design build r us

8/8/2019 Design Build R Us

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Steve Jensen

970.819.4249


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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by_________________________ in this business plan is confidential; therefore, readeragrees not to disclose it without the express written permission of_________________________.

It is acknowledged by reader that information to be furnished in this business plan is in all

respects confidential in nature, other than information which is in the public domain throughother means and that any disclosure or use of same by reader, may cause serious harm ordamage 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 Contents

1. Executive Summary ................................................................................................. 11.1. Objectives ......................................................................................................... 41.2. Mission ............................................................................................................. 51.3. Keys to Success ................................................................................................ 5

2. Company Summary ................................................................................................. 52.1. Company Ownership ........................................................................................ 52.2. Start-up Summary ............................................................................................. 5

3. Products and Services .............................................................................................. 9

4. Market Analysis Summary ....................................................................................... 94.1. Market Segmentation ........................................................................................ 94.2. Service Business Analysis............................................................................... 13

4.2.1. Competition and Buying Patterns ............................................................. 135. Strategy and Implementation Summary ................................................................. 13

5.1. SWOT Analysis .............................................................................................. 135.1.1. Strengths.................................................................................................. 145.1.2. Weaknesses ............................................................................................. 14

5.1.3. Opportunities ........................................................................................... 145.1.4. Threats..................................................................................................... 14

5.2. Competitive Edge ........................................................................................... 145.3. Marketing Strategy ......................................................................................... 145.4. Sales Strategy ................................................................................................. 14

5.4.1. Sales Forecast .......................................................................................... 155.5. Milestones ...................................................................................................... 18

6. Web Plan Summary............................................................................................... 187. Management Summary.......................................................................................... 187.1. Personnel Plan ................................................................................................ 18

8. Financial Plan ....................................................................................................... 198.1. Important Assumptions ................................................................................... 198.2. Break-even Analysis ....................................................................................... 208.3. Projected Profit and Loss ................................................................................ 238.4. Projected Cash Flow ....................................................................................... 24

8.5. Projected Balance Sheet .................................................................................. 308.6. Business Ratios ............................................................................................... 31


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1. Executive Summary

StructureAll Ltd. will be formed as a consulting firm specializing in structural engineeringservices. A home office in Yellowknife, NT will be established the first year of operations toreduce start up costs. The founder of the firm is a professional engineer with eighteen years ofprogressive and responsible experience.

Initial start up costs amount to $20,000. Of this total, $13,000 is required for start up expenseswhile the balance is to to be placed in the company accounts as working capital. The founder,

Philip Nolan, provided an initial investment of $20,000 towards start-up costs.

Projected sales and profits for the first three years of operation are summarized below:

Year Sales($) Profits($) Sales/Profit(%)

1 118,000 9,150 7.8

2 130,000 12,650 9.8

3 138,000 15,100 11.0

The firm will specialize in providing three dimensional modeling and visualization to our clients.State-of-the-art analysis and design tools will be an integral part of the business plan.Implementation of a quality control and assurance program will provide a focus for productionwork.


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Highlights


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1.1. Objectives

1.Achieve earnings (EBIT) of $150,000 in the first year of operation.2.maintaining net revenue of $150,000 and acheiving net revenue of $250,000 at the

end of three years.3.Engage 1 new design project each month for the next 12 months4.Engage 1 new construction project by 1/6/115.Maintain gross margin of 23%

The objectives for Design Build R us are outlined below:

1.To create a service-base design build firm whose goal is to change the lives ofour chosen customer/partners.

deliver exceptunal architectural, interior design2.Sales increase to $1.0 million by end of second year and $1.4 million by end

of third year.3.To increase the number of clients services by at least 20% per year through

superior performance and word-of mouth referrals.4.Have a clientele return rate of 90% by end of first year.5.Become an established community destination by end of first year.

