2
Table of Contents
1.0 Executive Summary....................................................................................
3
1.0 Executive Summary
Despite the challenging economy, demographic trends show an ever increasing demand for
quality tut...
4
Our highly qualified team assesses each student’s capabilities and targets specific problem areas
in order to augment th...
5
1.1 Objectives
 Achieve funding
 Build a fully functional, interactive website
 Establish to EDU Niche as the preferr...
6
2.2 Pre-Operating Source and Use of Funds
The Pre-Operating Source & Use of Funds section details the Expenses, Assets, ...
7
3.0 Products and Services
EDU Niche, LLC offers online tutoring services to students of all ages from grades K-12 and
co...
8
Pricing for the Company’s services are as follows:
Plans Free Trial 1 Hour____ 2 Hours__________5 Hours
Cost $0.00 $14.9...
9
4.0 Market Summary
Online education is a burgeoning market that is just beginning to truly transform the education
syste...
10
The National Education Association (NEA) reports that the percentage of high school students
taking online courses “nea...
11
segment, with a 16.8% annual growth rate, according to the International Association for K-12
Online Learning (iNACOL)....
12
Employees
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Unknown
1to4
5to9
10to19
20to49
50to99
100to249
250to499
500t...
13
Exam Preparation and Tutoring
This U.S. industry comprises establishments primarily engaged in offering preparation for...
14
5.0 Marketing Strategy/Implementation
EDU Niche will utilize a comprehensive promotional campaign, initially focusing o...
15
of EDU Niche’s brand recognition, as well as trends the Company needs to address. The Company
will consider maintaining...
16
6.0 Management Summary
The Company will be owned and managed by Eva Kumar, who together possess the requisite
managemen...
17
7.0 Financial Summary
7.1 Revenue Forecast
The Revenue Forecast section details the revenue that the Company will recei...
18
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Year 1 Year 2 Year 3
Yearly Revenue Projections
Advertising
Tui...
19
7.2 Personnel Forecast
The Personnel section breaks down the payroll expense line on the Income Statement. It
provides ...
20
7.3 Income Statement
The Income Statement is also known as a Profit & Loss Statement. This table breaks down
Revenue, C...
21
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Year 1 Year 2 Year 3
Yearly Income Statement
Gross Revenue
Gros...
22
7.4 Statement of Cash Flow
The Statement of Cash Flow illustrates the Company’s cash received and cash spent for the th...
23
($20,000)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Month1
Month2
Month3
Month4
M...
24
7.5 Balance Sheet
The Balance Sheet shows the Company’s Assets, Liabilities, and Shareholders’ Equity for a
given time ...
25
7.6 Break-Even Analysis
The Operating Break-Even accounts for the Company’s revenue and expenses on the Income
Statemen...
26
7.7 Best & Worse Case
The Best and Worse Case analysis illustrates what the Company’s financial statements might
look l...
27
Appendix A – Year 1 Financials
Year 1 Monthly Forecast illustrates the Company’s first 12 months after the Pre-Operatin...
28
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Headcount
Managers 1...
29
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Gross Revenue $50,62...
30
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Operating Activities...
31
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets
Current Asset...
32
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Long-Term Debt Inter...
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EDU Niche - Presentation Update

  1. 1. 2 Table of Contents 1.0 Executive Summary...........................................................................................3 1.1 Objectives............................................................................................................................. 5 1.2 Mission Statement ............................................................................................................... 5 1.3 Keys to Success .................................................................................................................... 5 2.0 Company Summary...........................................................................................5 2.1 Company Ownership .......................................................................................................... 5 2.2 Pre-Operating Source and Use of Funds .......................................................................... 6 3.0 Products and Services........................................................................................7 4.0 Market Summary...............................................................................................9 4.1 Industry Summary............................................................................................................ 11 5.0 Marketing Strategy/Implementation .............................................................14 5.1 SWOT Analysis ................................................................................................................. 15 6.0 Management Summary ...................................................................................16 7.0 Financial Summary..........................................................................................17 7.1 Revenue Forecast............................................................................................................... 17 7.2 Personnel Forecast ............................................................................................................ 19 7.3 Income Statement.............................................................................................................. 20 7.4 Statement of Cash Flow.................................................................................................... 22 7.5 Balance Sheet..................................................................................................................... 24 7.6 Break-Even Analysis......................................................................................................... 25 7.7 Best & Worse Case............................................................................................................ 26 Appendix A – Year 1 Financials...........................................................................27
  2. 2. 3 1.0 Executive Summary Despite the challenging economy, demographic trends show an ever increasing demand for quality tutoring services. With so many of today’s parents both working, online tutoring provides a convenient and reliable way to accommodate the high numbers of students requiring assistance with their studies and on-going tutoring, proving the industry to be recession resistant. EDU Niche, LLC (“the Company”) will be a state-of- the-art web-based resource for one-on-one tutoring to assist students of all level of learning to excel in school. Simple and easy to access, EDU Niche was founded to take advantage of the convenience and ready accessibility of the Internet and its owners’ knowledge of the tutoring industry to present customers with a invaluable resource in the comfort of their own homes. EDU Niche will capitalize on the fact that most children have ready access to a computer and associate the use of a computer with entertainment and fun. By leveraging this concept, EDU Niche’s approach makes learning fun and more interesting through the use of cutting edge technology. Online tutoring sessions are conducted on a real-time interactive whiteboard in conjunction with audio and video capabilities that allow students and tutors to share one screen in a secure web environment. Students and the Company’s professional tutors are able to communicate on a personalized one-to-one basis at their own pace, giving students the undivided attention that is needed to assist them in understanding the concepts easily and quickly. Using the virtual whiteboard workspace both tutor and student draw and write to share problems, solutions and explanations, and work with simulations and animations to maximize learning. This high tech approach makes tutoring more efficient, cost effective, and accessible for students everywhere.
