Business Plan for Power1 Cyberservices: LSC, Computer Services

This document presents a business plan for Power1 Cyberservices, a company providing computer and technical consulting services to small businesses and home PC users in the London area. Initially a sole proprietorship, Power1 transitioned to a Limited Company to accommodate growth. The plan details the company's mission, vision, and objectives, focusing on marketing, responsiveness, quality, and customer relationship management. It includes a market analysis identifying target customers and their needs, a description of services offered, and a financial plan outlining start-up costs, revenue projections, and break-even analysis. The plan also covers competitive strategies, marketing approaches, and management structure, providing a comprehensive roadmap for Power1 Cyberservices' success. Desklib provides access to this and other solved assignments.

Business plan
Power1 Cyberservices

Executive summary
Main aim of this report is to create a business plan. Therefore, this report will include a
business plan that isPower1. It will provide computer and technical consulting (repairs, training,
networking and upgrade service) to local small businesses as well as home PC users. The
company will focus on marketing, responsiveness, quality, and creating and retaining customer
relations.Power1 was initially formed as a sole proprietorship, but was reconfigured as an Limited
Company in December of 2021.Power1 will at first be a home office start-up, utilizing one studio
room in the owner's home and serving customers in the local London area. In the third month of
our plan, we will move into a leased office space and hire a second technician. As sales increase,
we will hire additional personnel. It will encourage clients to register their software and use the
software's own support options to their full potential. This report will be based on the secondary
data collection as the data will be gathered form secondary source including internet, book, news
paper and other agencies. The market analysis will be helpful for respective company to analyses
the market condition. It makes enable the organization to run their business accordingly.

Chapter 1 - Introduction

1.1 Rational of the business opportunities
The very nature of the computing industry, with its extraordinary rate of technological
development, creates a constant need for businesses skilled in updating and advising customers on
computer-related issues. In town, the majority of potential customers are dissatisfied with existing
options, creating an attractive niche for an innovative start-up. Small business PC users will
provide the majority of our business revenue (Kar and Navin, 2021). Business Week expects the
computing industry to grow at a rate of 12% and the processor speeds to continue to expand for
years to come, providing a rich resource for sales. We can also offer maintenance agreements that
generate additional monthly income. For our residential customers, we will offer a very affordable
and helpful service with a very flexible schedule to meet their needs. Our target market will focus
on London and the surrounding areas. Market research indicates there is an abundance of business
for a small company such asPower1. It will encourage clients to register their software and use the
software's own support options to their full potential. This report will be based on the secondary
data collection as the data will be gathered form secondary source including internet, book, news
paper and other agencies. The market analysis will be helpful for respective company to analyses
the market condition. It makes enable the organization to run their business accordingly.
1.2 Scenario chosen
Business idea is considered as a brief description of a thought or and idea behind a
business. It define key customer problems and seek to solve the issues, articulate how ideas are
applied to market and provide clear direction in which a business plan is procession. Business
thought is an organisation plan that produced by the company in order to make profit. In a
business plan, company analyse their target market and put them at a position in order to make
them different form their competitors As there is requirement for the technology graduation,
business require innovation to service in market. Therefore, by consider requirement of the
organisational environment, company bring some new ideas to perform effectively (Kumar,
Singh and Kumar, 2021). From the very first day, we will offer on-site repair and consulting
services, so that our clients don't need to take time out of their busy days to haul a computer in
to our workshop. This is the single biggest frustrationPower1 has seen among small business
owners needing computer help. Much of our diagnostic equipment is portable, and we will
remove a PC to our workshop only when the problem requires more detailed diagnosis

or repair. We will also offer free pick-up and delivery of PCs needing repair. To meet the
growing demand for this service, we will purchase a company vehicle in the third month.
Key success
 Establishing a brand identity and generating brand recognition through marketing.
 Responsiveness: being an on-call computer paramedic with fast response time.
 Quality: getting the job done right the first time, offering 100% guarantee.
 Relationships: developing loyal repeat customers--retainers.
1.3 The Mission
Our goal is to set the standard for on-site computer solutions through fast, on-site service
and response. Our customers will always receive one-on-one personal attention at a very
affordable price. Our customers will receive the highest quality of customer service available. Our
employees will receive extensive training, a great place to work, fair pay and benefits, and
incentives to use their own good judgement to solve customers' problems.
1.4 The Vision
Its vision is to create a strategic approach to manage the information technology
department and functions in the business environment. It set the way for the innovative ideas on
how to achieve it. Power1 want to provide best quality of the customer services. For this,
respective Company decide to provide training to its employees so that they can understand that
how this new innovation works. It makes the employees more skilled and become able to provide
good customer service.
1.5 The Aim
 To maintain an effectual industry standard 20% gross profit margin with the reasonable
operating expense.
 To generate a sensible profit in second year.
1.6 The Objectives
 To provide the best service available to the community at an affordable price.
 To generate substantial market share so thatPower1 is a common name.
 Constant growth in sales from start up through year three.

 To generate customer satisfaction so that at least 40% of our customer base is repeat
business.
1.7 Structure of business plan- sign Posting
There are various business structure in organisation. These structure include partnership,
holding companies, corporation, non profit, sole proprietorship, subsidiaries and limited
liability companies. In relation to, Power1 was initially envisioned as a sole proprietorship
in the owner's home. Sole proprietorship is considered as an unincorporated business by
single individual. The freelancers and other self employed people are, in the legal term,
operating a sole proprietorship. I had chosen this structure as it is very easiest kind of to
establish an enterprise and take apart, due lack interference of the government regulations.
However, recent feedback from our marketing outreach has suggested a much higher sales
potential than originally imagined, and Power1 has been reformed as a Limited Company.
This change will provide additional legal protection for the owner, and will also streamline
the financial operations of the company as we expand the personnel to 5 within the next
three years, lease a separate space for offices, and purchase company vehicles and cell
phones (Reyes‐Rodríguez and Ulhøi, 2022). I have 3 years of experience in the fields of
technical support, networking, and computer training and repair. I also spent the last two
years as the manager of a custom computer building and repair store, and I understand the
computer needs of small businesses.
Chapter 2 – The business concept
2.1 Introduction
Power1 is a Limited Company located in London, owned by me. With a small 3-year
loan,Power1 will grow in one year from a one-man, home-office based repair shop to a profitable,
3-person business in a leased location. We will build the necessary infrastructure to quickly and
efficiently respond to customers' computer needs, guaranteeing speedy, friendly, competent, and
cost-effective technical support.
2.2 Description of the Business concept
Total start-up expenses include initial expenses for establishing our website, setting up the
business, and doing our pre-opening advertising. Exact allocations are shown in the table.

The bulk of our start-up requirements are asset needs: we need diagnostic and repair
equipment, half of which will be contributed to the business by the owner from his own
materials (Chen, Hou and Chang, 2021). We are treating this equipment as assets because we
expect it to last at least three years, and to have some resale value when we are through with
it; we will buy additional expensed equipment in years two and three. We also need start-up
inventory which includes RAM, spare hard drives, cables, and cases. Although we will keep
expenses to a minimum for the first three months, before we move, we will also need cash at
start-up, to see us through the next several months with a positive cash balance.
2.3 The product and service description
Power1 will offer computer repairs, training, networking and upgrade service to clients in
two major categories: home PC users and small business users. AsPower1 and the client demands
grow, we will offer software development to our business clients.
We will also offer extended maintenance contracts, so that business clients can deal with technical
support and repair needs as a single line-item expense, rather than having to plan for unexpected
crashes and problems with a rainy-day fund they may never use. Maintenance contracts yield a
high gross margin for us, and provide peace of mind for the customer (Mushafiq, 2021).
2.4 The Target Market
Home PC User
Our home PC user market includes non-tech-savvy residents of the local area (15 mile
radius), generally between the ages of 30 and 70, with at least one home computer. We are not
expecting income from users below 30, who tend to be more comfortable with technology and
willing to attempt repairs and upgrades on their own, without seeking professional assistance.
Such home users generally own a computer to do email, play games, write letters, scan and print
photos, and occasionally to do bookkeeping or taxes. Home PC users with more sophisticated
applications generally have enough tech savvy, from tech experience at work, to do their own
repairs and upgrades. Their hardware needs will include the computer itself, monitors, keyboards,
mouse, printer, and scanner (Patidar and Srivastava, 2022).
This group is growing slightly faster than the overall population growth in our area, in part due to
the increasing demand for computers among retired people and young families, about 7% a year.

