Download - Tsunami Bodywork
-
7/29/2019 Tsunami Bodywork
1/34
BusinessPlan
-
7/29/2019 Tsunami Bodywork
2/34
Contact: Voula Konstantarakis
Phone: (702) 596-3333
E-mail: [email protected]
-
7/29/2019 Tsunami Bodywork
3/34
Table of Contents
ExecutiveSummary.................................................................................................... 4
Use of Funds........................................................................................................ 5
Company Ownership........................................................................................... 5
Company Location............................................................................................... 5
Mission................................................................................................................. 5
Services.................................................................................................................... 6
Product Description.............................................................................................. 6
Market AnalysisSummary............................................................................................ 8
Market Segmentation........................................................................................... 9
Market Needs..................................................................................................... 10
Industry Analysis................................................................................................ 11
Competitive Comparison................................................................................... 11
Strategyand ImplementationSummary........................................................................ 13Competitive Edge............................................................................................... 13
Marketing Strategy............................................................................................. 13
ManagementSummary.............................................................................................. 15
Financial Indicators................................................................................................... 16
Appendix.................................................................................................................. 26
-
7/29/2019 Tsunami Bodywork
4/34
ExecutiveSummaryTsunami Body Works, LLC (also referred to as the Company) is a start-up business headquartered in
Las Vegas, Nevada that is scheduled to begin operations in October 2010. The Company will be aunique online retailer offering a wide selection of high-quality, European-formula body care productsdesigned to help women feel beautiful, bolder, and renewed. The Company will utilize state-of-the-arttechnology to make superior products that feature all-natural ingredients. With a focus on excellentcustomer service and affordable, high-quality products, Tsunami Body Works intends to achieve a loyalcustomer base and expand its product line.
Beauty products make up a large segment of the American consumer economy. Within that largegrouping, natural cosmetic products have become some of the highest sellers. Tsunami Body Workswill provide the highest quality natural cosmetic products, offering unique formulations that have a largeand growing need. The Company will be headquartered in Las Vegas, Nevada, one of the worldspremier tourist destinations, and will conduct the bulk of its business via the Internet. Buying productsover the Internet has become the norm in the past decade, with any type of product available and usuallyfor a reduced price. Tsunami Body Works will be able to offer customers across the country the highestquality beauty products without having to cater to a specific area of operation.
In order to take advantage of the high-end salons and spas that accompany some of the worlds mostluxurious hotels, Tsunami Body Works will offer its line of beauty products to spas and salons in theLas Vegas area. By catering both directly to consumers and to beauty shops, Tsunami Body Works willbe able to establish and build a strong and sustainable brand image. The Company will cater directly towomen who earn mid-level salaries and are interested in salon level products that can be used in theprivacy of their own homes.
Tsunami Body Works intends to promote its line of body and skin care products to retail salonenvironments, as well as to consumers, by launching a creative promotional campaign intended tosaturate the market with brand awareness. Specific advertising channels will include flyer distribution,use of a website, Internet marketing, networking, and television commercials. In addition, the Company
-
7/29/2019 Tsunami Bodywork
5/34
Use of FundsThe table below outlines the sources and uses of funding:
Loan $150,000
Ow ner Investment $0
Investor $0
Total Sources $150,000
Start-up Expenses
Legal $20,000
Stationery $6,000
Brochures $1,000
Consultants $5,000
Insurance $3,000
Rent $975
R & D $2,000
Other $2,000
Total Start-up Expenses $39,975
Start-up Assets
Working Capital $84,025
Inventory $20,000
Equipment $6,000
Property $0
Other Long-term Assets $0
Total Start-up Assets $110,025
Total Uses $150,000
SO
URCES&USES
SOURCES OF FUNDS
USES OF FUNDS
Company Ownership
-
7/29/2019 Tsunami Bodywork
6/34
ServicesTsunami Body Works will be an online retailer offering various body care products for women. The
Company will combine traditional European beauty formulas with modern technology to create high-quality products made from all natural ingredients. The Company will offer three unique product lines;all of which feature formulations that are designed to nourish and protect the skin, making all womenlook and feel younger, bolder, and renewed. Tsunami Body Works products are as follows:
Tsunami Hot and Cold:
Cellulite & Weight Loss
o
Tsunami Cellulite Creamo Tsunami Cold Gel
Hand and Foot Care
o Tsunami Foot and Nail Cream
Lavendina:
Body Care
o Lavendina Body Cream
o Lavendina Lotion
o Lavendina Shower Gel with Scrub
Hand and Foot Care
o Lavendina Hand Cream
o Lavendina Foot and Nail Cream
Fabulous Vegas Baby:
Body Careo Vegas Baby Body Cream
o Vegas Baby Lotion
V B b Sh G l ith S b
-
7/29/2019 Tsunami Bodywork
7/34
improving the appearance of unsightly dimpled skin.Lavendina:
For many centuries, lavender has been used to soothe and calmthe mind and promote restful sleep. The Lavendina product linewill feature the essence of lavender to help women experienceserenity and tranquility. By combining natural ingredients andessential oils, skin will be left clean, soft, and well-hydrated afterusing Lavendina products.
