This document provides an executive summary and overview of Covenant Financial Advisors, LLC. It discusses the company's mission to provide retirement counseling and financial planning services with integrity and expertise. The company specializes in developing customized portfolios for pre-retirees, retirees, and women. Research shows the growing retirement market and consumer distrust in traditional financial institutions, positioning independent advisors like Covenant Financial Advisors for growth. The executive summary outlines the company's products and services, competitive strengths, and financial projections showing profitability.

1. Cover Page
Covenant Financial Advisors
6600 Preston Road
Suite 2021
Plano, Texas 75024
(214)868-1771 office
(214)419-0019 fax
mrqb18@yahoo.com email
www.CovenantAdvice.com website

2. Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by
______________________ in this business plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of ___________________________.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
_____________________.
Upon request, this document is to be immediately returned to _____________________________.
_________________________________
Signature
_________________________________
Name (typed or printed)
_______________________
Date
This is a business plan. It does not imply an offering of securities.

3. Table of Contents
1.0 Executive Summary...............................................................................................................................1
Chart: Highlights..................................................................................................................................4
1.1 Company Summary...........................................................................................................................4
2.0 Products and Services............................................................................................................................5
4.0 Strategy and Implementation Summary.................................................................................................7
4.1 Competitive Edge...............................................................................................................................7
4.2 Marketing Strategy.............................................................................................................................8
4.3 Sales Strategy.....................................................................................................................................8
4.4 Milestones..........................................................................................................................................8
Table: Milestones.................................................................................................................................9
Chart: Milestones...............................................................................................................................10
5.0 Management Summary........................................................................................................................10
6.0 Financial Plan.......................................................................................................................................11
Table: Financials................................................................................................................................11
Chart: Profit Monthly.........................................................................................................................12
Chart: Profit Yearly............................................................................................................................13
Chart: Sales Monthly.........................................................................................................................13
Chart: Sales by Year..........................................................................................................................14
6.1 Projected Cash Flow........................................................................................................................14
Chart: Cash.........................................................................................................................................15
Table: Financials..........................................................................................................................................1
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5. Table of Contents
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7. Covenant Financial Advisors, LLC
1.0 Executive Summary
Introduction
Covenant Financial Advisors is a minority-owned financial consulting firm specializing
in retirement counseling focused on women, pre-retirees, retirees and small business owners.
Our faith and trust in God and our responsibilities to our clients are our top priorities at all
times.
We are specialists in developing and implementing customized investment, savings, and
insurance portfolios that provide solutions to some of the complicated financial issues of
life...before, during and after retirement. Rick Lindsey, our president, has been a trusted
advisor helping clients understand and navigate the "risks and rewards" of retirement planning
since 2003.
The Firm
Covenant Financial Advisors was founded in 2007. Our mission is to glorify God by faithfully
serving our clients and our community with integrity, compassion and expertise with regard to
managing the "risks" associated with the preservation and distribution of wealth. Our ultimate
goal is to educate and empower our clients with the knowledge and wisdom to take full
advantage of the financial resources available to them. In doing so, we should be able to assist
them in turning some assets into tax-advantaged resources that will continue to grow and leave
lasting legacies for generations to come.
While serving all of Texas, our primary office is located in Plano, Texas. We are proud to
be an independent financial consulting firm. We are affiliated with several national marketing
organizations that support us in whatever capacity needed. We are experts in assisting our
clients in understanding the importance of integrating social security, medicare and tax
planning into their retirement strategies.
Since inception Covenant Financial Advisors has been a sole proprietorship. The need for
growth and a capital infusion has dictated the need to expand the business model to a limited
liability corporation and bring in one or two minority owner/investors. The ultimate growth of
the firm will be determined by our ability to obtain the additional capital and then how
accurately and efficiently the firm is able to implement the facets of this 2010 business plan.
