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Table of Contents
Table of Contents
Table of Contents
Page 3
Ibrio, Inc.
Page 1
Ibrio, Inc.
Chart: Highlights
Highlights
$1,200,000
$1,000,000
$800,000
Sales
Gross Margin
$600,000
Net Profit
$400,000
$200,000
$0
Year 1
Year 2
Year 3
Page 2
Ibrio, Inc.
The four-year $20,000 loan has been secured from the XYZ bank to supply the needed capital
explained above.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Business Cards
Phone Line Install (Two Lines)
Computer Monitor
InfoUSA Database
Office Equipment
Dedicated Server Setup Fee
Membership Fees
DSL Setup and Install
Phones
Total Start-up Expenses
$60
$150
$200
$400
$580
$150
$600
$350
$160
$2,650
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
$17,000
$7,650
$0
$24,650
Total Requirements
$27,300
Chart: Start-up
Start-up
$24,000
$21,000
$18,000
$15,000
$12,000
$9,000
$6,000
$3,000
$0
Expenses
Assets
Investment
Loans
Page 3
Ibrio, Inc.
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$2,650
$24,650
$27,300
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$7,650
$17,000
$0
$17,000
$24,650
$0
$20,000
$0
$0
$20,000
Capital
Planned Investment
David W. Hickethier
Richard B. Andrews
Additional Investment Requirement
Total Planned Investment
$3,650
$3,650
$0
$7,300
($2,650)
$4,650
$24,650
Total Funding
$27,300
Page 4
Ibrio, Inc.
E-commerce development.
Website renovations and upgrades.
Application development (i.e. chatrooms, message boards, online polling, live-feed
audio/video, etc.).
Website maintenance training.
Internet/website education seminars.
Database construction.
We have plans to offer the following services within the next year:
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Ibrio, Inc.
In the next six months, we plan to produce and distribute bulk mail and fax flyers promoting
our Web development and hosting services to small businesses in Central PA to solicit new
business.
We have plans to offer a more compact version of our main sales folder in a brochure format.
This brochure will be available both as a mailer to interested parties and as a sales solicitation
in area businesses.
3.3 Fulfillment
For the website design, development, marketing, analysis, and maintenance we will employ
industry professionals to handle our clients' needs. Working for the company presently is
Brandon Andrews, a professional website development engineer and strategist with four years
of experience in the commercial Web development industry. To keep employee costs low, we
have designed a "team" development system that will consist of two full-time sales people and
three full-time Web developers. Of the Web developers, one position will be filled by a highlyqualified senior Web professional and two lesser-qualified, lower paid developers. All three will
work full-time on separate projects provided to them by the sales people. However, the senior
developer will have the duty of maintaining the same high quality level of work in the junior
developers' projects, that our clients have learned to expect from us now.
For the website hosting services we offer, Ibrio Inc. has formed several alliances with industry
leaders to provide top-rate, reliable hosting solutions. Forming the alliances has allowed us
much flexibility in important hosting features, customizability, and it has drove costs down
dramatically. All these benefits are crucial to preserving the integrity of our company as being a
'fully-rounded Internet solutions provider' for small businesses.
3.4 Technology
It is a given that technology and keeping up with new innovations strongly influence our
business. We operate a Windows based Local Area Network (LAN) in the office that is
equipped with the most current software and hardware tools available to meet our project
requirements. Within the next year, we will be investing in additional tools that will extend our
capabilities in handling various types of program files (i.e. Macintosh computers, large capacity
data storage, and high-end image scanners). We also have plans to purchase licensing
agreements with our major software vendors to allow for automatic upgrades in new software
tools.
Currently we own and operate both a professional digital and film camera for the purpose of
offering on-site and in-house product and business photography to our clients. We would like to
improve upon these services in the near future by purchasing a more complete photography
system, it has been our experience that this is a service many small businesses are recognizing
as a crucial part of their online marketing efforts and would take advantage of it were we to
offer such a service.
Page 6
Ibrio, Inc.
E-commerce/shopping cart.
Database driven websites.
Dynamic content and website features.
Aggressive online website marketing.
Page 7
Ibrio, Inc.
By 2001, small businesses (1-99 employees) will spend in upwards of $22 billion to either
gain an Internet presence or improve their existing efforts. This number is up from $12
billion in 2000 (Activemedia Research).
Small and home-based business' Internet usage is at approx. 81%, this is an increase from
only 26% usage in 1996. It is estimated to reach almost 95% by the year 2004 (IDC
Research).
