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Like New Carpet Cleaning, located in Bhadohi, will sell carpet and upholstery cleaning
services to Indian County, CT home and condominium owners, building its brand around
the fact that it will make carpets look "like new." To that end, the business will raise
$57,500 from outside investors to purchase its delivery van, carpet-cleaning equipment,
and develop a unique, service-oriented website which will keep administrative costs low
and drive sales through its simple and easy accessibility for the consumer.
The initial customer base will be home owners with a high percentage of their floors
carpeted, within a 5-mile radius of Bhadohi, CT, and soon within all of Indian County.
Sales are projected to grow at 25% per year as the business expands into new markets.
Profitability will be the goal only after the business grows to a significant scale and
becomes a major player in the local market. At that point, the business will enjoy
significantly lower expenses as well as an infrastructure which positions it well for future
expansion.
SADDAM HUSAIN
Page 1
Objectives
Like New Carpet Cleaners seeks to establish a substantial foothold in the local carpetcleaning business in Indian County, CT, and position itself for expansion either through
company-run offices or franchising. The following goals represent these objectives:
Mission
Like New Carpet Cleaners will bring simplicity and automation to carpet cleaning service
for homes, helping home owners maintain beautiful carpets and a beautiful home and
saving them from the cost of replacing carpets.
Keys to Success
1.
2.
3.
SADDAM HUSAIN
Page 2
Company Summary
Like New Carpet Cleaners will be a local carpet-cleaning service doing business in
Indian County, Connecticut. Established in June 2016 as an LLC, Like New Carpet
Cleaners was founded by Saddam husain and Aftab husain, who operate the business out
of their home office in Bhadohi, CT.
Company Ownership
Saddam husain and Aftab husain founded Like New Carpet Cleaners as an LLC in June
2016. Each own 50% of the company.
Start-up Summary
The startup expenses for the business are primarily in three strategic areas:
1.
2.
3.
The business will be based out of a home office, which will limit initial rent and overhead
costs.
SADDAM HUSAIN
Page 3
START-UP REQUIREMENTS
Start-up Expenses
Legal
$1,500
Stationery etc.
$1,000
Insurance
$2,000
Rent
$1,000
Website
$30,000
SADDAM HUSAIN
Page 4
Other
$2,000
$37,500
Start-up Assets
Cash Required
$30,000
$0
Long-term Assets
$30,000
TOTAL ASSETS
$60,000
Total Requirements
$97,500
Services
Like New Carpet Cleaners services and products will include:
Furniture Cleaning
Area Rugs
SADDAM HUSAIN
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Gift Certificates
The company will focus on cleaning carpets, rugs, and upholstered items and will seek to
build and maintain its expertise in this area; its services will not include hardwood floors
or other home-cleaning services.
Through its website, the company will offer the service of easy scheduling and the set-up
of automated recurring appointments for its regular customers.
The Indian carpet and upholstery cleaning service sector was estimated at $5.3 billion in
20015 by Market data Enterprises. The market is broken into residential and commercial
services. While only moderate growth is estimated for the next five years, the national
market is highly competitive.
The initial market for Like New Carpet Cleaners is residential services in Indian County,
CT, beginning with a five-mile radius of Bhadohi, CT. The population of Indian County
is approximately 895,000 with 225,000 owner-occupied condos and homes. It is
estimated that 40,000 of these owner-occupied homes and condos are within that fivemile radius. These 40,000 owners spend an estimated $4 million per year on carpet,
upholstery, and other floor-cleaning services. For that reason, we have chosen this as our
initial market.
Market Segmentation
Customers for this industry are broken into the following targets:
SADDAM HUSAIN
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Residences require a higher level of customer support, pay higher rates on average, and
often include additional opportunities to sell related services to home owners.
Businesses require less customer support and service, pay lower rates on average, and
generally seek ongoing services which can repeat the same tasks without much room for
upselling.
MARKET ANALYSIS
YEAR 1
Potential Customers
YEAR 2
YEAR 3
YEAR 4
YEAR 5
Growth
CAGR
Large Homes
25%
10,000
12,500
15,625
19,531
24,414
25.00%
Medium Homes
25%
20,000
25,000
31,250
39,063
48,829
25.00%
SADDAM HUSAIN
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Total
25%
10,000
12,500
15,625
19,531
24,414
25.00%
25.00%
40,000
50,000
62,500
78,125
97,657
25.00%
SADDAM HUSAIN
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Cleaning services are generally managed out of a central office. Delivery vans are used to
transport equipment and cleaning crews from the central office to customer homes.
