Bev RAGEInternational Business Plan

Confidential - Proprietary 01/21/2011
POINT OF CONTACT
The point of contact for this Business Plan is David Fire, 678.540.9200 or cell
[400.200.0656], dfire58@aol.com BevRAGE International, Inc 3250 Sweetwater Rd,
Suite 2011, Lawrenceville, GA 30044.
COVER PAGE and SUMMARY of BUSINESS PLAN
BevRAGE is the product name for a completely mobile drink dispensing system that makes serving drinks
fun and easy. In summary, this compact unit dispenses a variety of both carbonated and non-carbonated
drinks from 1, 2, and 3-liter bottles, liter liquor bottles and mini kegs which are stored within a cooling unit
and connected to an integrated CO2-pressurized system. The unit dispenses in a portable manner any
selection of beverages in the same fashion as restaurants and bars by dispensing through a special multiflavor nozzle dispenser gun that automatically retracts into the lid of the container when not in use. The
BevRAGE system currently has a utility patent pending.
The system keeps beverages carbonated, fresh in flavor, and cold as anticipated. Because the multi-button
nozzle has unique lines of beverages there is no alteration of one flavor mixed with residue from another.
The system eliminates the problem of loose bottles being opened and closed, or being left opened to turn
flat and tasteless.
BevRAGE International, Inc. is a R&D company which as of December 1st, 2007 has one chief product and
prototype. The primary product was designed and engineered by DAVID FIRE who is the Founder/Director
of Research and Development for BevRAGE International Inc. Approximately $51,000 has been expended in
efforts to refine the designs, fund activities to bring the product closer to ready-for-market status, and for
initial patent pending applications.
STATUS OF BevRAGE INTERNATIONAL AND IMMEDIATE PLANS
BevRAGE International is currently debt-free and has no short-term or long-term debt obligations. It is
presently owned by 5 shareholders who have invested cash, time, efforts, and energy for product
preparation and establishing a corporate entity and web page internet presence. However, since our
product is only now ready for market there are no historical financial data showing profit or loss, cash-flow,
and common data associated with on-going activities.
BevRAGE International has several avenues for manufacturing. We have been in contact with no fewer than
5 manufacturing firms who have seen the working models and engineering drawings and who are
interested in becoming the producer for the system instead of BevRAGE International beginning its own
manufacturing plant. All these interested firms are awaiting a possibility of a go-ahead pending availability
of investor funding. Towards this objective, we have projected costs for contracting-out the manufacturing
process, and propose BevRAGE International to become the organization for sales and marketing. Potential
investors must realize the risk reduction associated with this strategy.
MARKETS
There are numerous markets targeted for the system. Sports tailgaters are the most obvious ones. In US
and foreign sports such as NFL, Baseball, NASCAR, Soccer, Rugby, and others there are literally millions of
fans, many of which who enjoy tailgate parties before or after sporting events. The inner field of every
NASCAR event is packed with any number of events all of which would benefit from convenient beverage
dispensing.
Other markets include consumer boaters, travelers, campers, home entertainment, business special events
(like car-sales events or office parties), and similar end-users at a personal level. Commercial markets
include Catering businesses, Limousines installations, Home-bar special installations, RVs, and even the
Academic Version
Airline industry who still today open individual cans of beverages one-by-one instead of serving from a
professional nozzle from a BevRAGE system type of unit.
FINANCIAL SUMMARY
BevRAGE International seeks raising a total funding need of $1,900,000.
BevRAGE International proposes to share 25% ownership in the company.
We are asking $1,560,000 from an investor for start up of operations and contracting with a manufacturer
for the first 5,000 units. The amount of $1,560,000 with interest of 20% compounded monthly is proposed
to be repaid to the investor by the end of the 24th month of activities. The amount of $340 K is needed as
short term credit from Factoring Services or from a bank or lending institution in the amount of $340 K as a
line-of-credit for funding production ramp-up. NOTE: If the initial investor is interested in also providing the
line-of-credit BevRAGE International would be interested in negotiating such credit in advance in order to
assure its availability when orders are "in-hand" thus supporting asset value to obtain a more modest
interest rate.
The BevRAGE System shall sell for $349.99 per unit at the retail, consumer level. The cost of production
should be approximately $75 per unit. The conservative estimate of profits by the end of 12 months is
$12,200,000.
Academic Version
Table of Contents
1.0
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
1
1
1
2.0
Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1
Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2
Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3
Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
1
2
3
3.0
Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.1
Product Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2
Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3
Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.4
Sourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.5
Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.6
Future Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
3
4
4
4
6
8
4.0
Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.1
Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2
Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2.1
Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2.2
Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2.3
Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3
Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.1
Industry Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.2
Distribution Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.3
Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.4
Main Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
11
12
12
12
12
12
12
13
13
14
5.0
Web Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.1
Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2
Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
14
14
6.0
Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.1
Strategy Pyramid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2
Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.3
Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4
Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.1
Positioning Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.2
Pricing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.3
Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.4
Distribution Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.4.5
Marketing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.5
Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.5.1
Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.5.2
Sales Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.6
Strategic Alliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.7
Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
14
14
14
15
15
15
15
16
16
16
16
18
19
19
7.0
Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.1
Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.2
Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.3
Management Team Gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.4
Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
21
21
21
23
8.0
Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.1
Start-up Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
24
Academic Version
Table of Contents
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
8.10
8.11
8.12
Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Investment Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
24
25
26
30
32
33
35
35
35
36
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exit Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Risks and Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
49
50
52
53
54
55
56
57
Academic Version
BevRAGE International Business Plan

1.0 Executive Summary
1.1 Objectives
1.2 Mission
1.3 Keys to Success
2.0 Company Summary
2.1 Company Ownership
Academic Version
Page 1

2.2 Start-up Summary
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Insurance
Rent
Computer
Other
Total Start-up Expenses
$0
$0
$0
$0
$0
$0
$0
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$1,900,000
$0
$0
$0
$1,900,000
Total Requirements
$1,900,000
Academic Version
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2.3 Company Locations and Facilities
3.0 Products
BevRAGE International is a start-up business providing an innovative mobile beverage dispenser. The
dispenser is used by individual consumers or by commercial business. There is a need to eliminate the
handling of individual cold and wet soda bottles, cans, beer containers, and liquor bottles. Our beverage
dispenser is a pressurized CO2 driven portable chest approximately the size of a 50-quart ice cooler. A
multi-button nozzle dispenses beverages from the mobile chest in the same manner as restaurants and
bars, thereby serving constantly fresh and carbonated sodas, beers, and liquor from the same nozzle
without altering the flavor of one beverage with any residual taste of the other liquids. The nozzle retracts
conveniently into the lid of the chest. The unit has wheels and can be pulled easily and conveniently or
carried by one or two persons.
3.1 Product Description

2. PRODUCT DESCRIPTION
The beverage dispensing system holds various combinations of containers, depending upon the
preferences of the user. It is originally designed to hold up to 8 each of 3-liter bottles. Alternately, 1 or 2 liter
bottles can be placed instead. If fewer sodas are desired there is room for commercial or home-brewed
beer containers, or the unit can be equiped with any 1-liter liquor beverages. Of course, any combination of
beverages can be placed into the unit serving up to 8 selections at any time. A special "cap" is provided for
each container type, and quick-disconnect fittings are attached for incoming CO2 pressure and out-going
beverages to the nozzle.
If a beverage is completely used, it is a simple process to replace with a full container. For the 2 and 3-liter
soda bottles we provide a special patented cylinder which is filled with a freeze-gel product designed to
keep the entire bottle chilled from the bottom to the top. These cylinders are also designed to keep an icefree opening for easy substitution of a fresh bottle.
Manufacturing costs are extremely modest at approximately $75 each. The retail sale price will be $349.99
and thus far this suggested price has been received positively by numerous potential consumers who are
awaiting the marketing of this product. We envision most of the units to be packaged in a box container and
drop-shipped directly to retail outlet stores. However, BevRAGE International also plans to have an
interactive availability internet presence which will allow for direct retail sales to the consumer from the
manufacturing plant to their address destination. Such direct sales will significantly increase the profit
margin to BevRAGE International for each unit because the receipts will be above the wholesale price to
the retailers. Notwithstanding direct sales, the main distribution is anticipated through retailers.
The dispensing system satisfies many needs. Tailgaters at sporting events do not want to hassle with loose
bottles and cans. The system is loaded and ready to go from the moment they arrive at their site. The
demand for this system at sporting events like NFL or NASCAR or Soccer or Rugby (domestic and foreign)
is enormous. Home entertainment becomes far more convenient. There is no longer loose sodas being
opened and closed, or left open to become flat in flavor. If large parties are planned, the consumer may
even desire to locate several systems at various places thus making serving beverages highly convenient.
This means multiple purchases by the same consumer. Caterer businesses can use the product for
commercial use. Limousines can be installed with our serving system. Trailers, boats, buses, RVs, and
campers can easily carry the unit. They could also order custom-designed unit to be installed. The airline
industry has long used individual cans of soda as servings to passengers, but with our system they appear
more professional, and it is more economical and convenient and faster serving to simply press a beverage
selection button on the nozzle than handling loose cans. Also, BevRAGE International plans to install
custom made units in home-bars and any other application as desired by the consumers.
Academic Version
Page 3
3.2 Competitive Comparison

Our product fills a unique requirement. It is small and portable, it serves multiple beverages from a single
nozzle, and it is extremely easy to use. competitive products with any similarity simply do not offer the
features of our product. For example there are the following:
Lazy Drinker
A computer controlled mixed cocktail dispensing device (http://lazy drinker.com/, that ranges in price from
$450-$750 and which you still need a computer to make it work. Although it can be moved to different
locations it is still a large unit and not convenient for tailgaters and other applications which we have
described above.
In-Sink Beverage System
Beverage Dispensing System pours five of your favorite adult beverages at the push of a button This
product pour out of one spout so it can accumulate residue taste from the different flavors, it price range
from $499-$525 and its not portable.
General Beer-dispensers
Kegs are available with taps, as are smaller units like the mini-kegs which our unit is also designed to hold
and serve. However, loose mini-kegs are more difficult to keep in an ice chest while still being convenient to
serve the beverage. If stored in the refrigerator, the only serving location is at the refrigerator. Additionally,
the sole-serving of "beer" does not assist in serving sodas or liquor in the simple manner which our multibutton nozzle provides.
3.3 Sales Literature
3.4 Sourcing
BevRAGE International is currently headquarted in the Atlanta, Georgia area but we have not committed to
a specified warehouse or manufacturing location. Therefore, we are highly adaptable toward relocation
anywhere in the United States. The key factors we need to consider are affordable warehousing costs and
availability, proximity to easy freight and shipping resources, availability of local unskilled labor, and other
favorable economic factors.
The primary supply resource needed for the product is injection-molding. Recyclable plastics shall be used
for the uniquely designed chest, lid, wheels, handles, patented beverage cylinders, and some internal
components such as the air-line distributor, and dual-pressure regulator. Several off-the-shelf components
are purchased such as the readily available quick-disconnect connections, conventional tubing materials for
air line and beverage feed lines, the multi-button nozzle, and pressure gauge and valves. Nothing in the
sourcing of materials and manufacturing is exotic, difficult to make or acquire, and nothing requires more
than conventional engineering for manufacturing tooling designs and using standard unskilled labor for
assembly.
Our Make-or-Buy Parts listing is as shown below. Some of the items shown are either alternative parts for
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alternative engineering designs concerning manufacturing, or parts which are planned to be offered as
optional products offered for after-purchase add-ons.
ITEM
Cardboard Container,
Printed with BevRAGE
logo
Owners Manual, printed
in three languages,
English Spanish, French.
Warranty, Registration
Post Card
1 ea - Custom lightweight
cooler chest w/Lid and
handles, includes wheels
for easy transport, easyextension handle
1 ea - Multi-valve 8 button
dispensing gun (retracts
into custom lid of chest)
(1 per unit)
15 ft - Plastic hosing
"LINE"
20 ea Quick-disconnect
connectors (12-CO2
Supply + 8 Bev Dispen)
6 ea - 2 liter Cap
assembly
2 ea - 3 liter Cap
assembly
6 ea - Dip Tube Inserts
for standard, USAbeverage 1 or 2 Liter
bottles (Screen-base)
for standard, USAbeverage 3 Liter bottles
(Screen-base)
1 ea - Dip Tube Insert
for home brewers draft
beer
for commercial mini-kegs
2 ea - Dip Tube Insert
for home-prepared
beverages using 1-gal
containers below
2 ea - 1-gallon containers
for non-carbonated
beverages(frez-gel)
6 ea - Plastic bottle
holders cylinders with
synthetic freeze-jel - 2
Liter sizes
2 ea - Plastic bottle
holders cylinders with
synthetic freeze-jel - 3
Liter sizes
1 ea - Chest insert to
secure Cylinders (may be
chest itself)
SubT
TOTAL
MAKE or
BUY?
UNITS
Measure
EST.
each
3.35
3.35
BUY
each
0.70
0.70
BUY
each
0.01
0.01
BUY
each
4.00
4.00
each
15.00
15.00
BUY
15
Foot
0.06
0.90
BUY
20
each
0.40
8.00
BUY
each
0.28
1.68
Mat'ls
each
0.28
0.56
Mat'ls
each
0.18
1.08
Mat'ls
each
0.18
0.36
Mat'ls
each
0.36
0.36
Mat'ls
each
0.36
1.08
Mat'ls
each
0.09
0.00
Mat'ls
each
0.10
0.00
Mat'ls
each
0.35
2.10
Mat'ls
each
0.39
0.78
Mat'ls
N/A
0.00
0.00
Mat'ls
REMARKS
Mat'ls
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1 ea - Co2 run pump for
no-carbonated beverage
20 oz CO2 canister (1 per
unit)
1 ea - CO2 Insulating
cylinder
1 ea 8-line air
distributor CO2 fill station
connector (1 per unit)
1 ea 4-line air
distributor CO2 fill station
connector (1 per unit)
1 ea - CO2 dual regulator
(to fit Standard USA
lightweight CO2 bottles)
1 ea CO2 pressure
gauge
1 ea - Self insulated
plastic 5 gallon insert
container (1 per unit)(frezgel)
40 ozs of Freeze-gel
materials
each
0.75
0.00
Mat'ls
each
0.31
0.00
Mat'ls
each
0.55
0.55
Mat'ls
each
0.55
0.55
Mat'ls
each
3.00
3.00
Mat'ls
each
0.85
0.85
each
0.48
0.00
each
2.85
2.85
TOTAL:
BUY
Mat'ls
BUY
47.76
3.5 Technology
Our studies show BevRAGE International shall be creating between 81 and 289 employment positions
during the next 5 years. (See our labor projections in the table below) This estimate does not including
outside employment positions needed to meet contracted services such as additional Finance and
Accounting, advertising services and agencies such at TV ads and printed matter, transportation labor
personnel, packaging and other purchased parts labor, and others.
The BevRAGE system is relatively unaffected by technology changes. The system itself is nearly all Plastic.
The entire unit is intented to be 100% recyclable and therefore should have no negative impact on the
environment throughout its life-cycle. Automation could help greatly help in portions of assembly. In
particular, lines (air and liquid feed) can be cut to exact specifications by automated equipment, then quick
disconnect clips attached to lines and bundled for human hands to make final assemblies. Also, at the
injection molding process, automation should take the beverage cylinder inserts and fill the reserved space
with the freeze-gel at a rate much faster than manual processing. At the very least, manual insertion of the
cylinder into an automatic processing machine for filling would dramatically reduce labor costs for this
process. Our table below shows the labor positions with projections in order to focus where technology can
be best applied.
SUMMARY OF JOBS CREATED - TOTAL POSITIONS BY YEAR
DESCRIPTION
TOTAL
3 Shifts of
VARIABLE:
Chest Base Forming
Chest case Forming
Lid Forming
YEAR
YEAR
YEAR
Year YEAR
1
2
3
4
5
81
152
258
289
281
27
51
86
96
94
2
2
3
6
6
13
12
12
24
Academic Version
15
15
30
14
14
29
Page 6

Handle Forming
Extension Forming
Wheels
Gun mounting Assy
Connect tube Assy
Tubing cutter
Tubing Assy
Quick Conn. Forming
Quick Conn. Assy
2-L Cap Forming
3-L Cap Forming
2-L Dip Forming
3-L Dip Forming
Beer Dip Forming
Keg Dip Forming
1 Gal Forming
Cylinder Forming
Frez-Gel Insert
Run-Pump Forming
Run-Pump Assy
CO2 Cyl Forming
8-Line Dist Forming
CO2 Regula Forming
CO2 Assy
CO2 Gauge Install
5-Gal Forming
0
1
1
2
1
0
2
0
2
1
0
1
0
0
0
0
3
3
0
0
0
0
1
1
1
0
1
2
3
7
4
2
7
1
6
2
1
2
1
0
1
0
10
10
0
0
0
1
4
3
4
0
2
4
5
12
8
3
13
2
10
4
1
4
1
1
2
0
30
30
0
0
0
2
8
5
7
0
3
5
6
16
10
4
17
3
12
5
2
5
2
1
3
0
28
28
0
0
0
3
10
6
9
0
2
5
6
15
10
4
16
3
12
4
1
5
2
1
3
0
27
27
0
0
0
2
10
6
9
0
OVERHEAD
Supervisor
Quality Control
Manager
Engineering
Janitorial
Shipping / Receiving
Finance Accounting
HR
Clerical
16
4
8
3
2
4
4
2
2
16
4
8
3
2
4
4
2
2
16
4
8
3
2
4
4
2
2
16
4
8
3
2
4
4
2
2
16
4
8
3
2
4
4
2
2
5
5
5
5
5
5
5
5
5
5
BevRAGE Int'l Inc

