Entrepreneurship and Startup – MBA531A

CIA - III

Submitted in partial fulfilment of the requirements for the degree of Master of Business Administration
By

GROUP - 9

AKHIL MICHAEL - 1827902

ANIN FLETCHER J – 1827904
AYUSH JAISWAL - 1827907

Under the Guidance of

Dr Elangovan N

Institute of Management

CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru

NOVEMBER 2019
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 Table of Contents

1.0 Executive Summary .................................................................................................................... 1

Chart: Highlights .......................................................................................................................... 1
1.1 Objectives.................................................................................................................................... 1
1.2 Mission .......................................................................................................................................... 2
1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 2
2.1 Company Ownership ............................................................................................................... 2
2.2 Start-up Summary ................................................................................................................... 2
Table: Start-up.............................................................................................................................. 3
Chart: Start-up ............................................................................................................................. 3
3.0 Services ............................................................................................................................................ 3
4.0 Market Analysis Summary ........................................................................................................ 4
4.1 Market Segmentation ............................................................................................................. 4
Table: Market Analysis ............................................................................................................... 4
Chart: Market Analysis (Pie) .................................................................................................... 5
4.2 Target Market Segment Strategy ...................................................................................... 5
4.3 Service Business Analysis ..................................................................................................... 5
4.3.1 Competition and Buying Patterns .............................................................................. 6
5.0 Strategy and Implementation Summary ............................................................................ 6
5.1 Competitive Edge ..................................................................................................................... 6
5.2 Marketing Strategy .................................................................................................................. 6
5.3 Sales Strategy ........................................................................................................................... 7
5.3.1 Sales Forecast.................................................................................................................... 7
Table: Sales Forecast ............................................................................................................. 7
Chart: Sales Monthly .............................................................................................................. 8
Chart: Sales by Year ............................................................................................................... 8
5.4 Milestones.................................................................................................................................... 8
Table: Milestones ......................................................................................................................... 9
Chart: Milestones ......................................................................................................................... 9
6.0 Management Summary .............................................................................................................. 9
6.1 Personnel Plan ......................................................................................................................... 10
Table: Personnel ......................................................................................................................... 10
7.0 Financial Plan ............................................................................................................................... 10

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7.1 Start-up Funding .................................................................................................................... 10

Table: Start-up Funding .......................................................................................................... 10
7.2 Important Assumptions ....................................................................................................... 11
7.3 Break-even Analysis .............................................................................................................. 11
Table: Break-even Analysis.................................................................................................... 11
Chart: Break-even Analysis ................................................................................................... 12
7.4 Projected Profit and Loss ..................................................................................................... 12
Table: Profit and Loss ............................................................................................................... 12
Chart: Profit Monthly ................................................................................................................ 13
Chart: Profit Yearly .................................................................................................................... 14
Chart: Gross Margin Monthly................................................................................................. 14
Chart: Gross Margin Yearly .................................................................................................... 15
7.5 Projected Cash Flow .............................................................................................................. 15
Table: Cash Flow ........................................................................................................................ 15
Chart: Cash .................................................................................................................................. 16
7.6 Projected Balance Sheet ...................................................................................................... 16
Table: Balance Sheet ................................................................................................................ 16
7.7 Business Ratios ....................................................................................................................... 17
Table: Ratios ................................................................................................................................ 17
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 6

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1.0 Executive Summary

The company will offer reliability and industry insight to government establishment ,hospitals
and others , enabling it to provide superior service relative to the current service providers.
This will allow the company to rapidly gain market share. Profitability will be reached by month
nine, and revenue for year three will be very comfortable.
.DeliveryEazy is a bike/car/truck delivery service which delivers everything from pin to
automobile.Pick-up and delivery around the clock at a much faster rate than its
competitors.24/7 service comes with customizable option which will attract companies which
will lead to delivery of the

products at bulk quantities.Within 12 months of operation company aims for profits.

Chart: Highlights

1.1 Objectives

• To create a online service based company which will be targeting the customers who needs
delivery at a faster rate.Our primary goal is to exceed customers expectation when
compared to other companies.
• To partner with other service companies to deliver the goods much faster.
• Acheiving a target of more than 30% each year through superior quality of service
• To acheive profitability within in the first year of operation.

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1.2 Mission

DeliveryEazy's mission is to provide environment friendly delivery service both for the firm and
individual customers.We always try to attract high end and low end customers.We will always
try to exceed the expectations through quality service provided.If everything goes well we will
start making the profit by the end of the first year.

