Executive Summary JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through

the medium of the Internet. JavaNet is the answer to an increasing demand. he pu!lic wants" #$% access to the methods of communication and volumes of information now availa!le on the Internet, and #&% access at a cost they can afford and in such a way that they aren't socially, economically, or politically isolated. JavaNet's goal is to provide the community with a social, educational, entertaining, atmosphere for worldwide communication. his !usiness plan is prepared to o!tain financing in the amount of (&),***. he supplemental financing is required to !egin work on site preparation and modifications, equipment purchases, and to cover expenses in the first year of operations. +dditional financing has already !een secured in the form of" #$% (&),*** from the ,regon Economic -evelopment .und #&% ($/,*** of personal savings from owner 0ale 1ruckner #2% (23,*** from three investors #)% and (/,&/* in the form of short4term loans. JavaNet will !e incorporated as an 550 corporation. his will shield the owner 0ale 1ruckner, and the three outside investors, 5uke 6alsh, -oug 6ilson, and John 7nderwood, from issues of personal lia!ility and dou!le taxation. he investors will !e treated as shareholders and therefore will not !e lia!le for more than their individual personal investment of ($&,*** each. he financing, in addition to the capital contri!utions from the owner, shareholders and the ,regon Economic -evelopment .und, will allow JavaNet to successfully open and maintain operations through year one. he large initial capital investment will allow JavaNet to provide its customers with a full featured Internet cafe. + unique, upscale, and innovative environment is required to provide the customers with an atmosphere that will spawn sociali8ation. Successful operation in year one will provide JavaNet with a customer !ase that will allow it to !e self sufficient in year two.

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ; 1.1 Objectives JavaNet's o!<ectives for the first three years of operation include"

forum.

he creation of a unique, upscale, innovative environment that will differentiate JavaNet from local coffee houses. Educating the community on what the Internet has to offer. he formation of an environment that will !ring people with diverse interests and !ackgrounds together in a common =ood coffee and !akery items at a reasona!le price. +fforda!le access to the resources of the Internet and other online services. 1.2 Keys to Success he keys to the success for JavaNet are" he creation of a unique, innovative, upscale atmosphere that will differentiate JavaNet from other local coffee shops and future Internet cafes. he esta!lishment of JavaNet as a community hu! for sociali8ation and entertainment. he creation of an environment that won't intimidate the novice user. JavaNet will position itself as an educational resource for individuals wishing to learn a!out the !enefits the Internet has to offer. =reat coffee and !akery items. 1.3 Mission +s the popularity of the Internet continues to grow at an exponential rate, easy and afforda!le access is quickly !ecoming a necessity of life. JavaNet provides communities with the a!ility to access the Internet, en<oy a cup of coffee, and share Internet experiences in a comforta!le environment. :eople of all ages and !ackgrounds will come to en<oy the unique, upscale, educational, and innovative environment that JavaNet provides. 1.4 Risks

he risks involved with starting JavaNet are"

6ill there !e a demand for the services offered !y JavaNet in Eugene9 6ill the popularity of the Internet continue to grow, or is the Internet a fad9 6ill individuals !e willing to pay for the service JavaNet offers9 6ill the cost of accessing the Internet from home drop so significantly that there will not !e a market for Internet 0afes such as JavaNet9 0ompany Summary JavaNet, soon to !e located in downtown Eugene on $*th and ,ak, will offer the community easy and afforda!le access to the Internet. JavaNet will provide full access to email, 666, . :, 7senet and other Internet applications such as elnet and =opher. JavaNet will also provide customers with a unique and innovative environment for en<oying great coffee, specialty !everages, and !akery items. JavaNet will appeal to individuals of all ages and !ackgrounds. he instructional Internet classes, and the helpful staff that JavaNet provides, will appeal to the audience that does not associate themselves with the computer age. his educational aspect will attract younger and elderly mem!ers of the community who are rapidly gaining interest in the unique resources that online communications have to offer. he downtown location will provide !usiness people with convenient access to their morning coffee and online needs. 2.1 Company Ownership JavaNet is a privately held ,regon 5imited 5ia!ility 0orporation. 0ale 1ruckner, the founder of JavaNet, is the ma<ority owner. 5uke 6alsh, -oug 6ilson, and John 7nderwood, all hold minority stock positions as private investors. 2.2 Start-up Summary JavaNet's start4up costs will cover coffee making equipment, site renovation and modification, capital to cover losses in the first year, and the communications equipment necessary to get its customers online. he communications equipment necessary to provide JavaNet's customers with a high4speed connection to the Internet and the services it has to offer make up a large portion of the start4up costs. hese costs will include the computer terminals and all costs associated with their set4up. 0osts will also !e designated for the purchase of two laser printers and a scanner. In addition, costs will !e allocated for the purchase of coffee making equipment. ,ne espresso machine, an automatic coffee grinder, and minor additional equipment will !e purchased from +llann 1rothers. he site at $*th and ,ak will require funds for renovation and modification. + single estimated figure will !e allocated for this purpose. he renovation>modification cost estimate will include the costs associated with preparing the site for opening !usiness. Start4up Expense -etails"

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$$ computers ? (&&,*** two printers ? ($,*** one scanner ? (@** software ? (A$* one espresso machine ? ($*,B** one automatic espresso grinder ? (B/@ other fixtures and remodeling" two coffee>food preparation counters ? ($,*** one information display counter ? ($,*** one drinking>eating counter ? (@** sixteen stools ? ($,3** six computer desks w>chairs ? (&,)** stationery goods ? (@** two telephones ? (&** decoration expense ? ($2,***

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

Start-up Requirements
Start-up Expenses Legal Stationery etc. Brochures Consultants Insurance Rent 4-grou !uto"atic Co##ee $achine Bean %rin&er Co" uter Syste"s ()11*, So#t+are, ,rinter, Scanner Co""unication Lines /i)tures0Re"o&el Total Start-up Expenses Start-up Assets Cash Re1uire& Start-u In2entory 3ther Current !ssets Long-ter" !ssets Total Assets Total Requirements $500 $500 $500 $2,000 $700 $1,445 $10,700 $7'5 $24,-10 $.40 $20,000 $62,290 $24,000 $2,000 $0 $0 $26,000 $88,290

Need real financials9 6e recommend using 5ive:lan as the easiest way to create automatic financials for your own !usiness plan. 0reate your own !usiness plan ; 2.3 Company Locations and Facilities + site has !een chosen at $*th and ,ak in downtown Eugene. his site was chosen for various reasons, including"

:roximity to the downtown !usiness community. :roximity to trendy, upscale restaurants such as 6est 1rothers. :roximity to 5 -'s Eugene Station. :arking availa!ility. 5ow cost rent 4 (.A@ per square foot for $B** square feet. Cigh visi!ility. +ll of these qualities are consistent with JavaNet's goal of providing a central hu! of communication and sociali8ation for the Eugene community. Services

JavaNet will provide full access to email, 666, . :, 7senet and other Internet applications such as elnet and =opher. :rinting, scanning, and introductory courses to the Internet will also !e availa!le to the customer. JavaNet will also provide customers with a unique and innovative environment for en<oying great coffee, specialty !everages, and !akery items. 3.1 Competitive Comparison JavaNet will !e the first Internet cafe in Eugene. JavaNet will differentiate itself from the strictly4coffee cafes in Eugene !y providing its customers with Internet and computing services. 3.2 Service Description JavaNet will provide its customers with full access to the Internet and common computer software and hardware. Some of the Internet and computing services availa!le to JavaNet customers are listed !elow"