The Products
Covenant Financial Advisors services its clients by developing, implementing and monitoring
customized retirement portfolios utilizing the following products and services:
• Retirement Counseling
• Social Security & Medicare Planning
• Lifetime Income Structure & Distribution
• Medicare Supplemental Plans
• Managed Money Accounts
• Fixed and Indexed Annuities
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8. Covenant Financial Advisors, LLC
• Life, Disability, and Long-term Care Insurance
While developing a personal risk assessment, each client is taken through a step-by-step
process that helps them fully understand their risks and the options available to them to
mitigate that risk. "Our first question to them is "What is it you're trying to achieve? And
what are your financial concerns about getting there?" Once we know the answer to that
question, and their goals have been established, we customize appropriate strategies to
suit their "risk profiles", "time horizons" and objectives to help them reach those goals while
minimizing the risks to their portfolios.
The Market
According to a 2006 leading-edge research study conducted by McKinsey & Company, which
was based on a national survey of 3,086 people aged 40-75; consumers' increasingly declining
confidence in traditional financial institutions is translating into many of them actively looking at
other alternatives such as non-traditional independent financial advisors.
The survey concluded that while consumers' anxiety around the financial risks in retirement are
rising rapidly, the majority hold some serious misconceptions that are jeopardizing their future
living standards in retirement. In particular, pre-retirees are vastly overestimating the
likelihood of working longer to make up for savings shortfalls and significantly underestimating
their probable retirement expenses.
The McKinsey research also uncovered a widespread belief among consumers that financial
advisors are primarily interested in "pushing products", as opposed to providing unbiased
retirement advice, and are placing their own compensation objectives above the interests of
their clients. While these results were similar across almost all channels, one notable exception
to the pervasive sentiment of consumer skepticism occurred within the independent financial
advisor channel. Here, retirees and pre-retirees alike claimed to be receiving a significantly
higher level of retirement advice than consumers utilizing any other channel. At the same time
the independent financial advisors' scored the highest marks along such key customer
satisfaction dimensions as product knowledge and overall advice capabilities.
The retirement market was at that time a $66 billion dollar market and expected to grow by
nearly 10% a year for the next decade. Eventually, this market is projected to grow to over
$158 billion by 2012, the year when those born at the peak of the baby boom turn 55.
Driving this growth is a demographic shift unprecedented in modern U.S. history. The retiree
segments (pre-retirees, people transitioning into retirement, and full retirees) will far outstrip
other segments in growth over the next 15 years, swelling by 36 million to over 100
million people. This will result in one of the most significant "money in motion" events ever in
personal financial services, unleashing over $1 trillion dollars of assets annually within the next
decade.
A more recent 2008 study conducted by Ernst & Young LLP on behalf of Americans for Secure
Retirement coalition stated that almost three out of five new middle-class retirees will outlive
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9. Covenant Financial Advisors, LLC
their financial resources if they attempt to maintain their pre-retirement standard of living. The
study went on to conclude that due to a lack of proper planning, over 42% of women in the
workforce today will be forced to live below the poverty level in retirement.
This study reinforces what many already know - "retirement security" has long been a major
concern for working women. Women generally earn less than their male counterparts and
therefore have less to save. Additionally, they live longer, are often primary caregivers
spending less time in the workforce to accumulate Social Security benefits and participate in
employer-based retirement plan.
The sum of these findings is this; there is a serious disconnect between the dreams and
expectations of working Americans for a secure retirement and the reality of their current
preparedness. As an independent financial advisory firm, Covenant Financial Advisors is not
only properly positioned but uniquely qualified to help restore consumer confidence in financial
advisors that consider the best interests of their clients first. While at the same time, leading
the mission of getting more Americans to take control of their financial futures by being more
educated, more involved, and more prepared for their retirements today.
Financial Path To Success
The financial projections for this 2010 business plan are solidly based on past performance.
The firm is entering its 4th year of operations. We have taken actual P&L revenue and expense
numbers from the past three years and incorporated them into our 2010 forecast. We've also
developed a detailed marketing plan which shows how each new dollar of capital will be
allocated to support the business plan and grow the firm.
Past experience and the mentorship of other successful advisors has brought us to the
conclusion that hosting educational seminars for the public will offer the firm the best return on
each investment dollar. Hence, the $50,000 in new capital will for the first time allow us
to allocate significant marketing dollars to acquiring new clients through educational seminars.
We will also do specialized marketing in and around events that target women and golfers.
We have been profitable in this venture since year 1. Profitability is not the issue. We simple
need the funds to get out and reach the people with our story. I have no doubts that we would
be able to obtain profitability on any new cash flow within the prescribed 90 day window even
using fairly conservative assumptions and revenue projections.
