Business Plan: ShopNow.com - Online Grocery App in Canberra, Australia

This business plan outlines the strategy for ShopNow.com, an online grocery application based in Canberra, Australia. It details the business overview, including the company's name, logo, mission, vision, goals, location, and operating schedule. The plan also covers the legal structure (sole propr...Read More

Running head: BUSINESS PLAN
BUSINESS PLAN
Name of the Student
Name of the University
Author Note

1BUSINESS PLAN
Executive Summary
The report is based on the business idea of a venture named the ShopNow.com application
which can be understood to be a business based in Australia in the capital city of Canberra.
The report follows a systematic format with respect to which, it begins with a brief
description of the different operations of the firm which has then been followed by the details
on the operations, finances and other domains of the business.

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1. Table of Contents
1. Business Overview........................................................................................................................4
1.1 Business name.......................................................................................................................4
1.2 Business Logo and Slogans...................................................................................................4
1.3 Prime Function......................................................................................................................4
1.4 Legal structure.......................................................................................................................5
1.5 Mission Statement.................................................................................................................5
1.6 Vision Statement...................................................................................................................6
1.7 Goals and Objectives............................................................................................................6
1.8 Location................................................................................................................................6
1.9 Operating Schedules.............................................................................................................7
1.10 Staffing requirements............................................................................................................9
1.11 Establishment Requirements.................................................................................................9
1.12 Legal Requirements............................................................................................................11
2. Marketing Plan.............................................................................................................................13
2.1 Market Research.................................................................................................................13
2.2 SWOT analysis...................................................................................................................13
2.3 Competitior Analysis..........................................................................................................13
2.4 Target Market......................................................................................................................14
2.5 Product................................................................................................................................14
2.6 Price....................................................................................................................................15
2.7 Place....................................................................................................................................15
2.8 Promotion............................................................................................................................15
3. Financial Plan..............................................................................................................................17
3.1 Financial Objectives............................................................................................................17

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3.2 Fixed costs and Establishment costs...................................................................................17
3.3 Varaiable costs....................................................................................................................19
3.4 Break even Analysis............................................................................................................20
3.5 Cash flow budget................................................................................................................21
4. Future developments....................................................................................................................23
5. Appendices...................................................................................................................................24
5.1 Logo design.........................................................................................................................24
5.2 Map of business location.....................................................................................................24
5.3 Survey results......................................................................................................................25
5.4 Other financials...................................................................................................................26

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1. Business Overview
1.1 Business name
The name of the business on which the particular business plan is based on is
ShopNow.com. The business is an online grocery application which will be connecting the
different grocers to the customers and allow them to exchange the goods in return of money.
The application will be available on the Android, iOS and windows platform along with a
website which can be accessed through a laptop or a computer.
1.2 Business Logo and Slogans
Figure 1: The logo and slogan
(As created by the author)
1.3 Prime Function

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The primary function of the business can be stated to be to provide cheap and good
quality grocery items to the different customers at the convenience of their doorsteps. The
company aims to ensure that they are able to resolve the troubles of the customers who are
required to spend their valuable time shopping and waiting at long queues. Through the
application and the website, the firm will be able to successfully provide the goods ordered
by the customers at their doorsteps and ensure good quality as well. Moreover, these
applications and websites can be used as a selling point for the various grocers as well, who
will be charged a nominal fees in return for the products which they will enlist on the
application.
1.4 Legal structure
The legal structure forms a crucial part of the business and with respect to this, it
becomes very important for the firm to ensure that the business will be successfully able to
run itself. Hence, in order to make the management considerably convenient, the legal
structure which has been chosen for the business is Sole proprietorship. The firm will be
divided into different divisions and each division will be responsible for managing their
operations. In addition to this, it also becomes important that each of the departmental heads
report to the hired CEO.
1.5 Mission Statement
The main mission of the organization can be stated to be as follows:
 To provide timely service to the customers
 To provide good quality products to the customers
 To get into a long term relation with the suppliers
 To build upon the image of the firm.

