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 Table of Contents

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

Chart: Highlights ......................................................................................................................2
1.1 Objectives ...................................................................................................................................2
1.2 Mission........................................................................................................................................2
1.3 Keys to Success ........................................................................................................................3
2.0 Company Summary.............................................................................................................................3
2.1 Company History........................................................................................................................3
Chart: Past Performance .......................................................................................................4
Table: Past Performance .......................................................................................................5
2.2 Company Ownership .................................................................................................................5
3.0 Services................................................................................................................................................5
4.0 Market Analysis Summary..................................................................................................................6
4.1 Market Segmentation ................................................................................................................6
Table: Market Analysis ...........................................................................................................7
Chart: Market Analysis (Pie) ..................................................................................................7
4.2 Target Market Segment Strategy.............................................................................................7
4.3 Service Business Analysis........................................................................................................8
4.3.1 Competition and Buying Patterns................................................................................8
5.0 Strategy and Implementation Summary ............................................................................................8
5.1 Competitive Edge ......................................................................................................................9
5.2 Marketing Strategy.....................................................................................................................9
5.3 Sales Strategy..........................................................................................................................10
5.3.1 Sales Forecast ............................................................................................................10
Table: Sales Forecast .................................................................................................11
Chart: Sales Monthly....................................................................................................11
Chart: Sales by Year ...................................................................................................12
5.4 Milestones ................................................................................................................................12
Table: Milestones..................................................................................................................13
Chart: Milestones ..................................................................................................................13
6.0 Management Summary ....................................................................................................................13
6.1 Personnel Plan.........................................................................................................................13
Table: Personnel...................................................................................................................14
7.0 Financial Plan ....................................................................................................................................15
7.1 Projected Profit and Loss .......................................................................................................16
Chart: Profit Monthly .............................................................................................................16
Chart: Profit Yearly................................................................................................................17
Chart: Gross Margin Monthly ...............................................................................................17
Chart: Gross Margin Yearly..................................................................................................18
Table: Profit and Loss ..........................................................................................................18
7.2 Break-even Analysis................................................................................................................19
Table: Break-even Analysis .................................................................................................19
Chart: Break-even Analysis .................................................................................................19
7.3 Projected Cash Flow...............................................................................................................20
Chart: Cash ...........................................................................................................................20
Table: Cash Flow ..................................................................................................................21
7.4 Projected Balance Sheet........................................................................................................22
Table: Balance Sheet...........................................................................................................22
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 Table of Contents
7.5 Business Ratios .......................................................................................................................23
Table: Ratios .........................................................................................................................24
Table: Sales Forecast ...............................................................................................................................1
Table: Personnel ........................................................................................................................................2
Table: Profit and Loss ...............................................................................................................................3
Table: Cash Flow .......................................................................................................................................4
Table: Balance Sheet ................................................................................................................................5

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 Coaching Company-Established- Standard term

1.0 Executive Summary

Coaching Company will provide top-quality professional development and coaching services.
The principal officer of Coaching Company believes that most small businesses and
entrepreneurs suffer two major problems. They lack training or development resources and the
depth of knowledge needed to focus on their businesses from a true "ownership" perspective.
Both lead to lowered expectations, lack of business and personal growth and frequent owner
burnout. Coaching Company believes that it can improve upon and exploit these weaknesses to
gain local market share.

The objectives for Coaching Company over the next three years are:

Achieve sales revenues of approximately $81,000 by end of year one.

Achieve sales revenues of approximately $150,000 by year three.
Achieve a client mix of 60% small business/30% entrepreneurial/10% individual per year.
Move into small office space by the end of the first year.

The company will provide its professional development services in the most effective manner and
with an ongoing comprehensive quality-control program to provide 100% client satisfaction.
The company's principal officer sees each contract as an agreement not between a business and
its clients, but between partners who wish to create a close and mutually-beneficial long-term
relationship. This will help to provide greater long-term profits through referrals and repeat
business.

Coaching Company will institute the following key procedures to reach its goals:

The creation of a unique, upscale, innovative environment that will differentiate Coaching
Company from other coaching or professional development businesses.
Educating the business community on what business and strategic coaching has to offer.
The formation of a learning environment that will bring people with diverse interests and
backgrounds together in a common forum to overcome challenges both professionally
and personally.
Affordable access to the resources of business coaching and other consulting services.

Coaching Company is a start-up limited liability company (LLC) consisting of one principal
officer with 15 years of industry experience. Frank Smith (principal) will be investing significant
amounts of his own capital into the company to cover start-up costs and future
growth. Coaching Company will partner with the national franchise, Coaching Company, to
provide services. Coaching Company will be limited in a home office in Anytown, MI. Workshop
facilities will be contracted from various professional venues.

