The very first business plan we wrote. Ghosted by Leslie Grant in 2005. THis is the second revision. Note all of the detail about predictive placement and why we chose "Evening Economy" to begin with.

1. TEXXI
TRANSIT EXCHANGE FOR THE XXI CENTURY
THE TAXI YOU TEXTTM
AN ENERGY EFFICIENT TRANSPORT SYSTEM
www.texxi.com
Texxi Limited
Registered Office:
The Old Tavern, Market Square,
Petworth, West Sussex, GU28 0AH United Kingdom.
+44 (0) 0270 993 2324
+44 (0) 0845 127 5037
eric.masaba@texxi.com
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

2. 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.
1. Executive Summary 2
1.1. Objectives 2
1.2. Mission 2
2. Company Summary 2
2.1. Company Ownership 2
2.2. Company History 2
3. Services 2
4. Market Analysis Summary 2
4.1. Market Segmentation 2
4.2. Target Market Segment Strategy2
4.3. Competition and Buying Patterns 2
4.4. Service Business Analysis 2
5. Strategy and Implementation Summary 2
5.1. Competitive Edge 2
5.2. Milestones 2
5.3. Texxi Franchise Model 2
6. Management Summary 2
7. Financial Plan 2
7.1. Important Assumptions 2
7.2. Break-even Analysis 2
7.3. Projected Profit and Loss 2
7.4. Projected Cash Flow 2
7.5. Projected Balance Sheet 2
7.6. Business Ratios 2
1. Executive Summary
Road traffic congestion, parking congestion, CO2 emmissions, noise pollution and road rage
have all been created by high traffic levels. Improvements in public transport are frequently
claimed to be the best solution to reducing traffic levels. However, the private car is
unbeatable in terms of convenience, security and flexibility. Public transport is based on
fixed routes and fixed timetables.
Question: How can today's public transport be made more attractive so as to compete with
the private car?
Answer: By eliminating the pre-planning, waiting time, and inflexibility of the itinerary of
public transport.

3. It's 2 o'clock on a cold and damp winter's night and there are not many free taixs to be
found. All the revellers have had a great night out but other than walking for miles, how do
they get home quickly?
The police and local authorities are severely stretched and want to speed up the dispersion
of large groups at these peak times.
Question: How can clubbers get home quickly, safely and economically?
Answer: Texxi is the breakthrough that solves late night transport challenges.
Texxi is the breakthrough that solves transport problems and traffic congestion.
HOW IT WORKS
TM
TEXXI: The taxi you text
1
Customer
(N) texts
reservation
centre
Customer 2
texts CUSTOMER DATABASE Filters:
reservation Customer and location identified Texxi Groups
Customer 1
centre & order taken according to filters Customer Profiles (luxury vehicle, women only)
texts Loyalty schemes
reservation
centre
2
Customer texts for a taxi
Vehicle
details, time
The system optimises groups and routes based on & pick-up
Service Rules point texted
to Customer
TRIP COMBINING VEHICLE SELECTION
Texxi chooses the best vehicle
Texxi automatically combines
based on cost, fuel efficiency,
new trip with existing route
driver rankings Customer
where feasible
confirms
3
acceptance by
Trip Optimisation text
DISPATCH
New or updated route Legend
sent to vehicle's
satellite navigation
system Texxi
Customer
Trip Quality,
Billing and Productivity,
Administration Customer and
Performance Vehicle Ratings
Dispatch and Administration Systems
THE 7 MODES OF TEXXI
1. Evening Economy: Clubbers and pub-goers travel home quickly and safely. Single
women a key market for Texxi.
2. Corporate: Virtual Private Travel, enabling executives and clients to have a luxury
fleet at their service
3. Commuter: ride-sharing "hub and spoke" transport between a central transit point
(train station) and a business district
4. Shopping: on-the-fly, door-to-door budget travel from supermarkets or shopping
centres
5. School Run: Virtual Private Travel, enabling children to travel together to
their school
6. Large Event: transport solutions for large scale festivals and events, particularly

4. where parking is limited
7. Tourist: economical transit beyond fixed routes with optional Language Operator
filter
1.1. Objectives
Texxi's objective is to become the branded Demand Responsive Transit (DRT) broker of
choice in the world.
Following the successful trial of Texxi in Liverpool, England, the objectives for the next
three years of operation include:
1. securing additional financing of $10 million for systems development and
capacity expansion, network and operation support, TV advertisement
production costs, advertising and marketing costs, and franchise business
development
2. having 2,500 vehicles operating under the "Night" mode schemes globally
3. operating three franchise agreements in each of three countries
4. Negotiating branding agreements with at least one mobile telephone
company, one train operator, and one automobile company
1.2. Mission
The mission of Texxi is to provide public transport without fixed routes and timetables.
Texxi aims to get people out of their private cars and into shared vehicle services for
the majority of their journeys. This will reduce traffic jams, ease parking congestion and
reduce air polution and greenhouse gas emissions without governments resorting to
large infrastructure transport projects. Texxi's mission is also to provide a safe, reliable,
community-oriented, inclusive mode of transport for senior citizens, young adults, and
late night travellers who otherwise do not have easy access to flexible, safe and
economical transport.
2. Company Summary
Texxi is a UK-registered company which provides Demand Responsive Transit (DRT)
brokerage systems, enabling ride-sharing on-the-fly using users' mobile phones.
Using his experience of credit contagion algorithms in investment banking, the founder
(one of the founders???) developed a system to combine people travelling at approximately
the same time and direction to a single vehicle. Texxi is a radical departure from existing
ride-sharing schemes such as "dial-a-ride", "paratransit" and "airport shuttle" services which
are booked up by telephone usually hours or days in advance. With the advent of mobile
(cell) phones, text (SMS) facilities, Global Postioning Systems (GPS) and in-car satellite
navigation systems, Texxi's real-time text-based DRT Brokerage System is the breakthrough
solution to transport problems and traffic congestion.
2.1. Company Ownership
Texxi was founded in March 2005 as a registered Limited Company with registered
offices in Petworth, West Sussex, England and its first operations in Liverpool. It is

