Design Build R Us

Design Build R us
Steve Jensen
970.819.4249
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Table of Contents
1. Executive Summary.....................................................................................................1
1.1. Objectives..............................................................................................................4
1.2. Mission..................................................................................................................5
1.3. Keys to Success.....................................................................................................5
2. Company Summary......................................................................................................5
2.1. Company Ownership.............................................................................................5
2.2. Start-up Summary.................................................................................................5
3. Products and Services...................................................................................................9
4. Market Analysis Summary...........................................................................................9
4.1. Market Segmentation............................................................................................9
4.2. Service Business Analysis..................................................................................13
4.2.1. Competition and Buying Patterns................................................................13
5. Strategy and Implementation Summary....................................................................13
5.1. SWOT Analysis..................................................................................................13
5.1.1. Strengths......................................................................................................14
5.1.2. Weaknesses..................................................................................................14
5.1.3. Opportunities...............................................................................................14
5.1.4. Threats.........................................................................................................14
5.2. Competitive Edge................................................................................................14
5.3. Marketing Strategy..............................................................................................14
5.4. Sales Strategy......................................................................................................14
5.4.1. Sales Forecast..............................................................................................15
5.5. Milestones...........................................................................................................18
6. Web Plan Summary...................................................................................................18
7. Management Summary..............................................................................................18
7.1. Personnel Plan.....................................................................................................18
8. Financial Plan............................................................................................................19
8.1. Important Assumptions.......................................................................................19
8.2. Break-even Analysis...........................................................................................20
8.3. Projected Profit and Loss....................................................................................23
8.4. Projected Cash Flow...........................................................................................24
8.5. Projected Balance Sheet......................................................................................27
8.6. Business Ratios...................................................................................................28
Design Build R us
1. Executive Summary
StructureAll Ltd. will be formed as a consulting firm specializing in structural engineering

services. A home office in Yellowknife, NT will be established the first year of operations to
reduce start up costs. The founder of the firm is a professional engineer with eighteen years of
progressive and responsible experience.
Initial start up costs amount to $20,000. Of this total, $13,000 is required for start up expenses
while the balance is to to be placed in the company accounts as working capital. The founder,
Philip Nolan, provided an initial investment of $20,000 towards start-up costs.
Projected sales and profits for the first three years of operation are summarized below:
Year Sales($) Profits($) Sales/Profit(%)
1 118,000 9,150 7.8
2 130,000 12,650 9.8
3 138,000 15,100 11.0
The firm will specialize in providing three dimensional modeling and visualization to our clients.
State-of-the-art analysis and design tools will be an integral part of the business plan.
Implementation of a quality control and assurance program will provide a focus for production
work.
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Highlights
1.1. Objectives
1. Achieve earnings (EBIT) of $150,000 in the first year of operation.

2. maintaining net revenue of $150,000 and acheiving net revenue of $250,000 at the
end of three years.
3. Engage 1 new design project each month for the next 12 months
4. Engage 1 new construction project by 1/6/11
5. Maintain gross margin of 23%
The objectives for Design Build R us are outlined below:
1. To create a service-base design build firm whose goal is to change the lives
of our chosen customer/partners.
 deliver exceptunal architectural, interior design
2. Sales increase to $1.0 million by end of second year and $1.4 million by end
of third year.
3. To increase the number of clients services by at least 20% per year through
superior performance and word-of mouth referrals.
4. Have a clientele return rate of 90% by end of first year.
5. Become an established community destination by end of first year.
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1. Achieve earnings (EBIT) of $300,000 in the first year of operation.
2. Maintain an average gross margin of 49% throughout the entire operation.
3. Maintain just-in-time (JIT) inventory levels, or 11 turns per year.
4. Increase sales by 15% to $3.5M in second year (FY2003) and $4.2M in third year
(FY2004).
The mission of NaviTag Technologies is to provide shippers or government agencies a

portable, reusable device that will track cargo shipments with greater accuracy than the
event-based historical systems available today.
This electronic tag will track the cargo, not the container, providing the owner with the
ability to choose what cargoes are monitored. It can be introduced anywhere within the
supply chain to provide the security information that government agencies are seeking to
protect U.S. ports from importation of dangerous cargoes.
NaviTag Technologies core revenues will be generated from the sale of these electronic
tags - a NaviTag™ - as well as access charges to retrieve the information. The number of
NaviTags purchased by an individual group is dependent upon the volume of shipments
requiring monitoring.
Access charges are assessed to the NaviTag owner and are established on the basis on the
volume of units in operation. This fee allows access to the NaviTag network and the central
database containing the positional and security alert information transmitted from the
NaviTag.
1.2. Mission
Our mission is to provide clients across Canada's North with structural engineering services
for all types of buildings, from concept planning through to completion, with a highly skilled
professional team working together, using common sense and practical experience.
1. To create a service-base design build firm whose goal is to change the lives of our
chosen customer/partners.
o deliver exceptunal architectural, interior design
1.3. Keys to Success
1. Provide professional quality services on time and on budget.