+ccess to external :,:2 email accounts. 0ustomers can sign up for a JavaNet email account. his account will !e managed !y JavaNet servers and accessi!le from computer systems outside the JavaNet network. . :, elnet, =opher, and other popular Internet utilities will !e availa!le. +ccess to Netscape or Internet Explorer !rowser. +ccess to laser and color printing. +ccess to popular software applications like +do!e :hotoShop and Dicrosoft 6ord. JavaNet will also provide its customers with access to introductory Internet and email classes. hese classes will !e held in the afternoon and late in the evening. 1y providing these classes, JavaNet will !uild a client !ase familiar with its services. he computers, Internet access, and classes wouldn't mean half as much if taken out of the environment JavaNet will provide. =ood coffee, specialty drinks, !akery goods, and a comforta!le environment will provide JavaNet customers with a home away from home. + place to en<oy the !enefits of computing in a comforta!le and well4kept environment. 3.3 Fulfillment JavaNet will o!tain computer support and Internet access from 1ellevue 0omputers located in Eugene. 1ellevue will provide the Internet connections, network consulting, and the hardware required to run the JavaNetwork. +llann 1rothers will provide JavaNet with coffee equipment, !ulk coffee, and paper supplies. +t this time, a contract for the !akery items has not !een completed. JavaNet is currently negotiating with Cum!le 1agel and the .rench Corn to fulfill the requirement. 3.4 Technology JavaNet will invest in high4speed computers to provide its customers with a fast and efficient connection to the Internet. he computers will !e relia!le and fun to work with. JavaNet will continue to upgrade and modify the systems to stay current with communications technology. ,ne of the main attractions associated with Internet cafes, is the state of the art equipment availa!le for use. Not everyone has a :entium :0 in their home or office. 3.5 Future Services +s JavaNet grows, more communications systems will !e added. he possi!ility of additional units has !een accounted for in the current floor plan. +s the demand for Internet connectivity increases, along with the increase in competition, JavaNet will continue to add new services to keep its customer !ase coming !ack for more. Darket +nalysis Summary JavaNet is faced with the exciting opportunity of !eing the first4mover in the Eugene cy!er4cafe market. he consistent popularity of coffee, com!ined with the growing interest in the Internet, has !een proven to !e a winning concept in other markets and will produce the same results in Eugene. 4.1 Target Market Segment Strategy JavaNet intends to cater to people who want a guided tour on their first spin around the Internet and to experienced users eager to indulge their passion for computers in a social setting. .urthermore, JavaNet will !e a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. hese professionals will either use JavaNet's :0s, or plug their note!ooks into Internet connections. JavaNet's target market covers a wide range of ages" from mem!ers of =eneration E who grew up surrounded !y computers, to 1a!y 1oomers who have come to the reali8ation that people today cannot afford to ignore computers. 4.1.1 Market Trends + market survey was conducted in the .all of $//3. Fey questions were asked of fifty potential customers. Some key findings include"

2@ su!<ects said they would !e willing to pay for access to the Internet. .ive dollars an hour was the most popular hourly Internet fee. &) su!<ects use the Internet to communicate with others on a regular !asis. 4.1.2 Market Needs .actors such as current trends, addiction, and historical sales data ensure that the high demand for coffee will remain constant over the next five years. he rapid growth of the Internet and online services, that has !een witnessed worldwide, is only the tip of the ice!erg. he potential growth of the Internet is enormous, to the point where one day, a computer terminal with an online connection will !e as common and necessary as a telephone. his may !e $* or &* years down the road, !ut for the next five years, the online service provider market is sure to experience tremendous growth. 1eing the first cy!er4cafe in Eugene, JavaNet will en<oy the first4mover advantages of name recognition and customer loyalty. Initially, JavaNet will hold a $** percent share of the cy!er4cafe market in Eugene. In the next five years, competitors will enter the market. JavaNet has set a goal to maintain greater than a @* percent market share. 4.2 Market Segmentation JavaNet's customers can !e divided into two groups. he first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can get out of their offices or !edrooms and en<oy a great cup of coffee. he second group is not familiar with the Internet, yet, and is <ust waiting for the right opportunity to enter the online community. JavaNet's target market falls anywhere !etween the ages of $A and @*. his extremely wide range of ages is due to the fact that !oth coffee and the Internet appeal to a variety of people. In addition to these two !road categories, JavaNet's target market can !e divided into more

specific market segments. he ma<ority of these individuals are students and !usiness people. See the Darket +nalysis chart and ta!le !elow for more specifics.

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

Market Analysis
ear ! %otential &ustomers 4ni2ersity Stu&ents 3##ice 7or8ers Seniors 9eenagers 3ther Total 'ro(t) 45 -5 55 25 05 2*68+ 15,000 25,000 1.,500 12,500 25,000 96,000 ear 2 15,600 25,750 1',425 12,750 25,000 98,$2$ ear " 16,224 26,5220,-'6 1-,005 25,000 !0!,!#8 ear # 16,.727,-1' 21,416 1-,265 25,000 !0",8," ear $ 17,54. 2.,1-' 22,4.7 1-,5-0 25,000 !06,,0# &A'R 4.005 -.005 5.005 2.005 0.005 2*68+

Need real financials9 6e recommend using 5ive:lan as the easiest way to create automatic financials for your own !usiness plan. 0reate your own !usiness plan ; 4.3 Service Business Analysis he retail coffee industry in Eugene experienced rapid growth at the !eginning of the decade and is now moving into the mature stage of its life cycle. Dany factors contri!ute to the large demand for good coffee in Eugene. he 7niversity is a main source of demand for coffee retailers. he climate in Eugene is extremely conducive to coffee consumption. 0urrent trends in the Northwest reflect the popularity of fresh, strong, quality coffee and specialty drinks. Eugene is a haven for coffee lovers. he popularity of the Internet is growing exponentially. hose who are familiar with the Internet are well aware of how fun and addictive surfing the Net can !e. hose who have not yet experienced the Internet, need a convenient, relaxed atmosphere where they can feel comforta!le learning a!out and utili8ing the current technologies. JavaNet seeks to provide its customers with afforda!le Internet access in an innovative and supportive environment. -ue to intense competition, cafe owners must look for ways to differentiate their place of !usiness from others in order to achieve and maintain a competitive advantage. he founder of JavaNet reali8es the need for differentiation and strongly !elieves that com!ining a cafe with complete Internet service is the key to success. he fact that no cy!er4cafes are esta!lished in Eugene, presents JavaNet with a chance to enter the window of opportunity and enter into a profita!le niche in the market. 4.3.1 Competition and Buying Patterns he main competitors in the retail coffee segment are 0afe :aradisio, .ull 0ity, 0offee 0orner and +llann 1ros. hese !usinesses are located in or near the downtown area, and target a similar segment to JavaNet's #i.e. educated, upwardly4mo!ile students and !usiness people%. 0ompetition from online service providers comes from locally4owned !usinesses as well as national firms. here are approximately eight, local, online service providers in Eugene. his num!er is expected to grow with the increasing demand for Internet access. 5arger, online service providers, such as +,5 and 0ompuServe are also a competitive threat to JavaNet. -ue to the nature of the Internet, there are no geographical !oundaries restricting competition. 4.3.2 Business Participants here are approximately $3 coffee wholesalers in 5ane 0ounty. hese wholesalers distri!ute coffee and espresso !eans to over &* retailers in the Eugene area. 0ompetition in !oth channels creates an even amount of !argaining power !etween !uyers and suppliers resulting in extremely competitive pricing. Some of these ma<or players in the industry #i.e. +llann 1rothers 0offee 0o., Inc. and 0offee 0orner 5td.% distri!ute and retail coffee products.