5. owned by the founders, its principal investors and principal operators.
2.2. Company History
The idea for Texxi came about several years ago when the founder (one of the
founders???) realised that he was paying $40 a day for taxis from the train station to his
office, despite several other people he knew working in the same vicinity and going to
work at the same time. As this annoyance grew, his thought crystallised on the design
of a system to make use of these unheeded correlative effects and partnered this with
his knowledge of information and mobile (cell) phone technology.
Having built the foundations of the Texxi DRT Brokerage System, Texxi ran a trial in
Liverpool, England between January and September 2006.
A Demand Mapping Exercise was conducted to assess the demographics and
opportunites for a Texxi service (see XXXX for more on Demand Mapping Exercises).
"Evening Economy" mode was chosen, with the target market being 18-30 year olds,
who go clubbing on a Friday and Saturday night. The existing Liverpool taxi
infrastructure was not meeting the 100,000-passenger midnight to 4am demand,
despite there being 1500 "black cabs" and 20,000 private hire vehicles in Liverpool. It
was not uncommon to see young people making their own way home alone on foot at
least 2 miles (and in some cases 15 miles).
Negotiations were held with the local council and the police to get permission for trial
pick-up points and XXX taxi drivers were engaged. A marketing plan was implemented
(radio advertising, in-club media, ground force marketing, Texxi website videos, etc).
Finally, once the service had been operating for 3 months, performance (revenue
passenger mile, average time to pick-up, on-time performance, load factor, average
time to pick-up, etc) and costs (per passenger mile, per trip, etc) were measured. So far
the trial has provided an experience of:
· confirming robustness of hardward and software systems
· systems implementation: text processing, driver alerts, administration and
billing, Texxi Groups
· level of interest from the local council (low) and the police (high)
· negotiations with the local council, police, taxi firms, clubs, mobile phone
service providers
· marketing: local radio, nightclub advertising, street marketers
· pricing bands
· taxi driver education
· getting people to text "to hire", rather than using text only "to communicate"
· the degree of resistance to ride-sharing
· functionality of user "Groups" for ride-sharing
It seemed that:
· Most people would not try something new of their own accord--leaders,
demonstrators and queue marshals were needed.
· Most people were naturally incurious--Texxi's message would have to appeal
to base human instincts of fear, greed or sex.

6. · Texxi had to compete with many other media messages--as an
innovative service Texxi would need edgey marketing, employing viral
marketing methods.
FINANCIAL FACTS ETC
Following the successful trial in Liverpool, Texxi is now pursuing opportunities to set
up operations in other cities in the U.K. and other countries. Texxi is developing a
franchise model for rollout as soon as possible.
Past Performance
FY 2003 FY 2004 FY 2005
Sales £0 £0 £0
Gross Margin £0 £0 £0
Gross Margin % 0.00% 0.00% 0.00%
Operating Expenses £0 £0 £0
Balance Sheet
FY 2003 FY 2004 FY 2005
Current Assets
Cash £0 £0 £0
Other Current Assets £0 £0 £0
Total Current Assets £0 £0 £0
Fixed Assets
Capital Assets £0 £0 £0
Accumulated Depreciation £0 £0 £0
Total Fixed Assets £0 £0 £0
Total Assets £0 £0 £0
Current Liabilities
Accounts Payable £0 £0 £0
Current Borrowing £0 £0 £0
Other Current Liabilities £0 £0 £0
(interest free)
Total Current Liabilities £0 £0 £0
Fixed Liabilities £0 £0 £0
Total Liabilities £0 £0 £0
Paid-in Capital £0 £0 £0
Retained Earnings £0 £0 £0
Earnings £0 £0 £0
Total Capital £0 £0 £0
Total Capital and Liabilities £0 £0 £0
Other Inputs
Payment Days 0 0 0

7. Past Performance
£1
£1
£1
£1
£1 Sales
£1 Gross
£0 Net
£0
£0
£0
£0
FY 2003 FY 2004 FY 2005
3. Services
HOW IT WORKS
Users text (SMS) their required destination postcode to Texxi. The Texxi comuter system
searches its database for a nearby vehicle whose current itinerary is compatible with the
passenger's itinerary. Within two minutes the passenger is sent a text with the driver's
details and boarding point. If the passenger texts back "YES", then another text will be sent
to the passenger confirming the arrival of the vehicle (less than 15 minutes). Once the new
passenger is picked up and pays (cash or Texxi credit), the driver is directed along the
custom route by GPS in-car satellite navigation technology. In essence, a Texxi is likea
regular bus, but with a completely flexible, computer-generated route weaving through a
sequence of passenger points, rather than along a rigid bus route with fixed stops. Users
can create a Texxi Group, an invitation-only online community, designed for those who
already have strong connections with one another and choose to travel, as a first choice,
with each other.
THE 7 MODES OF TEXXI:
Evening Economy
This scheme provides passengers with shared transport home from bars, restaurants, and
nightclubs when transport resources are limited. This scheme usually runs on Friday and
Saturday nights, between 10:30pm and 4:00am. This service gets people home more quickly
by using vehicles more efficiently. Passengers save money compared to a normal taxi (£5
fare versus £9 fare) and at the same time taxi drivers earn more per journey (e.g. £25 versus
£9). Importantly, this scheme provides a safe journey home. In Liverpool, it has not been
uncommon to see young women making their way alone on foot at least 2 miles before
they can get transport. "NightSafety" groups and the police support this mode because it
reduces the numbers of evening-goers milling around the city centre unable to return
home promptly.

