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Advanced Linguistic Pontificators- Start up - Standard
Advanced Linguistic Pontificators is a leading seminar and training program company led by
best-selling author Daug Matisim. Advanced Linguistic Pontificators will be targeting medium- and
large-size companies/corporations. Pontificators will quickly reach profitability and achieve
$79,000 of net profit by year two.
Services
Advanced Linguistic Pontificators will provide medium- to large-size companies with training
programs and seminars covering the subjects of advanced reading, stress management, and time
management. The advanced reading course will teach speed reading with increased
comprehension and memory. Stress management will teach techniques to better deal with
stress, and time management will teach methods to become more efficient with the limited
amount of time that we all have. The subjects will be taught in either seminar format or
training program format. The seminar format is a presentation that concentrates on a specific
topic. For the seminars, the audience just observes. A training program is like a seminar except
the attendees participate in the entire process.
Marketing
Advanced Linguistic Pontificators will utilize a three-prong strategy to generate a 15% increase
in clients each year. The first prong is the use of free public seminars. The public seminars are
an excellent method of bringing together a diverse crowd of people that would not have
otherwise heard of Pontificators before. The second prong is the dissemination of printed
material and the promotion of Daug's published books. The last prong is the use of networking
and word of mouth advertising. Daug recognizes the "small universe" of seminars and training
programs and will leverage this element to generate significant business from network contacts.
Management
Daug Matism is the organization and an expert in the field he teaches. He has written two best-
selling topical books, "Read Fast, Comprehend More, Remember Lots, and Ignore the Fluff," and
Efficiency Gains in Time and Stress Management: Why the Snail is Faster than the
Hare." Having published in the area that he teaches gives Daug instant respect and
notoriety. This expert level of knowledge is based on a foundation of a communications degree
as well as a Master in Education. In addition to this incredible C.V., Daug is bubbling with
enthusiasm that is contagious to the various seminar participants.
Advanced Linguistic Pontificators will fully utilize Daug's expert knowledge and notoriety to take
the seminar company to profitability. Pontificators has conservatively forecasted sales of
$181,000 by year two.
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Advanced Linguistic Pontificators- Start up - Standard
Highlights
$200,000
$180,000
$160,000
$140,000
Sales
$120,000
$60,000
$40,000
$20,000
$0
FY 2019 FY 2020 FY 2021
1.1 Objectives
1.2 Mission
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Advanced Linguistic Pontificators- Start up - Standard
Advanced Linguistic Pontificators, based in Portland, OR, offers training programs and seminars
for medium to large corporations. The programs are based on advanced reading, stress
management, and time management. All programs are presented by Daug Matisim, an expert in
those fields. While the office of Advanced Linguistic Pontificators will be located in Daug's
home, the seminars and programs will take place around the country.
Please note that all items that are assets to be used for more than one year will be considered a
long-term asset and will be depreciated using the straight-line method.
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Advanced Linguistic Pontificators- Start up - Standard
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $500
Stationery etc. $300
Brochures $300
Consultants $500
Web development costs $1,000
Rent $0
Research and development $0
Expensed equipment $0
Other $0
Total Start-up Expenses $2,600
Start-up Assets
Cash Required $7,900
Other Current Assets $0
Long-term Assets $11,500
Total Assets $19,400
Start-up
$21,000
$18,000
$15,000
$12,000
$9,000
$6,000
$3,000
$0
Expenses Assets Investment Loans
3.0 Services
Advanced Linguistic Pontificators will provide medium- to large-size companies with training
programs and seminars covering the subjects of advanced reading, stress management, and time
management. The advanced reading course will teach speed reading with increased
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Advanced Linguistic Pontificators- Start up - Standard
comprehension and memory. Stress management will teach techniques to better deal with
stress, and time management will teach methods to become more efficient with the limited
amount of time that we all have.
The subjects will be taught in either seminar format or training program format. The seminar
format is a presentation that concentrates on a specific topic. For the seminars, the audience
just observe. A training program is like a seminar except the attendees participate in the entire
process.
Additionally, Daug will offer seminars to the public. This will not be a targeted segment, but will
be used to increase awareness of Advanced Linguistic Pontificators to drum up future business.
Advanced Linguistic Pontificators' market is Corporate America. The Pontificators will be targeting
medium- and large-size companies who typically have a steady need for seminars and training
programs. Advanced Linguistic Pontificators will reach these customers through public
seminars, word-of-mouth referrals, and through recognition of expertise because of
publications on the subject.
These segments are good customers because companies of these sizes to have earmarked
money for training. These companies recognize the value that they hold in intellectual capital
and the need for future investments to maintain the intellectual equity. This recognition of
value in training makes them ideal customers. Economic downturns do not seem to effect
business from these sources because of the recognition that it is more cost effective to have
training done by a third party then to try to have a solution crafted in-house.