1.3 Keys to Success

Inorder to acheive a healthy profit we will have to

• Provide a easy platform such as app or website with customization for the firms and for
collecting feedback for the customers.
• Ensure 100% customer satisfaction by providing feedback solutions.
• Talking and establishing business with other service agents for knowing the current
scenario.This will help to enhance further customization and provide better word of mouth
marketing.

2.0 Company Summary

DeliveryEazy is a bike/car/truck delivery service which delivers everything from pin to

automobile.Pick-up and delivery around the clock at a much faster rate than its
competitors.24/7 service comes with customizable option which will attract companies which
will lead to delivery of the products at bulk quantities.Within 12 months of operation company
aims for profits.

2.1 Company Ownership

Company will be a private corporation owned by Akhil,Anin and ayush.

2.2 Start-up Summary

DeliverEasy will incur the following startup costs

• Office furniture including 3 desks,5 chair 3 file cabinet,50 computer,3 printer,3 power supply
• 5 servers with highspeed internet connection.
• 10 phoneline
• Fax machine and copier
• Development of a website that allows feedback solutions and order updates every minute
• Legal fees
• brouchers
• wireless walkietalkie
• messenger bags with company logo
• delivery bags
• stickers
• T-shirt

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Table: Start-up

Start-up

Requirements

Start-up Expenses
Insurance $20
Rent $100
Computer $25
Other $25
Legal $50
Stationary etc $10
Brouchers $30
R&D $100
Total Start-up Expenses $360

Start-up Assets
Cash Required $10,000
Other Current Assets $2,500
Long-term Assets $7,500
Total Assets $20,000

Total Requirements $20,360

Chart: Start-up

3.0 Services

DeliveryEasy will provide full 24/7 delivery services both for firm and customers.Service can be
used by law firms ,hospitals and other governmental organization.In addition to these
organization we cater service to individual customers and small NGOs.Monthly subscription
options will be given to organizations for better customization and the delivery of products.We
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will target government officers and departments and will be alloting time especially for them
from 7 am to 5 pm and maximum priority will be given for them.Larger packages will be
transported via trucks and smaller packages will be transported through bikes and dimensions
doesnt matter for company.

4.0 Market Analysis Summary

Our company will be servicing bangalore based government organization and

hospitals(medicine) for the first few months.This is a good market to focus on as both parties
need constant service of delivery.State government and hospitals have multiple consignment to
be sent during day time so the contract will be like multiple pickup and drops which will be
customizable and multischeduled.In addition to these individual customers will also be served
by delivering documents to big parcels.We will hire experienced people with industreial
knowledge so as to increase the market share by optimizing the logistics

4.1 Market Segmentation

Our company will service to three distinct group.First group is the government
organizations.This will be the primary target all the files and documents across the state will be
transported through as whether it is to law firm or private instituions documents will be
directed through us.We always try to satisfy the organizations we are dealing with.Next target
will be hospitals,here we will transport medicine and medical equipments and in case of
emergency we act as a ambulance service also.That will be a competitive advantage that no
others ever offered.The third set of customers are the assorted delivery by the customers.This
could come from individual customer to small organizational delivery.

Table: Market Analysis

Market Analysis
2019 2020 2021 2022 2023
Potential Customers Growth CAGR
Government organizations 12% 10,000 11,200 12,544 14,049 15,735 12.00%
Hospitals 10% 5,000 5,500 6,050 6,655 7,321 10.00%
other 6% 8,000 8,480 8,989 9,528 10,100 6.00%
Total 9.57% 23,000 25,180 27,583 30,232 33,156 9.57%

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Chart: Market Analysis (Pie)

4.2 Target Market Segment Strategy

Brouchers will be given to government and hospitals and customization options will be
discussed.Advertisement will be placed in all the delivery vehicles.Flyers and newspaper ads will
be passedout every month.

Our company will target it's market through channels that all goverment firms typically see.
The first is the internally circuited magazine. This is the newsletter that all departments get.
Advertisements will be placed in the journal to increase visibility of different offices inside
government establishment.

This market will also be targeted through a networking scheme based on departmental
contacts.Creating initial breakthroughs especially in departments which are new to the public
which new to the public like health department or excise department will be targeted upon.It is
easy to earn trust if the company has a reputation among government departments.So
customization with discounts will be discussed with the superior chairperson in charge.Allowing
them to get a customer base from the other departments also.The service offered for the
hospitals will be through doctors who will take up the charge during the initial stages.Later on
the information flow will be direct to the lower employees of the company.