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 To ensure a growth rate of 20% every year
 To ensure that the firm becomes the most popular company as present in Canberra.
1.6 Vision Statement
The vision statement of the firm is as follows:
We at Shop Now.com aim to ensure that the firm is able to build a sustainable
future and get into a long term relationship with the different suppliers as well as the
customers.
1.7 Goals and Objectives
The primary goals as well as the objectives of the business can be stated to be as follows:
 The firm aims to build a network of 100 suppliers in their first 6 months of its
operations
 The firm aims to serve a minimum of 80 customer daily in the first 6 months of the
operations
 The firms aims to initiate a sales of $100000 every month
 The firm aims to grow at a percentage of 20 in the first 2 years
1.8 Location
The location which has been chosen for the purpose of the business can be
understood to be the Canberra region. The Canberra region can be understood to be the
capital city of Australia. As the capital city, the city has considerable importance in the
country and hence, is often considered as a prime location for the different operations
which generally take place at the work and hence, in line of this, it can be rightfully

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understood that, if the Shop Now undertakes its operations in the city, it will be beneficial
for the firm to gain popularity in a short period of time.
1.9 Operating Schedules
The business model:
The Shop now aims to act as a common platform for all suppliers, wholesalers,
retailers as well as the customer alike. In this way, the business will be able to serve a larger
range of the different customers and in a manner similar to this, the consumers would be able
to gain the right products at the right price and at the right time (Anantadjaya 2013).
Categories of Business:
The different categories of the business which the firm aims to undertake, can be
understood to be as follows:
Business to consumers: The consumers who are working as professionals and other
such domains and often do not get the time to shop will be able to fulfil their overall needs by
providing them with adequate convenience. In addition to this, the different customers can
also undergo the analysis of the different catalogues and order any quantity of goods they
prefer.
The business process
The business process which will be followed by the firm can be understood to be the
simple buying and selling procedure. It can be essentially described as follows:
 Registration: The customer would be required to register on the website and enable to
continue selecting the items which are required to be purchased.

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 Browse: The customers can undergo the analysis of various categories of products
which they intend to purchase and then add them to the cart accordingly.
 Payment: The payment would be required to be made either on the delivery or before
the purchase is made (Kotler 2013).
The selling process
The selling aspect will be allowing the different businesses to register on the
company`s website by paying them a fixed annual rate. In line of this, it can be understood
that, the organization would then be able to display the different products which the
interested customers can buy for themselves (Best 2013).
The Revenue Model
The Shop now will be following a simple revenue generation structure. The main
income of the firm will come from the registration fees paid by the manufacturers and the
lasting fees along with the service charge as well. This will help them to earn a fixed amount
of money for themselves. Moreover the firm also aims to earn an annual fee from the
different product manufacturers.
Operations Model
The operational model on which Shop Now will function on can be understood to be
as follows:
Stock it yourself
The different suppliers will be required to manage the integrated warehouse system
and will be required to manage the orders for the firm.
Outsourcing warehouse model

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In this system, the company would be required to outsource the warehousing functions as
available and hence, in line of this, the peak season can be managed easily (Baden-Fuller and
Haefliger 2013).
Inventory Management
As the Shop Now is a relatively new organization, it has to be understood that, it aims
to save the costs associated and fulfil the organization objectives as well. Hence, to avoid any
shortage the firm will make use of the LIFO method which will help them to remain right
stocked at all times.
Transportation Costs
The different transportation costs which shall be incurred by the firm can be
understood to be the delivery costs and the costs of moving the goods from a single supplier
to the other.
1.10 Staffing requirements
The staffing requirements of the firm can be understood to be as follows:
 The manager
 The Supervisors at the warehouse
 Delivery experts and subordinates
 Office staff and crew (Beardwell and Thompson 2014).
 A Grocery Inventory specialist
 Technical staff for the application and website management.
Recruitment and schedule

