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Table of Contents

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

Chart: Highlights..................................................................................................................................1
1.1 Mission...............................................................................................................................................1
1.2 Objectives..........................................................................................................................................2
2.0 Company Summary...............................................................................................................................2
2.1 Company Ownership.........................................................................................................................2
2.2 Start-up Summary..............................................................................................................................2
Chart: Start-up......................................................................................................................................3
Table: Start-up.....................................................................................................................................3
..............................................................................................................................................................3
3.0 Services..................................................................................................................................................4
4.0 Market Analysis Summary....................................................................................................................5
4.1 Market Segmentation.........................................................................................................................5
Table: Market Analysis........................................................................................................................5
Chart: Market Analysis (Pie)...............................................................................................................6
4.2 Target Market Segment Strategy.......................................................................................................6
4.3 Service Business Analysis.................................................................................................................6
4.3.1 Competition and Buying Patterns...............................................................................................7
5.0 Strategy and Implementation Summary.................................................................................................7
5.1 Competitive Edge...............................................................................................................................7
5.2 Marketing Strategy.............................................................................................................................8
5.3 Sales Strategy.....................................................................................................................................8
5.3.1 Sales Forecast..............................................................................................................................8
Chart: Sales Monthly.......................................................................................................................9
Chart: Sales by Year........................................................................................................................9
Table: Sales Forecast.....................................................................................................................10
5.4 Milestones........................................................................................................................................10
Table: Milestones...............................................................................................................................10
....................................................................................................................................................................10
6.1 Personnel Plan..................................................................................................................................11
Table: Personnel.................................................................................................................................11
7.0 Financial Plan.......................................................................................................................................11
7.1 Important Assumptions....................................................................................................................11
Table: General Assumptions..............................................................................................................12
7.2 Break-even Analysis........................................................................................................................12
Chart: Break-even Analysis...............................................................................................................12
Table: Break-even Analysis...............................................................................................................12
7.3 Projected Profit and Loss.................................................................................................................13
Chart: Profit Monthly.........................................................................................................................13
Chart: Profit Yearly............................................................................................................................14
Page 1

Table of Contents

Chart: Gross Margin Monthly............................................................................................................14

Chart: Gross Margin Yearly...............................................................................................................15
Table: Profit and Loss........................................................................................................................15
7.4 Projected Cash Flow........................................................................................................................16
Table: Cash Flow...............................................................................................................................16
Chart: Cash.........................................................................................................................................17
7.5 Projected Balance Sheet...................................................................................................................18
Table: Balance Sheet..........................................................................................................................18
................................................................................................................................................................18
7.6 Business Ratios................................................................................................................................19
Table: Ratios......................................................................................................................................19
Table: Sales Forecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
......................................................................................................................................................................2
Table: General Assumptions........................................................................................................................3
......................................................................................................................................................................3
Table: Profit and Loss..................................................................................................................................4
......................................................................................................................................................................4
Table: Cash Flow.........................................................................................................................................5
......................................................................................................................................................................6
Table: Balance Sheet....................................................................................................................................7

Page 2

Grizzly Bear Financial Managers

1.0 Executive Summary

Grizzly Bear Financial Managers is a comprehensive financial planning and estate planning
consultancy. Grizzly's services are comprehensive in terms of offered products (mutual funds,
equities, estate planning) and depth of research. Although it costs a fair amount of money for
Grizzly to do an in-depth amount of research into prospective investments as well as possible
options for the client, this up-front cost will be eclipsed by a long-term relationship that is likely
to be established out of earned respect.
Grizzly Bear Financial Managers serves the Portland Metropolitan area. Grizzly will be
generating new clients through a combination of networking and monthly public seminars that
introduces otherwise unreachable segments of the population. Besides the seminars developing
new business, it is also a way that Grizzly can give back to the community.
Grizzly is a sole proprietorship that will reach profitability by month eight and will have modest
profits by the end of year three.

Chart: Highlights

1.1 Mission
Grizzly Bear Financial Managers' mission is to provide comprehensive financial planning services
for our customers. We exist to attract and maintain customers. When we adhere to this
maxim, everything else will fall into place. Our services will exceed the expectations of our
customers.

