e-mechanic business plan (1)

8/3/2019 E-Mechanic Business Plan (1)

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domain through other means and that any disclosure or use of same by reader,may cause serious harm or damage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.


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Table of ContentsConfidentiality Agreement ...........................................................................................................................1

Table of Contents .........................................................................................................................................11.0 Executive Summary ............................................................................................................................... 1

1.1 Objectives .............................................................................................................................................. 2

1.2 Mission ...................................................................................................................................................21.3 Keys to Success ......................................................................................................................................3

2.0 Company Summary ............................................................................................................................... 3

2.1 Company Ownership ............................................................................................................................. 32.2 Start-up Summary .................................................................................................................................. 4

Table: Start-up ..................................................................................................................................... 4

3.0 Products and Services ............................................................................................................................ 5

4.0 Market Analysis Summary .................................................................................................................... 54.1 Market Segmentation ............................................................................................................................. 6

Table: Market Analysis ............................................................................................................................6

4.2 Target Market Segment Strategy ........................................................................................................... 74.3 Service Business Analysis ..................................................................................................................... 7

4.3.1 Competition and Buying Patterns ................................................................................................... 7

5.0 Web Plan Summary ............................................................................................................................... 95.1 Website Marketing Strategy .................................................................................................................. 9

Development Requirements ....................................................................................................................... 10

Website Outline ..................................................................................................................................... 10

6.0 Strategy and Implementation Summary ...............................................................................................10

6.1 SWOT Analysis ................................................................................................................................... 116.1.1 Strengths .......................................................................................................................................11

6.1.2 Weaknesses ...................................................................................................................................116.1.3 Opportunities .................................................................................................................................11


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Table: Profit and Loss ........................................................................................................................ 18

8.5 Projected Cash Flow ............................................................................................................................ 21

Table: Cash Flow ............................................................................................................................... 218.6 Projected Balance Sheet .......................................................................................................................23

Table: Balance Sheet ..........................................................................................................................23

.................................................................................................................................................................... 25

8.7 Business Ratios .................................................................................................................................... 25

Table: Ratios ...................................................................................................................................... 25Table: Sales Forecast ........................................................................................................................... 1

.............................................................................................................................................................. 1

Table: Personnel ...................................................................................................................................2

.............................................................................................................................................................. 2

Table: Profit and Loss ..........................................................................................................................3

.............................................................................................................................................................. 4

Table: Cash Flow ................................................................................................................................. 5

.............................................................................................................................................................. 7

Table: Balance Sheet ............................................................................................................................8


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1.0 Executive SummaryE-Mechanic Business (EMB) is a start-up organization that offers a completedomestic and foreign car repair service as well as a full-featured retail partsstore and Online part providers. EMB will serve the Islamabad- Rawalpindi, ORmarket. EMB will grow into a business with outstanding sales by year three.

The Concept

The auto repair market has a lot of competition, however, almost all only offerservice. EMB will differentiate themselves by not only offering a hassle-freerepair service, but a fully stocked parts store physical and Online based. Notonly will this serve a wide range of customers for both service and parts, butthe parts department will support the service department by allowing theservice department to turnaround jobs far faster than the competition withgenerally all of the needed parts in stock and on location.

EMB also differentiates themselves by having 5 bays at location. This offersincredible value to customers who need their cars fixed right away. Waits forservice and parts are ideas not entertained by EMB. Lastly, EMB offers unlimitedshuttle service for repair customers making the entire service experience aspainless and convenient as possible.EMB will attract and maintain a loyal customer base through their customer-oriented focus on business. All employees are trained and held responsible forproviding superior service, developing a long lasting trust bond with customers.This is very important, especially in the auto repair industry where trust andhonesty are not the image of repair facilities.


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Sales

Gross Margin

Net Profit

$0

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

$1,800,000

$2,100,000

$2,400,000

$2,700,000

$3,000,000

FY 2012 FY 2013 FY 2014

Highlights

1.1 ObjectivesThe objectives of the E-Mechanic business website are:

To drive traffic from the website to the garage those need repair.

To expand the community of E-Mechanic business customers.

To provide customers with a substantial list of questions and answers


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parts inventory, to ensure that parts are always in stock, while keeping abalanced level of inventory to maximize inventory turnover. Finally, EMB has

strong vendor relationships with the most service conscious vendors who arecapable of shipping major parts rapidly (on an overnight timeline in mostcases).