  3. 3. 4 Our highly qualified team assesses each student’s capabilities and targets specific problem areas in order to augment their learning and analyzing skills. All tutors are well trained and have either a Master’s or Bachelor’s Degree. The online platform provides for unlimited online tutoring - 24/7 – giving students the help they need to achieve their goals, when they need it. Students can connect to a tutor as often as they need help to get tutoring for any and all subjects. EDU Niche also delivers one-on-one homework help, including writing reports and essays - allowing students to obtain immediate answers to their queries. Online, or e-learning, is a growing market and one that figures prominently in the future of education. The U.S. online education market alone was estimated at $10.2 billion in 2010 and will reach a projected $24.2 billion by 2015. Approximately 5.6 million college students were enrolled in at least one online course in 2009, including 2.14 million online-only students. By 2014, that number will grow to an estimated nearly 4 million, according to research from The Sloan Consortium. There are also over 5 million community college students taking online courses, and 2 million K-12 online students. Education research firm Ambient Insights reports that K-12 students taking at least some online education courses will grow to an estimated 6.7 million by 2014. EDU Niche’s management knows that the best marketing strategy is to aggressively pursue a comprehensive promotional campaign. A well-rounded approach to marketing promotes the Company to a diverse customer base. Marketing for the Company will include a combination of time-tested methods, including traditional advertising, public relations, social media, and a robust search engine optimization and online marketing campaign. Perhaps the most valuable source of advertising will be referrals given by satisfied parents and children who recommend EDU Niche to others, assisting in increasing the client base and establishing the Company as the premier web-based tutoring service. The Company is led by Sunil and Eva Kumar, who have a strong background in management, operational management, project management and financial modeling, and possesses outstanding customer service and communications skills. They bring with them significant business acumen and expertise garnered from 24 years of combined experience working as a Business Analyst and a Operations Team Lead for JP Morgan Chase. Mr. Kumar began tutoring during his college years and has continued to dedicate himself to helping other achieve their educational goals by providing private tutoring. Mr. Kumar holds a Master’s and Bachelor’s Degree in Commerce, as well as a Bachelor’s Degree in Law. Mrs. Kumar holds a Bachelor’s Degree in Spanish. EDU Niche is looking for all available options to raise $200K in small business funding in order to fuel the growth of our education business. The funds will also act as operating capital during the first few months of operation.
  4. 4. 5 1.1 Objectives  Achieve funding  Build a fully functional, interactive website  Establish to EDU Niche as the preferred online tutoring resource  Firmly establish EDU Niche as a marquee brand, expand services to reach a global market 1.2 Mission Statement The mission of EDU Niche, LLC is to offer affordable education through the internet to students worldwide and helping them to achieve their goals. We understanding that in today’s fast-paced world, that time is of essence for both our clients and their parents. To meet this market demand EDU Niche will accommodate clients’ needs by offering flexible schedules online to bring tutoring services to the students at their convenience. 1.3 Keys to Success  Provide superior customer service that leads to referrals and establishes a strong tie with both parents and children  Provide exceptional services that lead to client satisfaction and consistent referrals  Maintain well-planned and innovative tutoring programs  Implement a strategic marketing plan to secure a solid base of student enrollment  Astute management of budget and careful cost control 2.0 Company Summary EDU Niche, LLC is a start-up S-corporation that is registered in the state of Texas on May 12, 2011. 2.1 Company Ownership EDU Niche, LLC is jointly owned by Sunil Kumar (50%) and Eva Kumar (50%).
  5. 5. 6 2.2 Pre-Operating Source and Use of Funds The Pre-Operating Source & Use of Funds section details the Expenses, Assets, Inventory, Investment and Debt needed to facilitate the Company’s business objectives. The Pre-Operating expenses and funding occur before the Company receives revenue. Expenses Marketing & Advertising $600 Travel & Entertainment $6,000 Legal & Accounting $1,000 Rent Deposit $1,000 Staff/Payroll $2,000 Office Supplies $1,000 Total Expenses $11,600 Assets Inventory $0 Property $0 Equipment $28,000 Other Long-Term Assets $0 Total Assets $28,000 Total Use of Funds $39,600 Pre-Operating Use of Funds Investment Owner $0 Investor $0 Total Investment $0 Debt Current Debt $0 Long-Term Debt $200,000 Total Debt $200,000 Total Source of Funds $200,000 Pre-Operating Source of Funds Total Source of Funds $200,000 Total Use of Funds $39,600 Month 1 Starting Cash $160,400 Total Source & Use of Funds $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Investment Debt Expenses Assets Cash Total Source & Use of Funds
  6. 6. 7 3.0 Products and Services EDU Niche, LLC offers online tutoring services to students of all ages from grades K-12 and college, and for any subject. The Company’s individualized teaching methods enable students to master not only the basics, but also gain in-depth knowledge of subjects. With the assistance of interactive white board, microphone and headset, digital pen tablet, and high speed internet, EDU Niche uses state-of-the-art tools and software to ensure superior voice quality and video clarity in order to teach students in an interactive manner. EDU Niche’s Program Coordinators will interface with the students to conduct an online Pre- Enrollment Test (PET). The PET measures achievement in a broad range of topics, basic skills, and allows for both formative and summative assessments. A comprehensive, detailed analysis is prepared by EDU Niche’s Academic Counselors based on the student’s PET score and parent’s feedback. The Company’s professional tutors then create a Structured Learning Plan (SLP) for the student. The SLP helps to provide weekly and monthly achievement goals for each student and identify any modification to the teaching strategies that may be required to best facilitate achieving the individual student’s goals. Subjects include, but are not limited to the following:  English  Math  Geometry  Algebra  Discrete Mathematics  Boolean Algebra  Trigonometry  Calculus  Physics  Science  Statistics  Biology  Chemistry Some of the most popular help topics include:  Math Calculation  Math Symbols  Math Multiplication Table  Math Conversions  Math Charts  Equivalent Fractions  Linear Equations  Math Problems  How to Factor Polynomials  Area of Triangle  Algebra Equations  Simplifying Radicals  Fractions  Solving Square Root  Slope Formula  Algebra 2 Help  Algebra Word Problems  Math Word Problems  CPT Math Practice Test  GED Math Practice Test EDU Niche employs a diverse and highly professional team of tutors, who are experts in their field. Tutors include professors, teachers, lecturers, and graduate students from recognized universities, and all of whom have a Bachelor’s or Master’s degree.