Total U.S. business Information Technology (IT) expenditures for 2000 are $119.1 billion
and will reach $285 billion by the year 2003. The year 2000 will also be the first year that
U.S. businesses spend more of their total IT expenditures on Web-related services than on
IT hardware (IDC Research).
Currently, the total number of online users in the U.S. is 107 million, by 2004 that number
will grow to 210 million (IDC Research).
E-commerce revenue will reach nearly $6.8 trillion by the year 2004, up from $48.6 billion
in 2000 (Forrester Research Group).
Page 8
Ibrio, Inc.
1. Teeple Graphics: Located approximately 10 miles from our Palmyra offices, they offer Web
development and graphic services.
Strengths: Teeple has a very strong clientele, by talking to several of their Web development
clients, we have come to the conclusion that Teeple offers a very dependable and high-quality
service.
Weaknesses: Teeple Graphics is owned and operated by George Teeple, he is also the only
employee working for the company out of his home, and does not run his business as a fulltime operation. In addition, Teeple Graphics requires all clients who operate an e-commerce
website to pay his company a commission on the revenue generated by the site, this is paid on
top of the development fee that Teeple charges.
2. Sharp Innovations: Located approximately 30 miles from our Palmyra offices, they offer
Web development services to small businesses in the Lancaster, PA area.
Strengths: Sharp Innovations has a large market share in its area, offering a very broad range
of services from Web development, e-commerce, graphic design, and Internet access.
Weaknesses: Sharp Innovations is a young company with very high overhead. They market
themselves as "The Small Business Internet Marketing Professionals of Central PA," but the
types of services they offer and their very high prices do not in anyway reflect the needs of
small business owners. It is also our opinion, after reviewing Sharp Innovations' portfolio that
they lack a certain level of technical and aesthetic design knowledge that so many small
businesses are beginning to demand.
3. Say1.net: Located approximately 10 miles from our Palmyra, PA location. They offer a wide
range of community and business-related Web services in the Lebanon, PA and surrounding
areas.
Strengths: Say1 has established a 'portal' type website designed to serve the Lebanon and
surrounding areas with useful information regarding community events and business listings.
This could serve as a valuable tool to their clients when marketing to that area.
Weaknesses: For a company that claims to be experts in marketing for small business, they do
virtually no advertising of their own and it appears that they lack in the ability to bring on
clients that are outside the city of Lebanon. Even though Web development is a service that
Say1 offers, it is only one in a long list of varied services and we believe this will dramatically
hinder their focus toward leading the industry in our market.
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Ibrio, Inc.
4. WebWorks: Located approximately 25 miles from our Palmyra, PA offices. WebWorks offers
Web development and marketing services to businesses in the Greater Harrisburg, PA area.
Strengths: WebWorks has been in the Web services business for almost six years and has a
very experienced team of developers and programmers. They also offer outstanding marketing
services.
Weaknesses: Although WebWorks is a direct competitor, they have begun to focus a large
portion of their services toward attracting medium- to large-sized companies. Their pricing is
dramatically higher than any competing firms in the Central PA area and they now have put
into effect a policy of only excepting jobs of a certain size.
4.2.2 Business Participants
The Web services and development industry consists mainly of three different types of firms.
The first type are the very large, high revenue companies who service larger Fortune 1000
corporations and well-funded Internet based start-ups exclusively. In this category are only a
few worldwide participants that dominate.
The second type of firm offers pre-fabricated, all-in-one, proprietary type Web services to any
size company at a very low cost or without any cost. The participants in this category consist of
a few dominating companies that mainly all have additional sources of revenue and only offer
Web services as a value-added service or additional attraction.
The third type of firm is our classification, that is the smaller, usually very young companies
that market to small- and medium-sized businesses in their local area. Currently there are a
large number of participants in this category, but no dominating forces.
4.3 Market Segmentation
Our target market is separated into the four surrounding counties listed below:
Dauphin County: Located to the West, approximately five miles from our location. The number
of businesses is estimated at 6,723. It will make up 23% of our four county target area.
Lancaster County: Located Southeast, approx. 20 miles from our location. We would like to
begin marketing in this area within four months. The number of businesses is estimated at
11,299. It will make up 40% of our target area.
Lebanon County: Our office is located in Lebanon County. Lebanon is the smallest of the four
counties and therefore we will market in proportion to its size. The number of businesses is
estimated at 2,547. It will make up 9% of our target area.
