November 2001

Table of Contents
1.

Executive Summary.....................................................................................................1
1.1.
Objectives............................................................................................................1
1.2.
Mission................................................................................................................1
1.3.
Keys to Success...................................................................................................2
2. Company Summary.....................................................................................................2
2.1.
Company Ownership...........................................................................................3
2.2.
Start-up Summary................................................................................................3
3. Services........................................................................................................................4
4. Market Analysis Summary..........................................................................................5
4.1.
Market Segmentation...........................................................................................5
4.2.
Target Market Segment Strategy.........................................................................6
4.3.
Service Business Analysis...................................................................................7
4.3.1.
Competition and Buying Patterns................................................................7
5. Strategy and Implementation Summary......................................................................8
5.1.
Competitive Edge................................................................................................8
5.2.
Marketing Strategy..............................................................................................8
5.3.
Sales Strategy.......................................................................................................9
5.3.1.
Sales Forecast..............................................................................................9
5.4.
Milestones..........................................................................................................10
6. Web Plan Summary....................................................................................................11
6.1.
Website Marketing Strategy...............................................................................11
6.2.
Development Requirements...............................................................................11
7. Management Summary..............................................................................................11
7.1.
Personnel Plan...................................................................................................12
8. Financial Plan............................................................................................................12
8.1.
Important Assumptions......................................................................................12
8.2.
Break-even Analysis..........................................................................................13
8.3.
Projected Profit and Loss...................................................................................13
8.4.
Projected Cash Flow..........................................................................................14
8.5.
Projected Balance Sheet....................................................................................16
8.6.
Business Ratios..................................................................................................17

PRfect Greens

1. Executive Summary
PRfect Greens is a Eugene, Ore. based public relations firm that specializes
in environmental PR. PRfect Greens' areas of specialty are crisis management,
image creation, management of publicity events. All of these activities ensure
the proper management of sensitive environmental concerns by companies who
are not typically seen as environmentally friendly.
Typical clients will include mining companies, natural gas extraction companies,
and lumber companies. These clients seek a professional firm to assist in their
perceived public environmental image. PRfect Greens will rapidly gain market
share through the use of specialized, innovative customer attention.
By leveraging it's competitive advantages, PRfect Greens will quickly grow it's
customer base. Having a specialized skill set with experience in environmental
PR work will provide PRfect Greens with valuable insight that other PR firms are
unable to offer. Additionally, PRfect Greens prides themselves on offering
unmatched flexibility which will allow PRfect Greens to seamlessly meet any need
a client may have.
PRfect Greens is a partnership of two industry professionals with years of
experience and insight. PRfect Greens will leverage their skills, experience, and
innovative approach to reach profitability by month 10, generating revenues
of $245,000 by year three.

1.1.

Objectives
The objectives for the first three years include:
1. To create a start-up company whose primary goal is to exceed
customer's expectations.
2. To increase the number of clients served by at least 20% per year
through superior performance and referrals.
3. To develop a sustainable business that is able to survive off its own
cash flow.

1.2.

Mission
PRfect Greens' mission is to provide the customer the highest quality of
environmental PR consultancy. We exist to attract and maintain customers.
When we adhere to this maxim, everything else will fall into place. Our
services will exceed the expectations of our customers.

PRfect Greens
1.3.

Keys to Success
The keys to success are:

Attention to detail.
Thinking outside the box.

Professionalism.

Results.

Highlights

2. Company Summary
PRfect Greens is an environmental public relations consultancy firm that
specializes in working with companies that are typically perceived by the public as
anti-environmental.
PRfect Greens is a partnership of two industry PR veterans, Birk Grunola and
Arbor Hugger.
PRfect Greens will provide PR services to local, as well as regional firms, that are
in need of immediate reactionary help, as well as long-term management.

PRfect Greens
2.1.

Company Ownership
PRfect Greens is a private partnership owned equally by Birk Grunola and
Arbor Hugger.

2.2.

Start-up Summary
The following equipment will be needed:

Two desks and chairs.

Two file cabinets.

Two computer systems including one license of QuickBooks Pro, two

licenses of Microsoft Office, a CD-RW, printer, digital camera and a
DSL connection.

Burrelle's media directory.

Subscription to Lexis Nexis researching tools.

Website development.

Please note that the following items which are considered assets to be used
for more than a year will be labeled long-term assets and will be depreciated
using G.A.A.P. approved straight-line depreciation method.

