Taxi Business Plan

City Taxi

Plan Outline

1.0 Executive Summary 2.0 Company Summary

3.0 Services

4.0 Market Analysis Summary

5.0 Strategy an !mplementation Summary ".0 Management Summary

#.0 $inancial %lan

Appendix

Executive Summary
City &axi is a San $rancisco' CA (ase company' )*ose mission is to provi e relia(le' timely' an sa+e ca( services (y using complete' in,car cre it an e(it car access' along )it* computer,ai e ispatc*. &*e company )ill esta(lis* its presence in t*e in ustry (y ac-uiring an existing taxi ca( association' Mig*ty Ca(' a +amily,o)ne (usiness t*at )as +orme 12 years ago. City &axi )ill provi e complete taxi ca( services using t*e latest e-uipment an tec*nology to +acilitate t*e travel o+ in ivi uals in an aroun t*e San $rancisco area. &*e company.s pro ucts an services s*o) t*at )e are an innovative' +or)ar t*inking company t*at recogni/es t*e nee to move )it* ever,c*anging customer nee s. At City &axi' our p*ilosop*y is one t*at emp*asi/es service' an a reali/ation t*at e++ective communication is a key component in our (usiness. &*e company also reali/es t*at' in a competitive environment' +lexi(ility an pro+essionalism maintain t*at lea ing e ge. &*e company *as rivers an employees t*at are *elp+ul' courteous' an +ully traine on t*e use o+ t*e computer ispatc* system. As an a e sa+ety measure +or (ot* rivers an passengers' City &axi ca(s are +itte )it* 0lo(al %ositioning Systems 10%S2' )*ic* ena(le t*e ca(s to (e tracke or locate in an emergency. All City &axi ca(s )ill (e clean' )ell maintaine ' an inspecte regularly +or sa+ety an com+ort. &*e company.s strategy is to (uil reputation an market s*are (y esta(lis*ing our (usiness o++ering as a via(le alternative to existing taxi ca( services in t*e area. &*e company.s goal in t*e next year is pursue an aggressive marketing campaign an +rom t*at' penetrate at least "53 o+ t*e market s*are. &*e company.s long,term goal is (e t*e top rate groun transportation company in San $rancisco. &*e company.s emp*asis is on t*e ispatc*' mo(ile ata' an cre it4 e(it car markets o+ t*e taxi in ustry. !n aggregate' t*ese markets are (elieve to represent potential sales in excess o+ 5116 million as o+ Marc* 1666. 7it*in t*ese markets' City &axi )ill +ocus on t*e more lucrative cre it car 4 e(it car segment. &*is segment' )*en intro uce into any area' *as starte out slo) (ut over a t*ree,year perio *as increase (y 203 eac* year in Marylan an 8irginia' an (y 25,353 in 9e) :ork eac* year. Companies )it* )*om City &axi competes are &ransportation' !nc.' Capital Ca(' :ello) Ca(' an ;iamon Ca(. &*eir )eaknesses are t*at t*ey o not *ave t*e cre it4 e(it car payment option' an some still use t*e ra io ispatc* system. &*e company *as a competitive a vantage' *o)ever' (ecause our tec*nology is uni-ue to t*e taxi in ustry in San $rancisco. &*e 0%S )ill ena(le t*e company to provi e timely service (y giving an accurate

estimate time o+ arrival 1E&A2. &*e cre it4 e(it car +eature )ill give customers convenience an privacy uring t*e transaction perio . <elia(le communications are essential un er all circumstances in t*is (usiness. As suc*' City &axi )ill use t*e =;& 5000 system. &*e =;& 5000 system esign provi es multiple levels o+ relia(ility to assure communications )ill (e maintaine un er t*e most rigorous con ition. &*e company )ill also run a state o+ t*e art call center t*at )ill (e esta(lis*e (y <ock)ell !nternational. &*e company is seeking 52.5 million o+ +inancing to +un t*e ac-uisition o+ Mig*ty Ca( Association an its initial operations. &*is +un ing )ill cover t*e purc*ase o+ Mig*ty Ca(' marketing' purc*ase o+ extra ve*icles' so+t)are' an *ar )are. %ro>ecte revenues +or 1666 to 2001 are 5200'000' 51.5 million' an 52.2 million' respectively.

1.1 Objectives
&*e company.s goal in t*e next year is to pursue an aggressive marketing campaign an +rom t*at' penetrate at least "53 o+ t*e market s*are. &*e company.s goal in t*e next t)o to +ive years is (e t*e top rate groun transportation company in t*e San $rancisco Metro Area (y continuously monitoring' evaluating' an +ollo)ing up on customer call, ins. =ey components o+ City &axi.s initial strategy can (e summari/e as +ollo)s. Esta(lis* <elations*ip )it* <ock)ell !nternational. &*e company is currently )orking to esta(lis* an evelop a )orking relations*ip )it* <ock)ell !nternational. &*is )ill ena(le City &axi to lock into t*e many services t*at t*ey o++er inclu ing' (ut not limite to? Managerial Call center an customer service e++iciency Management consulting &ec*nology consulting %ro uct management Continuous improvement

1.2 Missi n

&*e mission o+ City &axi is to provi e relia(le' timely' an sa+e ca( services (y using complete in,car cre it4 e(it car access' along )it* computer ai e ispatc*.

1.! "i#$li#$ts
@ig*lig*ts o+ City &axi

Tec$n l #y. City &axi *as a uni-ue 0lo(al %ositioning System 10%S2 t*at pinpoints t*e nearest river' t*us allo)ing t*e river to give an accurate E&A. Credit%debit card system. &*is system is t*e +irst o+ its kin in San $rancisco an is convenient +or (ot* t*e passenger an river (ecause approval is given instantly. &*e s)ipe mac*ine is locate in t*e (ack seat' giving t*e passenger privacy.

Trademar&s. &*e company is in t*e process o+ registering t*e name %atriot as a tra emark. Advertisin#. City &axi is alrea y in a vance services an market researc*. Seas ned mana#ement. &*e company.s management is *ig*ly experience an -uali+ie an *as extensive experience in t*e in ustry. Strate#ic relati ns$ips. &*e company *as' an )ill continue to esta(lis*' relations*ips )it* organi/ations t*at )ill en*ance pro+essional gro)t*. &*ese alliances are valua(le to City &axi (ecause t*ey allo) us to get up ates on tec*nology' a e tec* support' an a strong presence in t*e market. iscussions )it* &C! Me ia Services to provi e a vertising

Exclusive ri#$ts t s 't(are. City &axi *as t*e exclusive rig*ts to t*e latest taxi ca( so+t)are in San $rancisco.

C mpany Summary
Aegal Business ;escription? City &axi )as +oun e in 166# in San $rancisco' Cali+ornia' (y Mr. Co*nson &aylor. &*e company is a Cali+ornia C, Corporation un er t*e name %atriot' !nc. .(.a. City &axi.