  7. 7. 8 Pricing for the Company’s services are as follows: Plans Free Trial 1 Hour____ 2 Hours__________5 Hours Cost $0.00 $14.99 $29.99 $69.99 Payment Frequency Weekly Monthly Monthly Monthly Online Tutoring - - - - Contract None None None None None None None Basic Plan Includes:  Connect with any available online tutor.  24/7 Available Online Tutoring with Customer Support  Unlimited Online Tutoring  Customized Online Assessment Tests to meet the needs of each student  Homework help Personalized Features: Additional Cost: $15.00 per month  Includes all Basic plan features  Ability to pre-schedule your sessions  Personalized 1 to 1 Tutoring with same tutor each time  Detailed Confidential Progress Reports Audio/Video Features: Additional Cost: $10.00 per month  Live Video/Audio Streaming of online sessions
  8. 8. 9 4.0 Market Summary Online education is a burgeoning market that is just beginning to truly transform the education system. More than 2,500 colleges and universities nationwide offer one or more online course, and an approximate 5.6 million students were enrolled in at least one online course in 2009, according to the most recent data from the Sloan Survey of Online Learning. More than 1 million new online students took courses that year.1 “This represents the largest ever year-to-year increase in the number of students studying online,” said study co-author Elaine Allen, of the Babson Survey Research Group and Professor of Statistics & Entrepreneurship at Babson College. “Nearly thirty percent of all college and university students now take at least one course online.” Other report findings include:  Almost two-thirds of for-profit institutions now say that online learning is a critical part of their long term strategy.  The 21% growth rate for online enrollments far exceeds the 2% growth in the overall higher education student population.  Nearly one-half of institutions report that the economic downturn has increased demand for face-to-face courses and programs.  Three-quarters of institutions report that the economic downturn has increased demand for online courses and programs. Along with overall online education students, there have also been substantial increases in online-only enrollment, which will reach an estimated 3.97 million by 2014, according to the Babson Survey Research Group. This growth is shown in the chart below,2 which is followed by projections for high school online enrollment.3 1 The Sloan Consortium. “Class Differences: Online Education in the United States, 2010.” http://sloanconsortium.org/publications/survey/survey05.asp 2 Babson Survey Research Group. “Going the Distance: Online education in the U.S. 2011.” Nov. 2011. http://www.onlinelearningsurvey.com/reports/goingthedistance.pdf 3 Ambient Insight. “US Self-Paced e-Learning Market.” Oct 2009. http://www.ambientinsight.com/Reports/eLearning.aspx#section1
  9. 9. 10 The National Education Association (NEA) reports that the percentage of high school students taking online courses “nearly doubled” in 2009 to 27%. The NEA’s annual “Speak Up” report notes that there are several initiatives nationwide moving more and more courses online in high school. Among these:4  “In Florida, a new state law requires all entering 9th-graders to have at least one online class before they graduate (as does Michigan, Indiana, New Mexico, and Alabama) and it also provides that the full-time, kindergarten through 12th-grade Florida Virtual School begin offering high-school diplomas in 2013.  In Texas, possible presidential candidate Gov. Rick Perry has expanded the reach of the Texas Virtual School Network and called on state colleges to offer a $10,000 degree – something he says is possible through online education.” The NEA also reports that at the community college level, “the number of online students has grown astronomically over the years.” Just 700,000 students took online classes in 1997, and the figure grew to over 5 million in 2007. Revenue for all segments of the U.S. online learning was $10.2 billion in 2010 and will reach a projected $24.2 billion by 2015. Of this, the preK-12 academic segment is the fastest-growing 4 NEA. “Study Shows Students Taking Online Courses More Likely to Fail.” July 26, 2011. http://neatoday.org/2011/07/26/study-shows-students-taking-online-courses-more-likely-to-fail/
  10. 10. 11 segment, with a 16.8% annual growth rate, according to the International Association for K-12 Online Learning (iNACOL).5 4.1 Industry Summary The Company will operate in this distinct industry; Exam Preparation and Tutoring (NAICS 611691). Information provided is gathered from the U.S. Census. Sales Volume Number of Businesses Unknown 0.00% Less Than $500k 39.81% $500k to $1mil 26.86% $1 to $2.5mil 18.47% $2.5 to $5mil 9.11% $5 to $10mil 4.32% $10 to $20mil 0.96% $20 to $50mil 0.24% $50 to $100mil 0.24% $100 to $500mil 0.00% $500mil to $1bil 0.00% Over $1bil 0.00% U.S. Exam Preparation and Tutoring Employee Size Number of Businesses Unknown 0.00% 1 to 4 53.84% 5 to 9 14.39% 10 to 19 22.03% 20 to 49 7.62% 50 to 99 1.06% 100 to 249 0.67% 250 to 499 0.17% 500 to 999 0.12% 1,000 to 4,999 0.10% 5,000 to 9,999 0.00% 10,000+ 0.01% U.S. Exam Preparation and Tutoring Sales 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% Unknown LessThan $500k $500kto $1mil $1to $2.5mil $2.5to $5mil $5to $10mil $10to $20mil $20to $50mil $50to $100mil $100to $500mil $500milto $1bil Over$1bil Sales Volume NumberofBusinesses 5 iNACOL. “Research, Trends, and Statistics.” http://www.inacol.org/press/docs/nacol_fast_facts.pdf
  11. 11. 12 Employees 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Unknown 1to4 5to9 10to19 20to49 50to99 100to249 250to499 500to999 1,000to 4,999 5,000to 9,999 10,000+ Employee Size NumberofBusinesses 4.1 Industry Analysis The map below shows sales per capita for Exam Preparation and Tutoring (NAICS 611691).