4.3 Service Business Analysis

There are approximately 20 different delivery services in the bangalore area, a quarter of these
are bike and truck services that also makes deliveries. The rest are courier or messenger
services. Some use cars and a few use electric bikes as the means of transportation. In general,
the bike deliveries are less expensive because they have lower overhead. In the heart of
downtown, the bike service can be as fast or faster than the car-based courier services because
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of all the automobile traffic.

There are seven different companies that target government organizations and hospitals
catering to their special needs. All of these are car-based services.
The buying habits of government organizations are based on price, convenience, and reliability.

4.3.1 Competition and Buying Patterns

Our company has two competitive edges: reliability and industry insight. Reliability is a
characteristic that is very important to delivery firms. The firms require reliability of delivery.
Often the delivery of documents and medical equipments is critical. Our company achieves
reliability through a redundant back-up system that always provides an alternative method of
delivery if the specific bike service encounters difficulty. By having a back-up system, the
company ensures that even if the primary delivery fails, there is a back-up ready to complete
the delivery.
The second competitive advantage is industry insight. It is a true advantage for DeliverEasy to
have worked as an delivery service for few months in private organizations. This work gave the
industry insight that is not replicable without actually doing the work.The front runners of the
company has a dedicated frienship based than other companies which will allow them to know
the scenario in the government and medical industry.

5.0 Strategy and Implementation Summary

DeliveryEasy will provide full 24/7 delivery services both for firm and customers.Service can be
used by law firms ,hospitals and other governmental organization.In addition to these
organization we cater service to individual customers and small NGOs.Monthly subscription
options will be given to organizations for better customization and the delivery of products.We
will target government officers and departments and will be alloting time especially for them
from 7 am to 5 pm and maximum priority will be given for them.Larger packages will be
transported via trucks and smaller packages will be transported through bikes and dimensions
doesnt matter for company.

5.1 Competitive Edge

Delivery Easy has two main advantages over other companies reliability and industry insight.
Reliability is a characteristic that is very important to delivery firms. The firms require reliability
of delivery. Often the delivery of documents and medical equipments is critical. Our company
achieves reliability through a redundant back-up system that always provides an alternative
method of delivery if the specific bike service encounters difficulty. By having a back-up
system, the company ensures that even if the primary delivery fails, there is a back-up ready to
complete the delivery.
The second competitive advantage is industry insight. It is a true advantage for DeliverEasy to
have worked as an delivery service for few months in private organizations. This work gave the
industry insight that is not replicable without actually doing the work.The front runners of the
company has a dedicated frienship based than other companies which will allow them to know
the scenario in the government and medical industry.

5.2 Marketing Strategy

Our sales will be generated from repeat clients. This service will be established as an easy and
friendly way to shop without the hassle. We will offer low introductory costs for our services. To
ensure that all purchases will be worthwhile for the organization, all of our orders will have a
minimal amount required to cover any expenses incurred. This will be minimal, allowing for our
services to be affordable.
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our company has enough contacts in the bangalore area which has expressed interest in the
service that no expensive advertising will be needed for the first year of operation. Subsequent
advertising will depend on word-of-mouth, a website, telephone directory ads, local newspaper
ads and articles, and brochures.

5.3 Sales Strategy

DeliverEasy recognizes that it is difficult to break into many government organizations and
hospitals and displace their current service provider and will offer a 30% discount for a months
worth of services. While this is a bit of a hit in terms of profitability, it is only a short-term
concern. The long-term gain is securing a repeat customer.
In addition to this economic incentive, DeliverEasy will employ Co-founder's powers of
persuasion when the team is speaking with prospective clients and firms. They will directly
target the company's reliability and fool-proof back-up systems, as well as impress his
recognition of the needs of his clients based their experience with private firms. Experience
features to attract new client.

5.3.1 Sales Forecast

The first month will be used to set up the office and hire and train delivery boys.The second
month will begin to see some sales activity. Sales will ramp up from month three on. There will
be an incremental increase each month as more and more firms become aware of the services
of the company.