York County: Located Southwest, approx. 40 miles from our location. York county is the last of
the four counties we will market in. It will be late next year before we begin marketing in this
county. The number of businesses is estimated at 8,238. It will make up 28% of our target
area.
Our business allows us to offer services to small companies, no matter their geographical
location, and we plan to do so, eventually expanding outside our immediate area. The above
Page 10
Ibrio, Inc.
counties are where we will market most heavily and expect to receive the majority of our work.
We do expect to receive a small portion from outside this target area due to ad placement in a
national business directory.
The above demographic information can be found through the Geospatial & Statistical Data
Center.
Dauphin County
Lancaster County
Lebanon County
York County
Market Analysis
Potential Customers
Growth
Dauphin County
Lancaster County
Lebanon County
York County
Total
2%
2%
2%
2%
1.88%
Year 1
Year 2
Year 3
Year 4
Year 5
6,723
11,299
2,593
8,238
28,853
6,844
11,502
2,645
8,403
29,394
6,967
11,709
2,698
8,571
29,945
7,092
11,920
2,752
8,742
30,506
7,220
12,135
2,807
8,917
31,079
CAGR
1.80%
1.80%
2.00%
2.00%
1.88%
Page 11
Ibrio, Inc.
We plan on doing a large scale marketing project during this month including (March 5 - April 5,
2001):
Page 12
Ibrio, Inc.
Budget Domain Website Package ($585.00): For simple, information based websites.
Popular with companies who just need to gain an Internet presence.
Mid-Level Website Package ($945.00): Information based websites with a large amount
of content. Popular with companies that have a large services/products list and/or want to
implement more of their business into the Web.
Website Hosting (from $15.00 to $45.00 per month): Depending on the type and size of
the website, the price for hosting can vary greatly. The average cost of hosting for most
clients is $25 per month.
Website Maintenance ($45.00 per hour): We charge a set fee of $45.00 per hour billed in
10 minute increments. If a client feels as though they will need their website updated or
maintained on a regular basis, packages are available at a discount rate.
Currently we advertise in eight separate area yellow page directories. All our ads appear
under either the Internet Services or Website Design headings.
Ibrio Inc. also has an ad listing in a national business directory under the heading of Web
Developers.
In the near future we will feature ads in several area business publications such as The
Central Penn Business Journal and the Who's Who in Dauphin County.
We have sent out targeted bulk mail flyers promoting special offerings by our company.
We have participated in targeted broadcast fax promotions to small businesses in our area.
In the near future we will begin a new aggressive, ongoing bulk mail campaign to promote
our Web development and hosting services.
Page 13
Ibrio, Inc.
We will begin advertising on a broader scale within the next six months. Radio spots will be
continuously played during local area talk shows and news programs, this placement is
intended to reach the highest percentage of our target client possible.
Billboard ad placement will be the second mass media marketing campaign we will
implement into our marketing efforts. Billboard ads will be intended as 'name recognition'
advertising.
Educational Seminars:
Ibrio Inc. has been invited to speak to business owners and managers at several Internet
and Web-related educational seminars on a variety of topic. In the near future, we will
promote our services through these seminars.
To promote our services and our name as a participant in the Web services industry, we will
be joining many of the local area Chamber of Commerce groups and various other strategic
partnership clubs.
Page 14
Ibrio, Inc.
Sales Monthly
$28,000
$24,000
Website Development
$20,000
Result-based Marketing
$16,000
Maintenance
$12,000
Hosting
$8,000
$4,000
Month 12
Month 11
Month 10
Month 9
Month 8
Month 7
Month 6
Month 5
Month 4
Month 3
Month 2
Month 1
$0
Page 15
Ibrio, Inc.
Sales by Year
$1,200,000
$1,000,000
Website Development
$800,000
Result-based Marketing
$600,000
Maintenance
Hosting
$400,000
$200,000
$0
Year 1
Year 2
Year 3
Sales Forecast
Year 1
Year 2
Year 3
$117,000
$19,250
$14,230
$14,040
$164,520
$350,000
$81,900
$43,000
$40,000
$514,900
$750,000
$199,500
$130,000
$115,000
$1,194,500
Year 1
$0
$9,900
$0
$5,650
$15,550
Year 2
$0
$35,000
$0
$15,000
$50,000
Year 3
$0
$102,600
$0
$25,000
$127,600
Sales
Website Development
Result-based Marketing
Maintenance
Hosting
Total Sales
Direct Cost of Sales
Website Development
Result-based Marketing
Maintenance
Hosting
Subtotal Direct Cost of Sales
Page 16
Ibrio, Inc.