Corporate heads
Sales
NOTE: Those items within the above table in lighter shading (showing "0") are either parts suggested for
alternative manufacturing designs or for parts intended to become "optional" items which are sold in
addition to the standard chest unit being delivered. This Business Plan is intended to address solely the
value of the stand-alone unit, and therefore does not factor in additional profits resulting from the options
which we envision consumers may desire as added-on features.
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3.6 Future Products
The basis of out project is the innovative mobile beverage dispenser system. This Business Plan includes
rough estimates of costs and sales for custom-made units in the future. Such custom made units could
present refrigerated units for specifically designed home-bar entertainment areas or installations hidden
inside limousines which only provide the dispensing nozzle to the occupants who would desire convenience
without having to see the operating portions of the system. The same custom designs are intended for builtin portions of RVs, boats, trailers, campers, buses and other similar conveyance. The airline industry has a
unique and empty niche which we envision redesigning the typical beverage-can-sized cart but using our
CO2 pressurized system with the nozzle. The staff would simply press the nozzle button for the selected
beverage.
Alternate sizes of BevRAGE system chests are envisioned. smaller chests and larger chests would expand
the attractiveness and appeal of the product. Additionally, a smaller chest could be designed with an
attractive polished-wood exterior and could hold several selections of liquor exclusively for high-end
consumers with a den who simply want the convenience of liquor on tap at a nozzle. Such a chest would
not necessarily need cooling, since room temperature beverages may be desired.
Stepping outside of the current product, our Director of Research and Development, Mr. David Fire is a
more creative inventor. He currently has ideas for dozens of potential products and/or services, all of which
provides BevRAGE International with an attractive vision for the future. Many organizations desire to have a
creative inventor, but persons of his caliber are generally born with this unique creative quality and few
persons can be taught to become creative. Mr. Fire is not only a founder, he is a major player in BevRAGE
International's future.
4.0 Market Analysis Summary

FIRST YEAR TARGET MARKET ANALYSIS
A
73,257
32
2,344,224
1st YEAR
2,500
500
1,250,000
1st YEAR
32,778
30
983,340
1st YEAR
7,500
600
4,500,000
1st YEAR
100,000
70%
70,000
45
3,150,000
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
DOMESTIC SPORTS FANS WHO ATTEND EVENTS

Attendees (Typical) per Professional Football game per team
Number of AFL/NFL professional teams
Minimal number of fans of Professional Football league in the USA
Attendees (average) per College Football game per team
Number of College football teams
Minimal number of fans of College Football in the USA
Attendees (Typical) per Professional BaseBall game per team
Number of MLB professional teams
Minimal number of fans of Professional Football league in the USA
Attendees (avg) per Minor league/College BaseBall game per team
Number of baseball teams
Minimal number of fans of Minor League/College Baseball
Attendees (Typical) per NASCAR Event
Percentage of attendees unique to only one or two events (Estimated)
Number of Unique NASCAR Fans per event
Number of NASCAR Events
Minimal number of fans of NASCAR in the USA
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12,227,564
1st YEAR
1%
1st YEAR
1%
122,276
1st YEAR
1st YEAR
Total number of individual Fans to the above

Percentage used as "TARGET" consumers of BevRAGE
System
Cumulative percentage of above market until the 5th year
Number of "TARGET" Sports-fans consumers in the first year
122,276
1st YEAR
Sub-TOTAL for DOMESTIC SPORTS TARGET END-USERS
DOMESTIC HOME ENTERTAINMENT AND TRAVEL/OUTDOOR

ENTHUSIASTS
Estimated Boat owners in the USA - including fishing, sport, leasure,
etc
Estimate of active participants Boating by percentage
Active Boaters in the USA
System
Number of "TARGET" Boating consumers in the first year
1,250,000
1st YEAR
20%
250,000
1st YEAR
1%
1st YEAR
1%
2,500
1st YEAR
3,000,000
50%
1,500,000
1st YEAR
1%
1st YEAR
1%
1st YEAR
15,000
1st YEAR
15,000,000
1st YEAR
15%
1st YEAR
2,250,000
1st YEAR
1.0%
1st YEAR
1.0%
1st YEAR
22,500
1st YEAR
40,000
1st YEAR
Sub-TOTAL for "ENTHUSIASTS" TARGET END-USERS
162,276
1st YEAR
TOTAL DOMESTIC STANDARD BevRAGE SYSTEMS (A +

B)
1st YEAR
1st YEAR
1st YEAR
1st YEAR
25,000
1st YEAR
1%
250
1st YEAR
150,000
1st YEAR
0%
1st YEAR
0%
0
1st YEAR
40,000
0%
0
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
Estimated RV/Trailer/Travel Enthusiasts in the USA

Estimate of active participants of above by percentage
Active participants of above travel each year in the USA
System
Number of "TARGET" travel-related consumers in the first
year
Estimated home entertainment and/or cookout Enthusiasts in the USA
Estimate of active participants each year of above by
percentage
Active participants of above each year in the USA
System
Number of "TARGET" travel-related consumers in the first
year
DOMESTIC CUSTOM MADE BevRAGE SYSTEMS

Estimate NEW VEHICLES - RVs/BOATS/Limousines For the
year
Estimates of % containing custom made BevRAGE Systems installed
TARGET for custom made systems - RVs, Boats, Limos
Estimate of aircraft possibly needing tailored BevRAGE Systems For
the year
Estimates of % TARGET users of custom made BevRAGE Systems
installed
TARGET custom made systems - Aircraft
Estimate Portable Bars For the year
TARGET for custom made systems - Portable bars
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Page 9

Estimate of Caterers and Hotels to use Custom designed BevRAGE
Systems
installed
TARGET custom made systems - Caterers and Hotels
150,000
1st YEAR
0%
1st YEAR
0%
0
1st YEAR
45,000
1st YEAR
0%
1st YEAR
1st YEAR
Estimate of new custom made home wet-bar systems per

year
installed
TARGET custom made systems - Home Wet-Bar
250
1st YEAR
TOTAL for DOMESTIC CUSTOM-MADE SYSTEMS ( C )
FOREIGN SPORTS
Estimate of FOREIGN Sports Enthusiasts
Estimates of % TARGET users of above
TARGET number of Standard BevRAGE Systems
15,000,000
0.00%
0.00%
0
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
FOREIGN HOME ENTERTAINMENT AND TRAVEL/OUTDOOR

ENTHUSIASTS
Estimate of FOREIGN (above) custom made systems per
year
installed
TARGET number of custom made systems installed for this
application.
15,000,000
1st YEAR
0.10%
1st YEAR
0.10%
1st YEAR
15,000
1st YEAR
15,000
1st YEAR
TOTAL FOREIGN STANDARD BevRAGE SYSTEMS (D + E)
FOREIGN CUSTOM MADE BevRAGE SYSTEMS

Estimate NEW VEHICLES - RVs/BOATS/Limousines For the
year
FOREIGN Custom-made systems - RVs/Boats/Limos
25,000
1st YEAR
0.100%
25
1st YEAR
150,000
1st YEAR
0.100%
1st YEAR
0.10%
150
1st YEAR
40,000
0.100%
40
1st YEAR
150,000
1st YEAR
0.100%
1st YEAR
0.10%
150
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
1st YEAR
Estimate of aircraft possibly needing tailored BevRAGE Systems For

the year
installed
FOREIGN Custom-made systems - Aircraft
Estimate Portable Bars For the year
TARGET for custom made systems - Portable bars
Estimate of Caterers and Hotels to use Custom designed BevRAGE
Systems
installed
TARGET custom made systems - Caterers and Hotels
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45,000
1st YEAR
0.100%
1st YEAR
45
1st YEAR
Estimate of new custom made home wet-bar systems per

year
installed
FOREIGN Custom-made systems - Home wet-bar
410
1st YEAR
TOTAL for FOREIGN CUSTOM-MADE SYSTEMS (F)
NOTE: More analyses are available for years 2 through 5. Please contact David Fire for additional
details.
4.1 Market Segmentation

Table: Market Analysis
Market Analysis
Potential Customers
Segment Name
Segment Name
Other
Total
Growth
0%
0%
0%
0.00%
Year 1
Year 2
Year 3
Year 4
Year 5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CAGR
0.00%
0.00%
0.00%
0.00%
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4.2 Target Market Segment Strategy
4.2.1 Market Needs
4.2.2 Market Trends
4.2.3 Market Growth
4.3 Industry Analysis
4.3.1 Industry Participants

The BevRAGE system is unique in its application. There are portable bars, large 6-foot chests holding 1/2
kegs of beer and dispensing only beer from its taps, but these cost $2,500 each and are not designed for
tailgaters and party goer. There is a large automatic cocktail server, http://lazydrinker.com that ranges in
price from $450-$750 and which you still need a computer to make it work. This does not serve beer or
soda and is certainly not mobile for tailgaters and travelers. There is also an In-Sink Beverage System
which pours five of your favorite adult beverages at the push of a button; this product pour out of one
spout so it can accumulate residue taste from the different flavors, it has a price range from $499-$525 and
it also is not portable.
The recreational industry invites innovation which adds convenience and efficiency when it is being used.
Our system is well received by most consumers to first see it in operation and the overwhelming response is
that at the suggested price of $349.99 they find it would be an item they would purchase. A wealthy
associate of the inventor, David Fire, happens to live in Beverly Hill, California. His reaction is that he would
purchase a number of individual units in order to make them available to all their guests when they hold a
party. He expressed his distaste for having loose soda bottles and guests having to open and close
containers. Our product uniquely solves this problem.
The commercial market which we have identified using our system also has no competitive product. RVs
have no dispensers. Boats have none. Limousines still carry loose bottles for dispensing, as does the airline
industry throughout.
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4.3.2 Distribution Patterns
There exists many outlets for the BevRAGE System. Bass Pro Shop, Sporting Goods stores, retail stores
such as Target and WalMart are all potential outlets. With an advertising campaign on television during
NASCAR or football season would most likely overwhelm our production schedules with orders. If we
market on the internet uniquely as well as in retail stores, the direct sales on the uniquely would boost
profits multifold.
Getting the product physically into the consumer's hands is paramount to multiplying the demand. ("friends'
seeing the product will naturally produce a new customer who desires to purchase the convenience of the
BevRAGE System) From the Production manufacturer we anticipate "drop-shipping" large quantities at
retail stores at the buyer's expense. If needed, less expensive freight cost would deliver pallets of
shipments to retailers. Individual shipping cost due to internet sales would charge the consumer the
shipping costs directly from the factory to the consumer. The Business Plan unit cost does include an
average estimated cost of $10.78 toward freight/shipping. Whatever we do to reduce this cost directly
improves the profit margin.
4.3.3 Competition and Buying Patterns

The BevRAGE System is patent pending. However, it is anticipated that "knock-off" imitators of the system
will emerge once the system is widely demanded. It would be incumbent upon the competitor to not violate
the patents we have applied for. One particular feature which makes our system work so well is the Freezegel cylinders which hold the soda bottles. These have been discovered to be the key to dispensing an icecold beverage at the nozzle instead of a temperate liquid.
A sincere effort has also been expended by the company to prepare a sophisticated and mature
Performance Specification within a solicitation which we provide to potential producers. Our Performance
Specification requires a 5-year durability, and it specifies numerous criteria which the end-item is expected
to survive. The solitication includes numbers of operation requirements, drop testing, wheel survivability,
many others, and ultimately the recyclability of the product when it completes its serviceable lifecycle.
Another feature which BevRAGE is using as a manufacturing approach is to allow the manufacturer to
design further innovations, with approval by BevRAGE International, which may further improve quality,
survivability, reduce manufacturing costs, and make the product more attractive to the consumer. One such
personal feature is to provide the product in Sports' team colors. At first we anticipate using a forest green
chest color but later in production selected team colors would be shipped to retailers near the team it
represents.
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4.3.4 Main Competitors
5.0 Web Plan Summary

BevRAGE International's website will be a dynamic marketing tool for the company that serves the needs of
business development, sales, and recruiting. The company site will provide information about BevRAGE's
products for target customers and potential business associates for custom-made units plus an outlet for
new product updates. As the company grows, its recruiting needs can be addressed by posting career
opportunities and FAQs about the company. We will also communicate company news to create and
maintain positive public relations with the community and investors. One of the ways BevRAGE
International plans to impact our society is through donations to worthy charitable causes such as St. Jude's
Children's Hospital, Heifer Project International, KIVA, and others. The goal will be to implement a functional
and professionally designed website that can be adapted to meet the company's growing needs.
For sales, an interactive ordering form shall accept credit card orders, thereby providing immediate cash
flow for the manufacturing process. Direct sales should increase the profit margin dramatically since the
retail price of $349.99 will be received instead of the whole sale price currently estimated at $150 per unit.
5.1 Website Marketing Strategy
5.2 Development Requirements
6.0 Strategy and Implementation Summary
6.1 Strategy Pyramid
6.2 Value Proposition
6.3 Competitive Edge

The BevRAGE mobile beverage dispenser system is truly a first-of-its-kind in the field. At present there is
no other product that provides the features of this system. The way to capitalize on the competitive edge
which BevRAGE International presently holds is to aggressively advertise and capture the first market
reaction to the system. Also in this competitive edge, we have required a Performance Specification to be
met by the manufacturer. The manufacturing is actually quite conventional, and therefore we mitigate risk by
going to existing producers in the field. However, only if they produce the product with the qualities we
demand can the consumers be truly pleased with their purchase and therefore recommend the product to
friends and associates.
The sustainable value of the product is likewise based upon the Performance Specification. We anticipate
active weekly usage over a 5-year period. All connections, all opening and closing of the lid, all the handling
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and pressing of the nozzle must be able to survive the rigors we specify in the Specification. For example,
the wheels must be able to survive regular use through adverse environments such as sand, water, dust,
dirt, and mud and still continue to be serviceable.
6.4 Marketing Strategy
6.4.1 Positioning Statement

For sports, travel, boating, and entertaining enthusiasts throughout the world the BevRAGE System must
provide consistent convenience at almost an invisible manner. The product must simply perform. When
anyone is having a party or gathering of any kind which requires beverages, the consumer does not want to
be fiddling with the product or operation of the product. Once the chest is filled and set in place, the chest
must simply perform as expected. The fact that the chest is easy to move around and it fits in the trunk of a
vehicle or the back of a pickup truck makes this product truly convenient.
6.4.2 Pricing Strategy
6.4.3 Promotion Strategy

BevRAGE International plans on continuous presence in Travel, Sports, and Boating Trade Shows. These
trade shows exhibit products to a significant population of enthusiasts in these areas. One recent example
is the Indianapolis Show (February 15-24, 2008) which typically has over 100,000 attendance during the 10day period of the show. Across the United States various Trade shows in these areas occur just to satisfy
the interests of these enthusiasts. We estimate that in a single show we could anticipate obtaining firm
orders from small store retailers of about 20 units for at least 30 cometitive retailers. This would represent
about 600 wholesale units. These sales at the wholesale level represent a gross profit of $45,000.
Additionally, the average consumer passing by have shown us enormous interests. Typically they ask when
they can order a unit! With attendance by 100,000 persons BevRAGE International feels confident that at
least 400-500 units could be ordered as direct sales (This represents fewer than 1/2 of 1% of the
attendees). However, with a merchant account on hand, credit card sales for 500 units would represent
sales of $175,000 with the consumer shouldering the shipping costs. With manufacturing costs for 500 units
of $37,500 this would represent a gross profit of $137,500.
For attending a show which costs less than $10K for booth costs and travel expenses, the wholesale and
retail sales provide a gross profit of $182,495.
Other shows may not last the 10-days which Indianapolis did. However, even in a typical 3-day show this
represents about 35,000 visitors with potential sales in the neighborhood of 200 wholesale units and 180
retail units this represents $64,500 in profits.
Another avenue being planned is television appearances of the product for direct sales or promotion of
retail outlets. The first year budget plans expenditures of up to $600,000 prior to the beginning of the
football season. We feel this may generate sales in the range of 35,000 to 60,000 units at the consumer
retail level by appealing to the public at large. In this media not only the sports enthusiasts are reached but
all home-entertainment, boating, travel, and other consumers hear about the convenience of the product.
Direct sales over the internet at this level would press up deliveries and dramatically increase profits about
projections in the Business Plan which use wholesale price of $150 per unit as the benchmark for income
and profits.
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6.4.4 Distribution Strategy
6.4.5 Marketing Programs
6.5 Sales Strategy
6.5.1 Sales Forecast

First Year sales projections are very conservative. About 1% of the market is antipated, and this is primarily
within the US, following advertising at trade shows, television for the broader market, and natural expansion
of the demand as friends of the first consumers become motivated to acquire their own dispenser for
themselves. Catering Business will jump at the opportunity to simplify their services. Businesses will also
see the value of having BevRAGE System units during their events for sanitary reasons as well as
convenience and service to their guests.
Second Year sales will be boosted by moving our attention to the foreign markets. Sports enthusiasts
overseas are even more zealous and number as much as 20-fold over US sports enthusiasts. Additionally,
during the second year BevRAGE International expect to be affecting the custom-made installations for
RVs, boats, Trailers, campers, limousines, and possibly the aircraft industry.
During the third and out years sales will level off as units become more widespread and popular, eventually
dropping to a production level of 129,000 per month during the 4th and 5th years. However, it is anticipated
custom-madeunits will become more in demand thus upholding the bottom line profit margins of BevRAGE
International, Inc.
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Table: Sales Forecast
Sales Forecast
Unit Sales
Row 1
Row 2
Row 3
Total Unit Sales
Unit Prices
Row 1
Row 2
Row 3
Sales
Row 1
Row 2
Row 3
Total Sales
Direct Unit Costs

Row 1
Row 2
Row 3
Direct Cost of Sales
Row 1
Row 2
Row 3
Subtotal Direct Cost of Sales
Year 1
Year 2
Year 3
120,00
0
0
0
120,00
0
481,00
0
0
0
481,00
0
1,067,0
00
0
0
1,067,0
00
Year 1
$150.0
0
Year 2
$150.0
0
$0.00
$0.00
$0.00
$0.00
Year 3
$150.0
0
$150.0
0
$150.0
0
$18,00
0,000
$0
$0
$18,00
0,000
$72,15
0,000
$0
$0
$72,15
0,000
$160,0
50,000
$0
$0
$160,0
50,000
Year 1
$75.00
$0.00
$0.00
Year 2
$75.00
$0.00
$0.00
Year 3
$75.00
$0.00
$0.00
$9,000,
000
$0
$0
$9,000,
000
$36,07
5,000
$0
$0
$36,07
5,000
$80,02
5,000
$0
$0
$80,02
5,000
Year 4
Year 5
1,516,000
1,548,000
0
0
0
0
1,516,000
1,548,000
Year 4
Year 5
$150.00
$150.00
$150.00
$150.00
$150.00
$150.00
$227,400,00 $232,200,00
0
0
$0
$0
$0
$0
$227,400,00 $232,200,00
0
0
Year 4
$75.00
$0.00
$0.00
Year 5
$75.00
$0.00
$0.00
$113,700,00 $116,100,00
0
0
$0
$0
$0
$0
$113,700,00 $116,100,00
0
0
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Page 17
6.5.2 Sales Programs

