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BUSINESS PLAN

ABC TAXI SERVICE INC.

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_________________________ in this business plan is confidential; therefore, reader agrees not to
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It is acknowledged by reader that information to be furnished in this business plan is in all respects
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that any disclosure or use of same by reader, may cause serious harm or damage to
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Upon request, this document is to be immediately returned to _________________________.
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___________________
Date
This is a business plan. It does not imply an offering of securities.

Table of Contents
1.0 Executive Summary ..............................................................................................................1
1.1 Mission .........................................................................................................................1
Chart: Highlights ........................................................................................................2
1.2 Objectives ....................................................................................................................2
2.0 Company Summary ..............................................................................................................2
2.1 Company Ownership ....................................................................................................2
2.2 Start-up Summary ........................................................................................................3
Table: Start-up ...........................................................................................................3
Table: Start-up Funding .............................................................................................4
Chart: Start-up ...........................................................................................................5
3.0 Services ................................................................................................................................5
4.0 Market Analysis Summary ....................................................................................................5
4.1 Market Segmentation ...................................................................................................5
Table: Market Analysis ..............................................................................................6
Chart: Market Analysis (Pie) ......................................................................................6
4.2 Target Market Segment Strategy .................................................................................6
4.3 Competition and Buying Patterns .................................................................................7
5.0 Strategy and Implementation Summary ...............................................................................7
5.1 Sales Strategy ..............................................................................................................8
5.1.1 Sales Forecast ..................................................................................................8
Chart: Sales Monthly .........................................................................................9
Chart: Sales by Year .........................................................................................9
Table: Sales Forecast .....................................................................................10
5.2 Competitive Edge .......................................................................................................10
5.3 Milestones ..................................................................................................................10
Table: Milestones.....................................................................................................11
6.0 Management Summary ......................................................................................................11
6.1 Personnel Plan ...........................................................................................................11
Table: Personnel......................................................................................................11
7.0 Financial Plan .....................................................................................................................11
7.1 Important Assumptions ..............................................................................................11
Table: General Assumptions ...................................................................................12
7.2 Break-even Analysis...................................................................................................12
Chart: Break-even Analysis .....................................................................................12
Table: Break-even Analysis .....................................................................................12
7.3 Projected Profit and Loss ...........................................................................................13
Table: Profit and Loss ..............................................................................................13
7.4 Projected Balance Sheet............................................................................................14
Table: Balance Sheet ..............................................................................................14
7.5 Projected Cash Flow ..................................................................................................15
Table: Cash Flow .....................................................................................................15
Chart: Cash..............................................................................................................16
7.6 Business Ratios .........................................................................................................16
Table: Ratios............................................................................................................17
Table: Sales Forecast .................................................................................................................1
Table: Personnel ........................................................................................................................2
Table: General Assumptions ......................................................................................................3
Page 1

Table of Contents
Table: Profit and Loss.................................................................................................................4
Table: Cash Flow........................................................................................................................5
Table: Balance Sheet .................................................................................................................6

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ABC TAXI SERVICE INC.


1.0 Executive Summary
ABC Taxi Service Inc is a Toronto-based tAXI service. ABCTSI provides limousine like service
without the typical high limousine price. Although ABCTSI cars are not true stretch limousines, they
are late model high-end luxury vehicles. ABCTSI is lead by Mohammed Hakim Zadah, a
transportation industry veteran. ABCTSI has forecasted sales of $611,890 by year three PLUS
MEMBERSHIPS AND DISPATCH FEES
The Market and Services Offered
The market is a large one with over 1.5 million potential customers
The Competitive Edge
ABCTSI recognizes that their key to success will be providing unmatched customer service. ABCTSI
has infused the importance of customer service into the drivers' jobs by offering financial incentives
to the drivers for superior service. This will ensure that the best customer service will be offered
at every level and interaction with the company.
Management Team
ABCTSI was founded and is run by Mohammed Hakim Zadah. Mohammed began his transportation
career as a taxi driver. Mohammed's logistics and customer service experience will be essential to
the success of ABCTSI. The logistics experience will provide ABCTSI with hyper-efficient
operations and the customer service experience will support their competitive edge.

