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[YOUR COMPANY NAME]

Business Plan

INSERT IMAGE/LOGO

[YOUR NAME]
[YOUR ADDRESS]
[YOUR CITY], [YOUR STATE/PROVINCE]
[YOUR ZIP/POSTAL CODE]
[YOUR PHONE NUMBER]
[YOUR EMAIL@YOURCOMPANY.COM]

Table of Contents

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


Chart: Highlights....................................................................................................................2
1.1 Objectives...........................................................................................................................2
1.2 Mission................................................................................................................................2
1.3 Keys to Success.................................................................................................................2
2.0 Company Summary................................................................................................................3
2.1 Company Ownership..........................................................................................................3
2.2 Start-up Summary...............................................................................................................3
Table: Start-up.......................................................................................................................3
Chart: Start-up.......................................................................................................................4
3.0 Products and Services............................................................................................................4
4.0 Market Analysis Summary......................................................................................................4
4.1 Market Segmentation..........................................................................................................5
Table: Market Analysis...........................................................................................................5
4.2 Target Market Segment Strategy........................................................................................6
4.3 Service Business Analysis..................................................................................................6
4.3.1 Competition and Buying Patterns.................................................................................6
5.0 Web Plan Summary................................................................................................................6
5.1 Website Marketing Strategy................................................................................................6
5.2 Development Requirements...............................................................................................7
6.0 Strategy and Implementation Summary.................................................................................7
6.1 SWOT Analysis...................................................................................................................8
6.1.1 Strengths......................................................................................................................8
6.1.2 Weaknesses.................................................................................................................8
6.1.3 Opportunities................................................................................................................8
6.1.4 Threats.........................................................................................................................9
6.2 Competitive Edge................................................................................................................9
6.3 Marketing Strategy..............................................................................................................9
6.4 Sales Strategy.....................................................................................................................9
6.4.1 Sales Forecast...........................................................................................................10
Table: Sales Forecast......................................................................................................10
Chart: Sales Monthly.......................................................................................................10
Chart: Sales by Year........................................................................................................11
6.5 Milestones.........................................................................................................................11
Table: Milestones.................................................................................................................11

Table of Contents

Chart: Milestones................................................................................................................12
7.0 Management Summary........................................................................................................12
7.1 Personnel Plan..................................................................................................................12
Table: Personnel..................................................................................................................13
8.0 Financial Plan.......................................................................................................................13
8.1 Start-up Funding...............................................................................................................13
Table: Start-up Funding.......................................................................................................13
8.2 Important Assumptions.....................................................................................................14
8.3 Break-even Analysis.........................................................................................................14
Table: Break-even Analysis.................................................................................................14
Chart: Break-even Analysis.................................................................................................15
8.4 Projected Profit and Loss..................................................................................................15
Table: Profit and Loss..........................................................................................................16
Chart: Profit Monthly............................................................................................................17
Chart: Profit Yearly..............................................................................................................17
Chart: Gross Margin Monthly..............................................................................................18
Chart: Gross Margin Yearly.................................................................................................18
8.5 Projected Cash Flow.........................................................................................................19
Table: Cash Flow.................................................................................................................19
Chart: Cash.........................................................................................................................20
8.6 Projected Balance Sheet..................................................................................................20
Table: Balance Sheet..........................................................................................................21
8.7 Business Ratios................................................................................................................21
Table: Ratios........................................................................................................................21
Table: Sales Forecast...................................................................................................................1
Table: Personnel...........................................................................................................................2
Table: Profit and Loss...................................................................................................................3
Table: Cash Flow..........................................................................................................................4
Table: Balance Sheet....................................................................................................................5

1.0 Executive Summary


[YOUR COMPANY NAME]
[YOUR NAME]
[YOUR COMPLETE ADDRESS]
Phone: [YOUR PHONE NUMBER]
Email: [YOUR EMAIL@YOURCOMPANY.COM]
Introduction
[YOUR COMPANY NAME] develops and maintains Bees for the pollination of agricultural crops, the
production of honey and pure beeswax.
Location
[YOUR COMPANY NAME] is located at [YOUR COMPLETE ADDRESS].
The Company
[YOUR COMPANY NAME] is determining its formal company structure with 50% ownership held by
[NAME]s.
Our Services
[YOUR COMPANY NAME] sells bee pollination services for the fertilization of crops, organic FDA approved
honey and pure beeswax.
Financial Considerations
The current financial plan for [YOUR COMPANY NAME] is to secure funding in the amount of $680,000. The
funding will be used to purchase bees and produce bee hives, construct a honey kitchen, purchase
land, equipment, a service truck and provide salaries for employees and working capital until the business
maintains profitability.
The major focus for funding is as follows:
To fund a company that will breed, house and transport bees, facing extinction, which are critical for the
pollination of agricultural crops.

Chart: Highlights
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1.1 Objectives
The objectives of [YOUR COMPANY NAME] are:

To become a premier provider of bee pollination service in [YOUR COUNTRY].


To help reestablish the bee population essential to the fertilization of fruits and vegetables and sustain its
ability to feed itself.
To market organic honey and beeswax.