The company plans to use its existing contacts and customer base to generate both short and
long-term coaching contracts. Its long-term profitability will rely on professional contracts
obtained through strategic alliances, a comprehensive marketing program and a successful
referral program.

Initially, the company will focus on professional development, strategic workshops, one-on-one
coaching and special project relationships. Beginning in year two, Coaching Company will
provide a separate and comprehensive career counseling service which will include resum
assistance, interviewing skills, job-seeking strategies and networking opportunities. The company
has rigorously examined its financial projections and concluded that they are both conservative
in profits and generous in expenditures. This was done deliberately to provide for unforeseeable

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 Coaching Company-Established- Standard term
events. The company's principal believes that cash flow projections are realistic.

Highlights

$140,000

$120,000

$100,000
Sales
$80,000 Gross Margin

$60,000 Net Profit

$40,000

$20,000

$0
FY 2019 FY 2020 FY 2021

1.1 Objectives

Coaching Company's objectives for the first three years of operation include:

The creation of a unique, upscale, innovative environment that will differentiate Coaching
Company from other coaching or professional development businesses.
Educating the business community on what business and strategic coaching has to offer.
The formation of a learning environment that will bring people with diverse interests and
backgrounds together in a common forum to overcome challenges, both professionally and
personally.
Affordable access to the resources of business coaching and other development services.

The financial objectives for Coaching Company over the next three years are to:

Achieve sales revenues of approximately $81,000 by end of year one.

Achieve sales revenues of approximately $150,000 by year three.
Achieve a client mix of 60% small business/30% entrepreneurial/10% individual per year.
Move into small office space by end of first year.
Hire one salesperson / coach by end of second year.

1.2 Mission

Coaching Company offers small business owners, managers and entrepreneurs a reliable, high-
quality resource for business coaching, and professional and management development on both a
local and national scale. Its mission is to help clients develop the strategy, motivation and

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 Coaching Company-Established- Standard term
accountability required to succeed in their business and personal lives. The company sees
each contract as an agreement not between a business and its customers, but between
partners who wish to create a close and mutually beneficial long-term relationship. This will
help to provide greater long-term profits through referrals and repeat business. Coaching
Company must also be able to maintain financial balance, charging a high value for its services,
and delivering an even higher value to its clients.

1.3 Keys to Success

1. Excellence in fulfilling the promise--completely confidential, reliable, trustworthy expertise

and information
2. Developing visibility to generate new business leads
3. Leveraging from a single pool of expertise into multiple revenue generation opportunities:
retainer coaching, project consulting, workshop facilitation and individual coaching
4. Consistently developing productive and thought-provoking learning experiences to
maintain growth and success with each client
5. Our use of state-of-the-art technology
6. Easy access to services
7. Establishing a seasoned advisory team

2.0 Company Summary

The True Group LLC, doing business as Coaching Company, is a start-up limited liability
company consisting of one principle officer with industry experience of 15 years in sales,
professional development training and business operations. The company was formed to take
advantage of the perceived weakness of existing professional development opportunities, in
terms of quality and client satisfaction. Coaching Company will be owned and operated by
Frank Smith. Mr. Smith will be investing significant amounts of his own capital into the
company and may also seek a loan to cover start-up costs and future growth.

Coaching Company will be located in a home office in Anytown, MI. The facilities required for
workshops will be contracted with professional service firms, community facilities, colleges or
universities or contract office facilities.

The company plans to use its existing contacts and the combined customer base of Mr. Smith to
generate both short and long-term coaching contracts. Its long-term profitability will rely on
focusing on professional contracts that will be obtained through strategic alliances, a
comprehensive marketing program and a successful referral program.

2.1 Company History

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Coaching Company-Established- Standard term

Past Performance

Sales

Gross

Net

FY 2016 FY 2017 FY 2018

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 Coaching Company-Established- Standard term

Table: Past Performance

Past Performance
FY 2016 FY 2017 FY 2018
Sales $0 $0 $0
Gross Margin $0 $0 $0
Gross Margin % 0.00% 0.00% 0.00%
Operating Expenses $0 $0 $0

Balance Sheet
FY 2016 FY 2017 FY 2018

Current Assets
Cash $0 $0 $0
Other Current Assets $0 $0 $0
Total Current Assets $0 $0 $0

Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0

Total Assets $0 $0 $0

Current Liabilities
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $0

Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0

Paid-in Capital $0 $0 $0
Retained Earnings $0 $0 $0
Earnings $0 $0 $0
Total Capital $0 $0 $0

Total Capital and Liabilities $0 $0 $0

2.2 Company Ownership

The True Group LLC is a privately owned limited liability company owned by Frank Smith.

[Proprietary and confidential information removed.]