1.3 Keys to Success

EMB's keys to success will include:

1. Expedient and convenient auto repair services.2. Growing and maintaining a referral network of local towing service

companies.3. A wide range of auto parts inventory that is (nearly) never out of stock.4. Rapid order and delivery of major auto parts items over internet.

2.0 Company SummaryE-Mechanic Business is a new start-up incorporated business managed by fourpartners. Three of the four partners represent sales/management, and onefocuses on the finance/administration section of the business.The economic growth of the last several years has resulted in increaseddisposable income. Many people have chosen to spend part of their increased


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2.2 Start-up Summary

Each of the four co-owners will invest an equal amount. The remainder of therequired financing will come from a ten year Small Business Administration(SBA) loan and a short-term loan.

Table: Start-up

Start-up

Requirements

Start-upExpenses

Legal $30,000Rent $10,000ConsultantFees

$10,000

Others $0Total Start-upExpenses

$50,000

Start-upAssetsCash Required $5,000,0

00


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$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Expenses Assets Investment Loans

Start-up

3.0 Products and ServicesE-Mechanic business has the core competencies amongst its large crew to workon all makes and models of domestic and foreign vehicles. With five servicebays at location, and all employees focused on superior customer service, quick

turnaround is always the standard at EMB. E-Mechanic business strives to beaccurate and honest with customers in terms of quoting cost estimates andrepair completion time estimates. E-Mechanic business employees focus ondelivering what they promise. This focus on building strong customer


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The table below further estimates the total market potential of type of servicesrendered by E-Mechanic Business in the Islamabad- Rawalpindi area.

4.1 Market SegmentationE-Mechanic Business focuses on the middle and upper income markets. Thismarket looks for high quality, rapid service with as much convenience aspossible. Most individuals in this market segment are willing to pay an extrapremium within the pricing of auto repair services to avoid the commoninconveniences of having a vehicle tied up in a repair shop.

Local residents regular customer base:-

E-Mechanic Business wants to establish a significantly large regular customerbase. This will establish a healthy, consistent revenue base to ensure stability ofthe business.

Emergency towing local and freeway traffic:-

Emergency towing of local and freeway traffic comprises approximately 20% ofrevenues. Convenience, regular referrals from tow truck companies, and highquality, rapid service are critical to capture this segment of the market.

Table: Market Analysis

MarketAnalysis


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Local Resident

Freeway Traffic

Online Customers'

Others

Market Analysis (Pie)

4.2 Target Market Segment StrategyE-Mechanic Business will focus on its target market, the middle and upper classmarket, and establish a reputable image from that target market's perspective,by offering convenience, online spare-parts booking and timely delivery,expedient auto repair services, customer service excellence, and by workingwith local towing companies.

4 3 Service Business Analysis


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customer service. Additionally, its honest reputation will be a major factor inrepeat business and building a large base of regular, loyal customers.

Primary competitors are engaged principally in the retail sale of automotiveparts, tires and accessories, automotive maintenance and service and theinstallation of parts. Larger competitors have adopted the "supercenter" storemodel, a freestanding, "one-stop" shopping automotive warehouse thatfeatures state-of-the-art service bays. These "supercenters" carry thousands ofstock-keeping units and serve the automotive aftermarket needs of the "do-it-yourself," the "do-it-for-me" (automotive service), tire and "buy-for-resale"customer sectors.Large competitors' stores typically carry the same basic product line, withvariations based on the number and type of cars registered in the differentmarkets. A full complement of inventory at a typical supercenter includes anaverage of approximately 25,000 items.

Automotive product lines usually include:

Tires. Batteries.

New and remanufactured parts for domestic and imported cars, including:

Suspension parts.

Ignition parts.

Exhaust systems.

Engines and engine parts.

Oil and air filters, belts, hoses, and air conditioning parts. Lighting.

Wiper blades.

brake parts


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available amongst their various service centers. This type of system creates aservice history for each vehicle, provides customers with a comprehensive sales

document, and enables the service center to maintain a service customerdatabase.