Services are generally ordered by phone. For large homes, on-site consultations are given
to develop a more accurate quote for cleaning service, rather than quoting a price site
unseen. Some online ordering is done, but most small businesses rely on phone
conversations to gather the information needed to quote a price to customers.
The website for Like New Carpet Cleaners will convert Web users to ordering cleaning
services because of the simplicity of the process, customization of services, and the
ability of the online system to red flag inquiries which require additional attention.
For new customers, the site will include:
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Client testimonials
A list of services
For current customers, the website will also be an account management tool, allowing
them to:
The website will have the functionality to provide quotes to most customers, based on
their entries about the services needed, size of their space, furniture, carpets, etc. For
certain specifications (determined by the founders) the system will be unable to provide a
quote and will refer the inquiry to the sales department for further investigation. Clients
will pay by credit card (using a security protocol connection for sending credit card
information over the Internet) and can have their credit card saved on file for easier
booking in the future.
Page 10
carpet cleaning for the local market, with Google Adwords. Like New Carpet Cleaners
will retain the services of a search engine marketing firm to set up and optimize its
Google Adwords account.
Search engine optimization will be based on the initial design of the website to make it
search-engine friendly, and on building links over time from other related websites to
increase its Google ranking. Content will also be added to the website, including
informative articles about carpet cleaning, written by the company founders and other
experts, in order to increase the website's standing on the Internet as a resource for
information on carpet cleaning.
Development Requirements
The front end of the website will require the pages previously discussed in the summary
as well as the standard contact page and legal disclaimers.
The back end of the website will require:
The website will be built over two months. A quote of $30,000 has been given for the
needed functionality and has been verified by advisors with web development expertise
as an appropriate rate. The two-month period will allow three weeks for testing and
debugging at the end of the period.
The website will require ongoing maintenance which is shown on the profit and loss
statement as an operating expense. Either the same firm that created the site will be
retained for ongoing maintenance and updates, or a new firm will be selected.
Strategy and Implementation Summary
SADDAM HUSAIN
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The strategy of Like New Carpet Cleaning is to expand rapidly within Indian County, CT,
targeting residential customers only, with an eye towards proving its model as scalable on
a statewide level. To that end, it will seek funding for its initial five years of growth and
then an additional round of funding to support that growth after five years. The strategy
includes the following priorities:
Build its brand around the fact that carpets will look "like new"
after cleanings, saving customers worry and expense.
Competitive Edge
The website of Like New Carpet Cleaning will offer complete sales, service, and
scheduling applications online. This allows the business to reduce its operating costs,
establish a business that can scale up quickly, and still provide a good customer
experience. This online scheduling approach lets customers sign up for carpet cleaning
services any time, day or night. This is a convenience that will be appreciated by the
customer. It is an asset which it will be difficult for competitors to imitate because of the
high cost of implementation.
Marketing Strategy
The marketing strategy is to promote and build a base of residential customers within a
five-mile radius of Bhadohi, CT.
This will include:
SADDAM HUSAIN
Page 12
The marketing campaign will then move to web advertising via search engine marketing
(Google Adwords) and search engine optimization to capitalize on converting those
searching for carpet cleaning services locally into sales.
Sales Strategy
Like New Carpet Cleaners will automate its sales on its website. In the first year a target
of 75% of sales will be conducted entirely on its website with minimal need for
interaction with a salesperson. By its fifth year of operation, 90% of sales will be
conducted entirely on its website. This includes the customer entry of details on their
needs, the quoting of prices, client acceptance of the price and entry of a credit card, and
scheduling of the services. The back-end of the website will store customer data and
allow the owners to change pricing and services offered.
The owners, Aftab Husain and Saddam husain , will answer client queries which cannot
be handled by the website service, based on specific emails that come in or website
inquiries which are flagged as requiring personal attention. They will serve these clients
with home estimates when necessary, using this experience to develop a stronger webbased model going forward. No commissioned salespeople will be hired, as the intention
is to create a web-based model.
SADDAM HUSAIN
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Sales Forecast
The primary revenue streams for Like New Carpet Cleaners will be carpet cleaning and
intensive spot treatments. As the company will brand itself as the leader in making
carpets look "like new," these will be the drivers of growth. Additional services will be
sold primarily to customers who seek out Like New for its carpet treatments.
Average services are defined as the following, for the purpose of the sales forecast:
Cost of sales is expected to be 35% for the labor of cleaning staff. The remaining 4-10%,
depending on the service, is for cleaning supplies and gasoline applied to the job to
transport crew and equipment.
Over the first year, rapid growth is anticipated month over month as customer reviews
come in and the simplicity and assurance of the web model is tested by the customer. A
25% annual growth is estimated as the business expands to cover all of Indian County,
with additional bases of operation throughout the county. Growth will be primarily
through the company's geographic expansion and secondarily through deeper penetration
in each town as word-of-mouth grows.