2.1 C mpany Strate#y

&*e City &axi.s strategy is to saturate t*e market )it* television a s epicting t*e company as a premier taxi service. &*e company )ill leverage t*e ne)est in car tec*nology to ominate t*e cre it car segment o+ t*e market. City &axi )ill ominate t*e market (ecause no ot*er company *as t*is uni-ue +eature. &*e company.s strategy is to (uil reputation an market s*are in our target market (y esta(lis*ing our (usiness o++ering as a via(le alternative to existing taxi ca( services. City &axi inten s to get t*e con+i ence o+ customers an esta(lis* itsel+ as a company t*at provi es superior customer service (y using up to ate tec*nology to provi e timely an relia(le services.

2.2 C mpany "ist ry

As can (e seen in t*e c*art an ta(le (elo)' t*e company per+orme )ell its +irst year' (ut sales *ave not (een +ully actuali/e . &*at is t*e intent o+ t*is plan? to increase sales (y utili/ing our competitive a vantages an (y t*e ac-uisition o+ a rival taxi company.

Past Per' rmance

166" Sales 0ross Margin 0ross Margin 3 Eperating Expenses 50 50 0.003 50 166# 50 50 0.003 50 166D 5100'000 5"0'000 "0.003 520'000

Balance S*eet 166" 166# 166D

Current Assets Cas* Et*er Current Assets &otal Current Assets 50 50 50 50 50 50 545'000 513'400 55D'400

Aong,term Assets Aong,term Assets Accumulate ;epreciation &otal Aong,term Assets 50 50 50 50 50 50 5#5'000 510'000 5"5'000

&otal Assets

50

50

5123'400

Current Aia(ilities

Accounts %aya(le Current Borro)ing Et*er Current Aia(ilities 1interest +ree2 &otal Current Aia(ilities

50 50 50 50

50 50 50 50

523'"00 510'000 525'400 556'000

Aong,term Aia(ilities &otal Aia(ilities

50 50

50 50

525'000 5D4'000

%ai ,in Capital <etaine Earnings Earnings &otal Capital

50 50 50 50

50 50 50 50

53#'000 52'400 50 536'400

&otal Capital an Aia(ilities

50

50

5123'400

Et*er !nputs %ayment ;ays 0 0 30

2.! )is&s
&*e company recogni/es t*at it is su(>ect to (ot* market an tec*nological risks. &*e company.s vie) o+ its risks' as )ell as *o) eac* is (eing a resse ' is as +ollo)s?

* c& ut in industry ' r ne( cab c mpanies. City &axi is a)are t*at t*is is an extremely i++icult in ustry to get into. &o mitigate t*is risk' City &axi *as esta(lis*e an alliance )it* t*e lea ing ca( company in t*e San $rancisco area' &ransportation' !nc. &*e alliance )ill allo) City &axi to run un er t*eir color sc*eme. Anot*er )ay in )*ic* t*e company plans to mitigate t*is risk is (y ac-uiring an existing ca( company' Mig*ty Ca(.

Ac+uirin# insurance. City &axi )ill *ave to ac-uire extensive insurance to cover all aspects o+ operations' (ut )ill (e +ace )it* *ig* rates. &o lessen t*is risk' City &axi plans to use t*e relations*ip )it* &ransportation' !nc. to run un er t*eir insurance companies' $irst !nsurance o+ San $rancisco an Colum(ia !nsurance. Alternatively' t*e company plans to purc*ase insurance +rom 9e)ark !nsurance an Amalgamate !nsurance' )*ic* o++er lo)er rates. &*is )ill also (ring leverage in negotiating )it* &ransportation' !nc.

Ade+uate 'acility. City &axi reali/es t*at it is i++icult to locate a +acility )it* t*e space re-uire +or all operations. City &axi *as +oun a +acility )it* ample space +or all operations. &*ere is enoug* room to set up repair +acilities' an t*ere is a >acent space to store ve*icles.

2., -alue Pr p siti n

City &axi.s pro ucts an services o++er t*e +ollo)ing a vantages to customers?

C nvenience. City &axi.s pro ucts an services provi e t*e river an t*e customer )it* t*e convenience o+ a cre it4 e(it car system t*at gives instant approval. State. '.t$e.art Call Center. City &axi.s call center allo)s us to provi e a timely service (y picking up t*e closest ve*icle )*en a call comes in. 7*en a call comes in' it is put into t*e system' t*e system sen s a

message to ispatc*er' t*e system t*en tags t*e closest ve*icle in t*e /one' neig*(oring /one' on t*e )ay to t*e /one' or t*e ispatc*er can call.

Services
City &axi provi es taxi services utili/ing computer ispatc* to *elp )it* timely pick up an -uality customer care. &*e so+t)are an *ar )are systems use (y City &axi give customers convenience (y allo)ing t*em to use cre it an e(it car s in t*e taxi.

!.1 Service /escripti n

Taxi Cab Services &*e taxi river is o+ten t*e +irst contact t*at a visitor *as )it* San $rancisco an as suc*' City &axi reali/es t*e importance o+ +irst impressions an customer care. &*e company.s customer,oriente p*ilosop*y an its commitment to service are re+lecte in t*e care+ul selection o+ rivers an t*e compre*ensive training program. Customers can expect t*e +ollo)ing *ig* stan ar s )*en t*ey travel )it* City &axi? Clean an ti y taxis $rien ly an polite rivers Care+ul riving Most practical route taken

Maintenance%)epair Services &*is ivision o+ City &axi eals )it* t*e pure maintenance o+ ve*icles. ;rivers )ill (e c*arge at iscounte rates +or tune,ups' )*eel alignments' an ot*er repairs.

!.2 Tec$n l #y
0*OBA* POS1T1O2120 S3STEMS. City &axi *as a uni-ue 0lo(al %ositioning System 10%S2 t*at pinpoints t*e nearing river t*us allo)ing t*e river to give an accurate estimate time o+ arrival. )A/1O S3STEM. <elia(le communications are essential un er all circumstances. City &axi )ill use t*e =;& 5000 system esign (ecause it provi es multiple levels o+ relia(ility to assure communications )ill (e maintaine un er t*e most rigorous con ition. C)E/1T%/EB1T CA)/ S3STEM. City &axi )ill use t*e in,car cre it4 e(it car system' )*ic* is a ne) market segment +or t*e taxi in ustry in San $rancisco. &*is involves customers using t*eir e(it car s in any City &axi ca( )it* approval (eing given instantly' eliminating t*e nee to ial in to *ea o++ice +or approval num(ers. By using t*is system' t*e company )ill (e a ressing t*e nee +or convenience an relia(ility. City &axi also +eatures a computer, ai e ispatc* system )*ic* )ill (e represente un er t*e %atriot name. &*e company is currently in t*e process o+ making %atriot a tra emark. &*e company *as also applie +or a license to run a 460 narro) (an +re-uency an voice ata transmission. $rom t*e perspective o+ customers' t*e a vantage o+ City &axi.s pro ucts an services is t*e *ig* level o+ tec*nology' )*ic* lea s to superior customer service. !n contrast to competitors' City &axi.s pro ucts an services o++er convenience. &*e key pa an s)ipe mac*ine are (uilt into t*e (ack seat' t*us giving t*e customer privacy. 7*ereas competitors *ave to call in a cre it4 e(it car transaction +or approval' our customers )ill (e a(le to get on,t*e,spot approval (e+ore t*e river even pulls over.