2. Develop a follow-up strategy to gauge performance with all clients.
3. Implement and maintain a quality control and assurance policy.
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2. Company Summary
StructureAll Ltd. is a new company which provides professional engineering design services for
clients which manage, maintain, and plan for residential, commercial, and industrial type
buildings. Our focus will be the public sector market in remote communities across Canada's
North.
2.1. Company Ownership
StructureAll Ltd. will be created as a limited liability company. The company will be
privately owned by Philip D. Nolan. Leslie C. Goit will also be listed as a Director.
2.2. Start-up Summary
Our start-up expenses amount to $13,000, which allows for initial legal expenses, licenses,
permits, stationary, specialty software, office equipment, and furniture. In addition to these
start-up costs, an initial balance of $7,000 will be placed in the company accounts. The
software purchases include an allowance of $5,000 for AutoCADD® 2000, $1,800 for
National Master Specifications, and $200 for Quickbooks® (accounting package).
Philip Nolan will contribute $20,000 towards the overall start-up costs
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Design Build R us
Start-up

Requirements

Start-up Expenses
Professional Liability Insurance $1,200
Web Site Development $600
Legal Services $500
Business Licenses $1,000
Permit Holder ( NAPEGG ) $500
Software Purchases $7,000
Stationery $600
Office Furniture $600
Office Equipment $500
Other $500
Total Start-up Expenses $13,000

Start-up Assets
Cash Required $7,000
Other Current Assets $0
Long-term Assets $0
Total Assets $7,000

Total Requirements $20,000
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Start-up Funding
Start-up Expenses to Fund $13,000
Start-up Assets to Fund $7,000
Total Funding Required $20,000

Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $7,000
Additional Cash Raised $0
Cash Balance on Starting Date $7,000
Total Assets $7,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding $0
Bills)
Other Current Liabilities (interest- $0
free)
Total Liabilities $0

Capital

Planned Investment
Philip D. Nolan $20,000
Investor 2 $0
Additional Investment Requirement $0
Total Planned Investment $20,000

Loss at Start-up (Start-up ($13,000)
Expenses)
Total Capital $7,000

Total Capital and Liabilities $7,000

Total Funding $20,000
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Design Build R us
Start-up
3. Products and Services
StructureAll Ltd. offers complete structural engineering services. We will focus on buildings with
the following 'Use and Occupancies':
 Residential.
 Commercial.
 Industrial.
The company is 'project' oriented where each project involves:
 Renovations.
 Rehabilitation.
 Additions.
 New construction.
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Design Build R us
We offer innovative and economical design services, maintaining state-of-the-art design

technology. We meet client needs on projects of all sizes and smaller, special design projects.
4. Market Analysis Summary
StructureAll Ltd. will focus on traditional Architect/Engineering (A/E) contracts. The owner will
usually contract the A/E to perform planning and design services. These design services include
preparation of plans, specifications, and estimates.
Construction services may be limited to occasional field visits and certain contract
administration requirements. Typically, these types of projects distribute total design fees
amongst the professionals involved in accordance with the following guideline:
 Architecture Design (65%).

 Structural Design (10%).
 Mechanical Design (15%).
 Electrical Design (10%).
Our most important clients will be established architectural/engineering firms who require
structural engineering services.
4.1. Market Segmentation
The market for engineering services may be summarized with the following groups:
1. Established Architectural and Engineering firms: Typically, the structural

portions of any building project involve a Prime Consultant who pre-selects their
team members and promotes their strengths in a proposal call to prospective
clients. Our strategy is to offer these established firms a viable resource from which
to draw upon. We can undertake the entire structural engineering process or
provide assistance to their own in-house staff.
2. Territorial and Federal Governmental Departments: The Government of the
Northwest Territories (GNWT) and the newly created Nunavut Territory retain
consultants for a variety of purposes. We intend to position ourselves as a local firm
offering expertise in consulting, project management, forensic, and restoration
engineering. The Federal Government also retains consultants for similar purposes.
3. Law Firms: We will market our services to the legal community to provide dispute
resolution services, including arbitration, mediation and expert reports for litigation.
This work is supported by forensic engineering services to identify the cause of
failures.
4. Contractors: We will offer design/build services to contractors for the multitude of
potential projects which the Territorial Government and Nunavut Territory have
recently undertaken. Contractors occasionally require structural engineers to submit
sealed alternatives for equivalents to construction details.
5. Municipal Governments: Remote Municipal Governments in the Territories can
expect to have more autonomy with respect to infrastructure growth and
development in the years to come. This initiative is part of the GNWT mandate. We
will promote our services to the local municipal governments for this purpose. To
attract this market potential, we will offer to train those students in each community
who are interested in engineering as a career choice. On the local front, the City of
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Design Build R us
Yellowknife often provides recommendations to builders and homeowners for