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Grizzly Bear Financial Managers

1.2 Objectives
The objectives for the first three years of operation include:
1. To create a service-based company whose primary goal is to exceed customer's
expectations.
2. To increase the number of clients served by at least 20% per year through superior
performance and word-of-mouth referrals.
3. To develop a sustainable financial management company that generates value for their
customers.
2.0 Company Summary
Grizzly Bear Financial Managers is a comprehensive financial planning service for the upper end
of the Portland market. Grizzly is a sole proprietorship owned by Meghan Malpraktus. Grizzly
will offer comprehensive financial planning and estate planning for the upper-middle class in the
Portland Metropolitan area.
2.1 Company Ownership
Grizzly Bear Financial Managers is a sole proprietorship owned by Meghan Malpraktus.
2.2 Start-up Summary
Grizzly Bear Financial Managers will incur the following start-up costs:

Desk, chair and file cabinet.

Couch and table.
Fax machine, copier.
Computer with printer, CD-RW, and Internet connection.
Legal fees for business formation.

Please note that the items which are considered assets to be used for more than a year will
labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line
depreciation method.

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Grizzly Bear Financial Managers

Chart: Start-up

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Consultants
Insurance
Rent
Research and Development
Expensed Equipment
Other
Total Start-up Expenses

$500
$200
$200
$0
$0
$0
$0
$0
$0
$900

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

$18,800
$0
$2,300
$21,100

Total Requirements

$22,000

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Grizzly Bear Financial Managers

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$900
$21,100
$22,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$2,300
$18,800
$0
$18,800
$21,100

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$0
$0
$0
$0

Capital
Planned Investment
Meghan
Investor 2
Other
Additional Investment Requirement
Total Planned Investment

$22,000
$0
$0
$0
$22,000

Loss at Start-up (Start-up Expenses)

Total Capital

($900)
$21,100

Total Capital and Liabilities

$21,100

Total Funding

$22,000

3.0 Services
Grizzly Bear Financial Managers is a comprehensive financial planning consultancy. Grizzly is a
stock broker and estate planner.

Stocks. Grizzly has a series seven state and federal securities license, allowing them to sell
stock through the client. Grizzly takes the order from the customer and forwards it to their
clearing agent, Bear Stearns.

Estate planning. Grizzly offers estate planning to customers specializing in tax

consequences and maximizing the amount that can be transferred to relatives before death.

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Grizzly Bear Financial Managers

4.0 Market Analysis Summary

Grizzly Bear Financial Managers will be marketing their services to two different groups of
people, those in need of investing advice, and those that are in need of estate planning help.
These two groups will be targeted through networking activities and public seminars. Grizzly's
competitive advantage of thoroughness of services offered as well as in-depth research will turn
prospective clients into long-term customers.
4.1 Market Segmentation
Grizzly Bear Financial Managers will target two different groups of customers. Both groups will
be from the middle to upper-middle class socio-economic groups.

Middle age people in need of estate planning. This group is making plans for their
estate and are in need of advice on how to structure their estate. They might have already
made arrangements for their estate and wish to modify them, or be starting from scratch.

Middle age people interested in investing. This group is interested in some sort of
investing, whether it is mutual funds, stocks, bonds, treasury notes, etc. They may have
already done some investing, but want to change their risk profile or take a different
approach. This might also be their first time investing and want expert advice.

Table: Market Analysis

Market Analysis
Potential Customers
Middle age people in need of
estate planning
Middle age people interested
in investing
Other
Total

Year 1

Year 2

Year 3

Year 4

Year 5

8%

38,745

41,845

45,193

48,808

52,713

8.00%

9%

43,558

47,478

51,751

56,409

61,486

9.00%

0%
8.53%

0
82,303

0
89,323

0
96,944

0
105,217

0
114,199

0.00%
8.53%

Growth

CAGR

Page 5

Grizzly Bear Financial Managers

Chart: Market Analysis (Pie)