he num!er of online service providers in Eugene is approximately eight and counting. hese small, regional service providers use a num!er of different pricing strategies. Some charge a monthly fee, while others charge hourly and>or phone fees. Gegardless of the pricing method used, o!taining Internet access through one of these firms can !e expensive. 5arger Internet servers such as +merica ,nline #+,5%, :rodigy, and 0ompuServe, are also fighting for market share in this rapidly growing industry. hese service providers are also rather costly for the average consumer. 0onsumers who are not convinced they would frequently and consistently travel the Internet, will not !e willing to pay these prices. 4.3.3 Distributing a Service he dual product>service nature of JavaNet's !usiness faces competition on two levels. JavaNet competes not only with coffee retailers, !ut also with Internet service providers. he good news is that JavaNet does not currently face any direct competition from other cy!er4cafes in the Eugene market. here are a total of three cy!er4cafes in the state of ,regon" one located in :ortland and two in +shland. Ceavy competition !etween coffee retailers in Eugene creates an industry where all firms face the same costs. here is a positive relationship !etween price and quality of coffee. Some coffees retail at (A>pound while other, more exotic !eans may sell for as high as ($3>pound. 6holesalers sell !eans to retailers at an average of a @* percent discount. .or example, a pound of Sumatran !eans wholesales for (3./@ and retails for ($2./@. +nd as in most industries, price decreases as volume increases.

Strategy and Implementation Summary JavaNet has three main strategies. he first strategy focuses on attracting novice Internet users. 1y providing a novice friendly environment, JavaNet hopes to educate and train a loyal customer !ase. he second, and most important, strategy focuses on pulling in power Internet users. :ower Internet users are extremely familiar with the Internet and its offerings. his group of customers serves an important function at JavaNet. :ower users have knowledge and we!4!rowsing experience that novice Internet users find attractive and exciting. he third strategy focuses on !uilding a social environment for JavaNet customers. + social environment, that provides entertainment, will serve to attract customers that wouldn't normally think a!out using the Internet. ,nce on location at JavaNet, these customers that came for the more standard entertainment offerings, will reali8e the potential entertainment value the Internet can provide. 5.1 Strategy Pyramid he following su!topics provide an overview of JavaNet's three key strategies. Strategy pyramid graphics are presented in the appendix of this plan. 5.1.1 Attract Power Internet Users JavaNet's second strategy will !e focused on attracting power Internet users. :ower Internet users provide an important function at JavaNet. JavaNet plans on attracting this type of customer !y"

:roviding the latest in computing technology. :roviding scanning and printing services. :roviding access to powerful software applications. 5.1.2 Social Hub he third strategy focuses on !uilding a social environment for JavaNet customers. + social environment, that provides entertainment, will serve to attract customers that wouldn't normally think a!out using the Internet. ,nce on location at JavaNet, these customers that came for the more standard entertainment offerings, will reali8e the potential entertainment value the Internet can provide. 5.1.3 Attract Novice Internet Users JavaNet's first strategy focuses on attracting novice Internet users. JavaNet plans on attracting these customers !y" :roviding a novice friendly environment. JavaNet will !e staffed !y knowledgea!le employees focused on serving the customer's needs. + customer service desk will always !e staffed. If a customer has any type of question or concern, a JavaNet employee will always !e availa!le to assist. JavaNet will offer introductory classes on the Internet and email. hese classes will !e designed to help novice users familiari8e themselves with these key tools and the JavaNet computer systems. 5.2 SWOT Analysis he S6, analysis provides us with an opportunity to examine the internal strengths and weaknesses JavaNet must address. It also allows us to examine the opportunities presented to JavaNet as well as potential threats. JavaNet has a valua!le inventory of strengths that will help it succeed. hese strengths include" a knowledgea!le and friendly staff, state4of4the4art computer hardware, and a clear vision of the market need. Strengths are valua!le, !ut it is also important to reali8e the weaknesses JavaNet must address. hese weaknesses include" a dependence on quickly changing technology, and the cost factor associated with keeping state4of4the art computer hardware. JavaNet's strengths will help it capitali8e on emerging opportunities. hese opportunities include, !ut are not limited to, a growing population of daily Internet users, and the growing social !onds fostered !y the new Internet communities. hreats that JavaNet should !e aware of include, the rapidly falling cost of Internet access, and emerging local competitors. 5.2.1 Weaknesses + dependence on quickly changing technology. JavaNet is a place for people to experience the technology of the Internet. he technology that is the Internet changes rapidly. :roduct lifecycles are measured in weeks, not months. JavaNet needs to keep up with the technology !ecause a lot of the JavaNet experience is technology. 0ost factor associated with keeping state4of4the4art hardware. Feeping up with the technology of the Internet is an expensive undertaking. JavaNet needs to !alance technology needs with the other needs of the !usiness. ,ne aspect of the !usiness can't !e sacrificed for the other. 5.2.2 Opportunities

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=rowing population of daily Internet users. he importance of the Internet almost equals that of the telephone. +s the population of daily Internet users increases, so will the need for the services JavaNet offers. Social !onds fostered !y the new Internet communities. he Internet is !ringing people from across the world together unlike any other communication medium. JavaNet will capitali8e on this social trend !y providing a place for smaller and local Internet communities to meet in person. JavaNet will grow some of these communities on its own !y esta!lishing chat areas and community programs. hese programs will !e designed to !uild customer loyalty. 5.2.3 Threats Gapidly falling cost of Internet access. he cost of access to the Internet for home users is dropping rapidly. Internet access may !ecome so cheap and afforda!le that no!ody will !e willing to pay for access to it. JavaNet is aware of this threat and will closely monitor pricing. Emerging local competitors. 0urrently, JavaNet is en<oying a first4mover advantage in the local cy!er4cafe market. Cowever, additional competitors are on the hori8on, and we need to !e prepared for their entry into the market. Dany of our programs will !e designed to !uild customer loyalty, and it is our hope that our quality service and up4scale am!iance won't !e easily duplicated. 5.2.4 Strengths Fnowledgea!le and friendly staff. 6e've gone to great lengths at JavaNet to find people with a passion for teaching and sharing their Internet experiences. ,ur staff is !oth knowledgea!le and eager to please. State4of4the art equipment. :art of the JavaNet experience includes access to state4of4the4art computer equipment. ,ur customers en<oy !eautiful flat4screen displays, fast machines, and high4quality printers. 7pscale am!iance. 6hen you walk into JavaNet, you'll feel the technology. Cigh !acked mahogany !ooths with flat4 screen monitors inset into the walls provide a co8y hideaway for meetings and small friendly gatherings. 5arge round ta!les with displays viewa!le from a!ove provide a forum for larger gatherings and friendly Hhow4toH classes on the Internet. +luminum track lighting and art from local artists sets the mood. 5ast, !ut not least, quality cappuccino machines and a glass pastry display case provide enticing refreshments. 0lear vision of the market need. JavaNet knows what it takes to !uild an upscale cy!er cafe. 6e know the customers, we know the technology, and we know how to !uild the service that will !ring the two together. 5.3 Competitive Edge JavaNet will follow a differentiation strategy to achieve a competitive advantage in the cafe market. 1y providing Internet service, JavaNet separates itself from all other cafes in Eugene. In addition, JavaNet provides a comforta!le environment with coffee and !akery items, distinguishing itself from other Internet providers in Eugene. 5.4 Marketing Strategy JavaNet will position itself as an upscale coffee house and Internet service provider. It will serve high4quality coffee and espresso specialty drinks at a competitive price. -ue to the num!er of cafes in Eugene, it is important that JavaNet sets fair prices for its coffee. JavaNet will use advertising as its main source of promotion. +ds placed in he Gegister =uard, Eugene 6eekly, and the Emerald will help !uild customer awareness. +ccompanying the ad will !e a coupon for a free hour of Internet travel. .urthermore, JavaNet will give away three free hours of Internet use to !eginners who sign up for an introduction to the Internet workshop provided !y JavaNet. 5.4.1 Pricing Strategy JavaNet !ases its prices for coffee and specialty drinks on the Hretail profit analysisH provided !y our supplier, +llann 1rothers 0offee 0o., Inc. +llann 1rothers has !een in the coffee !usiness for && years and has developed a solid pricing strategy. -etermining a fair market, hourly price, for online use is more difficult !ecause there is no direct competition from another cy!er4 cafe in Eugene. herefore, JavaNet considered three sources to determine the hourly charge rate. .irst, we considered the cost to use other Internet servers, whether it is a local networking firm or a provider such as +merica ,nline. Internet access providers use different pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy with a com!ination of !oth pricing schemes. hus, it can quickly !ecome a high monthly cost for the individual. Second, JavaNet looked at how cy!er4cafes in other markets such as :ortland and +shland went a!out pricing Internet access. hird, JavaNet used the market survey conducted in the .all of $//3. Evaluating these three factors resulted in JavaNet's hourly price of five dollars. 5.4.2 Promotion Strategy JavaNet will implement a pull strategy in order to !uild consumer awareness and demand. Initially, JavaNet has !udgeted (@,*** for promotional efforts which will include advertising with coupons for a free hour of Internet time in local pu!lications and in4house promotions such as offering customers free Internet time if they pay for an introduction to the Internet workshop taught !y JavaNet's computer technician. JavaNet reali8es that in the future, when competition enters the market, additional revenues must !e allocated for promotion in order to maintain market share. 5.5 Sales Strategy +s a retail esta!lishment, JavaNet employs people to handle sales transactions. 0omputer literacy is a requirement for JavaNet employees. If an employee does not possess !asic computer skills when they are hired, they are trained !y our full4time technician. ,ur full4time technician is also availa!le for customers in need of assistance. JavaNet's commitment to friendly, helpful service is one of the key factors that distinguishes JavaNet from other Internet cafes. 5.5.1 Sales Forecast Sales forecast data is presented in the chart and ta!le !elow.