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Advanced Linguistic Pontificators- Start up - Standard
Large corporations
Other
Advanced Linguistic Pontificators has a three part strategy for targeting the two chosen
segments. The first part is through public seminars. A public seminar is a presentation on a
subject that is offered to the public. They are typically held in a library or some other public
building. While public seminars are not big money makers (and sometimes you will lose money),
they bring together a diverse audience to view the seminar. This is quite valuable because within
the diverse crowd are people that work in companies that would would otherwise have never
heard about Advanced Linguistic Pontificators. It becomes a wonderful advertising tool.
The second way the Pontificators will reach their target market is through visibility of printed
material, specifically books. Daug has published two books, one on advanced reading, the
other on stress and time management. Having the speaker published adds invaluable amounts
of credibility and authenticity. These books are typically toward managers so it is not
unusual that a manager will have read the book and then become inspired into having the author
come and provide a training session for the the company.
The last method of reaching the target market is word of mouth. Although the industry of
training programs and seminars is large, those that are good and concentrate on certain areas
form a group of well known service providers. This is quite intuitive. The experts in the field rise
to the top and people that are in the "know" are familiar with these people. Word of mouth
marketing is incredibly efficient once you have established yourself as one of the best.
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Advanced Linguistic Pontificators- Start up - Standard
Seminar production companies that act only as producers of the events, they do not
make the actual presentation. These companies typically have a list of different
presenters that they use.
Independent seminar presenters.
Independent training program presenters.
Both presenter and promoter--just like Advanced Linguistic Pontificators.
The competition is on a national scale. Being local is insignificant in this industry. Companies will
fly in the speaker from wherever they are in the country.
Buying habits are based on word-of-mouth referrals, reputation, topic/skill needed, availability,
etc.
Advanced Linguistic Pontificators will win sales by virtue of their service/product, in essence
the product will speak for itself. Daug Matisim is an expert in the field of advanced reading and
time and stress management. This expertise provides Pontificators a competitive advantage.
Prospective customers will be able to get a sampling of Daug's work from him book, from excerpts
of his writing, or excerpts of his presentations via streaming media from his website.
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Advanced Linguistic Pontificators- Start up - Standard
6.1.1 Strengths
6.1.2 Weaknesses
6.1.3 Opportunities
6.1.4 Threats
Advanced Linguistic Pontificators' sales strategy is relatively straight forward. Let the customer
see part of a presentation in addition to the information contained in Daug's book and the
product/service will sell it self. The customer will see examples of Daug's work through three
avenues.
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Advanced Linguistic Pontificators- Start up - Standard
These examples of Daug's work will speak for themselves. Once the customer is interested
they would only need to contact the office and determine availability, and set up an event.
The first month will be used to set up the office and schedule public seminars for month two.
There will be some sales activity during months three through seven. Starting with month
eight, things will begin to pick up nicely as word gets out that Daug is on the circuit.
Sales Monthly
$16,000
$14,000
$12,000
$10,000
Medium-size companies
$8,000
Large corporations
$6,000
$4,000
$2,000
$0
Page 9
Advanced Linguistic Pontificators- Start up - Standard
Sales by Year
$200,000
$180,000
$160,000
$140,000
$60,000
$40,000
$20,000
$0
FY 2019 FY 2020 FY 2021
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Advanced Linguistic Pontificators- Start up - Standard
6.5 Milestones
1. Business plan completion. This will be done as a road map for the organization. While we
do not need a business plan to raise capital, it will be an indispensable tool for the
ongoing performance and improvement of the company.
2. Set up office.
3. Finish the fifth public seminar.
4. Finish the tenth seminar/training program.
5. Profit exceeding $50,000.
Table: Milestones
Milestones
Milestones
Set up office
Advanced Linguistic Pontificators is owned and operated by Daug Matisim. Daug was a degree
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Advanced Linguistic Pontificators- Start up - Standard
in communications from Reed College. Following college, Daug pursued his Master's in Education
from the University of California, Berkeley. Following graduate school Daug moved back to Oregon
to begin working on his first of two books. The first book, "Read Fast, Comprehend More,
Remember Lots, and Ignore the Fluff" was a top seller in the market of advanced reading for
eleven straight months. This book brought Daug notoriety and was the catalyst for his second
book "Efficiency Gains in Time and Stress Management: Why the Snail is Faster Than the Hare."
After completing the books and spending five months on the road promoting them, Daug
decided he needed a change in his life. He moved down to Costa Rica for two months to develop
a comprehensive seminar and training program offering. Once completed, he began Advanced
Linguistic Pontificators.