Page 17
Ibrio, Inc.
5.5 Milestones
The accompanying table lists important program milestones, with dates and managers in
charge, and budgets for each. The milestone schedule indicates our emphasis on planning for
implementation.
What the table doesn't show is the commitment behind it. Our business plan includes complete
provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings every
month to discuss the variance and course corrections.
Table: Milestones
Milestones
Milestone
Incorporation
Acquire Start-up Financing
Accounting/Balance Sheet Setup
Acquire Chamber Memberships
Staff Sales Position #1
Staff Development Position #1
Upgrade Current Sales Literature
Acquire Dedicated Web Host
Service
Staff Development Position #2
Staff Sales Position #2
Acquire Large Scale Outside
Marketing
Staff Developer Postion #3
Other
Totals
Start Date
8/14/2000
8/14/2000
8/31/2000
10/2/2000
10/9/2000
10/16/2000
10/23/2000
11/1/2000
End Date
8/28/2000
10/1/2000
8/31/2000
10/9/2000
10/16/2000
10/23/2000
11/6/2000
11/8/2000
Budget
$500
$0
$300
$600
$2,240
$3,200
$300
$770
Manager
Dave
Dave
Dave
Dave
Dave
Brandon
Dave
Brandon
Department
Admin
Admin
Admin
Marketing
HR
HR
Sales
Development
1/15/2001
2/12/2001
3/5/2001
2/1/2001
2/26/2001
4/5/2001
$3,200
$2,240
$2,000
Brandon
Dave
Dave
HR
HR
Marketing
3/19/2001
1/1/2001
4/2/2001
1/1/2001
$3,200
$0
$18,550
Brandon
ABC
HR
Department
Page 18
Ibrio, Inc.
Page 19
Ibrio, Inc.
Table: Personnel
Personnel Plan
Year 1
Year 2
Year 3
$3,400
$16,228
$10,944
$7,920
$0
$38,492
$25,000
$23,000
$21,000
$21,000
$0
$90,000
$60,000
$27,000
$25,000
$25,000
$0
$137,000
$3,400
$16,504
$10,096
$0
$30,000
$25,000
$23,000
$21,000
$0
$69,000
$60,000
$25,000
$23,000
$0
$108,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$68,492
$159,000
$245,000
Production Personnel
Brandon/Web Developer
Keith/Hired in Oct
Developer #2/Hired in Feb
Developer #3/Hired in Apr
Other
Subtotal
Sales and Marketing Personnel
Dave/Marketing
Sales Position #1/Hired in Oct
Sales Position #2/Hired in Feb
Other
Subtotal
General and Administrative Personnel
N/A
N/A
Subtotal
Other Personnel
N/A
N/A
Subtotal
Total People
Total Payroll
Important Assumptions.
Key Financial Indicators.
Break-even Analysis.
Projected Profit and Loss.
Projected Cash Flow.
Projected Balance Sheet.
Business Ratios.
Page 20
Ibrio, Inc.
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Year 1
Year 2
Year 3
1
10.00%
13.00%
25.42%
0
2
10.00%
13.00%
25.00%
0
3
10.00%
13.00%
25.42%
0
Chart: Benchmarks
Benchmarks
7.0
6.0
5.0
Year 1
4.0
Year 2
3.0
Year 3
2.0
1.0
0.0
Sales
Operating Expenses
Gross Margin%
Collection Days
Page 21
Ibrio, Inc.
Break-even Analysis
$4,000
$3,000
$2,000
$1,000
$0
($1,000)
($2,000)
($3,000)
($4,000)
$0
$1,600
$800
$3,200
$2,400
$4,800
$4,000
$6,400
$5,600
$8,000
$7,200
$8,800
Break-even Analysis
Monthly Revenue Break-even
$4,649
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
9%
$4,210
Page 22
Ibrio, Inc.
Profit Monthly
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
Page 23
Ibrio, Inc.
Profit Yearly
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Year 1
Year 2
Year 3
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12
Page 24
Ibrio, Inc.
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Year 1
Year 2
Year 3
Page 25
Ibrio, Inc.