Fabulous Vegas Baby:
The Fabulous Vegas Baby line is designed to quench and hydrateparched, damaged skin. Products will be made from finestemollient ingredients such as avocado oil, Shea butter, andgrapeseed oil. Avocado oil is rich in vitamins A, C, and E, aswell as protein and amino acids, and softens and conditions dry,flaky skin, while Shea Butter is known to reduce wrinkles andprotect skin against environmental aging. Additionally, grapeseed oil, rich in essential fatty acids, helps protect and soothedry, overworked skin.
-
7/29/2019 Tsunami Bodywork
8/34
Market AnalysisSummaryTsunami Body Works location in Las Vegas, Nevada (Clark County) places it in one of the worlds
most popular tourist destinations. The Companys chosen location will maximize the businesss abilityto tap into a steady stream of consumer traffic. The following table provides the most current U.S.Census data with regard to the population growth of Clark County.
Clark County, Nevada Population & Growth1
Population, 2009 estimate 1,902,834Population, percent change, April 1, 2000 to July 1, 2009 38.3%Population, 2000 1,375,738
Tsunami Body Works will primarily provide its products through Internet based sales. The Companywill also target high-end beauty salons in the city of Las Vegas as a way to build a brand image andgrow its market share. The following table provides pertinent figures for the populations of Las Vegas,the state of Nevada, and the United States as a whole. This data is provided by ESRI, a market researchfirm.2
Full Demographic Report Las Vegas Nevada United States Side-by-side analysis
Las Vegas NevadaUnitedStates
2010 Total Population 580,369 2,748,294 311,212,8632015 Total Population 613,886 2,999,160 323,209,391
2010 - 2015 Annual Rate 1.13% 1.76% 0.76%
2010 Households 210,301 1,025,511 116,761,1402010 Average Household Size 2.72 2.65 2.59
2010 Families 136,623 672,641 78,333,3592010 Average Family Size 3.27 3.17 3.16
Median Household Income
-
7/29/2019 Tsunami Bodywork
9/34
$25,000 - $34,999 10.6% 9.7% 9.7%$35,000 - $49,999 15.8% 15.9% 15.0%
$50,000 - $74,999 21.9% 23.3% 21.6%$75,000 - $99,999 14.4% 15.3% 14.1%
$100,000 - $149,999 12.2% 12.8% 11.9%$150,000 - $199,999 2.5% 2.8% 3.4%$200,000 + 3.4% 3.2% 3.5%
Average Household Income $69,210 $71,330 $70,173
2010 Population by Age
Total 580,372 2,748,294 311,212,863
0 - 4 7.9% 7.3% 6.8%5 - 9 7.2% 6.8% 6.7%10 - 14 6.6% 6.4% 6.5%15 - 19 6.6% 6.5% 7.0%20 - 24 6.4% 6.4% 6.9%25 - 34 14.1% 13.9% 13.3%35 - 44 14.5% 13.9% 13.4%45 - 54 13.7% 14.4% 14.6%55 - 64 10.4% 11.8% 11.7%65 - 74 7.0% 7.3% 6.8%
75 - 84 4.2% 4.0% 4.3%85+ 1.3% 1.4% 2.0%18+ 74.3% 75.6% 75.8%
2010 Population by Sex
Males 50.4% 50.3% 49.2%Females 49.6% 49.7% 50.8%
2010 Population 25+ by Educational Attainment
Total 378,856 1,831,539 205,370,648Less than 9th Grade 8.9% 7.1% 6.3%
-
7/29/2019 Tsunami Bodywork
10/34
derived from natural ingredients from the highest quality sources. The Company will place strongemphasis on this aspect of its product line. A large number of consumers are becoming aware of the
need to purchase products that are created with the overall health of the planet in mind. The benefits ofnatural and earth-healthy products are two-fold. Natural products are better for the welfare of the planet,and are of higher-quality than their synthetic relatives.