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In order to be able to carry out the overall recruitment and related agency work
successfully, the firm will be involved in contacting a placement agency, which would then
assist the firm to achieve its overall goals as well as the objectives at large.
Performance reviews and rewards
The continuous evaluation of the performances will help in ensuring that the
employees are allowed to work to the best of their abilities and motivated continuously.
1.11 Establishment Requirements
Startup Expenses
Buildings / Real Estate
Purchase
$
30,000
Construction 12,000
Remodeling 4,000
Other 1,000
Total Buildings and R / E
$
47,000
Leasehold Improvements
Item 1
$
20,000
Item 2 2,000
Item 3 -
Item 4 -
Total L / H Improvements
$
22,000
Capital Equipment List
Furniture
$
10,000
Equipment 20,000
Fixtures 20,000
Machinery 40,000

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Other 1,200
Total Capital Equipment
$
91,200
Location and Admin Expenses
Rental
$
25,000
Utility Deposits 2,000
Legal and Accounting Fees 12,000
Prepaid Insurance 3,000
Pre-opening Salaries 3,000
Other 2,000
Total Location and Admin Expenses
$
47,000
Opening Inventory
Category 1
Category 2 1,000
Category 3 20,000
Category 4 -
Category 5 -
Total Inventory
$
21,000
Advertising and Promotional
Expenses
Advertising
$
20,000
Signage 23,000
Printing
Travel & Entertainment 20,000
Other / Additional categories
Total Adv and Promo expenses
$
63,000
Payroll and payroll taxes
Expense 1 $

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50,000
Expense 2
Total Payroll and payroll taxes
$
50,000
1.12 Legal Requirements
The business idea is of three close associates who have aimed to run the business on
the principles of a partnership. In this business style, the partners will be given the
opportunity to be responsible for the different business debts. In case the business idea fails,
then in such a scenario, the owners will lose out on the money (Armstrong et al. 2015). The
reason why such a legal manner has been adopted is because, the owners and founders of the
business would like to keep the profits of the business to themselves and then use the idea to
become successful in the long run (Chwolka and Raith 2013). The business will follow all the
needs of the Australian legislative requirements and in line of this, the company would have
its headquarters in the Canberra region with other offices in other regions. The company will
also own certain main warehouses.

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2. Marketing Plan
2.1 Market Research
The market research tends to form an integral part of the organization`s business plan
and in order to ensure long term success a business would be required to ensure that, it is
being able to understand the requisites of the market as present. In line of this, from the
Australian business market it can be examined that there exist various organizations like the
Woolworths, Caltex, IGA, Coles and the others who have a considerable share of the
customer market share. However, the concept of the Shop Now application can be understood
to be relatively new and hence, it can be stated to have a considerable scope of expansion in
the long run which will then enable the firm to perform considerably well.
2.2 SWOT analysis
The SWOT Analysis of the business can be stated to be done as follows:
Strengths Weakness
A wide product range
A comparatively new business idea
A good target group
A low fixed cost business model
The delivery time may stand as a
considerable issue
The variable costs of the firm can be
understood to be considerably high.
There might be a high number of order
cancellations
Opportunity Threats
The market has not been capped with this
kind of an idea and hence, with respect to
this, the firm will be able to earn a good
amount of revenue
The cross selling and value packaging
serves as a good opportunity for the firm.
There may exist considerable threat from
the existent stores which are present like the
Woolworths, Coles and others.
The customer retention may turn out to be a
major issue which can act as a barrier in
front of the firm to attract the right number
of customers for its overall cause.
2.3 Competitor Analysis