1.1 Mission
The Mission of ABC Taxi Servive Inc (ABCTSI) is to provide the customer the finest transportation
service available. We exist to attract and maintain customers. When we adhere to this maxim,
everything else will fall in to place. Our services will exceed the expectations of our customers.
ABCTSI mission is to establish a universal licensing plan to be held only by owner operators. To
have all or most of the taxi drivers under one main umbrella
whereby they pay an annual membership fee and monthly dispatch fee to one orginazation. The
drivers will by a mutal agreement between the management
of ABCTSI and all the members, share in the profits of the corporation.

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ABC TAXI SERVICE INC.

1.2 Objectives
The objectives for the first three years of operation include:
1.
2.
3.
4.
5.

To create a service-based company whose primary goal is to exceed customer's


expectations.
To increase customers by 20% per year through superior performance and word-ofmouth referrals.
To develop a sustainable Taxi company serving the GTA
To establish the only company in which it's members share in the profits
To establish with the help of the Toronto government a Universal License for owner
operators

2.0 Company Summary


ABCTSI offers a general taxi service for the GTA. ABCTSI will offer their service 24 hours a day
to most neighborhoods in the GTA. ABCTSI will be priced less than a limousine service but more
than a group shuttle service.
Mohammed Hakim Zadah will be working full time as the Manager and have four other employees.

2.1 Company Ownership


ABCTSI is an Ontario corporation founded and owned by Mohammed Hakim Zadah.

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2.2 Start-up Summary

Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Insurance
Rent
Computer
Other
Total Start-up Expenses

$0
$0
$0
$0
$0
$0
$0

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$0
$0
$0
$0

Total Requirements

$0

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Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$0
$0
$0

$0
$0
$35,000
$35,000
$35,000

Liabilities and Capital


Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$0
$0
$0
$0

Capital
Planned Investment
Investor 1
Other
Additional Investment Requirement
Total Planned Investment

$35,000
$0
$0
$35,000

Loss at Start-up (Start-up Expenses)


Total Capital

$0
$35,000

Total Capital and Liabilities

$35,000

Total Funding

$35,000

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ABC TAXI SERVICE INC.

3.0 Services
ABCTSI provides a general Taxi and Airport transportation solution for the GTA. ABCTSI can
provide airport travel on short notice if cars are available, but they generally work with a
reservation system. A customer would call up in advance and provide ABCTSI with flight
information. ABCTSI would schedule the pick up time and then call and send an email to confirm
the pickup. For pick up at the airport, ABCTSI would meet the customer outside of baggage claim
after the customer has picked up their luggage and would drive them home.

4.0 Market Analysis Summary


ABCTSI will be focusing on families as well as business travelers. Both groups will likely
demand our services. The families will utilize our service because it is convenient and less
expensive than if they drove themselves and paid for long-term parking of their car. Business
travelers will use our service because it offers a limousine-like service (other than the fact
that ABCTSI does not use limousines) where the traveler has a ride waiting for them when their
planes comes in, but the service is less expensive than normal limousine services. Since the service
is fairly comparable to a louisine service, companies will encourage their workers to
utilize ABCTSI as a cost saving measure, particularly in this economic downturn.

4.1 Market Segmentation


Our customers can be divided into two groups: families/individuals on pleasure trips, and
business travelers.

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The first group is taking a trip for pleasure and will either be an individual or a family. Their choices
are to either drive and park in long term parking, take a taxi, or use a limousine service. This
group does not typically mind paying a bit more for a solution that takes care of their
transportation to and from the airport. Since they are are on vacation, they appreciate having a
service that gets them to the airport in a seamless way so they do not have to worry about
anything. All they have to do is make the reservation and show up at the arranged pickup point.
The second group is the business traveler. In the past a company would typically hire a limousine
service to pick up their worker. The company would always pay for the service. With ABCTSI as
an alternative, there is a transportation service that functions like a limousine (you can
preschedule pickup dates and be taken directly home or to the airport) but without the overly
fancy car and the associated high price. As companies are always looking at ways to cut
costs, ABCTSI offers a very reasonable solution in terms of comfort and cost. The business traveler
will not notice anything different with ABCTSI versus a limo service other than the vehicle they
are traveling won't be a limo, but will still be a sufficiently large and comfortable car.