1.2 Mission
[YOUR COMPANY NAME] will develop into the most valuable provider of commercial colony bees for the
pollination of agricultural crops and protection of the natural ecosystem in [YOUR COUNTRY] and globally by
providing a robust bee population that provides optimal pollination services to a diverse range of horticultural
crops.
1.3 Keys to Success
The key to the success of [YOUR COMPANY NAME] as the premier provider of quality bee pollination
services are:

The current demand for the biggest insect migration in the country in order to pollinate the billionpound California almond crop, which is among the State's most valuable agricultural product, which is
only one of a vast number of crops in need of pollination.
The unfortunate global edge of extinction of the most important pollinator, the bee population, essential to
the fertilization of agricultural crops.
Decades of beekeeping experience training and education.

A commitment to the service of pollinating the nation's crops and reestablishing the Country's bee
population.

2.0 Company Summary


[YOUR COMPANY NAME] was established in 1949 as a hobby farm of bee keepers by [YOUR NAME].
Located in [YOUR CITY], [YOUR STATE/PROVINCE], [YOUR COMPANY NAME] provides
commercial agricultural pollination by the most valuable pollinator, bees. [YOUR COMPANY NAME] is a
commercial beekeeper that raises, rents and transports bee hives for the pollination of agricultural crops in
[YOUR COUNTRY].
2.1 Company Ownership
[YOUR COMPANY NAME] is owned in equal parts by [NAME]S and the company is currently examining the
best alternatives for its legal establishment in order to provide [YOUR COUNTRY] with its quality pollination
services.
2.2 Start-up Summary
[YOUR COMPANY NAME] is requesting financing in the amount of $680,000, of this amount, $40,576 will be
used to fund start up expenses incurred until financing is secured which is projected to be August of 2011.
Table: Start-up

Start-up
Requirements
Start-up Expenses
Bee Boxes
Bee supplies
Honey supplies
Rent
Bee suits
Utilities
Total Start-up Expenses

$35,000
$1,302
$1,582
$1,764
$340
$588
$40,576

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

$59,424
$0
$580,000
$639,424

Total Requirements

$680,000

Chart: Start-up
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3.0 Products and Services


The primary service ultimately provided by [YOUR COMPANY NAME] will be agricultural crop pollination once
the company has increased an established bee population. The first step in development is to increase the
company's bee population along with the associated hives and facilities required to maintain and service a
healthy population. The by- products of honey and beeswax will also be marketed and associated profits will
be reinvested in the acquisition and maintenance of the bees. Once a healthy population in attained,
pollination services will commence and the bees will be transported as required and the continued
development of the bee population will be an ongoing company priority.
4.0 Market Analysis Summary
The non-native European honey bee (Apis mellifera) is the most important crop pollinator in the United States.
However, because of disease and other factors the number of managed honey bee hives in [YOUR
COUNTRY] has declined by 50 percent since 1950 (NRC, 2007). During this same period, the amount of crop
acreage requiring bee pollination has continued to grow. This makes native pollinators even more important to
the future of agriculture.
According to the United States Environmental Protection Agency, there are over 285,000,000 people living in
the United States. Of that population, less than 1% claim farming as an occupation (and about 2% actually
live on farms). There are only about 960,000 persons claiming farming as their principal occupation and a
similar number of farmers claiming some other principal occupation. The number of farms in the U.S. stands
at about two million.
For the purposes of the U.S. Census, a farm is any establishment which produced and sold, or normally
would have produced and sold, $1,000 or more of agricultural products during the year. (Government
subsidies are included in sales.) By that definition, there are just over 2.1 million farms in the United States.
According to the 1997 Census of Agriculture, the vast majority of farms in this country (90%) are owned and
operated by individuals or families. The next largest category of ownership is partnerships (6%). The

Corporate farms account for only 3% of U.S. farms and 90% of those are family owned. Many of the
countrys largest agricultural enterprises are family owned. Likewise, many farm families have formed modestsized corporations to take advantage of legal and accounting benefits of that type of business enterprise.
Native bees provide free pollination services and are often specialized for foraging on particular flowers, such
as squash, berries or orchard crops. This specialization results in more efficient pollination and the production
of larger and more abundant fruit from certain crops (Tepedino, 1981; Bosch and Kemp, 2001; Javorek et. al.,
2002). The pollination done by native bees contributes an estimated $3 billion worth of crop production
annually to the U.S. economy.
[YOUR COMPANY NAME] will target the 960,000 people in [YOUR COUNTRY] claiming farming as their
principal occupation.
4.1 Market Segmentation
Farmers of specialty crops such as almonds, apples, blackberries, blueberries, cherries, cranberries, pears,
plums, squash, tomatoes and watermelons require bee pollination for the production of their crops. Oil and
biofuel crops requiring bee pollination include canola and sunflower. Even meat and dairy industries are
dependent on bee pollination for the production of forage seed such as alfalfa and clover.
Ironically, the farms that need bees the most are a big part of problem. Giant weed-free farms that destroy
habitat and use a lot of pesticides are the worst offenders, Thorp says, and have helped drive some bees to
edge of extinction.
Commercial beekeeping can be very lucrative," says Johnson, who is also vice president of the California
State Beekeepers Association. Farmers in the United States pay about $150 million a year to rent hives, and
demand is growing.
More than a million hives will pour in to the California almond orchards. The almond industry is booming, and
growers expect they'll need closer to 2 million hives to pollinate all the new trees that will start bearing nuts by
2010. That means 80 percent of the approximately 2.3 million commercial bee colonies that exist now in the
United States will have to travel to the California orchards just to meet demand.
Table: Market Analysis