1. Achieve earnings (EBIT) of $300,000 in the first year of operation.

2. Maintain an average gross margin of 49% throughout the entire operation.

3. Maintain just-in-time (JIT) inventory levels, or 11 turns per year.

4. Increase sales by 15% to $3.5M in second year (FY2003) and $4.2M in third year(FY2004).

The mission of NaviTag Technologies is to provide shippers or government agencies aportable, reusable device that will track cargo shipments with greater accuracy than theevent-based historical systems available today.

This electronic tag will track the cargo, not the container, providing the owner with the

ability to choose what cargoes are monitored. It can be introduced anywhere within thesupply chain to provide the security information that government agencies are seeking toprotect U.S. ports from importation of dangerous cargoes.

NaviTag Technologies core revenues will be generated from the sale of these electronictags - a NaviTag - as well as access charges to retrieve the information. The number ofNaviTags purchased by an individual group is dependent upon the volume of shipments


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1.2. Mission

Our mission is to provide clients across Canada's North with structural engineering servicesfor all types of buildings, from concept planning through to completion, with a highly skilledprofessional team working together, using common sense and practical experience.

1.To create a service-base design build firm whose goal is to change the lives of ourchosen customer/partners.

o deliver exceptunal architectural, interior design

1.3. Keys to Success

1.Provide professional quality services on time and on budget.2.Develop a follow-up strategy to gauge performance with all clients.3. Implement and maintain a quality control and assurance policy.

2. Company Summary

StructureAll Ltd. is a new company which provides professional engineering design services forclients which manage, maintain, and plan for residential, commercial, and industrial typebuildings. Our focus will be the public sector market in remote communities across Canada'sNorth.

2.1. Company Ownership

StructureAll Ltd. will be created as a limited liability company. The company will beprivately owned by Philip D. Nolan. Leslie C. Goit will also be listed as a Director.

2.2. Start-up Summary

Our start-up expenses amount to $13,000, which allows for initial legal expenses, licenses,permits, stationary, specialty software, office equipment, and furniture. In addition to thesestart-up costs, an initial balance of $7,000 will be placed in the company accounts. The

ft h i l d ll f $5 000 f A t CADD 2000 $1 800 f


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Start-upRequirements

Start-up ExpensesProfessional Liability Insurance $1,200

Web Site Development $600

Legal Services $500Business Licenses $1,000

Permit Holder ( NAPEGG ) $500

Software Purchases $7,000Stationery $600Office Furniture $600

Office Equipment $500Other $500

Total Start-up Expenses $13,000

Start-up AssetsCash Required $7,000

Other Current Assets $0Long-term Assets $0

Total Assets $7,000

Total Requirements $20,000

Start-up FundingStart-up Expenses to Fund $13,000Start-up Assets to Fund $7,000

Total Funding Required $20,000

AssetsNon-cash Assets from Start-up $0Cash Requirements from Start-up $7,000

Additional Cash Raised $0Cash Balance on Starting Date $7,000

Total Assets $7,000


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Total Liabilities $0

Capital

Planned InvestmentPhilip D. Nolan $20,000Investor 2 $0

Additional Investment Requirement $0Total Planned Investment $20,000

Loss at Start-up (Start-up Expenses) ($13,000)Total Capital $7,000

Total Capital and Liabilities $7,000

Total Funding $20,000

Start-up


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3. Products and Services

StructureAll Ltd. offers complete structural engineering services. We will focus on buildings withthe following 'Use and Occupancies':

y Residential.y Commercial.y Industrial.

The company is 'project' oriented where each project involves:

y Renovations.y Rehabilitation.y Additions.y New construction.

We offer innovative and economical design services, maintaining state-of-the-art designtechnology. We meet client needs on projects of all sizes and smaller, special design projects.

4. Market Analysis Summary

StructureAll Ltd. will focus on traditional Architect/Engineering (A/E) contracts. The owner willusually contract the A/E to perform planning and design services. These design services includepreparation of plans, specifications, and estimates.