Table: Market Analysis


Market Analysis
Potential Customers
Individual/families
Business travelers
Total

Growth
9%
8%
8.58%

2011

2012

2013

2014

2015

578,000
425,000
1,003,000

630,020
459,000
1,089,020

686,722
495,720
1,182,442

748,527
535,378
1,283,905

815,894
578,208
1,394,102

CAGR
9.00%
8.00%
8.58%

4.2 Target Market Segment Strategy


ABCTSI will be targeting these two groups because they consistently travel, and ABCTSI solution
makes traveling easy for them. While a slow economy has some effect on travel. In general
north Americans tend to travel more each year, this trend beginning in the early 1980s. These
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ABC TAXI SERVICE INC.


groups are particularly attractive to ABCTSI because they will always need to get to the airport and
they are willing to pay a bit extra for the luxury of having someone take them there instead of
being required to get themselves there. Please note, however, ABCTSI is only slightly more
expensive for trips under four days; over four days it is more cost effective to use ABCTSI.
Compared to driving a personal vehicle and paying for long-term parking.
In regard to the business customers, it is generally accepted practice for the company to provide
the transportation for their employees. For trips over four days, there is no question that ABCTSI is
more cost effective. Under four days ABCTSI service is slightly more expensive than driving oneself
and parking, however, companies are more than willing to pay a bit extra as their employee is
giving up a decent amount of their free time to go on the trip for work and the business recognizes
and appreciates this. Of course for the companies already willing to pay limousine prices, ABCTSI
will appear as a way of reducing travel costs with no appreciable loss in service quality.

4.3 Competition and Buying Patterns


Currently in Toronto there are several competing Taxi and airport transportation systems:
1.

2.

3.

4.

Public transportation: TTC provides rapid transit service to the airport. While this is an
inexpensive alternative there are several disadvantages. The service does not run all
hours of the night.
Taxi service: Taxis do provide service to and from the airport, however, travelers cannot
book the trip in advance, forcing them to call right before they want to travel. The level of
service is inconsistent from taxi service to taxi service as well as from occasion to
occasion. Taxis can also be quite expensive if city dwellers are going out to the suburbs.
Airport parking: Airport parking can be cost effective if it is for fewer than four days.
Driving oneself has the advantage of not having to deal with anyone else, the flip side to
this however is they must do everything for themselves. Lastly, there is always the risk of
damage to their car when it is parked and all airport parking facilities have drivers sign a
waiver absolving the lot from responsibility if anything happens to the car.
Shuttle service: This option packs a few different people into a van and takes them to
the airport. This is a less expensive option, however, it takes longer to make the
commute due to the other customers that are traveling Additionally, travelers lose out on
the personalized service relative to ABCTSI or a limousine service.

The buying patterns of these services vary based on the length of the trip, who is paying for it, and
if it is a last minute or planned in advance trip. The longer the trip, the more economical a
transportation option is relative to airport parking. A large percentage of business travelers use
an upscale airport transportation solution like ABCTSI or a limousine service for their employees.
People who are just scraping by to go on vacation are likely to choose the least costly option,
public transportation. Lastly, if the trip is planned at the last minute, taxi service might be the
only option however, ABCTSI will offer last minute rides if cars are available.

5.0 Strategy and Implementation Summary


ABCTSI's marketing/sales strategy will be two pronged, one to address each of our two segmented
targeted groups:
1.

Families/individuals: In addition to some advertising, we will be working with


associations such as CAA and other community groups to try to build up a network of
users.ABCTSI believes that working with these groups will provide us with steady flow of
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ABC TAXI SERVICE INC.

2.

customers. Additionally, since a lot of these groups have close knit among member referrals
will be quite powerful when they are coming from a member who already has established
a trust bond with other organizational members.
Business travelers: ABCTSI will be contacting the travel department of many of the
different companies in Toronto that have a lot of employees traveling and informing them
about our service and offering them an introductory discount. This will be an important
segment to win over as companies routinely have employees traveling throughout the year.
Businesses are also valuable because once the initial contact is made, the relationship can
be turned into a steady stream of business.

5.1 Sales Strategy


As stated earlier, we will be going after both families/individuals as well as business
travelers. ABCTSI will have a different strategy for each group. For the individuals, ABCTSI will use
contacts through membership associations and clubs to build customers. Customers that are a part
of an association tend to put more trust in a service provider when the service provider is
aligned with the association. ABCTSI will offer a discount for the association members to try to
build up a following. Our selling spiel will be total convenience at a cost that is competitive with
the price that they currently pay when they leave their car in the parking lot. Offering the ability to
schedule in advance pick up from home and then pick up from airport should be a big selling
point. People like convenience, and people are willing to pay for conveniences. One phone call to
arrange all of your transport needs to the airport is quite a convenience.
Our strategy of wooing the business travelers will be a campaign to introduce ABCTSI to the
different travel departments of the larger companies in the area. The initial contact will be a
letter/brochure describing our services along with a pricing guide. ABCTSI will then follow that up
with a phone call to try to receive a commitment from the company. By including the pricing
information within the brochure, ABCTSI believes that this will catch the eyes of the companies'
travel departments as they are acutely aware of the costs that they are paying now and ABCTSI
believes that they can convert the lead into a customer by offering essentially the same service
of a limo company at a reduced rate.