3.0 Services

Coaching Company provides strategic coaching, professional development and counseling for
small business owners, entrepreneurs and self-employed professionals. The core services that
will be offered from day one will be:

Two Year Strategic mindset Program: these quarterly workshops include strategic planning,
peer advisory counseling, marketing/sales planning, accountability processes, business planning

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 Coaching Company-Established- Standard term
and work/life balance implementation.

One-on-One Coaching includes ongoing reinforcement to support Strategic Coaching program,

professional development coaching, leadership, career or management coaching.

On Demand Coaching (for time restricted clients) includes but is not limited to, private and
objective business or professional coaching, affordable and "on-demand," access to coaching via
phone/email.

Special Projects includes strategic business planning and implementation, marketing plans and
implementation, leadership development, people management and systematizing businesses.

Beginning in year two (2006), Coaching Company will provide a separate and comprehensive
career counseling service which will include but will not be limited to, resum assistance,
interviewing skills, job seeking strategies and networking opportunities.

4.0 Market Analysis Summary

Coaching Company will focus on small business owners, managers and entrepreneurs who are
concerned that their businesses have not grown at the rate they want or need them to,
frustrated that they are spending too much time in their businesses and may be burning
out and worried that their business will not survive without them. These companies will have
revenues of $10 million or less.

According to the July, 2002 census, there are approximately 81,600 small businesses in the 5
county Anytown Metropolitan area. Although the majority are manufacturing based, there are a
significant number of service related companies. Coaching Company will not take a position of
industry expert but of leadership and development expert; therefore industry will not have an
impact on any prospective markets.

4.1 Market Segmentation

Coaching Company will focus on two markets within the Anytown Metro area, the small
business segment (businesses with more than one employee/owner), and the entrepreneur
segment, which includes home-based and one-person business operations. Although the
company can handle larger organizations, the greatest benefit will come to businesses with
under $10 million in annual sales. The majority of these companies are comprised of "technicians"
who are gifted in the work of their business, but typically do not have the resources to have
in-house staff dedicated to strategic planning, professional development and/or coaching. Our
goal is to eventually obtain approximately two-thirds of all our business from the small business
segment, since this generates the greatest cash flow. Furthermore, this segment has the lowest
percentage of variable costs. The small business segment is considered to be the company's
cash cow.

Initially the company will focus on the two segments in just the A County and B County area.
However, by the end of the three-year projections, the company expects to be serving the
entire Anytown Metropolitan area. The Market Analysis table and chart show the number of small
businesses in each county.

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 Coaching Company-Established- Standard term

Table: Market Analysis

Market Analysis
2018 2019 2020 2021 2022
Potential Customers Growth CAGR
County A 3% 31,424 32,367 33,338 34,338 35,368 3.00%
County B 2% 14,130 14,413 14,701 14,995 15,295 2.00%
County C 3% 6,189 6,375 6,566 6,763 6,966 3.00%
County D 2% 2,849 2,906 2,964 3,023 3,083 1.99%
County E 2% 27,008 27,548 28,099 28,661 29,234 2.00%
Total 2.46% 81,600 83,609 85,668 87,780 89,946 2.46%

Market Analysis (Pie)

County A

County B

County C

County D

County E

4.2 Target Market Segment Strategy

The small business and entrepreneur markets are ideal targets for several reasons:

1. As a small or entrepreneurial business, resources are often limited to core business

functions such as production, administration, finance and distribution. Professional
development, training, coaching or planning frequently goes unnoticed or even
forgotten. As economic pressures increase and competition becomes more intense,
these companies are always looking for effective ways to make themselves more
prosperous.

2. As a small or entrepreneurial business, the owner is typically an accountable technician

which means he or she has everything on the line with regard to their business
succeeding or not, and that their area of expertise is in the business they are "in."
Frequently, a technician will be attracted to the "work" of the business and neglect the
fundamental health of the business, which includes nurturing both themselves and the
customer base.

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 Coaching Company-Established- Standard term

4.3 Service Business Analysis

The United States spends more per capita on education than any other country. Training or
professional development in America is a $210+ billion industry.

There are five basic groups that need training as follows:

1. Government Those employed in federal, state, and local governments, the military,
post office personnel, school teachers and administrators. This group spends more than
$23 billion in training funds annually.

2. Large Businesses These are firms with 100 or more employees. This group spends
more than $28 billion in training, with the largest portion going to training managers and
career personnel.

3. Small Businesses These are firms with fewer than 100 employees. There are more
than 79 million small businesses in the U.S. This group spends more than $20 billion on
training each year.

4. Professional Service Firms This group includes doctors, lawyers, accountants,

engineers, consultants, etc. Continuing education requirements move this group to
spend training dollars disproportionate to their size, more than $11 billion per year.