!.! 4uture Services

City &axi plans to respon to market nee s (y +ollo)ing up )it* taxi plus 1)*eelc*air accessi(le taxi vans )it* cre it car access insi e2 )it* t*e next 5 years. City &axi (elieves it can capture t*is nic*e an a gain in overall market s*are. A itional plans +or next generation pro ucts an services inclu e rent to o)n options +or our rivers. !ntro uction o+ t*e company.s next generation pro uct an services is expecte to (e )it*in 12 mont*s.

Mar&et Analysis Summary

&*e company.s emp*asis is on t*e ispatc*' mo(ile ata' an cre it4 e(it car markets o+ t*e taxi in ustry. !n aggregate' t*ese markets are (elieve to represent potential sales in excess o+ 5116 million as o+ Marc* 1666. 7it*in t*ese markets' City &axi )ill +ocus on t*e more lucrative cre it4 e(it car segment. &*is segment' )*en intro uce into any area *as starte out slo)' (ut over a t*ree,year perio *as increase (y 203 eac* year in Marylan an 8irginia' an (y 25,353 in 9e) :ork eac* year. &*e company (elieves t*at t*e ma>or +uture tren in t*e in ustry )ill (e complete cre it car access +or consumers. &*e !nternational &axi Aivery Association 1!&AA2 +orecasts a very stea y gro)t* +or t*e taxi in ustry in t*e next +our years. Mar&et Si5e Statistics?
Estimate num(er o+ F.S. esta(lis*ments 9um(er o+ people employe in t*is in ustry &otal annual sales in t*is in ustry Average employees per esta(lis*ment Average sales per esta(lis*ment "'431 46'005 51.34 million 12 5.3 million

,.1 Mar&et Se#mentati n

Cust mers and Tar#et Mar&ets City &axi.s +ocus )ill (e on t*e cre it car market )it* target customers in t*e lo) to mi income range in t*e Metropolitan San $rancisco area. &*e target customers are motivate to use our services over t*at o+ competitors (ecause o+ t*e convenience an -uality associate )it* our services. Cust mer Buyin# Criteria 7e (elieve our customers c*oose our ca( service (ase on t*e +ollo)ing criteria?

Per' rmance. 7e )ork )it* one goal in min ? to get customers )*ere t*ey )ant to go' )*en t*ey )ant to go' promptly' e++iciently' com+orta(ly' an sa+ely. Superi r Service. &imely pick up' private usage' an customer care. 6uality. &*is involves provi ing courteous service in clean' )ell,maintaine cars. C nvenience. &*is involves t*e cre it4 e(it car +eature.

Mar&et Analysis
1666 %otential Customers Cre it Car Market Cas* Customers Et*er &otal 0ro)t* 2000 2001 2002 2003 CA0<

253 200'000 250'000 312'500 360'"25 4DD'2D1 25.003 103 100'000 110'000 121'000 133'100 14"'410 10.003 03 0 0 0 0 0 0.003

20."03 300'000 3"0'000 433'500 523'#25 "34'"61 20."03

,.2 Service Business Analysis

Mar&et 1.Taxi Cabs &*is category covers esta(lis*ments engage primarily in +urnis*ing passenger transportation (y automo(iles not operate on regular sc*e ules or (et)een +ixe terminals. &axi ca( +leet o)ners an organi/ations are inclu e ' regar less o+ )*et*er rivers are *ire ' rent t*eir ca(s' or are ot*er)ise compensate . 1ndustry Snaps$ t !n 1660' F.S. consumers spent an estimate 53.1# (illion on taxis. &*at year' approximately 32'"00 )ere employe in t*e in ustry as o)ners' managers' rivers' ispatc*ers' or mec*anics. Since t*e mi , 16#0.s' )*en a tren to)ar in epen ent contracting among rivers evelope ' t*ree out o+ every +our rivers (ecame in epen ent contractors license t*roug*' an renting t*eir ve*icles +rom' t*e taxi companies. Everall' t*e F.S. taxi in ustry consiste o+ 205'300 ve*icles in 1663. E+ t*ese' 1#0'D00 )ere license taxis an 1"'"00 )ere *ire cars' also re+erre to as executive se ans or liveries. &*e remain er )as mini(uses or vans' many o+ )*ic* )ere )*eelc*air,accessi(le +or transporting t*e el erly an isa(le . Or#ani5ati n and Structure Most taxi companies +ollo)e a similar organi/ational pattern. Managers' sometimes t*e company o)ners. ran t*e (usiness' *ire rivers' an per+orme ot*er a ministrative uties. ;ispatc*ers took calls an assigne ca(s to passenger locations. &*e position o+ ispatc*er once represente a promotion a)ar e to experience ca( rivers' )*ose +amiliarity )it* t*e city (est -uali+ie t*em +or t*e >o(. @o)ever' t*e increase in computer,(ase ispatc*ing in t*e early 1660.s prompte ca( companies to +avor computer skills over speciali/e kno)le ge o+ local geograp*y )*en +iling t*e ispatc*er position.

<egulation o+ t*e F.S. taxi in ustry varie +rom city to city. 7*ile almost all cities *a some +orm o+ licensing re-uirements' larger ur(an areas *a t*e strictest regulations. San $rancisco regulations +ocuse on +ares c*arge to customers' )it* rates assigne to esignate /ones o+ t*e city. Current C nditi ns !n 166D' "'342 taxi +leets' consisting o+ 144'000 cars' )ere operating in t*e Fnite States. En a national level' in t*e early 1660.s' taxi.s ma e approximately 2 (illion passenger trips a year. Most taxi +leets )ere small' +amily,o)ne (usinesses or in ivi ual partners*ipsG only 53 )ere corporations. Almost all operate )it*in a single municipality' an more t*an *al+ o+ all taxi companies *a +e)er t*an 10 ve*icles. !n rural areas' companies ten e to (e extremely small' )it* 1 to 3 cars availa(le +or customers. !n cities o+ 100'000 people' t*e average +leet si/e )as 20 cars. !n ur(an centers o+ 200'000 or more people' ca( companies retaine *un re s o+ cars an carrie more passengers t*an t*e multitu e o+ smaller companies com(ine . )esearc$ and Tec$n l #y Alt*oug* t*e taxi ca( in ustry )as not regar e as eman ing in a *ig* egree o+ tec*nology' several innovations *ave c*ange t*e )ay (usinesses operate. Computeri/e ispatc*ing,,in )*ic* ca(s )ere tracke (y computer an ispatc* instructions appeare only to t*e ca( assigne to a call,,allo)e more e++icient assignment o+ ca(s to passengers. Computeri/ation also *elpe reme y t*e pro(lem o+ H+are stealing'H in )*ic* one river intercepts a message meant +or anot*er an picks up t*e +irst river.s +are. Anot*er evelopment likely to c*ange t*e in ustry.s +ocus involve its use o+ certain ra io +re-uencies. !n t*e late 16D0.s an early 1660.s' )it* investment in cellular an igital communications skyrocketing' taxi ca( companies +oun t*emselves in possession o+ a valua(le asset in t*e +orm o+ t*e (roa cast +re-uencies grante t*em (y t*e $e eral Communications Commission. ;uring t*is time' t*e $CC' allo)ing t*em only t)o +re-uencies in any one area' *eavily restricte t*e cellular telep*one in ustry.s use o+ t*e air)aves. By t*e mi ,1660.s' some ca(,relate services' suc* as 9e) Cersey.s ispatc*er $leet Call' )ere in a strong position to (ecome players in t*e (urgeoning telecommunications in ustry. 1ndustry *eaders ;ue to increasing ecentrali/ation in t*e in ustry' +e) national taxi corporations )ere in operation in t*e early 1660.s. A +e) companies' *o)ever' many o+ )*ic* )ere o)ne (y larger *ol ing corporations' *a operations t*at reac*e (eyon t*e local. $igure 1 s*o)s t*e in ustry lea ers in t*e San $rancisco area an t*eir s*are o+ t*e market. 4i#ure 1 Brea&d (n ' Mar&et S$are in San 4rancisc .
Company &ransportation' !nc. Capital Ca( :ello) Ca( ;iamon Ca( Et*ers &otal Market S*are 3D3 233 133 D3 1D3 1003