Currently BevRAGE International has "verbal" interest from retailers for no fewer than 20,000 units for
beginning orders. Of course "verbal" interest is not worth the paper of this printing unless we obtain firm
orders. To obtain orders from these "interested" retailers we must have an active business concern, a
viable manufacturer in place, and a reasonable expectation that the production capabilities will be able to
expand to meet the sale orders taken, and firm costs and sales prices which are substantiated by actual
performance in manufacturing.
The immediate Business strategy is to immediately begin scheduling Trade Shows for initial contact with the
consumer market. This is simply a matter of obtaining the first production models from the manufacturer
and being physically present at a booth in the trade show. Orders shall be taken and recorded by portable
computer and using merchant accounts to accept credit card purchases. Retail orders taken shall be
relayed to the manufacturer in order to fit into his delivery schedule.
As the first deliveries are made (beginning during the 5th month as start-up of activities) BevRAGE
International plans on preparing a television commercial. The target is to be ready to begin TV
advertisments for the fall football season, primarily during football telecasts.
BevRAGE believes this sales program shall produce as much in orders as forecast in the Business Plan.
However, it is also anticipated that orders higher than planned may also develop. Should this happy state of
affairs occur, it is known that a higher line-of-credit, or Factoring services would again be required in order
to fund production expansion beyond our conservative sales forecasting. Without entering our projected
numbers for "extraordinary sales," suffice it to say that we know that a 4-fold increase in sales expectation
would require a banking line-of-credit in the range of $3.715 Million to accommodate production expansion.
This contingency has already been calculated. But, for this Business Plan a more conservative approach
was prepared in order that potential investors would not view our expectations as exhuberant.
Clearly we expect to tailor our sales efforts in line with our production capabilities and funding resources. If
sales are vigorous then perhaps the television promotion would be entirely unnecessary. Our projection
needing $600,000 for TV Ads purposes could more usefully be applied to production expansion instead. We
anticipate applying intelligence and forethought into our activities in a dynamic fashion depending upon
circumstance.
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6.6 Strategic Alliances
6.7 Milestones
Table: Milestones
Milestones
Milestone
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Totals
Start Date
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
End Date
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
Budget
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Manager
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
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7.0 Management Summary
ALAIN C ARNOULD is the Chief Executive Officer for BevRAGE International. He is an experienced
negotiator and contracting specialist and provides business orientation for the BevRAGE International. His
past experience includes 28 years of Federal Government service as a Contracting Officer with a Warrant
to sign "Unlimited" amounts on contracts for the US Government. He handled major weapons systems
primarily for the US Army at Picitinny Arsenal in Dover, New Jersey and Redstone Arsenal in Huntsville,
Alabama He worked on 81mm mortars replacing the entire NATO fleet of mortar weasons and ammunition,
plus was assigned to COPPERHEAD, and several missile systems such as AVENGER, STINGER, Patriot,
and CORPSAM. He has also been the Contracting Officer for the NAVY and Marine Corps programs such
as the Deadeye Projectile and lightweight howitzers. He was commonly assigned Major Weapons programs
which basically entails programs of Billion dollars and higher. He has had extensive experience
evaluating proposals from large AEROSPACE industries such as Martin Marietta (now Lockheed Martin),
FMC, Boeing, and Royal Ordnance, plc in England. Following Federal service he worked in contracting for
the University of Alabama at Huntsville (UAH) for 2 years continuing his contracting experience by
working new and ongoing contracts with Redstone Arsenal and other Federal agencies. He was later a cofounder with Mr. David Fire for DJF Inc. a "fore-corporation" which is now taken-over by BevRAGE
International, Inc. A transfer agreement was signed over corporate seals which formally renders all rights of
the BevRAGE mobile beverage dispenser system to the new corporation.
Mr. Arnould is 60 (2008) and he has a Masters Degree in Public Administration (Wm Paterson University,
Wayne, NJ), a Bachelors Degree in Business Administration (Wilkes University, PA) and a Secondary
Education Certification in Social Science (Wilkes). He is a veteran of the US Army, 1967-70. Prior to military
service he was active in family corporations during the 1960's and 70's. These companies were: Arnould
Products (Pet Products), Plast-O-Craft (Packaging Industry), AutoVac (automated blister-packing
equipment), and Playful Industries (Watercrafts).
JOHN HOLT, JR is the Business Manager for BevRAGE Internationa. He is also President, and director of
another company, International Marketing; Mr. Holt departed Corporate America subsequent to his
seventeen years of service with a major Fortune 500 Company. He exercised a significant role in providing
management and financial consulting advice to numerous large corporations in the area of sales, financial
planning and forecasting, marketing, office management, developing resolution strategies to confront and
resolve issues in the business environment with focus objective on moving the client company forward
toward long-term organizational development and stable financial growth. Mr. Holt is currently is the
President of INFORMED RESOURCES INC. and provides management consulting services to many
Philadelphia corporations, providing their management staffs with assistance in the areas of credit analysis,
sales assistance, market development, planning and forecasting to improve the overall organizational
health of these business concerns.
Mr. Holt is an important member of BevRAGE International and it is expected his counselling and guidance
will be invaluable for many aspect of business activities for BevRAGE International.
JOE BENNETT is Vice President of Government Marketing, Mr. Bennett has thirty one years of
Government service, and held the following positions; Treasury Department, Revenue Officer Instructor;
Small Business Administration, Regional Director, for Minority Business Enterprise; Deputy Regional
Administrator for Region III, directing the activity for that agency for five states including the District of
Columbia; State Department Agency for International Development, Director of the Office of Business
Relations. Two years as an independent consultant for Government Affairs and Marketing before joining
INFORMED RESOURCES, INC. and FIRST LIGHT MARKETING. Mr. Bennett also manages the branch
office in Alexandria, VA, which serves the Metropolitan Washington, DC area.
DANIEL SPARKS has been involved with technology for over thirty (30) years. He has extensive contacts
from business associations in manufacturing throughout the Asia Rim. He was initially Vice President for
Commodore Computers. Has resided in China, Malaysia, and Korea, and been involved with manufacturing
for Company all over the world. Mr. Sparks is not anticipated to be an active executive in the regular
business activities of BevRAGE International but he is a shareholder and an excellent and reliable contact
Academic Version
Page 20

for when BevRAGE International expands into the oriental market more aggressively during the second year of
operations. He is also most valuable in finding sources of purchased components which may significantly
reduce the unit production costs for the dispenser system.
DAVID J. FIRE He is 40, and is the Director of Research and Divelopment for BevRAGE International,
Inc. Mr. Fire has also been President of DJF Incorporated, a Georgia-based business as predecessor to
BevRAGE International and he was the principle inventor of the beverage system and majority owner of
DJF Inc. He assured that the rights and entitlements to the system were formally transferred to BevRAGE
International. He has been the owner of several Sole-Proprietor businesses, one which provided services
with 5 employees subcontracting for catering businesses, event planners, and private clients. Mr. Fire has
demonstrated his penchant for imaginative products and services which can fill niches in various markets.
Some of these products may become possible future business items for BevRAGE International . Mr. Fire
has an imaginative and creative mind, one which is highly desirable to any industry. The now-ready-formarketing BevRAGE System is an innovative product which shall shortly demonstrate it can produce a very
high demand and exceptional return on investment (profits) when it hits the market in the very near future.
7.1 Organizational Structure
Organizational Chart
John Doe
President
Jane Doe
Vice President
John Doe
Vice President
Jane Doe
Vice President
7.2 Management Team
7.3 Management Team Gaps

The management team does not have a financing expert. However, John Holt has a financial firm which he
recommends for handling the affairs of accounting and finance. The economic forecasting (elsewhere in this
Business Plan) includes expenses to fund the finacial activities of the company. BevRAGE International is
also interested in what the ultimate investor may prefer. When capital is infused into business activities, the
investor may desire having a trusted financial group or firm manage the oversight of how income and
expenditures are progressing. If this is the case, the investor is certainly invited to present the group or firm
to our team so we can see how they can fill this gap for BevRAGE International.
The management team does not presently have any expertise in advertisement. We are keenly aware of
simple things like the need for single sheet flyers which would be handed out at Trade Shows, Sports
events, and other places where potential costumers congregate. Additionally, the expertise for developing
an effective video for television advertisements must be obtained. BevRAGE International plans to seek a
recommended advertising agency or artistic expertise from professional avenues. Presently Searching for
such an agency is of a lower priority since investment funding and manufacting are on the front-burners.
The management team does not presently have hands-on experience in the phsyical distribution of large
quantities of end-item shipments. The coordination of the data (sales and shipping data) is anticipated to be
electronic, not paper form until the point that paper is absolutely necessary and required. It is anticipated
that the manufacturing firm which is ultimately selected for the end-item production shall also have the
Academic Version
Page 21

expertise to fill this shortcoming. One area in particular is the connection and coordination of online internet
orders between the point of sales and the point of shipping. The manufacturer must be able to receive this
information and act upon accountable shipment records in order for the consumer to be satisfied his needs
are being handled as if he were our only costumer. If the manufacturer is not equiped to coordinate this
aspect, BevRAGE International plans upon establishing a distribution warehouse. The Business Plan
incorporates a financial projection for such a warehouse and the details are addressed elsewhere in our
Plan. If the manufacturer has the capabliity to handle this area, such a warehouse may not be necessary,
and acccordingly then costs for this shall again be reduced and therefore resulting higher profits can be
anticipated. We shall be seeking to relocate a business office away from congested areas such as Atlanta,
Georgia (where we are presently located in Lawrenceville). BevRAGE International plans to locate such a
warehouse in an avenue of easy access to transportation services, availablitly of labor, and modest costs
for warehouse rental and operations. One location presently in mind is Fort Wayne, Indiana. There is an
abundance of empty warehouses and there is a need for industry to employ the local labor force. Air Freight
and Trucking and Rail are all available.
Within the management team the CEO and Director of R&D (Arnould and Fire) plan on actively promoting
the product at Trade Shows during most, if not all of the first twelve months. They shall be physically
present at shows and are both available for extensive travel for the purposes of such promotions. However,
this does present a team gap concerning the location of a head-office (or warehouse if needed). The
management team needs a home-based executive-level individual to oversee such an office. Our Business
Plan calls out planned expenditures for an "Executive Assistant." The executive assistant must be a reliable
person specifically hired for the ability to oversee management of a small office and capability of acting
independently for the business activities. This Executive Assistant will also be the office manager, as well
as performing the customary services and advice to the CEO and Director of R&D which are commonly
performed for the executives.
The current management team does not have on hand an engineering expert for making a final design for
production. This management gap is planned to be filled by selecting a viable manufacturer who has such
expertise already on his payroll. Additionally, the final manufacturing design is flexible enought to allow
minor variations to the designs which make the manufacturing process simpler and less costly. The
BevRAGE International Performance Specification in our solicitation is the key element which allows for
these minor variations. When the manufacturer designs the tooling necessary to injection molding, that
tooling design must be done by the manufacturer's engineer regardless of the level of design which we
have already attained. In essence, BevRAGE International is killing two birds with one stone and thereby
keeping development costs to a minimum.
The management team recognizes that not all contingencies may have been addressed. BevRAGE
International is open to additional advice and recommendations from all sources. Certainly the investor
individual or group should advise BevRAGE International on any other areas of "gaps" which must be
addressed. Like all businesses and business activities, the conditions are dynamic and must be addressed,
often as they occur. The management team accepts this shortcoming and every effort shall be made to
address issues as they are discovered.
Academic Version
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7.4 Personnel Plan
The strategy of BevRAGE International is to contract with a viable manufacturer. Our Business Plan
includes the projections of what it cost to manufacture, including the growth of personnel in that process.
The need for more manufacturing personnel is based upon a growth in sales. Of course it is anticipated that
in the first months of manufacturing production will begin at 5,000 for the first month, then 10,000 for the
2nd, 12,000 for the 3rd, 13,000 and increases thereafter. NOTE: a "profit" margin for manufacturing is
estimated at 15% and that is included in our Business Plan budget. Additional note, if the investor happens
to have manufacturing resources which are the best selection for that process, the unit costs of producing
the item would be lower for the manufacturing aspect, and that profit margin would be added to the bottom
lion of the BevRAGE International factor.
Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
Year 4
Year 5
$250,000
$200,000
$65,000
$1,276,47
5
$36,000
$1,827,47
5
$280,000
$200,000
$65,000
$325,000
$200,000
$65,000
$725,200
$200,000
$65,000
$789,850
$200,000
$65,000
$4,939,996
$10,700,359
$14,042,086
$14,113,122
$120,000
$144,000
$168,000
$198,000
$5,604,996
$11,434,359
$15,200,286
$15,365,972
$28,000
$0
$28,000
$45,500
$0
$45,500
$51,000
$0
$51,000
$56,700
$0
$56,700
$63,600
$0
$63,600
$45,000
$80,000
$42,000
$42,000
$20,000
$6,500
$20,000
$19,500
$27,000
$302,000
$45,000
$80,000
$120,000
$120,000
$24,000
$0
$32,000
$30,300
$38,700
$490,000
$45,000
$80,000
$168,000
$168,000
$24,000
$0
$36,000
$31,650
$43,600
$596,250
$45,000
$80,000
$180,000
$180,000
$24,000
$0
$36,000
$33,300
$47,200
$625,500
$45,000
$80,000
$192,000
$192,000
$24,000
$0
$36,000
$34,650
$49,600
$653,250
Other Personnel
BevRAGE International All Positions
Manufacturing All Positions
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total People
58
129
235
266
258
Total Payroll
$2,157,47
5
$6,140,496
$12,081,609
$15,882,486
$16,082,822
Production Personnel
MFR Spvr/Mgt/QA
MFG Engineering
MFG Fixed Mfg labor
MFG Prod'n Labor (Variable)
BevRAGE Wareouse Labor
Subtotal
Sales and Marketing Personnel

BevRAGE Int'l Sales Force
Reserved
Subtotal
General and Administrative Personnel
MFG HR
MFG Finance & Acct
Bev CEO
Bev DIR R&D
Bev MKG DIR
Bev Production Advisor
Bev Exec Manager
Bev Clerical
Bev Executive Assistant
Subtotal
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Page 23

8.0 Financial Plan
8.1 Start-up Funding

Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$0
$1,900,000
$1,900,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$0
$1,900,000
$0
$1,900,000
$1,900,000
Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$0
$0
$0
$1,900,000
$1,900,000
Capital
Planned Investment
Owner
Investor
Additional Investment Requirement
Total Planned Investment
$0
$0
$0
$0
Loss at Start-up (Start-up Expenses)

Total Capital
$0
$0
Total Capital and Liabilities
$1,900,000
Total Funding
$1,900,000
8.2 Important Assumptions
8.3 Key Financial Indicators
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Page 24
8.4 Break-even Analysis

Table: Break-even Analysis
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
726
$108,937
$150.00
$75.00
$54,468
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Page 25
8.5 Projected Profit and Loss
Academic Version
Page 26

Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Costs of Goods
Production Payroll
Other Costs of Goods
Cost of Goods Sold
Gross Margin
Gross Margin %
Year 1
$18,00
0,000
$9,000,
000
$1,827,
475
$0
----------$10,82
7,475
$7,172,
525
39.85%
Year 2
Year 3
Year 4
Year 5
$160,050,00 $227,400,00 $232,200,00
$72,150,000
0
0
0
$113,700,00 $116,100,00
$36,075,000 $80,025,000
0
0
$5,604,996
$11,434,359 $15,200,286 $15,365,972
$0
$0
$0
$0
------------
------------
------------
------------
$41,679,996 $91,459,359
$128,900,28 $131,465,97
6
2
42.23%
42.86%
43.32%
$100,734,02
8
43.38%
$45,500
$51,000
$56,700
$63,600
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
$45,500
$51,000
$56,700
$63,600
0.06%
0.03%
0.02%
0.03%
$490,000
$596,250
$625,500
$653,250
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$921,074
$1,812,241
$2,382,373
$2,412,423
$0
$0
$0
$0
------------
------------
------------
------------
$1,411,074
$2,408,491
$3,007,873
$3,065,673
1.96%
1.50%
1.32%
1.32%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
------------
------------
------------
------------
$1,456,574
$2,459,491
$3,064,573
$3,129,273
$30,470,004 $68,590,641 $98,499,714
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
Other Sales and Marketing
Expenses
Total Sales and Marketing

Expenses
Sales and Marketing %
General and Administrative
Expenses
General and Administrative
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other General and
Administrative Expenses
Total General and

Administrative Expenses
General and Administrative %
Other Expenses:
Other Payroll
Consultants
Other Expenses
Total Other Expenses

Other %
Total Operating Expenses
Profit Before Interest and Taxes

EBITDA
Interest Expense
$28,00
0
$0
$0
----------$28,00
0
0.16%
$302,0
00
$0
$0
$0
$0
$0
$323,6
21
$0
----------$625,6
21
3.48%
$0
$0
$0
----------$0
0.00%
----------$653,6
21
$6,518,
904
$6,518,
904
$0
$29,013,430 $66,131,150 $95,435,141 $97,604,755

$29,013,430 $66,131,150 $95,435,141 $97,604,755
$0
$0
Academic Version
$0
$0
Page 27

Taxes Incurred
$1,955,
671
$8,704,029
Other Income
Other Income Account Name
Total Other Income
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Expense
Other Expense Account Name
Total Other Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Net Other Income

Net Profit
Net Profit/Sales
$0
$4,563,
233
25.35%
$19,839,345 $28,630,542 $29,281,426
$20,309,401 $46,291,805 $66,804,599 $68,323,328

28.15%
28.92%
29.38%
29.42%
Academic Version
Page 28
Academic Version
Page 29
8.6 Projected Cash Flow
Academic Version
Page 30

Table: Cash Flow
Pro Forma Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
$0
$15,39
0,000
$15,39
0,000
Subtotal Cash from Operations
Additional Cash Received

Non Operating (Other) Income
Sales Tax, VAT, HST/GST
Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Non Operating (Other) Expense
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current
Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities Principal
Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow

Cash Balance
$65,190,000
$0
$0
$0
$148,390,91 $218,466,67 $231,563,32
5
4
6
$148,390,91 $218,466,67 $231,563,32
5
4
6
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$15,39
0,000
$0
$0
$0
$0
$0
$0
Year 1
Expenditures from Operations

Cash Spending
$0
$65,190,000
$65,190,000
Year 2
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$148,390,91 $218,466,67 $231,563,32
5
4
6
Year 3
Year 4
Year 5
$2,157,
475
$11,53
5,991
$13,69
3,466
$46,137,879
$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
$13,69
3,466
$0
$0
$0
$1,696,
534
$3,596,
534
$6,140,496
$52,278,375
$52,278,375
$12,081,609 $15,882,486 $16,082,822