structural engineering services related to renovations, additions, and new
construction.
6. Private Individuals: We will focus attention on homeowners in Yellowknife who
are renovating or contemplating an addition to their residence. We will also promote
home inspections to those parties contemplating the purchase of a home.
7. Realtors: In conjunction with home inspections, we will make all the Realtors
aware of this service.
The Potential Market Chart and the Market Analysis Table are based on percentages which
each of these groups could contribute to the services offered. This manner of describing the
potential market is more appropriate for this type of business. As can be seen, the
Established Architectural/Engineering firms account for 65% of the potential market with
the other participants claiming the balance in smaller proportions.
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Design Build R us
Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growt CAGR
h
Architectural/Engineering 0% 65 65 65 65 65 0.00%
Firms
Territorial/Federal 0% 10 10 10 10 10 0.00%
Governments
Law Firms 0% 5 5 5 5 5 0.00%
Contractors 0% 5 5 5 5 5 0.00%
Municipal Governments 0% 5 5 5 5 5 0.00%
Private Individuals 0% 5 5 5 5 5 0.00%
Realtors 0% 5 5 5 5 5 0.00%
Total 0.00% 100 100 100 100 100 0.00%
Market Analysis (Pie)
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Design Build R us
4.2. Service Business Analysis
The following sections describe in more detail these aspects of the service business
environment:
 Business Participants.
 Competition and Buying Patterns.
 Main Competitors.
4.2.1. Competition and Buying Patterns
Pricing of projects and billing rates are surprisingly variable. In consulting at this
level, it is easier to be priced too low than too high. Clients and potential clients
expect to pay substantial fees for the best quality professional advice. The nature of
the billing, however, is sensitive. Clients are much more likely to be offended when a
job starts at $20K and ends up at $30K because of overruns, than if the same job
started at $30K or even $35K.
Clients rarely compare consultants directly, looking for two, or more, possible
providers of a proposed project or job. Usually they follow word-of-mouth
recommendations and either go for the job or not, rather than selecting from a menu
of possible providers.
The most important element of general competition, by far, is what it takes to keep
clients for repeat business. It is worth making huge concessions in any single project
to maintain a client relationship that brings the client back for future projects.
5. Strategy and Implementation Summary
StructureAll Ltd. will focus on the Western Arctic area initially. We believe the creation of
Nunavut will still provide opportunities for structural engineering services; however a separate
Association of Professional Engineers for Nunavut is anticipated.
We are also licensed to practice in the Yukon Territories, although we have not planned for any
aggressive marketing in this area.
The target client is usually an Architect Manager.
5.1. SWOT Analysis
Item body here
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Design Build R us
5.1.1. Strengths
Item body here
5.1.2. Weaknesses
Item body here
5.1.3. Opportunities
Item body here
5.1.4. Threats
Item body here
5.2. Competitive Edge
StructureAll Ltd. offers the following competitive edge:
 State-of-the-art modeling, design, analysis, and drafting capabilities.

 Quality control and assurance program.
 An Internet website (http:\\www.structureall.com, and e-mail,
info@structureall.com).
5.3. Marketing Strategy
The sections which follow describe in more detail our positioning statement, pricing, and
promotion strategy.
5.4. Sales Strategy
Success in a consulting market is focused on client service and typically translates into
repeat business. We will avoid the pitfall of buying a project, only to find the scope of work
far exceeds renumeration.
When a potential client questions the cost of a project, we explain the benefits and refer to
our proposal which clearly outlines the tasks to be performed. If the budget is for less
money, then we must offer less service.
Billing rates are not negotiated. One exception to this rule would be for not-for-profit
organizations where marketing can be traded for services in kind.
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Design Build R us
5.4.1. Sales Forecast
The following table and chart summarizes forecasted sales. We expect sales to
remain at a constant level after three months of operation. We predict the first two
months of operations will be slow. Revenues will be limited while a generic quality
management plan is formulated and basic office administration tasks are completed.
Direct unit costs for the first year have been set at 30% of unit revenues, which
yields a 70% gross margin. In the third year of operations, we plan to increase gross
margin to 80% as a result of providing a more efficient service to our clients.
Our unit rate for basic consulting services has been set at $80/hour. This is a
conservative assumption based on published salary guideline levels for engineering
professionals. Our unit rate for CADD services is $40/hr.
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Design Build R us
Sales Forecast
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Sales
Project Consulting $55,200 $60,000 $64,000 $0 $0
Project Management $19,200 $20,800 $22,400 $0 $0
Home Inspections $7,680 $8,800 $9,600 $0 $0
Computer Aided Drafting $35,600 $40,000 $42,000 $0 $0
Services
Total Sales $117,680 $129,600 $138,000 $0 $0

Direct Cost of Sales FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Project Consulting $16,560 $15,000 $12,800 $0 $0
Project Management $5,760 $5,200 $4,480 $0 $0
Home Inspections $2,304 $2,200 $1,920 $0 $0
Computer Aided Drafting $10,680 $10,000 $8,400 $0 $0
Services
Subtotal Direct Cost of $35,304 $32,400 $27,600 $0 $0
Sales
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Design Build R us
Sales Monthly
5.5. Milestones
The accompanying table lists important program milestones, with dates and managers in
charge, and budgets for each. The milestone schedule indicates our emphasis on planning
for implementation.
What the table doesn't show is the commitment behind it. Our business plan includes
complete provisions for plan-vs.-actual analysis, which will be updated monthly to compare
the variance and plan for course corrections.
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Design Build R us
Milestones