Tsunami Body Works line of beauty products and cosmetics will provide women with the freshest andbest natural beauty products, allowing the Companys target customers to enjoy healthy skin withoutdamaging their skin or the planet as a whole.
Tsunami Body Works will also target its line of products to spas and salons in the Las Vegas area. LasVegas, Nevada is home to some of the worlds most luxurious hotels and spas. By pursuing local spaswith its products, the Company will tap into one of the largest and most stable consumer spendingstreams in the world. Having products available in Las Vegas spas will also help the Company buildand sustain its brand image.
Market Needs
According to an article provided by the online service Market Research World, demand for cosmeticshas been stagnating in developed markets such as the United States during the last five years. In aneffort to improve sales, manufacturers have capitalized on the growing consumer interest in health andwellness by investing in cosmetic products containing natural ingredients.3 By providing the finestquality of naturally-derived beauty products, Tsunami Body Works will help meet the growing need fornatural cosmetic products that is sweeping the cosmetic and beauty product industry.
The Company will meet and address consumer needs on a second level as well, beyond just satisfying
the needs of customers for natural based beauty products. Women of all kinds have a need for salon andspa quality beauty products outside of the salon and spa. Tsunami Body Works will provide the types ofproducts usually found only in high-end salons and spas for women around the country to take home anduse in their own bathrooms and houses. By catering its product line to both women and salons, Tsunami
-
7/29/2019 Tsunami Bodywork
11/34
Tsunami Body Works will sell its product line via the Internet, allowing the Company to have unlimited
access to the entire population of the United States. The Company will primarily target women, and, asthe above chart shows women are a large percentage of the population.
Industry AnalysisTsunami Body Works will operate within theDrugs, Proprietaries, and Sundries industry (StandardIndustrial Classification 5122). The table below shows Dun & Bradstreet data regarding theperformance of the businesses in this industry on a national, state, and local level. The Company will
also operate in the industry subsets ofCosmetics, Perfumes, and Hair Products and Cosmetics. Industrysubset data is measured on a national scale only.4
Industry: Drugs, Proprietaries, and Sundries (5122)
Establishments primarily engaged in the wholesale distribution of prescription drugs, proprietary drugs, druggists'sundries, and toiletries.Market Size StatisticsEstimated number of U.S. establishments: 11,338Number of people employed in this industry: 141,603
Total annual sales in this industry: $317.3 billionAverage number of employees per establishment: 13Average sales per establishment (unknown values are excluded from the average): $34.1 millionMarket Analysis by State and Metropolitan Area
State/Metro No Bus. % TotalTotal
EmployeesTotalSales
AverageEmployees
AverageSales
Nevada 119 1 1,003 $122.8 million 9 $1.3 millionLas Vegas, NV 82 0.7 680 $79.6 million 9 $1.2 million
Market Analysis by Specialty (8-digit SIC Code)
SIC Code SIC Description No Bus. % TotalTotal
EmployeesTotalSales
AverageEmployees
AverageSales
5122-0100 Cosmetics, perfumes, and hair products 1,346 11.9 7,805 $1.6 billion 6 $1.3 M5122 0101 C ti 1 923 17 15 355 $1 8 billi 8 $1 M
-
7/29/2019 Tsunami Bodywork
12/34
Advantages: Sephora offers a wide range of cosmetic products in a selection of
categories, including makeup, skincare, fragrance, bath and body, hair, tools, men, and
natural and organic. Sephora also sells all of its products online.
Disadvantages: Sephora offers a selection of natural and organic products, but does not
specialize in that type of product.