Table: Sales Forecast

Sales Forecast
FY 2020 FY 2021 FY 2022
Sales
Government $12,823 $12,500 $15,000
Hospitals $6,959 $8,000 $10,000
Others $5,412 $7,000 $7,500
Total Sales $25,194 $27,500 $32,500

Direct Cost of Sales FY 2020 FY 2021 FY 2022

Government $4,273 $5,000 $5,500
Hospitals $1,996 $2,200 $3,000
Others $1,462 $2,000 $3,500
Subtotal Direct Cost of Sales $7,731 $9,200 $12,000

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Chart: Sales Monthly

Chart: Sales by Year

5.4 Milestones

The DELIVERY EASY will have several milestones early on:

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1.Infrastructure completion. This will be done as a roadmap for the organization. While we do
not need a business plan to raise capital, it will be an indispensable tool for the ongoing
performance and improvement of the company.

2. Hire and train staff.

3. Set up office.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Infrastructure 18-11-2019 18-12-2019 $5,000 John ENGG
Delivery boy training 18-11-2019 18-12-2019 $2,500 Rajesh HR
office setting 18-11-2019 18-12-2019 $3,000 Arun ENGG

Totals $10,500

Chart: Milestones

6.0 Management Summary

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Anin,Akhil and Ayush the founders and owners received their bachelor degree in engineering
from Bangalore university. During the summers, They worked for a bike messenger service in
south bangalore. Upon graduation, they managed a service centre, pursuing his interest in the
service industry. After two years of work in the service industry they were no longer
challenged. In addition to a lack of challenge,they were pressured by their parents, implicitly
but forcefully, to achieve a graduate education.
After three years of experince in service industry they started to float a company. They
gradually earned experience in the field and started there delivery service in the private firm
later moved to government organization.

6.1 Personnel Plan

The company will consist of three co founders completing HR functions, marketing functions,
and general business management. The company will hire a full-time dispatcher and 10 bike
messengers. While bike messengers seem to be transient, the training of a new one is relatively
quick and cheap, so if one leaves, he can be replaced quickly.

Table: Personnel

Personnel Plan
FY 2020 FY 2021 FY 2022
Akhil $421 $450 $550
Anin $536 $570 $600
Ayush $642 $700 $750
delivery boy1 $0 $50 $55
delivery boy2 $0 $70 $65
Total People 42 42 42

Total Payroll $1,599 $1,840 $2,020

7.0 Financial Plan

7.1 Start-up Funding

Growth will occur according to the number of clients and cash flow.
With approximately half of our services provided on credit, collection will be essential. With this
still being a service that is not essential to everyday living, we will show that payments are
necessary immediately. With a concrete system for cash flow, we will be able to keep debt to a
minimum, while still providing a high level of sales.

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $360
Start-up Assets to Fund $20,000
Total Funding Required $20,360

Assets
Non-cash Assets from Start-up $10,000
Cash Requirements from Start-up $10,000
Additional Cash Raised $0

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Cash Balance on Starting Date $10,000

Total Assets $20,000

Liabilities and Capital

Liabilities
Current Borrowing $1,500
Long-term Liabilities $3,000
Accounts Payable (Outstanding Bills) $780
Other Current Liabilities (interest-free) $550
Total Liabilities $5,830

Capital

Planned Investment
Owner $0
Investor $0
Additional Investment Requirement $14,530
Total Planned Investment $14,530

Loss at Start-up (Start-up Expenses) ($360)

Total Capital $14,170

Total Capital and Liabilities $20,000

Total Funding $20,360

7.2 Important Assumptions

The following assumptions are made responding to growth, and are based on economic trends
from the preceding two years.
· A strong economy is expected to continue in the future.
· Many people have annual dates on which purchases are made.
· It is assumed that people are willing to pay for a service if it is an agreeable and convenient
experience.

7.3 Break-even Analysis

This is a conservative figure since contacts have been made, and have already generated many
orders for our services. Companie's goal is to generate twice as much as the breakeven point
for a monthly standard.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $1,033

Assumptions:
Average Percent Variable Cost 31%
Estimated Monthly Fixed Cost $716

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Chart: Break-even Analysis

7.4 Projected Profit and Loss

Buy the Time's projected profit and loss is indicated in the following table. Gross margin should
remain average above 20% the first year, with highest profits due near the end of the year.
This should prove to be accurate, since that is a time when many clients increase their spending

Table: Profit and Loss

Pro Forma Profit and Loss

FY 2020 FY 2021 FY 2022
Sales $25,194 $27,500 $32,500
Direct Cost of Sales $7,731 $9,200 $12,000
Other Costs of Sales $4,273 $4,500 $5,000
Total Cost of Sales $12,004 $13,700 $17,000