Market Analysis
Potential Customers
U.S. Farmers
Other
Total

Growth
1%
0%
1.00%

Year 1

Year 2

Year 3

Year 4

Year 5

960,000
0
960,000

969,600
0
969,600

979,296
0
979,296

989,089
0
989,089

998,980
0
998,980

CAGR
1.00%
0.00%
1.00%

4.2 Target Market Segment Strategy


The goal of [YOUR COMPANY NAME] is to target the farmers of specialty crops, the giant weed-free farms
that destroy habitat and use a lot of pesticides, the oil and bio fuel crops requiring bee pollination, and even
the meat and dairy industries dependent on bee pollination for the production of forage seed such as alfalfa
and clover.

4.3 Service Business Analysis


[YOUR COMPANY NAME] provides honey bees during flowering to pollinate crops of which the presence of
these pollination hives is critical to the development of an economically viable crop.
Beginning in October 2006, some bee keepers began reporting losses of 30-90 percent of their hives. While
colony losses are not unexpected during winter weather, the magnitude of loss suffered by some bee keepers
was highly unusual and this phenomenon, which currently does not have a recognizable underlying cause,
has been termed "Colony Collapse Disorder" (CCD). With such a substantial loss of the bee population it is
difficult to determine the remaining available pollinating bee population and along with the fact that bee
pollination is responsible for $15 billion in added crop value, particularly for specialty crops such as almonds
and other nuts, berries, fruits, and vegetables it is easy to see the current demand for an increase in
pollination services.
4.3.1 Competition and Buying Patterns
With the current decline in the population of pollinating bees, it has become necessary for farmers to rent and
import hives during pollination seasons. Bee keepers pack and transport their hives for rent to farmers across
the country during various seasons returning home after months of extended travel.
[YOUR COMPANY NAME] has established excellence in bee keeping and will help fulfill the pollination
requirements of the Nation by leading in outsourcing its bee inventory for the production of healthy crops in
this country.
5.0 Web Plan Summary
The company website will be designed to provide potential customers with all the necessary information,
presented in a simple, organized fashion, required for the customer to make an informed decision regarding
utilizing company services. The website will provide company location, hours, detailed description of services
provided and associated fees, pictures and images of company services and offerings, the ability for the
customer to schedule appointments and or consultations and review the results of customer satisfaction
surveys.
5.1 Website Marketing Strategy
Research indicates that an easy-to-use website significantly increases sales. A sophisticated website is vital
to our marketing strategy to attract new customers and retain existing ones. The website must be visibly
appealing yet simple and organized, encouraging sales. The site must be organized in such a way
that facilitates browsing and the ability of potential customers to locate relevant information, illustrations and
descriptions. The design of the company's website will encourage sales if it is efficient and easy to use and
provides the customer with the ability to make online purchases and consultations and secure payment.
An easy to use, simple website is of the utmost importance in securing sales as research indicates that many
websites lose customers without securing purchases because the site is confusing and not easily navigated
leaving customers aimlessly migrating through a site and leaving in frustration.
The website will be created in such a way as to allow it to be easily updated and maintained by
management to maximize efficiency in detailing product descriptions and pricing information and to ensure
the safety and security of all purchases and customer information. The website will be supported by the Pay
Pal financial transaction processing system.
[YOUR COMPANY NAME] will focus on utilizing modern forms of internet and social media advertising to
create company visibility, detail services provided with associated fee information when possible and promote

customer satisfaction survey results and candid testimonials. The company goal is to rank high for preferred
keywords on the main search engines in "organic" or "natural" searches and increase search engine
optimization by writing a keyword rich title. The company will submit the website to key directories. The
company will also dramatically increase visibility by writing bee keeping and pollination related articles and
distribute them to editors as free content for e-mail newsletters or websites requesting that a link to the
company website and a one-line description of company offerings be included with the article.
It is projected that the company website will become fully operational within three months and some or all of
the site construction will be implemented by management when feasible unless management determines the
cost of a professional is justified.
5.2 Development Requirements
[YOUR COMPANY NAME] will utilize an online website builder for the establishment of the Company's
website and user interface which the Company expects to establish within thirty days of receipt of funding.
The website will be an ongoing company project and will be updated as service offerings are extended
and modified and as customer testimonials and survey results are received.
6.0 Strategy and Implementation Summary
The primary sales and marketing strategy for [YOUR COMPANY NAME] consists of the following:
1. To provide an unparalleled pollination service to farmers for the production of fruits and vegetables in
[YOUR COUNTRY].
2. To establish a loyal following of farmers based on a high level of customer satisfaction.
3. To provide the highest quality pollination at the most competitive price.
4. To establish and maintain an extensive database of farmers for marketing purposes.
[YOUR COMPANY NAME] has clearly defined the target market and has differentiated itself by offering
a solid solution to fulfilling its customers' needs. Reasonable sales targets have been established with an
implementation plan designed to ensure the goals set forth are achieved.
6.1 SWOT Analysis
The SWOT analysis aids in displaying the internal strengths and weaknesses that [YOUR COMPANY NAME]
must address. It allows us to examine the opportunities presented as well as its potential threats. The
Company's strength will help it to succeed and strengths are valuable, but it is also important to realize the
weaknesses the Company must address which include the lack of funding to expand and grow the
business. The Company's strengths will help it capitalize on emerging opportunities which include, but are not
limited to the fact that [YOUR COMPANY NAME] has established a name for itself within the community by
providing excellence in the production and sustenance of the bee population as well as the production of
organic honey and has established itself as a quality provider of service to those in need. The Company's
focus is to expand upon this base by increasing customer awareness through the use of social
network advertising, cultivated agricultural relationships and the creation of a website featuring the
company's pollination services to familiarize the general public and increase visibility. The combination of
these efforts along with an increased visibility will ensure a greater market share going forward. Threats
that the company should be aware of include, the existing economically challenged financial environment we
all presently face.