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Sales" JavaNet is !asing their pro<ected coffee and espresso sales on the financial snapshot information provided to them !y +llann 1ros. 0offee 0o. Internet sales were estimated !y calculating the total num!er of hours each terminal will !e active each day and then generating a conservative estimate as to how many hours will !e purchased !y consumers. 0ost of Sales" he cost of goods sold for coffee4related products was determined !y the Hretail profit analysisH we o!tained from +llann 1ros. 0offee 0o. he cost of !akery items is &*I of the selling price. he cost of Internet access is (33* per month, paid to 1ellevue 0omputers for networking fees. he cost of e4mail accounts is &@I of the selling price.

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

Sales -ore.ast
ear ! /nit Sales Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s 12,016 6,654 .,7014,06. 7,'110,505 15,475 .,705 11,556 ear 2 ear "

=ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* Total /nit Sales /nit %ri.es Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* Sales Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* Total Sales 0ire.t /nit &osts Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* 0ire.t &ost o1 Sales Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* Su2total 0ire.t &ost o1 Sales

-.,26' -2,6798,"!$ ear ! $1.00 $2.00 $10.00 $2.50 $1.25 $12,016 $1-,-0. $.7,0-0 $'5,67$40,.41 $2#8,868 ear ! $0.25 $0.50 $2.50 $0.6$0.-1 $-,004 $-,-27 $21,75. $2-,'1. $10,210 $62,2!,

46,-65 42,150 !2!,00! ear 2 $1.00 $2.00 $10.00 $2.50 $1.25 $14,06. $15,.26 $105,050 $115,'1$52,6.. $"0",$## ear 2 $0.25 $0.50 $2.50 $0.6$0.-1 $-,517 $-,'57 $26,26$2.,'7. $1-,172 $,$,886

51,002 46,-65 !"",!0" ear " $1.00 $1.00 $10.00 $2.50 $1.00 $15,475 $.,705 $115,560 $127,505 $46,-65 $"!",6!0 ear " $0.25 $0.25 $2.50 $0.6$0.25 $-,.6' $2,176 $2.,.'0 $-1,.76 $11,5'1 $,8,#0"

Need real financials9 6e recommend using 5ive:lan as the easiest way to create automatic financials for your own !usiness plan. 0reate your own !usiness plan ; 5.6 Milestones he JavaNet management team has esta!lished some !asic milestones to keep the !usiness plan priorities in place. Gesponsi!ility for implementation falls on the shoulders of 0ale 1ruckner. his Dilestones a!le !elow will !e updated as the year progresses using the actual ta!les. New milestones will !e added as the first year of operations commences.

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

Milestones
Milestone Business ,lan Secure Start-u /un&ing Site Selection !rchitect ;esigns ;esigner ,ro osal 9echnology ;esign >ear 1 ,lan ,ersonnel ,lan !ccounting ,lan Licensing Totals Start 0ate 10101''. 201501''. -0101''. 40101''. 40101''. 40101''. 60101''. 70101''. 70101''. '0101''. En3 0ate 20101''. -0101''. -01501''. 50101''. 401501''. 401501''. 60501''. 701001''. 70501''. '01501''. 4u35et Mana5er 0epartment !&"in !&"in !&"in !&"in !&"in !&"in !&"in !&"in !&"in !&"in $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $1,000 Cale Bruc8ner $!0,000

Danagement Summary JavaNet is owned and operated !y Dr. 0ale 1ruckner. he company, !eing small in nature, requires a simple organi8ational structure. Implementation of this organi8ational form calls for the owner, Dr. 1ruckner, to make all of the ma<or management decisions in addition to monitoring all other !usiness activities. 6.1 Personnel Plan he staff will consist of six part4time employees working thirty hours a week at (@.@* per hour. In addition, one full4time technician #who is more technologically oriented to handle minor terminal repairs>inquiries% will !e employed to work forty hours a week at ($*.** per hour. he three private investors, 5uke 6alsh, -oug 6ilson and John 7nderwood will not !e included in management decisions. his simple structure provides a great deal of flexi!ility and allows communication to disperse quickly and directly. 1ecause of these characteristics, there are few coordination pro!lems seen at JavaNet that are common within larger organi8ational chains. his strategy will ena!le JavaNet to react quickly to changes in the market.

%ersonnel %lan
ear ! 3+ner ,art 9i"e 1 ,art 9i"e 2 ,art 9i"e ,art 9i"e 4 ,art 9i"e 5 ,art 9i"e 6 9echnician $anager Total %eople Total %ayroll $24,000 $7,'20 $7,'20 $7,'20 $7,'20 $7,'20 $-,'60 $21,7-1 $4,000 9 $9",29! ear 2 $26,400 $7,'20 $7,'20 $7,'20 $7,'20 $7,'20 $7,'20 $2-,'04 $24,000 9 $!2!,82# ear " $2',040 $7,'20 $7,'20 $7,'20 $7,'20 $7,'20 $7,'20 $26,2'4 $26,400 9 $!29,2$#

$. &. 2. ).