Gross Margin $13,190 $13,800 $15,500

Gross Margin % 52.35% 50.18% 47.69%

Expenses
Payroll $1,599 $1,840 $2,020
Marketing/Promotion $1,337 $1,500 $1,800
Depreciation $548 $650 $720
Rent $2,398 $2,500 $2,800
Utilities $1,347 $1,350 $1,400
Insurance $1,120 $1,150 $1,200
Payroll Taxes $240 $276 $303

Total Operating Expenses $8,589 $9,266 $10,243

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Profit Before Interest and Taxes $4,601 $4,534 $5,257

EBITDA $5,149 $5,184 $5,977
Interest Expense $623 $1,078 $1,586
Taxes Incurred $1,194 $1,037 $1,101

Net Profit $2,785 $2,419 $2,570

Net Profit/Sales 11.05% 8.80% 7.91%

Chart: Profit Monthly

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Chart: Profit Yearly

Chart: Gross Margin Monthly

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Chart: Gross Margin Yearly

7.5 Projected Cash Flow

There will be a increase of 21% in the cash received within 2 years.The expenses increased by
31% and the there will be a increase of 154% in cash balance within in 2 years

Table: Cash Flow

Pro Forma Cash Flow

FY 2020 FY 2021 FY 2022
Cash Received

Cash from Operations

Cash Sales $25,194 $27,500 $32,500
Subtotal Cash from Operations $25,194 $27,500 $32,500

Additional Cash Received

Sales Tax, VAT, HST/GST Received $4,535 $4,950 $5,850
New Current Borrowing $744 $775 $800
New Other Liabilities (interest-free) $1,410 $1,658 $1,820
New Long-term Liabilities $4,273 $5,235 $5,862
Sales of Other Current Assets $3,575 $3,800 $3,955
Sales of Long-term Assets $3,847 $4,255 $4,500
New Investment Received $12,823 $12,980 $13,500
Subtotal Cash Received $56,401 $61,153 $68,787

Expenditures FY 2020 FY 2021 FY 2022

Expenditures from Operations

Cash Spending $1,599 $1,840 $2,020
Bill Payments $19,802 $22,903 $27,001
Subtotal Spent on Operations $21,401 $24,743 $29,021

Additional Cash Spent

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Sales Tax, VAT, HST/GST Paid Out $4,535 $4,950 $5,850

Principal Repayment of Current Borrowing $569 $600 $625
Other Liabilities Principal Repayment $548 $610 $625
Long-term Liabilities Principal Repayment $558 $620 $675
Purchase Other Current Assets $586 $635 $720
Purchase Long-term Assets $879 $900 $980
Dividends $325 $370 $400
Subtotal Cash Spent $29,401 $33,428 $38,896

Net Cash Flow $27,000 $27,725 $29,891

Cash Balance $37,000 $64,725 $94,616

Chart: Cash

7.6 Projected Balance Sheet

Table: Balance Sheet

Pro Forma Balance Sheet

FY 2020 FY 2021 FY 2022
Assets

Current Assets
Cash $37,000 $64,725 $94,616
Other Current Assets ($489) ($3,654) ($6,889)
Total Current Assets $36,511 $61,071 $87,727

Long-term Assets
Long-term Assets $4,532 $1,177 ($2,343)
Accumulated Depreciation $548 $1,198 $1,918
Total Long-term Assets $3,984 ($21) ($4,261)

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Total Assets $40,495 $61,050 $83,466

Liabilities and Capital FY 2020 FY 2021 FY 2022

Current Liabilities
Accounts Payable $1,240 $928 $1,117
Current Borrowing $1,675 $1,850 $2,025
Other Current Liabilities $1,412 $2,460 $3,655
Subtotal Current Liabilities $4,327 $5,238 $6,797

Long-term Liabilities $6,715 $11,330 $16,517

Total Liabilities $11,042 $16,568 $23,314

Paid-in Capital $27,353 $40,333 $53,833

Retained Earnings ($685) $1,730 $3,749
Earnings $2,785 $2,419 $2,570
Total Capital $29,453 $44,482 $60,151
Total Liabilities and Capital $40,495 $61,050 $83,466

Net Worth $29,453 $44,482 $60,151

7.7 Business Ratios

The following table provides significant ratios for the delivery services industry. The final
column, Industry Profile, shows ratios for this industry as it is determined by the Standard
Industrial Classification (SIC) Index 7299, "miscellaneous delivery services."