Small Business Users
Small business users will provide the majority of our business revenue. The small business
market will be defined as customers within a 15 mile radius, with 2 or more computers or a
network which they use for business purposes at least 25% of the time. Their business use may
include minor usage, such as updating a business website for a brick-and-mortar store, keeping the
books, designing graphics or ad campaigns, and writing copy for press releases. It may also be
more extensive, incorporating inventory tracking, POS systems, customer databases, online
product/service delivery, or product development. The more intensive their computer usage for
business, the more critical it is to them that their technology work well and reliably, and that
quality repairs and support are available in a crisis. Their hardware needs will include the same
items as home users, plus servers, backup systems, data storage, and wireless networking (Wang
and Cheng, 2021).
The portion of the small business market we are targeting is growing at around 2% a year.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Home PC Users 7% 25,000 26,750 28,623 30,626 32,770 7.00%
Small Business
Users
2% 10,000 10,100 10,201 10,303 10,406 1.00%
Other 0% 0 0 0 0 0 0.00%
Total 5.39% 35,000 36,850 38,824 40,929 43,176 5.39%

Home PC Users
Small Business Users
Other
Market Analysis (Pie)
Although there are more potential customers among home PC users, we expect the
majority of our revenue to come from small business clients, since their need for our services is
more urgent, and they are willing to invest in technology as part of their business plan. The
majority of our marketing efforts will thus be focused on small business owners. These customers
typically don't have a full-time IT person, but have full-time IT needs. Home PCs are often used
by multiple people, and serve multiple purposes. Our home PC users need help with managing
their settings to integrate the different needs of all household members as much as they need
technical assistance.
2.5 Positioning Strategy
The positioning strategy is considered a marketing strategy, that refer how a brand or
company want to be perceived in customer's mind relative to the competing brand. Objective of
the positioning strategy is to establish single defining characteristic of brand in customer's mind.
In relation to the It clearly communicate its sourcing methods and other commitments to the
sustainability. In relation to thePower1, it positioning itself as it online service that reduce time
and save of the clients. It provide a satisfactory services so that small business can operate
efficiently.

2.6 Value added
The value added refers to an additional feature and economic value which a business add
to their product or services before offering the to its customers (Hadro and et. al., 2021). The
adding value to a service or product help organisation to gain attention of more customers, that
boost profit and revenue of the company. In relation to the Power1, it will provide its service with
a very low price to the small business and also help these business in getting other benefits
including discount, offer and schemes.
2.7 Who is involved
This company is based on sole proprietorship. There are various stakeholder of the business which
are mentioned below:
 Customers- These are actual stakeholder of an organization as business exist in market to
serve the customers. In relation to thePower1, customers are its stakeholders as they
impacted by the product's quality and their values.
 Employees- These are direct stake in aPower1 and earn the income to support themselves
with other advantages. Depending on business's nature, employee may also have safety and
health interest (Barrow, C., Barrow, P. and Brown, R., 2018).
 Investors- The investor include both the debt holders and shareholders. The shareholder
invest their capital in business with the intention to earn certain rate of the return on their
invested capital. In relation Power1, its investors are concerned towards the concept of the
shareholder value. They invest in this restaurant with the purpose to earn profit
 Government- These are major stakeholder in the business. In relation to thePower1,
government collect tax form them, as well as from all people it employees and from the
otherPower1 incurs (Hopp, and et.al., 2018).
 Communities- These are another major stakeholder in a business. In relation to
thePower1, communities are impacted by wide rang of the things including economic
development, job creation, health and safety.
2.8 Window of the opportunities
The window opportunities are considered as short period of the time in which key decision
can be taken that will produce the desired outcome. The windows of an opportunity are frequently
fleeting, and of window close before decision is make, chance can be lost for ever as there is high
demand of good technology in business environment to take decision and other organizational

activities. Therefore, in relation to Power1, it has an opportunity to to provide its service to small
business as it is a good time to explore these ideas otherwise with a passage of time other
technology will replace it (SAVE, and et.al., 2021).
2.9 Chapter summary
From the above discussion it is find out that business concept give an idea to start a
business. It give a complete brief regarding what the organization is going to provide in term of
product and services. It help the new business to segment their target market into different
segments and help to choose such segment which is very profitable for the company. In relation to
Power 1, this company has added a unique value proposition so that it can attract more clients.
This value added plan make the firm different form other. As there are several window
opportunities are come timely, so it is essential for Power 1 to grab these opportunity instantly that
help them to grow within the market in an efficient manner.
Chapter 3 – Literature review
3.1 Introduction
According to Kar, A.K. and Navin, L., 2021, Industry analysis us undertake in stock
selection and valuation as it is assist an analyse to misunderstand health of an industry, growth
opportunities of the issuers and business risk. Industry analysis is a tool that show case
organisational position concerning other business producing similar product and services. In this
report,Power1 has uses the industry analysis including PESTEL analysis and Porter five forces as
it will help them to know the market situation and those factors that can impact respective IT
business adversely.
3.2 Industry analysis
The industrial analysis is refer to a assessment tool which is designed for offering the business
entity a comprehensive idea about complex nature of a particular industry (Marcelli, M.,
2019). In relation to thePower1 there are certain factors that may have a great impact on it.
These factors are mentioned below:
PESTEL analysis

There is a detailed PESTEL analysis of the Power1 restaurants. This framework include
certain factors which are mentioned below:
 Political factor- This factor include trade restrictions, tax policy, political stability,
traffics and many more (Van den Berghe, and et.al.,2019). In relation to the Power1,
government taxation policies may change the total revenue generating system of it. Certain
trade barriers can become a hinder in the way this project.
 Economic factors- It include interest, wages rate, unemployment, economic growth, cost
of living and many more. In relation to the Power1, this project will help in economy's
growth a sit provide training to the people that work effectively to generate more profit.
Thus it can create a boost within country's economy.
 Social- It include, cultural expectation and norms, career attitudes, age, population growth
rate and many more (Pereira, M.C., 2018).Power1 has decided to focus mainly on the
small business market, as these customers typically don't have a full-time IT person, but
have full-time IT needs.Power1 will offer an affordable, on-demand service for these
customers.
 Technology- It is most significant element in industry analysis that include growth and
innovation within that industry. It include development and innovation in technology. This
element impact the organisational operation. In relation to thePower1, in making this
project latest technology is used that give a competitive advantages to the company as
well as the user. Machine, artificial intelligence and deep learning aid to made this project.
All these technology will help to get a success in this project within market.
 Legal- Brand has to comply with the legal requirements in order to do their business
business efficiently. Business have to focus more on the company's law, environmental law
and investment regulation to abide by them as it is essential for them that they comply with
the rules strictly This element include access to material, change to legislation effecting the
employment (Buterbaugh, J.S., 2020). During making this project,Power1 fulfil their all
legal responsibility as they follow all the rules and regulation made by government
regarding employment and organisational structure.

 Environmental-This factor is mainly focus on impact of the surrounding environment and
influences of all the ecological aspects. It is essential for andPower1 to make efforts for
sustainable practices so that the environment remain pure. This project should harm the
environment
Porters five forces
 Competitive rivalry- this factor analyse force of the competition in market. It consider
number of the existing rivals and what they can do. In relation to Power1 threat of the
competitive rivalry is low as to make such project or innovation require large number of
the resources including human capital, machine, training and many more. Therefore it is
not possible for every company to make this type of innovation due to lack of resources.
 Buying power of supplier- this force analyse power of a supplier to raise the price for the
raw material. In relation to the Power1, power of the suppliers is low as if its supplier will
demand for more price, then the company can switch to other suppliers as there are various
supplier in market who can provide the required raw material.
 Bargaining power of customer- It examine power of consumer and their impact on
quality or pricing (Veloso, M.T.D.R., 2018). In relation to the Power1, threat of the
customer power is high as if company will charge more amount form the customer then
customer have an option to shift form that company to another organisation.
 Threat of new entrants- This factor determine that how its is easy for challenging for
other competitors to join marketplace. In relation toPower1, threat of new entrant is very
low as to enter within respective industry, it require a lot of the capital or fund. So it is
very difficult for company to arrange much fund to enter in this field. Barriers to entry
involve access to the inputs, absolute cost advantages, strong brand identity and economies
of scale.
 Threat of substitute- This force studies that how it is easy for customer to shift from a
product and service to other product (Hajar, I.and et. al., 2018). In relation to the Power1,
threat of substitute of is high as there are various substitute of same service, can get at a
reasonable price with quality. If Power1 make any unethical practise then, its customers
will shift towards other substitute.

3.3 Chapter summary
From the above discussion, it is analysed that when a company make industry analysis,
then its essential for the business to conduct a research based on the PESTEL analysis and and
also examine the Porters five forces. As by analysing the PESTEL matrix, company become able
to understand a wider term of the business environment. The porter five force, helpPower1 to
understand the element that impacting their profitability in that industry. These analysis encourage
development of the strategic and external thinking that will be helpful for business to remain
updated about the market condition efficiently
Chapter 4 - Feasibility/Methodology
4.1 Introduction
Market research is considered as a process of gathering and examining the information
related to the customer's requirement (Gomes, H.D.A. and Silva, B., 2020). This part will include
about the market research of thePower1, organisational feasibility, mode of research and so on.
4.2 Market Research
Personal market research by the owner indicates an attractive market niche for our
services, of whichPower1 will take full advantage. The very nature of the computing industry,
with its extraordinary rate of technological development, creates a constant need for businesses
skilled in updating and advising customers on computer-related issues.
Power1 will provide computer support in both a consulting and technical capacity to small
business owners as well as home PC users. SincePower1 is currently a one man operation, its
growth in the first three months will be limited by the owner's capacity to complete work.
However, these first three months are critical for establishing our credibility and a reputation for
getting the job done quickly and well. We will focus on delivering excellent service, and using the
good word of mouth from this initial period to network with other potential clients (Gimeno Vidal,
N., 2018).