The main impediment to this rapid growth would be the reluctance of customers to switch
from their current carpet cleaning services. This risk will be mitigated by offering
incentives to customers who switch and no-commitment trial prices. Competitors are
unlikely to offer the same web-based model as their entire infrastructures are built around
the use of salespeople, customer service reps, and in-person sales appointments.
SADDAM HUSAIN
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SALES FORECAST
YEAR 1
YEAR 2
YEAR 3
YEAR 4
Carpet Cleaning
3,054
3817
4772
5965
Furniture Cleaning
2,310
2888
3609
4512
3,054
3817
4772
5964
Area Rugs
1,486
1857
2322
2902
Other Services
1,486
1857
2322
2902
SADDAM HUSAIN
Page 15
Unit Sales
YE
11,390
14,237
17,796
22,245
27
Year 1
Year 2
Year 3
Year 4
$100.00
$100.00
$100.00
$100.00
$10
Furniture Cleaning
$25.00
$25.00
$25.00
$25.00
$2
$50.00
$50.00
$50.00
$50.00
$5
Area Rugs
$25.00
$25.00
$25.00
$25.00
$2
Other Services
$25.00
$25.00
$25.00
$25.00
$2
$305,395
$381,744
$477,180
$596,475
$745
$57,750
$72,188
$90,234
$112,793
$140
$152,691
$190,864
$238,580
$298,225
$372
Area Rugs
$37,147
$46,434
$58,042
$72,553
$90
Other Services
$37,147
$46,434
$58,042
$72,553
$90
Unit Prices
Carpet Cleaning
Sales
Carpet Cleaning
Furniture Cleaning
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TOTAL SALES
$590,130
$737,663
$922,078
$1,152,598
$1,440
Year 1
Year 2
Year 3
Year 4
Carpet Cleaning
$30.00
$30.00
$30.00
$30.00
$3
$7.50
$7.50
$7.50
$7.50
$22.50
$22.50
$22.50
$22.50
$2
$9.75
$9.75
$9.75
$9.75
$11.25
$11.25
$11.25
$11.25
$1
Carpet Cleaning
$91,619
$114,523
$143,154
$178,942
$223
Furniture Cleaning
$17,325
$21,656
$27,070
$33,838
$42
$68,711
$85,889
$107,361
$134,201
$167
Area Rugs
$14,487
$18,109
$22,636
$28,296
$35
Other Services
$16,716
$20,895
$26,119
$32,649
$40
Furniture Cleaning
Area Rugs
Other Services
SADDAM HUSAIN
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$208,858
$261,072
$326,341
$407,926
Milestones
The marketing program depends on timely completion of the key marketing tasks. Before
any public marketing can
begin, the website service must be well tested. This will happen over a two-month period.
Upon completion of this work, direct mail and poster/movie screen advertising will begin
concurrently with the goal of making thousands of local residents aware of the new
business and its value proposition. Web advertising will follow with the goal of
converting those locals searching for carpet cleaning to sales.
SADDAM HUSAIN
Page 18
$509
MILESTONES
Milestone
Website Build
Public Advertising
Search Engine
Advertising
Start Date
End Date
Budget
Manager
Depart
8/1/2016
10/3/2016
$30,000
RS
Opera
10/3/2016
12/31/2016
$10,000
FS
Mark
11/23/2016
12/31/2016
$20,000
FS
Mark
11/3/2016
12/31/2016
$10,000
FS
Mark
Totals
SADDAM HUSAIN
$70,000
Page 19
Management Summary
The business will be managed the owners, Saddam husain and Aftab husain.
Aftab husain , CEO, will be head of sales and marketing. He will make client
appointments, when needed, and will orchestrate all marketing activities.
Saddam husain, COO, will be head of operations and finances. She will manage all
financial aspects of the business, including bookkeeping, accounting, and financing. She
will project manage the development of the Web service (working with temporary
programming help to program the service). he will do sales work as necessary, under the
direction of Aftab husain . he will be responsible for the establishment of operations
systems, including the hiring of cleaning crews, the purchase of equipment, and quality
assurance.
In the fourth year of operation, experienced business managers will be hired to take over
the positions of CEO and COO with the goal of preparing the company for franchising.
At this point, Saddam husain and Aftab husain will move to entirely strategic roles.