$104,853,17 $146,453,26 $148,046,49
0
9
0
$116,934,77 $162,335,75 $164,129,31
9
5
2
$0
$0
$0
$0
$0
$0
$0
$0
$0
$116,934,77 $162,335,75 $164,129,31
9
5
2
$12,911,625
$31,456,136 $56,130,919 $67,434,015
$16,508,159
$47,964,295
$104,095,21 $171,529,22
4
9
Academic Version
Page 31
8.7 Projected Balance Sheet
Academic Version
Page 32

Table: Balance Sheet
Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Year 4
Year 5
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
$3,596,
534
$2,610,
000
$1,012,
500
$0
$7,219,
034
$0
$0
$0
$7,219,
034
Year 1
$755,8
02
$0
$1,900,
000
$2,655,
802
$0
$2,655,
802
$16,508,159
$9,570,000
$3,712,500
$0
$29,790,659
$0
$0
$0
$29,790,659
Year 2
$3,018,026
$0
$1,900,000
$4,918,026
$0
$4,918,026
$0
$0
$0
$4,563,233
$4,563,
233
$4,563,
233
$7,219,
034
$4,563,
233
$20,309,401
$24,872,633
$29,790,659
$24,872,633
$47,96
4,295
$21,22
9,085
$8,235,
421
$0
$77,42
8,801
$104,095,21 $171,529,22
4
9
$0
$0
$0
$77,42
8,801
$0
$0
$0
$0
$0
$0
$145,958,56 $214,276,23
1
5
Year 3
$4,364,
363
$0
$1,900,
000
$6,264,
363
$0
$6,264,
363
$0
$24,87
2,633
$46,29
1,805
$71,16
4,438
$77,42
8,801
$71,16
4,438
$30,162,412 $30,799,085
$11,700,936 $11,947,921
$0
$0
$145,958,56 $214,276,23
1
5
Year 4
Year 5
$6,089,525
$6,083,870
$0
$0
$1,900,000
$1,900,000
$7,989,525
$7,983,870
$0
$0
$7,989,525
$7,983,870
$0
$0
$137,969,03
7
$71,164,438
$66,804,599 $68,323,328
$137,969,03 $206,292,36
7
5
$145,958,56 $214,276,23
1
5
$137,969,03 $206,292,36
7
5
8.8 Business Ratios
Academic Version
Page 33

Table: Ratios
Ratio Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
0.00%
300.83%
121.83%
42.08%
2.11%
Industry
Profile
0.00%
36.15%
14.03%
0.00%
100.00%
0.00%
100.00%
32.12%
12.46%
0.00%
100.00%
0.00%
100.00%
27.42%
10.64%
0.00%
100.00%
0.00%
100.00%
20.67%
8.02%
0.00%
100.00%
0.00%
100.00%
14.37%
5.58%
0.00%
100.00%
0.00%
100.00%
0.00%
0.00%
100.00%
100.00%
0.00%
100.00%
36.79%
0.00%
36.79%
63.21%
16.51%
0.00%
16.51%
83.49%
8.09%
0.00%
8.09%
91.91%
5.47%
0.00%
5.47%
94.53%
3.73%
0.00%
3.73%
96.27%
0.00%
0.00%
0.00%
100.00%
100.00%
39.85%
100.00%
42.23%
100.00%
42.86%
100.00%
43.32%
100.00%
43.38%
100.00%
0.00%
14.50%
14.08%
13.93%
13.94%
13.96%
0.00%
0.00%
36.22%
0.00%
40.21%
0.00%
41.32%
0.00%
41.97%
0.00%
42.03%
0.00%
0.00%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
2.72
2.34
36.79%
142.86%
90.30%
6.06
5.30
16.51%
116.65%
97.39%
12.36
11.05
8.09%
92.93%
85.41%
18.27
16.80
5.47%
69.17%
65.39%
26.84
25.34
3.73%
47.31%
45.55%
0.00
0.00
0.00%
0.00%
0.00%
Additional Ratios
Net Profit Margin
Return on Equity
Year 1
25.35%
100.00%
Year 2
28.15%
81.65%
Year 3
28.92%
65.05%
Year 4
29.38%
48.42%
Year 5
29.42%
33.12%
n.a
n.a
6.90
29
16.00
16.26
9
2.49
7.54
31
15.27
16.04
14
2.42
7.54
35
13.40
24.33
13
2.07
7.54
41
11.41
24.33
13
1.56
7.54
48
9.82
24.33
15
1.08
n.a
n.a
n.a
n.a
n.a
n.a
0.58
1.00
0.20
1.00
0.09
1.00
0.06
1.00
0.04
1.00
n.a
n.a
$4,563,233
$24,872,633
$71,164,438
Interest Coverage
0.00
0.00
0.00
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
0.40
37%
1.35
3.94
0.00
0.41
17%
3.36
2.90
0.00
0.48
8%
7.66
2.25
0.00
Sales Growth
Percent of Total Assets
Accounts Receivable
Inventory
Long-term Assets
Total Assets
Current Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative
Expenses
Advertising Expenses
Activity Ratios
Accounts Receivable Turnover
Collection Days
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
$137,969,03 $206,292,36
7
5
0.00
0.00
0.64
5%
13.03
1.65
0.00
0.92
4%
21.48
1.13
0.00
n.a
n.a
n.a
n.a
n.a
n.a
n.a
Academic Version
Page 34

8.9 Long-term Plan
8.10 The Investment Offering

Table: Investment Offering
Investment Offering
Proposed Year:
Seed
1
Round 1
2
Round 2
3
$0
$0
$0
0.00%
0.00%
0.00%
$0
$0
6
0.00%
$0
$0
5
0.00%
$0
$0
4
0.00%
$0
Share Ownership
Founders' Shares
Stock Split Multiple
Stock Options Issued
Investor Shares Issued
Price per share
Options Holders' Shares
Year 1 Investors' Shares
Total Shares Outstanding
Year 1
0
Year 2
0
0
0
0
$0.00
0
0
0
Year 7
0
0
0
Year 3
0
0
0
0
$0.00
0
0
0
0
0
Equity Ownership Percentage

Founders' Equity
Option Holders' Equity
Year 1 Investors' Equity
Total Equity
Investors' Equity
Founders' & Employees' Equity
Year 1
0.00%
0.00%
0.00%
Year 2
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Year 3
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Year 7
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Valuation, Investment, Shares

Investment Amount
Equity Share Offering
Percentage
Valuation
Investor Exit Payout
Investor Years Until Exit
Investor IRR
0
0
$0.00
0
0
Exit
7
$0.00
0
0
0
0
0
8.11 Use of Funds

Table: Use of Funds
Use of Funds
Use
Name
Name
Name
Name
Total
Amount
$0
$0
$0
$0
$0
Academic Version
Page 35

8.12 Payback
Table: Payback
Payback
Projected Payback Calculation

Investment
Cash Returns by Year
Combination as Income Stream
Cumulative Net Cash Flow to
Investors
Payback Period
Investment
$500,000
Year 1
Year 2
Year 3
Year 4
Year 5
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
($500,000) ($400,000) ($300,000) ($200,000) ($100,000)
$0
($500,000)
5 years
Academic Version
Page 36
Appendix
Table: Sales Forecast
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
0
0
0
0
0
0
0
0
0
0
0
0
5,000
0
0
5,000
10,000
0
0
10,000
12,000
0
0
12,000
13,000
0
0
13,000
14,000
0
0
14,000
15,000
0
0
15,000
16,000
0
0
16,000
17,000
0
0
17,000
18,000
0
0
18,000
Unit Prices
Row 1
Row 2
Row 3
Month 1
$150.00
$0.00
$0.00
Month 2
$150.00
$0.00
$0.00
Month 3
$150.00
$0.00
$0.00
Month 4
$150.00
$0.00
$0.00
Month 5
$150.00
$0.00
$0.00
Month 6
$150.00
$0.00
$0.00
Month 7
$150.00
$0.00
$0.00
Month 8
$150.00
$0.00
$0.00
Month 9
$150.00
$0.00
$0.00
Month 10
$150.00
$0.00
$0.00
Month 11
$150.00
$0.00
$0.00
Month 12
$150.00
$0.00
$0.00
Sales
Row 1
Row 2
Row 3
Total Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$750,000
$0
$0
$750,000
$1,500,000
$0
$0
$1,500,000
$1,800,000
$0
$0
$1,800,000
$1,950,000
$0
$0
$1,950,000
$2,100,000
$0
$0
$2,100,000
$2,250,000
$0
$0
$2,250,000
$2,400,000
$0
$0
$2,400,000
$2,550,000
$0
$0
$2,550,000
$2,700,000
$0
$0
$2,700,000
Month 1
$75.00
$0.00
$0.00
Month 2
$75.00
$0.00
$0.00
Month 3
$75.00
$0.00
$0.00
Month 4
$75.00
$0.00
$0.00
Month 5
$75.00
$0.00
$0.00
Month 6
$75.00
$0.00
$0.00
Month 7
$75.00
$0.00
$0.00
Month 8
$75.00
$0.00
$0.00
Month 9
$75.00
$0.00
$0.00
Month 10
$75.00
$0.00
$0.00
Month 11
$75.00
$0.00
$0.00
Month 12
$75.00
$0.00
$0.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$375,000
$0
$0
$375,000
$750,000
$0
$0
$750,000
$900,000
$0
$0
$900,000
$975,000
$0
$0
$975,000
$1,050,000
$0
$0
$1,050,000
$1,125,000
$0
$0
$1,125,000
$1,200,000
$0
$0
$1,200,000
$1,275,000
$0
$0
$1,275,000
$1,350,000
$0
$0
$1,350,000
Unit Sales
Row 1
Row 2
Row 3
Total Unit Sales
Direct Unit Costs

Row 1
Row 2
Row 3
0%
0%
0%
50.00%
0.00%
0.00%

Row 1
Row 2
Row 3
Academic Version
Page 37
Appendix
Table: Sales Forecast 2nd Year
Sales Forecast 2nd Year
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
19,000
0
0
19,000
21,000
0
0
21,000
24,000
0
0
24,000
28,000
0
0
28,000
32,000
0
0
32,000
36,000
0
0
36,000
41,000
0
0
41,000
46,000
0
0
46,000
51,000
0
0
51,000
56,000
0
0
56,000
61,000
0
0
61,000
66,000
0
0
66,000
Unit Prices
Row 1
Row 2
Row 3
Month 13
$150.00
$0.00
$0.00
Month 14
$150.00
$0.00
$0.00
Month 15
$150.00
$0.00
$0.00
Month 16
$150.00
$0.00
$0.00
Month 17
$150.00
$0.00
$0.00
Month 18
$150.00
$0.00
$0.00
Month 19
$150.00
$0.00
$0.00
Month 20
$150.00
$0.00
$0.00
Month 21
$150.00
$0.00
$0.00
Month 22
$150.00
$0.00
$0.00
Month 23
$150.00
$0.00
$0.00
Month 24
$150.00
$0.00
$0.00
Sales
Row 1
Row 2
Row 3
Total Sales
$2,850,000
$0
$0
$2,850,000
$3,150,000
$0
$0
$3,150,000
$3,600,000
$0
$0
$3,600,000
$4,200,000
$0
$0
$4,200,000
$4,800,000
$0
$0
$4,800,000
$5,400,000
$0
$0
$5,400,000
$6,150,000
$0
$0
$6,150,000
$6,900,000
$0
$0
$6,900,000
$7,650,000
$0
$0
$7,650,000
$8,400,000
$0
$0
$8,400,000
$9,150,000
$0
$0
$9,150,000
$9,900,000
$0
$0
$9,900,000
Month 13
$75.00
$0.00
$0.00
Month 14
$75.00
$0.00
$0.00
Month 15
$75.00
$0.00
$0.00
Month 16
$75.00
$0.00
$0.00
Month 17
$75.00
$0.00
$0.00
Month 18
$75.00
$0.00
$0.00
Month 19
$75.00
$0.00
$0.00
Month 20
$75.00
$0.00
$0.00
Month 21
$75.00
$0.00
$0.00
Month 22
$75.00
$0.00
$0.00
Month 23
$75.00
$0.00
$0.00
Month 24
$75.00
$0.00
$0.00
$1,425,000
$0
$0
$1,425,000
$1,575,000
$0
$0
$1,575,000
$1,800,000
$0
$0
$1,800,000
$2,100,000
$0
$0
$2,100,000
$2,400,000
$0
$0
$2,400,000
$2,700,000
$0
$0
$2,700,000
$3,075,000
$0
$0
$3,075,000
$3,450,000
$0
$0
$3,450,000
$3,825,000
$0
$0
$3,825,000
$4,200,000
$0
$0
$4,200,000
$4,575,000
$0
$0
$4,575,000
$4,950,000
$0
$0
$4,950,000
Unit Sales
Row 1
Row 2
Row 3
Total Unit Sales
Direct Unit Costs

Row 1
Row 2
Row 3
0%
0%
0%
50%
0%
0%

Row 1
Row 2
Row 3
Academic Version
Page 38
Appendix
Table: Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$20,833
$16,666
$5,417
$0
$0
$42,916
$20,833
$16,666
$5,417
$0
$0
$42,916
$20,833
$16,666
$5,417
$0
$0
$42,916
$20,833
$16,666
$5,417
$141,827
$0
$184,743
$20,833
$16,666
$5,417
$141,831
$0
$184,747
$20,833
$16,666
$5,417
$141,831
$2,000
$186,747
$20,833
$16,666
$5,417
$141,831
$4,000
$188,747
$20,833
$16,666
$5,417
$141,831
$6,000
$190,747
$20,833
$16,666
$5,417
$141,831
$6,000
$190,747
$20,833
$16,666
$5,417
$141,831
$6,000
$190,747
$20,833
$16,666
$5,417
$141,831
$6,000
$190,747
$20,837
$16,674
$5,413
$141,831
$6,000
$190,755
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,750
$6,667
$2,000
$2,000
$1,000
$1,000
$1,000
$0
$0
$17,417
$3,750
$6,667
$2,000
$2,000
$1,000
$1,000
$1,000
$0
$0
$17,417
$3,750
$6,667
$2,000
$2,000
$1,500
$1,500
$1,500
$0
$0
$18,917
$3,750
$6,667
$2,000
$2,000
$1,500
$1,500
$1,500
$2,000
$3,000
$23,917
$3,750
$6,667
$3,500
$3,500
$1,500
$1,500
$1,500
$2,000
$3,000
$26,917
$3,750
$6,667
$3,500
$3,500
$1,500
$0
$1,500
$2,000
$3,000
$25,417
$3,750
$6,667
$3,500
$3,500
$2,000
$0
$2,000
$2,000
$3,000
$26,417
$3,750
$6,667
$3,500
$3,500
$2,000
$0
$2,000
$2,000
$3,000
$26,417
$3,750
$6,667
$5,000
$5,000
$2,000
$0
$2,000
$2,000
$3,000
$29,417
$3,750
$6,667
$5,000
$5,000
$2,000
$0
$2,000
$2,500
$3,000
$29,917
$3,750
$6,667
$5,000
$5,000
$2,000
$0
$2,000
$2,500
$3,000
$29,917
$3,750
$6,663
$5,000
$5,000
$2,000
$0
$2,000
$2,500
$3,000
$29,913
$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
Total People
58
58
58
58
58
58
58
58
58
Total Payroll
$60,333
$60,333
$61,833
$208,660
$215,164
$215,664
$218,664
$220,664
$223,664
$224,164
$224,164
$224,168
MFR Spvr/Mgt/QA
MFG Engineering
MFG Fixed Mfg labor
Subtotal
Reserved
Subtotal
MFG HR
MFG Finance & Acct
Bev CEO
Bev DIR R&D
Bev MKG DIR
Bev Exec Manager
Bev Clerical
Subtotal
Other Personnel
Subtotal
Academic Version
Page 39
Appendix
Table: Personnel 2nd Year
Personnel 2nd Year
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,337
$16,674
$5,413
$411,670
$10,000
$467,094
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$3,750
$6,667
$7,000
$7,000
$2,000
$0
$2,000
$2,500
$3,000
$33,917
$3,750
$6,667
$7,000
$7,000
$2,000
$0
$2,000
$2,500
$3,000
$33,917
$3,750
$6,667
$7,000
$7,000
$2,000
$0
$2,000
$2,500
$3,000
$33,917
$3,750
$6,667
$7,000
$7,000
$2,000
$0
$2,000
$2,500
$3,300
$34,217
$3,750
$6,667
$10,000
$10,000
$2,000
$0
$3,000
$2,500
$3,300
$41,217
$3,750
$6,667
$10,000
$10,000
$2,000
$0
$3,000
$2,500
$3,300
$41,217
$3,750
$6,667
$10,000
$10,000
$2,000
$0
$3,000
$2,500
$3,300
$41,217
$3,750
$6,667
$10,000
$10,000
$2,000
$0
$3,000
$2,500
$3,300
$41,217
$3,750
$6,667
$13,000
$13,000
$2,000
$0
$3,000
$2,500
$3,300
$47,217
$3,750
$6,667
$13,000
$13,000
$2,000
$0
$3,000
$2,600
$3,300
$47,317
$3,750
$6,667
$13,000
$13,000
$2,000
$0
$3,000
$2,600
$3,300
$47,317
$3,750
$6,663
$13,000
$13,000
$2,000
$0
$3,000
$2,600
$3,300
$47,313
$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
Total People
129
129
129
129
129
129
129
129
129
129
129
129
Total Payroll
$504,499
$504,499
$504,499
$504,799
$511,799
$512,299
$512,299
$512,299
$518,299
$518,399
$518,399
$518,407
MFR Spvr/Mgt/QA
MFG Engineering
MFG Fixed Mfg labor
Subtotal
Reserved
Subtotal
MFG HR
MFG Finance & Acct
Bev CEO
Bev DIR R&D
Bev MKG DIR
Bev Exec Manager
Bev Clerical
Subtotal
Other Personnel
Subtotal
Academic Version
Page 40
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Production Payroll
Cost of Goods Sold
Gross Margin
Gross Margin %
Month 1
$0
$0
$42,916
$0
-----------$42,916
Month 2
$0
$0
$42,916
$0
-----------$42,916
Month 3
$0
$0
$42,916
$0
-----------$42,916
Month 4
$750,000
$375,000
$184,743
$0
-----------$559,743
Month 5
$1,500,000
$750,000
$184,747
$0
-----------$934,747
Month 6
$1,800,000
$900,000
$186,747
$0
-----------$1,086,747
Month 7
$1,950,000
$975,000
$188,747
$0
-----------$1,163,747
Month 8
$2,100,000
$1,050,000
$190,747
$0
-----------$1,240,747
Month 9
$2,250,000
$1,125,000
$190,747
$0
-----------$1,315,747
Month 10
$2,400,000
$1,200,000
$190,747
$0
-----------$1,390,747
Month 11
$2,550,000
$1,275,000
$190,747
$0
-----------$1,465,747
Month 12
$2,700,000
$1,350,000
$190,755
$0
-----------$1,540,755
($42,916)
0.00%
($42,916)
0.00%
($42,916)
0.00%
$190,257
25.37%
$565,253
37.68%
$713,253
39.63%
$786,253
40.32%
$859,253
40.92%
$934,253
41.52%
$1,009,253
42.05%
$1,084,253
42.52%
$1,159,245
42.94%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$3,500
$0
$0
-----------$3,500
0.23%
$3,500
$0
$0
-----------$3,500
0.19%
$3,500
$0
$0
-----------$3,500
0.18%
$3,500
$0
$0
-----------$3,500
0.17%
$3,500
$0
$0
-----------$3,500
0.16%
$3,500
$0
$0
-----------$3,500
0.15%
$3,500
$0
$0
-----------$3,500
0.14%
$3,500
$0
$0
-----------$3,500
0.13%
$17,417
$0
$0
$0
$0
$0
$9,050
$17,417
$0
$0
$0
$0
$0
$9,050
$18,917
$0
$0
$0
$0
$0
$9,275
$23,917
$0
$0
$0
$0
$0
$31,299
$26,917
$0
$0
$0
$0
$0
$32,275
$25,417
$0
$0
$0
$0
$0
$32,350
$26,417
$0
$0
$0
$0
$0
$32,800
$26,417
$0
$0
$0
$0
$0
$33,100
$29,417
$0
$0
$0
$0
$0
$33,550
$29,917
$0
$0
$0
$0
$0
$33,625
$29,917
$0
$0
$0
$0
$0
$33,625
$29,913
$0
$0
$0
$0
$0
$33,625
Operating Expenses
Other Sales and Marketing Expenses
Total Sales and Marketing Expenses
General and Administrative Expenses
General and Administrative Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other General and Administrative
Expenses
15%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
$26,467
$26,467
$28,192
$55,216
$59,192
$57,767
$59,217
$59,517
$62,967
$63,542
$63,542
$63,538
0.00%
0.00%
0.00%
7.36%
3.95%
3.21%
3.04%
2.83%
2.80%
2.65%
2.49%
2.35%
$0
$0
$0
-----------$0
0.00%
-----------$26,467
$0
$0
$0
-----------$0
0.00%
-----------$26,467
$0
$0
$0
-----------$0
0.00%
-----------$28,192
$0
$0
$0
-----------$0
0.00%
-----------$55,216
$0
$0
$0
-----------$0
0.00%
-----------$62,692
$0
$0
$0
-----------$0
0.00%
-----------$61,267
$0
$0
$0
-----------$0
0.00%
-----------$62,717
$0
$0
$0
-----------$0
0.00%
-----------$63,017
$0
$0
$0
-----------$0
0.00%
-----------$66,467
$0
$0
$0
-----------$0
0.00%
-----------$67,042
$0
$0
$0
-----------$0
0.00%
-----------$67,042
$0
$0
$0
-----------$0
0.00%
-----------$67,038
($69,383)
($69,383)
$0
($20,815)
($69,383)
($69,383)
$0
($20,815)
($71,108)
($71,108)
$0
($21,332)
$135,041
$135,041
$0
$40,512
$502,561
$502,561
$0
$150,768
$651,986
$651,986
$0
$195,596
$723,536
$723,536
$0
$217,061
$796,236
$796,236
$0
$238,871
$867,786
$867,786
$0
$260,336
$942,211
$942,211
$0
$282,663
$1,017,211
$1,017,211
$0
$305,163
$1,092,207
$1,092,207
$0
$327,662
Other Income
Total Other Income
$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
Other Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total General and Administrative