  12. 12. 13 Exam Preparation and Tutoring This U.S. industry comprises establishments primarily engaged in offering preparation for standardized examinations and/or academic tutoring services. Academic tutoring services. College entrance exam preparation instruction. Learning centers offering remedial courses. Tutoring, academic Establishments Total Sales Annual Payroll Paid Employees 5,035 $1,909,336,000 $772,544,000 53,669 10.7 40.5% Annual Payroll per Employee Sales Per Employee Employees per Establishment Payroll as a Percent of Sales United States Exam Preparation and Tutoring Sales per Establishment Payroll per Establishment $379,213 $153,435 $14,395 $35,576 Establishments Total Sales Annual Payroll Paid Employees 291 $99,885,000 $36,414,000 3,129 $11,638 $31,922 Annual Payroll per Employee Sales Per Employee 10.8 36.5% Employees per Establishment Payroll as a Percent of Sales $343,247 $125,134 Texas Exam Preparation and Tutoring Sales per Establishment Payroll per Establishment
  13. 13. 14 5.0 Marketing Strategy/Implementation EDU Niche will utilize a comprehensive promotional campaign, initially focusing on driving awareness within the United States and Canada. EDU Niche will emphasize the convenience and affordability of its online interactive services, and that it offers services that are superior to the competition and at the most competitive prices. The Company will reach its audience by using a marketing strategy that includes a combination of time-tested methods, including traditional marketing, such as public relations and direct sales, but will primarily focus on developing a strong internet marketing strategy and high-profile presence. This will be accomplished by using social media, and a robust search engine optimization and online marketing campaign. The Company will also promote brand recognition through article and directory submission, online PR, and affiliate marketing. Additionally, these marketing efforts will be employed: Marketing Collateral: The Company will develop attractive product brochures, flyers, and other media. This marketing collateral can then be sent to schools, organizations, and interested individuals. Press Releases: Press releases will be created, and the Company will contact TV shows, newspapers, industry magazines and websites. This is a free to low cost way to drive awareness of the Company and its products and services. Internet Advertising: The Company will allot portions of its marketing budget for strategic Internet marketing, including search engine optimization. This tactic involves organically improving the quality and volume of traffic to its website through search engines. Search engine optimization (SEO) can also target different kinds of searches, including image, local, and industry-specific vertical searches. Website: An attractive and user-friendly website will be created. It will outline the Company’s philosophy and services, as well as spotlight the considerable background of the management team. The website will be fairly complex, utilizing state-of-the-art software and real-time instruction tools. The website will also offer a private chat room for clients only and an e- commerce functionality for on-line payments. The website will be professionally designed and maintained, presenting customers with a dynamic face for EDU Niche. Referral Marketing: The Company will become a member of online networking forums, which allows businesses to share ideas, contacts, and most importantly, business referrals. EDU Niche will use referrals to reach a new customer base in need of the services provided. Trade Shows: These are vital to making connections with potential customers. The Company will attend select trade shows and conventions within the industry and target markets in the U.S. and Canada. Social media: The Company will communicate with its customers via online forums and monitor ratings and review sites and industry blogs to determine the prevailing consumer attitudes, the level
  14. 14. 15 of EDU Niche’s brand recognition, as well as trends the Company needs to address. The Company will consider maintaining Facebook and Twitter sites. Word of mouth: EDU Niche’s adherence to providing industry-leading services with an unmatched attention to client satisfaction will establish a positive reputation within the region. This will lead the Company’s customers to recommending the Company to their friends, family, and colleagues. This is a simple (and free) marketing tactic that has powerful implications and can help EDU Niche become further recognized as a premier online tutoring program. 5.1 SWOT Analysis Internal Factors External Factors Positive Negative Strengths Weaknesses Affordable pricing Unlimited online tutoring Establish Company as the leader 24/7 service in child care in the area Capitalize on franchise brand recognition Prolonged economic recovery Highly professional team of tutors Threats Parents choose to spend elsewhere Dealing with an highly competitive market Seasonal Impacts with online tutoring New Company lack brand recognition Opportunities Capture the majority of the online tutoring market in the U.S. and Canada
  15. 15. 16 6.0 Management Summary The Company will be owned and managed by Eva Kumar, who together possess the requisite management skills and experience to successfully run this operation. Mrs. Kumar is entrepreneurial-minded leaders who is highly skilled in project management on an international level.  Eva Kumar, President and Co-Founder – Mrs. Kumar brings with her over 4 years’ experience in education and business before co-founding EDU Niche. She is a co-founder for another internet eLearning company, Tutor Pace, Inc. a global education company that leverages Internet, technology and resources worldwide to make supplemental education affordable to masses. Tutor Pace addresses global students through remote teachers and provides one-on-one personalized tutoring at an affordable $79.99 a month for unlimited tutoring. Eva’s visionary leadership and educational expertise brought several ideas for K-12 market. With experience as a teacher, Eva provide a unique combination of cutting edge vision and practical application skills.