.inancial :lan he following sections lay out the details of our financial plan for the next three years. 7.1 Start-up Funding his !usiness plan is prepared to o!tain financing in the amount of (&),***. he supplemental financing is required to !egin work on site preparation and modifications, equipment purchases, and to cover expenses in the first year of operations. +dditional financing has already !een secured as follows" (&),*** from the ,regon Economic -evelopment .und ($/,*** of personal savings from owner 0ale 1ruckner (23,*** from three investors and (/,&/* in the form of short4term loans

Start-up -un3in5
Start-u <) enses to /un& Start-u !ssets to /un& Total -un3in5 Require3 Assets ?on-cash !ssets #ro" Start-u Cash Re1uire"ents #ro" Start-u !&&itional Cash Raise& Cash Balance on Starting ;ate Total Assets 6ia2ilities an3 &apital $62,2'0 $26,000 $88,290 $2,000 $24,000 $0 $24,000 $26,000

Lia:ilities Current Borro+ing Long-ter" Lia:ilities !ccounts ,aya:le (3utstan&ing Bills* 3ther Current Lia:ilities (interest-#ree* Total 6ia2ilities Ca ital ,lanne& In2est"ent Cale Bruc8ner Lu8e 7alsh ;oug 7ilson @ohn 4n&er+oo& !&&itional In2est"ent Re1uire"ent Total %lanne3 7n8estment Loss at Start-u (Start-u <) enses* Total &apital Total &apital an3 6ia2ilities Total -un3in5 $',2'0 $24,000 $0 $0 $"",290

$1',000 $12,000 $12,000 $12,000 $0 $$$,000 ($62,2'0* 9$,,290: $26,000 $88,290

Need real financials9 6e recommend using 5ive:lan as the easiest way to create automatic financials for your own !usiness plan. 0reate your own !usiness plan ; 7.2 Important Assumptions 1asic assumptions are presented in the ta!le !elow.

'eneral Assumptions
,lan $onth Current Interest Rate Long-ter" Interest Rate 9a) Rate ;t)er ear ! 1 ..005 10.005 -0.005 0 ear 2 2 ..005 10.005 -0.005 0 ear " ..005 10.005 -0.005 0

7.3 Key Financial Indicators Important !enchmark data is presented in the chart !elow.

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ; 7.4 Break-even Analysis 1reak4even data is presented in the chart and ta!le !elow.

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

4reak-e8en Analysis
$onthly 4nits Brea8-e2en $onthly Re2enue Brea8-e2en Assumptions< !2erage ,er-4nit Re2enue !2erage ,er-4nit Aaria:le Cost Estimate3 Mont)ly -ixe3 &ost 7,2'4 $1.,462 $2.5$0.6$!",8#,

7.5 Projected Profit and Loss :ayroll Expense" he founder of JavaNet, 0ale 1ruckner, will receive a salary of (&),*** in year one, (&3,)** in year two, and (&/,*)* in year three. JavaNet intends to hire six part4time employees !y the end of year one at (@.B@>hour and a full4time technician at ($*.**>hour. Gent Expense" JavaNet is leasing a $B** square foot facility at (.A@>sq. foot. he lease agreement JavaNet signed specifies that we pay (&,***>month for a total of 23 months. +t the end of the third year, the lease is open for negotiations and JavaNet may or may not re4sign the lease depending on the demands of the lessor. 7tilities Expense" +s stated in the contract, the lessor is responsi!le for the payment of utilities including gas, gar!age disposal, and real estate taxes. he only utilities expense that JavaNet must pay is the phone !ill generated !y fifteen phone linesJ thirteen will !e dedicated to modems and two for !usiness purposes. he !asic monthly service charge for each line provided !y 7S 6est is ($B.&/. he $2 lines used to connect the modems will make local calls to the network provided !y 1ellevue resulting in a monthly charge of (&&).BB. he two additional lines used for !usiness communication will cost (2).@A>month plus long distance fees. JavaNet assumes that it will not make more than ()*.**>month in long distance calls. herefore, the total cost associated with the two !usiness lines is estimated at (B).@A>month and the total phone expense at (&//.2@>month. In addition, there will !e an additional utility expense of (A** for estimated E6E1 !ills. Darketing Expense" JavaNet will allocate (22,B@* for promotional expenses over the first year. hese dollars will !e used for advertising in local newspapers in order to !uild consumer awareness. .or additional information, please refer to section @.* of the !usiness plan. Insurance Expense" JavaNet has allocated ($,))* for insurance for the first year. +s revenue increases in the second and third year of !usiness, JavaNet intends to invest more money for additional insurance coverage. -epreciation" In depreciating our capital equipment, JavaNet used the Dodified +ccelerated 0ost Gecovery Dethod. 6e depreciated our computers over a five4year time period and our fixtures over seven years. axes" JavaNet is an 550 and, as an entity, it is not taxed. Cowever, there is a $@I payroll !urden. -etailed :rofit and 5oss data is presented in the ta!le !elow.

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

%ro -orma %ro1it an3 6oss

ear ! Sales ;irect Cost o# Sales 3ther Costs o# Sales Total &ost o1 Sales %ross $argin %ross $argin 5 Expenses ,ayroll $ar8eting0,ro"otion ;e reciation Rent 4tilities Insurance ,ayroll 9a)es 3ther Total ;peratin5 Expenses ,ro#it Be#ore Interest an& 9a)es <BI9;! Interest <) ense 9a)es Incurre& =et %ro1it =et %ro1it>Sales $2#8,868 $62,217 $0 $62,2!, $1.6,651 75.005 $'-,2'1 $--,750 $0 $24,000 $',120 $6,000 $0 $0 $!66,!6! $20,4'0 $20,4'0 $2,-25 $5,450 $!2,,!6 $*!!+ ear 2 $"0",$## $75,..6 $0 $,$,886 $227,65. 75.005 $121,.24 $40,000 $0 $24,000 $',120 $6,000 $0 $0 $200,9## $26,714 $26,714 $1,470 $7,57$!,,6,! $*82+ ear " $"!",6!0 $7.,40$0 $,8,#0" $2-5,20. 75.005 $12',254 $4-,000 $0 $24,000 $',120 $6,000 $0 $0 $2!!,",# $2-,.-4 $2-,.-4 $1,100 $6,.20 $!$,9!" $*0,+

7.6 Projected Cash Flow 0ash flow data is presented in the chart and ta!le !elow. +ccounts :aya!le" JavaNet acquired a (&),*** loan from a !ank at a $*I interest rate. he loan will !e paid !ack at (A**>month over the next three years. he (/,&/* short term loan will !e paid !ack at a rate of AI.

Need actual charts9 6e recommend using 5ive:lan as the easiest way to create graphs for your own !usiness plan. 0reate your own !usiness plan ;

%ro -orma &as) -lo(

ear ! &as) Re.ei8e3 Cash #ro" 3 erations Cash Sales Su2total &as) 1rom ;perations !&&itional Cash Recei2e& Sales 9a), A!9, =S90%S9 Recei2e& ?e+ Current Borro+ing ?e+ 3ther Lia:ilities (interest-#ree* ?e+ Long-ter" Lia:ilities Sales o# 3ther Current !ssets Sales o# Long-ter" !ssets ?e+ In2est"ent Recei2e& Su2total &as) Re.ei8e3 Expen3itures <) en&itures #ro" 3 erations Cash S en&ing Bill ,ay"ents Su2total Spent on ;perations !&&itional Cash S ent Sales 9a), A!9, =S90%S9 ,ai& 3ut ,rinci al Re ay"ent o# Current Borro+ing 3ther Lia:ilities ,rinci al Re ay"ent Long-ter" Lia:ilities ,rinci al Re ay"ent ,urchase 3ther Current !ssets ,urchase Long-ter" !ssets ;i2i&en&s Su2total &as) Spent =et &as) -lo( &as) 4alan.e $24.,.6. $2#8,868 $0 $2,000 $0 $0 $0 $0 $0 $2$0,868 ear ! $'-,2'1 $1--,.70 $22,,!6! $0 $',2'0 $0 $',600 $0 $0 $0 $2#6,0$! $#,8!, $28,8!, $-0-,544 $"0",$## $0 $5,000 $0 $0 $0 $0 $0 $"08,$## ear 2 $121,.24 $165,'45 $28,,,69 $0 $2,000 $0 $5,000 $0 $0 $0 $29#,,69 $!",,,$ $#2,$92 $-1-,610 $"!",6!0 $0 $0 $0 $0 $0 $0 $0 $"!",6!0 ear " $12',254 $16.,467 $29,,,2! $0 $0 $0 $4,.00 $0 $0 $0 $"02,$2! $!!,089 $$",68! ear 2 ear "

Need real financials9 6e recommend using 5ive:lan as the easiest way to create automatic financials for your own !usiness plan. 0reate your own !usiness plan ; 7.7 Projected Balance Sheet ,ur pro<ected !alance sheet is presented in the ta!le !elow.