Expenses
Other Expenses:
Other Payroll
Consultants
Other Expenses
Other %
EBITDA
Interest Expense
Taxes Incurred
Academic Version
Page 41
Appendix
Total Other Expense
Net Other Income
Net Profit
Net Profit/Sales
$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
($48,568)
0.00%
$0
($48,568)
0.00%
$0
($49,776)
0.00%
$0
$94,529
12.60%
$0
$351,793
23.45%
$0
$456,390
25.36%
$0
$506,475
25.97%
$0
$557,365
26.54%
$0
$607,450
27.00%
$0
$659,548
27.48%
$0
$712,048
27.92%
$0
$764,545
28.32%
Academic Version
Page 42
Appendix
Table: Profit and Loss 2nd Year
Profit and Loss 2nd Year
Sales
Production Payroll
Cost of Goods Sold
Gross Margin
Gross Margin %
Month 13
$2,850,000
$1,425,000
$467,082
$0
-----------$1,892,082
Month 14
$3,150,000
$1,575,000
$467,082
$0
-----------$2,042,082
Month 15
$3,600,000
$1,800,000
$467,082
$0
-----------$2,267,082
Month 16
$4,200,000
$2,100,000
$467,082
$0
-----------$2,567,082
Month 17
$4,800,000
$2,400,000
$467,082
$0
-----------$2,867,082
Month 18
$5,400,000
$2,700,000
$467,082
$0
-----------$3,167,082
Month 19
$6,150,000
$3,075,000
$467,082
$0
-----------$3,542,082
Month 20
$6,900,000
$3,450,000
$467,082
$0
-----------$3,917,082
Month 21
$7,650,000
$3,825,000
$467,082
$0
-----------$4,292,082
Month 22
$8,400,000
$4,200,000
$467,082
$0
-----------$4,667,082
Month 23
$9,150,000
$4,575,000
$467,082
$0
-----------$5,042,082
Month 24
$9,900,000
$4,950,000
$467,094
$0
-----------$5,417,094
$957,918
33.61%
$1,107,918
35.17%
$1,332,918
37.03%
$1,632,918
38.88%
$1,932,918
40.27%
$2,232,918
41.35%
$2,607,918
42.41%
$2,982,918
43.23%
$3,357,918
43.89%
$3,732,918
44.44%
$4,107,918
44.90%
$4,482,906
45.28%
$3,500
$0
$0
-----------$3,500
0.12%
$3,500
$0
$0
-----------$3,500
0.11%
$3,500
$0
$0
-----------$3,500
0.10%
$3,500
$0
$0
-----------$3,500
0.08%
$3,500
$0
$0
-----------$3,500
0.07%
$4,000
$0
$0
-----------$4,000
0.07%
$4,000
$0
$0
-----------$4,000
0.07%
$4,000
$0
$0
-----------$4,000
0.06%
$4,000
$0
$0
-----------$4,000
0.05%
$4,000
$0
$0
-----------$4,000
0.05%
$4,000
$0
$0
-----------$4,000
0.04%
$4,000
$0
$0
-----------$4,000
0.04%
$33,917
$0
$0
$0
$0
$0
$75,675
$33,917
$0
$0
$0
$0
$0
$75,675
$33,917
$0
$0
$0
$0
$0
$75,675
$34,217
$0
$0
$0
$0
$0
$75,720
$41,217
$0
$0
$0
$0
$0
$76,770
$41,217
$0
$0
$0
$0
$0
$76,845
$41,217
$0
$0
$0
$0
$0
$76,845
$41,217
$0
$0
$0
$0
$0
$76,845
$47,217
$0
$0
$0
$0
$0
$77,745
$47,317
$0
$0
$0
$0
$0
$77,760
$47,317
$0
$0
$0
$0
$0
$77,760
$47,313
$0
$0
$0
$0
$0
$77,761
Operating Expenses
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Expenses
5%
5%
5%
5%
5%
5%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
$109,592
$109,592
$109,592
$109,937
$117,987
$118,062
$118,062
$118,062
$124,962
$125,077
$125,077
$125,074
3.85%
3.48%
3.04%
2.62%
2.46%
2.19%
1.92%
1.71%
1.63%
1.49%
1.37%
1.26%
$0
$0
$0
-----------$0
0.00%
-----------$113,092
$0
$0
$0
-----------$0
0.00%
-----------$113,092
$0
$0
$0
-----------$0
0.00%
-----------$113,092
$0
$0
$0
-----------$0
0.00%
-----------$113,437
$0
$0
$0
-----------$0
0.00%
-----------$121,487
$0
$0
$0
-----------$0
0.00%
-----------$122,062
$0
$0
$0
-----------$0
0.00%
-----------$122,062
$0
$0
$0
-----------$0
0.00%
-----------$122,062
$0
$0
$0
-----------$0
0.00%
-----------$128,962
$0
$0
$0
-----------$0
0.00%
-----------$129,077
$0
$0
$0
-----------$0
0.00%
-----------$129,077
$0
$0
$0
-----------$0
0.00%
-----------$129,074

EBITDA
Interest Expense
Taxes Incurred
$844,826
$844,826
$0
$253,448
$994,826
$994,826
$0
$298,448
$1,219,826
$1,219,826
$0
$365,948
$1,519,481
$1,519,481
$0
$455,844
$1,811,431
$1,811,431
$0
$543,429
$2,110,856
$2,110,856
$0
$633,257
$2,485,856
$2,485,856
$0
$745,757
$2,860,856
$2,860,856
$0
$858,257
$3,228,956
$3,228,956
$0
$968,687
$3,603,841
$3,603,841
$0
$1,081,152
$3,978,841
$3,978,841
$0
$1,193,652
$4,353,832
$4,353,832
$0
$1,306,150
Other Income
Total Other Income
$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
Other Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

Expenses
Other Expenses:
Other Payroll
Consultants
Other Expenses
Other %
Academic Version
Page 43
Appendix
Total Other Expense
Net Other Income
Net Profit
Net Profit/Sales
$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
$591,378
20.75%
$0
$696,378
22.11%
$0
$853,878
23.72%
$0
$1,063,637
25.32%
$0
$1,268,002
26.42%
$0
$1,477,599
27.36%
$0
$1,740,099
28.29%
$0
$2,002,599
29.02%
$0
$2,260,269
29.55%
$0
$2,522,689
30.03%
$0
$2,785,189
30.44%
$0
$3,047,682
30.78%
Academic Version
Page 44
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$25,000
$25,000
$0
$775,000
$775,000
$0
$1,510,000
$1,510,000
$0
$1,805,000
$1,805,000
$0
$1,955,000
$1,955,000
$0
$2,105,000
$2,105,000
$0
$2,255,000
$2,255,000
$0
$2,405,000
$2,405,000
$0
$2,555,000
$2,555,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$25,000
$0
$0
$0
$0
$0
$0
$0
$0
$775,000
$0
$0
$0
$0
$0
$0
$0
$0
$1,510,000
$0
$0
$0
$0
$0
$0
$0
$0
$1,805,000
$0
$0
$0
$0
$0
$0
$0
$0
$1,955,000
$0
$0
$0
$0
$0
$0
$0
$0
$2,105,000
$0
$0
$0
$0
$0
$0
$0
$0
$2,255,000
$0
$0
$0
$0
$0
$0
$0
$0
$2,405,000
$0
$0
$0
$0
$0
$0
$0
$0
$2,555,000
Expenditures
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12

Cash Spending
Bill Payments
$60,333
$23,000
$83,333
$60,333
$218,500
$278,833
$61,833
$27,000
$88,833
$208,660
$408,500
$617,160
$215,164
$874,189
$1,089,353
$215,664
$1,086,198
$1,301,862
$218,664
$1,262,134
$1,480,798
$220,664
$1,332,903
$1,553,567
$223,664
$1,429,909
$1,653,573
$224,164
$1,527,084
$1,751,248
$224,164
$1,624,538
$1,848,702
$224,168
$1,722,038
$1,946,206

Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Dividends
Subtotal Cash Spent
$0
$0
$0
$0
$0
$0
$0
$0
$83,333
$0
$0
$0
$0
$0
$0
$0
$0
$278,833
$0
$0
$0
$0
$0
$0
$0
$0
$88,833
$0
$0
$0
$0
$0
$0
$0
$0
$617,160
$0
$0
$0
$0
$0
$0
$0
$0
$1,089,353
$0
$0
$0
$0
$0
$0
$0
$0
$1,301,862
$0
$0
$0
$0
$0
$0
$0
$0
$1,480,798
$0
$0
$0
$0
$0
$0
$0
$0
$1,553,567
$0
$0
$0
$0
$0
$0
$0
$0
$1,653,573
$0
$0
$0
$0
$0
$0
$0
$0
$1,751,248
$0
$0
$0
$0
$0
$0
$0
$0
$1,848,702
$0
$0
$0
$0
$0
$0
$0
$0
$1,946,206
($83,333)
$1,816,667
($278,833)
$1,537,834
($88,833)
$1,449,001
($592,160)
$856,841
($314,353)
$542,488
$208,138
$750,626
$324,202
$1,074,828
$401,433
$1,476,262
$451,427
$1,927,689
$503,752
$2,431,442
$556,298
$2,987,740
$608,794
$3,596,534
Cash Received
Cash Sales
Sales Tax, VAT, HST/GST Received
0.00%
Net Cash Flow

Cash Balance
Academic Version
Page 45
Appendix
Table: Cash Flow 2nd Year
Cash Flow 2nd Year
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24

Cash Sales
$0
$2,705,000
$2,705,000
$0
$2,860,000
$2,860,000
$0
$3,165,000
$3,165,000
$0
$3,620,000
$3,620,000
$0
$4,220,000
$4,220,000
$0
$4,820,000
$4,820,000
$0
$5,425,000
$5,425,000
$0
$6,175,000
$6,175,000
$0
$6,925,000
$6,925,000
$0
$7,675,000
$7,675,000
$0
$8,425,000
$8,425,000
$0
$9,175,000
$9,175,000

$0
$0
$0
$0
$0
$0
$0
$0
$2,705,000
$0
$0
$0
$0
$0
$0
$0
$0
$2,860,000
$0
$0
$0
$0
$0
$0
$0
$0
$3,165,000
$0
$0
$0
$0
$0
$0
$0
$0
$3,620,000
$0
$0
$0
$0
$0
$0
$0
$0
$4,220,000
$0
$0
$0
$0
$0
$0
$0
$0
$4,820,000
$0
$0
$0
$0
$0
$0
$0
$0
$5,425,000
$0
$0
$0
$0
$0
$0
$0
$0
$6,175,000
$0
$0
$0
$0
$0
$0
$0
$0
$6,925,000
$0
$0
$0
$0
$0
$0
$0
$0
$7,675,000
$0
$0
$0
$0
$0
$0
$0
$0
$8,425,000
$0
$0
$0
$0
$0
$0
$0
$0
$9,175,000
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24

Cash Spending
Bill Payments
$504,499
$1,790,383
$2,294,882
$504,499
$1,944,373
$2,448,872
$504,499
$2,247,623
$2,752,122
$504,799
$2,648,341
$3,153,140
$511,799
$3,063,836
$3,575,635
$512,299
$3,453,147
$3,965,446
$512,299
$3,925,102
$4,437,401
$512,299
$4,438,852
$4,951,151
$518,299
$4,925,728
$5,444,027
$518,399
$5,412,671
$5,931,070
$518,399
$5,900,162
$6,418,561
$518,407
$6,387,661
$6,906,068

Dividends
Subtotal Cash Spent
$0
$0
$0
$0
$0
$0
$0
$0
$2,294,882
$0
$0
$0
$0
$0
$0
$0
$0
$2,448,872
$0
$0
$0
$0
$0
$0
$0
$0
$2,752,122
$0
$0
$0
$0
$0
$0
$0
$0
$3,153,140
$0
$0
$0
$0
$0
$0
$0
$0
$3,575,635
$0
$0
$0
$0
$0
$0
$0
$0
$3,965,446
$0
$0
$0
$0
$0
$0
$0
$0
$4,437,401
$0
$0
$0
$0
$0
$0
$0
$0
$4,951,151
$0
$0
$0
$0
$0
$0
$0
$0
$5,444,027
$0
$0
$0
$0
$0
$0
$0
$0
$5,931,070
$0
$0
$0
$0
$0
$0
$0
$0
$6,418,561
$0
$0
$0
$0
$0
$0
$0
$0
$6,906,068
Net Cash Flow

Cash Balance
$410,118
$4,006,652
$411,128
$4,417,781
$412,878
$4,830,659
$466,860
$5,297,519
$644,365
$5,941,883
$854,554
$6,796,437
$987,599
$7,784,037
$1,223,849
$9,007,886
$1,480,973
$10,488,859
$1,743,930
$12,232,789
$2,006,439
$14,239,228
$2,268,932
$16,508,159
Cash Received
Expenditures
Academic Version
Page 46
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Starting Balances
Current Assets
Cash
Accounts Receivable
Inventory
$1,900,000
$0
$0
$0
$1,900,000
$1,816,667
$0
$0
$0
$1,816,667
$1,537,834
$0
$0
$0
$1,537,834
$1,449,001
$0
$0
$0
$1,449,001
$856,841
$725,000
$281,250
$0
$1,863,091
$542,488
$1,450,000
$562,500
$0
$2,554,988
$750,626
$1,740,000
$675,000
$0
$3,165,626
$1,074,828
$1,885,000
$731,250
$0
$3,691,078
$1,476,262
$2,030,000
$787,500
$0
$4,293,762
$1,927,689
$2,175,000
$843,750
$0
$4,946,439
$2,431,442
$2,320,000
$900,000
$0
$5,651,442
$2,987,740
$2,465,000
$956,250
$0
$6,408,990
$3,596,534
$2,610,000
$1,012,500
$0
$7,219,034
Long-term Assets
Long-term Assets
Total Assets
$0
$0
$0
$1,900,000
$0
$0
$0
$1,816,667
$0
$0
$0
$1,537,834
$0
$0
$0
$1,449,001
$0
$0
$0
$1,863,091
$0
$0
$0
$2,554,988
$0
$0
$0
$3,165,626
$0
$0
$0
$3,691,078
$0
$0
$0
$4,293,762
$0
$0
$0
$4,946,439
$0
$0
$0
$5,651,442
$0
$0
$0
$6,408,990
$0
$0
$0
$7,219,034
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12