8. Corporate
This scheme allows large companies to provide transport to employees at a reduced cost by
combining trips. Staff can rideshare on demand as little as 15 minutes beforehand. For
corporations with multiple sites, "Corporate" mode can move employees quickly and
flexibly between locations.
Additionally, under "Corporate" mode, a company can contract for a certain minimum
standard of vehicle to be used and a Virtual Private Travel (VPT) mask can be applied to the
mode, enabling executives and their clients to have a luxury fleet at their service.
Companies with nightshift workers or with employees in the bar and restaurant industry
can provide a safe and reliable way home for their workers, making them an attractive
employer to work for.
A combination of Texxi and public transport (trains, flights, etc) can be formed to create a
trip chain by aligning itineraries and timetables.
Commuter
This scheme provides "hub and spoke" transport between a central transit point (e.g. train
station) and a business district, or between a catchment area (e.g. a suburban pick-up point)
and a transit point (e.g. a train station). A combination of Texxi and public transport (trains,
flights, etc) can be formed to create a trip chain by aligning itineraries and timetables.
Shopping
This scheme provides people who live far from a supermarket or shopping centre with
transport without relying on others or on public transport. This helps to eleviate social
excusion by providing a flexible service that is cheaper than a regular taxi and by providing
a "door to door" service not available from a bus service. Local councils, or indeed shopping
centre operators, might licence this mode.
School Run
This scheme allows children from a particular area to all travel together to their school. In
reverse mode, this scheme allows children with varying aftershool activities to text for a ride
home on demand in as little as 15 minutes beforehand. Parents' Associations or school
boards can contract for a certain minimum standard of vehicle (e.g. Mercedes Viano/Renault
Espace) to be used and a Virtual Private Travel (VPT) mask can be applied to the mode,
enabling children to travel in a "virtual school bus".
Large Event
This scheme provides organisers of large scale festivals and events (e.g. Creamfields, Global
Gathering, Glastonbury, V2, Gyndebourne, Silverstone, Henley, Cowes, Cartier Polo, British
Open, etc) with a transport solution. This mode eleviates significant headaches for local and
regional police and provides a solution for the young (and less affluent) who populate the
raves and festivals. A fun way to travel would be a Volkswagen Type 2 as a festival
commuter vehicle. Even better would be one running on sunflower oil of some other

9. renewable energy.
Tourist
This scheme provides economical transit beyond fixed routes and can include a Language
Operator. This allows visitors to a city to text for a taxi driver who speaks their language.
Even if the driver is not a great conversationalist, the basic greetings can make all the
difference to tourists. In many capital cities taxi drivers oftern double as tour guides,
offering for a fixed fee to drive tourists around the city's landmarks but with no "hop-on,
hop-off" option. And many cities have "open-top double decker" tour buses but these
services run to a fixed route. "Tourist" mode provides the hop-on hop-off flexibility and
economy of the city tour bus, plus it gives the freedom to explore off the beaten path that a
regular taxi provides.
4. Market Analysis Summary
Texxi is faced with the exciting opportunity to be the first-mover in the DRT market using
mobile technology. Solutions to the problems of traffic congestion and CO2 emissions are
in high demand. Texxi is particularly attractive as it doesn't require any investment in
transport infrastructures. Market testing of the Texxi DRT Brokerage Service has been
successfully trialled for 6 months in Liverpool, England. Interest has already been expressed
by several other local councils in the UK. Currently, expressions of interest are being
pursued in Australia, Hong Kong, China and the USA (California).
4.1. Market Segmentation
Texxi's Total Available Market is the sum of passengers who travel by road. The market
segment that Texxi will focus on are those passengers traveling within urban or
suburban areas (min. pop. density 2500/km2) because vehicle sharing needs a critical
mass of passengers and vehicle density (Texxi vehicles 6/km2) to operate effectively.
Texxi is not restricted to journeys within city limits; inter-city operation are practicable.
However, Texxi's early development will focus on travellers in conurban areas.
Initially, Texxi is focusing on the market segment of late-night travellers in cities with a
population of 1 million or more. By the end of the three year projections, Texxi expects
to be serving all "7 Modes" (Evening Economy, Corporate, Commuter, School Runs,
Shopping, Tourist, and Large Events) either directly or via franchise businesses.
4.2. Target Market Segment Strategy
Texxi's initial focus on late-night travellers will include pub-goers at "closing time" and
18-30 year old clubbers. Texxi will particularly target single women travellers for whom
safety is a key concern.
GRAPH OF DEMAND ACROSS 10:30pm to 4am needed