Personnel Plan
PERSONNEL PLAN
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YE
CEO
$60,000
$60,000
$60,000
$70,000
$75
COO
$60,000
$60,000
$60,000
$70,000
$75
SADDAM HUSAIN
Page 20
$18,000
$40,000
$50,000
$55,000
$60
$0
$0
$40,000
$42,000
$45
$138,000
$160,000
$210,000
$237,000
Administrative Assistant 2
TOTAL PEOPLE
Total Payroll
A full-time administrative assistant will be hired after six months of operation to take
over bookkeeping, accounts payable, and support of sales and marketing activities. This
will allow Saddam husain and Aftab husain to concentrate their time on strategic
endeavors, including opportunities for expansion, with new bases of operation beyond
their initial target area. This individual will transition into the role of administrative
manager, or be replaced by an individual who can handle management. After two years of
operation, an additional administrative assistant will be hired.
Financial Plan
Like New Carpet Cleaning will add at least one new local base each year, consisting of
parking for the company van and storage for cleaning equipment and supplies. This
future growth will be financed by cash generated from existing locations and debt to
finance vehicle and cleaning equipment purchases.
SADDAM HUSAIN
Page 21
$255
Start-up Funding
Start-up funding will be provided by a combination of owner investment and investor
funding, with a small amount of debt. The owners will contribute $20,000 of initial
funding to develop a prototype of the website. Investors will contribute $57,500 for a
30% share of the company.
START-UP FUNDING
$37,500
$60,000
$97,500
Assets
$30,000
$30,000
$0
$30,000
TOTAL ASSETS
SADDAM HUSAIN
$60,000
Page 22
Liabilities
Current Borrowing
$0
Long-term Liabilities
$15,000
$5,000
$0
TOTAL LIABILITIES
$20,000
Capital
Planned Investment
Owners
$20,000
Investor
$57,500
$0
$77,500
SADDAM HUSAIN
($37,500)
Page 23
TOTAL CAPITAL
$40,000
$60,000
Total Funding
$97,500
Break-even Analysis
The business will benefit from a low monthly break-even point due to the assignment of
most costs directly to the cleaning service (gasoline, cleaning crew labor, and cleaning
products) and the low payroll that is achieved by leveraging Like New's website, which
will reduce administrative costs.
SADDAM HUSAIN
Page 24
BREAK-EVEN ANALYSIS
705
$36,506
Assumptions:
$51.81
$18.34
SADDAM HUSAIN
$23,586
Page 25
SADDAM HUSAIN
Page 26
SADDAM HUSAIN
Page 27
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
Sales
$590,130
$737,663
$922,078
$1,152,598
$1,440,747
$208,858
$261,072
$326,341
$407,926
$509,907
$0
$0
$0
$0
$0
$208,858
$261,072
$326,341
$407,926
$509,907
$381,272
$476,590
$595,738
$744,672
$930,840
Gross Margin
SADDAM HUSAIN
Page 28
Gross Margin %
64.61%
64.61%
64.61%
64.61%
64.61%
$138,000
$160,000
$210,000
$237,000
$255,000
$60,000
$70,000
$80,000
$90,000
$100,000
$6,000
$10,000
$12,000
$18,000
$30,000
$10,200
$30,000
$40,000
$50,000
$60,000
Utilities
$1,200
$2,000
$2,500
$3,000
$3,500
Insurance
$3,600
$4,000
$5,000
$6,500
$8,000
$52,029
$63,161
$80,451
$35,550
$38,250
Website Maintenance/Hosting
$6,000
$7,000
$8,000
$9,000
$10,000
Other
$6,000
$7,000
$8,000
$9,000
$10,000
$283,029
$353,161
$445,951
$458,050
$514,750
$98,243
$123,429
$149,787
$286,622
$416,090
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Payroll Taxes
SADDAM HUSAIN
Page 29
EBITDA
$104,243
$133,429
$161,787
$304,622
$446,090
$688
$0
$0
$0
$0
Taxes Incurred
$29,267
$37,029
$44,936
$85,987
$124,827
Net Profit
$68,289
$86,400
$104,851
$200,635
$291,263
Net Profit/Sales
11.57%
11.71%
11.37%
17.41%
20.22%
Interest Expense
SADDAM HUSAIN
Page 30
