2012

Rupee Online
Store

[BUSINESS PLAN FOR STARTUP]

The documents explain the marketing strategies and full length financial analysis which supported by
monthly and yearly cash flow and sales forecast.

TABLE OF CONTENTS
1.0 Executive Summary .................................................................................................................... 4
Chart: Highlights .......................................................................................................................... 4
1.1 Objectives.................................................................................................................................... 4
1.2 Mission .......................................................................................................................................... 5
1.3 Keys to Success ........................................................................................................................ 5
2.0 Company Summary ..................................................................................................................... 5
2.1 Company Ownership ............................................................................................................... 5
2.2 Start-up Summary ................................................................................................................... 5
Chart: Start-up ............................................................................................................................. 6
Table: Start-up.............................................................................................................................. 6
3.0 Products ........................................................................................................................................... 7
4.0 Market Analysis Summary ........................................................................................................ 7
4.1 Market Segmentation ............................................................................................................. 7
Table: Market Analysis ............................................................................................................... 8
Chart: Market Analysis (Pie) ...................................................Error! Bookmark not defined.
4.2 Target Market Segment Strategy ...................................................................................... 8
4.3 Industry Analysis ...................................................................................................................... 8
4.3.1 Competition and Buying Patterns .............................................................................. 8
5.0 Strategy and Implementation Summary ............................................................................ 8
5.1 Competitive Edge ..................................................................................................................... 9
5.2 Marketing Strategy .................................................................................................................. 9
5.3 Sales Strategy ........................................................................................................................... 9
5.3.1 Sales Forecast.................................................................................................................... 9
Table: Sales Forecast ........................................................................................................... 10
Chart: Sales Monthly ............................................................................................................ 10
Chart: Sales by Year ............................................................................................................. 11
5.4 Milestones.................................................................................................................................. 11
6.0 Management Summary ............................................................................................................ 12
6.1 Personnel Plan ......................................................................................................................... 12
Organization structure ............................................................................................................. 13
7.0 Financial Plan ............................................................................................................................... 13
7.1 Important Assumptions ......................................................Error! Bookmark not defined.3
Table: General Assumptions .................................................................................................. 13
7.2 Break-even Analysis .............................................................................................................. 14
Table: Break-even Analysis.................................................................................................... 14
7.3 Projected Cash Flow .............................................................................................................. 14
Table: Cash Flow ........................................................................................................................ 15
Chart: Cash .................................................................................................................................. 15
7.4 Projected Profit and Loss ..................................................................................................... 16
Chart: Profit Monthly ................................................................................................................ 16
Chart: Profit Yearly .................................................................................................................... 16
Chart: Gross Margin Monthly................................................................................................. 17

Chart: Gross Margin Yearly .................................................................................................... 17

Table: Profit and Loss ............................................................................................................... 18
7.5 Projected Balance Sheet ...................................................................................................... 18
Table: Balance Sheet ................................................................................................................ 19
7.6 Business Ratios ....................................................................................................................... 19
Table: Ratios ................................................................................................................................ 20
Table: Sales Forecast ....................................................................................................................... 21
Table: Profit and Loss ....................................................................................................................... 22
Table: Cash Flow ................................................................................................................................ 23
Table: Balance Sheet ........................................................................................................................ 24

Executive Summary
The Rupee Store is a start-up online retail store in Delhi,India that provides interesting merchandise
options at bargain prices. Financing will come from the private investments of owners Narendra
kumar,VInay Pratap Singh and Chandrahas Tiwary. They will donate equity that will be cleared at the end
of 36 months. Dividends will be paid quarterly on the outstanding equity.
The Rupee Store will be incorporated as an LLC corporation. This will shield the owners from issues of
personal liability and double taxation. The investors will be treated as shareholders and therefore will not
be liable for more than their personal investments. The majority owner Vinay Pratap Singh, will contribute
from his personal savings toward this business venture. With an agressive marketing plan The Rupee
online Store expects to experience steady growth as it becomes more familiar to the general public.
With the financing in place The Rupee Store will be able to successfully open and maintain operations
through year one. The large capital investments of the owners will provide the public with a unique and
innovative store that will cater to the needs of those on fixed incomes such as low income families, the
elderly, and the large student population in the requisite area. The successful operation of the Rupee
Store will provide a customer base that will allow it to be self-sufficient.Oline retail store provide the
customer the convenience, comfort ,better service levels and door delivery.
Highlights