5.1.1 Sales Forecast


The first month will be spent setting up the business. It is unlikely that everything will be ready
to go so that we could begin to take fares. By month two the business office will be in order,
brochures will have been sent out and ABCTSI will have been working with associations to create
visibility for the company. ABCTSI will have two drivers and will be paying a base monthly wage on
the assumption that ABCTSI wants to have the drivers ready when fares come up but there is not
likely to be enough fares to support the wages of the two drivers.

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Table: Sales Forecast
Sales Forecast
Sales
Individuals/families
Business Travellers
Memberships
Dispatch Fees
Total Sales
Direct Cost of Sales
Individuals/families
Business travelers
Subtotal Direct Cost of Sales

FY 2012

FY 2013

FY 2014

$72,000
$60,000
$60,000
$60,000
$252,000

$53,900
$66,000
$150,000
$150,000
$419,900

$59,290
$72,600
$240,000
$240,000
$611,890

FY 2012
$22,050
$27,000
$49,050

FY 2013
$24,255
$29,700
$53,955

FY 2014
$26,681
$32,670
$59,351

5.2 Competitive Edge


ABCTSI competitive advantage will be based on an incentive system that rewards the drivers/
members economically when they achieve good service, develop repeat customers and act in a
team fashion instead of competing against other company drivers. This incentive system will
reward drivers when:
1.
2.
3.
4.

The company receives positive feedback about the driver (a feedback system will be set
up).
The customer is turned into a repeat customer.
The driver develops new customers.
The driver acts in manners that are team based instead of for individual gain.

Through this complicated but purposeful system, ABCTSI is incentivizing behavior that they believe
will help the company succeed, while not rewarding behavior that is destructive to the company.

5.3 Milestones
ABCTSI will have several milestones to aim for:
1.

2.
3.
4.
5.
6.

Business plan completion. This will be done as a road map for the organization. While we do
not need a business plan to raise capital, it will be an indispensable tool for the ongoing
performance and improvement of the company.
Set up office.
Profitability.
Bringing on board the fourth driver.
Establish the universal license
Attract 300 members in the first year and 800 by year three

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Table: Milestones
Milestones
Milestone
Business plan completion
Set up office
Profitability
Fourth drive hired
Totals

Start Date
31/10/2011
31/10/2011
31/10/2011
31/10/2011

End Date
30/11/2011
30/11/2011
30/11/2011
30/11/2011

Budget
$0
$0
$0
$0
$0

Manager
ABC
ABC
ABC
ABC

Department
Department
Department
Department
Department

6.0 Management Summary


ABC Taxi Service Inc. is owned and operated by Mohammed Hakim Zadah. He has over 15 years
experiance in the taxi service industry.

6.1 Personnel Plan


The staff will consist of Mohammed working full time in the back office. Mohammed will be
responsible for setting up the appointments as well as the marketing to develop customers. By
month two, Mohammed will be bringing on board a part-time employee to help him out in
answering the phones and setting up appointments for fares. Month two will also bring two
drivers to ABCTSI. The head count will remain the same until month five when a third driver will be
brought on board. Lastly, month 11 will see a fourth driver brought on board.

Table: Personnel
Personnel Plan
Mohammed
Part-time employee
Driver
Total People

FY 2012
$36,000
$8,800
$20,600
6

FY 2013
$36,000
$16,500
$21,600
6

FY 2014
$36,000
$16,500
$21,600
6

Total Payroll

$65,400

$74,100

$74,100

7.0 Financial Plan


The following sections will detail important financial information.

7.1 Important Assumptions


The following table highlights some of the important financial assumptions for ABCTSI.

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

FY 2012
1
8.00%
8.00%
18.00%
0

FY 2013
2
8.00%
8.00%
18.00%
0

FY 2014
3
8.00%
8.00%
18.00%
0

7.2 Break-even Analysis


The Break-even Analysis indicates that ABCTSI must have $15,016 in revenue to break even.