%ro -orma 4alan.e S)eet

ear ! Assets Current !ssets Cash In2entory 3ther Current !ssets Total &urrent Assets Long-ter" !ssets Long-ter" !ssets !ccu"ulate& ;e reciation Total 6on5-term Assets Total Assets 6ia2ilities an3 &apital Current Lia:ilities !ccounts ,aya:le Current Borro+ing 3ther Current Lia:ilities Su2total &urrent 6ia2ilities Long-ter" Lia:ilities Total 6ia2ilities ,ai&-in Ca ital Retaine& <arnings <arnings Total &apital Total 6ia2ilities an3 &apital =et ?ort) $2.,.17 $6,'.0 $0 $"$,,9, $0 $0 $0 $"$,,9, ear ! $1-,'72 $2,000 $0 $!$,9,2 $14,400 $"0,",2 $55,000 ($62,2'0* $12,716 $$,#26 $"$,,9, $$,#26 $42,5'2 $.,514 $0 $$!,!06 $0 $0 $0 $$!,!06 ear 2 $1-,610 $5,000 $0 $!8,6!0 $',400 $28,0!0 $55,000 ($4',574* $17,671 $2",096 $$!,!06 $2",096 $5-,6.1 $.,7'6 $0 $62,#,8 $0 $0 $0 $62,#,8 ear " $1-,.6. $5,000 $0 $!8,868 $4,600 $2",#68 $55,000 ($-1,'04* $15,'1$"9,0!0 $62,#,8 $"9,0!0 ear 2 ear "

7.8 Business Ratios he Standard Industrial 0lassification #SI0% 0ode for the Internet Service :rovider industry is HGemote data !ase information retrievalH B2B@.//*2. 6e used the report for HInformation retrieval servicesH B2B@ to generate the industry profile. +s we are also a food cafe we could have used the ratios !ased on SI0 classification @A$&, HEating placesH. he com!ined nature of JavaNet 0afe makes our ratios a !lend of the two industries.

Ratio Analysis
ear ! Sales %ro+th %er.ent o1 Total Assets In2entory 3ther Current !ssets 9otal Current !ssets Long-ter" !ssets Total Assets Current Lia:ilities Long-ter" Lia:ilities 9otal Lia:ilities =et ?ort) %er.ent o1 Sales Sales %ross $argin Selling, %eneral B !&"inistrati2e <) enses !&2ertising <) enses ,ro#it Be#ore Interest an& 9a)es Main Ratios Current Cuic8 9otal ;e:t to 9otal !ssets ,re-ta) Return on ?et 7orth ,re-ta) Return on !ssets A33itional Ratios ?et ,ro#it $argin Return on <1uity 0.005 1'.505 0.005 100.005 0.005 !00*00+ 44.625 40.2-5 .4..45 !$*!6+ 100.005 75.005 6'..'5 0.005 ..2-5 2.24 1..0 .4..45 --4..05 50.745 ear ! 5.115 2-4.-65 ear 2 21.'75 16.665 0.005 100.005 0.005 !00*00+ -6.415 1..-'5 54..15 #$*!9+ 100.005 75.005 6'.1.5 0.005 ...05 2.75 2.2' 54..15 10'.-05 4'.405 ear 2 5..25 76.515 ear " -.-25 14.0.5 0.005 100.005 0.005 !00*00+ -0.205 7.-65 -7.565 62*##+ 100.005 75.005 6'.'-5 0.005 7.605 -.-1 2..5 -7.565 5..2.5 -6.-'5 ear " 5.075 40.7'5 7n3ustry %ro1ile 0.'05 2.175 .4.7.5 .6.'55 1-.055 !00*00+ 2..--5 16.215 44.545 $$*#6+ 100.005 100.005 7'.005 1.015 1.625 0.00 0.00 0.005 0.005 0.005 n.a n.a

A.ti8ity Ratios In2entory 9urno2er !ccounts ,aya:le 9urno2er ,ay"ent ;ays 9otal !sset 9urno2er 0e2t Ratios ;e:t to ?et 7orth Current Lia:. to Lia:. 6iqui3ity Ratios ?et 7or8ing Ca ital Interest Co2erage A33itional Ratios !ssets to Sales Current ;e:t09otal !ssets !ci& 9est Sales0?et 7orth 0i8i3en3 %ayout 12.00 10.5. 27 6.'5 5.60 0.5$1',.26 ...1 0.14 455 1..0 45..7 0*00 '..0 12.17 -0 5.'4 1.21 0.66 $-2,4'6 1..17 0.17 -65 2.2' 1-.14 0*00 '.06 12.17 -0 5.02 0.60 0..0 $4-,610 21.67 0.20 -05 2..5 ..04 0*00 n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a n*a

+ppendix
Sales -ore.ast
Mont) ! Mont) 2 Mont) " Mont) # Mont) $ Mont) 6 Mont) , Mont) 8 Mont) 9 /nit Sales Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* Total /nit Sales /nit %ri.es Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* Sales Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* Total Sales 0ire.t /nit &osts Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* 0ire.t &ost o1 Sales Co##ee (:ase& on a2erage* S ecialty ;rin8s (:ase& on a2erage* <"ail $e":ershi s =ourly Internet /ees Ba8e& %oo&s (:ase& on a2erage* Su2total 0ire.t &ost o1 Sales $100 $11$750 $625 $-1$!,900 $170 $150 $.00 $1,125 $4-. $2,68" $1.. $200 $1,06$1,56$'4 $",!06 $24$27$1,7-. $2,02. $'22 $$,20" $255 $2.7 $1,.2$2,0.' $'50 $$,#0" $26. $-01 $1,'15 $2,152 $'7. $$,6!# $276 $-10 $2,010 $2,216 $1,00. $$,8!9 $2.4 $-1' $2,110 $2,2.$1,0-. $6,0"# $2'2 $-2' $2,215 $2,-51 $1,06' $6,2$6 $-01 $--' $2,-2. $2,422 $1,101 $6,#90 $-10 $-4' $2,44$2,4'4 $1,1-4 $6,,"0 $-1' $-5' $2,565 $2,56' $1,16. $6,980 25.005 25.005 25.005 25.005 25.005 $400 $450 $-,000 $2,500 $1,250 $6.0 $600 $-,200 $4,500 $1,750 $750 $.00 $4,250 $6,250 $-75 $'70 $1,0'2 $6,'50 $.,11$-,6.. $1,01' $1,146 $7,2'0 $.,-5. $-,7'' $1,070 $1,204 $7,660 $.,60. $-,'1$1,102 $1,240 $.,040 $.,.65 $4,0-0 $1,1-5 $1,276 $.,440 $',1-$4,151 $1,16' $1,-14 $.,.60 $',405 $4,275 $1,204 $1,-54 $',-10 $',6.. $4,404 Mont) !0 $0.25 $0.50 $2.50 $0.6$0.-1 $1,240 $1,-'6 $',770 $','7. $4,5-6 Mont) !! $0.25 $0.50 $2.50 $0.6$0.-1 $1,277 $1,4-6 $10,260 $10,27. $4,671 $2,,922 Mont) !2 $0.25 $0.50 $2.50 $0.6$0.-1 05 05 05 05 05 400 225 -00 1,000 1,000 2,92$ 6.0 -00 -20 1,.00 1,400 #,$00 750 400 425 2,500 -00 #,",$ '70 546 6'5 -,245 2,'50 8,#06 1,01' 5772' -,-4-,0-' 8,,0" 1,070 602 766 -,44-,1-0 9,0!! 1,102 620 .04 -,546 -,224 9,296 1,1-5 6-. .44 -,65-,-21 9,$9! 1,16' 657 ..6 -,762 -,420 9,89# 1,204 677 '-1 -,.75 -,52!0,2!0 Mont) !0 $1.00 $2.00 $10.00 $2.50 $1.25 1,240 6'. '77 -,''1 -,62' !0,$"$ Mont) !! $1.00 $2.00 $10.00 $2.50 $1.25 1,277 71. 1,026 4,111 -,7-7 !0,869 Mont) !2 $1.00 $2.00 $10.00 $2.50 $1.25 Mont) !0 Mont) !! Mont) !2