Current Liabilities
Accounts Payable
Current Borrowing
$0
$0
$1,900,000
$1,900,000
($34,765)
$0
$1,900,000
$1,865,235
($265,030)
$0
$1,900,000
$1,634,970
($304,087)
$0
$1,900,000
$1,595,913
$15,474
$0
$1,900,000
$1,915,474
$355,578
$0
$1,900,000
$2,255,578
$509,826
$0
$1,900,000
$2,409,826
$528,803
$0
$1,900,000
$2,428,803
$574,121
$0
$1,900,000
$2,474,121
$619,348
$0
$1,900,000
$2,519,348
$664,802
$0
$1,900,000
$2,564,802
$710,302
$0
$1,900,000
$2,610,302
$755,802
$0
$1,900,000
$2,655,802
Total Liabilities
$0
$1,900,000
$0
$1,865,235
$0
$1,634,970
$0
$1,595,913
$0
$1,915,474
$0
$2,255,578
$0
$2,409,826
$0
$2,428,803
$0
$2,474,121
$0
$2,519,348
$0
$2,564,802
$0
$2,610,302
$0
$2,655,802
Paid-in Capital
Retained Earnings
Earnings
Total Capital
$0
$0
$0
$0
$1,900,000
$0
$0
($48,568)
($48,568)
$1,816,667
$0
$0
($97,136)
($97,136)
$1,537,834
$0
$0
($146,912)
($146,912)
$1,449,001
$0
$0
($52,383)
($52,383)
$1,863,091
$0
$0
$299,410
$299,410
$2,554,988
$0
$0
$755,800
$755,800
$3,165,626
$0
$0
$1,262,276
$1,262,276
$3,691,078
$0
$0
$1,819,641
$1,819,641
$4,293,762
$0
$0
$2,427,092
$2,427,092
$4,946,439
$0
$0
$3,086,640
$3,086,640
$5,651,442
$0
$0
$3,798,688
$3,798,688
$6,408,990
$0
$0
$4,563,233
$4,563,233
$7,219,034
$0
($48,568)
($97,136)
($146,912)
($52,383)
$299,410
$755,800
$1,262,276
$1,819,641
$2,427,092
$3,086,640
$3,798,688
$4,563,233
Net Worth
Academic Version
Page 47
Appendix
Table: Balance Sheet 2nd Year
Balance Sheet 2nd Year
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
Current Assets
Cash
Accounts Receivable
Inventory
$4,006,652
$2,755,000
$1,068,750
$0
$7,830,402
$4,417,781
$3,045,000
$1,181,250
$0
$8,644,031
$4,830,659
$3,480,000
$1,350,000
$0
$9,660,659
$5,297,519
$4,060,000
$1,575,000
$0
$10,932,519
$5,941,883
$4,640,000
$1,800,000
$0
$12,381,883
$6,796,437
$5,220,000
$2,025,000
$0
$14,041,437
$7,784,037
$5,945,000
$2,306,250
$0
$16,035,287
$9,007,886
$6,670,000
$2,587,500
$0
$18,265,386
$10,488,859
$7,395,000
$2,868,750
$0
$20,752,609
$12,232,789
$8,120,000
$3,150,000
$0
$23,502,789
$14,239,228
$8,845,000
$3,431,250
$0
$26,515,478
$16,508,159
$9,570,000
$3,712,500
$0
$29,790,659
Long-term Assets
Long-term Assets
Total Assets
$0
$0
$0
$7,830,402
$0
$0
$0
$8,644,031
$0
$0
$0
$9,660,659
$0
$0
$0
$10,932,519
$0
$0
$0
$12,381,883
$0
$0
$0
$14,041,437
$0
$0
$0
$16,035,287
$0
$0
$0
$18,265,386
$0
$0
$0
$20,752,609
$0
$0
$0
$23,502,789
$0
$0
$0
$26,515,478
$0
$0
$0
$29,790,659
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
Current Liabilities
Accounts Payable
Current Borrowing
$775,792
$0
$1,900,000
$2,675,792
$893,042
$0
$1,900,000
$2,793,042
$1,055,792
$0
$1,900,000
$2,955,792
$1,264,014
$0
$1,900,000
$3,164,014
$1,445,377
$0
$1,900,000
$3,345,377
$1,627,332
$0
$1,900,000
$3,527,332
$1,881,082
$0
$1,900,000
$3,781,082
$2,108,582
$0
$1,900,000
$4,008,582
$2,335,536
$0
$1,900,000
$4,235,536
$2,563,027
$0
$1,900,000
$4,463,027
$2,790,527
$0
$1,900,000
$4,690,527
$3,018,026
$0
$1,900,000
$4,918,026
Total Liabilities
$0
$2,675,792
$0
$2,793,042
$0
$2,955,792
$0
$3,164,014
$0
$3,345,377
$0
$3,527,332
$0
$3,781,082
$0
$4,008,582
$0
$4,235,536
$0
$4,463,027
$0
$4,690,527
$0
$4,918,026
Paid-in Capital
Retained Earnings
Earnings
Total Capital
$0
$4,563,233
$591,378
$5,154,611
$7,830,402
$0
$4,563,233
$1,287,757
$5,850,989
$8,644,031
$0
$4,563,233
$2,141,635
$6,704,868
$9,660,659
$0
$4,563,233
$3,205,272
$7,768,504
$10,932,519
$0
$4,563,233
$4,473,274
$9,036,506
$12,381,883
$0
$4,563,233
$5,950,873
$10,514,105
$14,041,437
$0
$4,563,233
$7,690,972
$12,254,205
$16,035,287
$0
$4,563,233
$9,693,571
$14,256,804
$18,265,386
$0
$4,563,233
$11,953,841
$16,517,073
$20,752,609
$0
$4,563,233
$14,476,530
$19,039,762
$23,502,789
$0
$4,563,233
$17,261,718
$21,824,951
$26,515,478
$0
$4,563,233
$20,309,401
$24,872,633
$29,790,659
Net Worth
$5,154,611
$5,850,989
$6,704,868
$7,768,504
$9,036,506
$10,514,105
$12,254,205
$14,256,804
$16,517,073
$19,039,762
$21,824,951
$24,872,633
Assets
Academic Version
Page 48
Appendix
Exit Strategy
Academic Version
Page 49
Appendix
Valuation
Academic Version
Page 50
Appendix
Table: Investment Analysis
Investment Analysis
Initial Investment
Investment
Dividends
Ending Valuation
Combination as Income Stream
Percent Equity Acquired
Net Present Value (NPV)
Internal Rate of Return (IRR)
Assumptions
Discount Rate
Valuation Earnings Multiple
Valuation Sales Multiple
Investment (calculated)
Dividends
Calculated Earnings-based Valuation
Calculated Sales-based Valuation
Calculated Average Valuation
Start
Year 1
Year 2
Year 3
Year 4
Year 5
$0
$0
$0
$0
35%
$134,982,933
0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$239,130,500
$239,130,500
10
2
10
2
10
2
10
2
10
2
$0
$0
$45,630,000
$36,000,000
$40,815,000
$0
$0
$203,090,000
$144,300,000
$173,695,000
$0
$0
$462,920,000
$320,100,000
$391,510,000
$0
$0
$668,050,000
$454,800,000
$561,425,000
$0
$0
$683,230,000
$464,400,000
$573,815,000
10.00%
$0
Academic Version
Page 51
Appendix
Financial Risks and Contingencies
Academic Version
Page 52
Appendix
SWOT Analysis
Academic Version
Page 53
Appendix
Strengths
Academic Version
Page 54
Appendix
Weaknesses
Academic Version
Page 55
Appendix
Opportunities
Academic Version
Page 56
Appendix
Threats
Academic Version
Page 57
Appendix
Table: Sources and Uses
Sources and Uses of Cash
(Indirect Cash Flow Method)
Sources of Cash
Net Income
Depreciation
Increase in Accounts Payable
Decrease in Accounts Receivable
Decrease in Inventory
New Loans
New Investment
Sales Taxes (VAT/GST) Collected
Sale of Assets
Subtotal Sources of Cash
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
($48,568)
$0
$0
$0
$0
$0
$0
$0
$0
($48,568)
($48,568)
$0
$0
$0
$0
$0
$0
$0
$0
($48,568)
($49,776)
$0
$0
$0
$0
$0
$0
$0
$0
($49,776)
$94,529
$0
$319,561
$0
$0
$0
$0
$0
$0
$414,090
$351,793
$0
$340,104
$0
$0
$0
$0
$0
$0
$691,897
$456,390
$0
$154,248
$0
$0
$0
$0
$0
$0
$610,638
$506,475
$0
$18,977
$0
$0
$0
$0
$0
$0
$525,452
$557,365
$0
$45,318
$0
$0
$0
$0
$0
$0
$602,683
$607,450
$0
$45,227
$0
$0
$0
$0
$0
$0
$652,677
$659,548
$0
$45,455
$0
$0
$0
$0
$0
$0
$705,002
$712,048
$0
$45,500
$0
$0
$0
$0
$0
$0
$757,548
$764,545
$0
$45,500
$0
$0
$0
$0
$0
$0
$810,044
Use of Cash
Decrease in Accounts Payable
Increase in Accounts Receivable
Increase in Inventory
Repay Loans
Purchase Other Assets
Distributions
Sales Tax Payment
Subtotal Uses of Cash
Month 1
$34,765
$0
$0
$0
$0
$0
$0
$34,765
Month 2
$230,265
$0
$0
$0
$0
$0
$0
$230,265
Month 3
$39,057
$0
$0
$0
$0
$0
$0
$39,057
Month 4
$0
$725,000
$281,250
$0
$0
$0
$0
$1,006,250
Month 5
$0
$725,000
$281,250
$0
$0
$0
$0
$1,006,250
Month 6
$0
$290,000
$112,500
$0
$0
$0
$0
$402,500
Month 7
$0
$145,000
$56,250
$0
$0
$0
$0
$201,250
Month 8
$0
$145,000
$56,250
$0
$0
$0
$0
$201,250
Month 9
$0
$145,000
$56,250
$0
$0
$0
$0
$201,250
Month 10
$0
$145,000
$56,250
$0
$0
$0
$0
$201,250
Month 11
$0
$145,000
$56,250
$0
$0
$0
$0
$201,250
Month 12
$0
$145,000
$56,250
$0
$0
$0
$0
$201,250
($83,333)
$1,816,667
($278,833)
$1,537,834
($88,833)
$1,449,001
($592,160)
$856,841
($314,353)
$542,488
$208,138
$750,626
$324,202
$1,074,828
$401,433
$1,476,262
$451,427
$1,927,689
$503,752
$2,431,442
$556,298
$2,987,740
$608,794
$3,596,534
Net Cash Flow

Cash Balance
Academic Version
Page 58
Appendix
Table: Sources and Uses 2nd Year
Sources and Uses 2nd Year
(Indirect Cash Flow Method)
Sources of Cash
Net Income
Depreciation
Increase in Accounts Payable
Decrease in Accounts Receivable
Decrease in Inventory
New Loans
New Investment
Sales Taxes (VAT/GST) Collected
Sale of Assets
Subtotal Sources of Cash
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
$591,378
$0
$19,990
$0
$0
$0
$0
$0
$0
$611,368
$696,378
$0
$117,250
$0
$0
$0
$0
$0
$0
$813,628
$853,878
$0
$162,750
$0
$0
$0
$0
$0
$0
$1,016,628
$1,063,637
$0
$208,223
$0
$0
$0
$0
$0
$0
$1,271,860
$1,268,002
$0
$181,363
$0
$0
$0
$0
$0
$0
$1,449,365
$1,477,599
$0
$181,955
$0
$0
$0
$0
$0
$0
$1,659,554
$1,740,099
$0
$253,750
$0
$0
$0
$0
$0
$0
$1,993,849
$2,002,599
$0
$227,500
$0
$0
$0
$0
$0
$0
$2,230,099
$2,260,269
$0
$226,954
$0
$0
$0
$0
$0
$0
$2,487,223
$2,522,689
$0
$227,491
$0
$0
$0
$0
$0
$0
$2,750,180
$2,785,189
$0
$227,500
$0
$0
$0
$0
$0
$0
$3,012,689
$3,047,682
$0
$227,499
$0
$0
$0
$0
$0
$0
$3,275,182
Use of Cash
Decrease in Accounts Payable
Increase in Accounts Receivable
Increase in Inventory
Repay Loans
Purchase Other Assets
Distributions
Sales Tax Payment
Subtotal Uses of Cash
Month 13
$0
$145,000
$56,250
$0
$0
$0
$0
$201,250
Month 14
$0
$290,000
$112,500
$0
$0
$0
$0
$402,500
Month 15
$0
$435,000
$168,750
$0
$0
$0
$0
$603,750
Month 16
$0
$580,000
$225,000
$0
$0
$0
$0
$805,000
Month 17
$0
$580,000
$225,000
$0
$0
$0
$0
$805,000
Month 18
$0
$580,000
$225,000
$0
$0
$0
$0
$805,000
Month 19
$0
$725,000
$281,250
$0
$0
$0
$0
$1,006,250
Month 20
$0
$725,000
$281,250
$0
$0
$0
$0
$1,006,250
Month 21
$0
$725,000
$281,250
$0
$0
$0
$0
$1,006,250
Month 22
$0
$725,000
$281,250
$0
$0
$0
$0
$1,006,250
Month 23
$0
$725,000
$281,250
$0
$0
$0
$0
$1,006,250
Month 24
$0
$725,000
$281,250
$0
$0
$0
$0
$1,006,250
$410,118
$4,006,652
$411,128
$4,417,781
$412,878
$4,830,659
$466,860
$5,297,519
$644,365
$5,941,883
$854,554
$6,796,437
$987,599
$7,784,037
$1,223,849
$9,007,886
$1,480,973
$10,488,859
$1,743,930
$12,232,789
$2,006,439
$14,239,228
$2,268,932
$16,508,159
Net Cash Flow