  16. 16. 17 7.0 Financial Summary 7.1 Revenue Forecast The Revenue Forecast section details the revenue that the Company will receive. This section also details the direct costs. The following graphs illustrate the amount of revenue each line item contributes. Year 1 Year 2 Year 3 Units Tuition Fees 2,748 4,586 7,137 Advertising 2,720 4,540 7,065 Total Units 5,468 9,125 14,202 Unit Price Tuition Fees $99.00 $99.00 $99.00 Advertising $200.00 $200.00 $200.00 Revenue Tuition Fees $272,032 $453,970 $706,524 Advertising $544,065 $907,940 $1,413,047 Gross Revenue $816,097 $1,361,910 $2,119,571 Unit Cost Tuition Fees $82.17 $82.17 $82.17 Advertising $0.00 $0.00 $0.00 Direct Costs Tuition Fees $225,787 $376,795 $586,415 Advertising $0 $0 $0 Direct Cost of Revenue $225,787 $376,795 $586,415 Yearly Revenue
  17. 17. 18 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Year 1 Year 2 Year 3 Yearly Revenue Projections Advertising Tuition Fees $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Year 1 Revenue Projections Advertising Tuition Fees
  18. 18. 19 7.2 Personnel Forecast The Personnel section breaks down the payroll expense line on the Income Statement. It provides total headcount, average salary per category and total pay per category. Year 1 Year 2 Year 3 Headcount Managers 1 2 3 Executives 2 2 2 Management 2 4 7 Team Leads 4 8 14 Team Members 28 56 98 HR 1 2 2 IT 4 6 6 Finance/Accounting 1 1 2 Admin Support 1 1 1 District Coordinators 6 6 6 Total Headcount 50 88 141 Compensation Managers $15,000 $16,200 $17,496 Executives $25,000 $25,750 $26,523 Management $10,000 $10,800 $11,664 Team Leads $7,000 $7,560 $8,165 Team Members $5,000 $5,400 $5,832 HR $5,000 $5,400 $5,832 IT $8,000 $8,640 $9,331 Finance/Accounting $6,000 $6,480 $6,998 Admin Support $6,000 $6,480 $6,998 District Coordinators $20,000 $20,600 $21,218 Payroll Managers $15,000 $32,400 $52,488 Executives $50,000 $51,500 $53,045 Management $20,000 $43,200 $81,648 Team Leads $28,000 $60,480 $114,307 Team Members $140,000 $302,400 $571,536 HR $5,000 $10,800 $11,664 IT $32,000 $51,840 $55,987 Finance/Accounting $6,000 $6,480 $13,997 Admin Support $6,000 $6,480 $6,998 District Coordinators $120,000 $123,600 $127,308 Total Payroll $422,000 $689,180 $1,088,979 Yearly Personnel
  19. 19. 20 7.3 Income Statement The Income Statement is also known as a Profit & Loss Statement. This table breaks down Revenue, Cost of Revenue, Operating Expenses, Depreciation, Interest, Taxes, and bottom line Earnings for the first three years. Year 1 Year 2 Year 3 Gross Revenue $816,097 $1,361,910 $2,119,571 Direct Cost of Revenue $225,787 $376,795 $586,415 Other Direct Costs $0 $0 $0 Total Cost of Revenue $225,787 $376,795 $586,415 Gross Profit $590,310 $985,115 $1,533,156 Gross Margin Percentage 72.3% 72.3% 72.3% Operating Expenses Marketing & Advertising $7,200 $7,560 $8,316 Travel & Entertainment $6,000 $6,000 $6,000 Merchant Fees $360 $378 $397 Rent $12,000 $13,200 $14,520 Utilities $1,200 $1,260 $1,323 Legal/Accounting $7,200 $7,776 $8,398 Office Supplies $2,400 $2,520 $2,722 Auto $12,000 $12,600 $13,860 Cleaning & Janitorial $1,200 $1,260 $1,361 Web Hosting $3,000 $3,150 $3,308 Repair & Maintenance $600 $630 $674 Telephones/Internet $3,600 $3,780 $4,082 Misc Expenses $2,400 $2,520 $2,722 Total Payroll $422,000 $689,180 $1,088,979 Payroll Taxes $46,420 $75,810 $119,788 Payroll Benefits $0 $0 $0 Total Operating Expenses $527,580 $827,624 $1,276,448 Operating Profit $62,730 $157,491 $256,708 Operating Profit Percentage 7.7% 11.6% 12.1% Depreciation $3,500 $5,875 $9,188 Earning Before Interest & Taxes $59,230 $151,616 $247,520 EBIT Percentage 7.3% 11.1% 11.7% Interest Expenses $12,903 $10,401 $7,717 Taxes Accrued $0 $0 $0 Earnings $46,327 $141,215 $239,803 Earnings Percentage 5.7% 10.4% 11.3% Yearly Income Statement
  20. 20. 21 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Year 1 Year 2 Year 3 Yearly Income Statement Gross Revenue Gross Profit Operating Profit Earning Before Interest & Taxes Earnings ($10,000) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Year 1 Income Statement Gross Revenue Gross Profit Operating Profit Earning Before Interest & Taxes Earnings
  21. 21. 22 7.4 Statement of Cash Flow The Statement of Cash Flow illustrates the Company’s cash received and cash spent for the three year period. The table is broken down into three main categories; Operating, Investing, and Financing. The Operating Activities report the Company’s business operations. Investing Activities detail the Company’s property, plant, and equipment transactions. Financing Activities account for the Company’s paid-in capital and debt. Year 1 Year 2 Year 3 Operating Activities Cash Received Gross Revenue $816,097 $1,361,910 $2,119,571 Total Cash Received $816,097 $1,361,910 $2,119,571 Cash Used Cost of Revenue $225,787 $376,795 $586,415 Payroll/Taxes/Benefits $468,420 $764,990 $1,208,766 Other Operating Expenses $59,160 $62,634 $67,682 Additional Inventory $0 $0 $0 Interest Expenses $12,903 $10,401 $7,717 Taxes Accrued $0 $0 $0 Total Cash Used $766,270 $1,214,819 $1,870,580 Net Cash From/(Used By) Operating $49,827 $147,090 $248,991 Investing Activities Cash Received Proceeds from Property/Land $0 $0 $0 Proceeds from Equipment $0 $0 $0 Total Cash Received $0 $0 $0 Cash Used Purchase of Property/Land $0 $0 $0 Purchase of Equipment $0 $19,000 $26,500 Total Cash Used $0 $19,000 $26,500 Net Cash From/(Used By) Investing $0 ($19,000) ($26,500) Financing Activities Cash Received Proceeds from Investors $0 $0 $0 Proceeds from Long-Term Debt $0 $0 $0 Total Cash Received $0 $0 $0 Cash Used Dividends Paid $0 $0 $0 Repayment of Long-Term Debt $34,620 $37,122 $39,806 Total Cash Used $34,620 $37,122 $39,806 Net Cash From/(Used By) Financing ($34,620) ($37,122) ($39,806) Net Cash Flow $15,207 $90,968 $182,685 Cash Balance $175,607 $266,575 $449,261 Yearly Statement of Cash Flow