Customers are seeking skilled help with everything from installation of software and hardware
components, to networking, to transferring files from an old computer to a new one. Those who
can often enlist their tech-savvy children's help, but others are not so fortunate, and small-business
owners need reliable and quick help with all their computer needs, since every hour down may
mean an hour or more of lost revenue, especially for any business with a website or those doing e-
commerce.
4.3 Market analysis- from primary and secondary data collection
Secondary market research shows computer service customers tend to be very loyal to
providers that do good work and satisfy their needs. An analysis ofPower1's main competitors
shows no overwhelming strengths that would be significant barriers to entry into the market, as
our local competitors have serious weaknesses.
The computer maintenance and repair industry is fragmented, with a few large, national
players and hundreds of small, local stores. While most computers are actually repaired in-
store, near the customer, parts for the repair come from major manufacturers and distributors;
delays in receiving necessary parts can significantly slow down the repair process. Large
chains have solved this problem by keeping vast amounts of inventory in stock at all times,
while local stores offer customers the trade-off of personal interaction and trust that may make
up for some delay (Shaikh, N.R., 2020).
Customers choose computer repair and assistance services based on reputation, previous
experience, and price. They may choose to return to a mediocre provider with whom they're
familiar, rather than try out a new unknown company about whom they've heard nothing. Large
stores, especially the service departments of national chains, have a great advantage simply in
their affiliation with an established brand. Establishing our brand identity and a great reputation in
the first few months is critical to our success. Once we have broken in to the local market, our
great service will turn new clients into permanent clients.
Our services will be second to no one and our prices will be very reasonable for the high quality
service we offer. By providing superior service, word of mouth alone will bring in many new

clients. The satisfaction our consumers find will keep them coming back. There are two main
competitors for the computer upgrade and repair business in this area:
1. Competitor A. They are a well established provider of computer upgrades and services,
and do quick work. However, they have a high staff turnover, a young and inexperienced
staff, and are more interested in selling new components than in maintaining existing
machines or finding custom solutions. They do not offer any kind of pick-up and drop-off
service, and do not offer on-site help. They really only offer hardware support.
2. Competitor B. Smaller and less known then A, B provides many services for residents
living in east and south parts of town (Gryn, M.P., 2021). They are more willing to spend
time with a client, figuring out exactly what his or her needs are, and suggesting new
options than competitor A. However, they have an inefficient ordering system and an
unkempt shop, which deters potential customers and can turn existing customers to the
competition. They also do not offer on-site services, although they are considering
instituting a trial pick-up/drop-off service. They are in the best position to copy our
innovations and steal customers, but their management is complacent and may not respond
to competition.
Both of these companies charge rates in excess ofPower1; we will be able to attract the price-
sensitive market without much work.
4.4 Product/service feasibility
We will offer limited software support (installation and compatibility issues), and focus on
hardware and networking support - this is a vital distinction, since software is evolving much more
rapidly than hardware, and our clients will have such diverse software needs that we couldn't
possibly keep up with all of them. We will encourage clients to register their software and use the
software's own support options to their full potential. We will, however, keep up to date with
multiple operating systems and networking developments, working with clients to make sure they
have the most appropriate combinations of hardware, OS, networking, backup systems, and
software. Backup and security are becoming higher priorities for all our potential customers, as

internet usage (and its pitfalls) becomes more common, and as more and more daily records are
stored electronically.
 A value proposition of timely and practical solutions, at a reasonable rate, coupled with a
100% guarantee.
 Exploiting our competitors weaknesses: a competitive edge based on quick, effective, and
sympathetic customer service, which meets the customer where his needs are, rather than
trying to fit him into an existing box.
 Quickly establishing a brand identity and developing a great reputation among local
customers to generate word of mouth advertising (MARANI, T., 2021).

4.5 organisational feasibility
Main aim of the organisational feasibility is to assess progress of the management and
sufficiency of the resources in order to bring their ideas or product in market. In relation to the
Power 1 it measure its software product or item in term of how much beneficial its product
development will be for respective company in a practical point of view.
Projected Profit and Loss
The table below shows our projected profit and loss. There are two lines for direct cost of sales
- the second line shows projected inventory costs of fulfilling our maintenance contracts. The
marketing/promotion line shows our planned advertising program expenses. Although these
are aggressive, we must spend heavily in the first year in order to establish the brand
recognition that will help us break in to the local market.
This table also shows our projected expense increases as we hire more employees and move
into a larger rented space. Before the move, the owner will absorb expenses related to utilities.
In years two and three, we have budgeted for additional expensed equipment to expand our
diagnostic and repair capabilities to keep up with orders (Hague, 2021).
We are seeking a modest net profit in the first year. As our reputation grows, we will see
higher revenues and net profit over the next three years.

Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
£0
£3,000
£6,000
£9,000
£12,000
£15,000
£18,000
£21,000
£24,000
£27,000
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Gross Margin Monthly
£0
£30,000
£60,000
£90,000
£120,000
£150,000
£180,000
£210,000
£240,000
Year 1 Year 2 Year 3
Gross Margin Yearly

Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales £203,030 £276,000 £328,500
Direct Cost of Sales £42,604 £55,800 £64,350
Costs of Fulfilling Maintenance
Contracts
£1,488 £4,320 £6,120
Total Cost of Sales £44,092 £60,120 £70,470
Gross Margin £158,938 £215,880 £258,030
Gross Margin % 78.28% 78.22% 78.55%
Expenses
Payroll £69,000 £110,000 £115,000
Marketing/Promotion £28,000 £6,000 £12,000
Depreciation £0 £0 £0
Lease £10,000 £12,000 £12,000
Expensed Equipment £0 £10,000 £12,000
Insurance £3,150 £1,200 £1,200
Website £2,080 £480 £480
Answering Service £200 £2,400 £2,400
Mileage £2,660 £5,400 £5,400
Vehicles £13,200 £15,000 £17,000
Cell Phones £1,260 £1,260 £1,260
Utilities £5,000 £6,000 £7,000
Internet £1,200 £1,200 £1,200
Moving Expenses £2,000 £0 £0
Total Operating Expenses £137,750 £170,940 £186,940

Profit Before Interest and Taxes £21,188 £44,940 £71,090
EBITDA £21,188 £44,940 £71,090
Interest Expense £1,097 £6,570 £2,139
Taxes Incurred £6,027 £11,511 £20,685
Net Profit £14,064 £26,859 £48,266
Net Profit/Sales 6.93% 9.73% 14.69%
Chart: Profit Monthly
£0
£2,000
£4,000
£6,000
£8,000
£10,000
(£2,000)
(£4,000)
(£6,000)
(£8,000)
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Profit Monthly

Chart: Profit Yearly
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Year 1 Year 2 Year 3
Profit Yearly
Projected Cash Flow
The Cash Flow chart, below, shows our projected cash position for the first year; the table
following it shows highlights for the first three years. With the requested start-up funding, we
will maintain a positive cash balance throughout, and repay the loan within three years.

Chart: Cash
Table:
Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales £203,030 £276,000 £328,500
Subtotal Cash from Operations £203,030 £276,000 £328,500
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
Net Cash Flow
Cash Balance
£0
£10,000
£20,000
£30,000
£40,000
£50,000
(£10,000)
Mont h 1
Mont h 2
Mont h 3
Mont h 4
Mont h 5
Mont h 6
Mont h 7
Mont h 8
Mont h 9
Mont h 10
Mont h 11
Mont h 12
Cash

Sales of Long-term Assets £0 £0 £0
New Investment Received £0 £0 £0
Subtotal Cash Received £203,030 £276,000 £328,500
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending £69,000 £110,000 £115,000
Bill Payments £110,873 £142,543 £163,375
Subtotal Spent on Operations £179,873 £252,543 £278,375
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out £0 £0 £0
Principal Repayment of Current Borrowing £6,564 £6,550 £6,111
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 £186,437 £259,093 £284,486
Net Cash Flow £16,593 £16,907 £44,014
Cash Balance £44,593 £61,500 £105,514
Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 7379, Computer Related Services, (NAICS
811212) are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry
Profile
Sales Growth n.a. 35.94% 19.02% 5.23%
Percent of Total Assets
Inventory 8.22% 9.07% 5.90% 2.79%
Other Current Assets 16.81% 12.72% 8.15% 51.19%
Total Current Assets 100.00% 100.00% 100.00% 75.09%
Long-term Assets 0.00% 0.00% 0.00% 24.91%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 42.77% 22.55% 11.07% 31.75%
Long-term Liabilities 0.00% 0.00% 0.00% 18.48%
Total Liabilities 42.77% 22.55% 11.07% 50.23%
Net Worth 57.23% 77.45% 88.93% 49.77%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 78.28% 78.22% 78.55% 100.00%
Selling, General & Administrative
Expenses
38.70% 65.72% 64.96% 80.06%
Advertising Expenses 0.00% 0.00% 0.00% 1.23%
Profit Before Interest and Taxes 10.44% 16.28% 21.64% 1.95%
Main Ratios
Current 2.34 4.43 9.03 1.53
Quick 2.15 4.03 8.50 1.24
Total Debt to Total Assets 42.77% 22.55% 11.07% 57.27%
Pre-tax Return on Net Worth 59.02% 63.01% 63.16% 2.73%