In summary, in exchange for $50,000 in capital through equity infusion I am willing offer a
25% equity stake in the firm. I would like a 5 year buy back option on that offer, but that
would be negotiable. The acquisition of this capital is critical to the success of this business
plan and this firm and is thus the number one priority of management.
Once we’re up and running there will be no stopping us; all we require is a hand-up to get
started. Covenant Financial Advisors will flourish in a financial services industry that needs a
shot of integrity and a little more diversity wouldn’t hurt either.
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10. Covenant Financial Advisors, LLC
Chart: Highlights
Highlights
$400,000
$360,000
$320,000
$280,000
$240,000 Sales
$200,000 Gross Margin
$160,000 Profit Before Interest and Taxes
$120,000
$80,000
$40,000
$0
FY 2011 FY 2012 FY 2013
1.1 Company Summary
Covenant Financial Advisors is a faith-based financial consulting firm specializing in retirement
counseling focused on women, pre-retirees, retirees and small business owners. Our faith and
trust in God and our responsibilities to our clients are our top priorities at all times. Rick
Lindsey, our president, has been helping clients navigate through their retirement planning
since 2003. While serving all of Texas, our primary offices are located in Plano, Texas.
We are proud to be a completely independent financial consulting firm serving all of Texas. We
are specialists in assisting our clients in understanding the importance of integrating social
security, Medicare and tax planning into their retirement strategies. We then develop and
implement customized investment, savings, and insurance strategies that provide real-time
solutions with regard to the smartest means of income distribution and legacy generation.
As an independent financial services firm we are able to offer our clients a wide assortment of
products and services. We are first, retirement counselors which enable us to charge for
consulting fees to clients only looking for advice or a second opinion. We are also insurance
brokers, already appointed with over a dozen top-rated insurance carriers. Those relationships
allow us to offer life insurance, health insurance, long-term care insurance, and Medicare
supplemental insurance for commission payments when appropriate for our clients needs. And
lastly, we are also experienced investment advisors which allow us to actively manage
investment accounts within the stock market on a fee basis.
Primarily, as retirement counselors, we guide our clients through the maze of entitlement
programs, investments and savings options available to them with education, patience and
integrity. Our main focus is to enable our clients with the knowledge to effectively manage
their financial resources to last throughout their retirement years; ensuring that they always
have more than one stable source of income to rely on. And hopefully, with our help, they will
never face a financial situation for which they are unprepared.
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11. Covenant Financial Advisors, LLC
2.0 Products and Services
Covenant Financial Advisors services clients all over the state of Texas. We develop,
implement and monitor retirement portfolios utilizing the following products and services:
• Retirement Counseling
• Social Security & Medicare Planning
• Income Structure & Distribution
• Medicare Supplemental Plans
• Managed Money Accounts
• Fixed and Indexed Annuities
• Life, Disability, and Long-term Care Insurance
While developing a personal risk assessment, we walk each client through a step-by-step
process that helps them truly understand their risks and the options available to them to
mitigate that risk. "Our first question to them is "What is it you're trying to achieve? And what
are your financial concerns about getting there?" Once we know the answer to that question,
and their goals have been established, we customize appropriate strategies to suit their "risk
profiles", "time horizons" and objectives to help them reach those goals while minimizing the
risks to their portfolios.
The end result is that they feel more confident in their financial decisions. We want our clients
to be able to sleep at night without having to worry about their retirement resources being
eaten away by another severe downturn in the stockmarket. Once their investments and
retirement strategies are in place we schedule regular appointments to monitor our customized
strategy and reevaluate any decisions that may wander off course from our client's
objectives. The process of properly managing someone's retirement portfolio will always be
dynamic and ever changing.
The last part of the process is to sit down with our clients and talk through the proper
application of estate planning tools such as power of attorney, wills, trusts, endowments,
charitable giving strategies and other proven estate planning strategies. This is to further insure
that we have left nothing to chance when it comes to what they want to achieve with their
money.