Table: Ratios

Ratio Analysis
FY 2020 FY 2021 FY 2022 Industry Profile
Sales Growth n.a. 9.15% 18.18% -0.77%

Percent of Total Assets

Other Current Assets -1.21% -5.99% -8.25% 29.79%
Total Current Assets 90.16% 100.03% 105.11% 48.52%
Long-term Assets 9.84% -0.03% -5.11% 51.48%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 10.68% 8.58% 8.14% 25.43%

Long-term Liabilities 16.58% 18.56% 19.79% 54.14%
Total Liabilities 27.27% 27.14% 27.93% 79.57%
Net Worth 72.73% 72.86% 72.07% 20.43%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 52.35% 50.18% 47.69% 72.36%
Selling, General & Administrative Expenses 41.30% 41.39% 39.79% 20.43%
Advertising Expenses 5.31% 5.45% 5.54% 0.19%
Profit Before Interest and Taxes 18.26% 16.49% 16.18% 7.28%

Main Ratios
Current 8.44 11.66 12.91 1.43
Quick 8.44 11.66 12.91 1.38
Total Debt to Total Assets 27.27% 27.14% 27.93% 79.57%
Pre-tax Return on Net Worth 13.51% 7.77% 6.10% 130.03%
Pre-tax Return on Assets 9.82% 5.66% 4.40% 26.56%

Additional Ratios FY 2020 FY 2021 FY 2022

Net Profit Margin 11.05% 8.80% 7.91% n.a
Return on Equity 9.46% 5.44% 4.27% n.a

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Activity Ratios
Accounts Payable Turnover 16.34 24.33 24.33 n.a
Payment Days 14 18 14 n.a
Total Asset Turnover 0.62 0.45 0.39 n.a

Debt Ratios
Debt to Net Worth 0.37 0.37 0.39 n.a
Current Liab. to Liab. 0.39 0.32 0.29 n.a

Liquidity Ratios
Net Working Capital $32,184 $55,833 $80,929 n.a
Interest Coverage 7.39 4.20 3.31 n.a

Additional Ratios
Assets to Sales 1.61 2.22 2.57 n.a
Current Debt/Total Assets 11% 9% 8% n.a
Acid Test 8.44 11.66 12.91 n.a
Sales/Net Worth 0.86 0.62 0.54 n.a
Dividend Payout 0.12 0.15 0.16 n.a

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 Appendix

Table: Sales Forecast

Sales Forecast
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Sales
Government $500 $565 $638 $721 $815 $921 $1,041 $1,176 $1,329 $1,502 $1,697 $1,918
Hospitals $350 $300 $330 $385 $412 $560 $612 $710 $700 $500 $900 $1,200
Others $250 $300 $280 $290 $310 $412 $430 $500 $500 $650 $740 $750
Total Sales $1,100 $1,165 $1,248 $1,396 $1,537 $1,893 $2,083 $2,386 $2,529 $2,652 $3,337 $3,868

Direct Cost of Sales Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Government $200 $220 $242 $266 $293 $322 $354 $389 $428 $471 $518 $570
Hospitals $120 $140 $147 $152 $157 $162 $169 $176 $189 $192 $194 $198
Others $80 $100 $105 $112 $118 $122 $125 $129 $135 $138 $148 $150
Subtotal Direct Cost of Sales $400 $460 $494 $530 $568 $606 $648 $694 $752 $801 $860 $918

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 Appendix

Table: Personnel

Personnel Plan
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Akhil $20 $22 $24 $26 $29 $32 $35 $38 $42 $46 $51 $56
Anin $22 $25 $28 $31 $35 $39 $44 $49 $55 $62 $69 $77
Ayush $20 $23 $27 $32 $37 $43 $50 $58 $68 $80 $94 $110
delivery boy1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
delivery boy2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 20 21 22 24 26 28 30 32 34 36 39 42

Total Payroll $62 $70 $79 $89 $101 $114 $129 $145 $165 $188 $214 $243

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 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Sales $1,100 $1,165 $1,248 $1,396 $1,537 $1,893 $2,083 $2,386 $2,529 $2,652 $3,337 $3,868
Direct Cost of Sales $400 $460 $494 $530 $568 $606 $648 $694 $752 $801 $860 $918
Other Costs of Sales $200 $220 $242 $266 $293 $322 $354 $389 $428 $471 $518 $570
Total Cost of Sales $600 $680 $736 $796 $861 $928 $1,002 $1,083 $1,180 $1,272 $1,378 $1,488