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
$590,130
$737,663
$922,078
$1,152,598
$1,440,747
$590,130
$737,663
$922,078
$1,152,598
$1,440,747
$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
Cash Received
Cash Sales
SADDAM HUSAIN
Page 31
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$590,130
$737,663
$922,078
$1,152,598
$1,440,747
Year 1
Year 2
Year 3
Year 4
Year 5
Cash Spending
$138,000
$160,000
$210,000
$237,000
$255,000
Bill Payments
$308,546
$516,001
$585,861
$688,600
$850,715
$446,546
$676,001
$795,861
$925,600
$1,105,715
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Expenditures
SUBTOTAL SPENT ON
OPERATIONS
SADDAM HUSAIN
Page 32
$15,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$18,000
$30,000
$30,000
$30,000
$30,000
$0
$0
$0
$0
$0
$479,546
$706,001
$825,861
$955,600
$1,135,715
$110,584
$31,662
$96,218
$196,997
$305,032
Cash Balance
$140,584
$172,245
$268,463
$465,460
$770,492
Dividends
YEAR 1
SADDAM HUSAIN
YEAR 2
Page 33
YEAR 3
YEAR 4
YEAR 5
Assets
Current Assets
Cash
$140,584
$172,245
$268,463
$465,460
$770,492
$0
$0
$0
$0
$0
$140,584
$172,245
$268,463
$465,460
$770,492
$48,000
$78,000
$108,000
$138,000
$168,000
$6,000
$16,000
$28,000
$46,000
$76,000
$42,000
$62,000
$80,000
$92,000
$92,000
$182,584
$234,245
$348,463
$557,460
$862,492
Year 1
Year 2
Year 3
Year 4
Year 5
$74,295
$39,556
$48,923
$57,285
$71,053
$0
$0
$0
$0
$0
Long-term Assets
Long-term Assets
Accumulated Depreciation
TOTAL ASSETS
Current Liabilities
Accounts Payable
Current Borrowing
SADDAM HUSAIN
Page 34
$0
$0
$0
$0
$0
$74,295
$39,556
$48,923
$57,285
$71,053
$0
$0
$0
$0
$0
$74,295
$39,556
$48,923
$57,285
$71,053
$77,500
$77,500
$77,500
$77,500
$77,500
($37,500)
$30,789
$117,190
$222,040
$422,676
$68,289
$86,400
$104,851
$200,635
$291,263
TOTAL CAPITAL
$108,289
$194,690
$299,540
$500,176
$791,439
$182,584
$234,245
$348,463
$557,460
$862,492
$108,289
$194,690
$299,540
$500,176
$791,439
SUBTOTAL CURRENT
LIABILITIES
Long-term Liabilities
TOTAL LIABILITIES
Paid-in Capital
Retained Earnings
Earnings
Net Worth
SADDAM HUSAIN
Page 35
Business Ratios
The business will have higher SGA expenses as a ratio of sales compared to the carpet
and upholstery cleaning industry as it requires a more professional, senior-level staff
during its first years of operation. These years are key to establishing the systems and
procedures which can be scaled for expansion. SGA as a percentage of sales will drop to
lower than the industry average after this expansion due to the reduction in staff and
office overhead allowed by its Web-based sales model. Savings from this will be put into
advertising to support the rapid growth of the business.
RATIO ANALYSIS
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
INDUSTRY
PROFILE
n.a.
25.00%
25.00%
25.00%
25.00%
-0.71%
0.00%
0.00%
0.00%
0.00%
0.00%
53.59%
77.00%
73.53%
77.04%
83.50%
89.33%
70.11%
Long-term Assets
23.00%
26.47%
22.96%
16.50%
10.67%
29.89%
TOTAL ASSETS
100.00
100.00
100.00
100.00
100.00
100.00%
Sales Growth
Percent of Total
Assets
SADDAM HUSAIN
Page 36
40.69%
16.89%
14.04%
10.28%
8.24%
37.94%
0.00%
0.00%
0.00%
0.00%
0.00%
54.53%
Total Liabilities
40.69%
16.89%
14.04%
10.28%
8.24%
92.47%
NET WORTH
59.31%
83.11%
85.96%
89.72%
91.76%
7.53%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Gross Margin
64.61%
64.61%
64.61%
64.61%
64.61%
59.56%
53.04%
52.90%
53.24%
47.20%
44.39%
28.35%
Advertising Expenses
10.17%
9.49%
8.68%
7.81%
6.94%
1.21%
16.65%
16.73%
16.24%
24.87%
28.88%
8.19%
1.89
4.35
5.49
8.13
10.84
1.24
Current Liabilities
Long-term Liabilities
Percent of Sales
Sales
Main Ratios
Current