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BUSINESS PLAN
Factor Shop Now Woolworths IGA Coles Importance
to the
Customer
Products Good Very Good Fair Good High
Price Low Low High Moderate High
Quality Moderate Good Very Good Good Moderate
Stability Average Good Good Good Moderate
Expertise Low High Very High Low Crucial
Brand
Image
New Old old Moderate Moderate
Hence, from the given analysis, it can be rightfully understood that, the firm considers
itself to be performing well among the different competitors as the concept can be undertaken
to be considerable unique and hence, with respect to this, the firm will be able to perform
well (Higgins 2013).
2.4 Target Market
The target market of shop now can be understood to be the working professionals and
other busy professionals who do not get the time to shop by visiting the supermarkets and
getting their goods for their own needs (Arnold 2013). The expatriates and other working
professionals often do not have an idea of the right kind of goods for the right kind of
customers and hence, the Shop now will be required to assist the customers. As the store is an
online store, the customers will be easily able to serve the customers online.
2.5 Product
The range of products which were offered to the customers can be stated to be as
follows:
- Packaged Salads
- Bakery
- Fresh Food
- Frozen Food

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BUSINESS PLAN
- Dairy & Eggs
- Drinks
- Sweeteners
- Biscuits & Confectionery
- Canned Food
- Cereals & Oats
- Cooking Ingredients
- For Baby
- Cleaners & Disposables
- Personal Care
- Batteries
- Pet Food
2.6 Price
The pricing range which will be undertaken by the company can be stated to be the
competitive pricing policy (Hutt and Speh 2012). In this kind of the pricing policy, the
organization would be ensuring that, the individual customers will be able to compare the
different pricings online and in addition to this, they would also be able to, ensure that they
can earn a higher range of revenues for themselves.
2.7 Place
As mentioned earlier, the business will function in the Canberra region in Australia.
In this manner, the firm will be able to ensure that at first it is able to capture the market in
Canberra and then this will be followed by the spread of the business in other markets as
present in other parts of the country.
2.8 Promotion
The promotion techniques and measures which will be possibly adopted by the
organization can be stated to be the measures like Television advertising, social media

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BUSINESS PLAN
advertising, phone advertising and other related measures (Jiang, Yang and Jun 2013). Flyers
as well as other pamphlets will also be chosen for the firm which will help in making the
marketing distribution stronger.

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BUSINESS PLAN
3. Financial Plan
3.1 Financial Objectives
The financial objectives which the firm aims to achieve can be stated to be as follows:
 The firm aims to ensure that it will be able to incur $100000 sales in the first few
years of operation.
 In addition to this, the firm aims to gain a gross profit of 30% in the first year
 The organization has also aimed to gain a net profit of 30%
3.2 Fixed costs and Establishment costs
Sources of Capital 4
Owners' Investment (name & %
ownership)
Buildings /
Real Estate
Your name & % ownership $ 1,000,000 Purchase $ 30,000
Other Investor 200,000 Construction 12,000
Other Investor 200,000 Remodeling 4,000
Other Investor - Other 1,000
Total Investment $ 1,400,000
Total
Buildings
and R / E $ 47,000
Bank Loans
Leasehold
Improvemen
ts
Bank 1 Item 1 $ 20,000
Bank 2 - Item 2 2,000
Bank 3 - Item 3 -
Bank 4 - Item 4 -
Total Bank Loans
$
-
Total L / H
Improvemen
ts $ 22,000

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BUSINESS PLAN
Other Loans
Capital
Equipment
List
Source 1 $ 100,000 Furniture $ 10,000
Source 2 - Equipment 20,000
Total Other Loans $ 100,000 Fixtures 20,000
Machinery 40,000
Other 1,200
Summary Statement
Total Capital
Equipment $ 91,200
Sources of Capital
Location and
Admin
Expenses
Owners' and Other Investments $ 1,400,000 Rental $ 25,000
Bank Loans -
Utility
Deposits 2,000
Other Loans 100,000
Legal and
Accounting
Fees 12,000
Total Source of Funds $ 1,500,000
Prepaid
Insurance 3,000
Pre-opening
Salaries 3,000
Startup Expenses Other 2,000
Bldgs / Real Estate
$
47,000
Total
Location and
Admin
Expenses $ 47,000
Leasehold Improvements 22,000
Capital Equipment 91,200
Opening
Inventory
Location / Admin Expenses 47,000 Category 1
Opening Inventory 21,000 Category 2 1,000
Advertising / Promo Expenses 63,000 Category 3 20,000
Other Expenses 50,000 Category 4 -
Total Startup Expenses $ 341,200 Category 5 -
Total
Inventory $ 21,000
Advertising