Gross Margin $500 $485 $512 $600 $676 $965 $1,081 $1,303 $1,349 $1,380 $1,959 $2,380
Gross Margin % 45.45% 41.63% 41.03% 42.98% 43.98% 50.98% 51.90% 54.61% 53.34% 52.04% 58.71% 61.53%

Expenses
Payroll $62 $70 $79 $89 $101 $114 $129 $145 $165 $188 $214 $243
Marketing/Promotion $75 $80 $86 $92 $98 $105 $112 $120 $128 $137 $147 $157
Depreciation $25 $28 $31 $34 $37 $41 $45 $50 $55 $61 $67 $74
Rent $150 $158 $166 $174 $183 $192 $202 $212 $223 $234 $246 $258
Utilities $85 $89 $93 $98 $103 $108 $113 $119 $125 $131 $138 $145
Insurance 15% $70 $74 $78 $82 $86 $90 $94 $99 $104 $109 $114 $120
Payroll Taxes 15% $9 $11 $12 $13 $15 $17 $19 $22 $25 $28 $32 $36

Total Operating Expenses $476 $510 $545 $582 $623 $667 $714 $767 $825 $888 $958 $1,033

Profit Before Interest and Taxes $24 ($25) ($33) $18 $53 $298 $367 $536 $524 $492 $1,001 $1,347
EBITDA $49 $4 ($2) $52 $90 $339 $412 $586 $579 $553 $1,068 $1,421
Interest Expense $39 $41 $42 $44 $47 $49 $52 $55 $58 $61 $65 $70
Taxes Incurred ($5) ($20) ($23) ($8) $2 $75 $95 $144 $140 $129 $281 $383

Net Profit ($11) ($46) ($53) ($19) $4 $174 $221 $337 $326 $301 $655 $894
Net Profit/Sales -0.97% -3.91% -4.22% -1.34% 0.29% 9.21% 10.59% 14.13% 12.91% 11.36% 19.62% 23.10%

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 Appendix

Table: Cash Flow

Pro Forma Cash Flow

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Cash Received

Cash from Operations

Cash Sales $1,100 $1,165 $1,248 $1,396 $1,537 $1,893 $2,083 $2,386 $2,529 $2,652 $3,337 $3,868
Subtotal Cash from Operations $1,100 $1,165 $1,248 $1,396 $1,537 $1,893 $2,083 $2,386 $2,529 $2,652 $3,337 $3,868

Additional Cash Received

Sales Tax, VAT, HST/GST Received 18.00% $198 $210 $225 $251 $277 $341 $375 $429 $455 $477 $601 $696
New Current Borrowing $35 $38 $42 $46 $51 $56 $62 $68 $75 $82 $90 $99
New Other Liabilities (interest-free) $65 $72 $79 $87 $96 $106 $117 $129 $142 $156 $172 $189
New Long-term Liabilities $200 $220 $242 $266 $293 $322 $354 $389 $428 $471 $518 $570
Sales of Other Current Assets $200 $214 $229 $245 $262 $280 $300 $321 $343 $367 $393 $421
Sales of Long-term Assets $150 $169 $191 $216 $244 $276 $312 $353 $399 $451 $510 $576
New Investment Received $500 $565 $638 $721 $815 $921 $1,041 $1,176 $1,329 $1,502 $1,697 $1,918
Subtotal Cash Received $2,448 $2,653 $2,894 $3,228 $3,575 $4,195 $4,644 $5,251 $5,700 $6,158 $7,318 $8,337

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

Expenditures from Operations

Cash Spending $62 $70 $79 $89 $101 $114 $129 $145 $165 $188 $214 $243
Bill Payments $1,326 $1,071 $1,154 $1,245 $1,347 $1,485 $1,630 $1,777 $1,922 $2,046 $2,261 $2,538
Subtotal Spent on Operations $1,388 $1,141 $1,233 $1,334 $1,448 $1,599 $1,759 $1,922 $2,087 $2,234 $2,475 $2,781