The Body Shop
www.thebodyshop-usa.com
Overview: The Body Shop is a cosmetics company founded in 1976 in England. There
are currently 2,400 in 61 countries, making The Body Shop the second largest cosmeticfranchise in the world.
Advantages: The Body Shop specializes in natural cosmetics products and is active in
many social services and charity programs around the world.
Disadvantages: The Body Shop sells products only in its own retail stores, and does not
sell products to salons and spas.
Saffron Rouge
www.saffronrouge.com
Overview: Saffron Rouge is the first beauty retailer in the world to focus exclusively on
organics. Offering over 1,000 of the worlds finest organic beauty and aromatherapyproducts, Saffron Rouge is North Americas number-one online retailer of organic skincare and cosmetic products.
Advantages: Saffron Rouge offers only products that have at least one of the organic
body care certifications, or provide evidence that certified organic content is being used
-
7/29/2019 Tsunami Bodywork
13/34
Strategyand ImplementationSummaryThe European Secret to Beauty and Wellness
Tsunami Body Works will develop a brand that encompasses quality and availability in its provision ofbody care products to the Las Vegas marketplace. To increase brand awareness, the Company hasdeveloped a memorable brand logo, as well as multiple product logos, that it will use throughout itspromotional strategy and within its various marketing materials.
With its guiding principles established, Tsunami Body Works will send a clear message about the keybenefits of its solutions-based products, indicating its functionality beyond skin care and more towardsoverall health and vitality of the body. The Company will illustrate this message with a diversemarketing campaign involving a number of modern and conventional techniques to bolster awareness atthe street level as well as online. This approach intends to help Tsunami Body Works achieve thefollowing objectives:
Establish a strong brand name and reputation
Fuel growth through positive word of mouth referrals
Earn enough revenue to expand operations
To reach these operational benchmarks, the Company will build on its strengths and advantages asoutlined in the following section.
Competitive EdgeTsunami Body Works intends to capitalize on its core strengths in order to establish itself as a leadingsupplier of spa and beauty products to the Las Vegas marketplace. These competitive advantages areoutlined in greater detail below.
Unmatched customer service
All-natural European products
-
7/29/2019 Tsunami Bodywork
14/34
Website: The Company will capitalize on its existing website (www.tsunamibodyworks.com) to
generate interest in its beauty products. This website will be search engine optimized andcontain a number of features including: product information, testimonials, photo gallery,company profile, location, and list of services.
**suggestion** Internet advertising: Tsunami Body Works will benefit from using a
combination of Internet advertising including Cost-per-Click, Google AdWords, Tags, andbanner ads. This effort will help generate interest in the Company from the online communityand general public.
**suggestion** Networking: As with any relationship-based business, the Company will
benefit from participating in a number of networking opportunities that have the potential toyield new business contacts as well as nourish existing ones. Tsunami Body Works will attend avariety of events that draw substantial numbers of prospective customers. Events may includeseminars, mixers, and luncheons which provide opportunities to speak to and associate withlarger audiences. This will create a positive business environment that encourages discourse
among the Company and its target market.
**suggestion** Print media: Tsunami Body Works willplace ads in national print
publications. These advertisements will include the Companys location and will also offerlimited time discounts or other promotions.
**suggestion** Word of mouth: Word travels quickly between family members, peers, and
colleagues who are pleased with their experiences with a particular business. The Company will
rely on this effective and inexpensive resource to generate interest in its beauty products.According to research conducted by Forrester, there were 256 billion influence impressionsoccurring per year [in 2009]. Influence posts were numbered at 1.64 billion per year, whichaccounted for generating another 250 billion impressions In other words people are making
-
7/29/2019 Tsunami Bodywork
15/34
ManagementSummaryShannon Cobb, Owner
Ms. Cobb is an entrepreneur at heart, and has devoted her entire professional career as a stylist. For thelast 25 years, she has owned and operated her salon Hair at the Lakes, performing hairdressing for adevoted, long-term clientele.
Aleksandar Maric, Owner
Mr. Maric is a Serbian immigrant who has spent only the last five years in the United States. Hisprofessional expertise includes providing concierge-level service among cruise lines, serving as amassage therapist for domestic and international clients.