10. The 18-30 year old segment are savvy users of mobile (cell) phone technology and
mobile phone ownership is high among this group. They are early adopters of new
technologies and services: from blogging, downloading music, to rating videos on
YouTube, etc. These young people are relatively cash-poor but spend a large
proportion of their disposible income on their nights out. They normally walk home,
take a taxi or have a designated driver. They readily form overlapping social networks
and can be open and flexible about who they travel with within those networks. Most
say that they have experienced the frustration of getting split off from their group on a
night out which leads to problems getting home.
MARKETING STRATEGY
Market Segment Characteristic Texxi Advantage
high mobile (cell) phone ownership Texxi operates solely by mobile text (SMS)
experienced text (SMS) users Texxi operates solely by text (SMS)
Early adopters Texxi breaks the travel mold
disposable income spent on nights out willing to pay taxi-like prices
danger of walking home alone, especially women Texxi is safe
have overlapping social groups create Texxi Groups
taxi users cheaper than a taxi
spontaneity real-time booking
Texxi Group "text to all in group" when group
grouping to go home like herding cats ride ready
used to queuing for taxi on-the-fly availability
designated drivers no need to drive or park
4.3. Competition and Buying Patterns
Depending on which of the 7 Texxi modes are being compared, the competition is: car,
taxi and/or bus
Customers choose between these alternatives based on convenience and price.
Factors that makes the most difference are:
· trusted sharing: getting into a vehicle with trusted passengers, through Texxi
Groups
· speed of response: pick-up time of 15 minutes or less
· speed of journey: a door-to-door journey that is no more that one and a half
times the length of time taken in a car or unshared taxi. (Note Department of
Transport statistics show that for truips less than 25 miles, the door-to-door
journey time by bus or train is twice as slow as a car.)
· cost: less than cost of private car plus parking or cost of unshared taxi
4.4. Service Business Analysis
COMPILE STATISTICS ABOUT TAXI REVENUE (PER HOUR OR PER MONTH). SHOW HOW
MUCH HIGHER THE MARGINS FOR TEXXI DRIVERS ARE.
5. Strategy and Implementation Summary

11. DEMAND MAPPING EXERCISE
Whilst there are numerous quality data gathering exercises and studies undertaken to make
decisions about transport requirements for any given area, there is not yet any analysis that
extends to a DRT scheme. Ensuring that Texxi is applied in the best possible way starts with
a client paying for a Texxi Demand Mapping Exercise (DME) in the relevant urban area. The
DME will confirm which modes of Texxi are relevant to the area and establish the basis for
implementation of the scheme, including:
· the fare structure
· initial location of meeting/muster points
· quantity and hours of drivers needed
Scope of data gather includes:
· volumes, flow and clusters of people, hour by hour (real-time footfall)
· existing transport capabilities, vehicle sizes, disability coverage and routes
· existing bus stops and taxi ranks
· existing bus and taxi passenger numbers
· current taxi and private hire fares from centre to postcode districts
· parking facilities and pricing
· key destinations (businesses, clubs, theatres, sports facilities, train stations, etc)
· policing and transport initiatives
· existing social networking
· media survey (local/regional newspapers, radio stations,etc) and demographics
· economic survey (disposable income by age and area)
IMPLEMENTATION
5.1. Competitive Edge
The Texxi business is designed as a brokerage system. Texxi does not own the vehicles,
navigation systems or mobile phones that are used in order for Texxi transit to take
place. In almost all cases the vehicles, navigation systems and mobile phones are all
already owned by passenger and Texxi partners. It is a very light business model with
franchise scalability. As with all brokerage business Texxi is reliant on network effects
to grow and compete. The costing for the yearly licence has been worked out to be
about 1/20th of the cost to a council/organisation of supplying the infrastructure of
equivalent capacity. There are no techonolgical constraints on where and how Texxi
operates. With a minimum of manpower Texxi can serve 100 cities almost as effectively
as it can serve 10 locales.
DESCRIBE OR HINT AT PROPRIETARY ALGORYTHMS AND INCREMENTAL CODING
METHODOLOGY.
DESCRIBE PATENT PENDING.

12. One of Texxi's competitive advantages in the UK is simply having the UK phone
number 83994 for texting, which spells TEXXI on the user's phone, making it easy to
remember.
"Texxi Groups", where passengers travel with people they know, creates barriers to
entry.
Texxi can maintain and develop its value over time by developing additional
innovations:
Texxi Predictive Broking": Text (SMS) users ahead of them needing a vehicle based on
their itinerary histories (with opt-in consent); place vehicles in locations ahead of
demand.
"Texxi-tell": inform loved ones when passenger boards and alights from transport
vehicles; tell users when Texxi Group of friends are going in case use wants to join in
(with opt-in consent).
"Texxi Time-Domain Transit Maps": Manchester may be 30 miles away from Liverpool
in the "spatial domain", but is further away in "time domain" at 08:00-10:00 than at
22:00 - 06:00.
Texxi Dynamic Parking Solutions: car drivers check ahead and pre-book parking;
councils create temporary car parks or dynamic parking zones and allow parking
wardens to check enforcement with hand-held cameras (existing Texxi application
written).
5.2. Milestones
The Texxi team has established some basic milestones to keep the overall business
plan priorities in place. Responsibility for implementation falls on the shoulders of Eric
Masaba and Matthew Burden. By way of explanation, Texxi has operated the "one-to-
many" transit points system in Liverpool, and equally "one-to-one" transit (train station
to event drop-off) is obviously a subset of that system and therefore doable. It will be
one of Texxi's milestones to trial the "many-to-one" transit point system to see if this is
feasible, e.g. how operations are effected when passengers say they are ready to be
picked up and they are not.
Milestones
Milestone Start Date End Date Budget Manager Departme
nt
Liverpool "Evening 1/1/2006 1/9/2006 £0 Eric XXX
Economy" Pilot Masabe
Secure $10 million financing 1/11/2006 1/3/2007 £0 ABC XXX
2nd UK city with "Evening 1/1/2007 1/3/2007 £0 ABC XXX
Economy" started
Trial of "many-to-one" point 1/1/2007 1/11/2007 £0 ABC XXX
transport
1st non-UK operation 1/1/2007 1/11/2007 £0 ABC XXX