Pre-tax Return on Assets 33.78% 48.80% 56.17% 6.39%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 6.93% 9.73% 14.69% n.a
Return on Equity 41.32% 44.10% 44.21% n.a
Activity Ratios
Inventory Turnover 10.25 9.29 8.96 n.a
Accounts Payable Turnover 9.67 12.17 12.17 n.a
Payment Days 27 32 28 n.a
Total Asset Turnover 3.41 3.51 2.68 n.a
Debt Ratios
Debt to Net Worth 0.75 0.29 0.12 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital £34,039 £60,898 £109,163 n.a
Interest Coverage 19.32 6.84 33.24 n.a
Additional Ratios
Assets to Sales 0.29 0.28 0.37 n.a
Current Debt/Total Assets 43% 23% 11% n.a
Acid Test 2.15 4.03 8.50 n.a
Sales/Net Worth 5.96 4.53 3.01 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Projected Balance Sheet
The Balance Sheet shows a steadily increasing net worth over the next three years. Since we
are planning to rent, and because computer technology changes so rapidly, we will have only

short-term assets, such as computer equipment and furniture. This will make our net worth
much more liquid than many similar businesses.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash £44,593 £61,500 £105,514
Inventory £4,890 £7,129 £7,239
Other Current Assets £10,000 £10,000 £10,000
Total Current Assets £59,482 £78,629 £122,753
Long-term Assets
Long-term Assets £0 £0 £0
Accumulated Depreciation £0 £0 £0
Total Long-term Assets £0 £0 £0
Total Assets £59,482 £78,629 £122,753
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable £12,783 £11,620 £13,590
Current Borrowing £12,661 £6,111 £0
Other Current Liabilities £0 £0 £0
Subtotal Current Liabilities £25,444 £17,731 £13,590
Long-term Liabilities £0 £0 £0
Total Liabilities £25,444 £17,731 £13,590

Paid-in Capital £23,000 £23,000 £23,000
Retained Earnings (£3,025) £11,039 £37,898
Earnings £14,064 £26,859 £48,266
Total Capital £34,039 £60,898 £109,163
Total Liabilities and Capital £59,482 £78,629 £122,753
Net Worth £34,039 £60,898 £109,163
4.6 Financial feasibility
It describe that weather or not a project is fiscally viable. In relation to thePower1 its
feasibility report include the cost benefits analysis of its project. In this it forecast the expenses,
ROI and also outline the financial risk (Zapata Castejón, R., 2020).
We plan to fund our total start-up requirements direct owner investment (including the contributed
assets), and a three-year loan secured with the owner's collateral (his home equity). We should be
able to easily repay this loan within three years, even with a much lower sales revenue than
projected. (See the Cash Flow table for projected repayment.)
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal £650
Website £350
Business Cards £100
Insurance £150
Uniforms £300
CPA £275
Advertisement £1,200
Total Start-up Expenses £3,025

Start-up Assets
Cash Required £28,000
Start-up Inventory £1,200
Other Current Assets £10,000
Long-term Assets £0
Total Assets £39,200
Total Requirements £42,225
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund £3,025
Start-up Assets to Fund £39,200
Total Funding Required £42,225
Assets
Non-cash Assets from Start-up £11,200
Cash Requirements from Start-up £28,000
Additional Cash Raised £0
Cash Balance on Starting Date £28,000
Total Assets £39,200
Liabilities and Capital
Liabilities
Current Borrowing £19,225
Long-term Liabilities £0
Accounts Payable (Outstanding Bills) £0
Other Current Liabilities (interest-free) £0
Total Liabilities £19,225
Capital
Planned Investment
Owner £23,000
Investor £0
Additional Investment Requirement £0
Total Planned Investment £23,000

Loss at Start-up (Start-up Expenses) (£3,025)
Total Capital £19,975
Total Capital and Liabilities £39,200
Total Funding £42,225
Chart: Start-up
Table: Balance Sheet
Pro Forma
Balance Sheet
M
o
n
t
h
1
Month 2 Month 3 Month 4 Month 5
M
o
n
t
h
6
Month 7 Month 8
Assets Starting Balances
Current Assets
Cash £28,000 £ £25,340 £23,179 £18,809 £24,647 £ £34,688 £42,145
£0
£4,000
£8,000
£12,000
£16,000
£20,000
£24,000
£28,000
£32,000
£36,000
£40,000
Expenses Assets Investment Loans
Start-up

2
7
,
6
8
8
2
9
,
4
4
4
Inventory £1,200 £
6
3
3
£898 £1,291 £2,673 £4,727 £
5
,
8
9
1
£6,644 £7,222
Other Current
Assets
£10,000 £
1
0
,
0
0
0
£10,000 £10,000 £10,000 £10,000 £
1
0
,
0
0
0
£10,000 £10,000
Total Current
Assets
£39,200 £
3
8
,
3
2
1
£36,238 £34,470 £31,482 £39,374 £
4
5
,
3
3
5
£51,332 £59,366
Long-term
Assets
Long-term
Assets
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Accumulated
Depreciation
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Total Long-term
Assets
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Total Assets £39,200 £
3
8
,
3
2
1
£36,238 £34,470 £31,482 £39,374 £
4
5
,
3
3
5
£51,332 £59,366
Liabilities and
Capital M
Month 2 Month 3 Month 4 Month 5
M
Month 7 Month 8

o
n
t
h
1
o
n
t
h
6
Current
Liabilities
Accounts
Payable
£0 £
3
,
0
3
3
£2,004 £10,130 £8,505 £13,050 £
1
4
,
6
8
0
£15,354 £15,733
Current
Borrowing
£19,225 £
1
8
,
6
7
8
£18,131 £17,584 £17,037 £16,490 £
1
5
,
9
4
3
£15,396 £14,849
Other Current
Liabilities
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Subtotal
Current
Liabilities
£19,225 £
2
1
,
7
1
1
£20,135 £27,714 £25,542 £29,540 £
3
0
,
6
2
3
£30,750 £30,582
Long-term
Liabilities
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Total Liabilities £19,225 £
2
1
,
7
1
1
£20,135 £27,714 £25,542 £29,540 £
3
0
,
6
2
3
£30,750 £30,582
Paid-in Capital £23,000 £
2
3
£23,000 £23,000 £23,000 £23,000 £
2
3
£23,000 £23,000

,
0
0
0
,
0
0
0
Retained
Earnings
(£3,025) (
£
3
,
0
2
5
)
(£3,025) (£3,025) (£3,025) (£3,025) (
£
3
,
0
2
5
)
(£3,025) (£3,025)
Earnings £0 (
£
3
,
3
6
4
)
(£3,872) (£13,219) (£14,035) (£10,141) (
£
5
,
2
6
3
)
£607 £8,809
Total Capital £19,975 £
1
6
,
6
1
1
£16,103 £6,756 £5,940 £9,834 £
1
4
,
7
1
2
£20,582 £28,784
Total Liabilities
and Capital
£39,200 £
3
8
,
3
2
1
£36,238 £34,470 £31,482 £39,374 £
4
5
,
3
3
5
£51,332 £59,366
Net Worth £19,975 £
1
6
,
6
1
1
£16,103 £6,756 £5,940 £9,834 £
1
4
,
7
1
2
£20,582 £28,784

4.7 Chapter summary
Form the above discussion, it is analysed thatPower1 has established a relationship with a local
distributor to do rapid special-ordering; although this capability is more expensive than normal
channels, it will enable us to quickly establish a reputation as efficient and responsive to customer
needs, particularly for our small business users. We will leverage this customer loyalty into great
word of mouth marketing and steady growth.
Chapter 5 - Analysis of the Business Model
5.1 introduction
Strategic analysis is that process which includes researching a company's business
environment in which it operate. The strategic analysis is significant to formulate the strategic
planning for smooth working of organisation, therefore this part will include various strategy that
are undertaken by thePower1 in order to make effective decision.
5.2 Strategic analysis of existing/new businesses idea by using SWOT
 Our marketing strategy will aggressively exploit our competitors' weaknesses. During the
start-up phase, we will run large ads in the business section of the local newspaper, asking,
"Are you fed up with poor customer service for your computer needs?" These ads will
focus on our advantages, including on-site service, competitive rates, and quick response
and turn-around times. They will announce our opening date, and include a coupon for free
diagnostic service for the first 20 customers (Zoubková, E., 2019).
 Low customer base is a more weakness of thePower1. Respective company will follow up
on these opening ads with a smaller direct-marketing campaign to small business owners,
with lists drawn from the local Chamber of Commerce. Lucian will use his contacts with
business customers from his years as a manager to create a "buzz" about this new business.
 We have an opportunity to continue periodic advertisements, including several promotions
(discounts, free diagnosis, etc.) throughout the first year. We expect a small but steady

response from home PC users who see our ads elsewhere, but will also run monthly ads in
sections other than the business one.
 We will offer a promotion during the first 90 days of business to generate business traffic
and word of mouth. Our promo is Spyware removal on any desktop PC for £70 including
tax and software. Spyware is a threat as it create huge problem for a lot of residential and
small business customers, and the offer should draw a lot of interest (.Muschal, and et.al.,
2019).
5.3 Identification of the sources of the competitive advantages and sustainability
 Quick response:Power1 will provide same day and after hours service.
 A flat rate policy: This undermines the competition, who charge by the hour. The pricing
has been set to reflect the average amount of time it takes to perform the task. With this
strategy we can undercut most competitors and gain local market power.
 On-site and pick-up/drop-off services: This will minimize the time and effort a customer
needs to put into dealing with his computer problem (Berné-Martínez, and et.al., 2021).
 Suprisingly, our small size is an advantage: customers will recognize me (and future
employees), and will know they will get the same great service every time they call.
5. 4 Selection of the strategies for success
Our marketing strategy will generate customer inquiries. We will close the deals by
offering an outstanding service and a very reasonable price. Happy customers generate repeat
business and word of mouth. Our toll free number is operational 24 hours a day, seven days a
week, and from 8am to 9pm, I will be available to answer calls. At other times, or when I am on
the phone, an answering service we have hired will catch callers and give them an estimated wait
time for a call-back; this is another step towards delivering a complete solution to our customers
(AYBEK, 2020).
Sales forecast figures are based on industry figures for the typical growth of a start-up and
reflect repeat business generated through meeting customer needs. Sales Forecast