Year 2
Year 3
Sales
Direct Cost of Sales
Production Payroll
Other
Total Cost of Sales
$164,520
$15,550
$38,492
$0
$54,042
$514,900
$50,000
$90,000
$0
$140,000
$1,194,500
$127,600
$137,000
$0
$264,600
Gross Margin
Gross Margin %
$110,478
67.15%
$374,900
72.81%
$929,900
77.85%
$30,000
$2,790
$1,020
$0
$33,810
20.55%
$69,000
$3,500
$3,000
$1,000
$76,500
14.86%
$108,000
$10,000
$7,000
$2,500
$127,500
10.67%
$0
$0
$3,180
$4,500
$0
$0
$805
$0
$8,219
$0
$16,704
10.15%
$0
$0
$5,000
$12,000
$2,000
$0
$2,000
$2,500
$19,080
$0
$42,580
8.27%
$0
$0
$12,000
$24,000
$4,000
$0
$5,000
$5,000
$29,400
$0
$79,400
6.65%
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
0.00%
$0
$0
$0
$0
0.00%
$50,514
$119,080
$206,900
$59,964
$63,144
$2,600
$14,330
$255,820
$260,820
$2,302
$63,380
$723,000
$735,000
$1,664
$183,340
Net Profit
Net Profit/Sales
$43,034
26.16%
$190,139
36.93%
$537,996
45.04%
Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll
Advertising/Promotion
Travel
Miscellaneous
Total Sales and Marketing Expenses
Sales and Marketing %
General and Administrative Expenses
General and Administrative Payroll
Sales and Marketing and Other Expenses
Depreciation
Rent
Depreciation
Leased Equipment
Utilities
Insurance
Payroll Taxes
Other General and Administrative Expenses
Total General and Administrative Expenses
General and Administrative %
Other Expenses:
Other Payroll
Consultants
Contract/Consultants
Total Other Expenses
Other %
Page 26
Ibrio, Inc.
Chart: Cash
Cash
$40,000
$35,000
$30,000
$25,000
$20,000
Cash Balance
$15,000
$10,000
$5,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10 Month 12
Page 27
Ibrio, Inc.
Year 2
Year 3
$54,292
$70,969
$125,260
$169,917
$261,372
$431,289
$394,185
$638,141
$1,032,326
$0
$0
$0
$0
$0
$0
$10,700
$135,960
$0
$0
$0
$0
$0
$0
$0
$431,289
$0
$0
$0
$0
$0
$0
$0
$1,032,326
Year 1
Year 2
Year 3
$68,492
$40,764
$109,256
$159,000
$156,598
$315,598
$245,000
$379,881
$624,881
$0
$0
$0
$0
$0
$0
$0
$109,256
$0
$0
$0
$4,589
$0
$20,000
$0
$340,187
$0
$0
$0
$5,222
$0
$20,000
$0
$650,103
$26,704
$43,704
$91,102
$134,806
$382,224
$517,029
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
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
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
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
Page 28
Ibrio, Inc.
Year 2
Year 3
$43,704
$39,260
$7,650
$90,614
$134,806
$122,871
$7,650
$265,327
$517,029
$285,045
$7,650
$809,724
$0
$3,180
($3,180)
$87,434
$20,000
$8,180
$11,820
$277,147
$40,000
$20,180
$19,820
$829,544
Year 1
Year 2
Year 3
$9,050
$0
$0
$9,050
$13,213
$0
$0
$13,213
$32,836
$0
$0
$32,836
Long-term Liabilities
Total Liabilities
$20,000
$29,050
$15,411
$28,624
$10,189
$43,025
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$18,000
($2,650)
$43,034
$58,384
$87,434
$18,000
$40,384
$190,139
$248,523
$277,147
$18,000
$230,523
$537,996
$786,519
$829,544
Net Worth
$58,384
$248,523
$786,519
Assets
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Page 29
Ibrio, Inc.
Year 2
Year 3
Industry Profile
n.a.