Cash Balance
Academic Version
Page 59
Appendix
Table: Receivables Detail
Receivables Detail
Estimated Collection Period in Days
Sales on Credit %
Month 1
30
100.00%
Month 2
30
100.00%
Month 3
30
100.00%
Month 4
30
100.00%
Month 5
30
100.00%
Month 6
30
100.00%
Month 7
30
100.00%
Month 8
30
100.00%
Month 9
30
100.00%
Month 10
30
100.00%
Month 11
30
100.00%
Month 12
30
100.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$750,000
$25,000
$725,000
$725,000
$1,500,000
$775,000
$1,450,000
$1,450,000
$1,800,000
$1,510,000
$1,740,000
$1,740,000
$1,950,000
$1,805,000
$1,885,000
$1,885,000
$2,100,000
$1,955,000
$2,030,000
$2,030,000
$2,250,000
$2,105,000
$2,175,000
$2,175,000
$2,400,000
$2,255,000
$2,320,000
$2,320,000
$2,550,000
$2,405,000
$2,465,000
$2,465,000
$2,700,000
$2,555,000
$2,610,000
Receivables
Beginning Receivables Balance
Plus Sales on Credit
Less Cash from Receivables
Ending Receivables Balance
Academic Version
Page 60
Appendix
Table: Receivables Detail 2nd Year
Receivables Detail 2nd Year
Estimated Collection Period in Days
Sales on Credit %
Month 13
30
100.00%
Month 14
30
100.00%
Month 15
30
100.00%
Month 16
30
100.00%
Month 17
30
100.00%
Month 18
30
100.00%
Month 19
30
100.00%
Month 20
30
100.00%
Month 21
30
100.00%
Month 22
30
100.00%
Month 23
30
100.00%
Month 24
30
100.00%
$2,610,000
$2,850,000
$2,705,000
$2,755,000
$2,755,000
$3,150,000
$2,860,000
$3,045,000
$3,045,000
$3,600,000
$3,165,000
$3,480,000
$3,480,000
$4,200,000
$3,620,000
$4,060,000
$4,060,000
$4,800,000
$4,220,000
$4,640,000
$4,640,000
$5,400,000
$4,820,000
$5,220,000
$5,220,000
$6,150,000
$5,425,000
$5,945,000
$5,945,000
$6,900,000
$6,175,000
$6,670,000
$6,670,000
$7,650,000
$6,925,000
$7,395,000
$7,395,000
$8,400,000
$7,675,000
$8,120,000
$8,120,000
$9,150,000
$8,425,000
$8,845,000
$8,845,000
$9,900,000
$9,175,000
$9,570,000
Receivables
Beginning Receivables Balance
Plus Sales on Credit
Less Cash from Receivables
Ending Receivables Balance
Academic Version
Page 61
Appendix
Table: Payment Detail
Payment Detail
Payment Delay in Days
Month 1
15
Month 2
15
Month 3
15
Month 4
15
Month 5
15
Month 6
15
Month 7
15
Month 8
15
Month 9
15
Month 10
15
Month 11
15
Month 12
15
$0
$48,568
$60,333
$23,000
($34,765)
($34,765)
$48,568
$60,333
$218,500
($265,030)
($265,030)
$49,776
$61,833
$27,000
($304,087)
($304,087)
$936,721
$208,660
$408,500
$15,474
$15,474
$1,429,457
$215,164
$874,189
$355,578
$355,578
$1,456,110
$215,664
$1,086,198
$509,826
$509,826
$1,499,775
$218,664
$1,262,134
$528,803
$528,803
$1,598,885
$220,664
$1,332,903
$574,121
$574,121
$1,698,800
$223,664
$1,429,909
$619,348
$619,348
$1,796,702
$224,164
$1,527,084
$664,802
$664,802
$1,894,202
$224,164
$1,624,538
$710,302
$710,302
$1,991,705
$224,168
$1,722,038
$755,802
Payables
Beginning Payables Balance
Plus New Payment Obligations
Less Cash Spending
Less Bill Payments
Ending Payables Balance
Academic Version
Page 62
Appendix
Table: Payment Detail 2nd Year
Payment Detail 2nd Year
Payment Delay in Days
Month 13
15
Month 14
15
Month 15
15
Month 16
15
Month 17
15
Month 18
15
Month 19
15
Month 20
15
Month 21
15
Month 22
15
Month 23
15
Month 24
15
$755,802
$2,314,872
$504,499
$1,790,383
$775,792
$775,792
$2,566,122
$504,499
$1,944,373
$893,042
$893,042
$2,914,872
$504,499
$2,247,623
$1,055,792
$1,055,792
$3,361,363
$504,799
$2,648,341
$1,264,014
$1,264,014
$3,756,998
$511,799
$3,063,836
$1,445,377
$1,445,377
$4,147,401
$512,299
$3,453,147
$1,627,332
$1,627,332
$4,691,151
$512,299
$3,925,102
$1,881,082
$1,881,082
$5,178,651
$512,299
$4,438,852
$2,108,582
$2,108,582
$5,670,981
$518,299
$4,925,728
$2,335,536
$2,335,536
$6,158,561
$518,399
$5,412,671
$2,563,027
$2,563,027
$6,646,061
$518,399
$5,900,162
$2,790,527
$2,790,527
$7,133,568
$518,407
$6,387,661
$3,018,026
Payables
Beginning Payables Balance
Plus New Payment Obligations
Less Cash Spending
Less Bill Payments
Ending Payables Balance
Academic Version
Page 63
Appendix
Table: Inventory Detail
Inventory Detail
Months of Inventory On-hand
Minimum Inventory Purchase
Month 1
0.75
$100,000
Month 2
0.75
Month 3
0.75
Month 4
0.75
Month 5
0.75
Month 6
0.75
Month 7
0.75
Month 8
0.75
Month 9
0.75
Month 10
0.75
Month 11
0.75
Month 12
0.75
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$375,000
$656,250
$281,250
$281,250
$750,000
$1,031,250
$562,500
$562,500
$900,000
$1,012,500
$675,000
$675,000
$975,000
$1,031,250
$731,250
$731,250
$1,050,000
$1,106,250
$787,500
$787,500
$1,125,000
$1,181,250
$843,750
$843,750
$1,200,000
$1,256,250
$900,000
$900,000
$1,275,000
$1,331,250
$956,250
$956,250
$1,350,000
$1,406,250
$1,012,500
Inventory Balance
Beginning Inventory Balance
Less Inventory Used as COGS
Plus Inventory Purchase
Ending Inventory Balance
Academic Version
Page 64
Appendix
Table: Inventory Detail 2nd Year
Inventory Detail 2nd Year
Months of Inventory On-hand
Minimum Inventory Purchase
Month 13
0.75
Month 14
0.75
Month 15
0.75
Month 16
0.75
Month 17
0.75
Month 18
0.75
Month 19
0.75
Month 20
0.75
Month 21
0.75
Month 22
0.75
Month 23
0.75
Month 24
0.75
$1,012,500
$1,425,000
$1,481,250
$1,068,750
$1,068,750
$1,575,000
$1,687,500
$1,181,250
$1,181,250
$1,800,000
$1,968,750
$1,350,000
$1,350,000
$2,100,000
$2,325,000
$1,575,000
$1,575,000
$2,400,000
$2,625,000
$1,800,000
$1,800,000
$2,700,000
$2,925,000
$2,025,000
$2,025,000
$3,075,000
$3,356,250
$2,306,250
$2,306,250
$3,450,000
$3,731,250
$2,587,500
$2,587,500
$3,825,000
$4,106,250
$2,868,750
$2,868,750
$4,200,000
$4,481,250
$3,150,000
$3,150,000
$4,575,000
$4,856,250
$3,431,250
$3,431,250
$4,950,000
$5,231,250
$3,712,500
Inventory Balance
Beginning Inventory Balance
Less Inventory Used as COGS
Plus Inventory Purchase
Ending Inventory Balance
Academic Version
Page 65
Appendix
Table: Balance Sheet 2nd Year
Balance Sheet 2nd Year
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
Current Assets
Cash
Accounts Receivable
Inventory
$4,006,652
$2,755,000
$1,068,750
$0
$7,830,402
$4,417,781
$3,045,000
$1,181,250
$0
$8,644,031
$4,830,659
$3,480,000
$1,350,000
$0
$9,660,659
$5,297,519
$4,060,000
$1,575,000
$0
$10,932,519
$5,941,883
$4,640,000
$1,800,000
$0
$12,381,883
$6,796,437
$5,220,000
$2,025,000
$0
$14,041,437
$7,784,037
$5,945,000
$2,306,250
$0
$16,035,287
$9,007,886
$6,670,000
$2,587,500
$0
$18,265,386
$10,488,859
$7,395,000
$2,868,750
$0
$20,752,609
$12,232,789
$8,120,000
$3,150,000
$0
$23,502,789
$14,239,228
$8,845,000
$3,431,250
$0
$26,515,478
$16,508,159
$9,570,000
$3,712,500
$0
$29,790,659
Long-term Assets
Long-term Assets
Total Assets
$0
$0
$0
$7,830,402
$0
$0
$0
$8,644,031
$0
$0
$0
$9,660,659
$0
$0
$0
$10,932,519
$0
$0
$0
$12,381,883
$0
$0
$0
$14,041,437
$0
$0
$0
$16,035,287
$0
$0
$0
$18,265,386
$0
$0
$0
$20,752,609
$0
$0
$0
$23,502,789
$0
$0
$0
$26,515,478
$0
$0
$0
$29,790,659
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
Current Liabilities
Accounts Payable
Current Borrowing
$775,792
$0
$1,900,000
$2,675,792
$893,042
$0
$1,900,000
$2,793,042
$1,055,792
$0
$1,900,000
$2,955,792
$1,264,014
$0
$1,900,000
$3,164,014
$1,445,377
$0
$1,900,000
$3,345,377
$1,627,332
$0
$1,900,000
$3,527,332
$1,881,082
$0
$1,900,000
$3,781,082
$2,108,582
$0
$1,900,000
$4,008,582
$2,335,536
$0
$1,900,000
$4,235,536
$2,563,027
$0
$1,900,000
$4,463,027
$2,790,527
$0
$1,900,000
$4,690,527
$3,018,026
$0
$1,900,000
$4,918,026
Total Liabilities
$0
$2,675,792
$0
$2,793,042
$0
$2,955,792
$0
$3,164,014
$0
$3,345,377
$0
$3,527,332
$0
$3,781,082
$0
$4,008,582
$0
$4,235,536
$0
$4,463,027
$0
$4,690,527
$0
$4,918,026
Paid-in Capital
Retained Earnings
Earnings
Total Capital
$0
$4,563,233
$591,378
$5,154,611
$7,830,402
$0
$4,563,233
$1,287,757
$5,850,989
$8,644,031
$0
$4,563,233
$2,141,635
$6,704,868
$9,660,659
$0
$4,563,233
$3,205,272
$7,768,504
$10,932,519
$0
$4,563,233
$4,473,274
$9,036,506
$12,381,883
$0
$4,563,233
$5,950,873
$10,514,105
$14,041,437
$0
$4,563,233
$7,690,972
$12,254,205
$16,035,287
$0
$4,563,233
$9,693,571
$14,256,804
$18,265,386
$0
$4,563,233
$11,953,841
$16,517,073
$20,752,609
$0
$4,563,233
$14,476,530
$19,039,762
$23,502,789
$0
$4,563,233
$17,261,718
$21,824,951
$26,515,478
$0
$4,563,233
$20,309,401
$24,872,633
$29,790,659
Net Worth
$5,154,611
$5,850,989
$6,704,868
$7,768,504
$9,036,506
$10,514,105
$12,254,205
$14,256,804
$16,517,073
$19,039,762
$21,824,951
$24,872,633
Assets
Academic Version
Page 66
Appendix
Table: Cash Flow 2nd Year
Cash Flow 2nd Year
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24

Cash Sales
$0
$2,705,000
$2,705,000
$0
$2,860,000
$2,860,000
$0
$3,165,000
$3,165,000
$0
$3,620,000
$3,620,000
$0
$4,220,000
$4,220,000
$0
$4,820,000
$4,820,000
$0
$5,425,000
$5,425,000
$0
$6,175,000
$6,175,000
$0
$6,925,000
$6,925,000
$0
$7,675,000
$7,675,000
$0
$8,425,000
$8,425,000
$0
$9,175,000
$9,175,000

$0
$0
$0
$0
$0
$0
$0
$0
$2,705,000
$0
$0
$0
$0
$0
$0
$0
$0
$2,860,000
$0
$0
$0
$0
$0
$0
$0
$0
$3,165,000
$0
$0
$0
$0
$0
$0
$0
$0
$3,620,000
$0
$0
$0
$0
$0
$0
$0
$0
$4,220,000
$0
$0
$0
$0
$0
$0
$0
$0
$4,820,000
$0
$0
$0
$0
$0
$0
$0
$0
$5,425,000
$0
$0
$0
$0
$0
$0
$0
$0
$6,175,000
$0
$0
$0
$0
$0
$0
$0
$0
$6,925,000
$0
$0
$0
$0
$0
$0
$0
$0
$7,675,000
$0
$0
$0
$0
$0
$0
$0
$0
$8,425,000
$0
$0
$0
$0
$0
$0
$0
$0
$9,175,000
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24

Cash Spending
Bill Payments
$504,499
$1,790,383
$2,294,882
$504,499
$1,944,373
$2,448,872
$504,499
$2,247,623
$2,752,122
$504,799
$2,648,341
$3,153,140
$511,799
$3,063,836
$3,575,635
$512,299
$3,453,147
$3,965,446
$512,299
$3,925,102
$4,437,401
$512,299
$4,438,852
$4,951,151
$518,299
$4,925,728
$5,444,027
$518,399
$5,412,671
$5,931,070
$518,399
$5,900,162
$6,418,561
$518,407
$6,387,661
$6,906,068

Dividends
Subtotal Cash Spent
$0
$0
$0
$0
$0
$0
$0
$0
$2,294,882
$0
$0
$0
$0
$0
$0
$0
$0
$2,448,872
$0
$0
$0
$0
$0
$0
$0
$0
$2,752,122
$0
$0
$0
$0
$0
$0
$0
$0
$3,153,140
$0
$0
$0
$0
$0
$0
$0
$0
$3,575,635
$0
$0
$0
$0
$0
$0
$0
$0
$3,965,446
$0
$0
$0
$0
$0
$0
$0
$0
$4,437,401
$0
$0
$0
$0
$0
$0
$0
$0
$4,951,151
$0
$0
$0
$0
$0
$0
$0
$0
$5,444,027
$0
$0
$0
$0
$0
$0
$0
$0
$5,931,070
$0
$0
$0
$0
$0
$0
$0
$0
$6,418,561
$0
$0
$0
$0
$0
$0
$0
$0
$6,906,068
Net Cash Flow

Cash Balance
$410,118
$4,006,652
$411,128
$4,417,781
$412,878
$4,830,659
$466,860
$5,297,519
$644,365
$5,941,883
$854,554
$6,796,437
$987,599
$7,784,037
$1,223,849
$9,007,886
$1,480,973
$10,488,859
$1,743,930
$12,232,789
$2,006,439
$14,239,228
$2,268,932
$16,508,159
Cash Received
Expenditures
Academic Version
Page 67
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Month 1
1
10.00%
10.00%
30.00%
0
Month 2
2
10.00%
10.00%
30.00%
0
Month 3
3
10.00%
10.00%
30.00%
0
Month 4
4
10.00%
10.00%
30.00%
0
Month 5
5
10.00%
10.00%
30.00%
0
Month 6
6
10.00%
10.00%
30.00%
0
Month 7
7
10.00%
10.00%
30.00%
0
Month 8
8
10.00%
10.00%
30.00%
0
Month 9
9
10.00%
10.00%
30.00%
0
Month 10
10
10.00%
10.00%
30.00%
0
Month 11
11
10.00%
10.00%
30.00%
0
Month 12
12
10.00%
10.00%
30.00%
0
Academic Version
Page 68
Appendix
Table: General Assumptions 2nd Year
General Assumptions 2nd
Year
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Month 13
13
10.00%
10.00%
30.00%
0
Month 14
14
10.00%
10.00%
30.00%
0
Month 15
15
10.00%
10.00%
30.00%
0
Month 16
16
10.00%
10.00%
30.00%
0
Month 17
17
10.00%
10.00%
30.00%
0
Month 18
18
10.00%
10.00%
30.00%
0
Month 19
19
10.00%
10.00%
30.00%
0
Month 20
20
10.00%
10.00%
30.00%
0
Month 21
21
10.00%
10.00%
30.00%
0
Month 22
22
10.00%
10.00%
30.00%
0
Month 23
23
10.00%
10.00%
30.00%
0
Month 24
24
10.00%
10.00%
30.00%
0
Academic Version
Page 69
Appendix
Table: Long-term
Long-term
Sales
Cost of Sales
Gross Margin
Gross Margin %
Operating Expenses
Operating Income
Net Income
Current Assets
Long-term Assets
Current Liabilities
Equity
Year 1
$18,000,000
$10,827,475
$7,172,525
39.85%
$653,621
$6,518,904
$4,563,233
$7,219,034
$0
$2,655,802
$0
$4,563,233
Year 2
$72,150,000
$41,679,996
$30,470,004
42.23%
$1,456,574
$29,013,430
$20,309,401
$29,790,659
$0
$4,918,026
$0
$24,872,633
Year 3
$160,050,000
$91,459,359
$68,590,641
42.86%
$2,459,491
$66,131,150
$46,291,805
$77,428,801
$0
$6,264,363
$0
$71,164,438
Year 4
$227,400,000
$128,900,286
$98,499,714
43.32%
$3,064,573
$95,435,141
$66,804,599
$145,958,561
$0
$7,989,525
$0
$137,969,037
Year 5
$232,200,000
$131,465,972
$100,734,028
43.38%
$3,129,273
$97,604,755
$68,323,328
$214,276,235
$0
$7,983,870
$0
$206,292,365
Year 6
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
Year 7
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
Year 8
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
Year 9
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
Year 10
$0
$0
$0
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
Academic Version
Page 70
Appendix
Table: Milestones (Actual)
Milestones (Actual)
Milestone
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Totals
Start Date
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
3/16/2008
End Date
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
4/15/2008
Budget
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Manager
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Academic Version
Page 71
Appendix
Table: Milestones (Variance)
Milestones (Variance)
Milestone
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Name me
Totals
Start Date
0
0
0
0
0
0
0
0
0
0
End Date
0
0
0
0
0
0
0
0
0
0
Budget
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Manager
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
ABC
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Department
Academic Version
Page 72
Appendix
Table: Personal Net Worth
Personal Net Worth
Assets
Current Assets
Checking
Savings
Investment
Household Goods
Auto
Auto
All Other
Notes:
Balance
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Assets
Main Residence
Improvements
Account
All Other
$0
$0
$0
$0
$0
Total Assets
$0
Liabilities
Current Borrowing
Credit Card
Credit Card
Credit Card
Auto Loan
Other Current Debt
Other Current Debt
All Other
Subtotal Current Borrowing
Balance
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Borrowing
Mortgage
Other Long-term Loans
All Other
Subtotal Long-term Borrowing
$0
$0
$0
$0
Total Liabilities
$0
Net Worth
$0
Academic Version
Page 73
Appendix
Table: Personnel 2nd Year
Personnel 2nd Year
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,333
$16,666
$5,417
$411,666
$10,000
$467,082
$23,337
$16,674
$5,413
$411,670
$10,000
$467,094
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$3,500
$0
$3,500
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$4,000
$0
$4,000
$3,750
$6,667
$7,000
$7,000
$2,000
$0
$2,000
$2,500
$3,000
$33,917
$3,750
$6,667
$7,000
$7,000
$2,000
$0
$2,000
$2,500
$3,000
$33,917
$3,750
$6,667
$7,000
$7,000
$2,000
$0
$2,000
$2,500
$3,000
$33,917
$3,750
$6,667
$7,000
$7,000
$2,000
$0
$2,000
$2,500
$3,300
$34,217
$3,750
$6,667
$10,000
$10,000
$2,000
$0
$3,000
$2,500
$3,300
$41,217
$3,750
$6,667
$10,000
$10,000
$2,000
$0
$3,000
$2,500
$3,300
$41,217
$3,750
$6,667
$10,000
$10,000
$2,000
$0
$3,000
$2,500
$3,300
$41,217
$3,750
$6,667
$10,000
$10,000
$2,000
$0
$3,000
$2,500
$3,300
$41,217
$3,750
$6,667
$13,000
$13,000
$2,000
$0
$3,000
$2,500
$3,300
$47,217
$3,750
$6,667
$13,000
$13,000
$2,000
$0
$3,000
$2,600
$3,300
$47,317
$3,750
$6,667
$13,000
$13,000
$2,000
$0
$3,000
$2,600
$3,300
$47,317
$3,750
$6,663
$13,000
$13,000
$2,000
$0
$3,000
$2,600
$3,300
$47,313
$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
Total People
129
129
129
129
129
129
129
129
129
129
129
129
Total Payroll
$504,499
$504,499
$504,499
$504,799
$511,799
$512,299
$512,299
$512,299
$518,299
$518,399
$518,399
$518,407
MFR Spvr/Mgt/QA
MFG Engineering
MFG Fixed Mfg labor
Subtotal
Reserved
Subtotal
MFG HR
MFG Finance & Acct
Bev CEO
Bev DIR R&D
Bev MKG DIR
Bev Exec Manager
Bev Clerical
Subtotal
Other Personnel
Subtotal
Academic Version
Page 74
Appendix
Table: Profit and Loss (Actual)
Profit and Loss (Actual)
Sales
Production Payroll
Cost of Goods Sold
Gross Margin
Gross Margin %
Month 1
$0
$0
$42,916
$0
-----------$42,916
Month 2
$0
$0
$42,916
$0
-----------$42,916
Month 3
$0
$0
$42,916
$0
-----------$42,916
Month 4
$750,000
$375,000
$184,743
$0
-----------$559,743
Month 5
$1,500,000
$750,000
$184,747
$0
-----------$934,747
Month 6
$1,800,000
$900,000
$186,747
$0
-----------$1,086,747
Month 7
$1,950,000
$975,000
$188,747
$0
-----------$1,163,747
Month 8
$2,100,000
$1,050,000
$190,747
$0
-----------$1,240,747
Month 9
$2,250,000
$1,125,000
$190,747
$0
-----------$1,315,747
Month 10
$2,400,000
$1,200,000
$190,747
$0
-----------$1,390,747
Month 11
$2,550,000
$1,275,000
$190,747
$0
-----------$1,465,747
Month 12
$2,700,000
$1,350,000
$190,755
$0
-----------$1,540,755
($42,916)
0.00%
($42,916)
0.00%
($42,916)
0.00%
$190,257
25.37%
$565,253
37.68%
$713,253
39.63%
$786,253
40.32%
$859,253
40.92%
$934,253
41.52%
$1,009,253
42.05%
$1,084,253
42.52%
$1,159,245
42.94%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$3,500
$0
$0
-----------$3,500
0.23%
$3,500
$0
$0
-----------$3,500
0.19%
$3,500
$0
$0
-----------$3,500
0.18%
$3,500
$0
$0
-----------$3,500
0.17%
$3,500
$0
$0
-----------$3,500
0.16%
$3,500
$0
$0
-----------$3,500
0.15%
$3,500
$0
$0
-----------$3,500
0.14%
$3,500
$0
$0
-----------$3,500
0.13%
$17,417
$0
$0
$0
$0
$0
$9,050
$17,417
$0
$0
$0
$0
$0
$9,050
$18,917
$0
$0
$0
$0
$0
$9,275
$23,917
$0
$0
$0
$0
$0
$31,299
$26,917
$0
$0
$0
$0
$0
$32,275
$25,417
$0
$0
$0
$0
$0
$32,350
$26,417
$0
$0
$0
$0
$0
$32,800
$26,417
$0
$0
$0
$0
$0
$33,100
$29,417
$0
$0
$0
$0
$0
$33,550
$29,917
$0
$0
$0
$0
$0
$33,625
$29,917
$0
$0
$0
$0
$0
$33,625
$29,913
$0
$0
$0
$0
$0
$33,625
Operating Expenses
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Expenses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
$26,467
$26,467
$28,192
$55,216
$59,192
$57,767
$59,217
$59,517
$62,967
$63,542
$63,542
$63,538
0.00%
0.00%
0.00%
7.36%
3.95%
3.21%
3.04%
2.83%
2.80%
2.65%
2.49%
2.35%
$0
$0
$0
-----------$0
0.00%
-----------$26,467
$0
$0
$0
-----------$0
0.00%
-----------$26,467
$0
$0
$0
-----------$0
0.00%
-----------$28,192
$0
$0
$0
-----------$0
0.00%
-----------$55,216
$0
$0
$0
-----------$0
0.00%
-----------$62,692
$0
$0
$0
-----------$0
0.00%
-----------$61,267
$0
$0
$0
-----------$0
0.00%
-----------$62,717
$0
$0
$0
-----------$0
0.00%
-----------$63,017
$0
$0
$0
-----------$0
0.00%
-----------$66,467
$0
$0
$0
-----------$0
0.00%
-----------$67,042
$0
$0
$0
-----------$0
0.00%
-----------$67,042
$0
$0
$0
-----------$0
0.00%
-----------$67,038
($69,383)
($69,383)
$0
($20,815)
($69,383)
($69,383)
$0
($20,815)
($71,108)
($71,108)
$0
($21,332)
$135,041
$135,041
$0
$40,512
$502,561
$502,561
$0
$150,768
$651,986
$651,986
$0
$195,596
$723,536
$723,536
$0
$217,061
$796,236
$796,236
$0
$238,871
$867,786
$867,786
$0
$260,336
$942,211
$942,211
$0
$282,663
$1,017,211
$1,017,211
$0
$305,163
$1,092,207
$1,092,207
$0
$327,662
Other Income
Total Other Income
$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
Other Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