Table: Break-even Analysis


Break-even Analysis
Monthly Revenue Break-even

$16,101

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

19%
$12,967

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7.3 Projected Profit and Loss
The following table will indicate projected profit and loss.

Table: Profit and Loss


Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other
Total Cost of Sales

FY 2012
$252,000
$49,050
$0
$49,050

FY 2013
$419,900
$53,955
$0
$53,955

FY 2014
$611,890
$59,351
$0
$59,351

Gross Margin
Gross Margin %

$202,950
80.54%

$365,945
87.15%

$552,539
90.30%

$65,400
$3,100
$28,500
$600
$1,200
$5,400
$6,000
$5,400
$40,000

$74,100
$3,600
$51,300
$600
$1,200
$5,400
$6,000
$5,800
$100,000

$74,100
$3,600
$41,040
$600
$1,200
$5,400
$6,000
$6,000
$160,000

$155,600

$248,000

$297,940

Profit Before Interest and Taxes


EBITDA
Interest Expense
Taxes Incurred

$47,350
$75,850
$21,920
$4,577

$117,945
$169,245
$20,080
$17,616

$254,599
$295,639
$18,160
$42,559

Net Profit
Net Profit/Sales

$20,853
8.27%

$80,249
19.11%

$193,880
31.69%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Web site maintenance
Utilities
Insurance
Rent
Payroll Taxes
Members profit allocation
Total Operating Expenses

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7.4 Projected Balance Sheet
The following table will indicate the projected balance sheet.

Table: Balance Sheet


Pro Forma Balance Sheet
FY 2012

FY 2013

FY 2014

Current Assets
Cash
Other Current Assets
Total Current Assets

$143,628
$0
$143,628

$227,512
$0
$227,512

$445,715
$0
$445,715

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$285,000
$28,500
$256,500
$400,128

$285,000
$79,800
$205,200
$432,712

$285,000
$120,840
$164,160
$609,875

FY 2012

FY 2013

FY 2014

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$41,275
$263,000
$40,000
$344,275

$17,610
$239,000
$40,000
$296,610

$24,893
$215,000
$40,000
$279,893

Long-term Liabilities
Total Liabilities

$0
$344,275

$0
$296,610

$0
$279,893

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$35,000
$0
$20,853
$55,853
$400,128

$35,000
$20,853
$80,249
$136,102
$432,712

$35,000
$101,102
$193,880
$329,982
$609,875

$55,853

$136,102

$329,982

Assets

Liabilities and Capital

Net Worth

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ABC TAXI SERVICE INC.


7.5 Projected Cash Flow
The following chart and table will indicate projected cash flow.

Table: Cash Flow


Pro Forma Cash Flow
FY 2012

FY 2013

FY 2014

Cash from Operations


Cash Sales
Subtotal Cash from Operations

$252,000
$252,000

$419,900
$419,900

$611,890
$611,890

Additional Cash Received


Sales Tax, VAT, HST/GST Received
New Current Borrowing
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

$0
$285,000
$40,000
$0
$0
$0
$0
$577,000

$0
$0
$0
$0
$0
$0
$0
$419,900

$0
$0
$0
$0
$0
$0
$0
$611,890

FY 2012

FY 2013

FY 2014

Expenditures from Operations


Cash Spending
Bill Payments
Subtotal Spent on Operations

$65,400
$95,972
$161,372

$74,100
$237,916
$312,016

$74,100
$295,586
$369,686

Additional Cash Spent


Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$22,000
$0
$0
$0
$285,000
$0
$468,372

$0
$24,000
$0
$0
$0
$0
$0
$336,016

$0
$24,000
$0
$0
$0
$0
$0
$393,686

Net Cash Flow


Cash Balance

$108,628
$143,628

$83,884
$227,512

$218,204
$445,715

Cash Received

Expenditures

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ABC TAXI SERVICE INC.

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.

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ABC TAXI SERVICE INC.


Table: Ratios
Ratio Analysis
Sales Growth

FY 2012
n.a.