-
7/29/2019 Tsunami Bodywork
16/34
Financial IndicatorsThe following table and graph illustrate the financial goals of the Company during the next three years:
Year 1 Year 2 Year 3
Revenue $437,427 $656,141 $885,790
Gross Margin $368,279 $552,418 $745,764
Operating Expenses $429,293 $498,010 $542,549
EBITDA* ($60,614) $54,808 $203,615
Net Prof it ($70,969) $45,698 $195,838
Prof itability Ratios
Gross Margin/Revenue 84% 84% 84%
EBITDA/Revenue -14% 8% 23%
Net Profit/Revenue -16% 7% 22%
Debt Ratios
Debt Ratio (Total Debt/Total Assets) 352.11% 188.71% 48.73%
Interest Coverage Ratio -6.09 6.29 27.60Debt Service Coverage Ratio -2.23 2.02 7.49
Net Cash Flow ($65,619) $29,941 $181,565
Cash Balance - Ending $18,406 $48,346 $229,911
*Earnings before interest, taxes,
depreciation & amortization
FINANCIALHIGHLIGHTS
Financial Highlights
$800,000
$1,000,000
-
7/29/2019 Tsunami Bodywork
17/34
The following is a three-year revenue forecast. Direct costs include all costs which can be directly tiedto revenue and include cost of goods.
Year 1 Year 2 Year 3
Revenue
Tsunami Hot 4 oz. $51,300 $76,950 $103,883
Tsunami Hot 6 oz. $52,920 $79,380 $107,163
Tsunami Cool 4 oz. $32,250 $48,375 $65,306
Tsunami Cool 6 oz. $29,925 $44,888 $60,598
Vegas Baby Body Cream 4 oz. $15,540 $23,310 $31,469
Vegas Baby Body Cream 6 oz. $14,153 $21,229 $28,659
Vegas Baby Body Lotion 4 oz. $10,194 $15,291 $20,643
Vegas Baby Body Lotion 6 oz. $9,900 $14,850 $20,048
Vegas Baby Show er Gel & Scrub 4 oz. $11,394 $17,091 $23,073
Vegas Baby Show er Gel & Scrub 6 oz. $10,575 $15,863 $21,414
Vegas Baby Hand Cream 2 oz. $35,970 $53,955 $72,839
Vegas Baby Balm 4 oz. $14,394 $21,591 $29,148
Lavendina Body Cream 4 oz. $18,720 $28,080 $37,908
Lavendina Body Cream 6 oz. $16,349 $24,523 $33,106
Lavendina Body Lotion 4 oz. $13,194 $19,791 $26,718
Lavendina Body Lotion 6 oz. $12,375 $18,563 $25,059
Lavendina Show er Gel & Scrub 4 oz. $13,380 $20,070 $27,095
Lavendina Show er Gel & Scrub 6 oz. $12,825 $19,238 $25,971
Lavendina Hand Cream 2 oz. $44,970 $67,455 $91,064
Lavendina Balm 4 oz. $17,100 $25,650 $34,628
Total Revenue $437,427 $656,141 $885,790
Direct Cost of Revenue
Tsunami Hot 4 oz. $7,776 $11,664 $15,746Tsunami Hot 6 oz. $8,019 $12,029 $16,238
Tsunami Cool 4 oz. $4,830 $7,245 $9,781
Tsunami Cool 6 oz. $4,484 $6,725 $9,079
EVENUE
FORECAST
-
7/29/2019 Tsunami Bodywork
18/34
The table below shows the units and pricing assumptions underlying the revenue forecast:
Year 1 Year 2 Year 3
Units
Tsunami Hot 4 oz. 1,800 2,700 3,645
Tsunami Hot 6 oz. 1,350 2,025 2,734
Tsunami Cool 4 oz. 1,500 2,250 3,038
Tsunami Cool 6 oz. 1,050 1,575 2,126
Vegas Baby Body Cream 4 oz. 600 900 1,215
Vegas Baby Body Cream 6 oz. 450 675 911
Vegas Baby Body Lotion 4 oz. 600 900 1,215
Vegas Baby Body Lotion 6 oz. 450 675 911