5. Individuals Those who buy training with their own money and on their own time.
This group spends more than $2.5 billion on training and they tend to be highly motivated.

4.3.1 Competition and Buying Patterns

The key element in purchase decisions made at Coaching Company client level is trust in the
professional reputation and reliability of the professional development firm. The professional
development industry is pulverized and disorganized, with thousands of smaller consulting
organizations and individual consultants for every one of the few dozen well-known companies.

Competitors range from major international name-brand consultants to tens of thousands of

individuals. One of Coaching Company's challenges will be establishing itself as a real professional
development company, positioned as a relatively risk-free corporate purchase.

When dealing with the small or entrepreneurial business market, cost or price will be one of the
greatest obstacles Coaching Company will face. It will be up to Coaching Company to assist
its clients in the discovery of how much it may cost them NOT to pursue professional
development and establish Coaching Company as the most effective solution to their challenges.

With time, reputation and referrals will allow for a steady stream of new clients as well as regular
price increases. This is not a business to build brand as much as it is to build reliability.

5.0 Strategy and Implementation Summary

Emphasize results
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 Coaching Company-Established- Standard term
We will differentiate ourselves with results. We will establish our business offering as a clear
and viable alternative for our target market, from the scores of unrefined, one-time seminar,
consulting, and "feel good motivational" companies.

Build a relationship-oriented business

Build long-term relationships with clients, not single-visit deals. Become their advisor and partner
of choice. Make them understand the value of long-term relationships.

Focus on target markets

We need to focus our offerings on small business owners and entrepreneurs who have a
passion for their business and have the willingness to work for what they receive. We do not
want to compete for the buyers who seek "get rich quick" types of resources. We need to be
able to sell to smart, quality-conscious clients.

5.1 Competitive Edge

The most unique benefit that Coaching Company offers to clients is the ability to experience
ongoing, reinforcement development, versus a typical "one-time" seminar format. Coaching
Company provides development and support for a year or more. Since each Strategic
Workshop client will be immediately qualified for one-on-one coaching, we will manage and
monitor the specific progress of each client to ensure appropriate development.

5.2 Marketing Strategy

Coaching Company plans to reach their target companies by four methods which have been
proven to be effective. They are:

Lead Generation Program: Coaching Company will do a direct mailing to 3,000 potential
customers in the A and B county areas. Interested companies reply by mail or phone. In
this industry, an average of 3% of the recipients typically respond.

Sample Previews: These are invitation-only workshops that Coaching Company will host for
referral sources (i.e., accountants, attorneys, financial planners, insurance professionals) as well
as owners of businesses in a target market. The previews will be the actual first year
program offered to paying clients. The intent is to provide value and proof of the Strategic
Workshop process so that clients will be comfortable making referrals. Coaching Company will
be responsible for the generation of the lists to which these invitations will be sent. The
franchiser, Coaching Company, recommends that one of these briefings be held monthly. Referral
sources and business owners who attend and are interested will have a follow-up call made to
them to further discuss what Coaching Company can do for their company.

Free Talks/Networking: These are talks given to Chambers of Commerce, trade councils,
professional organizations, etc. It has been industry experience that it is most beneficial to
have at least two of these talks per month and attend two networking events per month.

Referrals: Referrals will not be a large part of Coaching Company's business until late in the
first year. In the second and third year they should account for as much as 50% of new

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 Coaching Company-Established- Standard term
business.

Other Income Generators: Special Project Assistance. This includes writing private programs
for specific businesses, designing custom programs and retainer based coaching on an ongoing
basis.

5.3 Sales Strategy

Coaching Company will make a significant profit through the delivery of top-of-the-line
professional development services. The company will see profit within the first year due to
beneficial word-of-mouth advertising and referral networking. The company expects to double its
clientele every six months, for the first 18 months.

Pricing

Strategic Workshops (two year program) - $3000 for year one, $2500 for year two.
Includes 1 hour per month one-on-one coaching.

Platinum Package - $5000 for one year of Strategic Workshops, 1 hour per month of
one-on-one coaching & membership to the On Demand Coaching.

Gold Package - $4000 for one year of Strategic Workshops, 1 hour per month of one-
on-one coaching.

Silver Package - $3000 for one year of Strategic Workshops

Second year - $2500 per year for any client continuing with Strategic
Workshops (applies to workshop only)

One-on-one Coaching - $125/hr for any personalized coaching for non-workshop clients.
$100/hr for workshop clients.

On Demand Coaching - $250 per month. minimum purchase of 3 months.