Milestone Start Date End Date Budget Manager Departme
nt
Complete Incorporation 4/1/1999 4/15/1999 $500 PN Administr
ative
Acquire Tradename for 3/6/1999 3/6/1999 $400 PN Administr
Internet Website ative
Submit Business License 4/1/1999 4/16/1999 $250 PN Administr
Application to City ative
Acquire WCB Coverage 4/1/1999 4/16/1999 $50 PN Administr
ative
Apply for Staad-Pro Core 4/1/1999 4/16/1999 $0 PN Administr
Financing ative
Acquire E&O Insurance 4/1/1999 4/16/1999 $1,200 PN Administr
ative
Other 1/1/1999 1/1/1999 $0 ABC Departme
nt
Totals $2,400
6. Web Plan Summary
Item body here
7. Management Summary
StructureAll Ltd. will initially have one employee who is also acting as general manager. Phil
Nolan will be responsible for all daily operations in the firm.
7.1. Personnel Plan
The following table summarizes our personnel expenditures for the first three years, with
compensation increasing from $50K the first year to $70K in the third. The detailed
monthly personnel plan for the first year is included in the appendix.
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Design Build R us
Personnel Plan
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Name or title $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
Total People 0 0 0 0 0

Total Payroll $0 $0 $0 $0 $0
8. Financial Plan
The financial plan which follows summarizes information regarding the following items:
 Important Assumptions.
 Key Financial Indicators.
 Break-Even Analysis.
 Projected Profit and Loss.
 Projected Cash Flow.
 Projected Balance Sheet.
 Business Ratios.
8.1. Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the
following table as annual assumptions. The monthly assumptions are included in the
appendix.
Some of the more important underlying assumptions are:
 We assume a strong economy, without major recession.

 We assume the creation of Nunavut will not dramatically change the delivery of
engineering services.
 Interest rates, tax rates, and personnel burdens are based on conservative
assumptions.
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Design Build R us
General Assumptions
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Plan Month 1 2 3 4 5
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 16.25% 15.00% 16.25% 15.00% 16.25%
Other 0 0 0 0 0
8.2. Break-even Analysis
The following table and chart summarize our break-even analysis. With estimated monthly
fixed costs of $6,500, billing targets of $10,000 per month will cover our costs. We don't
really expect to reach break-even until a few months into the business operation.
The break-even assumes unit variable costs at 30 percent of unit revenue. The unit
revenue value of $60/hour is an aggregate measure for all the types of services which will
be offered.
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Design Build R us
Break-even Analysis
Break-even Analysis

Monthly Revenue Break-even $3,444

Assumptions:
Average Percent Variable Cost 30%
Estimated Monthly Fixed Cost $2,411
8.3. Projected Profit and Loss
The gross margin for a service-based business is a reflection of the efficiency at which
those services are offered. In the initial year of operations, we have targeted a gross
margin of 70%. This is not an unreasonable figure for a consulting business. For the second
and third year of operations, we have targeted gross margins of 75% and 80% to indicate
overall improved efficiency at service delivery. Net Profit/Sales is determined to be 7.8%
the first year, increasing to 9.8% the second year and 11.0% the third year. In order to
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Design Build R us
fulfill the requirements of the mission statement and simultaneously reduce start up costs,
we have made arrangements to purchase software on quarterly repayment options:
 Staad-Pro Core is a structural engineering design and drafting suite offered through
Research Engineers Ltd. This program fulfills the need to carry out three-
dimensional analysis and design requirements and is a key feature of the business
plan. This program supports Canadian codes and standards. We have contacted the
authorized Canadian reseller (Detech Corporation Ltd.) and will made arrangements
to purchase this tool on four payments of $1,550 over the first year of operations.
 Errors and Omissions Insurance is required for all consultants working on behalf of
the Territorial Governments. Through Falconair Insurance, we have received a
quotation of $1,200/year for this coverage. The first year's premium payments are
included in the start-up costs, with subsequent years indicated at the same annual
premium.
 Website hosting fees are included as quarterly payments to Internic.com, the Web
host. As part of this service, we will have at our disposal file transfer protocol
capabilities. This feature permits us to place electronic media on the Internet for our
clients and strategic allies.
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Pro Forma Profit and Loss

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Sales $117,680 $129,600 $138,000 $0 $0
Direct Costs of Goods $35,304 $32,400 $27,600 $0 $0
Other $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------
Cost of Goods Sold $35,304 $32,400 $27,600 $0 $0

Gross Margin $82,376 $97,200 $110,400 $0 $0
Gross Margin % 70.00% 75.00% 80.00% 0.00% 0.00%

Expenses
Payroll $0 $0 $0 $0 $0
Sales and Marketing and $9,450 $9,750 $9,750 $0 $0
Other Expenses
Depreciation $1,800 $1,800 $1,800 $0 $0
WebSite Hosting Fees $380 $380 $380 $0 $0
Telephone/Fax $2,400 $2,400 $2,400 $0 $0
Software Purchases $6,200 $300 $300 $0 $0
( Staad-Pro Core)
Utilities $1,200 $1,200 $1,200 $0 $0
Errors and Omissions $0 $1,200 $1,200 $0 $0
Insurance
Rent $0 $4,800 $4,800 $0 $0
Payroll Taxes $7,500 $9,000 $10,500 $0 $0
Other $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------
Total Operating Expenses $28,930 $30,830 $32,330 $0 $0