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and
Promotional
Expenses
Advertising $ 20,000
Signage 23,000
Printing
Travel &
Entertainment 20,000
Other /
Additional
categories
Total Adv
and Promo
expenses $ 63,000
Payroll and
payroll taxes
Expense 1 $ 50,000
Expense 2
Total Payroll
and payroll
taxes $ 50,000
3.3 Variable costs
Fixed Expenses
Bldgs / Real Estate
$
47,000
Leasehold Improvements 22,000
Capital Equipment 91,200
Location / Admin Expenses 47,000
Opening Inventory 21,000
Advertising / Promo Expenses 63,000
Other Expenses 50,000
Total Fixed Expenses
$
341,200
Variable
Expenses
Inventory or Materials 20%

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Direct labor (includes payroll taxes) 20%
Other expenses 10%
Other expenses 5%
Salaries (includes payroll taxes) 20%
Supplies 10%
Total Variable Expenses 85%
3.4 Break even Analysis
Fixed
Expenses
Fixed Expenses
Bldgs / Real
Estate
$
47,000
Leasehold
Improvements 22,000
Capital
Equipment 91,200
Location /
Admin
Expenses 47,000
Opening
Inventory 21,000
Advertising /
Promo Expenses 63,000
Other Expenses 50,000
Total Fixed
Expenses
$
341,200
Variable
Expenses
Inventory or
Materials 20%
Direct labor
(includes
payroll taxes)
20%
Other expenses 10%
Other expenses 5%
Salaries
(includes
payroll taxes)
20%
Supplies 10%
Total Variable
Expenses 85%
Breakeven $344,125.0 Year Year 2 Year 3 Year 4 Year 5

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BUSINESS PLAN
Sales level = 6 1
Net income
(loss)
-
$344,1
25.06
$992,0
69.11
$1,012,
477.83
$1,054,
193.94
$1,119,
314.21
$1,211,
380.28
Cumulative
income
$647,9
44.05
$1,660,
421.88
$2,714,
615.82
$3,833,
930.03
$5,045,
310.30
Positive Cash
Flow?
TRU
E TRUE TRUE TRUE TRUE
Undiscounted
breakeven year 1 years
Actual break
even period 0.35 years
3.5 Cash flow budget
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income
$992,06
9
$1,012,
478
$1,054,
194
$1,119,
314
$1,211,
380
$5,389,4
35
Depreciation $32,040 $32,681 $33,322 $33,962 $34,603 $166,608
Accounts receivable
($8,800
)
($17,95
2)
($28,00
5)
($39,58
1) $0
($94,338
)
Inventories
($8,800
)
($17,95
2)
($28,00
5)
($39,58
1) $0
($94,338
)
Accounts payable $2,500 $5,100 $7,956 $11,244 $0 $26,800
Amortization 0 0 $0 $0 $0 $0
Other liabilities 0 0 $0 $0 $0 $0
Other operating cash
flow items 0 0 $0 $0 $0 $0
Total operating
activities
$1,009,
009
$1,014,
355
$1,039,
461
$1,085,
360
$1,245,
983
$5,394,1
68
$0
Investing activities $0
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 $0
Sale of fixed assets
($425,1
72)
($433,9
19)
($451,7
97)
($479,7
06)
($519,1
63)
($2,309,7
58)
Other investing cash
flow items 0 0 0 0 0 $0
Total investing
activities
($425,1
72)
($433,9
19)
($451,7
97)
($479,7
06)
($519,1
63)
($2,309,7
58)
Financing activities
Long-term
debt/financing $81,537
($19,20
1)
($19,96
9)
($20,76
8)
($21,59
9) $0
Preferred stock 0 0 0 0 0 0