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Website development
Lexis Nexus subscription
Total Start-up Expenses

$1,000
$50
$100
$1,000
$300
$2,450

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$59,850
$0
$3,700
$63,550

Total Requirements

$66,000

PRfect Greens

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$2,450
$63,550
$66,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$3,700
$59,850
$0
$59,850
$63,550

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities
Total Liabilities

$0
$0
$0
$0
$0

Capital
Planned Investment
Arbor
Birk
Additional Investment Requirement
Total Planned Investment

$33,000
$33,000
$0
$66,000

Loss at Start-up (Start-up Expenses)

Total Capital

($2,450)
$63,550

Total Capital and Liabilities

$63,550

Total Funding

$66,000

3. Services
PRfect Greens offers a wide range of environmental PR services. These services
will typically be used by gas companies, mining companies, and lumber

PRfect Greens
companies who are looking to improve their environmental image or manage a
crisis. The main services offered are:

Crisis management. This is a reactionary/proactive service that helps

the customer manage a crisis or situation that if left unattended could
create significant amounts of bad press and tarnish the public image of
companies that already have sensitive environmental images by virtue of
the fact that they operate in sensitive environmental areas.

Image creation. This service designs and implements a certain public

image, typically an image that is pro-environment for a company that is in
an anti-environment industry.

Management of publicity events. These services develop and manage

client sponsored publicity events which are designed to strengthen the
clients perceived environmental commitment.

4. Market Analysis Summary

PRfect Greens will primarily serve three different target segments within the
environmental PR space: gas companies, mining companies, and lumber
companies. These different industries will be targeted because they represent a
large amount of business activity in this region and because they have
struggled in the past to maintain an ideal/reasonable public image.
These segments will be targeted through an advertising campaign and
networking activities tailored to each industry customer.

4.1.

Market Segmentation
PRfect Greens has three distinct groups of customers:

Gas companies. These companies are performing subterranean

drilling in search of natural gas reserves. They might utilize PRfect
Greens to help strengthen their image as an environmentally friendly
provider of energy (the burning of natural gas releases far fewer
pollutants, specifically CO2 than other fossil fuels). Additionally they
may need PRfect Greens for crisis management services or
promotional activities.

Mining companies. The mining companies have a negative public

environmental image due to the general destruction of the land that
occurs when evaluating the mineral deposits below the land as well as
the release of tailing into water sources and the general destruction of
the land that occurs during mining operations. A perfect example of a
company that could have used PRfect Greens' service was the Kinross
Mining Company, a company that was mining copper in Willamette

PRfect Greens
National Forest. Kinross had to endure a public relations fiasco when
multiple environmental groups were bringing legal claims against
Kinross due to the release of effluents into the Santiam River, the
main source for the Santiam Watershed, the source of water for
Salem and other nearby cities.

Lumber companies. There are a lot of lumber industry jobs in

Oregon. Both Georgia Pacific and Willamette Industry are two
multinational corporations that 1) do a lot of logging as well as
processing 2) and have struggled to maintain a environmentally
friendly public perception.

Market Analysis
2001
Potential Customers
Gas companies
Mining companies
Lumbar companies
Total

Growt
h
8%
9%
7%
7.80%

15
44
38
97

2002
16
48
41
105

Market Analysis (Pie)

2003
17
52
44
113

2004
18
57
47
122

2005
19
62
50
131

CAG
R
6.09%
8.95%
7.10%
7.80%

PRfect Greens
4.2.

Target Market Segment Strategy

The selected customer segments will be targeted in a specific advertising and
networking campaign.

4.3.

Advertising. This campaign will target each of the prospective

customers. The advertisements will generally be placed within the
appropriate industry trade journal. The advertisements will be used
to communicate the message that PRfect Greens is a specialized
environmental PR firm that can work hand and hand with the
company, providing them with both proactive, as well as reactive PR
services. The advertisements will detail the different services PRfect
Greens provides as well as the experience the founders have in this
niche.

Networking. Since both of the founders have a long history in this

market space, they have a long list of contacts that they have
developed over the years. PRfect Greens will leverage these contacts
to raise visibility regarding PRfect Greens and establish relationships
so PRfect Greens can began to serve them. Because this market
niche is fairly small and specific, people in the space tend to know
each other and a lot of business is transacted among acquaintances.
This nature of the industry will make networking activities all the
more effective.