Profit Before Interest and $53,446 $66,370 $78,070 $0 $0
Taxes
EBITDA $55,246 $68,170 $79,870 $0 $0
Interest Expense $179 $495 $830 $1,000 $1,000
Taxes Incurred $8,319 $9,881 $12,552 $0 $0

Net Profit $44,949 $55,994 $64,689 ($1,000) ($1,000)
Net Profit/Sales 38.20% 43.21% 46.88% 0.00% 0.00%
8.4. Projected Cash Flow
Cash flow projections are critical to our success. The monthly cash flow is shown in the
illustration, with one bar representing the cash flow per month, and the other the monthly
balance. The first few months are critical. It may be necessary to inject additional capital in
this time-frame if the need arises. The annual cash flow figures are included here and the
more important detailed monthly numbers are included in the appendix.
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Cash
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Pro Forma Cash Flow

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Cash Received

Cash from Operations
Cash Sales $88,260 $97,200 $103,500 $0 $0
Cash from Receivables $28,652 $32,322 $34,445 $901 $0
Subtotal Cash from $116,912 $129,522 $137,945 $901 $0
Operations

Additional Cash Received
Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $3,300 $3,300 $3,400 $0 $0
Sales of Other Current $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $120,212 $132,822 $141,345 $901 $0

Expenditures FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Expenditures from
Operations
Cash Spending $0 $0 $0 $0 $0
Bill Payments $65,504 $71,332 $71,536 $6,795 $1,000
Subtotal Spent on $65,504 $71,332 $71,536 $6,795 $1,000
Operations

Additional Cash Spent
Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0
Paid Out
Principal Repayment of $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0
Repayment
Long-term Liabilities $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $0
Assets
Purchase Long-term $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $65,504 $71,332 $71,536 $6,795 $1,000

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Net Cash Flow $54,708 $61,491 $69,809 ($5,895) ($1,000)

Cash Balance $61,708 $123,198 $193,008 $187,113 $186,113
8.5. Projected Balance Sheet
The balance sheet in the following table shows managed but sufficient growth of net worth
and a sufficiently healthy financial position. The monthly estimates are included in the
appendix.
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Pro Forma Balance Sheet

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Assets

Current Assets
Cash $61,708 $123,198 $193,008 $187,113 $186,113
Accounts Receivable $768 $846 $901 $0 $0
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $62,476 $124,044 $193,908 $187,113 $186,113

Long-term Assets
Long-term Assets $0 $0 $0 $0 $0
Accumulated Depreciation $1,800 $3,600 $5,400 $5,400 $5,400
Total Long-term Assets ($1,800) ($3,600) ($5,400) ($5,400) ($5,400)
Total Assets $60,676 $120,444 $188,508 $181,713 $180,713

Liabilities and Capital FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Current Liabilities
Accounts Payable $5,427 $5,902 $5,878 $82 $82
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current $5,427 $5,902 $5,878 $82 $82
Liabilities

Long-term Liabilities $3,300 $6,600 $10,000 $10,000 $10,000
Total Liabilities $8,727 $12,502 $15,878 $10,082 $10,082

Paid-in Capital $20,000 $20,000 $20,000 $20,000 $20,000
Retained Earnings ($13,000) $31,949 $87,942 $152,631 $151,631
Earnings $44,949 $55,994 $64,689 ($1,000) ($1,000)
Total Capital $51,949 $107,942 $172,631 $171,631 $170,631
Total Liabilities and $60,676 $120,444 $188,508 $181,713 $180,713
Capital

Net Worth $51,949 $107,942 $172,631 $171,631 $170,631
8.6. Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on
the Standard Industrial Classification (SIC) code 8711, Engineering Services, are shown for
comparison.
Page 25
Design Build R us
Ratio Analysis
FY FY FY FY FY Industry
2011 2012 2013 2014 2015 Profile
Sales Growth 0.00% 10.13% 6.48% 0.00% 0.00% 7.10%

Percent of Total Assets
Accounts Receivable 1.27% 0.70% 0.48% 0.00% 0.00% 35.40%
Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 38.30%
Total Current Assets 102.97 102.99 102.86 102.97 102.99 77.40%
% % % % %
Long-term Assets -2.97% -2.99% -2.86% -2.97% -2.99% 22.60%
Total Assets 100.00 100.00 100.00 100.00 100.00 100.00
% % % % % %

Current Liabilities 8.94% 4.90% 3.12% 0.05% 0.05% 44.50%
Long-term Liabilities 5.44% 5.48% 5.30% 5.50% 5.53% 11.70%
Total Liabilities 14.38% 10.38% 8.42% 5.55% 5.58% 56.20%
Net Worth 85.62% 89.62% 91.58% 94.45% 94.42% 43.80%

Percent of Sales
Sales 100.00 100.00 100.00 100.00 100.00 100.00
% % % % % %
Gross Margin 70.00% 75.00% 80.00% 0.00% 0.00% 0.00%
Selling, General & 62.22% 65.24% 69.07% 0.00% 0.00% 81.80%
Administrative Expenses
Advertising Expenses 0.51% 0.58% 0.54% 0.00% 0.00% 0.20%
Profit Before Interest and 45.42% 51.21% 56.57% 0.00% 0.00% 2.50%
Taxes