Mont) ! Mont) 2 Mont) " Mont) # Mont) $ Mont) 6 Mont) , Mont) 8 Mont) 9 $1.00 $2.00 $10.00 $2.50 $1.25 $1.00 $2.00 $10.00 $2.50 $1.25 $1.00 $2.00 $10.00 $2.50 $1.25 $1.00 $2.00 $10.00 $2.50 $1.25 $1.00 $2.00 $10.00 $2.50 $1.25 $1.00 $2.00 $10.00 $2.50 $1.25 $1.00 $2.00 $10.00 $2.50 $1.25 $1.00 $2.00 $10.00 $2.50 $1.25 $1.00 $2.00 $10.00 $2.50 $1.25

$,,600 $!0,,"0 $!2,#2$ $20,8!2 $2!,6!! $22,#$# $2",2,, $2#,!"$ $2$,02" $2$,9$9 $26,920 Mont) ! Mont) 2 Mont) " Mont) # Mont) $ Mont) 6 Mont) , Mont) 8 Mont) 9 $0.25 $0.50 $2.50 $0.6$0.-1 $0.25 $0.50 $2.50 $0.6$0.-1 $0.25 $0.50 $2.50 $0.6$0.-1 $0.25 $0.50 $2.50 $0.6$0.-1 $0.25 $0.50 $2.50 $0.6$0.-1 $0.25 $0.50 $2.50 $0.6$0.-1 $0.25 $0.50 $2.50 $0.6$0.-1 $0.25 $0.50 $2.50 $0.6$0.-1 $0.25 $0.50 $2.50 $0.6$0.-1

Need real financials9 6e recommend using 5ive:lan as the easiest way to create automatic financials for your own !usiness plan. 0reate your own !usiness plan ; %ersonnel %lan
Mont) Mont) Mont) Mont) Mont) Mont) Mont) Mont) Mont) Mont) Mont) ! 2 " # $ 6 , 8 9 !0 !! 3+ner ,art 9i"e 1 05 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 05 $660 $660 $660 $660 $660 $660 $660 $660 $660 $660 $2,000 $660 Mont) !2 $2,000 $660

,art 9i"e 2 ,art 9i"e ,art 9i"e 4 ,art 9i"e 5 ,art 9i"e 6 9echnician $anager Total %eople Total %ayroll

05 05 05 05 05 05

$660 $660 $660 $660 $0 $0 ,

$660 $660 $660 $660 $0 $0 ,

$660 $660 $660 $660 $0 $0 ,

$660 $660 $660 $660 $0 $0 ,

$660 $660 $660 $660 $0 $0 ,

$660 $660 $660 $660 $0 $0 ,

$660 $660 $660 $660 $660 $0 8

$660 $660 $660 $660 $660 $0 8

$660 $660 $660 $660 $660 $0 8

$660 $660 $660 $660 $660 $0 8

$660 $660 $660 $660 $660 $2,416 $2,000 9

$660 $660 $660 $660 $660 $2,657 $2,000 9 $!0,6!,

05 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,650 $1,.15 $1,''7 $2,1'6

$6,800 $6,800 $6,800 $6,800 $6,800 $6,800 $,,6!0 $,,,,$ $,,9$, $8,!$6 $!0,",6

'eneral Assumptions
Mont) ! Mont) 2 Mont) " Mont) # Mont) $ Mont) 6 Mont) , Mont) 8 Mont) 9 ,lan $onth Current Interest Rate Long-ter" Interest Rate 9a) Rate ;t)er 1 ..005 2 ..005 ..005 4 ..005 5 ..005 6 ..005 7 ..005 . ..005 ' ..005 Mont) !0 10 ..005 Mont) !! 11 ..005 Mont) !2 12 ..005 10.005 -0.005 0

10.005 10.005 10.005 10.005 10.005 10.005 10.005 10.005 10.005 10.005 10.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 -0.005 0 0 0 0 0 0 0 0 0 0 0

%ro -orma %ro1it an3 6oss

Mont) ! Mont) 2 Mont) " Mont) # Mont) $ Mont) 6 Mont) , Mont) 8 Mont) 9Mont) !0Mont) !! Sales ;irect Cost o# Sales 3ther Costs o# Sales Total &ost o1 Sales %ross $argin %ross $argin 5 Expenses ,ayroll $ar8eting0,ro"otion ;e reciation Rent 4tilities Insurance ,ayroll 9a)es 3ther Total ;peratin5 Expenses ,ro#it Be#ore Interest an& 9a)es <BI9;! Interest <) ense 9a)es Incurre& =et %ro1it =et %ro1it>Sales 155 $6,.00 $4,000 $0 $2,000 $760 $500 $0 $0 $!#,060 $6,.00 $4,000 $0 $2,000 $760 $500 $0 $0 $!#,060 $6,.00 $-,250 $0 $2,000 $760 $500 $0 $0 $6,.00 $2,500 $0 $2,000 $760 $500 $0 $0 $6,.00 $2,500 $0 $2,000 $760 $500 $0 $0 $6,.00 $2,500 $0 $2,000 $760 $500 $0 $0 $7,610 $2,500 $0 $2,000 $760 $500 $0 $0 $7,775 $2,500 $0 $2,000 $760 $500 $0 $0 $7,'57 $2,500 $0 $2,000 $760 $500 $0 $0 $.,156 $10,-76 $2,500 $0 $2,000 $760 $500 $0 $0 $2,500 $0 $2,000 $760 $500 $0 $0 $10,617 $2,500 $0 $2,000 $760 $500 $0 $0 $!6,",, $4,564 $4,564 $1-$1,-2' $",!02 !!*!!+ $,,600 $1,'00 $0 $!,900 $5,700 75.005 $!0,,"0 $2,6.$0 $2,68" $.,04. 75.005 $!2,#2$ $20,8!2 $2!,6!! $22,#$# $2",2,, $2#,!"$ $2$,02" $2$,9$9 $26,920 $-,106 $0 $",!06 75.005 $5,20$0 $$,20" 75.005 $5,40$0 $$,#0" 75.005 $5,614 $0 $$,6!# 75.005 $5,.1' $0 $$,8!9 75.005 $6,0-4 $0 $6,0"# 75.005 $6,256 $0 $6,2$6 75.005 $6,4'0 $0 $6,#90 75.005 $6,7-0 $0 $6,,"0 75.005 Mont) !2 $2,,922 $6,'.0 $0 $6,980 $20,'41 75.005