212.97%
131.99%
9.70%
Accounts Receivable
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
44.90%
8.75%
103.64%
-3.64%
100.00%
44.33%
2.76%
95.74%
4.26%
100.00%
34.36%
0.92%
97.61%
2.39%
100.00%
25.00%
46.30%
76.60%
23.40%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
10.35%
22.87%
33.23%
66.77%
4.77%
5.56%
10.33%
89.67%
3.96%
1.23%
5.19%
94.81%
49.40%
21.20%
70.60%
29.40%
100.00%
67.15%
41.00%
1.70%
36.45%
100.00%
72.81%
35.88%
0.68%
49.68%
100.00%
77.85%
32.56%
0.84%
60.53%
100.00%
0.00%
78.10%
0.90%
1.90%
10.01
10.01
33.23%
98.25%
65.61%
20.08
20.08
10.33%
102.01%
91.47%
24.66
24.66
5.19%
91.71%
86.96%
1.57
1.19
70.60%
4.10%
13.80%
Sales Growth
Percent of Total Assets
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios
Year 1
Year 2
Year 3
26.16%
73.71%
36.93%
76.51%
45.04%
68.40%
n.a
n.a
2.81
54
5.50
27
1.88
2.81
86
12.17
25
1.86
2.81
93
12.17
21
1.44
n.a
n.a
n.a
n.a
n.a
0.50
0.31
0.12
0.46
0.05
0.76
n.a
n.a
$81,564
23.06
$252,114
111.14
$776,888
434.50
n.a
n.a
0.53
10%
5.67
2.82
0.54
5%
10.78
2.07
0.69
4%
15.98
1.52
n.a
n.a
n.a
n.a
Activity Ratios
Accounts Receivable Turnover
Collection Days
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Page 30
Ibrio, Inc.
Dividend Payout
0.00
0.00
0.00
n.a
Page 31
Appendix
Table: Sales Forecast
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
$4,800
$0
$110
$200
$5,110
$5,400
$0
$280
$300
$5,980
$7,200
$0
$510
$540
$8,250
$8,400
$0
$750
$780
$9,930
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$19,200
$3,500
$2,290
$2,200
$27,190
$19,200
$4,200
$2,810
$2,700
$28,910
$19,200
$4,900
$3,330
$3,220
$30,650
Month 10
Month 11
Month 12
Sales
Website Development
Result-based Marketing
Maintenance
Hosting
Total Sales
Direct Cost of Sales
0%
0%
0%
0%
$0
$0
$0
$0
$0
Month 1
$0
$0
$0
$0
$0
Month 2
$8,400
$1,750
$1,010
$1,020
$12,180
Month 7
$11,200
$2,100
$1,350
$1,340
$15,990
Month 8
$14,000
$2,800
$1,790
$1,740
$20,330
Month 9
Website Development
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Result-based Marketing
$0
$0
$0
$0
$0
$0
$900
$1,080
$1,440
$1,800
$2,160
$2,520
Maintenance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Hosting
$0
$0
$350
$350
$350
$350
$350
$1,100
$700
$700
$700
$700
$0
$0
$350
$350
$350
$350
$1,250
$2,180
$2,140
$2,500
$2,860
$3,220
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Production Personnel
Brandon/Web Developer
$0
$200
$200
$200
$300
$300
$300
$300
$400
$400
$400
$400
Keith/Hired in Oct
$0
$0
$1,836
$1,152
$1,584
$1,440
$1,584
$1,512
$1,840
$1,680
$1,760
$1,840
$0
$0
$0
$0
$0
$1,440
$1,584
$1,512
$1,656
$1,512
$1,584
$1,656
$0
$0
$0
$0
$0
$0
$0
$1,512
$1,656
$1,512
$1,584
$1,656
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal
$0
$200
$2,036
$1,352
$1,884
$3,180
$3,468
$4,836
$5,552
$5,104
$5,328
$5,552
Dave/Marketing
$0
$200
$200
$200
$300
$300
$300
$300
$400
$400
$400
$400
$0
$0
$1,904
$1,080
$1,440
$1,680
$1,680
$1,680
$1,760
$1,760
$1,760
$1,760
$0
$0
$0
$0
$0
$1,120
$1,232
$1,176
$1,288
$1,760
$1,760
$1,760
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal
$0
$200
$2,104
$1,280
$1,740
$3,100
$3,212
$3,156
$3,448
$3,920
$3,920
$3,920
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
N/A
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
N/A
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
N/A
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$400
$4,140
$2,632
$3,624
$6,280
$6,680
$7,992
$9,000