The sales strategy is a prediction of controllable growth for the first year.Power1 will focus on
quality and attention to detail to avoid some potential pitfalls encountered by many new
businesses (Homburg, and et.al., 2019).
The predicted growth is moderate in the home PC market and in the small business
arena. However, with aggressive advertising and word of mouth, this will increase. Our
aggressive TV advertising will increase our residential and small business customer base as
well as word of mouth within the first year. Within a few months we will have the need for
additional employees to handle the work load. At that time, we will move into a leased space
with additional square footage, and buy a company vehicle to help with the on-site calls.
Our competitors average 75+ calls a month. Given that our advertising will be aggressive, we
expect the same results. The sales forecast is conservative, which gives us a chance to gauge
our experience and adjust the plan accordingly (Sun, Wu, Zeng, and Peng, 2021).
We will service all of London, and the surrounding area. We expect that the majority of our
jobs will be performed in the immediate town area. A service technician can perform an
average of 3 jobs per day. Our sales forecast predictions are less than that. With our agressive
advertising campaign we expect nominal growth. We predict it will take a few weeks for the
marketing to settle in with customers. However, we are going to offer a promo for our services
which should generate some substantial results (Rahimi,and et.al., 2021).
The one element of sales not represented in the table below is direct costs for our maintenance
contracts. We estimate these costs at 12% of sales revenue, but expect a delayed occurrence -
that is, we will sell maintenance contracts starting in February, but do not expect to actually
perform maintenance on computers guaranteed under them for the first few months. We will
incur more and more costs from these as time goes on, and the computers age - most of the
service in a maintenance contract is performed within the last quarter of the specified period.
Projections for the direct costs for these contracts can be found in the Profit and Loss Table, as
other costs of sales.

Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Home PC Unit 166 200 225
Small Business Unit 264 300 350
Promo 235 0 0
Maintenance Contracts 32 60 85
Total Unit Sales 697 560 660
Unit Prices Year 1 Year 2 Year 3
Home PC Unit £280.00 £300.00 £300.00
Small Business Unit £500.00 £600.00 £600.00
Promo £50.00 £0.00 £0.00
Maintenance Contracts £400.00 £600.00 £600.00
Sales
Home PC Unit £46,480 £60,000 £67,500
Small Business Unit £132,000 £180,000 £210,000
Promo £11,750 £0 £0
Maintenance Contracts £12,800 £36,000 £51,000
Total Sales £203,030 £276,000 £328,500
Direct Unit Costs Year 1 Year 2 Year 3
Home PC Unit £84.00 £90.00 £90.00
Small Business Unit £105.00 £126.00 £126.00
Promo £4.00 £0.00 £0.00
Maintenance Contracts £0.00 £0.00 £0.00

Direct Cost of Sales
Home PC Unit £13,944 £18,000 £20,250
Small Business Unit £27,720 £37,800 £44,100
Promo £940 £0 £0
Maintenance Contracts £0 £0 £0
Subtotal Direct Cost of Sales £42,604 £55,800 £64,350
Table: Sales Forecast
Sales Forecast
M
o
n
t
h
1
Month 2 Month 3 Month 4 Month 5
M
o
n
t
h
6
Month 7 Month 8
Unit Sales
Home PC Unit 3 5 3 15 18 2
0
20 20
Small Business
Unit
3 3 3 10 25 3
5
40 45
Promo 0 0 10 30 40 0 40 40
Maintenance
Contracts
0 1 1 2 3 3 3 4
Total Unit Sales 6 9 17 57 86 5
8
103 109
Unit Prices
M
o
n
t
h
1
Month 2 Month 3 Month 4 Month 5
M
o
n
t
h
6
Month 7 Month 8
Home PC Unit £
2
8
£280.00 £280.00 £280.00 £280.00 £
2
8
£280.00 £280.00

0
.
0
0
0
.
0
0
Small Business
Unit
£
5
0
0
.
0
0
£500.00 £500.00 £500.00 £500.00 £
5
0
0
.
0
0
£500.00 £500.00
Promo £
5
0
.
0
0
£50.00 £50.00 £50.00 £50.00 £
5
0
.
0
0
£50.00 £50.00
Maintenance
Contracts
£
4
0
0
.
0
0
£400.00 £400.00 £400.00 £400.00 £
4
0
0
.
0
0
£400.00 £400.00
Sales
Home PC Unit £
8
4
0
£1,400 £840 £4,200 £5,040 £
5
,
6
0
0
£5,600 £5,600
Small Business
Unit
£
1
,
5
0
0
£1,500 £1,500 £5,000 £12,500 £
1
7
,
5
0
0
£20,000 £22,500
Promo £
0
£0 £500 £1,500 £2,000 £
0
£2,000 £2,000
Maintenance
Contracts
£
0
£400 £400 £800 £1,200 £
1
,
2
0
£1,200 £1,600

0
Total Sales £
2
,
3
4
0
£3,300 £3,240 £11,500 £20,740 £
2
4
,
3
0
0
£28,800 £31,700
Direct Unit
Costs M
o
n
t
h
1
Month 2 Month 3 Month 4 Month 5
M
o
n
t
h
6
Month 7 Month 8
Home PC Unit 30.00% £
8
4
.
0
0
£84.00 £84.00 £84.00 £84.00 £
8
4
.
0
0
£84.00 £84.00
Small Business
Unit
21.00% £
1
0
5
.
0
0
£105.00 £105.00 £105.00 £105.00 £
1
0
5
.
0
0
£105.00 £105.00
Promo 8.00% £
4
.
0
0
£4.00 £4.00 £4.00 £4.00 £
4
.
0
0
£4.00 £4.00
Maintenance
Contracts
12.00% £
0
.
0
0
£0.00 £0.00 £0.00 £0.00 £
0
.
0
0
£0.00 £0.00
Direct Cost of
Sales
Home PC Unit £
2
5
2
£420 £252 £1,260 £1,512 £
1
,
6
£1,680 £1,680

8
0
Small Business
Unit
£
3
1
5
£315 £315 £1,050 £2,625 £
3
,
6
7
5
£4,200 £4,725
Promo £
0
£0 £40 £120 £160 £
0
£160 £160
Maintenance
Contracts
£
0
£0 £0 £0 £0 £
0
£0 £0
Subtotal
Direct Cost of
Sales
£
5
6
7
£735 £607 £2,430 £4,297 £
5
,
3
5
5
£6,040 £6,565

Chart: Sales by Year
Home PC Unit
Small Business Unit
Promo
Maintenance Contracts
£0
£30,000
£60,000
£90,000
£120,000
£150,000
£180,000
£210,000
£240,000
£270,000
£300,000
£330,000
Year 1 Year 2 Year 3
Sales by Year

Personal plan
Lucian Stoleriu will be the only employee for the first few months; his salary is directly related to
the success of the business, and will never exceed 18% of sales revenue. In the third month, we
will move to a leased office space and hire a second employee, with a third hire planned for
August, if projections are on target. We plan to hire additional part-time employees in the second
year, to better handle the increasing sales.
Our employees will be skilled professionals, with equally strong technical and people skills. It is
very important to Lucian that they be paid salaries commensurate with their abilities and
dedication- happy tech support people make for happy customers. To that end, our full-time
employees will receive health benefits (premiums split between the employee andPower1), paid
holidays, and sick time. Those benefits are included in the payroll totals listed below.
Table: Personnel
Personnel Plan
Home PC Unit
Small Business Unit
Promo
Maintenance Contracts
£0
£4,000
£8,000
£12,000
£16,000
£20,000
£24,000
£28,000
£32,000
Mont h 1
Mont h 2
Mont h 3
Mont h 4
Mont h 5
Mont h 6
Mont h 7
Mont h 8
Mont h 9
Mont h 10
Mont h 11
Mont h 12
Sales Monthly

Year 1 Year 2 Year 3
Owner £33,000 £38,000 £40,000
Tech1 £21,600 £30,000 £30,000
Tech2 £14,400 £30,000 £30,000
Part Time £0 £12,000 £15,000
Total People 3 5 5
Total Payroll £69,000 £110,000 £115,000
5.5 Development of the appropriate business model
Business model Canvas reflect in a systemically manner on a business model. So company
can focus on their business model segment by the segment. It means that company can start with
brain dump, filling out segment the spring to their mind first and then work on empty segment in
order to close the gaps.
 Key partners- In relation to thePower1 its key partners are its stakeholder, suppliers and
customers.
 Key activities- It key activity include providing the service through online and personally
to every small business (PO, F., 2019) .
 Value proposition-Power1 deliver the ethical core value to its customer as it provide the
service at a reasonable price that can be afford by a small business.
 Customer segment- The existing computer service market is so extensive that
categorizing it is rather difficult. We have broken our potential market down into two
groups, based on their needs: home PC users and small business clients.
 Distribution channel-Power1 reach at its customer through online system and personally.
5.6 Chapter summary
From the above analysis, it is concluded that strategic planning is very essential for any
business as it help them to attain the organisational goals. The strategy adopted by Power 1 are
very useful as it help them to get a place in market. Though these strategy the company become
able to reach at their target audience.