4.2 Target Market Segment Strategy

Grizzly Bear Financial Managers has chosen these two groups because they both have money to
invest and most need assistance in determining how to invest or how to structure their estate.
These groups will be targeted through two methods. The first is old fashioned networking.
Meghan made a lot of different contacts in her pursuit for her MBA. In addition to networking
her contacts from school, Meghan will also network using her social contacts.
Meghan will also be targeting these groups through the production of public seminars on estate
planning and investing. These seminars typically take place in a public area such as a library
hall. The seminars provide a basic level of knowledge. The seminar is not meant to substitute
Meghan's services, they are meant to whet people's appetites for more information. The real
reason for the seminars is to get a diverse crowd of people interested in Meghan and the
services she offers, creating new business.
4.3 Service Business Analysis
The financial management is a populated space, just like real estate. There are literally
hundreds of financial managers serving the Portland metropolitan area. The secret is
specializing (concentrating on a specific area in the market, helping you to be differentiated
from all the other service providers) and networking (building your business through
personal/professional contacts).
Although the financial market is pretty full, there is room for new providers that specialize and
offer unsurpassed customer attention.

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Grizzly Bear Financial Managers

4.3.1 Competition and Buying Patterns

Competition comes from many different sources:

Independent financial planners: these are often most like Grizzly Bear Financial
Managers. They do not belong to a larger company and they are not affiliated with any type
of company, mutual fund, or otherwise.
Financial planners that are part of a larger organization: American Express, Charles
Schwaab, and Merrill Lynch. While these planners might offer good advice, they are often
biased, having a financial interest in the companies that they sell equity in.
Tax and estate planning attorneys: professionals with a legal background who offer
similar financial services, sometimes as a sideline to their practice of law.
True niche players who only are stock brokers or who only do estate planning:
while these people probably have very detailed information about their area of
specialization, estate planning or financial planning often requires a breadth of knowledge in
many areas.

The buying patterns of consumers are more often than not based on networking or who the
person knows. This is because the industry of financial planning is so populated it is quite hard
to make a decision for choosing a service provider. Since many/most people after a certain age
have at least visited a financial planner it is not difficult to get a referral for a planner.
5.0 Strategy and Implementation Summary
Meghan's strategy for reaching her two target segments will be based on seminars and
networking. The seminars are open to the public and have a small, subsidized entry fee. They
are meant to cover the basics of financial and estate planning. Typically the seminars will start
to get these people asking questions about their personal finances and hopefully come back to
Meghan for more help.
Meghan will also be doing networking to find customers. Her networking will be primarily based
on contacts that she made while at Reed College and Willamette University.
5.1 Competitive Edge
Grizzly Bear Financial Managers' competitive advantage is their comprehensive approach to
research and services provided. It is Meghan's philosophy that she can develop more value for
her customers by investing more time up front while researching different options. Most
planning firms will do adequate research in terms of looking into different options, certainly
enough to meet due diligence requirements. While this is sufficient for some, Meghan adheres
to the philosophy that its is better to invest the time upfront in support of the customers. This
will then pay off in the future by developing long lasting relationships. This attention to detail
and thoroughness will certainly be appreciated by clients who are trusting their financial future
to Meghan.

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Grizzly Bear Financial Managers

5.2 Marketing Strategy

Meghan will be offering public seminars on estate planning and financial planning in Portland
once or twice a month. These workshops will be have subsidized rates and encourage people to
attend and learn as much information as possible. These seminars will typically take place in a
public building and offer a general discussion on the subject. Meghan will caution people
against solely using this information to make decisions. Instead they will be encouraged to see
a professional individually so they can better assess the customers needs. The seminars will
attempt to get these people to start thinking about their financial future. These seminars are a
very good, and efficient, way of introducing Meghan to new clients.
Meghan will also be doing a lot of networking to drum up business. One outstanding source of
networking is with her friends from her MBA program. While everyone that went through the
MBA program has a good educational foundation for financial management, most people do not
do their own planning by themselves but are assisted by a specialist. Meghan will be contacting
her colleagues through social occassions as well as calling them, to keep in touch with them
and offer her services if they are in need. These two methods will accurately target the
segmented populations and allow Meghan to build her client list.
5.3 Sales Strategy
Grizzly Bear Financial Managers' sales strategy will be to emphasize their competitive
advantage of comprehensive research and product offerings. This is likely to turn prospective
clients into long-term customers because people are often cautious with their financial future
and offering a comprehensive solution will likely allay their concerns because Grizzly Bear
Financial Managers is willing to work extra hard to research all options.
This approach takes a lot of time up front for Meghan, but the customers will recognize this
effort and choose Grizzly Bear Financial Managers as their service provider.
5.3.1 Sales Forecast
The first month of business will be used to set up the office. There will be no sales activity
during this period of time. Revenue will begin to occur during the second month, however it
will only trickle in until the four month when it will become more steady. It will not be until the
middle of year two when things begin to settle and become more like an established business in
terms of dividing time between serving clients and attracting new ones.
Meghan will receive revenue from two sources. She will charge the client an initial modest fee
and this includes all of the needed research, interviews and meetings. If the client then goes
ahead and purchases a mutual fund or equity, Meghan receives a commission from the
company that is selling the item. This compensation structure if fairly standard in the industry.
The initial fee allows the client to receive as much counseling and research that they need and
then future transactions are compensated by the company selling the equity, much like the
commission structure of travel agents.