Expenses
Other Expenses:
Other Payroll
Consultants
Other Expenses
Other %
EBITDA
Interest Expense
Taxes Incurred
Academic Version
Page 75
Appendix
Total Other Expense
Net Other Income
Net Profit
Net Profit/Sales
Include Negative Taxes
$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
($48,568)
0.00%
$0
($48,568)
0.00%
$0
($49,776)
0.00%
$0
$94,529
12.60%
$0
$351,793
23.45%
$0
$456,390
25.36%
$0
$506,475
25.97%
$0
$557,365
26.54%
$0
$607,450
27.00%
$0
$659,548
27.48%
$0
$712,048
27.92%
$0
$764,545
28.32%
Academic Version
Page 76
Appendix
Table: Profit and Loss (Variance)
Profit and Loss (Variance)
Sales
Production Payroll
Cost of Goods Sold
Gross Margin
Gross Margin %
Month 1
$0
$0
$0
$0
-----------$0
Month 2
$0
$0
$0
$0
-----------$0
Month 3
$0
$0
$0
$0
-----------$0
Month 4
$0
$0
$0
$0
-----------$0
Month 5
$0
$0
$0
$0
-----------$0
Month 6
$0
$0
$0
$0
-----------$0
Month 7
$0
$0
$0
$0
-----------$0
Month 8
$0
$0
$0
$0
-----------$0
Month 9
$0
$0
$0
$0
-----------$0
Month 10
$0
$0
$0
$0
-----------$0
Month 11
$0
$0
$0
$0
-----------$0
Month 12
$0
$0
$0
$0
-----------$0
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
0.00%
$0
$0
$0
-----------$0
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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Operating Expenses
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Expenses
Expenses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0
$0
$0
$0
-----------$0
0.00%
-----------$0

EBITDA
Interest Expense
Taxes Incurred
$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
Other Income
Total Other Income
$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
Other Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Expenses:
Other Payroll
Consultants
Other Expenses
Other %
Academic Version
Page 77
Appendix
Total Other Expense
Net Other Income
Net Profit
Net Profit/Sales
Include Negative Taxes
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
$0
$0
0.00%
Academic Version
Page 78
Appendix
Table: Profit and Loss 2nd Year
Profit and Loss 2nd Year
Sales
Production Payroll
Cost of Goods Sold
Gross Margin
Gross Margin %
Month 13
$2,850,000
$1,425,000
$467,082
$0
-----------$1,892,082
Month 14
$3,150,000
$1,575,000
$467,082
$0
-----------$2,042,082
Month 15
$3,600,000
$1,800,000
$467,082
$0
-----------$2,267,082
Month 16
$4,200,000
$2,100,000
$467,082
$0
-----------$2,567,082
Month 17
$4,800,000
$2,400,000
$467,082
$0
-----------$2,867,082
Month 18
$5,400,000
$2,700,000
$467,082
$0
-----------$3,167,082
Month 19
$6,150,000
$3,075,000
$467,082
$0
-----------$3,542,082
Month 20
$6,900,000
$3,450,000
$467,082
$0
-----------$3,917,082
Month 21
$7,650,000
$3,825,000
$467,082
$0
-----------$4,292,082
Month 22
$8,400,000
$4,200,000
$467,082
$0
-----------$4,667,082
Month 23
$9,150,000
$4,575,000
$467,082
$0
-----------$5,042,082
Month 24
$9,900,000
$4,950,000
$467,094
$0
-----------$5,417,094
$957,918
33.61%
$1,107,918
35.17%
$1,332,918
37.03%
$1,632,918
38.88%
$1,932,918
40.27%
$2,232,918
41.35%
$2,607,918
42.41%
$2,982,918
43.23%
$3,357,918
43.89%
$3,732,918
44.44%
$4,107,918
44.90%
$4,482,906
45.28%
$3,500
$0
$0
-----------$3,500
0.12%
$3,500
$0
$0
-----------$3,500
0.11%
$3,500
$0
$0
-----------$3,500
0.10%
$3,500
$0
$0
-----------$3,500
0.08%
$3,500
$0
$0
-----------$3,500
0.07%
$4,000
$0
$0
-----------$4,000
0.07%
$4,000
$0
$0
-----------$4,000
0.07%
$4,000
$0
$0
-----------$4,000
0.06%
$4,000
$0
$0
-----------$4,000
0.05%
$4,000
$0
$0
-----------$4,000
0.05%
$4,000
$0
$0
-----------$4,000
0.04%
$4,000
$0
$0
-----------$4,000
0.04%
$33,917
$0
$0
$0
$0
$0
$75,675
$33,917
$0
$0
$0
$0
$0
$75,675
$33,917
$0
$0
$0
$0
$0
$75,675
$34,217
$0
$0
$0
$0
$0
$75,720
$41,217
$0
$0
$0
$0
$0
$76,770
$41,217
$0
$0
$0
$0
$0
$76,845
$41,217
$0
$0
$0
$0
$0
$76,845
$41,217
$0
$0
$0
$0
$0
$76,845
$47,217
$0
$0
$0
$0
$0
$77,745
$47,317
$0
$0
$0
$0
$0
$77,760
$47,317
$0
$0
$0
$0
$0
$77,760
$47,313
$0
$0
$0
$0
$0
$77,761
Operating Expenses
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Expenses
5%
5%
5%
5%
5%
5%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
$109,592
$109,592
$109,592
$109,937
$117,987
$118,062
$118,062
$118,062
$124,962
$125,077
$125,077
$125,074
3.85%
3.48%
3.04%
2.62%
2.46%
2.19%
1.92%
1.71%
1.63%
1.49%
1.37%
1.26%
$0
$0
$0
-----------$0
0.00%
-----------$113,092
$0
$0
$0
-----------$0
0.00%
-----------$113,092
$0
$0
$0
-----------$0
0.00%
-----------$113,092
$0
$0
$0
-----------$0
0.00%
-----------$113,437
$0
$0
$0
-----------$0
0.00%
-----------$121,487
$0
$0
$0
-----------$0
0.00%
-----------$122,062
$0
$0
$0
-----------$0
0.00%
-----------$122,062
$0
$0
$0
-----------$0
0.00%
-----------$122,062
$0
$0
$0
-----------$0
0.00%
-----------$128,962
$0
$0
$0
-----------$0
0.00%
-----------$129,077
$0
$0
$0
-----------$0
0.00%
-----------$129,077
$0
$0
$0
-----------$0
0.00%
-----------$129,074

EBITDA
Interest Expense
Taxes Incurred
$844,826
$844,826
$0
$253,448
$994,826
$994,826
$0
$298,448
$1,219,826
$1,219,826
$0
$365,948
$1,519,481
$1,519,481
$0
$455,844
$1,811,431
$1,811,431
$0
$543,429
$2,110,856
$2,110,856
$0
$633,257
$2,485,856
$2,485,856
$0
$745,757
$2,860,856
$2,860,856
$0
$858,257
$3,228,956
$3,228,956
$0
$968,687
$3,603,841
$3,603,841
$0
$1,081,152
$3,978,841
$3,978,841
$0
$1,193,652
$4,353,832
$4,353,832
$0
$1,306,150
Other Income
Total Other Income
$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
Other Expense
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

Expenses
Other Expenses:
Other Payroll
Consultants
Other Expenses
Other %
Academic Version
Page 79
Appendix
Total Other Expense
Net Other Income
Net Profit
Net Profit/Sales
$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
$591,378
20.75%
$0
$696,378
22.11%
$0
$853,878
23.72%
$0
$1,063,637
25.32%
$0
$1,268,002
26.42%
$0
$1,477,599
27.36%
$0
$1,740,099
28.29%
$0
$2,002,599
29.02%
$0
$2,260,269
29.55%
$0
$2,522,689
30.03%
$0
$2,785,189
30.44%
$0
$3,047,682
30.78%
Academic Version
Page 80
Appendix
Table: Sales Forecast (Actual)
Sales Forecast (Actual)
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
0
0
0
0
0
0
0
0
0
0
0
0
5,000
0
0
5,000
10,000
0
0
10,000
12,000
0
0
12,000
13,000
0
0
13,000
14,000
0
0
14,000
15,000
0
0
15,000
16,000
0
0
16,000
17,000
0
0
17,000
18,000
0
0
18,000
Unit Prices
Row 1
Row 2
Row 3
Month 1
$0.00
$0.00
$0.00
Month 2
$0.00
$0.00
$0.00
Month 3
$0.00
$0.00
$0.00
Month 4
$150.00
$0.00
$0.00
Month 5
$150.00
$0.00
$0.00
Month 6
$150.00
$0.00
$0.00
Month 7
$150.00
$0.00
$0.00
Month 8
$150.00
$0.00
$0.00
Month 9
$150.00
$0.00
$0.00
Month 10
$150.00
$0.00
$0.00
Month 11
$150.00
$0.00
$0.00
Month 12
$150.00
$0.00
$0.00
Sales
Row 1
Row 2
Row 3
Total Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$750,000
$0
$0
$750,000
$1,500,000
$0
$0
$1,500,000
$1,800,000
$0
$0
$1,800,000
$1,950,000
$0
$0
$1,950,000
$2,100,000
$0
$0
$2,100,000
$2,250,000
$0
$0
$2,250,000
$2,400,000
$0
$0
$2,400,000
$2,550,000
$0
$0
$2,550,000
$2,700,000
$0
$0
$2,700,000
Month 1
$0.00
$0.00
$0.00
Month 2
$0.00
$0.00
$0.00
Month 3
$0.00
$0.00
$0.00
Month 4
$75.00
$0.00
$0.00
Month 5
$75.00
$0.00
$0.00
Month 6
$75.00
$0.00
$0.00
Month 7
$75.00
$0.00
$0.00
Month 8
$75.00
$0.00
$0.00
Month 9
$75.00
$0.00
$0.00
Month 10
$75.00
$0.00
$0.00
Month 11
$75.00
$0.00
$0.00
Month 12
$75.00
$0.00
$0.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$375,000
$0
$0
$375,000
$750,000
$0
$0
$750,000
$900,000
$0
$0
$900,000
$975,000
$0
$0
$975,000
$1,050,000
$0
$0
$1,050,000
$1,125,000
$0
$0
$1,125,000
$1,200,000
$0
$0
$1,200,000
$1,275,000
$0
$0
$1,275,000
$1,350,000
$0
$0
$1,350,000
Unit Sales
Row 1
Row 2
Row 3
Total Unit Sales
Direct Unit Costs

Row 1
Row 2
Row 3
Row 1
Row 2
Row 3
Academic Version
Page 81
Appendix
Table: Sales Forecast (Variance)
Sales Forecast (Variance)
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
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
Unit Prices
Row 1
Row 2
Row 3
Month 1
($150.00)
$0.00
$0.00
Month 2
($150.00)
$0.00
$0.00
Month 3
($150.00)
$0.00
$0.00
Month 4
$0.00
$0.00
$0.00
Month 5
$0.00
$0.00
$0.00
Month 6
$0.00
$0.00
$0.00
Month 7
$0.00
$0.00
$0.00
Month 8
$0.00
$0.00
$0.00
Month 9
$0.00
$0.00
$0.00
Month 10
$0.00
$0.00
$0.00
Month 11
$0.00
$0.00
$0.00
Month 12
$0.00
$0.00
$0.00
Sales
Row 1
Row 2
Row 3
Total Sales
$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
Month 1
$75.00
$0.00
$0.00
Month 2
$75.00
$0.00
$0.00
Month 3
$75.00
$0.00
$0.00
Month 4
$0.00
$0.00
$0.00
Month 5
$0.00
$0.00
$0.00
Month 6
$0.00
$0.00
$0.00
Month 7
$0.00
$0.00
$0.00
Month 8
$0.00
$0.00
$0.00
Month 9
$0.00
$0.00
$0.00
Month 10
$0.00
$0.00
$0.00
Month 11
$0.00
$0.00
$0.00
Month 12
$0.00
$0.00
$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
Unit Sales
Row 1
Row 2
Row 3
Total Unit Sales
Direct Unit Costs

Row 1
Row 2
Row 3
Row 1
Row 2
Row 3
Academic Version
Page 82
Appendix
Table: Sales Forecast 2nd Year
Sales Forecast 2nd Year
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
19,000
0
0
19,000
21,000
0
0
21,000
24,000
0
0
24,000
28,000
0
0
28,000
32,000
0
0
32,000
36,000
0
0
36,000
41,000
0
0
41,000
46,000
0
0
46,000
51,000
0
0
51,000
56,000
0
0
56,000
61,000
0
0
61,000
66,000
0
0
66,000
Unit Prices
Row 1
Row 2
Row 3
Month 13
$150.00
$0.00
$0.00
Month 14
$150.00
$0.00
$0.00
Month 15
$150.00
$0.00
$0.00
Month 16
$150.00
$0.00
$0.00
Month 17
$150.00
$0.00
$0.00
Month 18
$150.00
$0.00
$0.00
Month 19
$150.00
$0.00
$0.00
Month 20
$150.00
$0.00
$0.00
Month 21
$150.00
$0.00
$0.00
Month 22
$150.00
$0.00
$0.00
Month 23
$150.00
$0.00
$0.00
Month 24
$150.00
$0.00
$0.00
Sales
Row 1
Row 2
Row 3
Total Sales
$2,850,000
$0
$0
$2,850,000
$3,150,000
$0
$0
$3,150,000
$3,600,000
$0
$0
$3,600,000
$4,200,000
$0
$0
$4,200,000
$4,800,000
$0
$0
$4,800,000
$5,400,000
$0
$0
$5,400,000
$6,150,000
$0
$0
$6,150,000
$6,900,000
$0
$0
$6,900,000
$7,650,000
$0
$0
$7,650,000
$8,400,000
$0
$0
$8,400,000
$9,150,000
$0
$0
$9,150,000
$9,900,000
$0
$0
$9,900,000
Month 13
$75.00
$0.00
$0.00
Month 14
$75.00
$0.00
$0.00
Month 15
$75.00
$0.00
$0.00
Month 16
$75.00
$0.00
$0.00
Month 17
$75.00
$0.00
$0.00
Month 18
$75.00
$0.00
$0.00
Month 19
$75.00
$0.00
$0.00
Month 20
$75.00
$0.00
$0.00
Month 21
$75.00
$0.00
$0.00
Month 22
$75.00
$0.00
$0.00
Month 23
$75.00
$0.00
$0.00
Month 24
$75.00
$0.00
$0.00
$1,425,000
$0
$0
$1,425,000
$1,575,000
$0
$0
$1,575,000
$1,800,000
$0
$0
$1,800,000
$2,100,000
$0
$0
$2,100,000
$2,400,000
$0
$0
$2,400,000
$2,700,000
$0
$0
$2,700,000
$3,075,000
$0
$0
$3,075,000
$3,450,000
$0
$0
$3,450,000
$3,825,000
$0
$0
$3,825,000
$4,200,000
$0
$0
$4,200,000
$4,575,000
$0
$0
$4,575,000
$4,950,000
$0
$0
$4,950,000
Unit Sales
Row 1
Row 2
Row 3
Total Unit Sales
Direct Unit Costs

Row 1
Row 2
Row 3
0%
0%
0%
50%
0%
0%

Row 1
Row 2
Row 3
Academic Version
Page 83
Appendix
Academic Version
Page 84
Appendix
Academic Version
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Appendix
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Page 86
Appendix
Academic Version
Page 87
Appendix
Academic Version
Page 88
Appendix
Academic Version
Page 89
Appendix
Academic Version
Page 90
Appendix
Academic Version
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Appendix
Academic Version
Page 92
Appendix
Academic Version
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Appendix
Academic Version
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Appendix
Academic Version
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Appendix
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Appendix
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Appendix
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Appendix
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Appendix
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Appendix
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Appendix
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Appendix
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Appendix
Academic Version
Page 104

Bev RAGEInternational Business Plan

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Confidential - Proprietary 01/21/2011

Confidential - Proprietary 01/21/2011

Confidential - Proprietary 01/21/2011

Confidential - Proprietary 01/21/2011

Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Web Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Confidential - Proprietary 01/21/2011

Confidential - Proprietary 01/21/2011

Confidential - Proprietary 01/21/2011

Confidential - Proprietary 01/21/2011