Special Projects - Priced as needed

5.3.1 Sales Forecast

Coaching Company expects a slow start to 2005, but a strong finish with referral marketing
beginning to replace hard marketing dollars. The core business will be the Strategic
Workshops, which have a second year tied to the initial purchase (two year program - $3,000 for
year one, $2,500 for year two). Based on this, we should be able to obtain and manage a 25%
increase in sales. Sales exceeding the 25% would place a tremendous burden on the
acceptable delivery of service. Consistent efforts made by Coaching Company based on the
marketing plan will drive enough opportunities to supply both initial and ongoing growth. At this
growth rate, Coaching Company will be in a position to hire one more salesperson beginning
year four (2008).

Potential obstacles to achieving these results:

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 Coaching Company-Established- Standard term
1. Prospecting/marketing plan not followed
2. Poor delivery of service
3. Any health problems of owner

Table: Sales Forecast

Sales Forecast
FY 2019 FY 2020 FY 2021
Sales
Strategic Workshops $64,000 $95,000 $115,000
One On One Coaching $5,622 $6,844 $8,555
Coaching Club $8,760 $8,760 $8,760
Special Projects $3,085 $10,000 $15,000
Total Sales $81,467 $120,604 $147,315

Direct Cost of Sales FY 2019 FY 2020 FY 2021

Royalties $5,654 $7,236 $8,839
Marketing $5,000 $6,250 $7,500
Subtotal Direct Cost of Sales $10,654 $13,486 $16,339

Sales Monthly
$10,000

$9,000

$8,000

$7,000 Strategic Workshops

$6,000
One On One Coaching
$5,000
Coaching Club
$4,000
Special Projects
$3,000

$2,000

$1,000

$0

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 Coaching Company-Established- Standard term

Sales by Year

$140,000

$120,000
Strategic Workshops
$100,000
One On One Coaching
$80,000
Coaching Club
$60,000 Special Projects

$40,000

$20,000

$0
FY 2019 FY 2020 FY 2021

5.4 Milestones

Coaching Company has a big year coming. In order to achieve the sales and marketing goals that
have been outline in this business plan, the company has deadlines to meet and ideas to
implement. Frank Smith is accountable for all items. Some of these are outlined below:

March 1, 2005 is the date Coaching Company must commence operations. This requires
a trip to Anytown in January 2005 with final franchise agreements signed by February 1,
2005. Frank Smith will be visiting Anytown on January 14, 2005 to take care of this.

March 1, 2005 is the date specified to begin the Lead Generation Program
(direct marketing) which includes direct mail, email marketing, advertising and phone sales
calls.

February 28, 2005 is the deadline for joining two chamber of commerces (Anytown and
Pleasantville), and other networking groups; this is key to the marketing/networking
effort. This will be effective immediately after submitting application and membership
fee. Frank Smith will begin scheduling free talks immediately.

April 15, 2005 is the deadline for scheduling the first of monthly Sample Previews.

Marketing materials. Printing costs are involved in printing brochures, business cards,
and developing website. This can't be done until after the photo/logo design work
(costing $1,000) has been completed.

February 28, 2005 is deadline for joining the Anytown Chamber of Commerce and a
secondary Chamber. Cost is $195-$225/year. Benefits include networking, marketing and
free talks.

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 Coaching Company-Established- Standard term
February 28, 2005 is the deadline to join Local Business Network. Cost is $360/year.
Benefits include networking, marketing and free talks. May also be used to populate
first workshops.

Table: Milestones
Milestones

Milestone Start Date End Date Budget Manager Department

Lead Generation Prgm 3/1/2005 3/15/2005 $1,000 ABC Marketing
Sample Previews 2/15/2005 3/15/2005 $300 ABC Marketing
Free Talks 3/1/2005 3/1/2007 $50 ABC Marketing
Start Business 2/1/2005 2/28/2005 $17,900 ABC Finance
Marketing Materials/Stationery 2/15/2005 2/28/2005 $500 ABC Marketing
Chamber of Commerce 2/1/2005 2/28/2005 $195 ABC Marketing
Networking Group 2/1/2005 2/28/2005 $360 ABC Marketing
Second Chamber 2/1/2005 2/28/2005 $200 ABC Department
Totals $20,505

Milestones

Lead Generation Prgm

Sample Previews

Free Talks

Start Business

Marketing Materials/Stationery

Chamber of Commerce

Networking Group

Second Chamber

Q2 Q3 Q4 Q1 `06 Q2 Q3 Q4

6.0 Management Summary

The initial management team depends on the founder himself, with little back-up. As we grow,
we will take on additional consulting, sales, and marketing help.

6.1 Personnel Plan

The following table is the personnel plan for Coaching Company. The table reflects the hiring of a

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 Coaching Company-Established- Standard term
second full-time salesperson / coach in year 2.