Page 8

Grizzly Bear Financial Managers

Chart: Sales Monthly

Chart: Sales by Year

Page 9

Grizzly Bear Financial Managers

Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

$44,300
$42,591
$86,891

$65,455
$62,545
$128,000

$72,545
$74,545
$147,090

Year 1
$3,544
$3,407
$6,951

Year 2
$5,236
$5,004
$10,240

Year 3
$5,804
$5,964
$11,767

Sales
Estate planning
Investing
Total Sales
Direct Cost of Sales
Estate planning
Investing
Subtotal Direct Cost of Sales

5.4 Milestones
Grizzly Bear Financial Managers will have several milestones early on:
1. Business plan completion. This will be done as a roadmap for the organization. It will be an
indispensable tool for the ongoing performance and improvement of the company.
2. Set up the office.
3. Profitability.
4. Develop a full-time client list.
Table: Milestones

Milestones
Milestone
Business plan completion
Set up the office
Profitability
Develop a full-time client list
Profits exceeding $50,000
Totals

Start Date
1/1/2001
1/1/2001
1/1/2001
1/1/2001
1/1/2001

End Date
2/1/2001
1/1/2001
8/1/2001
6/1/2002
6/1/2005

Budget
$0
$0
$0
$0
$0
$0

Manager
ABC
ABC
ABC
ABC
ABC

Department
Marketing
Department
Department
Department
Department

Page 10

Grizzly Bear Financial Managers

6.0 Management Summary

Meghan Malpraktus received her Bachelor of Arts from Reed College. While at Reed College,
Meghan supplemented her school loans with income from being an accounting clerk for
Hollywood video. While Meghan learned accounting backwards and forwards from this job, she
found it boring. After graduation Meghan took the GMAT's in preparation for getting her MBA.
Meghan decided that she needed to take at least a year off between school so she worked for a
bicycle touring company that took clients on mountain bike trips through the Rocky Mountains.
Meghan developed people and communication skills on this trip. It was her responsibility to
make sure that the clients were always happy. Although at the time Meghan did not know how
valuable these communication skills would become, she did recognize that they were useful.
Meghan entered Willamette's MBA program a year after graduating from Reed. During the
second year Meghan was allowed to choose her courses and she took a concentration of
finance, investing, options, etc. She enjoyed the investing of money, and it was at this point
that she realized that this is the type of work that she wanted to do. She figured it would be
initially tough to start her own financial planning company by herself, but with all of the
contacts that she has made over the years, first at Reed then at Willamette, she was prepared
to go ahead with her dream.
6.1 Personnel Plan
Meghan will be working full time for Grizzly. In addition to herself, Meghan will hire an
administrative assistant beginning with month two. This person will be full time and will help
out in many different ways.
Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Meghan
Administrative Assistant
Total People

$42,000
$21,120
2

$42,000
$25,000
2

$45,000
$27,000
2

Total Payroll

$63,120

$67,000

$72,000

7.0 Financial Plan

The following sections will outline important financial information.
7.1 Important Assumptions
The following table details important financial assumptions.

Page 11

Grizzly Bear Financial Managers

Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1

Year 2

Year 3

1
10.00%
10.00%
30.00%
0

2
10.00%
10.00%
30.00%
0

3
10.00%
10.00%
30.00%
0

7.2 Break-even Analysis

The Break-even Analysis indicates what will be needed in monthly revenue to reach the breakeven point.