Mar&et 2. Taxi t p /isplay &axi top isplay is a market +rom )*ic* City &axi can gain a su(stantial amount o+ revenue. &*is *as (een s*o)n to (e a via(le means o+ a vertising +or a num(er o+ companies an it is use )i ely. $igure 2 s*o)s t*e gro)t* in t*e taxi top isplay market segment +rom 1663.
1664 "00 1665 1'"#0 166" 2'000 166# 3'500 34166D 5'000

,.2.1 C mpetiti n and Buyin# Patterns

Competitive t*reats come +rom existing taxi ca( companies in t*e San $rancisco area. &*eir )eaknesses are' *o)ever' t*at t*ey o not *ave t*e cre it4 e(it car payment option' an some still use t*e ra io ispatc* system. &ransportation' !nc. *as computer,ai e ispatc* (ut no cre it car processing capa(ilities. Capital Ca(' :ello) Ca(' an ;iamon Ca( all *ave ra io ispatc* )it* selecte rivers accepting cre it car s. @o)ever' t*ese rivers o not o++er in,car processing' approval must (e given at t*e *ome o++ice. Taxi Cabs. City &axi.s competitors inclu e existing taxi ca( companies t*at *ave (een operating in t*e San $rancisco area. Speci+ically' competitors inclu e? &ransportation' !nc. is a +amily o)ne company t*at *as (een in (usiness +or 20 years. &*e company' run (y Mr. Co*n Bro)n' is consi ere an in ustry lea er in t*e +iel o+ taxi ca( services. &*e company also o)ns a real estate agency' an 2 insurance companies )*ic* )ork *an in *an )it* t*e taxi (usiness. &*ey lease +acilities to ot*er ca( companies as )ell. &*e company *as a +leet o+ 1'200 cars' )it* *al+ un er t*e river,o)ner program an t*e ot*er *al+ company o)ne .

:ello) Ca( )as +oun e 25 years ago' its presi ent is Mr. Mic*ael 7*ite. :ello) Ca( *as a +leet o+ 2'200 ca(s' most o+ )*ic* are river,o)ne . &*e company still uses t*e ra io ispatc* system an one t*ir o+ t*eir +leet is e-uippe )it* t*e cre it4 e(it car +eature. &*e ra)(ack to t*eir system is t*at approval +or any transaction takes place in t*eir *ome o++ice.

;iamon Ca( is o)ne an operate (y Mr. Cay 9e)man. &*e company uses t*e ra io ispatc* system an *as a +leet o+ approximately D00 ca(s. &o)n Ca( is an organi/ation run (y Mr. %ete 7*ite*ea . &*e company uses t*e ra io ispatc* system an *as a +leet o+ D00 ca(s.

City &axi.s competitive a vantage is our cutting e ge tec*nology )*ic* is uni-ue to t*e taxi in ustry in San $rancisco. &*e 0%S )ill ena(le City &axi to provi e timely service (y giving an accurate E&A. &*e cre it4 e(it car +eature )ill give our customers convenience an privacy uring t*e transaction perio . Maintenance and )epair Services. City &axi.s competitors inclu e t*e a(ove mentione companies an general maintenance an repair s*ops in t*e area. Some o+ t*ese operations o not *ave t*e capacity to *an le a large amount o+ ve*icles. 7*ile ot*ers may *ave t*e capacity' t*eir operations are run in a primitive manner' an City &axi inten s to capitali/e on t*at. City &axi.s competitive a vantages inclu e t*e availa(ility o+ space' operations management' an skille employees.

Strate#y and 1mplementati n Summary

Sales Strate#y At City &axi' t*e sales process is t*e same +or eac* o+ City &axi.s t)o areas? taxi ca( services an maintenance an repair services. &*e company inten s to esta(lis* its presence online (y eveloping a )e(site +rom )*ic* sales )ill (e generate . &*e ;istrict o+ Colum(ia Ca( Commission regulates pricing +or taxi ca( services.

Sales 4 recast
1666 Sales All services Et*er &otal Sales 5200'000 51'500'000 52'200'000 50 50 50 2000 2001

5200'000 51'500'000 52'200'000

;irect Cost o+ Sales All services Et*er Su(total ;irect Cost o+ Sales

1666 5"5'000 50 5"5'000

2000 5125'000 50 5125'000

2001 5100'000 50 5100'000

7.1 Mar&etin# Strate#y

Mar&etin# Strate#y City &axi markets its pro ucts an services as solutions to transportation nee s in t*e city o+ San $rancisco. Et*er target markets inclu e customers in t*e lo) to mi income range. ;irect mailings an television a vertising )ill (e t*e company.s main marketing c*annels. &*ese c*annels ensure t*at target customers are reac*e repeate ly an e++ectively. &*e company )ill monitor its market position t*roug* constant tracking (y 8alue %ack an &C! Me ia' !nc. &C! Me ia Services , &*e propose a vertising package' title H&*e C*ampions*ip'H )ill yiel ? Ene commercial in every regular season 9BA game on &9& +or t*e 1666,2000 season Ene commercial in 2000G 1666,2000 regular season 7i/ar games on @&S 600 " a.m. , 12 a.m. commercials on a minimum o+ 4 net)orks A s on t*e &8 gui e c*annel

7.1.1 Mar&etin# Pr #rams

City &axi plans to communicate t*roug* irect mail an television a vertising to generate sales. &C! ME;!A Services an 8al,%ak ;irect Marketing )ill spear*ea t*e marketing campaign. &*e key message associate )it* our pro ucts an services is cleaner' e++icient' +lexi(le' an convenient taxi ca(s. A itional %lans,,&*e company also *as a itional promotional plans )*ic* are iverse an inclu e a range o+ marketing communications escri(e (elo)?

Trade s$ (s? company representatives )ill atten an participate in several tra e s*o)s to keep up )it* c*anges in t*e in ustry. Print advertisin# and article publis$in# ? t*e company.s print a vertising program )ill inclu e a vertisements in local ne)spapers an local >ournal pu(lications like t*e San $rancisco Maga/ine. City &axi )ill +eature articles on services provi e in t*e a(ove mentione pu(lications.