Main Ratios
Current 11.51 21.02 32.99 2276.5 2264.3 1.69
4 7
Quick 11.51 21.02 32.99 2276.5 2264.3 1.37
4 7
Total Debt to Total Assets 14.38% 10.38% 8.42% 5.55% 5.58% 56.20%
Pre-tax Return on Net 102.54 61.03% 44.74% -0.58% -0.59% 6.00%
Worth %
Pre-tax Return on Assets 87.79% 54.69% 40.97% -0.55% -0.55% 13.60%

Additional Ratios FY FY FY FY FY
2011 2012 2013 2014 2015
Net Profit Margin 38.20% 43.21% 46.88% 0.00% 0.00% n.a
Return on Equity 86.53% 51.87% 37.47% -0.58% -0.59% n.a

Activity Ratios
Accounts Receivable 38.31 38.31 38.31 0.00 0.00 n.a
Turnover
Collection Days 9 9 9 0 0 n.a
Page 26
Design Build R us
Accounts Payable 13.07 12.17 12.17 12.17 12.17 n.a

Turnover
Payment Days 27 29 30 1,088 30 n.a
Total Asset Turnover 1.94 1.08 0.73 0.00 0.00 n.a

Debt Ratios
Debt to Net Worth 0.17 0.12 0.09 0.06 0.06 n.a
Current Liab. to Liab. 0.62 0.47 0.37 0.01 0.01 n.a

Liquidity Ratios
Net Working Capital $57,04 $118,1 $188,0 $187,0 $186,0 n.a
9 42 31 31 31
Interest Coverage 299.00 134.08 94.06 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.52 0.93 1.37 n.a. n.a. n.a
Current Debt/Total Assets 9% 5% 3% 0% 0% n.a
Acid Test 11.37 20.87 32.84 2276.5 2264.3 n.a
4 7
Sales/Net Worth 2.27 1.20 0.80 0.00 0.00 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a
Page 27
Appendix
Sales Forecast
Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul-11 Aug- Sep- Oct-
10 10 11 11 11 11 11 11 11 11 11
Sales
Project Consulting 0% $4,00 $4,00 $4,00 $4,80 $4,80 $4,80 $4,80 $4,80 $4,80 $4,80 $4,80 $4,80
0 0 0 0 0 0 0 0 0 0 0 0
Project Management 0% $1,60 $1,60 $1,60 $1,60 $1,60 $1,60 $1,60 $1,60 $1,60 $1,60 $1,60 $1,60
0 0 0 0 0 0 0 0 0 0 0 0
Home Inspections 0% $640 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640
Computer Aided Drafting Services 0% $1,60 $2,40 $2,80 $3,20 $3,20 $3,20 $3,20 $3,20 $3,20 $3,20 $3,20 $3,20
0 0 0 0 0 0 0 0 0 0 0 0
Total Sales $7,84 $8,64 $9,04 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2
0 0 0 40 40 40 40 40 40 40 40 40

Direct Cost of Sales Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul-11 Aug- Sep- Oct-
10 10 11 11 11 11 11 11 11 11 11
Project Consulting 0% $1,20 $1,20 $1,20 $1,44 $1,44 $1,44 $1,44 $1,44 $1,44 $1,44 $1,44 $1,44
0 0 0 0 0 0 0 0 0 0 0 0
Project Management 0% $480 $480 $480 $480 $480 $480 $480 $480 $480 $480 $480 $480
Home Inspections 0% $192 $192 $192 $192 $192 $192 $192 $192 $192 $192 $192 $192
Computer Aided Drafting Services 0% $480 $720 $840 $960 $960 $960 $960 $960 $960 $960 $960 $960
Subtotal Direct Cost of Sales $2,35 $2,59 $2,71 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07
2 2 2 2 2 2 2 2 2 2 2 2
Page 28
Appendix
Personnel Plan
10 10 11 11 11 11 11 11 11 11 11
Name or title 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Page 29
Appendix
General Assumptions
10 10 11 11 11 11 11 11 11 11 11
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
% % % % % % % % % % % %
Long-term Interest Rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
% % % % % % % % % % % %
Tax Rate 30.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00
% % % % % % % % % % % %
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 30
Appendix
Pro Forma Profit and Loss

10 10 11 11 11 11 11 11 11 11 11
Sales $7,84 $8,64 $9,04 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2
0 0 0 40 40 40 40 40 40 40 40 40
Direct Costs of Goods $2,35 $2,59 $2,71 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07
2 2 2 2 2 2 2 2 2 2 2 2
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Cost of Goods Sold $2,35 $2,59 $2,71 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07 $3,07
2 2 2 2 2 2 2 2 2 2 2 2

Gross Margin $5,48 $6,04 $6,32 $7,16 $7,16 $7,16 $7,16 $7,16 $7,16 $7,16 $7,16 $7,16
8 8 8 8 8 8 8 8 8 8 8 8
Gross Margin % 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00
% % % % % % % % % % % %