FY 2013
66.63%

FY 2014
45.72%

Industry Profile
3.70%

Percent of Total Assets


Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

0.00%
35.90%
64.10%
100.00%

0.00%
52.58%
47.42%
100.00%

0.00%
73.08%
26.92%
100.00%

45.30%
64.40%
35.60%
100.00%

86.04%
0.00%
86.04%
13.96%

68.55%
0.00%
68.55%
31.45%

45.89%
0.00%
45.89%
54.11%

31.20%
25.20%
56.40%
43.60%

100.00%
80.54%
86.04%
0.36%
18.79%

100.00%
87.15%
65.37%
0.21%
28.09%

100.00%
90.30%
60.12%
0.19%
41.61%

100.00%
66.70%
46.50%
0.50%
2.90%

0.42
0.42
86.04%
45.53%
6.36%

0.77
0.77
68.55%
71.91%
22.62%

1.59
1.59
45.89%
71.65%
38.77%

1.61
1.17
56.40%
4.60%
10.50%

FY 2012
8.27%
37.34%

FY 2013
19.11%
58.96%

FY 2014
31.69%
58.75%

n.a
n.a

Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover

3.33
27
0.63

12.17
50
0.97

12.17
26
1.00

n.a
n.a
n.a

Debt Ratios
Debt to Net Worth
Current Liab. to Liab.

6.16
1.00

2.18
1.00

0.85
1.00

n.a
n.a

($200,647)
2.16

($69,098)
5.87

$165,822
14.02

n.a
n.a

1.59
86%
0.42
4.51
0.00

1.03
69%
0.77
3.09
0.00

1.00
46%
1.59
1.85
0.00

n.a
n.a
n.a
n.a
n.a

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios
Net Profit Margin
Return on Equity

Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 17

Appendix
Table: Sales Forecast
Sales Forecast
Sales
Individuals/families
Business Travellers
Memberships
Dispatch Fees
Total Sales
Direct Cost of Sales
Individuals/families
Business travelers
Subtotal Direct Cost of Sales

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

$4,000
$4,000
$5,000
$5,000
$18,000

$4,000
$4,000
$5,000
$5,000
$18,000

$4,000
$4,000
$5,000
$5,000
$18,000

$5,000
$4,000
$5,000
$5,000
$19,000

$5,000
$5,000
$5,000
$5,000
$20,000

$6,000
$5,000
$5,000
$5,000
$21,000

$6,000
$5,000
$5,000
$5,000
$21,000

$7,000
$5,000
$5,000
$5,000
$22,000

$7,000
$6,000
$5,000
$5,000
$23,000

$8,000
$6,000
$5,000
$5,000
$24,000

$8,000
$6,000
$5,000
$5,000
$24,000

$8,000
$6,000
$5,000
$5,000
$24,000

Nov
$1,350
$1,800
$3,150

Dec
$1,350
$1,800
$3,150

Jan
$1,350
$1,800
$3,150

Feb
$1,800
$1,800
$3,600

Mar
$1,800
$2,250
$4,050

Apr
$1,800
$2,250
$4,050

May
$1,800
$2,250
$4,050

Jun
$1,800
$2,250
$4,050

Jul
$2,250
$2,700
$4,950

Aug
$2,250
$2,700
$4,950

Sep
$2,250
$2,700
$4,950

Oct
$2,250
$2,700
$4,950

Page 1

Appendix
Table: Personnel
Personnel Plan
Mohammed
Part-time employee
Driver
Total People
Total Payroll