30000000
25000000
20000000
sales

15000000

gross margin
10000000

net profit

50000000
0
-5000000

year 1

year2

year3

1.1 Objectives
1. To provide a wide range of merchandise at reasonable prices at consumers door step.
2. To achieve a healthy profit margin within the first year.
3. To achieve a modest net profit by year two.
4. To be an active and vocal member of the community, and provide continual re-investment through
participation in community activities and financial contributions.

1.2 Mission
The Rupee Store provides a variety of interesting merchandise options at bargain prices. Dedicated to
customer service, comfort and timely deliver , the Rupee Store will give its patrons the kind of service that
is respectful and prompt. Employees of the Rupee Store will also be treated in a professional manner with
a rewarding work environment and fair compensation. The Rupee Store wants each customer to feel as
though he/she has gotten Fifth Avenue treatment at a bargain price.
1.3 Keys to Success
To succeed in this business we must:

Sell a broad range of products.

Provide for the satisfaction of 100% of our customers.

Be an active member of the community.

Encourage customer input.

Timely and prompt delivery

Company Summary
The Rupee Store sells products and provides excellent customer service for the general public. We have
leased a retail store which we use to market and merchandise our products. The company was
incorporated on January 2.
2.1 Company Ownership
The Rupee Store is a privately held corporation. It will be registered as a Subchapter S, with ownership
Vinay Pratap Singh (60%),Chandrahas Tiwary (40%).
2.2 Start-up Summary
The building will be leased with a down payment of Rs.150,000 on a four year lease.
Start-up costs will be financed through a combination of owner investment and short-term borrowing. The
start-up chart shows the distribution of financing.
Other miscellaneous expenses include:

Marketing/advertising consultancy fees for assistance in designing our grand-opening ads and
brochures.

Legal fees for corporate organization filings.

Retail merchandising/designing fees for store layout and minor renovations.

Start up:
5000000
4000000
3000000
Series1

2000000
1000000
0
expenses

assets

investments

loans

Start-up
Requirements
Start-up Expenses
Legal
Stationery, etc.
Brochures
Marketing consultants
Insurance
Rent
Building renovations
Expensed equipment
Other
Total Start-up Expenses
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
Total Requirements

(In Rs.)
15000
10000
25000
50000
10000
150000
250000
75000
65000
650000
2125000
1000000
50000
500000
3675000
4325000

Products
The Rupee Store sells a variety of quality discount merchandise. The types of merchandise we will carry
will include items such as grocery,dishware, household goods, toys, cosmetics, candy, greeting cards,
and a list of items too exhaustive to list here. A dedicated staff is committed to providing excellent
customer service and delivery.
The merchandise is purchased from a variety of well-known manufacturers such as Procter & Gamble,
General Mills, American Greetings,HUL as well as a number of other generic branded companies.
Shipments arrive on a daily basis. We will continue to find new product lines that can be added to our
inventory.
We are able to sell products at very low prices, because we will purchase items from discontinued lines,
seconds, over runs, etc., that cannot be sold to a manufacturer's usual retail customers.