3.0 Market Analysis Summary
According to 2006 leading-edge research study conducted by McKinsey & Company, which was
based on a national survey of 3,086 people aged 40-75; consumers' increasingly declining
confidence in traditional financial institutions is translating into many of them actively looking at
other alternatives such as independent advisors.
The survey concluded that while consumers' anxiety around the financial risks in retirement are
rising rapidly, the majority hold some serious misconceptions that are jeopardizing their future
living standards in retirement. In particular, pre-retirees are vastly overestimating the
likelihood of working longer to make up for savings shortfalls and significantly underestimating
their probable retirement expenses.
The McKinsey study went on to say that, the combination of consumers' high anxiety levels and
serious misconceptions around retirement would seem to create the ideal opportunity for
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12. Covenant Financial Advisors, LLC
financial services firms to attract new clients. But in the minds of consumers, many of the
established financial services channels are falling well short of attaining the confidence
of potential new clients.
The McKinsey research uncovered a widespread belief among consumers that financial advisors
are primarily interested in "pushing products", as opposed to providing unbiased retirement
advice, and are placing their own compensation objectives above the interests of their clients.
While these results were similar across almost all channels, one notable exception to the
pervasive sentiment of consumer skepticism occurred within the independent financial
advisor channel.
Here, retirees and pre-retirees alike claimed to be receiving a significantly higher level of
retirement advice than consumers utilizing any other channel. At the same time the
independent financial advisors' scored the highest marks along such key customer satisfaction
dimensions as product knowledge and overall advice capabilities.
The retirement market was at that time a $66 billion dollar market and expected to grow by
nearly 10% a year for the next decade. Eventually, this market is projected to grow to over
$158 billion by 2012, the year when those born at the peak of the baby boom turn 55.
Driving this growth is a demographic shift unprecedented in modern U.S. history.
The retiree segments (pre-retirees, people transitioning into retirement, and full retirees) will
far outstrip other segments in growth over the next 15 years, swelling by 36 million to over 100
million people. This will result in one of the most significant "money in motion" events ever in
personal financial services, unleashing over $1 trillion dollars of assets annually within the next
decade.
A more recent 2008 study conducted by Ernst & Young LLP on behalf of Americans for Secure
Retirement coalition stated that almost three out of five new middle-class retirees will outlive
their financial resources if they attempt to maintain their pre-retirement standard of living. The
study went on to conclude that due to a lack of proper planning, over 42% of women in the
workforce today will be forced to live below the poverty level in retirement.
This study reinforces what we already know - "retirement security" has long been a major
concern for working women. Women generally earn less than their male counterparts and
therefore have less to save. Additionally, they live longer, are often primary caregivers
spending less time in the workforce to accumulate Social Security benefits and participate in
employer-based retirement plan.
The average 401k fund balance dropped 31 percent to $47,500 at the end of March 2009 from
$69,200 at the end of 2007, according to a Fidelity Investments review of 11 million accounts it
manages. According to a January 8th, 2010 article in (Bloomberg) President Obama's
administration is weighing how the government can encourage workers to turn their savings
into guaranteed income streams following a collapse in retiree accounts when the stock market
plunged. There is "a tremendous amount of interest in the White House" in retirement-security
initiatives, according to Assistant Labor Secretary Phyllis C. Borzi.
The sum of these findings is this; there is a serious disconnect between the dreams and
expectations of working Americans for a secure retirement and the reality of their current
preparedness. As an independent financial advisory firm, Covenant Financial Advisors is not
only properly positioned but uniquely qualified to help restore consumer confidence in financial
advisors that consider the best interests of their clients first. While at the same time, leading
the mission of getting more Americans to take control of their financial futures by being more
educated, more involved, and more prepared for their retirements today.
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13. Covenant Financial Advisors, LLC
4.0 Strategy and Implementation Summary
In summary, retirees and pre-retirees are far less tolerant than their younger counterparts to a
financial advisor's lack of specialized skills and knowledge...at this stage, consumers tend to
become much more aware of the need for holistic retirement advice, including such specialized
elements as insurance, annuities, and tax planning.
To that end, Covenant Financial Advisors will separate itself from its competitors by superb
execution in four key areas:
Build a Relationship-Oriented Business
Build long-term relationships with our clients and their children. We want them to know that
Covenant Financial is here to help them through the difficult times of their lives. We want our
clients to appreciate the value of our relationship to the point that they truly trust us to help
them secure their future and the futures of their loved-ones.