  22. 22. 23 ($20,000) $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Year 1 Statement of Cash Flow Net Cash Flow Cash Balance
  23. 23. 24 7.5 Balance Sheet The Balance Sheet shows the Company’s Assets, Liabilities, and Shareholders’ Equity for a given time period. Year 1 Year 2 Year 3 Assets Current Assets Cash $175,607 $266,575 $449,261 Inventory $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $175,607 $266,575 $449,261 Long-Term Assets Property $0 $0 $0 Equipment $28,000 $47,000 $73,500 Other Long-Term Assets $0 $0 $0 Accumulated Depreciation ($3,500) ($9,375) ($18,563) Total Long-Term Assets $24,500 $37,625 $54,938 Total Assets $200,107 $304,200 $504,198 Liabilities Current Liabilities Current Debt $0 $0 $0 Total Current Liabilities $0 $0 $0 Long-Term Liabilities Long-Term Debt $165,380 $128,258 $88,452 Total Long-Term Liabilities $165,380 $128,258 $88,452 Total Liabilities $165,380 $128,258 $88,452 Shareholders' Equity Paid-in Capital Owner $0 $0 $0 Investor $0 $0 $0 Total Paid-in Capital $0 $0 $0 Retained Earnings Previous Retained Earnings ($11,600) $34,727 $175,942 Current Earnings $46,327 $141,215 $239,803 Total Retained Earnings $34,727 $175,942 $415,746 Total Shareholders' Equity $34,727 $175,942 $415,746 Total Liabilities & Equity $200,107 $304,200 $504,198 Yearly Balance Sheet
  24. 24. 25 7.6 Break-Even Analysis The Operating Break-Even accounts for the Company’s revenue and expenses on the Income Statement. Analysis Month Operating Break-Even 9 Break-Even Operating Break-Even $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 Month Accumulated Revenue Accumulated Expenses
  25. 25. 26 7.7 Best & Worse Case The Best and Worse Case analysis illustrates what the Company’s financial statements might look like with an increase or decrease in Revenue. 10% Year 1 Year 2 Year 3 Gross Revenue $734,487 $1,225,719 $1,907,614 Total Cost of Revenue $203,208 $339,116 $527,773 Gross Profit $531,279 $886,603 $1,379,841 Gross Margin Percentage 72.3% 72.3% 72.3% Total Operating Expenses $527,580 $827,624 $1,276,448 Operating Profit $3,699 $58,980 $103,392 Operating Profit Percentage 0.5% 4.8% 5.4% Earning Before Interest & Taxes $199 $53,105 $94,205 EBIT Percentage 0.0% 4.3% 4.9% Interest Expenses $12,903 $10,401 $7,717 Taxes Accrued $0 $0 $0 Earnings ($12,704) $42,704 $86,488 Earnings Percentage -1.7% 3.5% 4.5% Net Cash Flow ($43,824) ($7,543) $29,369 Cash Balance $116,576 $109,033 $138,402 Worse Case -- Revenue Decrease By: 10% Year 1 Year 2 Year 3 Gross Revenue $897,707 $1,498,101 $2,331,528 Total Cost of Revenue $248,366 $414,475 $645,056 Gross Profit $649,341 $1,083,626 $1,686,472 Gross Margin Percentage 72.3% 72.3% 72.3% Total Operating Expenses $527,580 $827,624 $1,276,448 Operating Profit $121,761 $256,002 $410,024 Operating Profit Percentage 13.6% 17.1% 17.6% Earning Before Interest & Taxes $118,261 $250,127 $400,836 EBIT Percentage 13.2% 16.7% 17.2% Interest Expenses $12,903 $10,401 $7,717 Taxes Accrued $0 $0 $0 Earnings $105,358 $239,727 $393,119 Earnings Percentage 11.7% 16.0% 16.9% Net Cash Flow $74,238 $189,480 $336,001 Cash Balance $234,638 $424,118 $760,119 Best Case -- Revenue Increase By:
  26. 26. 27 Appendix A – Year 1 Financials Year 1 Monthly Forecast illustrates the Company’s first 12 months after the Pre-Operating stage. Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Units Tuition Fees 170 179 189 199 209 220 231 243 256 269 283 298 Advertising 169 178 187 197 207 218 229 241 254 267 281 295 Total Units 339 357 376 395 416 437 460 484 510 536 564 594 Unit Price Tuition Fees $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 Advertising $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 Revenue Tuition Fees $16,875 $17,756 $18,682 $19,657 $20,683 $21,763 $22,899 $24,094 $25,351 $26,674 $28,066 $29,531 Advertising $33,750 $35,511 $37,365 $39,315 $41,367 $43,526 $45,797 $48,187 $50,702 $53,349 $56,133 $59,063 Gross Revenue $50,625 $53,267 $56,047 $58,972 $62,050 $65,289 $68,696 $72,281 $76,054 $80,023 $84,199 $88,594 Unit Cost Tuition Fees $82.17 $82.17 $82.17 $82.17 $82.17 $82.17 $82.17 $82.17 $82.17 $82.17 $82.17 $82.17 Advertising $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Direct Costs Tuition Fees $14,006 $14,737 $15,506 $16,316 $17,167 $18,063 $19,006 $19,998 $21,042 $22,140 $23,295 $24,511 Advertising $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Direct Cost of Revenue $14,006 $14,737 $15,506 $16,316 $17,167 $18,063 $19,006 $19,998 $21,042 $22,140 $23,295 $24,511 Year 1 Revenue