Vegas Baby Show er Gel & Scrub 4 oz. 600 900 1,215
Vegas Baby Show er Gel & Scrub 6 oz. 450 675 911
Vegas Baby Hand Cream 2 oz. 3,000 4,500 6,075
Vegas Baby Balm 4 oz. 600 900 1,215
Lavendina Body Cream 4 oz. 600 900 1,215
Lavendina Body Cream 6 oz. 450 675 911
Lavendina Body Lotion 4 oz. 600 900 1,215
Lavendina Body Lotion 6 oz. 450 675 911
Lavendina Show er Gel & Scrub 4 oz. 600 900 1,215
Lavendina Show er Gel & Scrub 6 oz. 450 675 911
Lavendina Hand Cream 2 oz. 3,000 4,500 6,075
Lavendina Balm 4 oz. 600 900 1,215
Total Units 19,200 28,800 38,880
Unit Price
Tsunami Hot 4 oz. $28.50 $28.50 $28.50
Tsunami Hot 6 oz. $39.20 $39.20 $39.20
Tsunami Cool 4 oz. $21.50 $21.50 $21.50
Tsunami Cool 6 oz. $28.50 $28.50 $28.50
Vegas Baby Body Cream 4 oz. $25.90 $25.90 $25.90
Vegas Baby Body Cream 6 oz. $31.45 $31.45 $31.45
Vegas Baby Body Lotion 4 oz. $16.99 $16.99 $16.99
Vegas Baby Body Lotion 6 oz. $22.00 $22.00 $22.00
Vegas Baby Show er Gel & Scrub 4 oz. $18.99 $18.99 $18.99
Vegas Baby Show er Gel & Scrub 6 oz. $23.50 $23.50 $23.50
Vegas Baby Hand Cream 2 oz. $11.99 $11.99 $11.99
Vegas Baby Balm 4 oz. $23.99 $23.99 $23.99
Lavendina Body Cream 4 oz. $31.20 $31.20 $31.20
Lavendina Body Cream 6 oz. $36.33 $36.33 $36.33UNITA
SSUMPTIONS
-
7/29/2019 Tsunami Bodywork
19/34
Year 1 Revenue Monthly
$0
$5,000$10,000$15,000
$20,000$25,000
$30,000
$35,000
$40,000$45,000
$50,000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Lavendina
Vegas Baby
Tsunami
Revenue By Year
$400,000
$500,000$600,000
$700,000
$800,000
$900,000
$1,000,000
Lavendina
Vegas Baby
-
7/29/2019 Tsunami Bodywork
20/34
The Companys personnel forecast is outlined below. Personnel wages indicate the average wage perposition and personnel costs are total wages for each position.
Year 1 Year 2 Year 3
Personnel Count
Manager/Partner 2 2 2
Director pf Operations 1 1 1
Marketing Manager/Executive Assistant 1 1 1
Sales 1 2 3
Ass istant/Receptionist 0 1 1
Total Personnel 5 7 8
Personnel Wage
Manager/Partner $70,000 $73,500 $77,175
Director pf Operations $65,000 $68,250 $71,663
Marketing Manager/Executive Assis tant $60,000 $63,000 $66,150
Sales $0 $0 $0
Ass istant/Receptionist $0 $23,920 $25,116
Personnel Costs
Manager/Partner $140,000 $147,000 $154,350
Director pf Operations $65,000 $68,250 $71,663
Marketing Manager/Executive Assis tant $60,000 $63,000 $66,150
Sales $0 $0 $0
Ass istant/Receptionist $0 $23,920 $25,116
Total Payroll $265,000 $302,170 $317,279
P
ERSONNELFORECAST
-
7/29/2019 Tsunami Bodywork
21/34
The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Losstable below, gross margin equals revenue minus direct costs. The bottom line or profit (as measured
before and after interest, taxes, depreciation, and amortization) equals gross margin minus operatingexpenses.