-al.Pa& /irect Mar&etin#? t*e c*allenge o+ any irect marketer is to take a massive amount o+ amorp*ous ata an create tailore messages to targete market segments. %er*aps no company is more +amiliar )it* t*at c*allenge t*an $lori a,(ase 8al,%ak ;irect Marketing' a lea er in local' cooperative irect mail a vertising. More t*an 53 million *ouse*ol s in t*e Fnite States receive 8al,%ak coupons in t*eir mail(ox. !n 166#' 8al, %ak esigne ' printe an istri(ute more t*an 11 (illion incentive coupons promoting various pro ucts an services. 8al,%ak targets as +e) as 10'000 *ouse*ol s or as many as 53 million )it* any given mailing.

7.2 Strate#ic Alliances

&*e company *as strategic alliances )it* =ing Communications' Sur+si e Systems' an Commercial Electronic Services. &*ese alliances are valua(le to City &axi (ecause t*ey allo) t*e company to get up ates on tec*nology an a e tec* support' an t*ey are valua(le to t*e ally +irms (ecause City &axi is a gro)ing customer. All agreements come )it* a stipulation t*at i+ ne) tec*nology (ecomes availa(le' City &axi )ill (e noti+ie an provi e )it* t*e tec*nology to expan on current tec*nology' *elping us maintain a competitive e ge. ;etails o+ t*e strategic relations*ips t*at City &axi *as are given (elo).

1nternati nal Taxi cab and *ivery Ass ciati n 81T*A9. !&AA is a non,pro+it association t*at represents t*e private' +or,pro+it groun transpiration in ustry. City &axi )ill use t*e resources ma e availa(le (y !&AA to get t*e latest in ustry tren s an tra e s*o) in+ormation. !&AA con ucts a variety o+ researc* pro>ects on in ustry issues an t*e results o+ t*ese stu ies are summari/e in !&AA pu(lications an ma e availa(le to association mem(ers at a re uce +ee.

) c&(ell 1nternati nal . <ock)ell !nternational *as (een (roug*t in to *elp evelop t*e call center an ai )it* t*e evelopment o+ superior customer service tec*ni-ues. City &axi )ill )ork )it* <ock)ell !nternational in t*e setup o+ a cost e++icient (ut pro uctive call center.

TC1 Media: 1nc. Currently' City &axi is un er a ver(al agreement )it* &C! Me ia' !nc. to market its pro uct an services t*roug* various ca(le net)orks. Sur'side Systems. Sur+si e Systems )ill (e t*e company.s supplier o+ ispatc* so+t)are an CA; so+t)are. ;in# C mmunicati ns. =ing Communications )ill (e t*e company.s supplier o+ mo(ile ata an in,car cre it4 e(it car processing e-uipment *ar )are. =ing Communications *as ma e a commitment an guarantee t*at t*ey )ill provi e inter+ace to Sur+si e Systems.

Transp rtati n: 1nc. &*is alliance is a (usiness relations*ip (et)een Cerry Sc*a+er 1&ransportation' !nc.2 an Co*nson &aylor 1City &axi2. &ransportation' !nc. is a competitor' (ut t*e relations*ip allo)s City &axi to learn +rom t*eir 20,year experience in t*e (usiness an to overcome t*e s*ort+alls t*ey *ave experience .

Bar(

d: 1nc. Bar)oo )ill (e t*e company.s source o+ use taxis )*en t*e nee to a

to our +leet arises.

-al.Pa& /irect Mar&etin#. 8al,%ak is a +ull,service marketing company t*at o++ers a simple' cost,e++ective )ay o+ increasing (usiness. 8al,%ak pioneere local cooperative irect mail in 16"D' an *as (een t*e in ustry lea er +or over 30 years. &*e relations*ip gives us access to t*eir po)er+ul' cost e++ective variety o+ a vertising +ormats allo)ing us to evelop a irect mail program t*at is rig*t +or our (usiness.

C mmercial Electr nics Services 8CES9. CES is a supplier o+ a vance tec*nology systems use in taxi ca(s. &*e relations*ip )ill allo) City &axi to get t*e latest tec*nology an t*e (ene+it o+ t*eir excellent tec* support. All systems are connecte to t*eir o++ices an given a serial num(er' t*at )ay' t*ey are a(le to locate t*e system' evaluate t*e pro(lem' an +ix it rig*t a)ay.

Mi#$ty Cab B dy S$ p. &*e o)ner o+ Mig*ty Ca( also o)ns a (o y s*op. City &axi )ill seek to esta(lis* a relations*ip )it* it +or (o y )ork an to)ing services.

Mana#ement Summary
Or#ani5ati n &*e company.s management p*ilosop*y is (ase on responsi(ility an mutual respect. City &axi *as an environment an structure t*at encourages pro uctivity an respect +or customers an +ello) employees. &*e City &axi team is organi/e into t)o groups?

1. Taxi Cabs. &*e taxi ca(s ivision )ill consist o+ t*e +leet o+ taxis' river o)ne an company o)ne ' t*e call
center' an a ministration. Everall' City &axi )ill *ave approximately 20 employees in t*is ivision. &*e management o+ all aily operations )it*in City &axi )ill (e *an le in t*is ivision. Mr. &aylor' t*e CEE' )ill (e responsi(le +or t*e purc*ase o+ ve*icles an ealing )it* ven ors an suppliers. &*ere )ill (e 10 to 20 employees in t*e call center' t*ree supervisors' t*ree ispatc*ers' an o++ice manager' a ata entry clerk' an an employee responsi(le +or accounts receiva(les4paya(les.

2. Maintenance and )epair Services. &*is ivision )ill eal )it* t*e maintenance o+ ve*icles. ;rivers )ill (e
c*arge at iscounte rates +or tune,ups' )*eel alignments' an ot*er repairs. &*is ivision )ill (e sta++e )it* seven employees to (egin )it*. O''icers and ;ey Empl yees City &axi.s management is *ig*ly experience an -uali+ie . =ey mem(ers o+ City &axi.s management teams' t*eir (ackgroun s' an responsi(ilities are as +ollo)s. Mr. Co*nson &aylor' %resi ent an CEE. Mr. %eter Cackson' Senior 8ice %resi ent , Eperations. Ms. 0len a Cones' Call Center Supervisor.

Pers nnel Plan

1666 &axi Ca(s I A ministrative Maintenance I <epair &otal %eople 2000 2001

510D'"6" 53"5'21# 5365'"52 510D'"65 515"'522 51"6'5"5 D 1# 20

&otal %ayroll

521#'361 5521'#36 55"5'21#

4inancial Plan

&*e company is seeking 52.5 million o+ +inancing to +un t*e ac-uisition o+ Mig*ty Ca( Association an its initial operations. &*is +un ing )ill cover t*e purc*ase o+ Mig*ty Ca(' marketing' purc*ase o+ extra ve*icles' so+t)are' an *ar )are.

<.1 1mp rtant Assumpti ns

&*e ta(le (elo) s*o)s t*e key assumptions +or City &axi.

0eneral Assumpti ns
1666 %lan Mont* Current !nterest <ate Aong,term !nterest <ate &ax <ate Et*er 1 10.003 10.003 25.423 0 2000 2 10.003 10.003 25.003 0 2001 3 10.003 10.003 25.423 0

<.2 Brea&.even Analysis

City &axi.s Break,even Analysis in icates t*at t*e +irm *as a strong (alance o+ costs an sales. &*e company estimates a mont*ly (reak,even sales volume o+ approximately 543'000' )*ic* )ill (e reac*e (y $iscal :ear 1$:2 2000.