Chart: Break-even Analysis

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$8,518

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

8%
$7,837

Page 12

Grizzly Bear Financial Managers

7.3 Projected Profit and Loss

The following table will indicate projected profit and loss.

Chart: Profit Monthly

Page 13

Grizzly Bear Financial Managers

Chart: Profit Yearly

Chart: Gross Margin Monthly

Page 14

Grizzly Bear Financial Managers

Chart: Gross Margin Yearly

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

$86,891
$6,951
$0
$6,951

$128,000
$10,240
$0
$10,240

$147,090
$11,767
$0
$11,767

Gross Margin
Gross Margin %

$79,940
92.00%

$117,760
92.00%

$135,323
92.00%

Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other

$63,120
$1,200
$456
$0
$0
$1,800
$18,000
$9,468
$0

$67,000
$1,200
$456
$0
$0
$1,800
$18,000
$10,050
$0

$72,000
$1,200
$456
$0
$0
$1,800
$18,000
$10,800
$0

Total Operating Expenses

$94,044

$98,506

$104,256

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

($14,104)
($13,648)
$0
$0

$19,254
$19,710
$0
$5,776

$31,067
$31,523
$0
$9,320

Net Profit
Net Profit/Sales

($14,104)
-16.23%

$13,478
10.53%

$21,747
14.78%

Expenses

Page 15

Grizzly Bear Financial Managers

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.
Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$86,891
$86,891

$128,000
$128,000

$147,090
$147,090

$0
$0
$0
$0
$0
$0
$0
$86,891

$0
$0
$0
$0
$0
$0
$0
$128,000

$0
$0
$0
$0
$0
$0
$0
$147,090

Year 1

Year 2

Year 3

$63,120
$34,142
$97,262

$67,000
$46,475
$113,475

$72,000
$52,409
$124,409

$0
$0
$0
$0
$0
$0
$0
$97,262

$0
$0
$0
$0
$0
$0
$0
$113,475

$0
$0
$0
$0
$0
$0
$0
$124,409

($10,371)
$8,429

$14,525
$22,954

$22,681
$45,635

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 16

Grizzly Bear Financial Managers

Chart: Cash

Page 17

Grizzly Bear Financial Managers

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$8,429
$0
$8,429

$22,954
$0
$22,954

$45,635
$0
$45,635

$2,300
$456
$1,844
$10,273

$2,300
$912
$1,388
$24,342

$2,300
$1,368
$932
$46,567

Year 1

Year 2

Year 3

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$3,277
$0
$0
$3,277

$3,868
$0
$0
$3,868

$4,347
$0
$0
$4,347

Long-term Liabilities
Total Liabilities

$0
$3,277

$0
$3,868

$0
$4,347

$22,000
($900)
($14,104)
$6,996
$10,273

$22,000
($15,004)
$13,478
$20,474
$24,342

$22,000
($1,526)
$21,747
$42,220
$46,567

$6,996

$20,474

$42,220

Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

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Grizzly Bear Financial Managers

7.6 Business Ratios

The following table outlines some of the more important ratios from the Portfolio Fund
Managing industry. The final column, Industry Profile, details specific ratios based on the
industry as it is classified by the NAICS code, 523920.
Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

47.31%

14.91%

11.35%

Other Current Assets

Total Current Assets
Long-term Assets
Total Assets

0.00%
82.05%
17.95%
100.00%

0.00%
94.30%
5.70%
100.00%

0.00%
98.00%
2.00%
100.00%

34.12%
95.71%
4.29%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

31.90%
0.00%
31.90%
68.10%

15.89%
0.00%
15.89%
84.11%

9.33%
0.00%
9.33%
90.67%

32.96%
17.78%
50.74%
49.26%

100.00%
92.00%
108.23%
0.00%
-16.23%

100.00%
92.00%
81.47%
0.00%
15.04%

100.00%
92.00%
77.22%
0.00%
21.12%

100.00%
56.89%
19.06%
4.69%
11.71%

2.57
2.57
31.90%
-201.61%
-137.29%

5.93
5.93
15.89%
94.04%
79.10%

10.50
10.50
9.33%
73.58%
66.71%

2.34
2.11
55.75%
2.50%
5.64%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