13. 1st multi-mode franchisee 1/1/2008 1/6/2008 £0 ABC XXX
1st country master franchise 1/6/2008 1/12/2008 £0 ABC XXX
Totals £0
5.3. Texxi Franchise Model
FRANCHISE MODEL
FRANCHISE STRUCTURE
FRANCHISE FEES AND OUTLAYS
6. Management Summary
Our company philosophy is based on mutual respect for all contributions made by our
founders, investors, consultants, and employees without regard to the position held in the
company. The initial management team depends on the founders themselves. As we grow,
we will take on the following staff: sales, marketing,.....
MANAGEMENT SUMMARY and CREDENTIALS
Founders
Management
Advisors
Boards
7. Financial Plan
The following sections will detail important financial information.
REVENUE MODEL AND PRICING
1) INDIVIDUAL OPERATION (like revenue model on website)

14. 2) FRANCHISE
3) WHOLE OF TEXXI (for investors)
7.1. Important Assumptions
The following table highlights some of the important financial assumptions for TEXXI.
General Assumptions
FY 2006 FY 2007 FY 2008
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0
7.2. Break-even Analysis
Explain the break-even assumptions from the Break-even Analysis table and chart that
will normally print right after this topic. Include whatever detail you think is
appropriate.
You might also cover the implications of the break-even. For a start-up company, you
should compare the break-even point with your sales prospects. For an ongoing
company, the break-even analysis should show that you are running comfortably
above the break-even point.
For example:
The Break-even Analysis indicates that TEXXI must have $19,500 in revenue to break
even.
Break-even Analysis
Monthly Revenue Break-even £15,131
Assumptions:
Average Percent Variable Cost 20%
Estimated Monthly Fixed Cost £12,105
Break-even Analysis

15. £15,000
£10,000
£5,000
£0
(£5,000)
(£10,000)
(£15,000)
£0 £6,000 £12,000 £18,000 £24,000 £30,000
Monthly break-even point
Break-even point = where line intersects with 0
7.3. Projected Profit and Loss
The following table will indicate projected profit and loss.
Pro Forma Profit and Loss
FY 2006 FY 2007 FY 2008
Sales £168,824 £282,759 £319,748
Direct Cost of Sales £33,765 £56,552 £63,950
Other £0 £0 £0
------------ ------------ ------------
Total Cost of Sales £33,765 £56,552 £63,950
Gross Margin £135,059 £226,207 £255,798
Gross Margin % 80.00% 80.00% 80.00%
Expenses
Payroll £111,700 £138,900 £138,900
Sales and Marketing and £3,100 £3,600 £3,600
Other Expenses
Depreciation £504 £498 £498
Web site maintenance £600 £600 £600
Utilities £1,200 £1,200 £1,200
Insurance £5,400 £5,400 £5,400
Rent £6,000 £0 £0
Payroll Taxes £16,755 £20,835 £20,835
Other £0 £0 £0
------------ ------------ ------------
Total Operating Expenses £145,259 £171,033 £171,033
Profit Before Interest and (£10,200) £55,174 £84,765
Taxes
EBITDA (£9,696) £55,672 £85,263

16. Interest Expense £0 £0 £0
Taxes Incurred £0 £13,794 £21,545
Net Profit (£10,200) £41,381 £63,221
Net Profit/Sales -6.04% 14.63% 19.77%
7.4. Projected Cash Flow
The following chart and table will indicate projected cash flow.
Pro Forma Cash Flow
FY 2006 FY 2007 FY 2008
Cash Received
Cash from Operations
Cash Sales £168,824 £282,759 £319,748
Subtotal Cash from £168,824 £282,759 £319,748
Operations
Additional Cash Received
VAT Received (Output Tax) £29,544 £49,483 £55,956
HMRC VAT Repayments £204 £0 £0
New Current Borrowing £0 £0 £0
New Other Liabilities (interest- £0 £0 £0
free)
New Fixed Liabilities £0 £0 £0
Sales of Other Current Assets £0 £0 £0
Sales of Fixed Assets £0 £0 £0
New Investment Received £0 £0 £0
Subtotal Cash Received £198,572 £332,242 £375,704
Expenditures FY 2006 FY 2007 FY 2008
Expenditures from Operations
Cash Spending £111,700 £138,900 £138,900
Bill Payments £57,893 £102,525 £115,884
Subtotal Spent on Operations £169,593 £241,425 £254,784
Additional Cash Spent
VAT Paid Out (Input Tax) £10,285 £13,922 £15,216
HMRC VAT Payments £12,362 £42,663 £40,739
Principal Repayment of £0 £0 £0
Current Borrowing
Other Liabilities Principal £0 £0 £0
Repayment
Fixed Liabilities Principal £0 £0 £0
Repayment
Purchase Other Current Assets £0 £0 £0
Purchase Fixed Assets £0 £0 £0
Dividends £0 £0 £0
Subtotal Cash Spent £192,239 £298,010 £310,740
Net Cash Flow £6,333 £34,232 £64,964
Cash Balance £6,333 £40,565 £105,529