Brea&.even Analysis

Mont*ly <evenue Break,even

543'333

Assumptions?

Average %ercent 8aria(le Cost Estimate Mont*ly $ixe Cost

323 526'250

<.! Pr jected Pr 'it and * ss

City &axi is in t*e early stage o+ evelopment' t*us initial pro>ections *ave only (een ma e on accounts t*at are (elieve to most rive t*e income statement.

Pr 4 rma Pr 'it and * ss

1666 Sales ;irect Cost o+ Sales Et*er &otal Cost o+ Sales 5200'000 5"5'000 55'000 5#0'000 2000 51'500'000 5125'000 510'000 5135'000 2001 52'200'000 5100'000 515'000 5115'000

0ross Margin 0ross Margin 3

5130'000 "5.003

51'3"5'000 61.003

52'0D5'000 64.##3

Expenses %ayroll Sales an Marketing an Et*er Expenses ;epreciation <esearc* I ;evelopment Ftilities !nsurance %ayroll &axes Et*er 521#'361 5"4'000 514'66# 515'000 52'000 55'000 532'"06 50 5521'#36 51"4'000 51#'500 525'000 52'000 55'000 5#D'2"1 50 55"5'21# 5214'000 51#'500 540'000 52'000 55'000 5D4'#D3 50

&otal Eperating Expenses

5350'66#

5D13'500

562D'500

%ro+it Be+ore !nterest an &axes EB!&;A !nterest Expense &axes !ncurre

15220'66#2 1520"'0002 53'33# 50

5551'500 55"6'000 52'D41 513#'1"5

51'15"'500 51'1#4'000 52'0D4 5263'414

9et %ro+it 9et %ro+it4Sales

15224'3342 ,112.1#3

5411'464 2#.433

5D"1'002 36.143

<., Pr jected Cas$ 4l (

&*e ta(le (elo) outlines t*e company.s cas* +lo)s +or $: 1666,2001. &*e re-uire 52.5 million )ill (e spent to ac-uire Mig*ty Ca(.s operations 151.25 million2' as )ell as to purc*ase a itional property 15250'0002 an e-uipment 15200'0002. An a itional 5500'000 )ill (e spent on ot*er s*ort,term assets.

Pr 4 rma Cas$ 4l (
1666 Cas* <eceive 2000 2001

Cas* +rom Eperations Cas* Sales Su(total Cas* +rom Eperations 5200'000 5200'000 51'500'000 51'500'000 52'200'000 52'200'000

itional Cas* <eceive 50 50 50 50 50 50 52'500'000 52'#00'000 50 50 50 50 50 50 50 51'500'000 50 50 50 50 50 50 50 52'200'000

Sales &ax' 8A&' @S&40S& <eceive 9e) Current Borro)ing 9e) Et*er Aia(ilities 1interest,+ree2 9e) Aong,term Aia(ilities Sales o+ Et*er Current Assets Sales o+ Aong,term Assets 9e) !nvestment <eceive Su(total Cas* <eceive

Expen itures

1666

2000

2001

Expen itures +rom Eperations Cas* Spen ing Bill %ayments Su(total Spent on Eperations 521#'361 5200'065 541#'4D" 5521'#36 5516'5#3 51'041'312 55"5'21# 5#36'2"" 51'304'4D3

itional Cas* Spent 50 53'000 50 50 5500'000 51'#00'000 50 52'"20'4D" 50 53'000 50 54'1D1 50 50 50 51'04D'463 50 53'000 50 54'651 50 50 50 51'312'434

Sales &ax' 8A&' @S&40S& %ai Eut %rincipal <epayment o+ Current Borro)ing Et*er Aia(ilities %rincipal <epayment Aong,term Aia(ilities %rincipal <epayment %urc*ase Et*er Current Assets %urc*ase Aong,term Assets ;ivi en s Su(total Cas* Spent

9et Cas* $lo) Cas* Balance

5#6'514 5124'514

5451'50# 55#"'021

5DD#'5"" 51'4"3'5D#

<.7 Pr jected Balance S$eet

&*e ta(le (elo) provi es City &axi.s actual an pro>ecte (alance s*eets +or 1666,2001.

Pr 4 rma Balance S$eet

1666 Assets 2000 2001

Current Assets Cas* Et*er Current Assets &otal Current Assets 5124'514 5513'400 55#"'021 51'4"3'5D# 5513'400 5513'400

5"3#'614 51'0D6'421 51'6#"'6D#

Aong,term Assets Aong,term Assets Accumulate ;epreciation &otal Aong,term Assets &otal Assets 51'##5'000 51'##5'000 51'##5'000 524'66# 542'46# 556'66#

51'#50'003 51'#32'503 51'#15'003 52'3D#'61# 52'D21'624 53'"61'660

Aia(ilities an Capital

1666

2000

2001

Current Aia(ilities Accounts %aya(le Current Borro)ing Et*er Current Aia(ilities Su(total Current Aia(ilities 515'451 5#'000 525'400 54#'D51 545'145 54'000 525'400 5#4'545 5"2'1"0 51'000 525'400 5DD'5"0

Aong,term Aia(ilities &otal Aia(ilities

525'000 5#2'D51

520'D16 565'3"4

515'D"D 5104'42D

%ai ,in Capital <etaine Earnings Earnings &otal Capital &otal Aia(ilities an Capital

52'53#'000 52'53#'000 52'53#'000 52'400 15221'6342 15224'3342 5411'464 51D6'5"0 5D"1'002

52'315'0"" 52'#2"'5"0 53'5D#'5"2 52'3D#'61# 52'D21'624 53'"61'660

9et 7ort*

52'315'0"" 52'#2"'5"0 53'5D#'5"2

<.= Business )ati s

&*e +ollo)ing ta(le contains important (usiness ratios +rom t*e taxi ca( in ustry' as etermine (y t*e Stan ar !n ustry Classi+ication 1S!C2 !n ex J4121' &axi Ca(s.

)ati Analysis
1666 Sales 0ro)t* 100.003 2000 "50.003 2001 4"."#3 !n ustry %ro+ile 0.503

%ercent o+ &otal Assets Et*er Current Assets &otal Current Assets Aong,term Assets &otal Assets 21.503 2".#13 #3.263 100.003 1D.163 3D."13 "1.363 100.003 13.613 53.553 4".453 100.003 45.603 "3.003 3#.003 100.003

Current Aia(ilities Aong,term Aia(ilities &otal Aia(ilities

2.003 1.053 3.053

2."43 0.#43 3.3D3

2.403 0.433 2.D33

26.103 2#.003 5".103

9et 7ort*

6".653

6"."23

6#.1#3

43.603

%ercent o+ Sales Sales 0ross Margin Selling' 0eneral I A ministrative Expenses A vertising Expenses %ro+it Be+ore !nterest an &axes 100.003 "5.003 1##.253 25.003 ,110.503 100.003 61.003 "3.563 10.003 3".##3 100.003 64.##3 55.443 6.063 52.5#3 100.003 D2.503 5D.003 1.003 2."03

