47,435LiabilitiesLong-term Liabilities $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000 $55,000Total Liabilities $74,000 $80,865 $80,769 $80,769 $80,865 $86,002 $91,321 $96,833 $102,028 $101,931 $101,931 $102,149 $102,435Paid-in Capital $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $101,500 $103,000 $103,000 $103,000 $103,000 $103,000Retained Earnings ($27,700) ($27,700) ($27,700) ($27,700) ($27,700) ($27,700) ($27,700) ($27,700) ($27,700) ($27,700) ($27,700) ($27,700) ($27,700)Earnings $0 ($13,966) ($26,831) ($43,697) ($51,663) ($57,770) ($65,127) ($64,934) ($64,342) ($63,650) ($61,959) ($61,992) ($61,291)Total Capital $72,300 $58,334 $45,469 $28,603 $20,637 $14,530 $7,173 $8,866 $10,958 $11,650 $13,341 $13,308 $14,009Total Liabilities and $146,300 $139,200 $126,237 $109,372 $101,503 $100,532 $98,494 $105,699 $112,986 $113,581 $115,273 $115,457 $116,444Capital
    • Net Worth $72,300 $58,334 $45,469 $28,603 $20,637 $14,530 $7,173 $8,866 $10,958 $11,650 $13,341 $13,308 $14,009