Chapter 6 - Evaluation of the Business Plan
6.1 Introduction
The following sections include the annual estimates for the standard set of financial tables.
Detailed monthly pro-forma tables are included in the appendix.
Our financial plan calls for limited growth in the first three months, followed by much higher sales
when we move and hire additional employees (Wong, 2021). These projections are based on
sound market research and ratios for comparable businesses. As we grow, we will keep our
operating expenses down, and maintain a positive cash balance as we repay our three-year loan.
6.2 An overall assessment of business plan
Power1 will be owned and managed by Lucian Stoleriu. Lucian has 10 years of experience
in the fields of technical support, networking, and computer training and repair. Lucian has also
spent the last three years as the manager of a custom computer building and repair store, and
understands the computer needs of small businesses. Lucian is adept at managing his time, and at
quickly responding to multiple customer calls and needs.
For the first three months, Lucian will be in charge of all aspects of the business. In the third
month, when another tech is hired, Lucian will shift some of his energy from directly responding
to customer needs, to training and managing others to do this work effectively. Lucian will
maintain direct control over inventory ordering and bookkeeping, and will try to do as many of the
on-site calls as possible himself. Part of our brand recognition strategy is to identifyPower1 with
Lucian's efficiency, friendliness, and technical expertise. The easiest way to associate the two is
for Lucian to be a major part of many customers' experiences with us. He will delegate technical
repairs later in the year to the techs working in the leased office space, and will also train them in
his method of direct phone support.
Lucian has worked extensively with computer technicians and support staff in the past, and
knows that they work best when given free rein within a set of mutually-agreed-upon
guidelines. The first week of each tech's employment will be dedicated to helping them
understandPower1's guidelines:

 The customer needs help, and we're here to help them;
 The customer is frustrated, upset, or confused - but that doesn't make the customer a
problem;
 The customer needs reassurance as well as solutions.
Within this framework, the techs can solve the customer's problem the best way they see fit -
Lucian is not a micro manager.
6.3 Business plan schedule...from raising capital...stage by stage... setting out key events/resources
requirement for a successful operation of business model
To get Power1 started the owner is providing cash and assets. We are also seeking a short-
term loan, to be secured with the owner's home equity, and repaid within three years. Our
conservative sales forecasts, based on industry research within the local area, project hefty sales in
year one, steadily increasing through year three. To reach these goals, we will use an aggressive
advertising campaign to exploit our competitors' weaknesses. With good cost control, we will see
a modest, yet comfortable, net profit the first year, even after moving into a leased space and
hiring additional technician (Gordon, and Langmaid, 2022).
ComputingNet magazine recently reported on the substantial need for timely and cost-effective
computer upgrades and repairs in this region; Lucian Stoleriu has seen this market need in
person, as frustrated clients waited for days or weeks for their critical components to be
returned to full capacity, with no inexpensive alternative to the existing computer repair shops
(Bull, 2021). All of our clients need technical assistance, but we are also selling peace of
mind: our clients will know that friendly, efficient help is just a phone call away. As more and
more companies switch their support services to automated call centers or touch-tone menus,
the simple reassurance of hearing another human voice on the phone within a few rings is
immeasurable. Even better is knowing that within a few hours, someone will show up and take
care of their problem.
Both the software and hardware side of the computer industry continue to turn out new and
revised computer components at alarming rates. ForPower1 this means job security well into the
future. As reported by the Wall Street Journal, there seems to be no end to the development of the

computer market. Business Week expects the computing industry to grow at a rate of 12% and the
processor speeds to continue to expand for years to come (Saputro Hidayanto, Abidin, and
Paoprasert, 2021).
Break-even Analysis
Fixed costs are projected at a monthly average for the first year. This includes payroll, moving
expenses and rent, purchase of a company vehicle, and other necessities like cell phones and
the answering service. Variable costs (inventory used in repairing or servicing computers) are
projected as well (Pereira, and et.al., 2019).
At these levels, what we need to bring in per month to break even is shown in the table and
chart below. We will reach our break-even point mid-year, although we expect sales in
November and December to dip below this level because of holidays.
Chart: Break-even Analysis
£0
£3,000
£6,000
£9,000
£12,000
(£3,000)
(£6,000)
(£9,000)
0 10 20 30 40 50 60 70 80 90 100 110
Break-even Analysis

Table: Break-even Analysis
Break-even Analysis
Monthly Units Break-even 52
Monthly Revenue Break-even £15,110
Assumptions:
Average Per-Unit Revenue £291.29
Average Per-Unit Variable Cost £70.00
Estimated Monthly Fixed Cost £11,479
6.4 Is business viable
Power1's customer base would fluctuate if there was a recess in the economy or other
extenuating circumstances that pertain directly to consumer or industry behaviour. However,
given the steady increase in computer users despite the recent recession, we assume that sales
forecasts are unlikely to be dramatically altered by economic events. The table below shows some
of our other assumptions.
Table: General Assumptions
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 7.00% 70.00% 70.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

6.5 Discuss critically failure and success factors
The Success factors
Our success factor or milestones, listed in the table below, outline the major events that
will promote, as well as insure the success ofPower1 and keep it a going concern well into the
future. We will measure our success in meeting these milestones every month, and adjust the plan
to keep up with our objectives. Name recognition, in particular, is very important to breaking into
this market - we will conduct a survey by calling 200 randomly selected small businesses from the
Chamber of Commerce listings on the specified dates and asking them whether they have heard
ofPower1, and if so, what their impression is of our service. If any of the respondents have
actually used our services, we will elicit feedback on their experience with us, and suggestions for
improvement. We will also ask if they would recommend us to a colleague.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Procurement of
materials for opening
12/1/2021 2/1/2022 £1,200 JMH Department
Start-up Ad Campaign 12/15/2021 2/6/2022 £1,200 JMH Department
Get Loan Approved 1/1/2022 1/17/2022 £0 JMH Department
Open Business 2/7/2022 2/8/2022 £0 JMH Department
Name Recognition by
5% of potential market
2/28/2022 2/28/2022 £0 JMH Department
Meet with Leasing
Agent
3/1/2022 3/10/2022 £0 JMH Department
Interview potential
Techs
3/1/2022 4/25/2022 £0 JMH Department

Move into Leased
Space
4/1/2022 4/10/2022 £2,000 JMH Department
Sign on Leased
Vehicle
4/15/2022 4/20/2022 £6,000 JMH Department
Targeted Ads Begin 4/15/2022 5/15/2022 £4,000 JMH Department
1st Tech Starts 5/1/2022 5/1/2022 £0 JMH Department
2nd Round Tech
Interviews
7/1/2022 7/31/2022 £0 JMH Department
Direct marketing to
Small Businesses
7/1/2022 9/30/2022 £8,000 JMH Department
Increase Name
Recognition to 20%
8/1/2022 8/2/2022 £0 JMH Department
2nd Tech Starts 8/1/2022 8/7/2022 £0 JMH Department
Totals £22,400
Chart: Milestones
Dec `04Jan `05Feb Mar Apr May Jun Jul Aug Sep
Increase Name Recognition to 20%
2nd Round Tech Interviews
Targeted Ads Begin
Move into Leased Space
Meet with Leasing Agent
Open Business
Start-up Ad Campaign
Milestones

Failure factors- In relation to thePower1, its failure factors is ineffective team, as it team is not so
cooperated. Due to this there were some obstacle that crate a hinder in the completion of this
achievement(McKercher, 2020).
6.6 Chapter summary
Our projected growth is much higher than the industry average; in part, this is because we
are a start-up, growing sales steadily in these first three years. We are sure that our sales forecast is
conservative, given the dissatisfaction among local computer users with existing options, and our
planned aggressive marketing campaign.

REFERENCES
Books and Journals
AYBEK, T., 2020. Personnel Marketing as a Means of Labour Market Research. International
Journal of Innovations in Engineering Research and Technology, 7(09), pp.83-87.
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
Berné-Martínez, J.M., and et.al., 2021. Reacting to the paradigm shift: QCA study of the factors
shaping innovation in publishing, information services, advertising and market research
activities in the European Union. Technological Forecasting and Social Change, 162,
p.120340.
Bull, D.M., 2021. Threat Landscape 4.0: An Analysis of Four Key Industry 4.0-Cyber Supply
Chain Technologies and Threats to SMEs (Doctoral dissertation, Utica College).
Buterbaugh, J.S., 2020. Feasibility study and business plan for the restructuring of a university
health center. Salisbury University.
Chen, G., Hou, F., Li, J. and Chang, K., 2021. Decoupling analysis between carbon dioxide
emissions and the corresponding driving forces by Chinese power industry.
Environmental Science and Pollution Research, 28(2), pp.2369-2378.
Gimeno Vidal, N., 2018. Design and business plan for a library occupancy app.
Gomes, H.D.A. and Silva, B., 2020. Business plan for a portable mini-fridge: Frigo Everywhere
(Doctoral dissertation).
Gordon, W. and Langmaid, R., 2022. Qualitative market research: a practitioner's and buyer's
guide. Routledge.
Gryn, M.P., 2021. Developing a Business Plan for a New E-commerce Enterprise (Doctoral
dissertation, Katedra Finansów i Systemów Finansowych).
Hadro, D. and et. al., 2021. What do stakeholders in the construction industry look for in non-
financial disclosure and what do they get?. Meditari Accountancy Research.
Hague, P., 2021. Market research in practice: An introduction to gaining greater market insight.
Kogan Page Publishers.
Hajar, I., Abdul Rahim, F.L., Mohd Zaidi, F.L. and Kudang, V.B.M., 2018. ENT 530 Business
Plan: Edible Water Bottle.
Homburg, C., and et.al., 2019. Handbook of market research. Springer International Publishing.
Hopp, and et.al., 2018. Revisiting the influence of institutional forces on the written business
plan: a replication study. Management Review Quarterly, 68(4), pp.361-398.
Kar, A.K. and Navin, L., 2021. Diffusion of blockchain in insurance industry: An analysis through
the review of academic and trade literature. Telematics and Informatics, 58, p.101532.
Kumar, P., Singh, R.K. and Kumar, V., 2021. Managing supply chains for sustainable operations
in the era of industry 4.0 and circular economy: Analysis of barriers. Resources,
Conservation and Recycling, 164, p.105215.