$',-1' $15,60' $16,20. $16,.41 $17,45. $1.,101 $1.,767 $1',46' $20,1'0

$!","!0 $!2,$60 $!2,$60 $!2,$60 $!",",0 $!",$"$ $!",,!, $!",9!6 $!6,!"6 $-,04' $-,04' $215 $.50 $!,98# $-,64. $-,64. $204 $1,0-$2,#!! $4,2.1 $4,2.1 $205 $1,22$2,8$" $4,0.. $4,0.. $1'4 $1,16. $2,,26 $4,566 $4,566 $1.2 $1,-15 $",069 $5,050 $5,050 $170 $1,464 $",#!6 $5,55$5,55$15' $1,61. $",,,6 $4,054 $4,054 $147 $1,172 $2,,"$

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Mont) ! Mont) 2 Mont) " Mont) # Mont) $ Mont) 6 Mont) , Mont) 8 Mont) 9 &as) Re.ei8e3 Cash #ro" 3 erations Cash Sales Su2total &as) 1rom ;perations !&&itional Cash Recei2e& Sales 9a), A!9, =S90%S9 Recei2e& ?e+ Current Borro+ing ?e+ 3ther Lia:ilities (interest-#ree* ?e+ Long-ter" Lia:ilities Sales o# 3ther Current !ssets Sales o# Long-ter" !ssets ?e+ In2est"ent Recei2e& Su2total &as) Re.ei8e3 Expen3itures <) en&itures #ro" 3 erations Cash S en&ing Bill ,ay"ents Su2total Spent on ;perations !&&itional Cash S ent Sales 9a), A!9, =S90%S9 ,ai& 3ut ,rinci al Re ay"ent o# Current Borro+ing 3ther Lia:ilities ,rinci al Re ay"ent Long-ter" Lia:ilities ,rinci al Re ay"ent ,urchase 3ther Current !ssets $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $750 $0 $.00 $0 $0 $1,040 $0 $.00 $0 $6,.00 $224 $6,.00 $6,.06 $6,.00 $',0.5 $6,.00 $6,.00 $6,.00 $7,610 $7,775 $7,'57 $.,156 $10,-76 $10,617 $14,06$2#,680 $',172 $14,074 $12,61- $1-,017 $1-,15' $1-,51. $1-,..5 $14,254 0.005 $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 $2,000 $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 $0 $0 $0 $0 $0 $0 Mont) !0 $0 $0 $0 $0 $0 $0 $0 Mont) !! $0 $0 $0 $0 $0 $0 $0 $2,,922 Mont) !2 $7,600 $10,7-0 $12,425 $20,.12 $21,611 $22,454 $2-,277 $24,1-5 $25,02- $25,'5' $26,'20 $,,600 $!0,,"0 $!2,#2$ $20,8!2 $2!,6!! $22,#$# $2",2,, $2#,!"$ $2$,02" $2$,9$9 $26,920 $27,'22 $2,,922 Mont) !0 Mont) !! Mont) !2

$,,600 $!0,,"0 $!2,#2$ $20,8!2 $2!,6!! $2#,#$# $2",2,, $2#,!"$ $2$,02" $2$,9$9 $26,920 Mont) ! Mont) 2 Mont) " Mont) # Mont) $ Mont) 6 Mont) , Mont) 8 Mont) 9

$,,02# $!",606 $!$,88$ $!$,9,2 $20,8,# $!9,#!" $20,62, $20,9"# $2!,#,$ $22,0#! $2#,6"0

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Mont) ! Mont) 2 Mont) " Mont) # Mont) $ Mont) 6 Mont) , Mont) 8 Mont) 9 Mont) !0 Mont) !! Assets Current !ssets Cash In2entory 3ther Current !ssets Total &urrent Assets Long-ter" !ssets Long-ter" !ssets !ccu"ulate& ;e reciation Total 6on5-term Assets Total Assets 6ia2ilities an3 &apital Current Lia:ilities !ccounts ,aya:le Current Borro+ing 3ther Current Lia:ilities Su2total &urrent 6ia2ilities Long-ter" Lia:ilities Total 6ia2ilities ,ai&-in Ca ital Retaine& <arnings <arnings Total &apital Total 6ia2ilities an3 &apital =et ?ort) $0 $',2'0 $0 $9,290 $24,000 $"",290 $55,000 $0 $6,50$.,540 $0 $!$,0#" $2-,200 $"8,2#" $55,000 $.,7.5 $7,7'0 $0 $!6,$,$ $22,400 $"8,9,$ $55,000 $.,701 $7,040 $0 $!$,,#! $21,600 $",,"#! $55,000 $1-,654 $6,2'0 $0 $!9,9## $20,.00 $#0,,## $55,000 $12,1.0 $5,540 $0 $!,,,20 $20,000 $",,,20 $55,000 ($.,'61* $12,57. $6,7'0 $0 $!9,"68 $1',200 $"8,$68 $55,000 ($6,10.* $12,70' $6,040 $0 $!8,,#9 $1.,400 $",,!#9 $55,000 ($-,-.2* $1-,055 $5,2'0 $0 $!8,"#$ $17,600 $"$,9#$ $55,000 ($-1-* 9$,,60": $28,"#2 9$,,60": $1-,410 $4,540 $0 $!,,9$0 $16,.00 $"#,,$0 $55,000 $-,109$#,!8,: $"0,$62 9$#,!8,: $1-,7.6 $-,7'0 $0 $!,,$,6 $16,000 $"",$,6 $55,000 $6,.7' 9$#!!: $"",!6$ 9$#!!: $1-,5.1 $-,040 $0 $!6,62! $15,200 $"!,82! $55,000 $',614 $2,"2# $"#,!#$ $2,"2# $1-,'72 $2,000 $0 $!$,9,2 $14,400 $"0,",2 $55,000 ($62,2'0* $12,716 $$,#26 $"$,,9, $$,#26 $0 $0 $0 $26,000 $0 $0 $0 $2#,926 $0 $0 $0 $2!,282 $0 $0 $0 $!6,696 $0 $0 $0 $22,082 $0 $0 $0 $2!,#69 $0 $0 $0 $2$,!,0 $0 $0 $0 $26,#,6 $0 $0 $0 $28,"#2 $0 $0 $0 $"0,$62 $0 $0 $0 $"",!6$ $0 $0 $0 $"#,!#$ $0 $0 $0 $"$,,9, Mont) !2 $24,000 $2,000 $0 $26,000 $2-,026 $1,'00 $0 $2#,926 $1.,600 $2,6.$0 $2!,282 $1-,5.' $-,106 $0 $!6,696 $16,.7' $5,20$0 $22,082 $16,066 $5,40$0 $2!,#69 $1',557 $5,614 $0 $2$,!,0 $20,657 $5,.1' $0 $26,#,6 $22,-0. $6,0-4 $0 $28,"#2 $24,-07 $6,256 $0 $"0,$62 $26,675 $6,4'0 $0 $"",!6$ $27,415 $6,7-0 $0 $"#,!#$ $2.,.17 $6,'.0 $0 $"$,,9, Startin5 4alan.es Mont) !2

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