6.1.1 Strengths
[YOUR COMPANY NAME] intends to distinguish itself as a leader in the agricultural pollination industry by not
only providing service to farmers in need of crop pollination but by providing an essential global environmental
service in order to reestablish the bee population in this country . Company production of [YOUR COUNTRY]
bee population will account for a large part of its growth as the nation continues its recognition for the need
of support efforts to produce and sustain crops to feed the population of our nation, reducing our dependency
on imported fruits and vegetables and increasing the ability of our country to feed itself.
6.1.2 Weaknesses
The weakness facing [YOUR COMPANY NAME] is the lack of funding to develop and sustain itself to
profitability.
6.1.3 Opportunities
The opportunities presented to [YOUR COMPANY NAME] are the immediate demand for bees. According to
answers.com over seventy five percent of all plants need birds, bees, and bats, as well as other creatures, for
pollination. Unfortunately there has been an alarming worldwide reduction in the number of honeybees over
the past few years. The reasons are familiar: loss of habitat, lack of nectar, and the use of pesticides are all
thought to be factors. There are some 25,000 known species of bees around the world, but some of them are
nearing extinction.
Millions of the insects have disappeared and their whereabouts are unknown. Scientists have coined a phrase
for the problem: Colony Collapse Disorder or CCD. There are signs that one of the problems the bees face is
a disease that resembles HIV/AIDS in humans. With weakened immune systems, the bees are incapable of
warding off disease. Some have even suggested that the disappearances may be caused by the increased
use of cell phones and cell phone towers with something about the frequencies disorientating the bee's
navigation system.*
Like wild bees, commercially raised bees are in danger. Farmed honeybee stocks in [YOUR COUNTRY] have
declined by 39 percent since the arrival of exotic mites in the 1980s, according to the new report from the
National Academies. Johnson says most keepers are losing 30 to 40 percent of their hives each year to mites
and starvation, which supports the need for an increase in the production and maintenance of the bee
population by [YOUR COMPANY NAME].
6.1.4 Threats
The threat faced by [YOUR COMPANY NAME] is the lack of funding to finance the necessities required to
expand and sustain the development of a substantial bee population.
6.2 Competitive Edge
[YOUR COMPANY NAME] maintains the competitive edge of no bee pollination service competition in the
area and the current demand for an increase in the bee population for fertilization purposes ensures the
Company's position.
6.3 Marketing Strategy
Escalating public interest in the newest communication devices is well documented and has become an
important part of everyday life for virtually every age group and ethnic background. Modern communication
methods such as texting, emailing, and the use of social websites, blogs, and sophisticated company
websites must be an integral part of a company's marketing strategy for it to become and remain successful.

Every effort should be exhausted to develop printed and present public marketing materials in an identical
and consistent manner. Company "branding" defines companies with the use of advertisements, flyers,
business cards, letterhead, forms, marketing materials, and the company website all having identical design,
color, logo, and appearances. With the use of company branding in early stages, the public immediately
identifies and recognizes a marketing piece as belonging to a company once sufficiently exposed.
Not more than 10% of annual gross sales will be allocated to the marketing budget and regardless of
what type of marketing campaign is developed; management will make a conscious effort to research and
gather data supporting and testing the campaign, and analyze directly related expenses with potential profit to
determine cost justification.
Marketing research and the compilation of data will include the development and maintenance of a
customer information database that will be used for email, text, telephone or direct mail advertising
campaigns.
Future consideration will be given to any economical marketing strategies that assist in obtaining referral
business through verbal advertising, and converting new customers into loyal repetitive ones.
6.4 Sales Strategy
[YOUR COMPANY NAME] will lend its population to farmers requiring pollination services throughout the
country optimizing visibility and order processing using advanced forms of internet advertising, agricultural
and horticultural media, and environmental agencies, increasing service visibility to farmers nationwide.
6.4.1 Sales Forecast
It is anticipated that by the end of year one [YOUR COMPANY NAME] will have developed and maintained 48
hives used for servicing the pollination of crops at $200/hive in year two with a 30% increase in revenue in
year three. The cost of sales for organic honey and beeswax estimated at 30% of sales.
Table: Sales Forecast

Sales Forecast
Sales
Pollination Services
Organic Honey Sales
Beeswax Sales
Total Sales
Direct Cost of Sales
Organic Honey Costs
Beeswax Costs
Subtotal Direct Cost of Sales

Year 1

Year 2

Year 3

$73,440
$1,875
$3,500
$78,815

$115,200
$2,344
$4,375
$121,919

$149,760
$3,047
$5,687
$158,494

Year 1
$563
$1,050
$1,613

Year 2
$703
$1,312
$2,016

Year 3
$914
$1,706
$2,620

Chart: Sales Monthly


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Chart: Sales by Year


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6.5 Milestones
[YOUR COMPANY NAME] will utilize grant funding expected to be received by August of 2011 by:

10

Purchasing land to house the impending and existing bee population.