Daily Emphasize Client Service as a Top Priority
We will never forget who we work for! Our only job is to take care of our clients. We answer
their phone calls promptly. We follow through on commitments. We don't promise things that
we can't deliver! We make ourselves available to them when they need us.
Focus on Our Target Markets
Covenant Financial Advisors are retirement planning specialists. We will focus our marketing
and services to our four target groups and become experts in the issues that affect them. Those
target groups are Women, Pre-retirees, Retirees, and Small Business Owners.
Differentiate and Deliver
It is not our goal to simply market better and sell more services than our competitors; the
primary mission of Covenant Financial Advisors is to deliver the highest quality of advice and
service to our clients. Therefore, we are committed to being the most knowledge-intensive,
service-oriented and client-centered retirement consulting firm that they will ever meet. We
will make a difference in the lives of our clients and in the communities we serve.
4.1 Competitive Edge
Once fully capitalized, there are several competitive advantages that will become tremendous
assets for Covenant Financial Advisors and provide the momentum to catapult it into the next
level of multi-million dollar financial services advisory firms.
1. Covenant Financial is a minority-owned business in an industry where they are
scarce. Providing financial guidance and advice for an underserved community with an ever-
expanding middle-class in need of trustworthy and reliable financial services professionals.
2. Covenant Financial is a faith-based firm with a solid reputation and firm relationships in the
Christian community of North Texas and surrounding areas.
3. Covenant Financial is a client-centered financial consulting firm and has developed the
reputation of a caring, service oriented consulting firm that puts the interests of its clients
first.
4. Covenant Financial is an independent financial services firm, with the back office support of
over 24 national marketing, insurance and investment organizations.
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14. Covenant Financial Advisors, LLC
5. Rick Lindsey, the president of Covenant Financial has solid relationships and referral ties to
the employee base of AT&T in Texas as a result of his 24 year career with the company.
6. Covenant has shown steady triple-digit growth since inception in 2007.
7. Covenant is developing new niche markets which include 401k advisory services for medical
services firms and female affinity organizations.
8. Covenant has worked hard to become experts in social security, medicare and medicare
supplemental insurance plans to more holistically assist in our clients retirement planning.
4.2 Marketing Strategy
Covenant Financial Advisors marketing strategy is simple and straightforward:
Focus on our niche markets women, pre-retirees, retirees and small business owners.
a. Work constantly on building a strong relationship business. We want to be seen as
the financial firm clients believe in, because so many of their friends already trust us.
b. Emphasize our strength which is always client-centered service first and foremost;
we answer calls and we get back to our clients with an answer.
c. Focus on our core specialty which is retirement consulting and all of the issues
surrounding it, including lifetime income, social security, medicare and legacy
planning.
4.3 Sales Strategy
At Covenant Financial Advisors our sales process is fairly simple and straightforward.
1. We meet prospective clients via seminars, referrals, client events, other sponsored events.
2. The first complimentary meeting is usually set within a week. This is strictly a meeting to
determine if we can help them and if there is a mutual feel that we can work together. This
is the meeting where I ask probing questions to find out what it is they are trying to achieve
and what their financial concerns are?
3. We also discuss compensation at this meeting so that the potential clients know exactly how
Covenant Financial Advisors is compensated for our services. From this point forward, our
consulting fees are $150.00 per hour, but may be waived if prospect becomes a client.
4. If we decide to move forward with the relationship, we set the next meeting within a week
and we ask them to bring in all pertinent financial information for us to review. Here we
delve a little deeper into their goals, risk tolerance, and time lines. We also discuss any
issues that might be unique to their situation now or in the foreseeable future.
5. Depending on the amount of material we have to analyze, the next meeting is set for 7 -10
days. At that time we lay out our findings, starting with the concerns that were most
important to them. We then illustrate how we would address the issues one by one until we
get them comfortable with the direction that their retirement is headed.
6. At that time, the clients have the option of adopting all or part of our recommendations and
becoming clients of Covenant Financial Advisors. Or they can choose to not become clients
at this time after which they would simply pay their consulting fee based on our hourly
consulting rates of $150.00 per hour for our services and be on their way.