Main <atios Current Kuick &otal ;e(t to &otal Assets %re,tax <eturn on 9et 7ort* %re,tax <eturn on Assets 13.33 13.33 3.053 ,6."63 ,6.363 14."1 14."1 3.3D3 20.123 16.443 22.32 22.32 2.D33 32.1D3 31.2#3 1.5D 1.22 5".103 3."03 D.103

itional <atios

1666 ,112.1#3 ,6."63

2000 2#.433 15.063

2001 36.143 24.003 n.a n.a

9et %ro+it Margin <eturn on E-uity

Activity <atios Accounts %aya(le &urnover %ayment ;ays &otal Asset &urnover 12.42 31 0.0D 12.1# 20 0.53 12.1# 2" 0."0 n.a n.a n.a

;e(t <atios ;e(t to 9et 7ort* Current Aia(. to Aia(. 0.03 0."" 0.03 0.#D 0.03 0.D5 n.a n.a

Ai-ui ity <atios 9et 7orking Capital !nterest Coverage 5560'0"3 ,"".22 51'014'D#" 164.13 51'DDD'42# 554.D5 n.a n.a

itional <atios 11.64 23 1.DD 33 1."D 23 n.a n.a

Assets to Sales Current ;e(t4&otal Assets

Aci &est Sales49et 7ort* ;ivi en %ayout

13.33 0.06 0.00

14."1 0.55 0.00

22.32 0."1 0.00

n.a n.a n.a

Appendix
Sales Forecast Jan Sales All services Ot!er "otal Sales 0% $16,66 $16,66 $16,66 $16,66 $16,66 $16,66 $16,66 0% $0 $0 $0 $0 $0 $0 $0 $16,66 $16,66 $0 $0 $16,66 $16,66 $0 $0 $16,66 $0 $16,66 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$16,66 $16,66 $16,66 $16,66 $16,66 $16,66 $16,66

$16,66 $16,66

$16,66 $16,66

Direct #ost o$ Sales All services Ot!er Subtotal Direct #ost o$ Sales

Jan $%,&1 $0 $%,&1

Feb $%,&1 $0 $%,&1

Mar $%,&1 $0 $%,&1

Apr $%,&1 $0 $%,&1

May $%,&1 $0 $%,&1

Jun $%,&1 $0 $%,&1

Jul $%,&1 $0 $%,&1

Aug $%,&1 $0 $%,&1

Sep $%,&1 $0 $%,&1

Oct $%,&1 $0 $%,&1

Nov $%,&1 $0 $%,&1

Dec $%,&1 $0 $%,&1

Personnel Plan Jan "a'i #abs ( A)*inistrative Maintenance ( -epair "otal .eople Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $+,0%, $+,0%, ,

0% $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, 0% $+,0% , $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, $+,0%, , , , , , , , , , ,

"otal .ayroll

$1,,11% $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116

General Assumptions Jan .lan Mont! #urrent 1nterest -ate 3ong4ter* 1nterest -ate "a' -ate Ot!er 1 Feb / Mar 0 Apr & May % Jun 6 Jul Aug , Sep + Oct 10 Nov 11 Dec 1/

10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 10200% 00200% /%200% /%200% /%200% /%200% /%200% /%200% /%200% /%200% /%200% /%200% /%200% 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss Jan Sales Direct #ost o$ Sales Ot!er "otal #ost o$ Sales $16,66 $%,&1 $&1 $%,,00 Feb $16,66 $%,&1 $&1 $%,,00 Mar $16,66 $%,&1 $&1 $%,,00 Apr $16,66 $%,&1 $&1 $%,,00 May $16,66 $%,&1 $&1 $%,,00 Jun $16,66 $%,&1 $&1 $%,,00 Jul $16,66 $%,&1 $&1 $%,,00 Aug $16,66 $%,&1 $&1 $%,,00 Sep $16,66 $%,&1 $&1 $%,,00 Oct $16,66 $%,&1 $&1 $%,,00 Nov $16,66 $%,&1 $&1 $%,,00 Dec $16,66 $%,&1 $&1 $%,,00

5ross Margin 5ross Margin %

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

$10,,00 6%200%

6'penses .ayroll Sales an) Mar7eting an) Ot!er 6'penses Depreciation -esearc! ( Develop*ent 8tilities 1nsurance .ayroll "a'es 1%% Ot!er $1,,11% $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116

$%,000

$%,000

$%,000

$%,000

$%,000

$%,000

$%,000

$%,000

$%,000

$%,000

$%,000

$%,000

$6/% $1,/%0 $16 $&1 $/, 1 $0

$6/% $1,/%0 $16 $&1 $/, 1 $0

$6/% $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

$1,&%, $1,/%0 $16 $&1 $/, 1 $0

"otal Operating 6'penses

$/,,6/&

$/,,6/%

$/,,6/%

$/+,&%,

$/+,&%,

$/+,&%,

$/+,&%,

$/+,&%,

$/+,&%,

$/+,&%,

$/+,&%,

$/+,&%,

.ro$it 9e$ore 1nterest an) "a'es 691"DA 1nterest 6'pense "a'es 1ncurre)

:$1 , +1; :$1 , +/; :$1 , +/; :$1,,6/%; :$1,,6/%; :$1,,6/%; :$1,,6/%; :$1,,6/%; :$1,,6/%; :$1,,6/%; :$1,,6/%; :$1,,6/%; :$1 ,166; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; :$1 ,16 ; $/+0 $0 $/,, $0 $/,% $0 $/,0 $0 $/,1 $0 $/ + $0 $/ $0 $/ % $0 $/ 0 $0 $/ 1 $0 $/6+ $0 $/6 $0

Net .ro$it Net .ro$it<Sales

:$1,,0,0; :$1,,0 +; :$1,,0

; :$1,,+0,; :$1,,+06; :$1,,+0&; :$1,,+0/; :$1,,+00; :$1,,,+,; :$1,,,+6; :$1,,,+0; :$1,,,+1;

410,2&,% 410,2&,% 410,2&6% 41102&%% 41102&&% 41102&/% 41102&1% 41102&0% 411020+% 411020 % 4110206% 411020%%

Pro Forma Cash Flow Jan #as! -eceive) Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

#as! $ro* Operations

#as! Sales Subtotal #as! $ro* Operations

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

$16,66 $16,66

A))itional #as! -eceive) Sales "a', =A", >S"<5S" -eceive) Ne? #urrent 9orro?ing Ne? Ot!er 3iabilities :interest4 $ree; Ne? 3ong4 ter* 3iabilities Sales o$ Ot!er #urrent Assets Sales o$ 3ong4ter* Assets Ne? 1nvest*ent -eceive) Subtotal #as! -eceive)

0200%

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $/,%00,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$16,66

$16,66 $/,%16,66

$16,66

$16,66

$16,66

$16,66

$16,66

$16,66

$16,66

$16,66

$16,66

6'pen)itures

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

6'pen)itures $ro* Operations #as! Spen)ing 9ill .ay*ents Subtotal Spent on Operations $1,,11% $1,,116 $/&,10& $16,00 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $1,,116 $16,00% $16,000 $16,001 $1%,+++ $1%,++6 $1%,++& $1%,++/ $1%,++0 $1%,+,, $1,,116 $1%,+,6