Build necessary housing structure.
Build and equip a honey kitchen.
Purchase hives.
Implement an aggressive advertising campaign.
Funding the company's working capital in order to cover operating expenses and projected payroll.

Table: Milestones
Milestones
Milestone
Purchase Land
Construct Facility
Construct & Equip Kitchen
Purchase Truck
Purchase Hives
Implement Advertising
Fund Working Capital
Totals

Start
Date
8/1/2011
9/1/2011
9/1/2011
8/1/2011
9/1/2011
9/1/2011
9/1/2011

End Date

Budget

10/1/2011
12/31/2011
12/31/2011
10/1/2011
12/31/2011
12/31/2011
12/31/2011

$290,000
$60,000
$50,000
$60,000
$120,000
$10,000
$90,000
$680,000

Manager

Department

YOUR NAME
YOUR NAME
YOUR NAME
YOUR NAME
YOUR NAME
YOUR NAME
YOUR NAME

Owner
Owner
Owner
Owner
Owner
Owner
Owner

Chart: Milestones
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7.0 Management Summary


[YOUR COMPANY NAME] was established in 1949 by [YOUR NAME], father of [YOUR NAME] who has
maintained bees all of his life. [YOUR NAME] and his family has kept bees since early childhood. [YOUR

11

COMPANY NAME] will convey its commitment to quality service and professionalism by investing the time
required to extensively train all company personnel to uphold and adhere to the Company's standards of
excellence in service and business decorum.
YOUR NAME(S), Owners and Operations Managers, will oversee all elements of the Company and its
operations, profitability and commitment to service and exceeding customer expectations. The Company
projects the inclusion of additional employees by the end of year one.
7.1 Personnel Plan
[YOUR COMPANY NAME] projects the extension of additional employees by the end of year 1 with salaries
including a 3% annual cost of living increase in year two. It is the Company's goal to provide stable
employment with proportionate salaries to its bee keepers in order to compensate appropriately for the
working environment and extended travel once pollination services commence.
Table: Personnel
Personnel Plan
YOUR NAME
YOUR NAME
Laborers
Total People

Year 1
$30,000
$15,000
$30,000
0

Year 2
$30,900
$15,450
$30,900
0

Year 3
$31,827
$15,914
$31,827
0

Total Payroll

$75,000

$77,250

$79,568

8.0 Financial Plan


The current financial plan for [YOUR COMPANY NAME] is to obtain funding in the amount of $680,000. The
funding will be used to purchase bees, construct hives, purchase land, construct a honey kitchen, purchase a
company truck and necessary equipment and to provide operating funds until the Company maintains
profitability.
The following sections of this plan will serve to describe the Company's financial plan in more detail:

General Assumptions
Break-even Analysis
Profit and Loss
Cash Flow
Balance Sheet
Ratios

12

8.1 Start-up Funding


[YOUR COMPANY NAME] has requested funding in the amount of $680,000 and expects receipt of that
funding in August of 2011, at which time the company will proceed with the goals listed in the Milestones table
executing the company purchases as listed and funding working capital.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$40,576
$639,424
$680,000

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

$580,000
$59,424
$0
$59,424
$639,424

Liabilities and Capital


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

$0
$0
$0
$0
$0

Planned Investment
Owner
Investor
Additional Investment Requirement
Total Planned Investment

$0
$680,000
$0
$680,000

Loss at Start-up (Start-up Expenses)


Total Capital

($40,576)
$639,424

Total Capital and Liabilities


Total Funding

$639,424
$680,000

13

8.2 Important Assumptions


The tables below present the assumptions used in the financial calculations of this funding plan. [YOUR
COMPANY NAME] is determining its status as a company and according to this plan is taxed accordingly at
an estimated 25% tax rate. Depreciation expense is based on the scheduled additions in the Milestones table.
Insurance, utilities and all other expenses assume a 3% annual increase due to inflation & other cost
variables.
8.3 Break-even Analysis
The Company's monthly revenue break-even analysis for year 1 is projected to be $14,977. Sales are
projected to increase 30% for year 3 due to the internal expansion of the Company and corresponding
advertising campaigns.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$14,977

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

2%
$14,671

Chart: Break-even Analysis


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8.4 Projected Profit and Loss


The sales for year 1, year 2 and year 3 for [YOUR COMPANY NAME] are $78,815, $121,919 and $158,494,
respectively. Gross Profit will be 98% in year 1, year 2 and year 3. The Company will show a Net Loss for
year 1, year 2 and year 2 of ($98,844), ($59,687) and ($27,367) respectively due to the internal expansion of
the Company to launch the marketing, sales and operation efforts needed to take advantage of the market
and growth in the future years.
The Company will show a negative EBITDA of ($40,948) in year 1, ($1,791) in year 2 and a positive EBITDA
of $30,529 in year 3. The Operating expenses as a percentage of sales for this period were 223.37%,
147.30% and 115.61%, respectively. The percentages of the net profit to sales for this period were (125.41)%,
(48.96)% and (17.27)%, respectively. The Operating Expenses and Net Profit to Sales for the year 1,
year 2 and year 3 periods are affected by the internal expansion of the Company. Gross Profit will remain in
the 98% range in year 4 and beyond. The Company estimates a positive Net Profit in year 4.
Net Profit and Net Profit to Sales Percentage will continue to rise in future years as the internal expansion and
investments in Marketing and Advertising bear fruit.
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