Market Analysis Summary

We expect sales to increase steadily as consumers find that they can purchase a variety of quality items
at bargain prices. We intend to tap into the retail market with pricing that will encourage quantity buying,
and our pricing will attract consumers on fixed budgets.
Our target market is the lower and middle income portion for whom have the habit of purchasing online .
This includes working class individuals, the elderly, and students, many of whom are price conscious and
looking to find a value for their Rupee.
4.1 Market Segmentation
The market analysis pie chart shows potential customers and the company's target markets. The Rupee
Store intends to provide affordable shopping alternatives to working class families with incomes under
6,00,000, for elderly people on fixed incomes, and also a large student population that tend to be on strict
budgets. Delhi makes up the largest market segment. We expect this market to grow at a rate of 10% per
year. This market constitutes the general public who are looking for affordable merchandise at bargain
prices. Delhi constitutes the second largest market with a fast growing working class community. There
are also many families where both husband and wife working together and dont have time to shop for
their grocery ,so Rupee online store makes them comfort with home delivery and exceptional service
levels.

working class
youth
elders

Market Analysis(per 10km area)

Potential Customers Growth

Elderly
-5%
Students
40%
Working Class
Families
15%

Year 1

Year 2

Year 3

Year 4

Year 5

20,000
40,000

18,000 16,400
44,000 49,200

13,240
56,620

12,564
59,282

CAGR
-15.00%
10.00%

50,000

60,600

81,550

87,205

15.00%

69,500

4.2 Target Market Segment Strategy

We focus on the price conscious consumer who is looking for value as well as quality.Delhi and Gurgoan
and noida are the places where our target customers live and the density per k.m.also high when
compared to other cities in India.If we can attract and keep these consumers the word will continue to
spread about what our store has to offer.
4.3 Industry Analysis
In an ever changing economy the discount store model is becoming more popular with the consumer.
Providing a large selection of bargain-priced items is our intended goal. However FDI in retail would be a
big threat to our business as their value proposition also same for the customers i.e. Low price
4.3.1 Competition and Buying Patterns
Consumers demand quality customer service, fair pricing, and a convenient order delivery.
Competition is very tough with customer service and price which are key components. The selection of
warehouse is also very important.

Strategy and Implementation

The Rupee Store uses a strategy of total market service. Our promise is in our location and the products
we sell, the people we attract, and the service we create.
We will present a online store that is pleasant to shop in with a large variety of merchandise to choose
from with very flexible and comfort navigation tools.
Ultimately, we are selling more than just merchandise. We are selling ourselves. We want to provide the
kind of customer service that will provide an atmosphere that creates a positive shopping experience for
our customers.
Strategic Assumptions:
1. Every person with income limitations or on fixed incomes is a potential customer.

2. Marketing to these segments of the population will lead to an expansion in overall market
growth.
5.1 Competitive Edge
First time presence in grocery items would make us first move radvantage along with many consumer
insights and behavior analysis of their needs and wants .and according to the needs of the consumer our
dedication o fulfill their need would enhance our profit levels and make market share growth.
Another competitive edge we will have over our competition is the large variety of merchandise we will
carry. With the sources we are working with it will be possible to carry many name brand items at a
discount price. Add a staff committed to providing great customer service and the Rupee Store will be an
attractive stop for the consumer.
5.2 Marketing Strategy
The Rupee Store will benchmark our objectives for sales promotion and mass selling.
We are focusing our marketing effort on the consumers that want an online store which has an interesting
variety of merchandise at bar gin prices. We will implement a strategy that treats these customers as a
community. This means our marketing resources will be centered around both sales promotions (events,
displays) and personal sales (customer service, friendly atmosphere).

We will stay within our marketing budget.

Marketing promotions will be consistent with the Mission Statement.

5.3 Sales Strategy

Employees are paid a straight wage but can achieve a semi-yearly bonus based on profits and customer
satisfaction rates.
All potential sales will be attended to in a timely fashion and long-term salesperson-customer
relationships will take precedence over sales closure.
5.3.1 Sales Forecast
The following table and chart give a run-down on forecasted sales. We expect sales to increase at a rate
of 10% by April. We would like to see another increase of 10% by August.
We expect to experience a steady growth throughout our first year even though we are a new business
enterprise. As we become more familiar to the public we expect to gain more market share and would like
to see progressive growth as we head into the following year. The Rupee Store, with an aggressive
marketing approach expects to increase its share of the market by offering a unique option to discount
shopping.
Note: For company purchases, the per-unit price of inventory purchases includes cost of shipping.