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $198 $210 $225 $251 $277 $341 $375 $429 $455 $477 $601 $696
Principal Repayment of Current Borrowing $25 $28 $31 $34 $38 $42 $47 $52 $58 $64 $71 $79
Other Liabilities Principal Repayment $25 $28 $31 $34 $37 $41 $45 $50 $55 $61 $67 $74
Long-term Liabilities Principal Repayment $35 $37 $39 $41 $43 $45 $47 $49 $51 $54 $57 $60
Purchase Other Current Assets $37 $39 $41 $43 $45 $47 $49 $51 $54 $57 $60 $63
Purchase Long-term Assets $55 $58 $61 $64 $67 $70 $74 $78 $82 $86 $90 $94
Dividends $11 $13 $15 $17 $20 $23 $26 $30 $34 $39 $45 $52
Subtotal Cash Spent $1,774 $1,554 $1,676 $1,818 $1,974 $2,208 $2,422 $2,661 $2,877 $3,072 $3,466 $3,899

Net Cash Flow $674 $1,099 $1,218 $1,410 $1,600 $1,987 $2,222 $2,590 $2,824 $3,086 $3,852 $4,438
Cash Balance $10,674 $11,773 $12,990 $14,401 $16,001 $17,989 $20,210 $22,801 $25,624 $28,710 $32,562 $37,000

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Appendix

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 Appendix

Table: Balance Sheet

Pro Forma Balance Sheet

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Assets Starting Balances

Current Assets
Cash $10,000 $10,674 $11,773 $12,990 $14,401 $16,001 $17,989 $20,210 $22,801 $25,624 $28,710 $32,562 $37,000
Other Current Assets $2,500 $2,337 $2,162 $1,974 $1,772 $1,555 $1,322 $1,071 $801 $512 $202 ($131) ($489)
Total Current Assets $12,500 $13,011 $13,935 $14,964 $16,173 $17,556 $19,311 $21,281 $23,602 $26,136 $28,912 $32,431 $36,511

Long-term Assets
Long-term Assets $7,500 $7,405 $7,294 $7,164 $7,012 $6,835 $6,629 $6,391 $6,116 $5,799 $5,434 $5,014 $4,532
Accumulated Depreciation $0 $25 $53 $84 $118 $155 $196 $241 $291 $346 $407 $474 $548
Total Long-term Assets $7,500 $7,380 $7,241 $7,080 $6,894 $6,680 $6,433 $6,150 $5,825 $5,453 $5,027 $4,540 $3,984
Total Assets $20,000 $20,391 $21,176 $22,044 $23,067 $24,236 $25,744 $27,431 $29,427 $31,589 $33,939 $36,971 $40,495

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

Current Liabilities
Accounts Payable $780 $478 $519 $556 $603 $651 $730 $788 $865 $925 $981 $1,121 $1,240
Current Borrowing $1,500 $1,510 $1,520 $1,531 $1,543 $1,556 $1,570 $1,585 $1,601 $1,618 $1,636 $1,655 $1,675
Other Current Liabilities $550 $590 $634 $682 $735 $794 $859 $931 $1,010 $1,097 $1,192 $1,297 $1,412
Subtotal Current Liabilities $2,830 $2,577 $2,673 $2,768 $2,880 $3,000 $3,158 $3,304 $3,476 $3,640 $3,809 $4,072 $4,327

Long-term Liabilities $3,000 $3,165 $3,348 $3,551 $3,776 $4,026 $4,303 $4,610 $4,950 $5,327 $5,744 $6,205 $6,715
Total Liabilities $5,830 $5,742 $6,021 $6,319 $6,656 $7,026 $7,461 $7,914 $8,426 $8,967 $9,553 $10,277 $11,042

Paid-in Capital $14,530 $15,030 $15,595 $16,233 $16,954 $17,769 $18,690 $19,731 $20,907 $22,236 $23,738 $25,435 $27,353
Retained Earnings ($360) ($371) ($384) ($399) ($416) ($436) ($459) ($485) ($515) ($549) ($588) ($633) ($685)
Earnings $0 ($11) ($56) ($109) ($128) ($123) $51 $272 $609 $935 $1,237 $1,891 $2,785
Total Capital $14,170 $14,648 $15,155 $15,725 $16,410 $17,210 $18,282 $19,518 $21,001 $22,622 $24,387 $26,693 $29,453
Total Liabilities and Capital $20,000 $20,391 $21,176 $22,044 $23,067 $24,236 $25,744 $27,431 $29,427 $31,589 $33,939 $36,971 $40,495

Net Worth $14,170 $14,648 $15,155 $15,725 $16,410 $17,210 $18,282 $19,518 $21,001 $22,622 $24,387 $26,693 $29,453

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