Expenses
Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales and Marketing and Other Expenses $825 $725 $675 $675 $675 $675 $725 $1,27 $675 $675 $1,17 $675
5 5
Depreciation $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
WebSite Hosting Fees $95 $0 $0 $95 $0 $0 $95 $0 $0 $95 $0 $0
Telephone/Fax $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Software Purchases ( Staad-Pro Core) $1,55 $0 $0 $1,55 $0 $0 $1,55 $0 $0 $1,55 $0 $0
0 0 0 0
Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Errors and Omissions Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $375 $375 $450 $600 $600 $600 $750 $750 $750 $750 $750 $750
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Page 31
Appendix
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total Operating Expenses $3,29 $1,55 $1,57 $3,37 $1,72 $1,72 $3,57 $2,47 $1,87 $3,52 $2,37 $1,87
5 0 5 0 5 5 0 5 5 0 5 5

Profit Before Interest and Taxes $2,19 $4,49 $4,75 $3,79 $5,44 $5,44 $3,59 $4,69 $5,29 $3,64 $4,79 $5,29
3 8 3 8 3 3 8 3 3 8 3 3
EBITDA $2,34 $4,64 $4,90 $3,94 $5,59 $5,59 $3,74 $4,84 $5,44 $3,79 $4,94 $5,44
3 8 3 8 3 3 8 3 3 8 3 3
Interest Expense $2 $5 $7 $9 $11 $14 $16 $18 $21 $23 $25 $28
Taxes Incurred $657 $674 $712 $568 $815 $814 $537 $701 $791 $544 $715 $790

Net Profit $1,53 $3,81 $4,03 $3,22 $4,61 $4,61 $3,04 $3,97 $4,48 $3,08 $4,05 $4,47
3 9 4 1 7 5 5 3 2 1 3 6
Net Profit/Sales 19.56 44.21 44.63 31.45 45.09 45.07 29.73 38.80 43.76 30.09 39.58 43.71
% % % % % % % % % % % %
Page 32
Appendix
Pro Forma Cash Flow

10 10 11 11 11 11 11 11 11 11 11
Cash Received

Cash from Operations
Cash Sales $5,88 $6,48 $6,78 $7,68 $7,68 $7,68 $7,68 $7,68 $7,68 $7,68 $7,68 $7,68
0 0 0 0 0 0 0 0 0 0 0 0
Cash from Receivables $1,37 $2,10 $2,23 $2,47 $2,56 $2,56 $2,56 $2,56 $2,56 $2,56 $2,56 $2,56
2 0 0 0 0 0 0 0 0 0 0 0
Subtotal Cash from Operations $7,25 $8,58 $9,01 $10,1 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2 $10,2
2 0 0 50 40 40 40 40 40 40 40 40

Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
%
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $275 $275 $275 $275 $275 $275 $275 $275 $275 $275 $275 $275
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $7,52 $8,85 $9,28 $10,4 $10,5 $10,5 $10,5 $10,5 $10,5 $10,5 $10,5 $10,5
7 5 5 25 15 15 15 15 15 15 15 15

Expenditures Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul-11 Aug- Sep- Oct-
10 10 11 11 11 11 11 11 11 11 11

Expenditures from Operations
Cash Spending $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bill Payments $205 $6,10 $4,67 $4,92 $6,82 $5,47 $5,52 $7,01 $6,10 $5,65 $6,97 $6,02
7 7 3 3 3 7 4 0 5 6 3
Subtotal Spent on Operations $205 $6,10 $4,67 $4,92 $6,82 $5,47 $5,52 $7,01 $6,10 $5,65 $6,97 $6,02
Page 33
Appendix
7 7 3 3 3 7 4 0 5 6 3

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $205 $6,10 $4,67 $4,92 $6,82 $5,47 $5,52 $7,01 $6,10 $5,65 $6,97 $6,02
7 7 3 3 3 7 4 0 5 6 3

Net Cash Flow $7,32 $2,74 $4,60 $5,50 $3,69 $5,04 $4,98 $3,50 $4,41 $4,86 $3,53 $4,49
2 8 8 2 2 2 8 1 5 0 9 2
Cash Balance $14,3 $17,0 $21,6 $27,1 $30,8 $35,9 $40,9 $44,4 $48,8 $53,6 $57,2 $61,7
22 70 78 80 72 14 01 02 17 77 16 08
Page 34
Appendix
Pro Forma Balance Sheet

10 10 11 11 11 11 11 11 11 11 11
Assets Starti
ng
Balan
ces

Current Assets
Cash $7,00 $14,3 $17,0 $21,6 $27,1 $30,8 $35,9 $40,9 $44,4 $48,8 $53,6 $57,2 $61,7
0 22 70 78 80 72 14 01 02 17 77 16 08
Accounts Receivable $0 $588 $648 $678 $768 $768 $768 $768 $768 $768 $768 $768 $768
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $7,00 $14,9 $17,7 $22,3 $27,9 $31,6 $36,6 $41,6 $45,1 $49,5 $54,4 $57,9 $62,4
0 10 18 56 48 40 82 69 70 85 45 84 76

Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $150 $300 $450 $600 $750 $900 $1,05 $1,20 $1,35 $1,50 $1,65 $1,80
0 0 0 0 0 0
Total Long-term Assets $0 ($150 ($300 ($450 ($600 ($750 ($900 ($1,0 ($1,2 ($1,3 ($1,5 ($1,6 ($1,8
) ) ) ) ) ) 50) 00) 50) 00) 50) 00)
Total Assets $7,00 $14,7 $17,4 $21,9 $27,3 $30,8 $35,7 $40,6 $43,9 $48,2 $52,9 $56,3 $60,6
0 60 18 06 48 90 82 19 70 35 45 34 76