Sales by month:
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0

non perishable

month 1
month2
month 3
month 4
month 5
month 6
month 7
month 8
month 9
month 10
month 11
month 12

perishable goods

Sales by Year

25000000
20000000
15000000
Non-Perishible Items

10000000

Perishable Items

5000000
0
Year 1

Year 2
Year 3

Sales Forecast
Year 1

Year 2

Year 3

5,675,000

6,810,000

8,172,000

10,600,000

12,720,000

15,264,000

16,275,000

19,530,000

23,436,000

2,837,500

3,405,000

4,086,000

5,300,000

6,360,000

7,632,000

8,137,500

9,765,000

11,718,000

Sales
Perishable Items
Non-Perishible Items
Total Sales
Direct Cost of Sales
Perishable Items
Non-Perishable Items
Subtotal Direct Cost of
Sales

5.4 Milestones
The milestone table shows how the responsibilities break down in the start up of our store. Narendra will
head up the drafting of the business plan and will conduct the drive to secure funding. Chandrahas will
work to secure a site for the store and will handle the details with the personnel plan. Our accountant
Vinay will set up our accounting plan and financial planning and implementation along with HR activities.

Milestones
Milestone
Business
Plan
Secure
Start Up
Funding
Site
Selection
Personal
Plan
Accounting
Plan
Totals

Start
Date

End Date

Budget

Manager

Department

1/1/2013

2/3/2013

50,000

Vinay

Owner

2/17/2013

4/3/2013

25,000

Chandrahas

Owner

3/1/2013

4/22/2013

75,000

Spencer

Management

6/4/2013

6/21/2013

25,000

Spencer

Management

7/8/2013

7/19/2013

50,000

XXX

Accounting

225,000

Management Summary
The owners of the Rupee Store believe very strongly that relationships should be forthright, work should
be structured with enough room for creativity, and pay should be fair and equitable in relation to what the
industry is paying. With the right people in place the Rupee Store will have the incentives to encourage
quality people to stay.
Vinay ,Chandrahas and Narendra studied togetherin a well known management school before starting the
Rupee Store. Chandrahas Tiwary has vast experience in banking sector as sale s marketing head and
lead the teams successfully and added glory to the organization he worked with. Specialization in
marketing , M,com. and experience would make the most eligible candidate for the business to grow.
Vinay Pratatap ,on the other hand had done his B.Tech and MBA in finance. Worked as an intern in
Polyplex, very well known brand in Polyster industry. He worked on different analytics of financial goals
and objectives nad ratio analysis and tax systems and handling process. He would add value by
implementing his financial excellence in our company to reach to great heights. Narendra Kumar ,had
prior experience in Telecom sector in handling people, managing high end activities and delegations with
corporate clients and Degree in MBA would cherish the team building activity within the company and
mission of the company to be realized.
6.1 Personnel Plan
The personnel plan is included in the following table. It shows the owner's salary in which Mr. Vinay only
wants a small draw at the initial start of the store. There will be four full-time employees and four part-time
employees. Mr Chandrahas will act as the full-time manager to oversee many of the day-to-day functions
of the store. Mr.Narendra would join afterwards in one or two years as the store crosses the
breakeven.Store employees will start at an hourly rate and raises will come after the stores first year of
operation. The manager will start at a monthly salary. Salaries and hourly rates are shown in the table
below. Full-time employees will qualify for full benefits.

Personnel Plan
Owner

Year 1
1,200,000

Year 2
1,400,000

Year 3
1,500,000

Owner/Manager
Full Time
Full Time
Full Time
Full Time
Part Time
Part Time
Part Time
Part Time
Total People
Total Payroll

1,500,000
840,000
840,000
840,000
840,000
300,000
300,000
300,000
300,000
500
7,260,000

1,575,000
850,000
850,000
850,000
850,000
295,000
295,000
295,000
295,000
500
7,555,000

1,650,000
925,000
925,000
925,000
925,000
315,000
315,000
315,000
315,000
500
8,110,000

Vinay Pratap
(Finance)

Chandrahas(sales
and Marketing)

Narendra
Kr.(Operations)

Manager

Supplier&
realations

Ware house
mgmt.