Table: Personnel
Personnel Plan
FY 2019 FY 2020 FY 2021
President $27,000 $50,000 $50,000
Second salesperson/coach $0 $20,000 $42,000
Total People 1 2 2

Total Payroll $27,000 $70,000 $92,000

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 Coaching Company-Established- Standard term

7.0 Financial Plan

Our financial plan is based on conservative estimates and assumptions. We will need initial
investment to make the financials work, but the owner is prepared to contribute that funding.

We can minimize risk factors by:

1. Obtaining initial capitalization of the company to sustain operations through year one
2. Maintaining low overhead through the use of shared office space and home-based office
through year one
3. Developing a strong customer base through aggressive marketing
4. Creating strong community ties and involvement
5. Eliminating collection costs, by establishing cash/credit/debit card only facilities

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 Coaching Company-Established- Standard term

7.1 Projected Profit and Loss

The following table and chart shows the projected Profit and Loss for Coaching Company. The
majority of our operating expenses are the owner's payroll, benefits and taxes. This includes a
standard PPO health plan, since the owner is sole provider of services; if he gets sick, sales
stop. The second largest category is Marketing and Promotion, necessary for establishing brand
recognition and generating new business, as a start-up.

The moving expenses in December and increased rent starting at the same time reflect the
planned move into an office space, and out of the owner's home.

Profit Monthly
$4,000

$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

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

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 Coaching Company-Established- Standard term

Profit Yearly

$21,000

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

$0
FY 2019 FY 2020 FY 2021

Gross Margin Monthly

$9,000

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

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

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 Coaching Company-Established- Standard term

Gross Margin Yearly

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
FY 2019 FY 2020 FY 2021

Table: Profit and Loss

Pro Forma Profit and Loss
FY 2019 FY 2020 FY 2021
Sales $81,467 $120,604 $147,315
Direct Cost of Sales $10,654 $13,486 $16,339
Other Costs of Sales $0 $0 $0
Total Cost of Sales $10,654 $13,486 $16,339

Gross Margin $70,813 $107,118 $130,976

Gross Margin % 86.92% 88.82% 88.91%

Expenses
Payroll $27,000 $70,000 $92,000
Marketing/Promotion $4,800 $5,400 $6,400
Depreciation $0 $0 $0
Rent $2,335 $10,000 $10,000
Utilities $480 $528 $580
Insurance $972 $1,020 $1,072
Payroll Taxes $4,050 $10,500 $13,800
Moving Expenses $1,000 $0 $0
Other $0 $0 $0

Total Operating Expenses $40,637 $97,448 $123,852

Profit Before Interest and Taxes $30,176 $9,670 $7,124

EBITDA $30,176 $9,670 $7,124
Interest Expense $0 $0 $0
Taxes Incurred $9,053 $2,901 $2,137

Net Profit $21,123 $6,769 $4,987

Net Profit/Sales 25.93% 5.61% 3.39%

Page 18
 Coaching Company-Established- Standard term

7.2 Break-even Analysis

Break-even data is presented in the chart and table below.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $3,896

Assumptions:
Average Percent Variable Cost 13%
Estimated Monthly Fixed Cost $3,386

Break-even Analysis

$2,000

$1,000

$0

($1,000)

($2,000)

($3,000)

$0 $1,200 $2,400 $3,600 $4,800 $6,000

$600 $1,800 $3,000 $4,200 $5,400 $6,600

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 Coaching Company-Established- Standard term

7.3 Projected Cash Flow

The following table and chart show the Cash Flow for Coaching Company. After the first six
months, cash flow should be positive for all months. We expect an initial period of decreasing
cash balance, until sales reach mid-year targets.

Cash
$21,000

$18,000

$15,000

$12,000
Net Cash Flow
$9,000
Cash Balance
$6,000

$3,000

$0

($3,000)

Mar May Jul Sep Nov Jan

Apr Jun Aug Oct Dec Feb

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 Coaching Company-Established- Standard term

Table: Cash Flow

Pro Forma Cash Flow
FY 2019 FY 2020 FY 2021
Cash Received

Cash from Operations

Cash Sales $81,467 $120,604 $147,315
Subtotal Cash from Operations $81,467 $120,604 $147,315

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $81,467 $120,604 $147,315

Expenditures FY 2019 FY 2020 FY 2021

Expenditures from Operations

Cash Spending $60,344 $113,835 $142,328
Subtotal Spent on Operations $60,344 $113,835 $142,328

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $60,344 $113,835 $142,328

Net Cash Flow $21,123 $6,769 $4,987

Cash Balance $21,123 $27,892 $32,879

Page 21
 Coaching Company-Established- Standard term

7.4 Projected Balance Sheet

The following table presents the Balance Sheet for Coaching Company. It shows our projected
steady increase in Net Worth over the next three years. As a consulting company, we do not
need a great deal in the way of assets, so the largest factor in the Balance Sheet is our cash
balance.