MARANI, T., 2021. Il Business Plan come strumento per lo sviluppo delle start-up: il caso
Satispay.
Marcelli, M., 2019. Industry 4.0 and business intelligence: business plan development for a new
software launch in the market (Doctoral dissertation, Politecnico di Torino).
Mat Ariffin, A.S. and et. al., 2019. Business Plan: Yours Maid Laundry.
McKercher, B., 2020. Cultural tourism market: a perspective paper. Tourism Review.
Muschal, E., 2019. Planung eines neuen Hotelkonzeptes: Ein Businessplan mit Berücksichtigung
der Erfolgs-und Risikofaktoren am Standort Triberg (Doctoral dissertation,
Westsächsische Hochschule Zwickau).
Mushafiq, M., 2021. Industry-level analysis of COVID-19’s impact in emerging markets–evidence
from Pakistan. International Journal of Emerging Markets.
Patidar, R. and Srivastava, V.C., 2022. Ultrasound-assisted electrochemical treatment of cosmetic
industry wastewater: Mechanistic and detoxification analysis. Journal of Hazardous
Materials, 422, p.126842.
Pereira, M.C., 2018. Business plan: Casal do Vale: rural tourism (Doctoral dissertation).
Pereira, V., and et.al., 2019. Analysing three decades of emerging market research: future research
directions. British Journal of Management, 2019(1), pp.1-12.
PO, F., 2019. Crowdfunding: analisi, strategie e creazione di un business plan per una nuova
piattaforma reward based.
Rahimi, and et. al.,2021. Business Plan ENT 300: Tiny Delight Bakery Sdn. Bhd.
Reyes‐Rodríguez, J.F. and Ulhøi, J.P., 2022. Justifying environmental sustainability in small‐and
medium‐sized enterprises: An analysis of complementary assets in the printing industry.
Business Strategy and the Environment, 31(1), pp.59-75.
Saputro, B., Hidayanto, A.N., Abidin, Z. and Paoprasert, N., 2021. Measuring service quality in
the telecommunications industry from customer reviews using sentiment analysis: a case
study in PT XL Axiata. International Journal of Innovation and Learning, 30(2),
pp.188-200.
SAVE, and et.al., 2021.
Shaikh, N.R., 2020. Business plan to focus on retail segment for IGI funds product/services
[EMBA Project].
Sun, Y., Wu, M., Zeng, X. and Peng, Z., 2021. The impact of COVID-19 on the Chinese stock
market: Sentimental or substantial?. Finance Research Letters, 38, p.101838.
Van den Berghe, and et.al., 019. Proposal business plan WRC network-December 2019. Proposal
business plan WRC network-December 2019.
Veloso, M.T.D.R., 2018. Business plan for a premium fashion brand: case Burama (Doctoral
dissertation).
Wang, L. and Cheng, Y., 2021. Exploring a comprehensive knowledge map for promoting safety
management research in the construction industry. Engineering, Construction and
Architectural Management.
Wong, W.K., 2021. Editorial statement and research ideas for behavioral financial economics in
the emerging market. International Journal of Emerging Markets.
Zapata Castejón, R., 2020. Plan de Negocio (Business Plan) para un Proyecto de
Emprendimiento.
Zoubková, E., 2019. Podnikatelský plán pro rozvoj rodinné firmy: Business plan for development
of family owned company (Doctoral dissertation, Brno University of Technology).

APPENDIX

Appendix
Table: Sales Forecast
Sales Forecast
M
o
n
t
h
1
Month 2 Month 3 Month 4 Month 5
M
o
n
t
h
6
Month 7 Month 8 Month
Unit Sales
Home PC Unit 3 5 3 15 18 2
0
20 20
Small Business
Unit
3 3 3 10 25 3
5
40 45
Promo 0 0 10 30 40 0 40 40
Maintenance
Contracts
0 1 1 2 3 3 3 4
Total Unit Sales 6 9 17 57 86 5
8
103 109 1
Unit Prices
M
o
n
t
h
1
Month 2 Month 3 Month 4 Month 5
M
o
n
t
h
6
Month 7 Month 8 Month
Home PC Unit £
2
8
0
.
0
0
£280.00 £280.00 £280.00 £280.00 £
2
8
0
.
0
0
£280.00 £280.00 £280.
Small Business
Unit
£
5
0
0
.
0
0
£500.00 £500.00 £500.00 £500.00 £
5
0
0
.
0
0
£500.00 £500.00 £500.
Promo £
5
£50.00 £50.00 £50.00 £50.00 £
5
£50.00 £50.00 £50.
Page 55

Appendix
0
.
0
0
0
.
0
0
Maintenance
Contracts
£
4
0
0
.
0
0
£400.00 £400.00 £400.00 £400.00 £
4
0
0
.
0
0
£400.00 £400.00 £400.
Sales
Home PC Unit £
8
4
0
£1,400 £840 £4,200 £5,040 £
5
,
6
0
0
£5,600 £5,600 £4,7
Small Business
Unit
£
1
,
5
0
0
£1,500 £1,500 £5,000 £12,500 £
1
7
,
5
0
0
£20,000 £22,500 £25,0
Promo £
0
£0 £500 £1,500 £2,000 £
0
£2,000 £2,000 £2,0
Maintenance
Contracts
£
0
£400 £400 £800 £1,200 £
1
,
2
0
0
£1,200 £1,600 £1,6
Total Sales £
2
,
3
4
0
£3,300 £3,240 £11,500 £20,740 £
2
4
,
3
0
0
£28,800 £31,700 £33,3
Direct Unit
Costs M
o
n
t
Month 2 Month 3 Month 4 Month 5
M
o
n
t
Month 7 Month 8 Month
Page 56

Appendix
h
1
h
6
Home PC Unit 30.00% £
8
4
.
0
0
£84.00 £84.00 £84.00 £84.00 £
8
4
.
0
0
£84.00 £84.00 £84.
Small Business
Unit
21.00% £
1
0
5
.
0
0
£105.00 £105.00 £105.00 £105.00 £
1
0
5
.
0
0
£105.00 £105.00 £105.
Promo 8.00% £
4
.
0
0
£4.00 £4.00 £4.00 £4.00 £
4
.
0
0
£4.00 £4.00 £4.
Maintenance
Contracts
12.00% £
0
.
0
0
£0.00 £0.00 £0.00 £0.00 £
0
.
0
0
£0.00 £0.00 £0.
Direct Cost of
Sales
Home PC Unit £
2
5
2
£420 £252 £1,260 £1,512 £
1
,
6
8
0
£1,680 £1,680 £1,4
Small Business
Unit
£
3
1
5
£315 £315 £1,050 £2,625 £
3
,
6
7
5
£4,200 £4,725 £5,2
Promo £
0
£0 £40 £120 £160 £
0
£160 £160 £1
Maintenance
Contracts
£
0
£0 £0 £0 £0 £
0
£0 £0
Subtotal
Direct Cost of
£
5
£735 £607 £2,430 £4,297 £
5
£6,040 £6,565 £6,8
Page 57

Appendix
Sales 6
7
,
3
5
5
Page 58

Appendix
Table: Personnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Mont
h 9
Owner 0% £2,000 £2,000 £2,500 £2,500 £3,000 £3,000 £3,000 £3,000 £3,00
0
Tech1 0% £0 £0 £0 £2,400 £2,400 £2,400 £2,400 £2,400 £2,40
0
Tech2 0% £0 £0 £0 £0 £0 £0 £2,400 £2,400 £2,40
0
Part Time 0% £0 £0 £0 £0 £0 £0 £0 £0 £0
Total People 1 1 1 2 2 2 3 3 3
Total Payroll £2,000 £2,000 £2,500 £4,900 £5,400 £5,400 £7,800 £7,800 £7,80
0
Page 59

Appendix
Table: General Assumptions
General
Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Plan Month 1 2 3 4 5 6 7 8 9
Current Interest
Rate
7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Long-term
Interest Rate
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0
Page 60