Service Business Analysis

The PR industry in Eugene has many different competitors, however few have
the specialized skills for environmental PR work. The competitors generally
take the form of general communication firms, small local PR firms, and large
national firms.
PRfect Greens will rapidly gain market share in their specific space by
leveraging their competitive edges. These edges consist of a specialized skill
set honed for the demands of environmental PR and the high degree of
flexibility. As a small specialized firm, PRfect Greens is able to address any
need generated by a client.

4.3.1. Competition and Buying Patterns

Competition takes many forms:

General communications firms. These firms practice a wide

range of communication services from press releases, to
promotional materials, to corporate imaging. Some of the
general communication firms are large and have dedicated
departments for different types of communications, others have
generalists that do everything.

PRfect Greens

Small, local PR firms. These companies are small, typically

one principal, and their clients are from the surrounding area.

Large national firms. These firms are quite large and they
serve national clients. The clients are usually very large
companies and these national firms travel to wherever to
support the account.

Buying patterns for companies typically take the form of RFP's for the
larger companies, and informal referrals/networking for the smaller
clients.

5. Strategy and Implementation Summary

PRfect Greens' marketing and sales strategies will be based on developing
visibility for PRfect Greens and communicating the message that PRfect Greens is
able to provide an unmatched service offering due to the special skill set and
flexibility in serving the client.

5.1.

Competitive Edge
PRfect Greens has two complementary competitive edges:

5.2.

Specialized skill set. While this will be detailed further in the

management section, this competitive edge allows PRfect Greens to
provide keen insight into the customer's industry and how that applies
to public relations.

Flexibility. As a small firm, PRfect Greens is able to meet the

customer's special needs by offering a very flexible service. This
flexibility allows PRfect Greens to work hand in hand with company
and the community to support their customer. While many
competitors will have an initial interview with the customer on their
site, most of the work is completed on the PR firms terms, typically at
the home office. PRfect Greens' flexibility allows them to work with
the client in any capacity required to serve the customer in the most
effective way. Often this means working closely with the customer
and the various hierarchical levels within the company. This will
sometimes mean extended time spent at the company's work site, a
service that PRfect Greens is more than happy to offer.

Marketing Strategy
As stated before in the target market segment strategy, PRfect Greens will
use a combination of targeted advertising and networking to generate

PRfect Greens
visibility and communicate PRfect Greens' message that they are the premier
environmental PR firm in the area that possesses the ability to offer
unprecedented specialized services and flexibility to help the customer
manage their public image and deal with any unfortunate crisis.
The advertising will be done in specific industry journals. These will be
chosen because the journal readership is a very specific demographic that
PRfect Greens is trying to reach.
The networking activities will be quite effective in leveraging the already
existing relationships that Birk and Arbor have established through years
working in the different industries.

5.3.

Sales Strategy
The sale strategy will be based on turning prospective customers into longterm clients. The primary way this will be accomplished is through a dog and
pony show performed for the decision maker. This presentation will outline
all of the different services and value that PRfect Greens offers: their rich
specialized experience and very personalized attention that their clients
receive. They will emphasize the smallness of PRfect Greens that allows it to
serve every client with individual attention that one would expect from an inhouse staff.
The dog and pony show will also highlight PRfect Greens' portfolio of past
clients served and the creative "out of the box" thinking that prevails at
PRfect Greens. The portfolio itself will be quite creative, not just a standard
display of past projects, but a representation in itself of PRfect Greens'
creativity and competence.

5.3.1. Sales Forecast

The first month of operation will not have any sales activity. The office
will be set up and the marketing campaign will be devised. The second
month will see a small amount of activity, primarily small projects of
limited duration.
By month three and four, visibility of PRfect Greens will have begun to
take root and there will be an increasing number of inquiries that will
be turned into projects.
Sales will steadily ramp from month four on with profitability being
reached by month 10 and sales reaching $220,000 by the end of year
two.

PRfect Greens
Sales Forecast
Sales
Crisis management
Image management
Event management
Total Sales
Direct Cost of Sales
Crisis management
Image management
Event management
Subtotal Direct Cost of Sales

2001

2002

2003

$18,700
$46,069
$29,945
$94,714

$48,000
$104,556
$67,961
$220,517

$55,000
$115,676
$75,189
$245,865

2001
$935
$2,303
$1,497
$4,736

2002
$2,400
$5,228
$3,398
$11,026

2003
$2,750
$5,784
$3,759
$12,293

Sales Monthly

5.4.