Construction services may be limited to occasional field visits and certain contractadministration requirements. Typically, these types of projects distribute total design feesamongst the professionals involved in accordance with the following guideline:

y Architecture Design (65%).y Structural Design (10%).y Mechanical Design (15%).y Electrical Design (10%).

Our most important clients will be established architectural/engineering firms who requirestructural engineering services.

4 1 Market Segmentation


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2.Territorial and Federal Governmental Departments: The Government of theNorthwest Territories (GNWT) and the newly created Nunavut Territory retainconsultants for a variety of purposes. We intend to position ourselves as a local firmoffering expertise in consulting, project management, forensic, and restorationengineering. The Federal Government also retains consultants for similar purposes.

3.Law Firms: We will market our services to the legal community to provide disputeresolution services, including arbitration, mediation and expert reports for litigation.This work is supported by forensic engineering services to identify the cause offailures.

4.Contractors: We will offer design/build services to contractors for the multitude ofpotential projects which the Territorial Government and Nunavut Territory haverecently undertaken. Contractors occasionally require structural engineers to submitsealed alternatives for equivalents to construction details.

5.Municipal Governments: Remote Municipal Governments in the Territories canexpect to have more autonomy with respect to infrastructure growth anddevelopment in the years to come. This initiative is part of the GNWT mandate. Wewill promote our services to the local municipal governments for this purpose. Toattract this market potential, we will offer to train those students in each communitywho are interested in engineering as a career choice. On the local front, the City ofYellowknife often provides recommendations to builders and homeowners for

structural engineering services related to renovations, additions, and newconstruction.6.Private Individuals: We will focus attention on homeowners in Yellowknife who are

renovating or contemplating an addition to their residence. We will also promotehome inspections to those parties contemplating the purchase of a home.

7.Realtors: In conjunction with home inspections, we will make all the Realtors awareof this service.

The Potential Market Chart and the Market Analysis Table are based on percentages which

each of these groups could contribute to the services offered. This manner of describing thepotential market is more appropriate for this type of business. As can be seen, theEstablished Architectural/Engineering firms account for 65% of the potential market withthe other participants claiming the balance in smaller proportions.


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Market Analysis2010 2011 2012 2013 2014

Potential Customers Growth CAGRArchitectural/Engineering

Firms0% 65 65 65 65 65 0.00%

Territorial/Federal

Governments0% 10 10 10 10 10 0.00%

Law Firms 0% 5 5 5 5 5 0.00%Contractors 0% 5 5 5 5 5 0.00%

Municipal Governments 0% 5 5 5 5 5 0.00%

Private Individuals 0% 5 5 5 5 5 0.00%Realtors 0% 5 5 5 5 5 0.00%Total 0.00% 100 100 100 100 100 0.00%

Market Analysis (Pie)


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4.2. Service Business Analysis

The following sections describe in more detail these aspects of the service businessenvironment:

y Business Participants.y Competition and Buying Patterns.y Main Competitors.

4.2.1. Competition and Buying Patterns

Pricing of projects and billing rates are surprisingly variable. In consulting at thislevel, it is easier to be priced too low than too high. Clients and potential clientsexpect to pay substantial fees for the best quality professional advice. The nature ofthe billing, however, is sensitive. Clients are much more likely to be offended when ajob starts at $20K and ends up at $30K because of overruns, than if the same job

started at $30K or even $35K.

Clients rarely compare consultants directly, looking for two, or more, possibleproviders of a proposed project or job. Usually they follow word-of-mouthrecommendations and either go for the job or not, rather than selecting from a menuof possible providers.

The most important element of general competition, by far, is what it takes to keepclients for repeat business. It is worth making huge concessions in any single project

to maintain a client relationship that brings the client back for future projects.

5. Strategy and Implementation Summary

StructureAll Ltd. will focus on the Western Arctic area initially. We believe the creation ofNunavut will still provide opportunities for structural engineering services; however a separateAssociation of Professional Engineers for Nunavut is anticipated.