-16.23%
-201.61%

10.53%
65.83%

14.78%
51.51%

n.a
n.a

11.42
27
8.46

12.17
28
5.26

12.17
28
3.16

n.a
n.a
n.a

0.47
1.00

0.19
1.00

0.10
1.00

n.a
n.a

$5,152
0.00

$19,086
0.00

$41,288
0.00

n.a
n.a

0.12
32%
2.57
12.42
0.00

0.19
16%
5.93
6.25
0.00

0.32
9%
10.50
3.48
0.00

n.a
n.a
n.a
n.a
n.a

Activity Ratios
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 19

Grizzly Bear Financial Managers

Page 20

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0
$0
$0

$2,145
$1,245
$3,390

$2,254
$2,187
$4,441

$3,215
$3,354
$6,569

$3,654
$3,547
$7,201

$3,985
$3,845
$7,830

$4,124
$4,215
$8,339

$4,456
$4,545
$9,001

$4,874
$4,774
$9,648

$5,014
$5,023
$10,037

$5,214
$4,878
$10,092

$5,365
$4,978
$10,343

Sales
Estate planning
Investing
Total Sales
Direct Cost of Sales

0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Estate planning

$0

$172

$180

$257

$292

$319

$330

$356

$390

$401

$417

$429

Investing

$0

$100

$175

$268

$284

$308

$337

$364

$382

$402

$390

$398

Subtotal Direct Cost of Sales

$0

$271

$355

$526

$576

$626

$667

$720

$772

$803

$807

$827

Page 1

Appendix
Table: Personnel

Personnel Plan
Meghan
Administrative Assistant
Total People
Total Payroll

0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$3,500
$0
1

$3,500
$1,920
2

$3,500
$1,920
2

$3,500
$1,920
2

$3,500
$1,920
2

$3,500
$1,920
2

$3,500
$1,920
2

$3,500
$1,920
2

$3,500
$1,920
2

$3,500
$1,920
0

$3,500
$1,920
2

$3,500
$1,920
2

$3,500

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

Page 2

Appendix
Table: General Assumptions

General Assumptions
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

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%

30.00%

30.00%

30.00%

Plan Month

Other

Month 12

Page 3

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

Month 10

Month 11

Month 12

Sales

$0

$3,390

$4,441

$6,569

$7,201

$7,830

$8,339

$9,001

$9,648

$10,037

$10,092

$10,343

Direct Cost of Sales

$0

$271

$355

$526

$576

$626

$667

$720

$772

$803

$807

$827

Other Production Expenses

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$0

$271

$355

$526

$576

$626

$667

$720

$772

$803

$807

$827

Gross Margin
Gross Margin %

$0

$3,119

$4,086

$6,043

$6,625

$7,204

$7,672

$8,281

$8,876

$9,234

$9,285

$9,516

0.00%

92.00%

92.00%

92.00%

92.00%

92.00%

92.00%

92.00%

92.00%

92.00%

92.00%

92.00%

$3,500

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

$100

Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation

$38

$38

$38

$38

$38

$38

$38

$38

$38

$38

$38

$38

Leased Equipment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Utilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$150

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$525
$0

$813
$0

$813
$0

$813
$0

$813
$0

$813
$0

$813
$0

$813
$0

$813
$0

$813
$0

$813
$0

$813
$0

$5,813

$8,021

$8,021

$8,021

$8,021

$8,021

$8,021

$8,021

$8,021

$8,021

$8,021

$8,021

Profit Before Interest and Taxes

($5,813)

($4,902)

($3,935)

($1,978)

($1,396)

($817)

($349)

$260

$855

$1,213

$1,264

$1,495

EBITDA

($5,775)

($4,864)

($3,897)

($1,940)

($1,358)

($779)

($311)

$298

$893

$1,251

$1,302

$1,533

Interest Expense

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Taxes Incurred

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses

Net Profit
Net Profit/Sales

15%

($5,813)

($4,902)

($3,935)

($1,978)

($1,396)

($817)

($349)