Sales and
marketing

Dispatch and
other
operations

Financial Plan
Growth will be moderate; cash flows steady.
1. Marketing costs will remain below 15% of sales.
2. The company will invest residual profits into financial markets and not company expansion
(unless absolutely necessary).
3. Future cash investments will use NOV projections to achieve maximum return with limited
risk.
7.1 Important Assumptions
The personnel burden is very low because benefits are not paid to part-timers. And the short-term interest
rate is extraordinarily low because of Mr. Vinay's long-standing relationship with High Desert Credit
Union.

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1
1
7.00%
20.00%
25.42%
0

Year 2
2
7.00%
20.00%
25.00%
0

Year 3
3
7.00%
20.00%
25.42%
0

7.2 Break-even Analysis

A Break-even Analysis table has been completed on the basis of average costs/prices. With fixed costs,
average sales, and average variable costs, the table and chart show what we need per month to breakeven.

Break-even Analysis
Monthly Revenue Break-even

1878500

Assumptions:
Average Percent Variable Cost

50%

Estimated Monthly Fixed Cost

939250

7.3 Projected Cash Flow

We are positioning ourselves in the market as a medium risk concern with steady cash flows. Accounts
payable is paid at the end of each month, while sales are in cash, giving the Rupee Store an excellent
cash structure. Fifty percent of cash above a TBA amount will be invested into semi-liquid stock portfolios
to decrease the opportunity cost of cash held.

Monthly Cash Flow

2500000
2000000
1500000
1000000
500000
0
-500000

Net Cash Flow

Cash Balance

Pro Forma Cash Flow

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received

Year 1

Year 2

Year 3

16,275,000

19,530,000

23,436,000

16,275,000

19,530,000

23,436,000

150,000
-

New Long-term Liabilities

Sales of Other Current Assets

Sales of Long-term Assets

100,000

16,525,000

19,530,000

23,436,000

Year 1

Year 2

Year 3

New Current Borrowing

New Other Liabilities (interest-free)

New Investment Received

Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending

7,260,000

7,555,000

8,110,000

Bill Payments

10,964,700

12,070,100

13,615,700

Subtotal Spent on Operations

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out

18,224,700

19,625,100

21,725,700

5,000

60,000

60,000

Other Liabilities Principal Repayment

Long-term Liabilities Principal Repayment

Purchase Other Current Assets

Purchase Long-term Assets

Dividends

Subtotal Cash Spent

18,229,700

19,685,100

21,785,700

Net Cash Flow

(1,704,700)

(155,100)

1,650,300

420,300

265,200

1,915,550

Principal Repayment of Current Borrowing

Cash Balance

7.4 Projected Profit and Loss

We predict advertising costs will go down in the next three years. We will be able to find what has worked
well for us and concentrate on those advertising methods. Normally, a start-up concern will operate with
negative profits through the first two years. We will avoid that kind of operating loss by knowing our target
markets.

Profit Monthly

200,000
100,000
(100,000)
(200,000)
(300,000)
(400,000)
(500,000)

Net Profit

net profit
2,000,000
1,000,000
0
-1,000,000
-2,000,000
-3,000,000
-4,000,000

year1

year2

year3

net profit

1200000
1000000
800000
600000
400000
200000

Series1

Gross margin by year

14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
year1

year2

year3

Pro Forma Profit and Loss

Year 1
16,275,000
8,137,500
-

Year 2
19,530,000
9,765,000
-

Year 3
23,436,000
11,718,000
-

Total Cost of Sales

Gross Margin
Gross Margin %
Expenses
Payroll

8,137,500
8,137,500
25

9,765,000
9,765,000
25

11,718,000
11,718,000
25

7,260,000

7,555,000

8,110,000

Sales and Marketing and Other Expenses

Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other

600,000
57,150
1,800,000
165,000
180,000
1,089,000
120,000

57,150
1,133,250
-

57,150
1,216,500
-

Total Operating Expenses

Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred

11,271,150
(3,133,650)
(3,076,500)
1,700
-

8,745,400
1,019,600
1,076,750
8,050
252,900

9,383,650
2,334,350
2,391,500
3,850
592,350

Net Profit
Net Profit/Sales

(3,135,350)
(10)