We are also licensed to practice in the Yukon Territories, although we have not planned for anyaggressive marketing in this area.

The target client is usually an Architect Manager.


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5.1.1. Strengths

Item body here

5.1.2. Weaknesses

Item body here

5.1.3. Opportunities

Item body here

5.1.4. Threats

Item body here

5.2. Competitive Edge

StructureAll Ltd. offers the following competitive edge:

y State-of-the-art modeling, design, analysis, and drafting capabilities.y Quality control and assurance program.y An Internet website (http:\\www.structureall.com , and e-mail,

[email protected]).

5.3. Marketing Strategy

The sections which follow describe in more detail our positioning statement, pricing, andpromotion strategy.

5.4. Sales Strategy


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5.4.1. Sales Forecast

The following table and chart summarizes forecasted sales. We expect sales toremain at a constant level after three months of operation. We predict the first twomonths of operations will be slow. Revenues will be limited while a generic qualitymanagement plan is formulated and basic office administration tasks are completed.

Direct unit costs for the first year have been set at 30% of unit revenues, whichyields a 70% gross margin. In the third year of operations, we plan to increase grossmargin to 80% as a result of providing a more efficient service to our clients.

Our unit rate for basic consulting services has been set at $80/hour. This is aconservative assumption based on published salary guideline levels for engineeringprofessionals. Our unit rate for CADD services is $40/hr.


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Sales ForecastFY 2011 FY 2012 FY 2013 FY 2014 FY 2015

SalesProject Consulting $55,200 $60,000 $64,000 $0 $0Project Management $19,200 $20,800 $22,400 $0 $0

Home Inspections $7,680 $8,800 $9,600 $0 $0

Computer Aided Drafting

Services

$35,600 $40,000 $42,000 $0 $0

Total Sales $117,680 $129,600 $138,000 $0 $0

Direct Cost of Sales FY 2011 FY 2012 FY 2013 FY 2014 FY 2015Project Consulting $16,560 $15,000 $12,800 $0 $0Project Management $5,760 $5,200 $4,480 $0 $0

Home Inspections $2,304 $2,200 $1,920 $0 $0Computer Aided Drafting

Services

$10,680 $10,000 $8,400 $0 $0

Subtotal Direct Cost of Sales $35,304 $32,400 $27,600 $0 $0

Sales Monthly


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5.5. Milestones

The accompanying table lists important program milestones, with dates and managers incharge, and budgets for each. The milestone schedule indicates our emphasis on planningfor implementation.

What the table doesn't show is the commitment behind it. Our business plan includescomplete provisions for plan-vs.-actual analysis, which will be updated monthly to comparethe variance and plan for course corrections.

MilestonesMilestone Start Date End Date Budget Manager DepartmentComplete Incorporation 4/1/1999 4/15/1999 $500 PN Administrative

Acquire Tradename for

Internet Website

3/6/1999 3/6/1999 $400 PN Administrative

Submit Business License

Application to City4/1/1999 4/16/1999 $250 PN Administrative

Acquire WCB Coverage 4/1/1999 4/16/1999 $50 PN AdministrativeApply for Staad-Pro Core

Financing

4/1/1999 4/16/1999 $0 PN Administrative

Acquire E&O Insurance 4/1/1999 4/16/1999 $1,200 PN Administrative

Other 1/1/1999 1/1/1999 $0 ABC Department

Totals $2,400

6. Web Plan Summary

Item body here

7. Management Summary

StructureAll Ltd. will initially have one employee who is also acting as general manager. PhilNolan will be responsible for all daily operations in the firm.


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PersonnelPlanFY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Name or title $0 $0 $0 $0 $0Other $0 $0 $0 $0 $0Total People 0 0 0 0 0

Total Payroll $0 $0 $0 $0 $0

8. Financial Plan

The financial plan which follows summarizes information regarding the following items:

y Important Assumptions.y Key Financial Indicators.y Break-Even Analysis.y Projected Profit and Loss.y Projected Cash Flow.y Projected Balance Sheet.y Business Ratios.