$260

$855

$1,213

$1,264

$1,495

0.00%

-144.61%

-88.61%

-30.10%

-19.39%

-10.44%

-4.19%

2.89%

8.86%

12.09%

12.52%

14.45%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Sales

$0

$3,390

$4,441

$6,569

$7,201

$7,830

$8,339

$9,001

$9,648

$10,037

$10,092

$10,343

Subtotal Cash from Operations

$0

$3,390

$4,441

$6,569

$7,201

$7,830

$8,339

$9,001

$9,648

$10,037

$10,092

$10,343

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Received

$0

$3,390

$4,441

$6,569

$7,201

$7,830

$8,339

$9,001

$9,648

$10,037

$10,092

$10,343

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$3,500

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$5,420

$76

$2,294

$2,837

$2,924

$3,090

$3,141

$3,191

$3,232

$3,285

$3,336

$3,366

$3,371

$3,576

$7,714

$8,257

$8,344

$8,510

$8,561

$8,611

$8,652

$8,705

$8,756

$8,786

$8,791

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$3,576

$7,714

$8,257

$8,344

$8,510

$8,561

$8,611

$8,652

$8,705

$8,756

$8,786

$8,791

Net Cash Flow

($3,576)

($4,324)

($3,816)

($1,775)

($1,309)

($731)

($272)

$349

$943

$1,281

$1,306

$1,552

Cash Balance

$15,224

$10,901

$7,085

$5,310

$4,000

$3,270

$2,998

$3,347

$4,290

$5,571

$6,877

$8,429

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

Expenditures

0.00%

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

Subtotal Cash Spent

Page 5

Appendix

Page 6

Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$18,800
$0
$18,800

$15,224
$0
$15,224

$10,901
$0
$10,901

$7,085
$0
$7,085

$5,310
$0
$5,310

$4,000
$0
$4,000

$3,270
$0
$3,270

$2,998
$0
$2,998

$3,347
$0
$3,347

$4,290
$0
$4,290

$5,571
$0
$5,571

$6,877
$0
$6,877

$8,429
$0
$8,429

$2,300
$0
$2,300
$21,100

$2,300
$38
$2,262
$17,486

$2,300
$76
$2,224
$13,125

$2,300
$114
$2,186
$9,271

$2,300
$152
$2,148
$7,458

$2,300
$190
$2,110
$6,110

$2,300
$228
$2,072
$5,342

$2,300
$266
$2,034
$5,032

$2,300
$304
$1,996
$5,343

$2,300
$342
$1,958
$6,248

$2,300
$380
$1,920
$7,491

$2,300
$418
$1,882
$8,759

$2,300
$456
$1,844
$10,273

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0
$0

$2,199
$0
$0
$2,199

$2,740
$0
$0
$2,740

$2,821
$0
$0
$2,821

$2,986
$0
$0
$2,986

$3,034
$0
$0
$3,034

$3,083
$0
$0
$3,083

$3,122
$0
$0
$3,122

$3,174
$0
$0
$3,174

$3,224
$0
$0
$3,224

$3,254
$0
$0
$3,254

$3,258
$0
$0
$3,258

$3,277
$0
$0
$3,277

Long-term Liabilities
Total Liabilities

$0
$0

$0
$2,199

$0
$2,740

$0
$2,821

$0
$2,986

$0
$3,034

$0
$3,083

$0
$3,122

$0
$3,174

$0
$3,224

$0
$3,254

$0
$3,258

$0
$3,277

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$22,000
($900)
$0
$21,100
$21,100

$22,000
($900)
($5,813)
$15,287
$17,486

$22,000
($900)
($10,715)
$10,385
$13,125

$22,000
($900)
($14,650)
$6,450
$9,271

$22,000
($900)
($16,628)
$4,472
$7,458

$22,000
($900)
($18,024)
$3,076
$6,110

$22,000
($900)
($18,841)
$2,259
$5,342

$22,000
($900)
($19,191)
$1,909
$5,032

$22,000
($900)
($18,931)
$2,169
$5,343

$22,000
($900)
($18,076)
$3,024
$6,248

$22,000
($900)
($16,862)
$4,238
$7,491

$22,000
($900)
($15,599)
$5,501
$8,759

$22,000
($900)
($14,104)
$6,996
$10,273

Net Worth

$21,100

$15,287

$10,385

$6,450

$4,472

$3,076

$2,259

$1,909

$2,169

$3,024

$4,238

$5,501

$6,996

Page 7