Liabilities and Capital Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul-11 Aug- Sep- Oct-
10 10 11 11 11 11 11 11 11 11 11

Current Liabilities
Accounts Payable $0 $5,95 $4,51 $4,69 $6,64 $5,29 $5,29 $6,81 $5,91 $5,42 $6,77 $5,83 $5,42
1 5 4 1 1 3 0 3 2 5 6 7
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Page 35
Appendix
Subtotal Current Liabilities $0 $5,95 $4,51 $4,69 $6,64 $5,29 $5,29 $6,81 $5,91 $5,42 $6,77 $5,83 $5,42
1 5 4 1 1 3 0 3 2 5 6 7

Long-term Liabilities $0 $275 $550 $825 $1,10 $1,37 $1,65 $1,92 $2,20 $2,47 $2,75 $3,02 $3,30
0 5 0 5 0 5 0 5 0
Total Liabilities $0 $6,22 $5,06 $5,51 $7,74 $6,66 $6,94 $8,73 $8,11 $7,89 $9,52 $8,86 $8,72
6 5 9 1 6 3 5 3 7 5 1 7

Paid-in Capital $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0 $20,0
00 00 00 00 00 00 00 00 00 00 00 00 00
Retained Earnings ($13, ($13, ($13, ($13, ($13, ($13, ($13, ($13, ($13, ($13, ($13, ($13, ($13,
000) 000) 000) 000) 000) 000) 000) 000) 000) 000) 000) 000) 000)
Earnings $0 $1,53 $5,35 $9,38 $12,6 $17,2 $21,8 $24,8 $28,8 $33,3 $36,4 $40,4 $44,9
3 3 7 08 24 39 84 57 39 20 73 49
Total Capital $7,00 $8,53 $12,3 $16,3 $19,6 $24,2 $28,8 $31,8 $35,8 $40,3 $43,4 $47,4 $51,9
0 3 53 87 08 24 39 84 57 39 20 73 49
Total Liabilities and Capital $7,00 $14,7 $17,4 $21,9 $27,3 $30,8 $35,7 $40,6 $43,9 $48,2 $52,9 $56,3 $60,6
0 60 18 06 48 90 82 19 70 35 45 34 76

Net Worth $7,00 $8,53 $12,3 $16,3 $19,6 $24,2 $28,8 $31,8 $35,8 $40,3 $43,4 $47,4 $51,9
0 3 53 87 08 24 39 84 57 39 20 73 49
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Design Build R us

The undersigned reader acknowledges that the information provided by

It is acknowledged by reader that information to be furnished in this business plan is in all

Upon request, this document is to be immediately returned to

This is a business plan. It does not imply an offering of securities.

StructureAll Ltd. will be formed as a consulting firm specializing in structural engineering

Year Sales($) Profits($) Sales/Profit(%)

1 118,000 9,150 7.8

2 130,000 12,650 9.8

3 138,000 15,100 11.0

1. Achieve earnings (EBIT) of $150,000 in the first year of operation.

The objectives for Design Build R us are outlined below:

1. Achieve earnings (EBIT) of $300,000 in the first year of operation.

2. Maintain an average gross margin of 49% throughout the entire operation.

3. Maintain just-in-time (JIT) inventory levels, or 11 turns per year.

The mission of NaviTag Technologies is to provide shippers or government agencies a

1.3. Keys to Success

1. Provide professional quality services on time and on budget.

2.1. Company Ownership

2.2. Start-up Summary

3. Products and Services

The company is 'project' oriented where each project involves:

We offer innovative and economical design services, maintaining state-of-the-art design

4. Market Analysis Summary

 Architecture Design (65%).

4.1. Market Segmentation

1. Established Architectural and Engineering firms: Typically, the structural

Yellowknife often provides recommendations to builders and homeowners for

Market Analysis (Pie)

4.2. Service Business Analysis

4.2.1. Competition and Buying Patterns

5. Strategy and Implementation Summary

The target client is usually an Architect Manager.

5.1. SWOT Analysis

Item body here

Item body here

Item body here

Item body here

Item body here

5.2. Competitive Edge

StructureAll Ltd. offers the following competitive edge:

 State-of-the-art modeling, design, analysis, and drafting capabilities.

5.3. Marketing Strategy

5.4. Sales Strategy

5.4.1. Sales Forecast

6. Web Plan Summary

Item body here

7.1. Personnel Plan

8.1. Important Assumptions

Some of the more important underlying assumptions are:

 We assume a strong economy, without major recession.

8.2. Break-even Analysis

8.3. Projected Profit and Loss

Pro Forma Profit and Loss

8.4. Projected Cash Flow

Pro Forma Cash Flow

Net Cash Flow $54,708 $61,491 $69,809 ($5,895) ($1,000)

8.5. Projected Balance Sheet

Pro Forma Balance Sheet

8.6. Business Ratios

Accounts Payable 13.07 12.17 12.17 12.17 12.17 n.a

Pro Forma Profit and Loss

Pro Forma Cash Flow