Year 1
$78,815
$1,613
$0
$1,613

Year 2
$121,919
$2,016
$0
$2,016

Year 3
$158,494
$2,620
$0
$2,620

Gross Margin
Gross Margin %

$77,203
97.95%

$119,903
98.35%

$155,874
98.35%

Expenses
Payroll
Marketing/Promotion
Depreciation
Supplies
Utilities
Insurance
Payroll Taxes
Travel

$75,000
$10,000
$57,896
$2,700
$4,800
$2,400
$11,250
$12,000

$77,250
$10,300
$57,896
$2,781
$4,944
$2,472
$11,588
$12,360

$79,568
$10,609
$57,896
$2,864
$5,092
$2,546
$11,935
$12,731

Total Operating Expenses

$176,046

$179,591

$183,241

Profit Before Interest and Taxes


EBITDA
Interest Expense
Taxes Incurred

($98,844)
($40,948)
$0
$0

($59,687)
($1,791)
$0
$0

($27,367)
$30,529
$0
$0

Net Profit
Net Profit/Sales

($98,844)
-125.41%

($59,687)
-48.96%

($27,367)
-17.27%

15

Chart: Profit Monthly


INCLUDEPICTURE "ooxWord://word/media/image9.emf" \* MERGEFORMATINET

Chart: Profit Yearly


INCLUDEPICTURE "ooxWord://word/media/image10.emf" \* MERGEFORMATINET

16

Chart: Gross Margin Monthly


INCLUDEPICTURE "ooxWord://word/media/image11.emf" \* MERGEFORMATINET

Chart: Gross Margin Yearly


INCLUDEPICTURE "ooxWord://word/media/image12.emf" \* MERGEFORMATINET

17

8.5 Projected Cash Flow


[YOUR COMPANY NAME] has applied for funding in the amount of $680,000. The Company has forecast
that it will receive its funding in the month August of 2011.
The following table displays the Company's cash flow for year 1, year 2 and year 3 and the following chart
illustrates monthly cash flow in the first year. Monthly cash flow projections are also included in the appendix.
Table: Cash Flow
Pro Forma Cash Flow
Year 1

Year 2

Year 3

Cash from Operations


Cash Sales
Subtotal Cash from Operations

$78,815
$78,815

$121,919
$121,919

$158,494
$158,494

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

$0
$0
$0
$0
$0
$0
$0
$78,815

$0
$0
$0
$0
$0
$0
$0
$121,919

$0
$0
$0
$0
$0
$0
$0
$158,494

Year 1

Year 2

Year 3

Expenditures from Operations


Cash Spending
Bill Payments
Subtotal Spent on Operations

$75,000
$41,202
$116,202

$77,250
$19,174
$96,424

$79,568
$71,267
$150,834

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

$0
$0
$0
$0
$0
$0
$0
$116,202

$0
$0
$0
$0
$0
$0
$0
$96,424

$0
$0
$0
$0
$0
$0
$0
$150,834

Net Cash Flow


Cash Balance

($37,387)
$22,037

$25,495
$47,532

$7,660
$55,192

Cash Received

Expenditures

18

Chart: Cash
INCLUDEPICTURE "ooxWord://word/media/image13.emf" \* MERGEFORMATINET

8.6 Projected Balance Sheet


[YOUR COMPANY NAME]'s net worth is $540,580, $480,893 and $453,526 for years 1, 2 and 3, respectively.
The Company's Total Assets at the end of 2011, 2012 and 2013 will be $544,141, $511,740 and $461,503,
respectively.

19

Table: Balance Sheet


Pro Forma Balance Sheet
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
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Year 1

Year 2

Year 3

$22,037
$0
$22,037

$47,532
$0
$47,532

$55,192
$0
$55,192

$580,000
$57,896
$522,104
$544,141

$580,000
$115,792
$464,208
$511,740

$580,000
$173,688
$406,312
$461,503

Year 1

Year 2

Year 3

$3,561
$0
$0
$3,561
$0
$3,561
$680,000
($40,576)
($98,844)
$540,580
$544,141
$540,580

$30,847
$0
$0
$30,847
$0
$30,847
$680,000
($139,420)
($59,687)
$480,893
$511,740
$480,893

$7,978
$0
$0
$7,978
$0
$7,978
$680,000
($199,107)
($27,367)
$453,526
$461,503
$453,526

8.7 Business Ratios


The table below presents the projected business ratios from the Agriculture Industry as a reference with sales
below $500,000.
Table: Ratios
Ratio Analysis
Sales Growth
Percent of Total Assets
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

20

Year 1
n.a.