Appendix
Table: Profit and Loss
Pro Forma
Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Sales £2,340 £3,300 £3,240 £11,500 £20,740 £24,300 £28,800 £31,700 £33,360
Direct Cost of
Sales
£567 £735 £607 £2,430 £4,297 £5,355 £6,040 £6,565 £6,838
Costs of
Fulfilling
Maintenance
Contracts
£0 £0 £48 £96 £144 £144 £144 £192 £192
Total Cost of
Sales
£567 £735 £655 £2,526 £4,441 £5,499 £6,184 £6,757 £7,030
Gross Margin £1,773 £2,565 £2,585 £8,974 £16,299 £18,801 £22,616 £24,943 £26,330
Gross Margin
%
75.77% 77.73% 79.78% 78.03% 78.59% 77.37% 78.53% 78.68% 78.93%
Expenses
Payroll £2,000 £2,000 £2,500 £4,900 £5,400 £5,400 £7,800 £7,800 £7,800
Marketing/
Promotion
£4,000 £1,000 £3,000 £2,000 £2,000 £3,000 £3,000 £2,000 £2,000
Depreciation £0 £0 £0 £0 £0 £0 £0 £0 £0
Lease £0 £0 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000
Expensed
Equipment
£0 £0 £0 £0 £0 £0 £0 £0 £0
Insurance £150 £0 £300 £300 £300 £300 £300 £300 £300
Website £40 £40 £200 £200 £200 £200 £200 £200 £200
Answering
Service
£200 £0 £0 £0 £0 £0 £0 £0 £0
Mileage £80 £85 £95 £100 £200 £300 £300 £300 £300
Vehicles £0 £0 £6,000 £800 £800 £800 £800 £800 £800
Cell Phones £0 £60 £120 £120 £120 £120 £120 £120 £120
Utilities £0 £0 £500 £500 £500 £500 £500 £500 £500
Internet 15% £0 £0 £120 £120 £120 £120 £120 £120 £120
Moving
Expenses
£0 £0 £2,000 £0 £0 £0 £0 £0 £0
Total Operating
Expenses
£6,470 £3,185 £15,835 £10,040 £10,640 £11,740 £14,140 £13,140 £13,140
Page 61

Appendix
Profit Before
Interest and
Taxes
(£4,697) (£620) (£13,250) (£1,066) £5,659 £7,061 £8,476 £11,803 £13,190
EBITDA (£4,697) (£620) (£13,250) (£1,066) £5,659 £7,061 £8,476 £11,803 £13,190
Interest
Expense
£109 £106 £103 £99 £96 £93 £90 £87 £83
Taxes
Incurred
(£1,442) (£218) (£4,006) (£350) £1,669 £2,090 £2,516 £3,515 £3,932
Net Profit (£3,364) (£508) (£9,347) (£816) £3,894 £4,878 £5,870 £8,201 £9,175
Net
Profit/Sales
-143.77% -15.39% -288.48% -7.09% 18.78% 20.07% 20.38% 25.87% 27.50%
Table: Cash Flow
Pro Forma
Cash Flow
Month 1
M
o
n
t
h
2
Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month
Cash Received
Cash from
Operations
Cash Sales £2,340 £
3
,
3
0
0
£3,240 £11,500 £20,740 £24,300 £28,800 £31,700 £33,3
Subtotal Cash
from
Operations
£2,340 £
3
,
3
0
0
£3,240 £11,500 £20,740 £24,300 £28,800 £31,700 £33,3
Additional Cash
Received
Sales Tax,
VAT, HST/GST
Received
0.00% £0 £
0
£0 £0 £0 £0 £0 £0
New Current £0 £ £0 £0 £0 £0 £0 £0
Page 62

Appendix
Borrowing 0
New Other
Liabilities
(interest-free)
£0 £
0
£0 £0 £0 £0 £0 £0
New Long-term
Liabilities
£0 £
0
£0 £0 £0 £0 £0 £0
Sales of Other
Current Assets
£0 £
0
£0 £0 £0 £0 £0 £0
Sales of Long-
term Assets
£0 £
0
£0 £0 £0 £0 £0 £0
New
Investment
Received
£0 £
0
£0 £0 £0 £0 £0 £0
Subtotal Cash
Received
£2,340 £
3
,
3
0
0
£3,240 £11,500 £20,740 £24,300 £28,800 £31,700 £33,3
Expenditures Month 1
M
o
n
t
h
2
Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month
Expenditures
from
Operations
Cash Spending £2,000 £
2
,
0
0
0
£2,500 £4,900 £5,400 £5,400 £7,800 £7,800 £7,8
Bill Payments £105 £
3
,
1
0
2
£2,353 £10,424 £8,954 £13,556 £15,209 £15,896 £16,2
Subtotal Spent
on Operations
£2,105 £
5
,
1
£4,853 £15,324 £14,354 £18,956 £23,009 £23,696 £24,0
Page 63

Appendix
0
2
Additional Cash
Spent
Sales Tax,
VAT, HST/GST
Paid Out
£0 £
0
£0 £0 £0 £0 £0 £0
Principal
Repayment of
Current
Borrowing
£547 £
5
4
7
£547 £547 £547 £547 £547 £547 £5
Other Liabilities
Principal
Repayment
£0 £
0
£0 £0 £0 £0 £0 £0
Long-term
Liabilities
Principal
Repayment
£0 £
0
£0 £0 £0 £0 £0 £0
Purchase Other
Current Assets
£0 £
0
£0 £0 £0 £0 £0 £0
Purchase Long-
term Assets
£0 £
0
£0 £0 £0 £0 £0 £0
Dividends £0 £
0
£0 £0 £0 £0 £0 £0
Subtotal Cash
Spent
£2,652 £
5
,
6
4
9
£5,400 £15,871 £14,901 £19,503 £23,556 £24,243 £24,6
Net Cash Flow (£312) (
£
2
,
3
4
9
)
(£2,160) (£4,371) £5,839 £4,797 £5,244 £7,457 £8,7
Cash Balance £27,688 £
2
5
,
3
4
0
£23,179 £18,809 £24,647 £29,444 £34,688 £42,145 £50,8
Page 64

Appendix
Table: Balance Sheet
Pro Forma
Balance Sheet
M
o
n
t
h
1
Month 2 Month 3 Month 4 Month 5
M
o
n
t
h
6
Month 7 Month 8 Mo
Assets Starting Balances
Current Assets
Cash £28,000 £
2
7
,
6
8
8
£25,340 £23,179 £18,809 £24,647 £
2
9
,
4
4
4
£34,688 £42,145 £5
Inventory £1,200 £
6
3
3
£898 £1,291 £2,673 £4,727 £
5
,
8
9
1
£6,644 £7,222 £
Other Current
Assets
£10,000 £
1
0
,
0
0
0
£10,000 £10,000 £10,000 £10,000 £
1
0
,
0
0
0
£10,000 £10,000 £1
Total Current
Assets
£39,200 £
3
8
,
3
2
1
£36,238 £34,470 £31,482 £39,374 £
4
5
,
3
3
5
£51,332 £59,366 £6
Long-term
Assets
Long-term
Assets
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Page 65

Appendix
Accumulated
Depreciation
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Total Long-term
Assets
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Total Assets £39,200 £
3
8
,
3
2
1
£36,238 £34,470 £31,482 £39,374 £
4
5
,
3
3
5
£51,332 £59,366 £6
Liabilities and
Capital M
o
n
t
h
1
Month 2 Month 3 Month 4 Month 5
M
o
n
t
h
6
Month 7 Month 8 Mo
Current
Liabilities
Accounts
Payable
£0 £
3
,
0
3
3
£2,004 £10,130 £8,505 £13,050 £
1
4
,
6
8
0
£15,354 £15,733 £1
Current
Borrowing
£19,225 £
1
8
,
6
7
8
£18,131 £17,584 £17,037 £16,490 £
1
5
,
9
4
3
£15,396 £14,849 £1
Other Current
Liabilities
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Subtotal
Current
Liabilities
£19,225 £
2
1
,
7
1
1
£20,135 £27,714 £25,542 £29,540 £
3
0
,
6
2
3
£30,750 £30,582 £3
Page 66

Appendix
Long-term
Liabilities
£0 £
0
£0 £0 £0 £0 £
0
£0 £0
Total Liabilities £19,225 £
2
1
,
7
1
1
£20,135 £27,714 £25,542 £29,540 £
3
0
,
6
2
3
£30,750 £30,582 £3
Paid-in Capital £23,000 £
2
3
,
0
0
0
£23,000 £23,000 £23,000 £23,000 £
2
3
,
0
0
0
£23,000 £23,000 £2
Retained
Earnings
(£3,025) (
£
3
,
0
2
5
)
(£3,025) (£3,025) (£3,025) (£3,025) (
£
3
,
0
2
5
)
(£3,025) (£3,025) (£3
Earnings £0 (
£
3
,
3
6
4
)
(£3,872) (£13,219) (£14,035) (£10,141) (
£
5
,
2
6
3
)
£607 £8,809 £1
Total Capital £19,975 £
1
6
,
6
1
1
£16,103 £6,756 £5,940 £9,834 £
1
4
,
7
1
2
£20,582 £28,784 £3
Total Liabilities
and Capital
£39,200 £
3
8
,
3
2
1
£36,238 £34,470 £31,482 £39,374 £
4
5
,
3
3
5
£51,332 £59,366 £6
Page 67

Appendix
Net Worth £19,975 £
1
6
,
6
1
1
£16,103 £6,756 £5,940 £9,834 £
1
4
,
7
1
2
£20,582 £28,784 £3
Page 68