5.0 Web Plan SummaryThe key champion for the development of the website is the co-owner of E-

Mechanics, Ejaz-ul-Haq. He will be responsible for managing the development ofthe site and will work closely with Mr. Shakeel ur Rehman on the design andcreation. He will also be responsible for implementing the promotions that willbe run at least monthly on the site.Most of the site development will be carried out by the consultant, Shakeel urRehman. He will initially be paid a pre-arranged fee as he completes each stageof development. Later he will be paid a monthly retainer to maintain the site. M.Tanveer Ahmed will work with Shakeel to develop the content section of the sitedealing with typical car problems and tips on maintaining your vehicle duringthe different seasons.

5.1 Website Marketing StrategyThe website will have two main goals:

1. To provide potential and existing customers with information about their carsthrough the provision of a typical problems area, plus an Ask the MechanicQuestion and Answer section where they can have specific questions about


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Development Requirements

Website Outline

The site will be designed with the following technology: Drupal, SQL and HTML.

Home Page: explains the website's relation to the company, with visible links

to the other sections of the site.

Section 1

Q&A:

Begins with search. Visible links will go off to the subsections below.

Ask the Mechanic: simple form that sends directly to the head mechanic.

Q&A Browse: users will be able to browse through other customer's Q&Asessions.

Section 2

Booking

Page 1: first page will display available dates, customer clicks on preferred


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6.1 SWOT Analysis

6.1.1 Strengths

First mover advantage as being the first online auto-parts supplier inIslamabad-Rawalpindi.

Customer oriented services as E-Mechanic business provides solution at yourdoor steps.

Educated, well-trained and experienced work-force.

Vast variety of spare-parts (Local + foreign cars).

24/7 service on the shop as well as on the freeways service.

6.1.2 Weaknesses

More cost of freeways service as compared to the traditional service.

6.1.3 Opportunities

Wide range of online customers'. Upcoming new technology could be the opportunity for E-Mechanic Business. New markets or Expansion of business.


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6.3 Marketing StrategyOur strategy is based on serving the niche market size. This area is full ofcustomers' that can't get online parts and on their door step services from themajor vendors who focus only on their specified work area. Also:What begins as a customized version of a standard product, tailored to theneeds of local customers, can eventually become a niche product that will fillthe needs of similar customers across the country.

We are planning our marketing strategy so that we can eventually reachspecific kinds of customers across broad geographic lines.We focus on satisfying the needs of customers.

6.4 Sales StrategyE-Mechanic business will focus its sales strategy on effectively reaching thetarget customer segment of upper and middle class customers. For thispurposes, the company will employ direct sales staff. At the same time, thecompany will further strengthen its relationships with the tow truck companiesto capture auto repair needs of the local and highway traffic. EMB will have itsown website which can be used as a marketing tool and help EMB to strengthenrelationship with customers; through their feedbacks.

E-Mechanic business plans to deliver sales as shown in the table and chartsbelow.


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Auto Repair Jobs $1,273,362

$1,337,030

$1,403,881

Auto parts $1,591,703

$1,671,288

$1,754,852

Total Sales $2,865,065

$3,008,318

$3,158,733

Direct Cost ofSales

FY 2012 FY 2013 FY 2014

Auto Repair Jobs $318,340

$334,257

$350,969

Auto Parts $1,273,362

$1,337,030

$1,403,881

Subtotal DirectCost of Sales

$1,591,702

$1,671,287

$1,754,850

N D J F b M A M J

Auto Repair Jobs

Auto parts

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Sales Monthly


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Auto Repair Jobs

Auto parts

$0

$400,000

$800,000

$1,200,000

$1,600,000

$2,000,000

$2,400,000

$2,800,000

$3,200,000

FY 2012 FY 2013 FY 2014

Sales by Year

6.5 Milestones

Table: Milestones

Milestones

Milestone StartDate

End Date Budget Manager

Department

S l 10/16/20 10/16/20 $0 ABC D t


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Consultant

$120,000

$120,000

$120,000

TotalPeople

10 11 12

TotalPayroll

$455,301

$462,007

$468,847

8.0 Financial PlanSalaries and rent are the two major expenses, while depreciation is anothersignificant cost that will increase as the company develops.We want to finance growth mainly through cash flow. We recognize that thismeans we will have to grow slowly.