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Advanced Linguistic Pontificators- Start up - Standard
Advanced Linguistic Pontificators will be a one man show. Daug will be responsible for arranging
and performing all seminars. Things such as PowerPoint presentations and travel arrangements
will be outsourced and the client will cover the costs of all travel arrangements.
Table: Personnel
Personnel Plan
FY 2019 FY 2020 FY 2021
Daug Matism $24,000 $36,000 $50,000
Other $0 $0 $0
Total People 0 0 0
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Advanced Linguistic Pontificators- Start up - Standard
Assets
Non-cash Assets from Start-up $11,500
Cash Requirements from Start-up $7,900
Additional Cash Raised $0
Cash Balance on Starting Date $7,900
Total Assets $19,400
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Daug $22,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $22,000
The following table details important financial assumptions for Advanced Linguistic Pontificators.
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Advanced Linguistic Pontificators- Start up - Standard
Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $3,211
Break-even Analysis
$2,000
$1,000
$0
($1,000)
($2,000)
($3,000)
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Advanced Linguistic Pontificators- Start up - Standard
Expenses
Payroll $24,000 $36,000 $50,000
Sales and Marketing and Other Expenses $6,800 $7,800 $7,800
Depreciation $3,828 $3,828 $3,828
Leased Equipment $0 $0 $0
Utilities $2,400 $2,400 $2,400
Insurance $1,500 $1,500 $1,500
Rent $0 $0 $0
Payroll Taxes $0 $0 $0
Other $0 $0 $0
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Advanced Linguistic Pontificators- Start up - Standard
Profit Monthly
$10,000
$8,000
$6,000
$4,000
$2,000
$0
($2,000)
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Profit Yearly
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
FY 2019 FY 2020 FY 2021
Page 17
Advanced Linguistic Pontificators- Start up - Standard
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
FY 2019 FY 2020 FY 2021
Page 18
Advanced Linguistic Pontificators- Start up - Standard
The following chart and table will indicate projected cash flow.
Page 19
Advanced Linguistic Pontificators- Start up - Standard
Cash
$70,000
$60,000
$50,000
$20,000
$10,000
$0
Mar May Jul Sep Nov Jan
Apr Jun Aug Oct Dec Feb
Page 20
Advanced Linguistic Pontificators- Start up - Standard
Current Assets
Cash $67,872 $167,869 $264,473
Other Current Assets $0 $0 $0
Total Current Assets $67,872 $167,869 $264,473
Long-term Assets
Long-term Assets $11,500 $11,500 $11,500
Accumulated Depreciation $3,828 $7,656 $11,484
Total Long-term Assets $7,672 $3,844 $16
Total Assets $75,544 $171,713 $264,489
Current Liabilities
Accounts Payable $4,556 $3,622 $3,562
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $4,556 $3,622 $3,562
Long-term Liabilities $0 $0 $0
Total Liabilities $4,556 $3,622 $3,562
Page 21
Advanced Linguistic Pontificators- Start up - Standard
The following table outlines some of the more important ratios from the Professional and
Management Development Training industry. The final column, Industry Profile, details specific
ratios based on the industry as it is classified by the NAICS code, 611430.
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Advanced Linguistic Pontificators- Start up - Standard
Table: Ratios
Ratio Analysis
FY 2019 FY 2020 FY 2021 Industry Profile
Sales Growth n.a. 68.96% 4.97% 9.50%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative Expenses 68.78% 56.30% 62.71% 73.80%
Advertising Expenses 1.68% 0.99% 0.95% 5.00%
Profit Before Interest and Taxes 64.03% 71.53% 65.51% 3.20%
Main Ratios
Current 14.90 46.35 74.25 1.33
Quick 14.90 46.35 74.25 1.11
Total Debt to Total Assets 6.03% 2.11% 1.35% 60.60%
Pre-tax Return on Net Worth 96.63% 77.02% 47.70% 5.50%
Pre-tax Return on Assets 90.80% 75.40% 47.06% 14.00%
Activity Ratios
Accounts Payable Turnover 6.08 12.17 12.17 n.a
Payment Days 34 34 30 n.a
Total Asset Turnover 1.42 1.05 0.72 n.a
Debt Ratios
Debt to Net Worth 0.06 0.02 0.01 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $63,315 $164,247 $260,911 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.71 0.95 1.39 n.a
Current Debt/Total Assets 6% 2% 1% n.a