Table: Balance Sheet

Pro Forma Balance Sheet
FY 2019 FY 2020 FY 2021
Assets

Current Assets
Cash $21,123 $27,892 $32,879
Other Current Assets $0 $0 $0
Total Current Assets $21,123 $27,892 $32,879

Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $21,123 $27,892 $32,879

Liabilities and Capital FY 2019 FY 2020 FY 2021

Current Liabilities
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $0 $0 $0

Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0

Paid-in Capital $0 $0 $0
Retained Earnings $0 $21,123 $27,892
Earnings $21,123 $6,769 $4,987
Total Capital $21,123 $27,892 $32,879
Total Liabilities and Capital $21,123 $27,892 $32,879

Net Worth $21,123 $27,892 $32,879

Page 22
 Coaching Company-Established- Standard term

7.5 Business Ratios

The following table shows the projected business ratios. We expect to maintain healthy ratios for
profitability, risk, and return. The industry comparisons are for Management Consulting
Services, SIC code 8742.

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 Coaching Company-Established- Standard term

Table: Ratios
Ratio Analysis
FY 2019 FY 2020 FY 2021 Industry Profile
Sales Growth n.a. 48.04% 22.15% 7.74%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 48.61%
Total Current Assets 100.00% 100.00% 100.00% 77.64%
Long-term Assets 0.00% 0.00% 0.00% 22.36%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 0.00% 0.00% 0.00% 31.75%

Long-term Liabilities 0.00% 0.00% 0.00% 18.72%
Total Liabilities 0.00% 0.00% 0.00% 50.47%
Net Worth 100.00% 100.00% 100.00% 49.53%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 86.92% 88.82% 88.91% 100.00%
Selling, General & Administrative Expenses 60.99% 83.21% 85.52% 83.82%
Advertising Expenses 0.00% 0.00% 0.00% 1.12%
Profit Before Interest and Taxes 37.04% 8.02% 4.84% 2.69%

Main Ratios
Current 0.00 0.00 0.00 1.69
Quick 0.00 0.00 0.00 1.36
Total Debt to Total Assets 0.00% 0.00% 0.00% 56.50%
Pre-tax Return on Net Worth 142.86% 34.67% 21.67% 2.64%
Pre-tax Return on Assets 142.86% 34.67% 21.67% 6.07%

Additional Ratios FY 2019 FY 2020 FY 2021

Net Profit Margin 25.93% 5.61% 3.39% n.a
Return on Equity 100.00% 24.27% 15.17% n.a

Activity Ratios
Accounts Payable Turnover 8.98 12.17 12.17 n.a
Total Asset Turnover 3.86 4.32 4.48 n.a

Debt Ratios
Debt to Net Worth 0.00 0.00 0.00 n.a
Current Liab. to Liab. 0.00 0.00 0.00 n.a

Liquidity Ratios
Net Working Capital $21,123 $27,892 $32,879 n.a
Interest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.26 0.23 0.22 n.a
Current Debt/Total Assets 0% 0% 0% n.a
Acid Test 0.00 0.00 0.00 n.a
Sales/Net Worth 3.86 4.32 4.48 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Page 24
 Appendix
Table: Sales Forecast

Sales Forecast
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Sales
Strategic Workshops 0% $0 $0 $3,000 $3,500 $5,000 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
One On One Coaching 0% $0 $0 $500 $500 $500 $562 $562 $562 $562 $625 $625 $624
Coaching Club 0% $0 $0 $800 $816 $832 $849 $866 $883 $901 $919 $937 $956
Special Projects 0% $235 $250 $150 $150 $250 $250 $300 $300 $300 $300 $300 $300
Total Sales $235 $250 $4,450 $4,966 $6,582 $9,161 $9,228 $9,245 $9,263 $9,344 $9,362 $9,380

Direct Cost of Sales Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Royalties $471 $471 $471 $471 $471 $471 $471 $471 $471 $471 $471 $471
Marketing $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Subtotal Direct Cost of Sales $888 $888 $888 $888 $888 $888 $888 $888 $888 $888 $888 $888

Page 1
 Appendix
Table: Personnel

Personnel Plan
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
President 0% $0 $2,000 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Second salesperson/coach 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 1 1 1 1 1 1 1 1 1 1 1

Total Payroll $0 $2,000 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500

Page 2
 Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Sales $235 $250 $4,450 $4,966 $6,582 $9,161 $9,228 $9,245 $9,263 $9,344 $9,362 $9,380
Direct Cost of Sales $888 $888 $888 $888 $888 $888 $888 $888 $888 $888 $888 $888
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $888 $888 $888 $888 $888 $888 $888 $888 $888 $888 $888 $888