8.1 Start-up FundingTable: Start-up Funding

Start-up FundingStart-up Expenses toFund

$50,000

Start-up Assets to

Fund

$7,100,0

00Total FundingRequired

$7,150,000


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00Long-term Liabilities $2,000,0

00Accounts Payable(Outstanding Bills)

$0

Other CurrentLiabilities (interest-free)

$4,000,000

Total Liabilities $7,000,000

Capital

Planned InvestmentM. Ejaz ul Haq $1,000,0

00M. Tanveer Ahmed $1,000,0

00Additional InvestmentRequirement

$0

Total PlannedInvestment

$2,000,000

Loss at Start-up(Start-up Expenses)

($50,000)

Total Capital $1,950,000


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Monthly Revenue

Break-even

$98,0

35

Assumptions:Average PercentVariable Cost

56%

Estimated MonthlyFixed Cost

$43,571

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

($10,000)

($20,000)

($30,000)

($40,000)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

Break-even Analysis


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Total Cost of Sales $1,591,702

$1,671,287

$1,754,850

Gross Margin $1,273,363

$1,337,031

$1,403,883

Gross Margin % 44.44% 44.44% 44.44%

ExpensesPayroll $455,30

1

$462,00

7

$468,84

7Marketing/Promotion

$15,000 $5,000 $2,500

Depreciation $0 $0 $0Machinery $26,824 $27,360 $27,907General &Administration

Expense

$10,728 $10,942 $11,160

Marketing Expense $15,000 $5,000 $2,500

Total OperatingExpenses

$522,853

$510,309

$512,914

Profit BeforeInterest and Taxes

$750,510

$826,722

$890,969

EBITDA $750,510

$826,722

$890,969

Interest Expense $350,000

$350,000

$350,000


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$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Profit Monthly

$150 000

$200,000

$250,000

$300,000

$350,000

$400,000

Profit Yearly


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$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000


Gross Margin Monthly

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Gross Margin Yearly


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Pro Forma Cash FlowFY 2012 FY 2013 FY 2014

Cash Received

Cash from OperationsCash Sales $2,865,0

65$3,008,3

18$3,158,7

33Subtotal Cash fromOperations

$2,865,065

$3,008,318

$3,158,733

Additional CashReceivedSales Tax, VAT, HST/GSTReceived

$429,760

$451,248

$473,810

New Current Borrowing $0 $0 $0New Other Liabilities(interest-free)

$0 $0 $0

New Long-termLiabilities $0 $0 $0

Sales of Other CurrentAssets

$0 $0 $0

Sales of Long-termAssets

$0 $0 $0

New InvestmentReceived

$200,000

$0 $0

Subtotal Cash Received $3,494,825

$3,459,566

$3,632,543

Expenditures FY 2012 FY 2013 FY 2014


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Long-term LiabilitiesPrincipal Repayment

$0 $0 $0

Purchase Other CurrentAssets

$0 $0 $0

Purchase Long-termAssets

$0 $0 $0

Dividends $0 $0 $0Subtotal Cash Spent $1,526,7

43$2,673,8

11$2,727,3

25

Net Cash Flow $1,968,082

$785,754

$905,217

Cash Balance $8,818,082

$9,603,836

$10,509,054

Net Cash Flow

Cash Balance

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Cash


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Assets

Current AssetsCash $8,818,0

82$9,603,8

36$10,509,

054Inventory $171,032 $179,584 $188,563Other CurrentAssets

$100,000 $100,000 $100,000

Total CurrentAssets

$9,089,114

$9,883,420

$10,797,616

Long-termAssetsLong-termAssets

$1,000,000

$1,000,000

$1,000,000

AccumulatedDepreciation

$0 $0 $0

Total Long-termAssets $1,000,000 $1,000,000 $1,000,000Total Assets $10,089,

114$10,883,

420$11,797,

616

Liabilities andCapital

FY 2012 FY 2013 FY 2014

CurrentLiabilitiesAccountsPayable

$216,962 $178,643 $186,254


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Earnings $292,392 $381,378 $432,775Total Capital $2,442,3