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BUSINESS PLAN
Total cash dividends
paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0
Other financing cash
flow items 0 0 0 0 0 0
Total financing
activities $81,537
($19,20
1)
($19,96
9)
($20,76
8)
($21,59
9) $0
Cumulative cash flow
$665,37
4
$561,23
4
$567,69
5
$584,88
6
$705,22
2
$3,084,4
10
Beginning cash balance
$1,158,
800
$1,824,
174
$2,385,
408
$2,953,
103
$3,537,
989
Ending cash balance
$1,824,
174
$2,385,
408
$2,953,
103
$3,537,
989
$4,243,
210

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BUSINESS PLAN
4. Future developments
In the future the organization has aimed to open its operations in the different
countries as present. The firm has chosen Canberra as the country of operations, and in line of
this, the firm aims to first spread its operations in the capital country and this will then be
followed by other cities in Melbourne.

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BUSINESS PLAN
5. Appendices
5.1 Logo design
5.2 Map of business location

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The operations of the firm are in the area marked.
5.3 Survey results
Rating of a home delivery service
Excellent Above average Average Below Average Very Poor
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Percentage of respondents

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Pricing of the products on the application
Percentage of respondents
Strongly agree Agree Neutral
Disagree Strongly disagree
Shopping on an application
Always
Often
Sometimes
Seldom
Never
0% 5% 10% 15% 20% 25% 30% 35% 40%
Percentage of respondents
Service rating

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Excellent Above average Average Below Average Very Poor
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Percentage of respondents
5.4 Other financials
Key assumptions
Year 1 model inputs
Use this area to capture key components of the Profit and Loss Statement and the Balance Sheet for the first
year only.
1. Year-one revenue expectancy
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Number of units sold annually 20,000 20,000 30,000 25,000
Average sales price per unit $15.00 $20.00 $25.00 $30.00
Annual revenue per product $300,000 $400,000 $750,000 $750,000
Total year 1 revenue $2,200,000
2. Year 1 cost of goods sold
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Expected gross margin per product 20.00% 10.00% 30.00% 40.00%
Annual cost of goods sold per product $60,000 $40,000 $225,000 $300,000
Total year 1 cost of goods sold $625,000
3. Annual maintenance, repair, and overhaul
Factor (%) on capital
equipment 10%
4. Number of years for straight-line
depreciation 5
5. Annual tax rate 30%

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BUSINESS PLAN
6. If long-term debt is being used to finance
operations, enter the total loan value.
7. Account receivable and payable % 20%
Profit and Loss
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue
$2,200,00
0
$2,244,00
0
$2,333,76
0
$2,473,78
6
$2,671,68
8
Cost of goods sold $625,000 $637,500 $663,000 $702,780 $759,002
Gross margin
$1,575,00
0
$1,606,50
0
$1,670,76
0
$1,771,00
6
$1,912,68
6
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue
$1,575,00
0
$1,606,50
0
$1,670,76
0
$1,771,00
6
$1,912,68
6
Operating expenses
Sales and marketing $63,000 $64,260 $66,830 $70,840 $76,507
Payroll and payroll taxes $50,000 $51,000 $53,040 $56,222 $60,720
Depreciation $32,040 $32,681 $33,322 $33,962 $34,603
Maintenance, repair, and
overhaul $9,120 $9,302 $9,485 $9,667 $9,850
Total operating expenses $154,160 $157,243 $162,677 $170,692 $181,680
Operating income
$1,420,84
0
$1,449,25
7
$1,508,08
3
$1,600,31
3
$1,731,00
6
Interest expense on long-term
debt $3,598 $2,860 $2,092 $1,293 $462
Operating income before other
items
$1,417,24
2
$1,446,39
7
$1,505,99
1
$1,599,02
0
$1,730,54
3
Loss (gain) on sale of assets $0 $0 $0 $0 $0
Other unusual expenses
(income) $0 $0 $0 $0 $0
Earnings before taxes
$1,417,24
2
$1,446,39
7
$1,505,99
1
$1,599,02
0
$1,730,54
3
Taxes on income
30
% $425,172 $433,919 $451,797 $479,706 $519,163
Net income (loss) $992,069
$1,012,47
8
$1,054,19
4
$1,119,31
4
$1,211,38
0
Cumulative income $992,069
$2,004,54
7
$3,058,74
1
$4,178,05
5
$5,389,43
5