$9,024
$9,248
$9,472
Other Personnel
Total People
Total Payroll
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
10
11
Month 12
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%
Long-term Interest
Rate
Tax Rate
13.00%
13.00%
13.00%
13.00%
13.00%
13.00%
13.00%
13.00%
13.00%
13.00%
13.00%
13.00%
30.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
25.00%
Other
Page 3
Appendix
Table: Profit and Loss
Month 4
Month 5
Month 6
Month 10
Month 11
Month 12
Sales
Month 1
$0
$0
$5,110
$5,980
$8,250
$9,930
$12,180
$15,990
$20,330
$27,190
$28,910
$30,650
$0
$0
$350
$350
$350
$350
$1,250
$2,180
$2,140
$2,500
$2,860
$3,220
Production Payroll
$0
$200
$2,036
$1,352
$1,884
$3,180
$3,468
$4,836
$5,552
$5,104
$5,328
$5,552
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$200
$2,386
$1,702
$2,234
$3,530
$4,718
$7,016
$7,692
$7,604
$8,188
$8,772
Gross Margin
Month 2
Month 7
Month 8
Month 9
$0
($200)
$2,724
$4,278
$6,016
$6,400
$7,462
$8,974
$12,638
$19,586
$20,722
$21,878
0.00%
0.00%
53.31%
71.54%
72.92%
64.45%
61.26%
56.12%
62.16%
72.03%
71.68%
71.38%
$0
$200
$2,104
$1,280
$1,740
$3,100
$3,212
$3,156
$3,448
$3,920
$3,920
$3,920
$0
$0
$230
$230
$230
$300
$300
$300
$300
$300
$300
$300
Travel
$0
$0
$60
$60
$60
$120
$120
$120
$120
$120
$120
$120
Miscellaneous
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$200
$2,394
$1,570
$2,030
$3,520
$3,632
$3,576
$3,868
$4,340
$4,340
$4,340
0.00%
0.00%
46.85%
26.25%
24.61%
35.45%
29.82%
22.36%
19.03%
15.96%
15.01%
14.16%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Gross Margin %
Operating Expenses
General and
Administrative Expenses
General and
Administrative Payroll
Sales and Marketing and
Other Expenses
Depreciation
$0
$0
$300
$300
$300
$300
$330
$330
$330
$330
$330
$330
Rent
$0
$0
$450
$450
$450
$450
$450
$450
$450
$450
$450
$450
Depreciation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Leased Equipment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Utilities
$0
$0
$55
$70
$70
$80
$80
$90
$90
$90
$90
$90
Insurance
Payroll Taxes
Other General and
Administrative Expenses
Total General and
Administrative Expenses
General and
Administrative %
12%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$48
$0
$497
$0
$316
$0
$435
$0
$754
$0
$802
$0
$959
$0
$1,080
$0
$1,083
$0
$1,110
$0
$1,137
$0
$0
$48
$1,302
$1,136
$1,255
$1,584
$1,662
$1,829
$1,950
$1,953
$1,980
$2,007
0.00%
0.00%
25.48%
18.99%
15.21%
15.95%
13.64%
11.44%
9.59%
7.18%
6.85%
6.55%
Page 4
Appendix
Other Expenses:
Other Payroll
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Consultants
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Contract/Consultants
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
$0
$248
$3,696
$2,706
$3,285
$5,104
$5,294
$5,405
$5,818
$6,293
$6,320
$6,347
$0
($448)
($972)
$1,572
$2,731
$1,296
$2,168
$3,569
$6,820
$13,293
$14,402
$15,531
$0
($448)
($672)
$1,872
$3,031
$1,596
$2,498
$3,899
$7,150
$13,623
$14,732
$15,861
Other %
Interest Expense
$217
$217
$217
$217
$217
$217
$217
$217
$217
$217
$217
$217
Taxes Incurred
($65)
($166)
($297)
$339
$629
$270
$488
$838
$1,651
$3,269
$3,546
$3,829
Net Profit
($152)
($499)
Net Profit/Sales
0.00%
0.00%
($891)
-17.44%
$1,017
$1,886
$810
$1,464
$2,514
$4,953
$9,807
$10,639
$11,486
17.00%
22.86%
8.16%
12.02%
15.72%
24.36%
36.07%
36.80%
37.47%
Page 5
Appendix
Table: Cash Flow
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Cash Sales
$0
$0
$0
$1,686
$0
$0