4.4 Milestones
The following table lists important program milestones, with the dates, cities and budgets for
each. The milestone schedule indicates our emphasis this year on reaching more prospects
through dinner seminars.
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15. Covenant Financial Advisors, LLC
Each separate seminar requires extensive planning which includes being responsible for;
• work with mail house to design mailers
• setup and approve mass mailing schedules
• research city locations
• contracting dinner venues with access to private dining
• developing cost-effective menus
• testing audio-visual setup and backups
• pre-event qualification calls
• post-event appointments and follow-up calls
• and a host of other smaller details that must all be professionally managed, monitored, and
documented for use with future seminars and presentations.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager City
April Seminar 3/10/2010 4/6/2010 $4,000 Lindsey Desoto
April Seminar 3/10/2010 4/8/2010 $4,000 Lindsey Desoto
April Seminar 3/17/2010 4/20/2010 $4,000 Lindsey Arlington
April Seminar 3/17/2010 4/22/2010 $4,000 Lindsey Arlington
May Seminar 4/12/2010 5/4/2010 $4,000 Lindsey Mesquite
May Seminar 4/12/2010 5/4/2010 $4,000 Lindsey Mesquite
May Seminar 4/19/2010 5/18/2010 $4,000 Event Manager Keller
May Seminar 4/19/2010 5/20/2010 $4,000 Event Manager Keller
June Seminar 5/10/2010 6/1/2010 $4,000 Event Manager Addison
June Seminar 5/10/2010 6/3/2010 $4,000 Event Manager Addison
Totals $40,000
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16. Covenant Financial Advisors, LLC
Chart: Milestones
Milestones
April Seminar
April Seminar
April Seminar
April Seminar
May Seminar
May Seminar
May Seminar
May Seminar
June Seminar
June Seminar
Mar `10 Apr May
5.0 Management Summary
Rick Lindsey is the president and founder of Covenant Financial Advisors. Rick graduated with
honors from the University of Central Arkansas in Conway, Arkansas ('78) where he was also
recognized as a Presidential Scholar. He later earned his Masters Degree in Management from
Webster University in St. Louis, Missouri ('94). Before moving to the financial services industry
in 2002 Rick enjoyed a successful 24 year career with SBC Communications, now known as
AT&T.
After leaving AT&T Rick began his career in financial services with American Express as a
financial advisor. Over the next several years Rick continued his professional growth with
MetLife Insurance Co. and Wachovia Bank. Finally, in March of 2007, while feeling the urgent
call to make even a larger impact in his community, Rick stepped out in faith and established
Covenant Financial Advisors. Covenant Financial's mission is to become an invaluable
community partner while providing much needed financial support to the average investor.
Rick holds his Series 7 and Series 66 registrations and Group 1 insurance license in the state of
Texas. He has been working with individuals and businesses in North Texas for several years
and has extensive personal and professional experience in his speciality areas of retirement and
estate planning. Rick is also an active member of the Dallas chapter of the Society of Financial
Professionals.
Current plans are to hire an Event Manager to manage the seminar program and all client
appreciation events by the end of the 2nd quarter of this year. And a Relationship Manager to
handle day-to-day service and documentation processing by the end of the 4th quarter.
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17. Covenant Financial Advisors, LLC
6.0 Financial Plan
The financial projections for this 2010 business plan are solidly based on past performance.
The firm is entering its 4th year of operations. We have taken actual P&L revenue and expense
numbers from the past three years and incorporated them into our 2010 forecast.
Past experience has taught us that hosting educational seminars for the public offers the firm
the best return on investment dollars. Hence, the $50,000 in new capital will for the first time
allow us to allocate significant marketing dollars to acquiring new clients through educational
seminars. We will also do specialized marketing in and around events that target women and
golfers. We have no doubt that we will be profitable within 90 days if not sooner!
We approached the financial planning from an extremely conservative standpoint and based
those projections on actual historical results and achievable gross margins. Although our
projected 2010 net cash flow of $83,000 is directly related to our new capital investment; our
projected profit before interests and taxes is conservatively projected to grow by 25% in year
2 and another 20% in year 3 due to the expected expansion costs of a rapidly growing firm.