SADDAM HUSAIN
Page 37
Quick
1.89
4.35
5.49
8.13
10.84
1.18
40.69%
16.89%
14.04%
10.28%
8.24%
92.47%
90.09%
63.40%
50.01%
57.30%
52.57%
696.24%
Pre-tax Return on
Assets
53.43%
52.69%
42.98%
51.42%
48.24%
52.41%
Additional Ratios
Year 1
Year 2
Year 3
Year 4
Year 5
11.57%
11.71%
11.37%
17.41%
20.22%
n.a
Return on Equity
63.06%
44.38%
35.00%
40.11%
36.80%
n.a
5.09
12.17
12.17
12.17
12.17
n.a
28
43
27
28
27
n.a
3.23
3.15
2.65
2.07
1.67
n.a
Activity Ratios
Accounts Payable
Turnover
Payment Days
SADDAM HUSAIN
Page 38
Debt Ratios
0.69
0.20
0.16
0.11
0.09
n.a
1.00
1.00
1.00
1.00
1.00
n.a
$66,289
$132,690
$219,540
$408,176
$699,439
n.a
142.90
0.00
0.00
0.00
0.00
n.a
Assets to Sales
0.31
0.32
0.38
0.48
0.60
n.a
Current Debt/Total
Assets
41%
17%
14%
10%
8%
n.a
Acid Test
1.89
4.35
5.49
8.13
10.84
n.a
Sales/Net Worth
5.45
3.79
3.08
2.30
1.82
n.a
Dividend Payout
0.00
0.00
0.00
0.00
0.00
n.a
Liquidity Ratios
Interest Coverage
Additional Ratios
SADDAM HUSAIN
Page 39
Long-term Plan
The business's financial strategy is to grow rapidly to the point where its investment in its
website and infrastructure can be shown to provide much greater revenue than that of the
competition's more traditional approach of working with salaried salespeople. At this
point, the business will present a viable model for a second round of equity financing to
move towards a regional and then statewide franchise. At this point there will be the
potential for initial investors to cash out of the business.
Appendix
SALES FORECAST
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
10
11
12
60
74
92
114
142
176
218
270
335
416
516
639
40
50
64
80
101
127
160
202
254
320
404
508
60
74
92
114
142
176
218
270
335
416
516
639
Area Rugs
20
26
34
44
57
74
96
125
163
212
276
358
Other
20
26
34
44
57
74
96
125
163
212
276
358
200
251
316
397
499
627
789
994
1,251
1,576
1,986
2,504
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month
Month 11
Month 12
Unit Sales
Carpet
Cleaning
Furniture
Cleaning
Intensive
Spot
Treatment
Services
TOTAL
UNIT
SALES
Unit
Prices
10
SADDAM HUSAIN
Page 40
Carpet
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$100.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
Area Rugs
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
Other
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$6,000
$7,440
$9,226
$11,440
$14,186
$17,591
$21,813
$27,048
$33,540
$41,590
$51,572
$63,949
$1,000
$1,260
$1,588
$2,001
$2,521
$3,176
$4,002
$5,043
$6,354
$8,006
$10,088
$12,711
$3,000
$3,720
$4,613
$5,720
$7,093
$8,795
$10,906
$13,523
$16,769
$20,794
$25,785
$31,973
Area Rugs
$500
$650
$845
$1,098
$1,427
$1,855
$2,412
$3,136
$4,077
$5,300
$6,890
$8,957
Other
$500
$650
$845
$1,098
$1,427
$1,855
$2,412
$3,136
$4,077
$5,300
$6,890
$8,957
Cleaning
Furniture
Cleaning
Intensive
Spot
Treatment
Services
Sales
Carpet
Cleaning
Furniture
Cleaning
Intensive
Spot
Treatment
Services
TOTAL
$11,000 $13,720 $17,117 $21,357 $26,654 $33,272 $41,545 $51,886 $64,817 $80,990
SALES
Direct
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Unit Costs
Carpet
$101,22 $126,547
Month
Month 11
Month 12
$30.00
$30.00
10
30.00%
$30.00
$30.00
$30.00
$30.00
$30.00
$30.00
Cleaning
SADDAM HUSAIN
Page 41
$30.00
$30.00
$30.00
$30.00
Furniture
30.00%
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
$7.50
45.00%
$22.50
$22.50
$22.50
$22.50
$22.50
$22.50
$22.50
$22.50
$22.50
$22.50
$22.50
$22.50
$9.75
$9.75
$9.75
$9.75
$9.75
$9.75
$9.75
$9.75
$9.75
$9.75
$9.75
$9.75
$11.25
$11.25
$11.25
$11.25
$11.25
$11.25
$11.25
$11.25
$11.25
$11.25
$11.25
$11.25
$1,800
$2,232
$2,768
$3,432
$4,256
$5,277
$6,544
$8,114