17. Cash
£15,000
£10,000
£5,000
£0
(£5,000)
Net Cash Flow
(£10,000) Cash Balance
(£15,000)
(£20,000)
(£25,000)
(£30,000)
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
7.5. Projected Balance Sheet
The following table will indicate the projected balance sheet.
Pro Forma Balance Sheet
FY 2006 FY 2007 FY 2008
Assets
Current Assets
Cash £6,333 £40,565 £105,529
Other Current Assets £0 £0 £0
Total Current Assets £6,333 £40,565 £105,529
Fixed Assets
Fixed Assets £0 £0 £0
Accumulated Depreciation £504 £1,002 £1,500
Total Fixed Assets (£504) (£1,002) (£1,500)
Total Assets £5,829 £39,563 £104,029
Liabilities and Capital FY 2006 FY 2007 FY 2008
Current Liabilities
Accounts Payable £8,927 £8,382 £9,627
Current Borrowing £0 £0 £0
Other Current Liabilities £7,102 £0 £0
Subtotal Current Liabilities £16,029 £8,382 £9,627
Fixed Liabilities £0 £0 £0
Total Liabilities £16,029 £8,382 £9,627
Paid-in Capital £0 £0 £0

18. Retained Earnings £0 (£10,200) £31,181
Earnings (£10,200) £41,381 £63,221
Total Capital (£10,200) £31,181 £94,402
Total Liabilities and Capital £5,829 £39,563 £104,029
Net Worth (£10,200) £31,181 £94,402
7.6. Business Ratios
The business ratios table below is generated by the planning software using the
interconnected tables. Standard industry ratios, based upon Standard Industrial
Classification Code (SIC) 4111, Local and Suburban Transit, are shown for comparison.
Ratio Analysis
FY 2006 FY 2007 FY 2008 Industry
Profile
Sales Growth 0.00% 67.49% 13.08% 3.70%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 45.30%
Total Current Assets 108.65% 102.53% 101.44% 64.40%
Fixed Assets -8.65% -2.53% -1.44% 35.60%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 274.99% 21.19% 9.25% 31.20%
Fixed Liabilities 0.00% 0.00% 0.00% 25.20%
Total Liabilities 274.99% 21.19% 9.25% 56.40%
Net Worth -174.99% 78.81% 90.75% 43.60%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 80.00% 80.00% 80.00% 66.70%
Selling, General & 86.04% 65.37% 60.12% 46.50%
Administrative Expenses
Advertising Expenses 0.36% 0.21% 0.19% 0.50%
Profit Before Interest and -6.04% 19.51% 26.51% 2.90%
Taxes
Main Ratios
Current 0.40 4.84 10.96 1.61
Quick 0.40 4.84 10.96 1.17
Total Debt to Total Assets 274.99% 21.19% 9.25% 56.40%
Pre-tax Return on Net Worth 100.00% 176.95% 89.79% 4.60%
Pre-tax Return on Assets -174.99% 139.46% 81.48% 10.50%
Additional Ratios FY 2006 FY 2007 FY 2008
Net Profit Margin -6.04% 14.63% 19.77% n.a
Return on Equity 0.00% 132.71% 66.97% n.a
Activity Ratios
Accounts Payable Turnover 7.49 12.17 12.17 n.a
Payment Days 27 31 28 n.a
Total Asset Turnover 28.96 7.15 3.07 n.a
Debt Ratios

19. Debt to Net Worth 0.00 0.27 0.10 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital (£9,696) £32,183 £95,902 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.03 0.14 0.33 n.a
Current Debt/Total Assets 275% 21% 9% n.a
Acid Test 0.40 4.84 10.96 n.a
Sales/Net Worth 0.00 9.07 3.39 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Sales Forecast
Ma Apr May Jun Jul Aug Sep Oct
r
Sales VAT
Rate
Car users 17.50 £0 £1,57 £1,87 £3,95 £6,64 £7,34 £8,28 £9,25
% 8 4 8 5 5 7 8
Clubbers 0.00% £0 £0 £0 £0 £0 £0 £0 £0
Shoppers 0.00% £0 £0 £0 £0 £0 £0 £0 £0
Commuters 0.00% £0 £0 £0 £0 £0 £0 £0 £0
School Runs 0.00% £0 £0 £0 £0 £0 £0 £0 £0
Inserted Row 0.00% £0 £0 £0 £0 £0 £0 £0 £0
Large Event Organisers 0.00% £0 £0 £0 £0 £0 £0 £0 £0
Business travelers 17.50 £0 £1,11 £1,35 £3,22 £4,75 £5,51 £6,95 £8,12
% 4 8 5 4 4 8 5
Total Sales £0 £2,69 £3,23 £7,18 £11,3 £12,8 £15,2 £17,3
2 2 3 99 59 45 83
Direct Cost of Sales VAT Ma Apr May Jun Jul Aug Sep Oct
Rate r
Individuals/families 17.50 £0 £316 £375 £792 £1,32 £1,46 £1,65 £1,85
% 9 9 7 2
Business travelers 17.50 £0 £223 £272 £645 £951 £1,10 £1,39 £1,62
% 3 2 5
Subtotal Direct Cost of Sales £0 £538 £646 £1,43 £2,28 £2,57 £3,04 £3,47
7 0 2 9 7