Year 1 Year 2 Year 3
Revenue $437,427 $656,141 $885,790
Total Cost of Revenue $69,149 $103,723 $140,026
Gross Margin $368,279 $552,418 $745,764
Gross Margin/Revenue 84% 84% 84%
Expenses
Rent $11,700 $12,300 $12,900
Insurance $12,000 $12,600 $13,200
Marketing $21,900 $23,000 $24,200
Commission $43,743 $65,614 $88,579
Utilities $15,000 $15,800 $16,600
Phone/Internet $6,000 $6,300 $6,600
Office Supplies $1,800 $1,900 $2,000
Other/Misc. $12,000 $12,600 $13,200Depreciation $400 $400 $400
Payroll Taxes & Benefits $39,750 $45,326 $47,592
Total Personnel $265,000 $302,170 $317,279
Total Op. Expenses $429,293 $498,010 $542,549
Profit Before Interest and Taxes ($61,014) $54,408 $203,215
EBITDA ($60,614) $54,808 $203,615
Interest Expense $9,955 $8,710 $7,376
Taxes Incurred $0 $0 $0
Net Profit ($70,969) $45,698 $195,838
Net Profit/Revenue -16.2% 7.0% 22.1%
PROFORMAPROFIT&LOSS
-
7/29/2019 Tsunami Bodywork
22/34
The charts below demonstrate when the Company is expected to become profitable. Break-even occurs
when revenue exceeds expenses.
Revenue & Expenses
Year 1 Monthly
$0$5,000
$10,000
$15,000$20,000$25,000$30,000$35,000
$40,000$45,000$50,000
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month1
0
Month1
1
Month1
2
Revenue
Expenses
Revenue & Expenses
Years 1 to 3
$800,000
$900,000$1,000,000
Revenue
-
7/29/2019 Tsunami Bodywork
23/34
The following depictions of the Companys projected cash flow show that the Company expects tomaintain sufficient cash balances over the three years of this plan. The pro forma cash flow table
differs from the pro forma profit and loss (P&L) table. Pro forma cash flow is intended to representthe actual flow of cash in and out of the Company. In comparison, the revenue and expense projectionson the P&L table include non-cash items and exclude funding and investment illustrations.
Cash Flow
-$100,000
-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Year 1 Year 2 Year 3
Net Cash Flow
Cash Balance
Year 1 Year 2 Year 3
Cash Received
Revenue $437,427 $656,141 $885,790
New Current Borrow ing $0 $0 $0New Long-term Liabilities $0 $0 $0
Sale of Other Current Assets $0 $0 $0
Sale of Long-term Assets $0 $0 $0
-
7/29/2019 Tsunami Bodywork
24/34
The balance sheet below highlights the Companys projected assets, liabilities, and capital:
Year 1 Year 2 Year 3Assets
Current Assets
Cash $18,406 $48,346 $229,911
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $38,406 $68,346 $249,911
Long-term Assets
Long-term Assets $6,000 $6,000 $6,000
Accumulated Depreciation $400 $800 $1,200Total Long-term Assets $5,600 $5,200 $4,800
Total Assets $44,006 $73,546 $254,711
Liabilities and Capital
Current Liabilities
Accounts Payable $22,162 $24,461 $29,578
Current Borrow ing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $22,162 $24,461 $29,578
Long-term Liabilities $132,788 $114,332 $94,541
Total Liabilities $154,950 $138,793 $124,119
Paid-in Capital $0 $0 $0
Retained Earnings ($39,975) ($110,944) ($65,246)
Earnings ($70,969) $45,698 $195,838
Total Capital ($110,944) ($65,246) $130,592
Total Liabilities and Capital $44,006 $73,546 $254,711
BALANCESHEET
-
7/29/2019 Tsunami Bodywork
25/34
The sensitivity analysis below assumes that revenues are 15% higher or lower than figures projectedearlier in this business plan:
Year 1 Year 2 Year 3
Revenue $503,041 $754,562 $1,018,658
Cost of Goods $79,521 $119,281 $161,030
Gross Margin $423,520 $635,280 $857,629
Gross Margin/Revenue 84% 84% 84%
Operating Expenses $429,293 $498,010 $542,549