  27. 27. 28 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Headcount Managers 1 1 1 1 1 1 1 1 1 1 1 1 Executives 2 2 2 2 2 2 2 2 2 2 2 2 Management 2 2 2 2 2 2 2 2 2 2 2 2 Team Leads 4 4 4 4 4 4 4 4 4 4 4 4 Team Members 28 28 28 28 28 28 28 28 28 28 28 28 HR 1 1 1 1 1 1 1 1 1 1 1 1 IT 4 4 4 4 4 4 4 4 4 4 4 4 Finance/Accounting 1 1 1 1 1 1 1 1 1 1 1 1 Admin Support 1 1 1 1 1 1 1 1 1 1 1 1 District Coordinators 6 6 6 6 6 6 6 6 6 6 6 6 Total Headcount 50 50 50 50 50 50 50 50 50 50 50 50 Compensation Managers $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 Executives $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 Management $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 Team Leads $583 $583 $583 $583 $583 $583 $583 $583 $583 $583 $583 $583 Team Members $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 HR $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 IT $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 Finance/Accounting $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Admin Support $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 District Coordinators $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 Payroll Managers $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 Executives $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 Management $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 Team Leads $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 $2,333 Team Members $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 HR $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 IT $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 Finance/Accounting $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Admin Support $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 District Coordinators $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Total Payroll $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 Year 1 Personnel
  28. 28. 29 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Gross Revenue $50,625 $53,267 $56,047 $58,972 $62,050 $65,289 $68,696 $72,281 $76,054 $80,023 $84,199 $88,594 Direct Cost of Revenue $14,006 $14,737 $15,506 $16,316 $17,167 $18,063 $19,006 $19,998 $21,042 $22,140 $23,295 $24,511 Other Direct Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cost of Revenue $14,006 $14,737 $15,506 $16,316 $17,167 $18,063 $19,006 $19,998 $21,042 $22,140 $23,295 $24,511 Gross Profit $36,619 $38,530 $40,541 $42,657 $44,883 $47,225 $49,690 $52,283 $55,012 $57,883 $60,904 $64,083 Gross Margin Percentage 72.3% 72.3% 72.3% 72.3% 72.3% 72.3% 72.3% 72.3% 72.3% 72.3% 72.3% 72.3% Operating Expenses Marketing & Advertising $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 Travel & Entertainment $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Merchant Fees $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 Legal/Accounting $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 Office Supplies $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 Auto $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Cleaning & Janitorial $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 Web Hosting $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 Repair & Maintenance $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 Telephones/Internet $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 Misc Expenses $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 Total Payroll $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 $35,167 Payroll Taxes $3,868 $3,868 $3,868 $3,868 $3,868 $3,868 $3,868 $3,868 $3,868 $3,868 $3,868 $3,868 Payroll Benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operating Expenses $43,965 $43,965 $43,965 $43,965 $43,965 $43,965 $43,965 $43,965 $43,965 $43,965 $43,965 $43,965 Operating Profit ($7,346) ($5,435) ($3,424) ($1,308) $918 $3,260 $5,725 $8,318 $11,047 $13,918 $16,939 $20,118 Operating Profit Percentage -14.5% -10.2% -6.1% -2.2% 1.5% 5.0% 8.3% 11.5% 14.5% 17.4% 20.1% 22.7% Depreciation $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 Earning Before Interest & Taxes ($7,638) ($5,727) ($3,716) ($1,600) $626 $2,969 $5,433 $8,027 $10,755 $13,627 $16,648 $19,826 EBIT Percentage -15.1% -10.8% -6.6% -2.7% 1.0% 4.5% 7.9% 11.1% 14.1% 17.0% 19.8% 22.4% Interest Expenses $1,167 $1,150 $1,134 $1,117 $1,101 $1,084 $1,067 $1,051 $1,034 $1,017 $999 $982 Taxes Accrued $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Earnings ($8,805) ($6,877) ($4,850) ($2,718) ($475) $1,884 $4,366 $6,976 $9,722 $12,610 $15,648 $18,844 Earnings Percentage -17.4% -12.9% -8.7% -4.6% -0.8% 2.9% 6.4% 9.7% 12.8% 15.8% 18.6% 21.3% Year 1 Income Statement