92

$2,823,7

70

$3,256,5

45Total Liabilitiesand Capital

$10,089,114

$10,883,420

$11,797,616

Net Worth $2,442,392

$2,823,770

$3,256,545

8.7 Business Ratios

Table: Ratios

Ratio AnalysisFY 2012 FY 2013 FY 2014 Industry

ProfileSales Growth 0.00% 5.00% 5.00% 0.00%

Percent of Total AssetsInventory 1.70% 1.65% 1.60% 0.00%Other Current Assets 0.99% 0.92% 0.85% 100.00%

Total Current Assets 90.09% 90.81% 91.52% 100.00%Long-term Assets 9.91% 9.19% 8.48% 0.00% Total Assets 100.00% 100.00% 100.00% 100.00%


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Total Debt to Total Assets 75.79% 74.05% 72.40% 0.00%Pre-tax Return on Net

Worth

16.40% 16.88% 16.61% 0.00%

Pre-tax Return on Assets 3.97% 4.38% 4.59% 0.00%

Additional Ratios FY 2012 FY 2013 FY 2014Net Profit Margin 10.21% 12.68% 13.70% n.aReturn on Equity 11.97% 13.51% 13.29% n.a

Activity Ratios

Inventory Turnover 4.08 9.53 9.53 n.aAccounts PayableTurnover

5.94 12.17 12.17 n.a

Payment Days 27 33 29 n.a Total Asset Turnover 0.28 0.28 0.27 n.a

Debt RatiosDebt to Net Worth 3.13 2.85 2.62 n.aCurrent Liab. to Liab. 0.74 0.75 0.77 n.a

Liquidity RatiosNet Working Capital $3,442,3

92$3,823,7

70$4,256,5

45n.a

Interest Coverage 2.14 2.36 2.55 n.a

Additional RatiosAssets to Sales 3.52 3.62 3.73 n.aCurrent Debt/Total Assets 56% 56% 55% n.aAcid Test 1 58 1 60 1 62 n a