20. Personnel Plan
Mar Apr May Jun Jul Aug Sep Oct
Person 0% £3,00 £3,00 £3,00 £3,00£3,00 £3,00 £3,00 £3,00
0 0 0 0 0 0 0 0
Person 0% £0 £1,50 £1,50 £1,50£1,50 £1,50 £1,50 £1,50
0 0 0 0 0 0 0
Person 0% £0 £2,20 £2,20 £1,80£1,80 £1,80 £1,80 £1,80
0 0 0 0 0 0 0
Person 0% £0 £2,20 £2,20 £1,80£1,80 £1,80 £1,80 £1,80
0 0 0 0 0 0 0
Person 0% £0 £0 £0 £0£1,80 £1,80 £1,80 £1,80
0 0 0 0
Person 0% £0 £0 £0 £0 £0 £0 £0 £0
Total People 1 4 4 4 5 5 5 5
Total Payroll £3,00 £8,90 £8,90 £8,10 £9,90 £9,90 £9,90 £9,90
0 0 0 0 0 0 0 0

21. General Assumptions
Mar Apr May Jun Jul Aug Sep Oct
Plan Month 1 2 3 4 5 6 7 8
Current Interest Rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
% % % % % % % %
Long-term Interest Rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
% % % % % % % %
Tax Rate 30.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00
% % % % % % % %
Other 0 0 0 0 0 0 0 0

22. Pro Forma Profit and Loss
Mar Apr May Jun Jul Aug Sep Oct
Sales VAT £0 £2,692 £3,232 £7,183 £11,39 £12,85 £15,2 £17,3
Rate 9 9 45 83
Direct Cost of Sales £0 £538 £646 £1,437 £2,280 £2,572 £3,04 £3,47
9 7
Other 17.50 £0 £0 £0 £0 £0 £0 £0 £0
%
--------- --------- --------- --------- --------- --------- --------- --------- -
--- --- --- --- --- --- --- ---
Total Cost of Sales £0 £538 £646 £1,437 £2,280 £2,572 £3,04 £3,47
9 7
Gross Margin £0 £2,154 £2,586 £5,746 £9,119 £10,28 £12,1 £13,9
7 96 06
Gross Margin % 0.00% 80.00 80.00 80.00 80.00 80.00 80.00 80.00
% % % % % % %
Expenses VAT
Rate
Payroll £3,000 £8,900 £8,900 £8,100 £9,900 £9,900 £9,90 £9,90
0 0
Sales and Marketing 17.50 £150 £175 £200 £225 £250 £300 £300 £300
and Other Expenses %
Depreciation £42 £42 £42 £42 £42 £42 £42 £42
Web site maintenance 0.00% £50 £50 £50 £50 £50 £50 £50 £50
Utilities 0.00% £100 £100 £100 £100 £100 £100 £100 £100
Insurance 5.00% £450 £450 £450 £450 £450 £450 £450 £450
Rent 17.50 £500 £500 £500 £500 £500 £500 £500 £500
%
Payroll Taxes 15.00 £450 £1,335 £1,335 £1,215 £1,485 £1,485 £1,48 £1,48
% 5 5
Other 17.50 £0 £0 £0 £0 £0 £0 £0 £0
%
--------- --------- --------- --------- --------- --------- --------- --------- -
--- --- --- --- --- --- --- ---
Total Operating VAT £4,742 £11,55 £11,57 £10,68 £12,77 £12,82 £12,8 £12,8
Expenses Rate 2 7 2 7 7 27 27
Profit Before Interest (£4,74 (£9,39 (£8,99 (£4,93 (£3,65 (£2,54 (£631) £1,07
and Taxes 2) 8) 1) 6) 8) 0) 9
EBITDA (£4,70 (£9,35 (£8,94 (£4,89 (£3,61 (£2,49 (£589) £1,12
0) 6) 9) 4) 6) 8) 1
Interest Expense £0 £0 £0 £0 £0 £0 £0 £0
Taxes Incurred £0 £0 £0 £0 £0 £0 £0 £0
Net Profit (£4,74 (£9,39 (£8,99 (£4,93 (£3,65 (£2,54 (£631) £1,07
2) 8) 1) 6) 8) 0) 9
Net Profit/Sales 0.00% -349.1 -278.2 -68.71 -32.09 -19.75 -4.14 6.21%
2% 0% % % % %