8.1. Important Assumptions

The financial plan depends on important assumptions, most of which are shown in thefollowing table as annual assumptions. The monthly assumptions are included in theappendix.

Some of the more important underlying assumptions are:

y We assume a strong economy, without major recession.y We assume the creation of Nunavut will not dramatically change the delivery of

engineering services.

y Interest rates, tax rates, and personnel burdens are based on conservativeassumptions.


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General AssumptionsFY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Plan Month 1 2 3 4 5Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%

Tax Rate 16.25% 15.00% 16.25% 15.00% 16.25%

Other 0 0 0 0 0

8.2. Break-even Analysis

The following table and chart summarize our break-even analysis. With estimated monthlyfixed costs of $6,500, billing targets of $10,000 per month will cover our costs. We don'treally expect to reach break-even until a few months into the business operation.

The break-even assumes unit variable costs at 30 percent of unit revenue. The unitrevenue value of $60/hour is an aggregate measure for all the types of services which will

be offered.


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Break-even Analysis


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Break-even AnalysisMonthly Revenue Break-even $3,444

Assumptions:Average Percent Variable Cost 30%

Estimated Monthly Fixed Cost $2,411

8.3. Projected Profit and Loss

The gross margin for a service-based business is a reflection of the efficiency at whichthose services are offered. In the initial year of operations, we have targeted a grossmargin of 70%. This is not an unreasonable figure for a consulting business. For the secondand third year of operations, we have targeted gross margins of 75% and 80% to indicate

overall improved efficiency at service delivery. Net Profit/Sales is determined to be 7.8%the first year, increasing to 9.8% the second year and 11.0% the third year. In order tofulfill the requirements of the mission statement and simultaneously reduce start up costs,we have made arrangements to purchase software on quarterly repayment options:

y Staad-Pro Core is a structural engineering design and drafting suite offered throughResearch Engineers Ltd. This program fulfills the need to carry out three-dimensional analysis and design requirements and is a key feature of the businessplan. This program supports Canadian codes and standards. We have contacted the

authorized Canadian reseller (Detech Corporation Ltd.) and will made arrangementsto purchase this tool on four payments of $1,550 over the first year of operations.

y Errors and Omissions Insurance is required for all consultants working on behalf ofthe Territorial Governments. Through Falconair Insurance, we have received aquotation of $1,200/year for this coverage. The first year's premium payments areincluded in the start-up costs, with subsequent years indicated at the same annualpremium.

y Website hosting fees are included as quarterly payments to Internic.com, the Webhost. As part of this service, we will have at our disposal file transfer protocol

capabilities. This feature permits us to place electronic media on the Internet for ourclients and strategic allies.


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Pro Forma Profit and LossFY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Sales $117,680 $129,600 $138,000 $0 $0Direct Costs of Goods $35,304 $32,400 $27,600 $0 $0Other $0 $0 $0 $0 $0

------------ ------------ ------------ ------------ ------------

Cost of Goods Sold $35,304 $32,400 $27,600 $0 $0

Gross Margin $82,376 $97,200 $110,400 $0 $0

Gross Margin % 70.00% 75.00% 80.00% 0.00% 0.00%

ExpensesPayroll $0 $0 $0 $0 $0Sales and Marketing and

Other Expenses

$9,450 $9,750 $9,750 $0 $0

Depreciation $1,800 $1,800 $1,800 $0 $0

WebSite Hosting Fees $380 $380 $380 $0 $0

Telephone/Fax $2,400 $2,400 $2,400 $0 $0Software Purchases ( Staad-

Pro Core)$6,200 $300 $300 $0 $0

Utilities $1,200 $1,200 $1,200 $0 $0Errors and Omissions

Insurance

$0 $1,200 $1,200 $0 $0

Rent $0 $4,800 $4,800 $0 $0

Payroll Taxes $7,500 $9,000 $10,500 $0 $0

Other $0 $0 $0 $0 $0------------ ------------ ------------ ------------ ------------