$&/,/&+ $0&,1/0

$0&,1/1 $0&,11+ $0&,11

$0&,11% $0&,11/ $0&,110 $0&,10, $0&,106 $0&,10&

$0&,10/

A))itional #as! Spent Sales "a', =A", $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

>S"<5S" .ai) Out .rincipal -epay*ent o$ #urrent 9orro?ing Ot!er 3iabilities .rincipal -epay*ent 3ong4ter* 3iabilities .rincipal -epay*ent .urc!ase Ot!er #urrent Assets .urc!ase 3ong4ter* Assets Divi)en)s Subtotal #as! Spent

$/%0

$/%0

$/%0

$/%0

$/%0

$/%0

$/%0

$/%0

$/%0

$/%0

$/%0

$/%0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $%00,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0 $0

$0 $1, 00,000 $0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0 $0&,0%/

$&/,&++ $0&,0 0 $/,/0&,0 1 $0&,06+ $0&,06

$0&,06% $0&,06/ $0&,060 $0&,0%, $0&,0%6 $0&,0%&

Net #as! Flo? #as! 9alance

:$/%,,0/; :$1 , 06; $/,/,/+6 :$1 , 0/; :$1 , 00; :$1 ,6+,; :$1 ,6+6; :$1 ,6+&; :$1 ,6+/; :$1 ,6+0; :$1 ,6, ; :$1 ,6,%; $1+,16, $1,&6/ $/,0, %, $/66,0%6 $/&,,0%6 $/00,6%, $/1/,+6/ $1+%,/6, $1 ,% $1%+,,, $1&/,/00 $1/&,%1&

Pro Forma Balance Sheet Jan Assets Starting 9alance s Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

#urrent Assets #as! Ot!er #urrent Assets "otal #urrent Assets $&%,000 $1+,16, $1,&6/ $/,0, %, $/66,0%6 $/&,,0%6 $/00,6%, $/1/,+6/ $1+%,/6, $1 ,% $1%+,,, $1&/,/00 $1/&,%1&

$10,&00 $10,&00 $10,&00 $%10,&00 $%10,&00 $%10,&00 $%10,&00 $%10,&00 $%10,&00 $%10,&00 $%10,&00 $%10,&00 $%10,&00

$%,,&00 $0/,%6, $1&,,6/ $ + ,1%, $

+,&%6 $ 61, %6 $ &&,0%, $ /6,06/ $ 0,,66, $6+0,+

$6 0,/,

$6%%,600 $60 ,+1&

3ong4ter* Assets 3ong4ter* $1, $ %,000 $ %,000 $ %,000 Assets %,00 $1, 0 %,00 $1, 0 %,00 $1, 0 %,00 $1, 0 %,00 $1, 0 %,00 $1, 0 %,00 $1, 0 %,00 $1, 0 %,00 $1, 0 %,00 0

Accu*ulate ) $10,000 $10,6/% $11,/%0 Depreciatio n

$11,, %

$10,000

$1&, +1

$16,/&+

$1 , 0

$1+,16%

$/0,6/0

$//,0,1

$/0,%0+

$/&,++

"otal 3ong4 $1, 60,1/ $1, 61,66 $1, 60,/0 $1, %,, % $1, % ,/+ $1, %%,,0 $1, %&,0 $1, %/,+1 $1, %1,&6 $1, %0,00 $6%,000 $6&,0 % $60, %0 ter* Assets % + 1 0 % + 1 0 "otal Assets $1/0,&0 $/,%60,/, $/,%&1,1/ $/,%/1,+6 $/,%0/,,0 $/,&,0,6% $/,&6&,%0 $/,&&%,0% $/,&/6,/0 $/,&0 ,06 $/,0, ,+1 $+6,+&0 $ ,,61/ 0 0 0 % + % 0 & 6 1

3iabilities an) #apital

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

#urrent 3iabilities Accounts .ayable $/0,600 $1%,& 0 $1%,& 1 $+,%00 $1%,&6+ $+,/%0 $1%,&6 $+,000 $1%,&6% $,, %0 $1%,&60 $,,%00 $1%,&61 $,,/%0 $1%,&%+ $,,000 $1%,&% $ , %0 $1%,&%% $ ,%00 $1%,&%0 $ ,/%0 $1%,&%1 $ ,000

#urrent $10,000 $+, %0 9orro?ing Ot!er #urrent 3iabilities Subtotal #urrent 3iabilities

$/%,&00 $/%,&00 $/%,&00

$/%,&00

$/%,&00

$/%,&00

$/%,&00

$/%,&00

$/%,&00

$/%,&00

$/%,&00

$/%,&00

$/%,&00

$%+,000 $%0,6/0 $%0,0 1

$%0,11+

$&+,,6

$&+,61%

$&+,060

$&+,111

$&,,,%+

$&,,60

$&,,0%%

$&,,100

$& ,,%1

3ong4ter* $/%,000 $/%,000 $/%,000 3iabilities "otal 3iabilities $,&,000 $ %,6/0 $ %,0 1

$/%,000 $ %,11+

$/%,000 $ &,,6

$/%,000 $ &,61%

$/%,000 $ &,060

$/%,000 $ &,111

$/%,000 $ 0,,%+

$/%,000 $ 0,60

$/%,000 $ 0,0%%

$/%,000 $ 0,100

$/%,000 $ /,,%1

.ai)4in #apital -etaine) 6arnings 6arnings "otal #apital

$0 ,000 $0 ,000 $0 ,000 $/,&00 $0 $/,&00 $/,&00

$/,%0 ,00 $/,%0 ,00 $/,%0 ,00 $/,%0 ,00 $/,%0 ,00 $/,%0 ,00 $/,%0 ,00 $/,%0 ,00 $/,%0 ,00 $/,%0 ,00 0 0 0 0 0 0 0 0 0 0 $/,&00 $/,&00 $/,&00 $/,&00 $/,&00 $/,&00 $/,&00 $/,&00 $/,&00 $/,&00

:$1,,0, :$06,1% :$110,+%& :$1/+,,%6 :$1&,, %6 :$16 ,6%& :$1,6,%&+ :$/0%,&&0 :$//&,00& :$%&,/0 ; :$ 0,1&%; :$+/,0%1; 0; +; ; ; ; ; ; ; ; $0,/&1 $/,&,%,16 $/,&66,/% $/,&& ,0& $/,&/,,&& $/,&0+,%& $/,0+0,6& $/,0 1, & $/,0%/,,% $/,000,+% $/,01%,06 0 % + 6 & & 6 1 6

$0+,&00 $/1,0/0

"otal $1/0,&0 $/,%60,/, $/,%&1,1/ $/,%/1,+6 $/,%0/,,0 $/,&,0,6% $/,&6&,%0 $/,&&%,0% $/,&/6,/0 $/,&0 ,06 $/,0, ,+1 3iabilities $+6,+&0 $ ,,61/ 0 0 0 % + % 0 & 6 1 an) #apital

Net @ort!

$0+,&00 $/1,0/0

$0,/&1

$/,&,%,16 $/,&66,/% $/,&& ,0& $/,&/,,&& $/,&0+,%& $/,0+0,6& $/,0 1, & $/,0%/,,% $/,000,+% $/,01%,06 0 % + 6 & & 6 1 6