0%
0%
0%

Nov
$3,000
$0
$0
1

Dec
$3,000
$800
$2,200
4

Jan
$3,000
$800
$2,200
4

Feb
$3,000
$800
$1,800
4

Mar
$3,000
$800
$1,800
5

Apr
$3,000
$800
$1,800
5

May
$3,000
$800
$1,800
5

Jun
$3,000
$800
$1,800
5

Jul
$3,000
$800
$1,800
5

Aug
$3,000
$800
$1,800
5

Sep
$3,000
$800
$1,800
6

Oct
$3,000
$800
$1,800
6

$3,000

$6,000

$6,000

$5,600

$5,600

$5,600

$5,600

$5,600

$5,600

$5,600

$5,600

$5,600

Page 2

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

Nov
1
8.00%
8.00%
18.00%
0

Dec
2
8.00%
8.00%
18.00%
0

Jan
3
8.00%
8.00%
18.00%
0

Feb
4
8.00%
8.00%
18.00%
0

Mar
5
8.00%
8.00%
18.00%
0

Apr
6
8.00%
8.00%
18.00%
0

May
7
8.00%
8.00%
18.00%
0

Jun
8
8.00%
8.00%
18.00%
0

Jul
9
8.00%
8.00%
18.00%
0

Aug
10
8.00%
8.00%
18.00%
0

Sep
11
8.00%
8.00%
18.00%
0

Oct
12
8.00%
8.00%
18.00%
0

Page 3

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other
Total Cost of Sales

Nov
$18,000
$3,150
$0
$3,150

Dec
$18,000
$3,150
$0
$3,150

Jan
$18,000
$3,150
$0
$3,150

Feb
$19,000
$3,600
$0
$3,600

Mar
$20,000
$4,050
$0
$4,050

Apr
$21,000
$4,050
$0
$4,050

May
$21,000
$4,050
$0
$4,050

Jun
$22,000
$4,050
$0
$4,050

Jul
$23,000
$4,950
$0
$4,950

Aug
$24,000
$4,950
$0
$4,950

Sep
$24,000
$4,950
$0
$4,950

Oct
$24,000
$4,950
$0
$4,950

Gross Margin
Gross Margin %

$14,850
82.50%

$14,850
82.50%

$14,850
82.50%

$15,400
81.05%

$15,950
79.75%

$16,950
80.71%

$16,950
80.71%

$17,950
81.59%

$18,050
78.48%

$19,050
79.38%

$19,050
79.38%

$19,050
79.38%

$3,000
$150

$6,000
$175

$6,000
$200

$5,600
$225

$5,600
$250

$5,600
$300

$5,600
$300

$5,600
$300

$5,600
$300

$5,600
$300

$5,600
$300

$5,600
$300

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$0

$2,375
$50
$100
$450
$500
$450
$40,000

$7,075

$10,100

$10,125

$9,750

$9,775

$9,825

$9,825

$9,825

$9,825

$9,825

$9,825

$49,825

Profit Before Interest and Taxes


EBITDA
Interest Expense
Taxes Incurred

$7,775
$10,150
$1,900
$1,058

$4,750
$7,125
$1,887
$515

$4,725
$7,100
$1,873
$513

$5,650
$8,025
$1,860
$682

$6,175
$8,550
$1,847
$779

$7,125
$9,500
$1,833
$953

$7,125
$9,500
$1,820
$955

$8,125
$10,500
$1,807
$1,137

$8,225
$10,600
$1,793
$1,158

$9,225
$11,600
$1,780
$1,340

$9,225
$11,600
$1,767
$1,343

($30,775)
($28,400)
$1,753
($5,855)

Net Profit
Net Profit/Sales

$4,818
26.76%

$2,348
13.04%

$2,338
12.99%

$3,108
16.36%

$3,549
17.75%

$4,339
20.66%

$4,350
20.71%

$5,181
23.55%

$5,274
22.93%

$6,105
25.44%

$6,116
25.48%

($26,673)
-111.14%

Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Web site maintenance
Utilities
Insurance
Rent
Payroll Taxes
Members profit allocation
Total Operating Expenses

15%

Page 4

Appendix
Table: Cash Flow
Pro Forma Cash Flow
Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