$10,062
$12,477
$15,472
$19,185
$300
$378
$476
$600
$756
$953
$1,201
$1,513
$1,906
$2,402
$3,026
$3,813
$1,350
$1,674
$2,076
$2,574
$3,192
$3,958
$4,908
$6,085
$7,546
$9,357
$11,603
$14,388
Area Rugs
$195
$254
$330
$428
$557
$723
$941
$1,223
$1,590
$2,067
$2,687
$3,493
Other
$225
$293
$380
$494
$642
$835
$1,085
$1,411
$1,835
$2,385
$3,101
$4,031
$3,870
$4,830
$6,030
$7,529
$9,403
$11,746
$14,678
$18,347
$22,939
$28,688
$35,889
$44,910
Cleaning
Intensive
Spot
Treatment
Other
45.00%
Services
Direct
Cost of
Sales
Carpet
Cleaning
Furniture
Cleaning
Intensive
Spot
Treatment
Services
Subtotal
Direct
Cost of
Sales
PERSONNEL PLAN
SADDAM HUSAIN
Page 42
MONTH
1
MONTH
2
MONTH
3
MONTH
4
MONTH
5
MONTH
6
MONTH
7
MONTH
8
MONTH
9
MONTH
10
MONTH
11
MONTH
12
CEO
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
COO
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Administrative
Assistant/
Manager
$0
$0
$0
$0
$0
$0
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
Administrative
Assistant 2
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
TOTAL
PEOPLE
Total Payroll
Sales
TOTAL COST OF
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
10
11
12
$11,000
$13,720
$17,117
$21,357
$26,654
$33,272
$41,545
$51,886
$64,817
$3,870
$4,830
$6,030
$7,529
$9,403
$11,746
$14,678
$18,347
$22,939
$28,688
$35,889
$44,910
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,870
$4,830
$6,030
$7,529
$44,910
$7,130
$8,890
$11,087
$13,828
$17,251
$21,526
$26,867
$33,539
$41,878
$52,302
$65,336
$81,637
64.82%
64.80%
64.77%
64.75%
64.72%
64.70%
64.67%
64.64%
64.61%
64.58%
64.55%
64.51%
SALES
Gross Margin
Gross Margin %
SADDAM HUSAIN
Page 43
Expenses
Payroll
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Depreciation
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Rent
$500
$500
$500
$500
$500
$500
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$50
$50
$50
$50
$50
$50
$150
$150
$150
$150
$150
$150
$200
$200
$200
$200
$200
$200
$400
$400
$400
$400
$400
$400
Marketing/Promotion
Utilities
Insurance
Payroll Taxes
15%
$2,081
$2,225
$2,404
$2,629
$2,910
$3,262
$4,152
$4,702
$5,391
$6,253
$7,333
$8,686
Website
15%
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$19,331
$19,475
$19,654
$19,879
$20,160
$20,512
$25,402
$25,952
$26,641
$27,503
$28,583
$29,936
($10,585 ($8,567)
($6,051
($2,909
$1,014
$1,465
$7,587
$15,237
$24,799
$36,753
$51,701
($5,551
($2,409
$1,514
$1,965
$8,087
$15,737
$25,299
$37,253
$52,201
$94
$83
$73
$63
$52
$42
$31
$21
$10
$0
($3,207) ($2,598)
($1,840
($895)
$285
$424
$2,264
$4,562
$7,433
$11,023
$15,510
($4,294
($2,087
$666
$989
$5,282
$10,644
$17,344
$25,720
$36,191
-7.83%
2.00%
2.38%
10.18%
16.42%
21.42%
25.41%
28.60%
Maintenance/Hostin
g
Other
Total Operating
Expenses
Profit Before
($12,201)
EBITDA
($11,701)
($10,085 ($8,067)
)
Interest Expense
Taxes Incurred
$115
($3,695)
$104
Net Profit
Net Profit/Sales
($8,621)
-78.37%
($7,482) ($6,063)
SADDAM HUSAIN
Page 44
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
10
11
12
$11,000
$13,720
$17,117
$21,357
$26,654
$33,272
$41,545
$51,886
$64,817
$80,990
$101,225
$126,547
Cash Received
Cash from
Operations
Cash Sales
SUBTOTAL
$11,000 $13,720 $17,117 $21,357 $26,654 $33,272 $41,545 $51,886 $64,817 $80,990
CASH FROM
$101,22 $126,547
5
OPERATION
S
Additional
Cash Received
Sales Tax,
0.00%
$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
VAT, HST/GST
Received
New Current
Borrowing
New Other
Liabilities
(interest-free)
Sales of Other
Current Assets
SADDAM HUSAIN
Page 45
New
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Investment
Received
SUBTOTAL