Also, our actual interest and tax rates will most likely be somewhat lower than the assumed
rates due to some of the tax benefits we will have access to after restructuring into a limited
liability corporation.
In summary, obtaining the $50,000 in capital through equity infusion or long-term loan is
critical to the success of this business plan and is the number one priority of current
management.
Table: Financials
Financials
FY 2011 FY 2012 FY 2013
Beginning Balance
Opening Balance Cash & Checking $0 $83,000 $148,000
Plus Money Received
New Investment $50,000 $0 $0
New Loans $0 $0 $0
Sales $220,000 $315,000 $385,000
Other $0 $0 $0
Subtotal Money Received $270,000 $315,000 $385,000
Less Money Spent
Direct Costs
Direct Cost of Sales $65,000 $72,000 $80,000
Other Costs of Sales $5,250 $13,500 $15,000
Normal Operating Expenses
Payroll and Payroll Taxes, Benefits, Etc. $50,000 $90,000 $120,000
Rent and Utilities $3,400 $6,000 $7,500
Sales and Marketing Expenses $3,950 $2,500 $4,000
Other Operating Expenses $3,900 $3,000 $4,500
Other Outflows
Payments of Taxes $46,000 $60,000 $75,000
Debt Payments $5,000 $0 $0
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18. Covenant Financial Advisors, LLC
Purchase of Assets $4,500 $3,000 $5,000
Other $0 $0 $0
Subtotal Money Spent $187,000 $250,000 $311,000
Ending Balance
Ending Balance Cash and Checking $83,000 $148,000 $222,000
Profit Before Interest and Taxes
Sales $220,000 $315,000 $385,000
Less Cost of Sales ($70,250) ($85,500) ($95,000)
Gross Margin $149,750 $229,500 $290,000
Less Operating Expenses ($61,250) ($101,500) ($136,000)
Profit Before Interest and Taxes $88,500 $128,000 $154,000
Net Cash Flow $83,000 $65,000 $74,000
Chart: Profit Monthly
Profit Monthly
$15,000
$12,000
$9,000
$6,000
$3,000 Profit Before Interest and Taxes
$0
($3,000)
($6,000)
($9,000)
Apr Aug Dec
Jun Oct Feb
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19. Covenant Financial Advisors, LLC
Chart: Profit Yearly
Profit Yearly
$160,000
$140,000
$120,000
$100,000
Profit Before Interest and Taxes
$80,000
$60,000
$40,000
$20,000
$0
FY 2011 FY 2012 FY 2013
Chart: Sales Monthly
Sales Monthly
$30,000
$27,000
$24,000
$21,000
$18,000
$15,000 Sales
$12,000
$9,000
$6,000
$3,000
$0
Mar May Jul Sep Nov Jan
Apr Jun Aug Oct Dec Feb
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20. Covenant Financial Advisors, LLC
Chart: Sales by Year
Sales by Year
$400,000
$360,000
$320,000
$280,000
$240,000
Sales
$200,000
$160,000
$120,000
$80,000
$40,000
$0
FY 2011 FY 2012 FY 2013
6.1 Projected Cash Flow
The proposed new capital investment of $50,000 is critical to the continued viability of
Covenant Financial Advisors. The lack of cash flow is the Achilles heel of any business.
Covenant Financial has enjoyed triple-digit growth over its first three years of existence. Our
growth has mainly been the result of a strong existing network at AT&T, great client service,
strong word of mouth referrals from our existing clients and a couple of dinner seminars
conducted in the 4th quarter of last year.
However, it has become painfully clear that if we are to have sustainable growth we have to
refine and execute a more consistent marketing strategy for 2010. Therefore, it became
imperative that Covenant Financial Advisors expands to add additional partner/investor.
This partner needed in order to secure additional equity to stabilize the operational cash flow of
the firm which will in turn fund its primary marketing strategy and allow for the continued
growth and development of new revenue streams. For a commitment of $50,000 the partner
will be offered a 25% equity in the firm. I would also like to include an option to buy back that
stake within 5 years at whatever is deemed to be a "fair-market" value at that time. All of
these terms are negotiable.