Year 2
54.69%

Year 3
30.00%

Industry Profile
5.29%

0.00%
4.05%
95.95%
100.00%

0.00%
9.29%
90.71%
100.00%

0.00%
11.96%
88.04%
100.00%

38.63%
47.47%
52.53%
100.00%

0.65%
0.00%
0.65%
99.35%

6.03%
0.00%
6.03%
93.97%

1.73%
0.00%
1.73%
98.27%

19.01%
79.98%
98.99%
1.01%

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
Net Profit Margin
Return on Equity
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

21

100.00%
97.95%
223.37%
12.69%
-125.41%

100.00%
98.35%
147.30%
8.45%
-48.96%

100.00%
98.35%
115.61%
6.69%
-17.27%

100.00%
71.78%
12.73%
0.36%
5.06%

6.19
6.19
0.65%
-18.28%
-18.17%

1.54
1.54
6.03%
-12.41%
-11.66%

6.92
6.92
1.73%
-6.03%
-5.93%

1.46
1.17
98.99%
936.59%
9.43%

Year 1
-125.41%
-18.28%

Year 2
-48.96%
-12.41%

Year 3
-17.27%
-6.03%

n.a
n.a

12.57
27
0.14

1.51
135
0.24

6.07
146
0.34

n.a
n.a
n.a

0.01
1.00

0.06
1.00

0.02
1.00

n.a
n.a

$18,477
0.00

$16,685
0.00

$47,214
0.00

n.a
n.a

6.90
1%
6.19
0.15
0.00

4.20
6%
1.54
0.25
0.00

2.91
2%
6.92
0.35
0.00

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

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

Sales
Pollination Services
Organic Honey Sales
Beeswax Sales
Total Sales

$1,680
$375
$292
$2,347

$1,680
$375
$292
$2,347

$1,680
$375
$292
$2,347

$3,600
$375
$292
$4,267

$3,600
$375
$292
$4,267

$3,600
$0
$292
$3,892

$9,600
$0
$292
$9,892

$9,600
$0
$292
$9,892

$9,600
$0
$292
$9,892

$9,600
$0
$292
$9,892

Direct Cost of Sales

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

$113
$88
$200

$113
$88
$200

$113
$88
$200

$113
$88
$200

$113
$88
$200

$0
$88
$88

$0
$88
$88

$0
$88
$88

$0
$88
$88

Month
10
$0
$88
$88

Organic Honey Costs


Beeswax Costs
Subtotal Direct Cost of
Sales

Month
11
$9,600
$0
$292
$9,892
Month
11
$0
$88
$88

Month
12
$9,600
$0
$292
$9,892
Month
12
$0
$88
$88

Page 1

Appendix
Table: Personnel

Personnel Plan
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9
$2,500
$1,250
$2,500
0

Month
10
$2,500
$1,250
$2,500
0

Month
11
$2,500
$1,250
$2,500
0

Month
12
$2,500
$1,250
$2,500
0

YOUR NAME
YOUR NAME
Laborers
Total People

$2,500
$1,250
$2,500
0

$2,500
$1,250
$2,500
0

$2,500
$1,250
$2,500
0

$2,500
$1,250
$2,500
0

$2,500
$1,250
$2,500
0

$2,500
$1,250
$2,500
0

$2,500
$1,250
$2,500
0

$2,500
$1,250
$2,500
0

Total Payroll

$6,250

$6,250

$6,250

$6,250

$6,250

$6,250

$6,250

$6,250

$6,250

$6,250

$6,250

$6,250

Page 2

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

$2,347
$200
$0
$200

$2,347
$200
$0
$200

$2,347
$200
$0
$200

$4,267
$200
$0
$200

$4,267
$200
$0
$200

$3,892
$88
$0
$88

$9,892
$88
$0
$88

$9,892
$88
$0
$88

$9,892
$88
$0
$88

Month
10
$9,892
$88
$0
$88

$2,147
91.48%

$2,147
91.48%

$2,147
91.48%

$4,067
95.31%

$4,067
95.31%

$3,804
97.75%

$9,804
99.12%

$9,804
99.12%

$9,804
99.12%

$9,804
99.12%

$9,804
99.12%

$9,804
99.12%

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$6,250
$833
$4,825
$225
$400
$200
$938
$1,000

$14,671

$14,671

$14,671

$14,671

$14,671

$14,671

$14,671

$14,671

$14,671

$14,671

$14,671

$14,671

Profit Before Interest


and Taxes
EBITDA
Interest Expense
Taxes Incurred

($12,524)

($12,524)

($12,524)

($10,604)

($10,604)

($10,866)

($4,866)

($4,866)

($4,866)

($4,866)

($4,866)

($4,866)

($7,699)
$0
$0

($7,699)
$0
$0

($7,699)
$0
$0

($5,779)
$0
$0

($5,779)
$0
$0

($6,042)
$0
$0

($42)
$0
$0

($42)
$0
$0

($42)
$0
$0

($42)
$0
$0

($42)
$0
$0

($42)
$0
$0

Net Profit
Net Profit/Sales

($12,524)
-533.69%

($12,524)
-533.69%

($12,524)
-533.69%

($10,604)
-248.53%

($10,604)
-248.53%

($10,866)
-279.22%

($4,866)
-49.20%

($4,866)
-49.20%

($4,866)
-49.20%

($4,866)
-49.20%

($4,866)
-49.20%

($4,866)
-49.20%

Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %

Expenses
Payroll
Marketing/Promotion
Depreciation
Supplies
Utilities
Insurance
Payroll Taxes
Travel
Total Operating
Expenses