Milestones
PRfect Greens will have several milestones early on:
1. Business plan completion. While business plans are typically created
on requirement to secure capital, PRfect Greens will use the plan as a
way to develop a strategic focus as well as a gauge to track
adherence to the plan at multiple intervals in the coming quarters and
years.

PRfect Greens
2. Office set up.
3. Establishment of the first major project.
4. Near full service capacity.

Milestones
Milestone

Start Date

End Date

Budget

Manager

Business plan completion

Office set up

1/1/2001
1/1/2001

2/1/2001
2/1/2001

$0
$0

Arbor
Birk

Establishment of the first

major project
Near full service capacity

1/1/2001

7/1/2001

$0

1/1/2001

8/30/2002

$0

Arbor &
Birk
Everyone

Totals

Departmen
t
Marketing
Departmen
t
Departmen
t
Departmen
t

$0

6. Web Plan Summary

The website will be used as a resource for developing visibility, disseminating
information such as a portfolio of past projects and case studies, as well as a way
that prospective customers can contact PRfect Greens.

6.1.

Website Marketing Strategy

The marketing of the website will incorporate the following actions:

Search engine submission. For all prospective customers that are

unaware of PRfect Greens and are using the Internet to research the
possible service solutions to their problem, PRfect Greens will
professionally submit their site individually to all of the popular search
engines so that PRfect Greens' site appears at the top of the search
list.

Advertising of the site through the various written materials that

PRfect Greens will disseminate to prospective customers.

PRfect Greens
6.2.

Development Requirements
The website development will be the product of a University of Oregon
computer science graduate student. The utilization of the graduate student
will be used because of their technical competence as well as their belowmarket rates that they typically charge as a student.

7. Management Summary
Birk Grunola
Birk received a BS in communications and environmental science from the
University of Oregon. Beyond school, Birk went to work for the Weyerhauser
corporation in their marketing department. After six years, Birk was promoted to
the head of the in-house staff for external communications. It was his
responsibility to shape the public's perception of Weyerhauser as an
environmental corporate citizen. After five years at this position Birk began
looking for an opportunity that would give him more flexibility and autonomy.
Arbor Hugger
Arbor received a biology degree from American University. After college, Arbor
went to work for the Environmental Protection Industry (EPA) in Washington D.C.
Arbor had varying degrees of responsibility at the EPA, ultimately working as a
manager for external communications. After 10 years at the EPA, Arbor was
seeking a more progressive, less bureaucratic organization to serve. Arbor was
able to leverage his skills at the EPA and parlay it into a position as the PR
director for the National Gas Exploration Association. At this position, Arbor was
responsible for all of the external communications of the Association, crisis
management, and management of publicity events. After three years Arbor was
searching for a more flexible opportunity. Through the years, Arbor remained in
contact with his best friend from high school, Birk. On a specific vacation retreat
the two took together, they became cognizant of the fact that both were
somewhat unhappy at their current jobs and were looking for new opportunities.
This revelation lead to a year of dialogue between the two at which point they
both decided to leave their current jobs and start their own firm.

7.1.

Personnel Plan
Birk and Arbor are the two principals of the firm. They will hire a part-time
administrative assistant by month four.

PRfect Greens
Personnel Plan
Arbor
Birk
Administrative assistant
Total People
Total Payroll

2001
$48,000
$48,000
$8,640
3

2002
$60,000
$60,000
$11,520
3

2003
$70,000
$70,000
$15,000
3

$104,640

$131,520

$155,000

8. Financial Plan
The following sections will outline important financial information.

8.1.

Important Assumptions
The following table details important financial assumptions.

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

8.2.

2001
1
10.00%
10.00%
30.00%
0

2002
2
10.00%
10.00%
30.00%
0

2003
3
10.00%
10.00%
30.00%
0

Break-even Analysis
The Break-even Analysis indicates that $12,016 will be needed in monthly
revenue to reach the break-even point.

Break-even Analysis
Monthly Revenue Break-even

$11,725

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

5%
$11,139

PRfect Greens

Break-even Analysis

8.3.

Projected Profit and Loss

The following table will indicate projected profit and loss.