Total Operating Expenses $28,930 $30,830 $32,330 $0 $0

Profit Before Interest and

Taxes

$53,446 $66,370 $78,070 $0 $0

EBITDA $55,246 $68,170 $79,870 $0 $0

Interest Expense $179 $495 $830 $1,000 $1,000Taxes Incurred $8,319 $9,881 $12,552 $0 $0

Net Profit $44,949 $55,994 $64,689 ($1,000) ($1,000)

Net Profit/Sales 38.20% 43.21% 46.88% 0.00% 0.00%

D i B ild R


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Pro Forma Cash FlowFY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cash Received

Cash from OperationsCash Sales $88,260 $97,200 $103,500 $0 $0

Cash from Receivables $28,652 $32,322 $34,445 $901 $0

Subtotal Cash from

Operations$116,912 $129,522 $137,945 $901 $0

Additional Cash ReceivedSales Tax, VAT, HST/GST

Received$0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0New Other Liabilities

(interest-free)

$0 $0 $0 $0 $0

New Long-term Liabilities $3,300 $3,300 $3,400 $0 $0

Sales of Other Current

Assets

$0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0New Investment Received $0 $0 $0 $0 $0

Subtotal Cash Received $120,212 $132,822 $141,345 $901 $0

Expenditures FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Expenditures from

OperationsCash Spending $0 $0 $0 $0 $0Bill Payments $65,504 $71,332 $71,536 $6,795 $1,000

Subtotal Spent on Operations $65,504 $71,332 $71,536 $6,795 $1,000

Additional Cash SpentSales Tax, VAT, HST/GST

Paid Out

$0 $0 $0 $0 $0

Principal Repayment of

Current Borrowing

$0 $0 $0 $0 $0

Other Liabilities Principal

Repayment

$0 $0 $0 $0 $0

Long-term Liabilities $0 $0 $0 $0 $0

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8.5. Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worthand a sufficiently healthy financial position. The monthly estimates are included in theappendix.

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Pro Forma Balance SheetFY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Assets

Current AssetsCash $61,708 $123,198 $193,008 $187,113 $186,113

Accounts Receivable $768 $846 $901 $0 $0

Other Current Assets $0 $0 $0 $0 $0Total Current Assets $62,476 $124,044 $193,908 $187,113 $186,113

Long-term AssetsLong-term Assets $0 $0 $0 $0 $0Accumulated Depreciation $1,800 $3,600 $5,400 $5,400 $5,400

Total Long-term Assets ($1,800) ($3,600) ($5,400) ($5,400) ($5,400)Total Assets $60,676 $120,444 $188,508 $181,713 $180,713

Liabilities and Capital FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Current LiabilitiesAccounts Payable $5,427 $5,902 $5,878 $82 $82Current Borrowing $0 $0 $0 $0 $0

Other Current Liabilities $0 $0 $0 $0 $0Subtotal Current Liabilities $5,427 $5,902 $5,878 $82 $82

Long-term Liabilities $3,300 $6,600 $10,000 $10,000 $10,000

Total Liabilities $8,727 $12,502 $15,878 $10,082 $10,082

Paid-in Capital $20,000 $20,000 $20,000 $20,000 $20,000Retained Earnings ($13,000) $31,949 $87,942 $152,631 $151,631

Earnings $44,949 $55,994 $64,689 ($1,000) ($1,000)Total Capital $51,949 $107,942 $172,631 $171,631 $170,631

Total Liabilities and Capital $60,676 $120,444 $188,508 $181,713 $180,713

Net Worth $51,949 $107,942 $172,631 $171,631 $170,631

8.6. Business Ratios

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Ratio AnalysisFY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Industry