$11,000 $13,720 $17,117 $21,357 $26,654 $33,272 $41,545 $51,886 $64,817 $80,990
CASH
$101,22 $126,547
5
RECEIVED
Expenditures
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month
Month 11
Month 12
10
Expenditures
from
Operations
Cash
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$13,000
$13,000
$13,000
$13,000
$13,000
$13,000
$5,304
$9,173
$10,768
$12,762
$15,254
$18,370
$22,271
$27,258
$33,356
$40,989
$50,541
$62,500
$15,304 $19,173 $20,768 $22,762 $25,254 $28,370 $35,271 $40,258 $46,356 $53,989
$63,541
$75,500
Spending
Bill Payments
SUBTOTAL
SPENT ON
OPERATION
S
Additional
Cash Spent
Sales Tax,
$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
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
$1,250
VAT, HST/GST
Paid Out
Principal
Repayment of
Current
Borrowing
Other
Liabilities
Principal
Repayment
Long-term
Liabilities
Principal
SADDAM HUSAIN
Page 46
Repayment
Purchase
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,000
$0
$15,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$16,554 $20,423 $22,018 $24,012 $26,504 $29,620 $39,521 $41,508 $62,606 $55,239
$64,791
$76,750
Other Current
Assets
Purchase
Long-term
Assets
Dividends
SUBTOTAL
CASH SPENT
Cash Balance
$24,446
$17,743
$12,842
$10,187
$150
$3,652
$2,024
$10,378
$2,211
$25,751
$36,434
$49,797
$10,337
$13,988
$16,013
$26,391
$28,601
$54,353
$90,787
$140,584
Assets
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
MONTH
10
11
$30,000
$24,446
$17,743
$12,842
$10,187
$10,337
$13,988
$16,013
$26,391
$28,601
$54,353
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$30,00
$24,44
$17,74
$12,84
$10,18
$10,33
$13,98
$16,01
$26,39
$28,60
Starting
Balances
Current
Assets
Cash
Other
$90,787 $
$0
Current
Assets
TOTAL
CURRENT
ASSETS
SADDAM HUSAIN
Page 47
$54,35 $90,787 $
3
Long-term
Assets
Long-term
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$33,000
$33,000
$48,000
$48,000
$48,000
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
TOTAL
$30,00
$29,50
$29,00
$28,50
$28,00
$27,50
$27,00
$29,50
$29,00
$43,50
LONG-
$60,00
$53,94
$46,74
$41,34
$38,18
$37,83
$40,98
$45,51
$55,39
$72,10
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Assets
Accumulate
d
Depreciation
$43,00 $42,500 $
0
TERM
ASSETS
TOTAL
ASSETS
Liabilities
and Capital
$97,35 $133,28 $
3
Month Month 11 M
10
Current
Liabilities
Accounts
$5,000
$8,817
$10,345
$12,257
$14,646
$17,633
$21,369
$26,154
$32,001
$39,317
$48,474
$59,938
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,000
$8,817
$10,34
$12,25
$14,64
$17,63
$21,36
$26,15
$32,00
$39,31
$2,500
Payable
Current
Borrowing
Other
Current
Liabilities
SUBTOTAL
CURRENT
$48,47 $59,938 $
LIABILITI
ES
Long-term
$15,000
$13,750
$12,500
$11,250
$10,000
$8,750
$7,500
$6,250
$5,000
$3,750
$20,00
$22,56
$22,84
$23,50
$24,64
$26,38
$28,86
$32,40
$37,00
$43,06
$1,250
Liabilities
TOTAL
LIABILITI
SADDAM HUSAIN
Page 48
$50,97 $61,188 $
4
ES
Paid-in
$77,500
$77,500
$77,500
$77,500
$77,500
$77,500
$77,500
$77,500
$77,500
$77,500
$77,500
$77,500
Retained
($37,50
($37,50
($37,50
($37,50
($37,50
($37,50
($37,50
($37,50
($37,50
($37,50
($37,50 ($37,500 (
Earnings
0)
0)
0)
0)
0)
0)
0)
0)
0)
0)
0)
Earnings
$0 ($8,621)
($16,10
($22,16
($26,45
($28,54
($27,88
($26,89
($21,61
($10,96
$6,379
$32,099
3)
5)
9)
7)
1)
2)
0)
6)
Capital
TOTAL
CAPITAL
TOTAL
LIABILITI
$40,00
$31,37
$23,89
$17,83
$13,54
$11,45
$12,11
$13,10
$18,39
$29,03
$46,37 $72,099 $
$60,00
$53,94
$46,74
$41,34
$38,18
$37,83
$40,98
$45,51
$55,39
$72,10
$40,000
$31,379
$23,897
$17,835
$13,541
$11,453
$12,119
$13,108
$18,390
$29,034
$46,379
$97,35 $133,28 $
7
ES AND
CAPITAL
Net Worth
SADDAM HUSAIN
Page 49
$72,099 $