PRfect Greens
Pro Forma Profit and Loss
2001
$94,714
$4,736
$0
-----------$4,736

2002
$220,517
$11,026
$0
-----------$11,026

2003
$245,865
$12,293
$0
-----------$12,293

$89,978
95.00%

$209,492
95.00%

$233,572
95.00%

$104,640
$4,200

$131,520
$4,200

$155,000
$4,200

Total Operating Expenses

$732
$0
$1,200
$1,200
$6,000
$15,696
$0
-----------$133,668

$732
$0
$1,200
$1,200
$6,000
$19,728
$0
-----------$164,580

$732
$0
$1,200
$1,200
$6,000
$23,250
$0
-----------$191,582

Profit Before Interest and Taxes

Interest Expense
Taxes Incurred

($43,690)
$0
$0

$44,912
$0
$13,473

$41,990
$0
$12,597

Other Income
Interest Income
Extraordinary Items
Total Other Income

$0
$0
$0

$0
$0
$0

$0
$0
$0

Other Expense
Account Name
Extraordinary Items
Total Other Expense

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
($43,690)
-46.13%

$0
$31,438
14.26%

$0
$29,393
11.95%

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

Net Other Income

Net Profit
Net Profit/Sales

PRfect Greens
8.4.

Projected Cash Flow

The following chart and table will indicate projected cash flow.

PRfect Greens
Pro Forma Cash Flow
2001

2002

2003

$33,150
$43,071
$76,221

$77,181
$118,773
$195,954

$86,053
$154,863
$240,916

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0
$0
$2,000
$78,221

$0
$0
$0
$0
$195,954

$0
$0
$0
$0
$240,916

2001

2002

2003

$104,640
$29,966
$134,606

$131,520
$54,619
$186,139

$155,000
$60,377
$215,377

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
Non Operating (Other) Income
Sales Tax, VAT, HST/GST
Received
New Current Borrowing
New Other Liabilities (interestfree)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash spending
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

$0

$0

$0

$0
$0
$0
$134,606

$0
$0
$0
$186,139

$0
$0
$0
$215,377

Net Cash Flow

($56,385)

$9,815

$25,539

PRfect Greens
Cash Balance

$3,465

$13,279

Cash

8.5.

Projected Balance Sheet

The following table will indicate the projected balance sheet.

$38,818

PRfect Greens
Pro Forma Balance Sheet
2001

2002

2003

Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets

$3,465
$18,493
$0
$21,958

$13,279
$43,057
$0
$56,336

$38,818
$48,006
$0
$86,824

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$3,700
$732
$2,968
$24,926

$3,700
$1,464
$2,236
$58,572

$3,700
$2,196
$1,504
$88,328

2001

2002

2003

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$3,066
$0
$0
$3,066

$5,274
$0
$0
$5,274

$5,637
$0
$0
$5,637

Long-term Liabilities
Total Liabilities

$0
$3,066

$0
$5,274

$0
$5,637

$68,000
($2,450)
($43,690)
$21,860
$24,926

$68,000
($46,140)
$31,438
$53,298
$58,572

$68,000
($14,702)
$29,393
$82,691
$88,328

$21,860

$53,298

$82,691

Assets

Liabilities and Capital

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

8.6.

Business Ratios
Business ratios for the years of this plan are shown below. Industry profile
ratios based on the Standard Industrial Classification (SIC) code 8743, Public
Relations Service, are shown for comparison.

PRfect Greens
Ratio Analysis
2001

2002

2003

0.00%

132.82%

11.49%

Industry
Profile
8.60%

Percent of Total Assets

Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

0.00%
88.09%
11.91%
100.00%

0.00%
96.18%
3.82%
100.00%

0.00%
98.30%
1.70%
100.00%

44.30%
72.50%
27.50%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

12.30%
0.00%
12.30%
87.70%

9.00%
0.00%
9.00%
91.00%

6.38%
0.00%
6.38%
93.62%

45.00%
17.00%
62.00%
38.00%

100.00%
95.00%
141.13%

100.00%
95.00%
80.74%

100.00%
95.00%
83.05%

100.00%
0.00%
79.40%

2.53%
-46.13%

1.09%
20.37%

0.98%
17.08%

1.20%
2.40%

Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

7.16
7.16
12.30%
-199.86%
-175.28%

10.68
10.68
9.00%
84.26%
76.68%

15.40
15.40
6.38%
50.78%
47.54%

1.71
1.36
62.00%
5.10%
13.50%

Additional Ratios
Net Profit Margin
Return on Equity

2001
-46.13%
-199.86%

2002
14.26%
58.99%

2003
11.95%
35.55%

n.a
n.a

10.78
3.80

10.78
3.76

10.78
2.78

n.a
n.a

0.14
1.00

0.10
1.00

0.07
1.00

n.a
n.a

$18,892

$51,062

$81,187

n.a

Sales Growth

Percent of Sales
Sales
Gross Margin
Selling, General &
Administrative Expenses
Advertising Expenses
Profit Before Interest and
Taxes