758,650
2

1,738,150
4

Sales
Direct Cost of Sales
Other Costs of Goods

7.5 Projected Balance Sheet

All of our tables will be updated monthly to reflect past performance and future assumptions. Future
assumptions will not be based on past performance but rather on economic cycle activity, regional
industry strength, and future cash flow possibilities. We expect solid growth in net worth beyond the year
2006.

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

420,300

265,200

1,915,550

1,182,500

1,419,000

1,702,800

50,000

50,000

50,000

1,652,800

1,734,200

3,668,350

Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets

500,000

500,000

500,000

57,150

114,300

171,450

442,850

385,700

328,550

2,095,700

2,119,950

3,996,900

1,611,050

936,650

1,135,450

145,000

85,000

25,000

25,000

25,000

25,000

1,781,050

1,046,650

1,185,450

Total Liabilities

1,781,050

1,046,650

1,185,450

Paid-in Capital

4,100,000

4,100,000

4,100,000

Retained Earnings

(650,000)

(3,785,350)

(3,026,700)

(3,135,350)

758,650

1,738,150

314,650

1,073,300

2,811,450

2,095,700

2,119,950

3,996,900

314,650

1,073,300

2,811,450

Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities

Earnings
Total Capital
Total Liabilities and Capital
Net Worth

7.6 Business Ratios

We expect our net profit margin and gross margin, to increase steadily over the three-year period. Our net
working capital will increase handsomely by year three, proving that we have the cash flows to remain a
going concern. The following table shows these important financial ratios, based upon NAICS industry
code 452112, Discount Department Stores

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

20.00%

20.00%

6.06%

56.43%

51.66%

32.49%

47.62%

Other Current Assets

2.39%

2.39%

1.25%

28.89%

Total Current Assets

78.87%

81.56%

91.77%

80.40%

Sales Growth

Percent of Total Assets

Inventory

Long-term Assets
Total Assets

Current Liabilities
Long-term Liabilities

21.13%

18.44%

8.23%

19.60%

100.00%

100.00%

100.00%

100.00%

84.99%

48.70%

29.56%

17.64%

0.00%

0.00%

0.00%

10.82%

Total Liabilities

84.99%

48.70%

29.56%

28.46%

Net Worth

15.01%

51.30%

70.44%

71.54%

Percent of Sales
Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

50.00%

50.00%

50.00%

27.06%

Selling, General & Administrative Expenses

69.26%

46.12%

42.54%

9.93%

0.00%

0.00%

0.00%

1.10%

-19.25%

5.22%

9.96%

3.24%

Current

0.93

1.67

3.1

3.98

Quick

0.26

0.61

2.01

1.18

84.99%

48.70%

29.56%

41.68%

Pre-tax Return on Net Worth

-996.49%

94.25%

82.89%

7.89%

Pre-tax Return on Assets

-149.61%

48.35%

58.39%

13.53%

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

-19.26%

3.88%

7.42%

n.a

Return on Equity

-996.49%

70.68%

61.82%

n.a

10.84

8.63

9.86

n.a

7.62

12.17

12.17

n.a

Advertising Expenses
Profit Before Interest and Taxes

Main Ratios

Total Debt to Total Assets

Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover

28

42

27

n.a

7.77

9.33

5.87

n.a

Debt Ratios
Debt to Net Worth

5.66

0.95

0.42

n.a

n.a

Net Working Capital

(128,200)

687,600

2,482,900

n.a

Interest Coverage

-1,821.00

126.66

606.32

n.a

Assets to Sales

0.13

0.11

0.17

n.a

Current Debt/Total Assets

85%

49%

30%

n.a

Acid Test

0.26

0.61

2.01

n.a

51.73

18.2

8.34

n.a

n.a

Current Liab. to Liab.