15%

Month
11
$9,892
$88
$0
$88

Month
12
$9,892
$88
$0
$88

Page 3

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

$2,347
$2,347

$2,347
$2,347

$2,347
$2,347

$4,267
$4,267

$4,267
$4,267

$3,892
$3,892

$9,892
$9,892

$9,892
$9,892

$9,892
$9,892

$9,892
$9,892

$9,892
$9,892

$9,892
$9,892

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0
$0
$0
$2,347

$0
$0
$0
$0
$2,347

$0
$0
$0
$0
$2,347

$0
$0
$0
$0
$4,267

$0
$0
$0
$0
$4,267

$0
$0
$0
$0
$3,892

$0
$0
$0
$0
$9,892

$0
$0
$0
$0
$9,892

$0
$0
$0
$0
$9,892

$0
$0
$0
$0
$9,892

$0
$0
$0
$0
$9,892

$0
$0
$0
$0
$9,892

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month
10

Expenditures from Operations


Cash Spending
Bill Payments
Subtotal Spent on Operations

$6,250
$127
$6,377

$6,250
$3,796
$10,046

$6,250
$3,796
$10,046

$6,250
$3,796
$10,046

$6,250
$3,796
$10,046

$6,250
$3,792
$10,042

$6,250
$3,683
$9,933

$6,250
$3,683
$9,933

$6,250
$3,683
$9,933

$6,250
$3,683
$9,933

$6,250
$3,683
$9,933

$6,250
$3,683
$9,933

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0
$0
$6,377

$0
$0
$10,046

$0
$0
$10,046

$0
$0
$10,046

$0
$0
$10,046

$0
$0
$10,042

$0
$0
$9,933

$0
$0
$9,933

$0
$0
$9,933

$0
$0
$9,933

$0
$0
$9,933

$0
$0
$9,933

($4,030)
$55,394

($7,699)
$47,695

($7,699)
$39,996

($5,779)
$34,217

($5,779)
$28,437

($6,150)
$22,287

($42)
$22,245

($42)
$22,204

($42)
$22,162

($42)
$22,120

($42)
$22,079

($42)
$22,037

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 (interestfree)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

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

0.00%

Month 11

Month
12

Page 4

Appendix
Table: Balance Sheet

Pro Forma Balance


Sheet
Assets

Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total 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

$59,424
$0
$59,424

$55,394
$0
$55,394

$47,695
$0
$47,695

$39,996
$0
$39,996

$34,217
$0
$34,217

$28,437
$0
$28,437

$22,287
$0
$22,287

$22,245
$0
$22,245

$22,204
$0
$22,204

$22,162
$0
$22,162

$22,120
$0
$22,120

$22,079
$0
$22,079

$22,037
$0
$22,037

$580,000
$0
$580,000
$639,424

$580,000
$4,825
$575,175
$630,569

$580,000
$9,649
$570,351
$618,046

$580,000
$14,474
$565,526
$605,522

$580,000
$19,299
$560,701
$594,918

$580,000
$24,123
$555,877
$584,314

$580,000
$28,948
$551,052
$573,339

$580,000
$33,773
$546,227
$568,473

$580,000
$38,597
$541,403
$563,606

$580,000
$43,422
$536,578
$558,740

$580,000
$48,247
$531,753
$553,874

$580,000
$53,071
$526,929
$549,007

$580,000
$57,896
$522,104
$544,141

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

Liabilities and Capital


Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$0
$0
$0
$0

$3,669
$0
$0
$3,669

$3,669
$0
$0
$3,669

$3,669
$0
$0
$3,669

$3,669
$0
$0
$3,669

$3,669
$0
$0
$3,669

$3,561
$0
$0
$3,561

$3,561
$0
$0
$3,561

$3,561
$0
$0
$3,561

$3,561
$0
$0
$3,561

$3,561
$0
$0
$3,561

$3,561
$0
$0
$3,561

$3,561
$0
$0
$3,561

Long-term Liabilities
Total Liabilities

$0
$0

$0
$3,669

$0
$3,669

$0
$3,669

$0
$3,669

$0
$3,669

$0
$3,561

$0
$3,561

$0
$3,561

$0
$3,561

$0
$3,561

$0
$3,561

$0
$3,561

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

$680,000
($40,576)
$0
$639,424
$639,424

$680,000
($40,576)
($12,524)
$626,900
$630,569

$680,000
($40,576)
($25,048)
$614,376
$618,046

$680,000
($40,576)
($37,572)
$601,852
$605,522

$680,000
($40,576)
($48,175)
$591,249
$594,918

$680,000
($40,576)
($58,779)
$580,645
$584,314

$680,000
($40,576)
($69,646)
$569,778
$573,339

$680,000
($40,576)
($74,512)
$564,912
$568,473

$680,000
($40,576)
($79,378)
$560,046
$563,606

$680,000
($40,576)
($84,245)
$555,179
$558,740

$680,000
($40,576)
($89,111)
$550,313
$553,874

$680,000
($40,576)
($93,977)
$545,447
$549,007

$680,000
($40,576)
($98,844)
$540,580
$544,141

Net Worth

$639,424

$626,900

$614,376

$601,852

$591,249

$580,645

$569,778

$564,912

$560,046

$555,179

$550,313

$545,447

$540,580

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