Activity Ratios
Accounts Payable Turnover
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital

PRfect Greens
Interest Coverage

0.00

0.00

0.00

n.a

Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

0.26
12%
1.13
4.33
0.00

0.27
9%
2.52
4.14
0.00

0.36
6%
6.89
2.97
0.00

n.a
n.a
n.a
n.a
n.a

Appendix
Sales Forecast
Sales
Crisis management
Image management

0
%
0
%
0
%

Ja
n

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$0

$0

$0

$0

$0

$1,1
00
$0 $715

$2,8
78
$1,8
71
$4,7
49

$3,3
45
$2,1
74
$5,5
19

$3,0
00
$3,8
78
$2,5
21
$9,3
99

$1,5
00
$4,2
23
$2,7
45
$8,4
68

$1,0
00
$4,5
01
$2,9
26
$8,4
27

$3,30
0
$5,11
2
$3,32
3
$11,7
35

$3,50
0
$5,50
0
$3,57
5
$12,5
75

$2,90
0
$6,33
4
$4,11
7
$13,3
51

$3,50
0
$7,30
0
$4,74
5
$15,5
45

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$0
$0
$0
$0 $150 $75 $50
$55 $95 $144 $167 $194 $211 $225
$36 $62 $94 $109 $126 $137 $146
$91 $157 $237 $276 $470 $423 $421

$165
$256
$166
$587

$175
$275
$179
$629

$145
$317
$206
$668

$175
$365
$237
$777

Total Sales

$0

$1,8
15

$1,8
98
$1,2
34
$3,1
32

Direct Cost of Sales

Ja
n
$0
$0
$0
$0

Feb

Mar

Event management

Crisis management
Image management
Event management
Subtotal Direct Cost of Sales

$0

Appendix
Personnel Plan
Arbor

0%

Birk

0%

Administrative assistant
Total People

0%

Total Payroll

Jan
$4,0
00
$4,0
00
$0
2

Feb
$4,0
00
$4,0
00
$0
2

Mar Apr May

Jun
Jul Aug Sep Oct Nov
$4,0 $4,0 $4,0 $4,0 $4,0 $4,0 $4,0 $4,0 $4,0
00
00
00
00
00
00
00
00
00
$4,0 $4,0 $4,0 $4,0 $4,0 $4,0 $4,0 $4,0 $4,0
00
00
00
00
00
00
00
00
00
$0 $960 $960 $960 $960 $960 $960 $960 $960
2
3
3
3
3
3
3
3
3

Dec
$4,0
00
$4,0
00
$960
3

$8,0
00

$8,0
00

$8,0
00

$8,9
60

$8,9
60

$8,9
60

$8,9
60

$8,9
60

$8,9
60

$8,9
60

$8,9
60

$8,9
60

Appendix
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Jan
Feb Mar
Apr May
Jun
Jul Aug
Sep
Oct Nov
Dec
1
2
3
4
5
6
7
8
9
10
11
12
10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
%
%
%
%
%
%
%
%
%
%
%
%
10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
%
%
%
%
%
%
%
%
%
%
%
%
30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00
%
%
%
%
%
%
%
%
%
%
%
%
0
0
0
0
0
0
0
0
0
0
0
0

Appendix
Pro Forma Profit and Loss
Jan
$0

Sales
Direct Cost of Sales
Other Production
Expenses
Total Cost of Sales
Gross Margin