Gross Margin ($653) ($638) $3,562 $4,078 $5,694 $8,273 $8,340 $8,357 $8,375 $8,456 $8,474 $8,492
Gross Margin % -277.87% -255.13% 80.05% 82.12% 86.51% 90.31% 90.38% 90.40% 90.42% 90.50% 90.52% 90.53%

Expenses
Payroll $0 $2,000 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Marketing/Promotion $1,500 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $75 $75 $75 $75 $75 $75 $75 $75 $75 $830 $830
Utilities $0 $38 $39 $40 $41 $42 $43 $45 $46 $48 $49 $50
Insurance $0 $84 $85 $86 $87 $87 $88 $89 $90 $91 $92 $93
Payroll Taxes 15% $0 $300 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375
Moving Expenses 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $1,500 $2,797 $3,373 $3,375 $3,378 $3,380 $3,382 $3,384 $3,386 $3,388 $5,146 $4,148

Profit Before Interest and Taxes ($2,153) ($3,434) $189 $703 $2,317 $4,894 $4,958 $4,973 $4,989 $5,068 $3,329 $4,344
EBITDA ($2,153) ($3,434) $189 $703 $2,317 $4,894 $4,958 $4,973 $4,989 $5,068 $3,329 $4,344
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($646) ($1,030) $57 $211 $695 $1,468 $1,488 $1,492 $1,497 $1,520 $999 $1,303

Net Profit ($1,507) ($2,404) $132 $492 $1,622 $3,425 $3,471 $3,481 $3,492 $3,547 $2,330 $3,041
Net Profit/Sales -641.32% -961.61% 2.97% 9.91% 24.64% 37.39% 37.61% 37.66% 37.70% 37.96% 24.89% 32.42%

Page 3
 Appendix
Table: Cash Flow

Pro Forma Cash Flow

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

Cash from Operations

Cash Sales $235 $250 $4,450 $4,966 $6,582 $9,161 $9,228 $9,245 $9,263 $9,344 $9,362 $9,380
Subtotal Cash from Operations $235 $250 $4,450 $4,966 $6,582 $9,161 $9,228 $9,245 $9,263 $9,344 $9,362 $9,380

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $235 $250 $4,450 $4,966 $6,582 $9,161 $9,228 $9,245 $9,263 $9,344 $9,362 $9,380

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

Expenditures from Operations

Cash Spending $1,742 $2,654 $4,318 $4,474 $4,960 $5,736 $5,757 $5,764 $5,771 $5,797 $7,032 $6,339
Subtotal Spent on Operations $1,742 $2,654 $4,318 $4,474 $4,960 $5,736 $5,757 $5,764 $5,771 $5,797 $7,032 $6,339

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $1,742 $2,654 $4,318 $4,474 $4,960 $5,736 $5,757 $5,764 $5,771 $5,797 $7,032 $6,339

Net Cash Flow ($1,507) ($2,404) $132 $492 $1,622 $3,425 $3,471 $3,481 $3,492 $3,547 $2,330 $3,041
Cash Balance ($1,507) ($3,911) ($3,779) ($3,287) ($1,665) $1,760 $5,231 $8,712 $12,205 $15,752 $18,082 $21,123

Page 4
 Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

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

Current Assets
Cash $0 ($1,507) ($3,911) ($3,779) ($3,287) ($1,665) $1,760 $5,231 $8,712 $12,205 $15,752 $18,082 $21,123
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $0 ($1,507) ($3,911) ($3,779) ($3,287) ($1,665) $1,760 $5,231 $8,712 $12,205 $15,752 $18,082 $21,123

Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $0 ($1,507) ($3,911) ($3,779) ($3,287) ($1,665) $1,760 $5,231 $8,712 $12,205 $15,752 $18,082 $21,123

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

Current Liabilities
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 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Earnings $0 ($1,507) ($3,911) ($3,779) ($3,287) ($1,665) $1,760 $5,231 $8,712 $12,205 $15,752 $18,082 $21,123
Total Capital $0 ($1,507) ($3,911) ($3,779) ($3,287) ($1,665) $1,760 $5,231 $8,712 $12,205 $15,752 $18,082 $21,123
Total Liabilities and Capital $0 ($1,507) ($3,911) ($3,779) ($3,287) ($1,665) $1,760 $5,231 $8,712 $12,205 $15,752 $18,082 $21,123

Net Worth $0 ($1,507) ($3,911) ($3,779) ($3,287) ($1,665) $1,760 $5,231 $8,712 $12,205 $15,752 $18,082 $21,123

Page 5