Liquidity Ratios

Additional Ratios

Sales/Net Worth
Dividend Payout

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

300,000

325,000

350,000

375,000

425,000

450,000

450,000

450,000

500,000

600,000

600,000

850,000

600,000

650,000

700,000

750,000

850,000

900,000

900,000

900,000

950,000

1,050,000

1,050,000

1,300,000

900,000

975,000

1,050,000

1,125,000

1,275,000

1,350,000

1,350,000

1,350,000

1,450,000

1,650,000

1,650,000

2,150,000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Sales
Perishable Items
Non-Perishible
Items
Total Sales

Direct Cost of
Sales
Perishable Items

150,000

162,500

175,000

187,500

212,500

225,000

225,000

225,000

250,000

300,000

300,000

425,000

Non-Perishable
Items

300,000

325,000

350,000

375,000

425,000

450,000

450,000

450,000

475,000

525,000

525,000

650,000

Subtotal Direct
Cost of Sales

450,000

487,500

525,000

562,500

637,500

675,000

675,000

675,000

725,000

825,000

825,000

1,075,000

Pro Forma Profit and Loss

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Sales

900,000

975,000

1,050,000

1,125,000

1,275,000

1,350,000

1,350,000

1,350,000

1,450,000

1,650,000

1,650,000

2,150,000

Direct Cost of Sales

450,000

487,500

525,000

562,500

637,500

675,000

675,000

675,000

725,000

825,000

825,000

1,075,000

Total Cost of Sales

450,000

487,500

525,000

562,500

637,500

675,000

675,000

675,000

725,000

825,000

825,000

1,075,000

Gross Margin

450,000

487,500

525,000

562,500

637,500

675,000

675,000

675,000

725,000

825,000

825,000

1,075,000

25

25

25

25

25

25

25

25

25

25

25

25

Payroll

605,000

605,000

605,000

605,000

605,000

605,000

605,000

605,000

605,000

605,000

605,000

605,000

Sales and Marketing and

Other Expenses

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

Depreciation

4,750

4,750

4,750

4,750

4,750

4,750

4,750

4,750

4,750

4,750

4,750

4,750

Rent

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

Utilities

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

Insurance

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

15,000

Payroll Taxes

90,750

90,750

90,750

90,750

90,750

90,750

90,750

90,750

90,750

90,750

90,750

90,750

Other

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 Operating Expenses

940,500

940,500

940,500

940,500

940,500

940,500

940,500

940,500

940,500

940,500

940,500

925,500

Profit Before Interest and

Taxes

(490,500)

(453,000)

(415,500)

(378,000)

(303,000)

(265,500)

(265,500)

(265,500)

(215,500)

(115,500)

(115,500)

149,500

EBITDA

(485,750)

(448,250)

(410,750)

(373,250)

(298,250)

(260,750)

(260,750)

(260,750)

(210,750)

(110,750)

(110,750)

154,250

Interest Expense

900

850

Taxes Incurred

Net Profit

(490,500)

(453,000)

(415,500)

(378,000)

(303,000)

(265,500)

(265,500)

(265,500)

(215,500)

(115,500)

(116,400)

148,650

Net Profit/Sales

(27)

(23)

(20)

(17)

(12)

(10)

(10)

(10)

(7)

(4)

(4)

Other Costs of Goods

Gross Margin %

Expenses

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Sales

900000

975000

1050000

1125000

1275000

1350000

1350000

1350000

1450000

1650000

1650000

2150000

Subtotal Cash from

Operations

900000

975000

1050000

1125000

1275000

1350000

1350000

1350000

1450000

1650000

1650000

2150000

New Current Borrowing

150000

New Other Liabilities

(interest-free)