$1,973
$2,723
$3,277
$4,019
$5,277
$6,709
$114
$3,443
$4,057
$5,565
$6,703
$8,246
$0
$0
$1,686
$2,088
$6,166
$7,334
$9,584
$11,980
$14,955
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,686
$2,088
Month 1
Month 2
Month 3
Month 10
Month 11
Month 12
$8,973
$9,540
$10,115
$10,810
$13,774
$18,256
$19,783
$23,315
$28,370
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,700
$0
$0
$0
$0
$0
$6,166
$7,334
$20,284
$11,980
$14,955
$19,783
$23,315
$28,370
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$9,472
Cash Received
Cash from Operations
Expenditures
0.00%
$0
$400
$4,140
$2,632
$3,624
$6,280
$6,680
$7,992
$9,000
$9,024
$9,248
Bill Payments
$5
$150
$147
$1,577
$2,045
$2,443
$2,579
$3,754
$5,184
$6,114
$8,051
$8,715
$5
$550
$4,287
$4,209
$5,669
$8,723
$9,259
$11,746
$14,184
$15,138
$17,299
$18,187
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$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
$5
$550
$4,287
$4,209
$5,669
$8,723
$9,259
$11,746
$14,184
$15,138
$17,299
$18,187
Page 6
Appendix
Net Cash Flow
($5)
Cash Balance
$16,995
($550)
$16,445
($2,601)
($2,121)
$497
$13,844
$11,723
$12,219
($1,389)
$11,025
$234
$771
$4,645
$6,016
$10,183
$10,830
$21,855
$22,089
$22,860
$27,505
$33,521
$43,704
Month 10
Month 11
Month 12
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Starting
Balances
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
$17,000
$0
$7,650
$24,650
$16,995
$0
$7,650
$24,645
$16,445
$0
$7,650
$24,095
$13,844
$3,424
$7,650
$24,918
$11,723
$7,316
$7,650
$26,689
$12,219
$9,401
$7,650
$29,270
$10,830
$11,996
$7,650
$30,476
$21,855
$14,592
$7,650
$44,097
$22,089
$18,602
$7,650
$48,341
$22,860
$23,977
$7,650
$54,487
$27,505
$31,384
$7,650
$66,540
$33,521
$36,980
$7,650
$78,151
$43,704
$39,260
$7,650
$90,614
$0
$0
$0
$24,650
$0
$0
$0
$24,645
$0
$0
$0
$24,095
$0
$300
($300)
$24,618
$0
$600
($600)
$26,089
$0
$900
($900)
$28,370
$0
$1,200
($1,200)
$29,276
$0
$1,530
($1,530)
$42,567
$0
$1,860
($1,860)
$46,481
$0
$2,190
($2,190)
$52,297
$0
$2,520
($2,520)
$64,020
$0
$2,850
($2,850)
$75,301
$0
$3,180
($3,180)
$87,434
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Month 1
Month 2
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$0
$0
$0
$0
$147
$0
$0
$147
$95
$0
$0
$95
$1,509
$0
$0
$1,509
$1,964
$0
$0
$1,964
$2,359
$0
$0
$2,359
$2,456
$0
$0
$2,456
$3,583
$0
$0
$3,583
$4,982
$0
$0
$4,982
$5,846
$0
$0
$5,846
$7,761
$0
$0
$7,761
$8,403
$0
$0
$8,403
$9,050
$0
$0
$9,050
Long-term Liabilities
Total Liabilities
$20,000
$20,000
$20,000
$20,147
$20,000
$20,095
$20,000
$21,509
$20,000
$21,964
$20,000
$22,359
$20,000
$22,456
$20,000
$23,583
$20,000
$24,982
$20,000
$25,846
$20,000
$27,761
$20,000
$28,403
$20,000
$29,050
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$7,300
($2,650)
$0
$4,650
$24,650
$7,300
($2,650)
($152)
$4,498
$24,645
$7,300
($2,650)
($650)
$4,000
$24,095
$7,300
($2,650)
($1,542)
$3,108
$24,618
$7,300
($2,650)
($525)
$4,125
$26,089
$7,300
($2,650)
$1,361
$6,011
$28,370
$7,300
($2,650)
$2,171
$6,821
$29,276
$18,000
($2,650)
$3,635
$18,985
$42,567
$18,000
($2,650)
$6,149
$21,499
$46,481
$18,000
($2,650)
$11,101
$26,451
$52,297
$18,000
($2,650)
$20,909
$36,259
$64,020
$18,000
($2,650)
$31,548
$46,898
$75,301
$18,000
($2,650)
$43,034
$58,384
$87,434
$4,650
$4,498
$4,000
$3,108
$4,125
$6,011
$6,821
$18,985
$21,499
$26,451
$36,259
$46,898
$58,384
Net Worth
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