$18,000
$18,000

$18,000
$18,000

$18,000
$18,000

$19,000
$19,000

$20,000
$20,000

$21,000
$21,000

$21,000
$21,000

$22,000
$22,000

$23,000
$23,000

$24,000
$24,000

$24,000
$24,000

$24,000
$24,000

$0
$285,000
$40,000
$0
$0
$0
$0
$343,000

$0
$0
$0
$0
$0
$0
$0
$18,000

$0
$0
$0
$0
$0
$0
$0
$18,000

$0
$0
$0
$0
$0
$0
$0
$19,000

$0
$0
$0
$0
$0
$0
$0
$20,000

$0
$0
$0
$0
$0
$0
$0
$21,000

$0
$0
$0
$0
$0
$0
$0
$21,000

$0
$0
$0
$0
$0
$0
$0
$22,000

$0
$0
$0
$0
$0
$0
$0
$23,000

$0
$0
$0
$0
$0
$0
$0
$24,000

$0
$0
$0
$0
$0
$0
$0
$24,000

$0
$0
$0
$0
$0
$0
$0
$24,000

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

$3,000
$260
$3,260

$6,000
$7,790
$13,790

$6,000
$7,277
$13,277

$5,600
$7,308
$12,908

$5,600
$7,936
$13,536

$5,600
$8,483
$14,083

$5,600
$8,685
$14,285

$5,600
$8,681
$14,281

$5,600
$8,874
$14,474

$5,600
$9,757
$15,357

$5,600
$9,920
$15,520

$5,600
$11,002
$16,602

$0
$0
$0
$0
$0
$285,000
$0
$288,260

$0
$2,000
$0
$0
$0
$0
$0
$15,790

$0
$2,000
$0
$0
$0
$0
$0
$15,277

$0
$2,000
$0
$0
$0
$0
$0
$14,908

$0
$2,000
$0
$0
$0
$0
$0
$15,536

$0
$2,000
$0
$0
$0
$0
$0
$16,083

$0
$2,000
$0
$0
$0
$0
$0
$16,285

$0
$2,000
$0
$0
$0
$0
$0
$16,281

$0
$2,000
$0
$0
$0
$0
$0
$16,474

$0
$2,000
$0
$0
$0
$0
$0
$17,357

$0
$2,000
$0
$0
$0
$0
$0
$17,520

$0
$2,000
$0
$0
$0
$0
$0
$18,602

$54,740
$89,740

$2,210
$91,950

$2,723
$94,673

$4,092
$98,765

$4,464
$103,229

$4,917
$108,146

$4,715
$112,861

$5,719
$118,580

$6,526
$125,106

$6,643
$131,749

$6,480
$138,230

$5,398
$143,628

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
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
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

0.00%

Page 5

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Starting Balances

Current Assets
Cash
Other Current Assets
Total Current Assets

$35,000
$0
$35,000

$89,740
$0
$89,740

$91,950
$0
$91,950

$94,673
$0
$94,673

$98,765
$0
$98,765

$103,229
$0
$103,229

$108,146
$0
$108,146

$112,861
$0
$112,861

$118,580
$0
$118,580

$125,106
$0
$125,106

$131,749
$0
$131,749

$138,230
$0
$138,230

$143,628
$0
$143,628

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$0
$0
$0
$35,000

$285,000
$2,375
$282,625
$372,365

$285,000
$4,750
$280,250
$372,200

$285,000
$7,125
$277,875
$372,548

$285,000
$9,500
$275,500
$374,265

$285,000
$11,875
$273,125
$376,354

$285,000
$14,250
$270,750
$378,896

$285,000
$16,625
$268,375
$381,236

$285,000
$19,000
$266,000
$384,580

$285,000
$21,375
$263,625
$388,731

$285,000
$23,750
$261,250
$392,999

$285,000
$26,125
$258,875
$397,105

$285,000
$28,500
$256,500
$400,128

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Liabilities and Capital


Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0
$0

$7,547
$285,000
$40,000
$332,547

$7,034
$283,000
$40,000
$330,034

$7,044
$281,000
$40,000
$328,044

$7,653
$279,000
$40,000
$326,653

$8,193
$277,000
$40,000
$325,193

$8,396
$275,000
$40,000
$323,396

$8,386
$273,000
$40,000
$321,386

$8,549
$271,000
$40,000
$319,549

$9,426
$269,000
$40,000
$318,426

$9,589
$267,000
$40,000
$316,589

$9,579
$265,000
$40,000
$314,579

$41,275
$263,000
$40,000
$344,275

Long-term Liabilities
Total Liabilities

$0
$0

$0
$332,547

$0
$330,034

$0
$328,044

$0
$326,653

$0
$325,193

$0
$323,396

$0
$321,386

$0
$319,549

$0
$318,426

$0
$316,589

$0
$314,579

$0
$344,275

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$35,000
$0
$0
$35,000
$35,000

$35,000
$0
$4,818
$39,818
$372,365

$35,000
$0
$7,165
$42,165
$372,200

$35,000
$0
$9,504
$44,504
$372,548

$35,000
$0
$12,612
$47,612
$374,265

$35,000
$0
$16,161
$51,161
$376,354

$35,000
$0
$20,500
$55,500
$378,896

$35,000
$0
$24,850
$59,850
$381,236

$35,000
$0
$30,031
$65,031
$384,580

$35,000
$0
$35,305
$70,305
$388,731

$35,000
$0
$41,410
$76,410
$392,999

$35,000
$0
$47,526
$82,526
$397,105

$35,000
$0
$20,853
$55,853
$400,128

Net Worth

$35,000

$39,818

$42,165

$44,504

$47,612

$51,161

$55,500

$59,850

$65,031

$70,305

$76,410

$82,526

$55,853

Page 6