Profile

Sales Growth 0.00% 10.13% 6.48% 0.00% 0.00% 7.10%

Percent of Total AssetsAccounts Receivable 1.27% 0.70% 0.48% 0.00% 0.00% 35.40%

Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 38.30%Total Current Assets 102.97% 102.99% 102.86% 102.97% 102.99% 77.40%

Long-term Assets -2.97% -2.99% -2.86% -2.97% -2.99% 22.60%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 8.94% 4.90% 3.12% 0.05% 0.05% 44.50%

Long-term Liabilities 5.44% 5.48% 5.30% 5.50% 5.53% 11.70%Total Liabilities 14.38% 10.38% 8.42% 5.55% 5.58% 56.20%

Net Worth 85.62% 89.62% 91.58% 94.45% 94.42% 43.80%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%Gross Margin 70.00% 75.00% 80.00% 0.00% 0.00% 0.00%Selling, General &

Administrative Expenses

62.22% 65.24% 69.07% 0.00% 0.00% 81.80%

Advertising Expenses 0.51% 0.58% 0.54% 0.00% 0.00% 0.20%

Profit Before Interest and

Taxes45.42% 51.21% 56.57% 0.00% 0.00% 2.50%

Main RatiosCurrent 11.51 21.02 32.99 2276.54 2264.37 1.69Quick 11.51 21.02 32.99 2276.54 2264.37 1.37

Total Debt to Total Assets 14.38% 10.38% 8.42% 5.55% 5.58% 56.20%Pre-tax Return on Net

Worth

102.54% 61.03% 44.74% -0.58% -0.59% 6.00%

Pre-tax Return on Assets 87.79% 54.69% 40.97% -0.55% -0.55% 13.60%

Additional Ratios FY 2011 FY 2012 FY 2013 FY 2014 FY 2015Net Profit Margin 38.20% 43.21% 46.88% 0.00% 0.00% n.aReturn on Equity 86.53% 51.87% 37.47% -0.58% -0.59% n.a

Activity Ratios

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Current Liab. to Liab. 0.62 0.47 0.37 0.01 0.01 n.a

Liquidity RatiosNet Working Capital $57,049 $118,142 $188,031 $187,031 $186,031 n.aInterest Coverage 299.00 134.08 94.06 0.00 0.00 n.a

Additional RatiosAssets to Sales 0.52 0.93 1.37 n.a. n.a. n.aCurrent Debt/Total Assets 9% 5% 3% 0% 0% n.a

Acid Test 11.37 20.87 32.84 2276.54 2264.37 n.a

Sales/Net Worth 2.27 1.20 0.80 0.00 0.00 n.aDividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

Appendix


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Sales ForecastNov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

SalesProject Consulting 0% $4,000 $4,000 $4,000 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800Project Management 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600Home Inspections 0% $640 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640Computer Aided Drafting Services 0% $1,600 $2,400 $2,800 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200Total Sales $7,840 $8,640 $9,040 $10,240 $10,240 $10,240 $10,240 $10,240 $10,240 $10,240 $10,240 $10,240

Direct Cost of Sales Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11Project Consulting 0% $1,200 $1,200 $1,200 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440Project Management 0% $480 $480 $480 $480 $480 $480 $480 $480 $480 $480 $480 $480Home Inspections 0% $192 $192 $192 $192 $192 $192 $192 $192 $192 $192 $192 $192Computer Aided Drafting Services 0% $480 $720 $840 $960 $960 $960 $960 $960 $960 $960 $960 $960Subtotal Direct Cost of Sales $2,352 $2,592 $2,712 $3,072 $3,072 $3,072 $3,072 $3,072 $3,072 $3,072 $3,072 $3,072

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PersonnelPlanNov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

Name or title 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0TotalPeople 0 0 0 0 0 0 0 0 0 0 0 0

TotalPayroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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General AssumptionsNov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

Plan Month 1 2 3 4 5 6 7 8 9 10 11 12Current 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% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%Other 0 0 0 0 0 0 0 0 0 0 0 0


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