23. Pro Forma Cash Flow
Mar Apr May Jun Jul Aug Sep Oct
Cash Received
Cash from
Operations
Cash Sales £0 £2,692 £3,232 £7,183 £11,39 £12,85 £15,24 £17,38 £1
9 9 5 3
Subtotal Cash £0 £2,692 £3,232 £7,183 £11,39 £12,85 £15,24 £17,38 £1
from 9 9 5 3
Operations
Additional Cash VAT
Received Rate
VAT Received £0 £471 £566 £1,257 £1,995 £2,250 £2,668 £3,042 £3
(Output Tax)
HMRC VAT £0 £204 £0 £0 £0 £0 £0 £0
Repayments
New Current £0 £0 £0 £0 £0 £0 £0 £0
Borrowing
New Other £0 £0 £0 £0 £0 £0 £0 £0
Liabilities
(interest-free)
New Fixed £0 £0 £0 £0 £0 £0 £0 £0
Liabilities
Sales of Other 17.50 £0 £0 £0 £0 £0 £0 £0 £0
Current Assets %
Sales of Fixed 17.50 £0 £0 £0 £0 £0 £0 £0 £0
Assets %
New £0 £0 £0 £0 £0 £0 £0 £0
Investment
Received
Subtotal Cash £0 £3,367 £3,798 £8,440 £13,39 £15,10 £17,91 £20,42 £2
Received 4 9 3 5
Expenditures Mar Apr May Jun Jul Aug Sep Oct
Expenditures
from
Operations
Cash Spending £3,000 £8,900 £8,900 £8,100 £9,900 £9,900 £9,900 £9,900 £9
Bill Payments £57 £1,748 £3,153 £3,305 £4,015 £5,126 £5,473 £5,948 £6
Subtotal Spent £3,057 £10,64 £12,05 £11,40 £13,91 £15,02 £15,37 £15,84 £1
on Operations 8 3 5 5 6 3 8
Additional Cash VAT
Spent Rate
VAT Paid Out £204 £435 £458 £583 £775 £835 £919 £994 £1
(Input Tax)
HMRC VAT £0 £0 £0 £0 £817 £0 £0 £4,383
Payments
Principal £0 £0 £0 £0 £0 £0 £0 £0
Repayment of
Current
Borrowing

24. Other Liabilities £0 £0 £0 £0 £0 £0 £0 £0
Principal
Repayment
Fixed Liabilities £0 £0 £0 £0 £0 £0 £0 £0
Principal
Repayment
Purchase Other 17.50 £0 £0 £0 £0 £0 £0 £0 £0
Current Assets %
Purchase Fixed 17.50 £0 £0 £0 £0 £0 £0 £0 £0
Assets %
Dividends £0 £0 £0 £0 £0 £0 £0 £0
Subtotal Cash £3,260 £11,08 £12,51 £11,98 £15,50 £15,86 £16,29 £21,22 £1
Spent 3 1 8 7 2 2 5
Net Cash Flow (£3,26 (£7,717 (£8,714 (£3,548 (£2,113 (£752) £1,621 (£800) £5
0) ) ) ) )
Cash Balance (£3,26 (£10,97 (£19,69 (£23,23 (£25,35 (£26,10 (£24,48 (£25,28 (£2
0) 7) 1) 8) 2) 4) 2) 3)

25. Pro Forma Balance Sheet
Mar Apr May Jun Jul Aug Sep Oct N
Assets Startin
g Bala
nces
Current
Assets
Cash £0 (£3,26 (£10,97 (£19,69 (£23,23 (£25,35 (£26,10 (£24,48 (£25,28 (£20
0) 7) 1) 8) 2) 4) 2) 3)
Other £0 £204 £0 £0 £0 £0 £0 £0 £0
Current
Assets
Total Current £0 (£3,05 (£10,97 (£19,69 (£23,23 (£25,35 (£26,10 (£24,48 (£25,28 (£20
Assets 7) 7) 1) 8) 2) 4) 2) 3)
Fixed Assets
Fixed Assets £0 £0 £0 £0 £0 £0 £0 £0 £0
Accumulated £0 £42 £84 £126 £168 £210 £252 £294 £336 £3
Depreciation
Total Fixed £0 (£42) (£84) (£126) (£168) (£210) (£252) (£294) (£336) (£3
Assets
Total Assets £0 (£3,09 (£11,06 (£19,81 (£23,40 (£25,56 (£26,35 (£24,77 (£25,61 (£20
9) 1) 7) 6) 2) 6) 6) 9)
Liabilities Mar Apr May Jun Jul Aug Sep Oct N
and Capital
Current
Liabilities
Accounts £0 £1,643 £3,043 £3,172 £3,844 £4,944 £5,275 £5,736 £6,150 £6,4
Payable
Current £0 £0 £0 £0 £0 £0 £0 £0 £0
Borrowing
Other £0 £0 £36 £143 £817 £1,219 £2,634 £4,383 £2,048 £4,3
Current
Liabilities
Subtotal £0 £1,643 £3,079 £3,315 £4,661 £6,164 £7,909 £10,12 £8,198 £10
Current 0
Liabilities
Fixed £0 £0 £0 £0 £0 £0 £0 £0 £0
Liabilities
Total £0 £1,643 £3,079 £3,315 £4,661 £6,164 £7,909 £10,12 £8,198 £10
Liabilities 0
Paid-in £0 £0 £0 £0 £0 £0 £0 £0 £0
Capital
Retained £0 £0 £0 £0 £0 £0 £0 £0 £0
Earnings
Earnings £0 (£4,74 (£14,14 (£23,13 (£28,06 (£31,72 (£34,26 (£34,89 (£33,81 (£31
2) 0) 2) 7) 5) 5) 6) 7)
Total Capital £0 (£4,74 (£14,14 (£23,13 (£28,06 (£31,72 (£34,26 (£34,89 (£33,81 (£31
2) 0) 2) 7) 5) 5) 6) 7)
Total £0 (£3,09 (£11,06 (£19,81 (£23,40 (£25,56 (£26,35 (£24,77 (£25,61 (£20
Liabilities 9) 1) 7) 6) 2) 6) 6) 9)
and Capital

26. Net Worth £0 (£4,74 (£14,14 (£23,13 (£28,06 (£31,72 (£34,26 (£34,89 (£33,81 (£31
2) 0) 2) 7) 5) 5) 6) 7)