Acid Test 14.90 46.35 74.25 n.a
Sales/Net Worth 1.51 1.08 0.73 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 23
Appendix
Table: Sales Forecast
Sales Forecast
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Sales
Medium-size companies 0% $0 $0 $2,000 $3,500 $4,000 $4,100 $4,200 $5,200 $6,000 $6,500 $7,025 $7,400
Large corporations 0% $0 $0 $2,000 $4,000 $5,000 $4,500 $4,700 $6,000 $7,000 $7,500 $8,000 $8,500
Total Sales $0 $0 $4,000 $7,500 $9,000 $8,600 $8,900 $11,200 $13,000 $14,000 $15,025 $15,900
Direct Cost of Sales Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Medium-size companies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Large corporations $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Page 1
Appendix
Table: Personnel
Personnel Plan
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Daug Matism 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Page 2
Appendix
Table: Profit and Loss
Gross Margin $0 $0 $4,000 $7,500 $9,000 $8,600 $8,900 $11,200 $13,000 $14,000 $15,025 $15,900
Gross Margin % 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Sales and Marketing and Other $150 $150 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650
Expenses
Depreciation $319 $319 $319 $319 $319 $319 $319 $319 $319 $319 $319 $319
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Insurance $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $2,794 $2,794 $3,294 $3,294 $3,294 $3,294 $3,294 $3,294 $3,294 $3,294 $3,294 $3,294
Profit Before Interest and Taxes ($2,794) ($2,794) $706 $4,206 $5,706 $5,306 $5,606 $7,906 $9,706 $10,706 $11,731 $12,606
EBITDA ($2,475) ($2,475) $1,025 $4,525 $6,025 $5,625 $5,925 $8,225 $10,025 $11,025 $12,050 $12,925
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($838) ($699) $177 $1,052 $1,427 $1,327 $1,402 $1,977 $2,427 $2,677 $2,933 $3,152
Net Profit ($1,956) ($2,096) $530 $3,155 $4,280 $3,980 $4,205 $5,930 $7,280 $8,030 $8,798 $9,455
Net Profit/Sales 0.00% 0.00% 13.24% 42.06% 47.55% 46.27% 47.24% 52.94% 56.00% 57.35% 58.56% 59.46%
Page 3
Appendix
Table: Cash Flow
Expenditures Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Net Cash Flow ($1,637) ($1,425) $2,178 $4,319 $4,961 $4,202 $4,596 $6,804 $8,034 $8,590 $9,365 $9,985
Cash Balance $6,263 $4,838 $7,015 $11,335 $16,296 $20,498 $25,094 $31,898 $39,931 $48,522 $57,887 $67,872
Page 4
Appendix
Table: Balance Sheet
Current Assets
Cash $7,900 $6,263 $4,838 $7,015 $11,335 $16,296 $20,498 $25,094 $31,898 $39,931 $48,522 $57,887 $67,872
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $7,900 $6,263 $4,838 $7,015 $11,335 $16,296 $20,498 $25,094 $31,898 $39,931 $48,522 $57,887 $67,872
Long-term Assets
Long-term Assets $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500
Accumulated Depreciation $0 $319 $638 $957 $1,276 $1,595 $1,914 $2,233 $2,552 $2,871 $3,190 $3,509 $3,828
Total Long-term Assets $11,500 $11,181 $10,862 $10,543 $10,224 $9,905 $9,586 $9,267 $8,948 $8,629 $8,310 $7,991 $7,672
Total Assets $19,400 $17,444 $15,700 $17,558 $21,559 $26,201 $30,084 $34,361 $40,846 $48,560 $56,832 $65,878 $75,544
Liabilities and Capital Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Current Liabilities
Accounts Payable $0 $0 $351 $1,680 $2,526 $2,889 $2,792 $2,864 $3,420 $3,855 $4,097 $4,345 $4,556
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $0 $351 $1,680 $2,526 $2,889 $2,792 $2,864 $3,420 $3,855 $4,097 $4,345 $4,556
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $0 $351 $1,680 $2,526 $2,889 $2,792 $2,864 $3,420 $3,855 $4,097 $4,345 $4,556
Paid-in Capital $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $22,000
Retained Earnings ($2,600) ($2,600) ($2,600) ($2,600) ($2,600) ($2,600) ($2,600) ($2,600) ($2,600) ($2,600) ($2,600) ($2,600) ($2,600)
Earnings $0 ($1,956) ($4,051) ($3,522) ($367) $3,912 $7,892 $12,096 $18,026 $25,305 $33,335 $42,133 $51,587
Total Capital $19,400 $17,444 $15,349 $15,878 $19,033 $23,312 $27,292 $31,496 $37,426 $44,705 $52,735 $61,533 $70,987
Total Liabilities and Capital $19,400 $17,444 $15,700 $17,558 $21,559 $26,201 $30,084 $34,361 $40,846 $48,560 $56,832 $65,878 $75,544
Net Worth $19,400 $17,444 $15,349 $15,878 $19,033 $23,312 $27,292 $31,496 $37,426 $44,705 $52,735 $61,533 $70,987
Page 5