New Long-term Liabilities

Sales of Other Current

Assets
Sales of Long-term
Assets
New Investment
Received
Subtotal Cash Received

100000

900000

975000

1050000

1125000

1275000

1350000

1350000

1350000

1450000

1650000

1900000

2150000

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Expenditures from
Operations
Cash Spending

605000

605000

605000

605000

605000

605000

605000

605000

605000

605000

605000

605000

Bill Payments

311050

346550

807600

898250

938400

1050650

1045650

1005750

1009250

1115900

1262100

1173600

Subtotal Spent on
Operations

916050

951550

1412600

1503250

1543400

1655650

1650650

1610750

1614250

1720900

1867100

1778600

Sales Tax, VAT,

HST/GST Paid Out
Principal Repayment of
Current Borrowing

5000

Other Liabilities Principal

Repayment

Long-term Liabilities
Principal Repayment

Purchase Other Current

Assets
Purchase Long-term
Assets
Dividends

Subtotal Cash Spent

916050

951550

1412600

1503250

1543400

1655650

1650650

1610750

1614250

1720900

1867100

1783600

Net Cash Flow

-16050

23450

-362600

-378250

-268400

-305650

-300650

-260750

-164250

-70900

32900

366400

Cash Balance

2109000

2132450

1769850

1391600

1123250

817600

517000

256250

92000

21050

53950

420300

Cash Received

Cash from Operations

Additional Cash
Received
Sales Tax, VAT,
HST/GST Received

Additional Cash Spent

Pro Forma
Balance Sheet

Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting
Balances

Current Assets
Cash

2125000

2109000

2132450

1769850

1391600

1123250

817600

517000

256250

92000

21050

53950

420300

Inventory

1000000

550000

536250

577500

618750

701250

742500

742500

742500

797500

907500

907500

1182500

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

50000

3175000

2709000

2718700

2397350

2060350

1874500

1610100

1309500

1048750

939500

978550

1011450

1652800

500000

500000

500000

500000

500000

500000

500000

500000

500000

500000

500000

500000

500000

4750

9500

14300

19050

23800

28550

33350

38100

42850

47600

52400

57150

500000

495250

490500

485700

480950

476200

471450

466650

461900

457150

452400

447600

442850

3675000

3204200

3209150

2883050

2541300

2350650

2081550

1776150

1510650

1396600

1430950

1459050

2095700

300000

319750

777700

867100

903350

1015750

1012100

972250

972250

1073750

1223550

1118050

1611050

150000

145000

25000

25000

25000

25000

25000

25000

25000

25000

25000

25000

25000

25000

25000

325000

344750

802700

892100

928350

1040750

1037100

997250

997250

1098750

1248550

1293050

1781050

Other Current
Assets
Total Current
Assets
Long-term Assets
Long-term Assets
Accumulated
Depreciation
Total Long-term
Assets
Total Assets

Liabilities and
Capital
Current Liabilities
Accounts
Payable
Current
Borrowing
Other Current
Liabilities
Subtotal Current
Liabilities

Long-term
Liabilities
Total Liabilities

325000

344750

802700

892100

928350

1040750

1037100

997250

997250

1098750

1248550

1293050

1781050

Paid-in Capital

4000000

4000000

4000000

4000000

4000000

4000000

4000000

4000000

4000000

4000000

4000000

4100000

4100000

Retained
Earnings
Earnings

-650000

-650000

-650000

-650000

-650000

-650000

-650000

-650000

-650000

-650000

-650000

-650000

-650000

-490500

-943500
2406500

2305550
1044450

2571100
778900

2836600
513400

3052100
297900

-3135350

2859500

2040050
1309950

-3284000

3350000

1737050
1612950

-3167600

Total Capital

1359050
1990950

182400

166000

314650

Total Liabilities
and Capital

3675000

3204200

3209150

2883050

2541300

2350650

2081550

1776150

1510650

1396600

1430950

1459050

2095700

Net Worth

3350000

2859500

2406500

1990950

1612950

1309950

1044450

778900

513400

297900

182400

166000

314650