$0
$0

Feb
$1,81
5
$91
$0

Mar
$3,13
2
$157
$0

Apr
$4,74
9
$237
$0

May
$5,51
9
$276
$0

Jun
$9,39
9
$470
$0

Jul
$8,46
8
$423
$0

Aug
$8,42
7
$421
$0

Nov
$13,3
51
$668
$0

Dec
$15,5
45
$777
$0

----------$0

----------$91

----------$157

----------$237

----------$276

----------$470

----------$423

------- ------- ------- ----------------------$421 $587 $629 $668

----------$777

$0

$1,72
4
95.00
%

$2,97
5
95.00
%

$4,51
1
95.00
%

$5,24
3
95.00
%

$8,92
9
95.00
%

$8,04
5
95.00
%

$8,00
5
95.00
%

$11,1
48
95.00
%

$11,9
46
95.00
%

$12,6
84
95.00
%

$14,7
68
95.00
%

$8,00
0
$350

$8,00
0
$350

$8,96
0
$350

$8,96
0
$350

$8,96
0
$350

$8,96
0
$350

$8,96
0
$350

$8,96
0
$350

$8,96
0
$350

$8,96
0
$350

$8,96
0
$350

$61
$0
$100
$100
$500
$1,20
0
$0
----------$10,3
11

$61
$0
$100
$100
$500
$1,20
0
$0
----------$10,3
11

$61
$0
$100
$100
$500
$1,34
4
$0
----------$11,4
15

$61
$0
$100
$100
$500
$1,34
4
$0
----------$11,4
15

$61
$0
$100
$100
$500
$1,34
4
$0
----------$11,4
15

$61
$0
$100
$100
$500
$1,34
4
$0
----------$11,4
15

$61
$61
$61
$61
$0
$0
$0
$0
$100 $100 $100 $100
$100 $100 $100 $100
$500 $500 $500 $500
$1,34 $1,34 $1,34 $1,34
4
4
4
4
$0
$0
$0
$0
------- ------- ------- ----------------------$11,4 $11,4 $11,4 $11,4
15
15
15
15

$61
$0
$100
$100
$500
$1,34
4
$0
----------$11,4
15

Gross Margin %

0.00%

Expenses
Payroll

$8,000

Sales and Marketing

and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating
Expenses

$350

15
%

$61
$0
$100
$100
$500
$1,200
$0
----------$10,31
1

Sep
$11,7
35
$587
$0

Oct
$12,5
75
$629
$0

Appendix
Profit Before Interest
and Taxes
Interest Expense
Taxes Incurred

($10,3 ($8,58 ($7,33 ($6,90 ($6,17

11)
7)
6)
4)
2)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

($2,4
86)
$0
$0

($3,3
70)
$0
$0

($3,4 ($267
10)
)
$0
$0
$0
$0

$531
$0
$0

$1,26
9
$0
$0

$3,35
3
$0
$0

Other Income
Interest Income
Extraordinary Items
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
Account Name
Extraordinary Items
Total Other Expense

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0
$0
$0
($10,3 ($8,58 ($7,33 ($6,90 ($6,17
11)
7)
6)
4)
2)
0.00%
473.1 234.2 145.3 111.8
0%
5%
8%
2%

$0
($2,4
86)
26.45
%

$0
($3,3
70)
39.80
%

$0
$0
($3,4 ($267
10)
)
40.46
2.27
%
%

$0
$531

$0
$1,26
9
9.50
%

$0
$3,35
3
21.57
%

Net Other Income

Net Profit
Net Profit/Sales

4.22
%

Appendix
Pro Forma Cash Flow
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cash from Operations