The sales and expense forecasts are based on real results of the past three years obtained with
very limited capital. The primary vehicle for acquiring new clients will be educational seminars
supported by mass mailings to specific regions of North Texas on a rotating basis. Experience
and research has shown that pre-retirees and retirees are unhappy with the traditional ways
their assets are currently being managed and are constantly looking for new ideas.
We at Covenant Financial Advisors believe that our "safe-alternatives" approach to growing and
preserving the wealth of our clients will go over well with a retiree population that is growing
increasingly aware of the dangers of outliving their resources and are unwilling to leave the
fates of their families vulnerable to the whims of the stock markets.
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21. Covenant Financial Advisors, LLC
The only thing that continues to keep this company from reaching its full potential is developing
and implementing an appropriate means of "getting the word out". We believe that conducting
monthly educational seminars across the Dallas/Fort Worth metroplex will do just that.
Thereby, propelling Covenant Financial Advisors into one of the elite financial services firms in
the country.
Chart: Cash
Cash
$90,000
$80,000
$70,000
$60,000
$50,000 Net Cash Flow
$40,000 Opening Balance Cash & Checking
$30,000
$20,000
$10,000
$0
Jul
Jun
Aug
Sep
Jan
Feb
Oct
Mar
Apr
May
Nov
Dec
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23. Appendix
Table: Financials
Financials
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Beginning Balance
Opening Balance Cash & Checking $0 $0 $6,000 $19,850 $33,400 $43,250 $53,100 $58,450 $68,800 $74,400 $79,200 $83,000 $83,000
Plus Money Received
New Investment $0 $20,000 $15,000 $15,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales $0 $5,000 $20,000 $20,000 $30,000 $30,000 $25,000 $30,000 $25,000 $20,000 $15,000 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Money Received $0 $25,000 $35,000 $35,000 $30,000 $30,000 $25,000 $30,000 $25,000 $20,000 $15,000 $0 $0
Less Money Spent
Direct Costs
Direct Cost of Sales $0 $5,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $4,000 $0 $0 $0
Other Costs of Sales $0 $0 $500 $1,000 $1,000 $1,000 $500 $500 $250 $250 $250 $0 $0
Normal Operating Expenses
Payroll and Payroll Taxes, Benefits, Etc. $0 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $0 $0
Rent and Utilities $0 $500 $500 $300 $300 $300 $300 $300 $300 $300 $300 $0 $0
Sales and Marketing Expenses $0 $2,500 $50 $50 $250 $250 $250 $250 $250 $50 $50 $0 $0
Other Operating Expenses $0 $3,000 $100 $100 $100 $100 $100 $100 $100 $100 $100 $0 $0
Other Outflows
Payments of Taxes $0 $1,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $0 $0
Debt Payments $0 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $0 $0
Purchase of Assets $0 $1,500 $1,500 $1,500 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Money Spent $0 $19,000 $21,150 $21,450 $20,150 $20,150 $19,650 $19,650 $19,400 $15,200 $11,200 $0 $0
Ending Balance
Ending Balance Cash and Checking $0 $6,000 $19,850 $33,400 $43,250 $53,100 $58,450 $68,800 $74,400 $79,200 $83,000 $83,000 $83,000
Profit Before Interest and Taxes
Sales $5,000 $20,000 $20,000 $30,000 $30,000 $25,000 $30,000 $25,000 $20,000 $15,000 $0 $0
Less Cost of Sales ($5,000) ($8,500) ($9,000) ($9,000) ($9,000) ($8,500) ($8,500) ($8,250) ($4,250) ($250) $0 $0
Gross Margin $0 $11,500 $11,000 $21,000 $21,000 $16,500 $21,500 $16,750 $15,750 $14,750 $0 $0
Less Operating Expenses ($11,000) ($5,650) ($5,450) ($5,650) ($5,650) ($5,650) ($5,650) ($5,650) ($5,450) ($5,450) $0 $0
Profit Before Interest and Taxes ($11,000) $5,850 $5,550 $15,350 $15,350 $10,850 $15,850 $11,100 $10,300 $9,300 $0 $0
Net Cash Flow $6,000 $13,850 $13,550 $9,850 $9,850 $5,350 $10,350 $5,600 $4,800 $3,800 $0 $0
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24. Appendix
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