2
9
BUSINESS PLAN
Balance sheet
Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term
investments $1,158,800
$1,824,
174
$2,385,
408
$2,953,
103
$3,537,
989
$4,243
,210
Accounts receivable $440,000
$448,80
0
$466,75
2
$494,75
7
$534,33
8
$534,3
38
Total inventory $440,000.00
$448,80
0.00
$466,75
2.00
$494,75
7.12
$534,33
7.69
$534,3
38
Prepaid expenses 0 0 0 0 0 $0
Deferred income tax 0 0 0 0 0 $0
Other current assets 0 0 0 0 0 $0
Total current assets $2,038,800
$2,721,
774
$3,318,
912
$3,942,
617
$4,606,
664
$5,311
,886
Buildings $47,000 $47,000 $47,000 $47,000 $47,000
$47,00
0
Land 0 0 0 0 0 0
Capital improvements
$
22,000 22,000 22,000 22,000 22,000 22,000
Machinery and equipment
$
91,200 91,200 91,200 91,200 91,200 91,200
Less: Accumulated
depreciation expense 0 32,040 64,721 98,042
132,00
5
166,60
8
Net property/equipment $160,200
$128,1
60
$95,47
9
$62,15
8
$28,19
5
($6,40
8)
Goodwill $0 $0 $0 $0 $0 $0
Deferred income tax 0 0 0 0 0 0
Long-term investments 0 0 0 0 0 0
Deposits 0 0 0 0 0 0
Other long-term assets 0 0 0 0 0 0
Total assets $2,199,000
$2,849,
934
$3,414,
391
$4,004,
775
$4,634,
859
$5,305
,478
Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $125,000
$127,50
0
$132,60
0
$140,55
6
$151,80
0
$151,8
00
Accrued expenses 0 0 0 0 0 0
Notes payable/short-term
debt 0 0 0 0 0 0
Capital leases 0 0 0 0 0 0
Other current liabilities
Total current liabilities $125,000
$127,5
00
$132,6
00
$140,5
56
$151,8
00
$151,8
00
Long-term debt from loan
payment calculator -
$81,53
7
$62,33
6
$42,36
7
$21,59
9 ($0)
Other long-term debt $0 $0 $0 $0 $0 $0
Total debt $125,000
$209,0
37
$194,9
36
$182,9
23
$173,3
99
$151,8
00
Other liabilities 0 0 0 0 0 0

3
0
BUSINESS PLAN
Total liabilities $125,000
$209,0
37
$194,9
36
$182,9
23
$173,3
99
$151,8
00
Equ
ity Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity (common)
$
1,400,000
$1,400,
000
$1,400,
000
$1,400,
000
$1,400,
000
$1,400
,000
Paid-in capital 0 0 0 0 0 0
Preferred equity 0 0 0 0 0 0
Retained earnings 0 0 0 0 0 0
Total equity $1,400,000
$1,400,
000
$1,400,
000
$1,400,
000
$1,400,
000
$1,400
,000
Total liabilities and equity $1,525,000
$1,609,
037
$1,594,
936
$1,582,
923
$1,573,
399
$1,551
,800

3
1
BUSINESS PLAN
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