Cash Sales

$0

$635

Cash from Receivables

$0

$0

$1,09
6
$39

Subtotal Cash from

Operations

$0

$635

$1,13
5

$1,66
2
$1,20
8
$2,87
0

$1,93
2
$2,07
1
$4,00
2

$3,29
0
$3,10
3
$6,39
3

$2,96
4
$3,67
2
$6,63
5

$2,94
9
$6,08
9
$9,03
8

$4,10
7
$5,50
3
$9,61
0

$4,40
1
$5,54
9
$9,95
0

$4,67
3
$7,64
6
$12,3
19

$5,44
1
$8,19
1
$13,6
31

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$635

$1,13
5

$2,87
0

$4,00
2

$6,39
3

$6,63
5

$9,03
8

$9,61
0

$2,00
0
$11,9
50

$12,3
19

$13,6
31

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cash Received

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

0.00
%

Appendix
Expenditures from
Operations
Cash spending
Bill Payments

$8,00
0
$75

Subtotal Spent on
Operations

$8,07
5

$8,00
0
$2,25
3
$10,2
53

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$8,07
5

$0
$10,2
53

$0
$10,3
43

$0
$11,3
74

$0
$11,5
93

$0
$11,6
36

$0
$11,8
22

$0
$11,7
77

$0
$11,7
81

$0
$11,9
42

$0
$11,9
84

$0
$12,0
25

($8,0
75)
$51,7
75

($9,6
18)
$42,1
57

($9,2
08)
$32,9
50

($8,5
04)
$24,4
46

($7,5
90)
$16,8
56

($5,2
44)
$11,6
12

($5,1
87)
$6,42
5

($2,7
39)
$3,68
6

($2,1
70)
$1,51
6

$8

$335

$1,52
4

$1,85
8

$1,60
6
$3,46
5

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

$8,00
0
$2,34
3
$10,3
43

$8,96
0
$2,41
4
$11,3
74

$8,96
0
$2,63
3
$11,5
93

$8,96
0
$2,67
6
$11,6
36

$8,96
0
$2,86
2
$11,8
22

$8,96
0
$2,81
7
$11,7
77

$8,96
0
$2,82
1
$11,7
81

$8,96
0
$2,98
2
$11,9
42

$8,96
0
$3,02
4
$11,9
84

$8,96
0
$3,06
5
$12,0
25

Appendix
Pro Forma Balance Sheet
Assets

Current
Assets
Cash
Accounts
Receivable
Other
Current
Assets
Total
Current
Assets
Long-term
Assets
Long-term
Assets
Accumulate
d
Depreciatio
n
Total Longterm Assets
Total Assets
Liabilities

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$59,8
50
$0

$51,77
5
$0

$42,15
7
$1,180

$32,95
0
$3,176

$24,44
6
$5,054

$16,85
6
$6,571

$11,61
2
$9,577

$6,425

$3,686

$1,516

$1,524

$1,858

$3,465

$0

$0

$0

$0

$0

$0

$0

$11,41
0
$0

$10,79
8
$0

$12,92
2
$0

$15,54
7
$0

$16,58
0
$0

$18,49
3
$0

$59,8
50

$51,77
5

$43,33
7

$36,12
6

$29,50
0

$23,42
7

$21,18
9

$17,83
5

$14,48
4

$14,43
8

$17,07
1

$18,43
8

$21,95
8

$3,70
0
$0

$3,700

$3,700

$3,700

$3,700

$3,700

$3,700

$3,700

$3,700

$3,700

$3,700

$3,700

$3,700

$61

$122

$183

$244

$305

$366

$427

$488

$549

$610

$671

$732

$3,70
0
$63,5
50

$3,639

$3,578

$3,517

$3,456

$3,395

$3,334

$3,273

$3,212

$3,151

$3,090

$3,029

$2,968

$55,41
4

$46,91
5

$39,64
3

$32,95
6

$26,82
2

$24,52
3

$21,10
8

$17,69
6

$17,58
9

$20,16
1

$21,46
7

$24,92
6

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Startin
g
Balan
ces

Appendix
and Capital
Current
Liabilities
Accounts
Payable
Current
Borrowing
Other
Current
Liabilities
Subtotal
Current
Liabilities
Long-term
Liabilities
Total
Liabilities
Paid-in
Capital
Retained
Earnings
Earnings

$0

$2,175

$2,263

$2,326

$2,544

$2,581

$2,768

$2,723

$2,721

$2,881

$2,922

$2,960

$3,066

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,175

$2,263

$2,326

$2,544

$2,581

$2,768

$2,723

$2,721

$2,881

$2,922

$2,960

$3,066

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,175

$2,263

$2,326

$2,544

$2,581

$2,768

$2,723

$2,721

$2,881

$2,922

$2,960

$3,066

$66,0
00
($2,45
0)
$0

$66,00
0
($2,45
0)
($18,8
98)
$44,65
2
$46,91
5

$66,00
0
($2,45
0)
($26,2
34)
$37,31
6
$39,64
3

$66,00
0
($2,45
0)
($33,1
37)
$30,41
3
$32,95
6

$66,00
0
($2,45
0)
($39,3
09)
$24,24
1
$26,82
2

$66,00
0
($2,45
0)
($41,7
95)
$21,75
5
$24,52
3

$66,00
0
($2,45
0)
($45,1
66)
$18,38
4
$21,10
8

$66,00
0
($2,45
0)
($48,5
75)
$14,97
5
$17,69
6

$66,00
0
($2,45
0)
($48,8
42)
$14,70
8
$17,58
9

$68,00
0
($2,45
0)
($48,3
11)
$17,23
9
$20,16
1

$68,00
0
($2,45
0)
($47,0
43)
$18,50
7
$21,46
7

$68,00
0
($2,45
0)
($43,6
90)
$21,86
0
$24,92
6

$44,65
2

$37,31
6

$30,41
3

$24,24
1

$21,75
5

$18,38
4

$14,97
5

$14,70
8

$17,23
9

$18,50
7

$21,86
0

Total
Capital
Total
Liabilities
and Capital

$63,5
50
$63,5
50

$66,00
0
($2,45
0)
($10,3
11)
$53,23
9
$55,41
4

Net Worth

$63,5
50

$53,23
9

Appendix