  29. 29. 30 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Operating Activities Cash Received Gross Revenue $50,625 $53,267 $56,047 $58,972 $62,050 $65,289 $68,696 $72,281 $76,054 $80,023 $84,199 $88,594 Total Cash Received $50,625 $53,267 $56,047 $58,972 $62,050 $65,289 $68,696 $72,281 $76,054 $80,023 $84,199 $88,594 Cash Used Cost of Revenue $14,006 $14,737 $15,506 $16,316 $17,167 $18,063 $19,006 $19,998 $21,042 $22,140 $23,295 $24,511 Payroll/Taxes/Benefits $39,035 $39,035 $39,035 $39,035 $39,035 $39,035 $39,035 $39,035 $39,035 $39,035 $39,035 $39,035 Other Operating Expenses $4,930 $4,930 $4,930 $4,930 $4,930 $4,930 $4,930 $4,930 $4,930 $4,930 $4,930 $4,930 Additional Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest Expenses $1,167 $1,150 $1,134 $1,117 $1,101 $1,084 $1,067 $1,051 $1,034 $1,017 $999 $982 Taxes Accrued $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cash Used $59,138 $59,853 $60,605 $61,398 $62,233 $63,112 $64,038 $65,013 $66,040 $67,121 $68,260 $69,458 Net Cash From/(Used By) Operating ($8,513) ($6,585) ($4,558) ($2,426) ($183) $2,176 $4,658 $7,268 $10,014 $12,902 $15,940 $19,136 Investing Activities Cash Received Proceeds from Property/Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Proceeds from Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cash Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cash Used Purchase of Property/Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Purchase of Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cash Used $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Cash From/(Used By) Investing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Financing Activities Cash Received Proceeds from Investors $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Proceeds from Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cash Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cash Used Dividends Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Repayment of Long-Term Debt $2,794 $2,810 $2,826 $2,843 $2,859 $2,876 $2,893 $2,910 $2,927 $2,944 $2,961 $2,978 Total Cash Used $2,794 $2,810 $2,826 $2,843 $2,859 $2,876 $2,893 $2,910 $2,927 $2,944 $2,961 $2,978 Net Cash From/(Used By) Financing ($2,794) ($2,810) ($2,826) ($2,843) ($2,859) ($2,876) ($2,893) ($2,910) ($2,927) ($2,944) ($2,961) ($2,978) Net Cash Flow ($11,306) ($9,395) ($7,384) ($5,269) ($3,042) ($700) $1,765 $4,358 $7,087 $9,958 $12,979 $16,158 Cash Balance $149,094 $139,698 $132,314 $127,045 $124,003 $123,303 $125,068 $129,426 $136,513 $146,471 $159,450 $175,607 Year 1 Statement of Cash Flow
  30. 30. 31 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Assets Current Assets Cash $149,094 $139,698 $132,314 $127,045 $124,003 $123,303 $125,068 $129,426 $136,513 $146,471 $159,450 $175,607 Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Current Assets $149,094 $139,698 $132,314 $127,045 $124,003 $123,303 $125,068 $129,426 $136,513 $146,471 $159,450 $175,607 Long-Term Assets Property $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equipment $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 $28,000 Other Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Accumulated Depreciation ($292) ($583) ($875) ($1,167) ($1,458) ($1,750) ($2,042) ($2,333) ($2,625) ($2,917) ($3,208) ($3,500) Total Long-Term Assets $27,708 $27,417 $27,125 $26,833 $26,542 $26,250 $25,958 $25,667 $25,375 $25,083 $24,792 $24,500 Total Assets $176,802 $167,115 $159,439 $153,878 $150,544 $149,553 $151,026 $155,093 $161,888 $171,554 $184,241 $200,107 Liabilities Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Current Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Long-Term Liabilities Long-Term Debt $197,206 $194,397 $191,570 $188,728 $185,868 $182,992 $180,099 $177,190 $174,263 $171,319 $168,359 $165,380 Total Long-Term Liabilities $197,206 $194,397 $191,570 $188,728 $185,868 $182,992 $180,099 $177,190 $174,263 $171,319 $168,359 $165,380 Total Liabilities $197,206 $194,397 $191,570 $188,728 $185,868 $182,992 $180,099 $177,190 $174,263 $171,319 $168,359 $165,380 Shareholders' Equity Paid-in Capital Owner $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Retained Earnings Previous Retained Earnings ($11,600) ($20,405) ($27,282) ($32,132) ($34,849) ($35,324) ($33,439) ($29,073) ($22,097) ($12,375) $235 $15,883 Current Earnings ($8,805) ($6,877) ($4,850) ($2,718) ($475) $1,884 $4,366 $6,976 $9,722 $12,610 $15,648 $18,844 Total Retained Earnings ($20,405) ($27,282) ($32,132) ($34,849) ($35,324) ($33,439) ($29,073) ($22,097) ($12,375) $235 $15,883 $34,727 Total Shareholders' Equity ($20,405) ($27,282) ($32,132) ($34,849) ($35,324) ($33,439) ($29,073) ($22,097) ($12,375) $235 $15,883 $34,727 Total Liabilities & Equity $176,802 $167,115 $159,439 $153,878 $150,544 $149,553 $151,026 $155,093 $161,888 $171,554 $184,241 $200,107 Year 1 Balance Sheet
  31. 31. 32 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Long-Term Debt Interest Rate 7.00% Term 5.0 Balance $200,000 $197,206 $194,397 $191,570 $188,728 $185,868 $182,992 $180,099 $177,190 $174,263 $171,319 $168,359 Interest $1,167 $1,150 $1,134 $1,117 $1,101 $1,084 $1,067 $1,051 $1,034 $1,017 $999 $982 Principle $2,794 $2,810 $2,826 $2,843 $2,859 $2,876 $2,893 $2,910 $2,927 $2,944 $2,961 $2,978 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 Balance $165,380 $162,385 $159,372 $156,341 $153,293 $150,227 $147,143 $144,041 $140,921 $137,783 $134,627 $131,452 Interest $965 $947 $930 $912 $894 $876 $858 $840 $822 $804 $785 $767 Principle $2,996 $3,013 $3,031 $3,048 $3,066 $3,084 $3,102 $3,120 $3,138 $3,157 $3,175 $3,193 Month 25 Month 26 Month 27 Month 28 Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 Balance $128,258 $125,046 $121,815 $118,566 $115,297 $112,009 $108,703 $105,376 $102,031 $98,666 $95,281 $91,877 Interest $748 $729 $711 $692 $673 $653 $634 $615 $595 $576 $556 $536 Principle $3,212 $3,231 $3,250 $3,269 $3,288 $3,307 $3,326 $3,346 $3,365 $3,385 $3,404 $3,424 Loan Amortization Schedule

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