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Appendix

Table: Sales Forecast

SalesForecast

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctSalesAuto Repair

Jobs$80,000

$84,000

$88,200

$92,610

$97,240

$102,10

2

$107,20

7

$112,56

7

$118,19

5

$124,10

5

$130,31

0

$136,82

6Auto parts $10

0,000

$105,00

0

$110,25

0

$115,76

2

$121,55

0

$127,62

8

$134,00

9

$140,70

9

$147,74

4

$155,13

1

$162,88

8

$171,03

2Total Sales $18

0,00

0

$189,00

0

$198,45

0

$208,37

2

$218,79

0

$229,73

0

$241,21

6

$253,27

6

$265,93

9

$279,23

6

$293,19

8

$307,85

8

Direct Costof Sales


Auto RepairJobs

$20,000

$21,000

$22,050

$23,152

$24,310

$25,526

$26,802

$28,142

$29,549

$31,026

$32,577

$34,206

Auto Parts $80,000

$84,000

$88,200

$92,610

$97,240

$102,10

2

$107,20

7

$112,56

7

$118,19

5

$124,10

5

$130,31

0

$136,82

6Subtotal

Direct Costof Sales

$10

0,000

$10

5,000

$11

0,250

$11

5,762

$12

1,550

$12

7,628

$13

4,009

$14

0,709

$14

7,744

$15

5,131

$16

2,887

$17

1,032

Page 1


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Appendix

Table: Personnel

PersonnelPlan

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctMechanics

$25,000

$25,500

$26,010

$26,530

$27,061

$27,602

$28,154

$28,717

$29,291

$29,877

$30,475

$31,084

Consultant

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

TotalPeople

10 10 10 10 10 10 10 10 10 10 10 10

TotalPayroll

$35,000

$35,500

$36,010

$36,530

$37,061

$37,602

$38,154

$38,717

$39,291

$39,877

$40,475

$41,084

Page 2

A di


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Appendix

Table: Profit and Loss

Pro FormaProfit and Loss


Sales $180,00

0

$189,00

0

$198,45

0

$208,37

2

$218,79

0

$229,73

0

$241,21

6

$253,27

6

$265,93

9

$279,23

6

$293,19

8

$307,85

8Direct Cost ofSales

$100,00

0

$105,00

0

$110,25

0

$115,76

2

$121,55

0

$127,62

8

$134,00

9

$140,70

9

$147,74

4

$155,13

1

$162,88

7

$171,03

2Other Costs ofSales

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost ofSales

$100,00

0

$105,00

0

$110,25

0

$115,76

2

$121,55

0

$127,62

8

$134,00

9

$140,70

9

$147,74

4

$155,13

1

$162,88

7

$171,03

2

Gross Margin $80,000

$84,000

$88,200

$92,610

$97,240

$102,10

2

$107,20

7

$112,56

7

$118,19

5

$124,10

5

$130,31

1

$136,82

6Gross Margin%

44.44%

44.44%

44.44%

44.44%

44.44%

44.44%

44.44%

44.44%

44.44%

44.44%

44.44%

44.44%

Expenses

Payroll $35,000

$35,500

$36,010

$36,530

$37,061

$37,602

$38,154

$38,717

$39,291

$39,877

$40,475

$41,084

Marketing/Promotion

$5,000

$5,000

$5,000

$0 $0 $0 $0 $0 $0 $0 $0 $0

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Machinery 15

%$2,000

$2,040

$2,081

$2,123

$2,165

$2,208

$2,252

$2,297

$2,343

$2,390

$2,438

$2,487

General &Administration

0%

$800

$816

$832

$849

$866

$883

$901

$919

$937

$956

$975

$994

Page 3

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Appendix

ExpenseMarketingExpense

0%

$5,000

$5,000

$5,000

$0 $0 $0 $0 $0 $0 $0 $0 $0

TotalOperating

Expenses

$47,800

$48,356

$48,923

$39,502

$40,092

$40,693

$41,307

$41,933

$42,571

$43,223

$43,888

$44,565

Profit BeforeInterest and

Taxes

$32,200

$35,644

$39,277

$53,108

$57,148

$61,409

$65,900

$70,634

$75,624

$80,882

$86,423

$92,261

EBITDA $32,200

$35,644

$39,277

$53,108

$57,148

$61,409

$65,900

$70,634

$75,624

$80,882

$86,423

$92,261

InterestExpense

$29,167

$29,167

$29,167

$29,167

$29,167

$29,167

$29,167

$29,167

$29,167

$29,167

$29,167

$29,167

Taxes

Incurred

$91

0

$1,9

43

$3,0

33

$7,1

82

$8,3

94

$9,6

73

$11,

020

$12,

440

$13,

937

$15,

515

$11,

451

$12,

619

Net Profit $2,123

$4,534

$7,077

$16,759

$19,587

$22,570

$25,713

$29,027

$32,520

$36,201

$45,805

$50,475

NetProfit/Sales

1.18%

2.40%

3.57%

8.04%

8.95%

9.82%

10.66%

11.46%

12.23%

12.96%

15.62%

16.40%

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Table: Cash Flow

Pro Forma CashFlow


Cash Received

Cash fromOperationsCash Sales $180,

000$189,000

$198,450

$208,372

$218,790

$229,730

$241,216

$253,276

$265,939

$279,236

$293,198

$307,858

Subtotal Cashfrom Operations

$180,000

$189,000

$198,450

$208,372

$218,790

$229,730

$241,216

$253,276

$265,939

$279,236

$293,198

$307,858

Additional Cash

ReceivedSales Tax, VAT,HST/GSTReceived

15.00%

$27,000

$28,350

$29,768

$31,256

$32,819

$34,460

$36,182

$37,991

$39,891

$41,885

$43,980

$46,179

New CurrentBorrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New OtherLiabilities(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 OtherCurrent 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 InvestmentReceived

$200,000

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal CashReceived

$407,000

$217,350

$228,218

$239,628

$251,609

$264,190

$277,398

$291,267

$305,830

$321,121

$337,178

$354,037

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Expenditures Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Expendituresfrom OperationsCash Spending $35,0

00

$35,5

00

$36,0

10

$36,5

30

$37,0

61

$37,6

02

$38,1

54

$38,7

17

$39,2

91

$39,8

77

$40,4

75

$41,0

84Bill Payments $1,429

$42,913

$44,004

$44,920

$39,363

$40,637

$41,977

$46,576

$142,464

$201,476

$210,683

$215,000

Subtotal Spent onOperations

$36,429

$78,413

$80,014

$81,450

$76,424

$78,239

$80,131

$85,293

$181,755

$241,353

$251,158

$256,084

Additional CashSpentSales Tax, VAT,HST/GST Paid Out

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

PrincipalRepayment ofCurrentBorrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other LiabilitiesPrincipalRepayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-termLiabilitiesPrincipal

Repayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase OtherCurrent 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 $0Subtotal CashSpent

$36,429

$78,413

$80,014

$81,450

$76,424

$78,239

$80,131

$85,293

$181,755

$241,353

$251,158

$256,084

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Net Cash Flow $370,571

$138,937

$148,203

$158,178

$175,184

$185,951

$197,267

$205,974

$124,075

$79,769

$86,020

$97,953

Cash Balance $7,220,571

$7,359,508

$7,507,711

$7,665,889

$7,841,073

$8,027,024

$8,224,291

$8,430,265

$8,554,340

$8,634,109

$8,720,129

$8,818,082

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Table: Balance Sheet

Pro FormaBalanceSheet

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctAssets StartingBalances

CurrentAssetsCash $6,850,

000$7,220,571

$7,359,508

$7,507,711

$7,665,889

$7,841,073

$8,027,024

$8,224,291

$8,430,265

$8,554,340

$8,634,109

$8,720,129

$8,818,082

Inventory $1,000,

000

$900,

000

$795,

000

$684,

750

$568,

988

$447,

438

$319,

810

$185,

801

$140,

709

$147,

744

$155,

131

$162,

887

$171,

032OtherCurrentAssets

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

TotalCurrentAssets

$7,950,000

$8,220,571

$8,254,508

$8,292,461

$8,334,877

$8,388,511

$8,446,834

$8,510,092

$8,670,974

$8,802,084

$8,889,240

$8,983,016

$9,089,114

Long-termAssets

Long-termAssets

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

AccumulatedDepreciation

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-term Assets

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

Total Assets $8,950, $9,22 $9,25 $9,29 $9,33 $9,38 $9,44 $9,51 $9,67 $9,80 $9,88 $9,98 $10,0

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000 0,571 4,508 2,461 4,877 8,511 6,834 0,092 0,974 2,084 9,240 3,016 89,114

Liabilitiesand Capital


CurrentLiabilitiesAccountsPayable

$0 $41,447

$42,500

$43,609

$38,010

$39,239

$40,533

$41,895

$135,759

$194,457

$203,527

$207,518

$216,962

CurrentBorrowing

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

OtherCurrentLiabilities

$4,000,000

$4,027,000

$4,055,350

$4,085,118

$4,116,373

$4,149,192

$4,183,651

$4,219,834

$4,257,825

$4,297,716

$4,339,601

$4,383,581

$4,429,760

Subtotal

CurrentLiabilities

$5,000,

000

$5,06

8,447

$5,09

7,850

$5,12

8,727

$5,15

4,384

$5,18

8,431

$5,22

4,184

$5,26

1,729

$5,39

3,584

$5,49

2,173

$5,54

3,128

$5,59

1,099

$5,64

6,722

Long-termLiabilities

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

TotalLiabilities

$7,000,000

$7,068,447

$7,097,850

$7,128,727

$7,154,384

$7,188,431

$7,224,184

$7,261,729

$7,393,584

$7,492,173

$7,543,128

$7,591,099

$7,646,722

Paid-inCapital

$2,000,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

$2,200,000

RetainedEarnings ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000)Earnings $0 $2,12

3$6,65

7$13,7

35$30,4

94$50,0

81$72,6

50$98,3

64$127,

391$159,

911$196,

112$241,

917$292,

392TotalCapital

$1,950,000

$2,152,123

$2,156,657

$2,163,735

$2,180,494

$2,200,081

$2,222,650

$2,248,364

$2,277,391

$2,309,911

$2,346,112

$2,391,917

$2,442,392

TotalLiabilitiesand Capital

$8,950,000

$9,220,571

$9,254,508

$9,292,461

$9,334,877

$9,388,511

$9,446,834

$9,510,092

$9,670,974

$9,802,084

$9,889,240

$9,983,016

$10,089,11

4

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Net Worth $1,950,000

$2,152,123

$2,156,657

$2,163,735

$2,180,494

$2,200,081

$2,222,650

$2,248,364

$2,277,391

$2,309,911

$2,346,112

$2,391,917

$2,442,392

Page 10

e-mechanic business plan (1)

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