Net Prof it ($15,727) $128,560 $307,703Net Profit/Revenue -3% 17% 30%
Cash Flow ($10,017) $112,841 $293,512
Cash Balance $74,008 $186,848 $480,361
BESTCA
SESCENARIO
REVENUE IS 15% GREATER THAN PROJECTED
Year 1 Year 2 Year 3
Revenue $371,813 $557,719 $752,921
Cost of Goods $58,776 $88,164 $119,022
Gross Margin $313,037 $469,555 $633,899
Gross Margin/Revenue 84% 84% 84%
Operating Expenses $429,293 $498,010 $542,549
Net Prof it ($126,211) ($37,165) $83,974
Net Prof it/Revenue -34% -7% 11%
Cash Flow ($121,221) ($52,960) $69,617
Cash Balance ($37,196) ($90,155) ($20,539)WO
RSTCASESCENARIO REVENUE IS 15% LESS THAN PROJECTED
-
7/29/2019 Tsunami Bodywork
26/34
AppendixMonth 1 Month 2 Month 3 Month 4 Month 5 M onth 6 Month 7 Month 8 Month 9 M onth 10 Month 11 Month 12
Personnel Count
Manager/P artner 2 2 2 2 2 2 2 2 2 2 2 2
Director pf Operations 1 1 1 1 1 1 1 1 1 1 1 1
Marketing Manager/Executive Assistant 1 1 1 1 1 1 1 1 1 1 1 1
Sales 1 1 1 1 1 1 1 1 1 1 1 1
Assistant/Receptionist 0 0 0 0 0 0 0 0 0 0 0 0
Total Personnel 5 5 5 5 5 5 5 5 5 5 5 5
Personnel Wage
Manager/P artner $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833
Director pf Operations $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
M arketing M anager/Executive Assistant $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assistant/Receptionist $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Personnel Costs
Manager/P artner $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667
Director pf Operations $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
M arketing M anager/Executive Assistant $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assistant/Receptionist $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Payroll $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083
PER
SONNELFORECAST
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
26
-
7/29/2019 Tsunami Bodywork
27/34
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue
Tsunami Hot 4 oz. $3,223 $3,384 $3,553 $3,731 $3,918 $4,113 $4,319 $4,535 $4,762 $5,000 $5,250 $5,512
Tsunami Hot 6 oz. $3,325 $3,491 $3,666 $3,849 $4,041 $4,243 $4,455 $4,678 $4,912 $5,158 $5,416 $5,686
Tsunami Cool 4 oz. $2,026 $2,127 $2,234 $2,345 $2,463 $2,586 $2,715 $2,851 $2,994 $3,143 $3,300 $3,465
Tsunami Cool 6 oz. $1,880 $1,974 $2,073 $2,176 $2,285 $2,399 $2,519 $2,645 $2,778 $2,917 $3,062 $3,216Vegas Baby Body C ream 4 oz. $976 $1,025 $1,076 $1,130 $1,187 $1,246 $1,308 $1,374 $1,442 $1,515 $1,590 $1,670
Vegas B aby B ody C ream 6 oz. $889 $934 $980 $1,029 $1,081 $1,135 $1,192 $1,251 $1,314 $1,379 $1,448 $1,521
Vegas Baby Body Lotion 4 oz. $640 $672 $706 $741 $778 $817 $858 $901 $946 $994 $1,043 $1,095
Vegas Baby Body Lotion 6 oz. $622 $653 $686 $720 $756 $794 $834 $875 $919 $965 $1,013 $1,064
Vegas B aby Shower Gel & Scrub 4 oz. $716 $752 $789 $829 $870 $914 $959 $1,007 $1,058 $1,110 $1,166 $1,224
Vegas B aby Shower Gel & Scrub 6 oz. $664 $698 $732 $769 $808 $848 $890 $935 $982 $1,031 $1,082 $1,136
Vegas Baby Hand C ream 2 oz. $2,260 $2,373 $2,491 $2,616 $2,747 $2,884 $3,028 $3,180 $3,339 $3,506 $3,681 $3,865
Vegas B aby B alm 4 oz. $904 $950 $997 $1,047 $1,099 $1,154 $1,212 $1,272 $1,336 $1,403 $1,473 $1,547
Lavendina Body Cream 4 oz. $1,176 $1,235 $1,297 $1,361 $1,430 $1,501 $1,576 $1,655 $1,738 $1,825 $1,916 $2,012
Lavendina Body Cream 6 oz. $1,027 $1,078 $1,132 $1,189 $1,248 $1,311 $1,376 $1,445 $1,517 $1,593 $1,673 $1,757
Lavendina B ody Lotion 4 oz. $829 $870 $914 $960 $1,008 $1,058 $1,111 $1,166 $1,225 $1,286 $1,350 $1,418
Lavendina B ody Lotion 6 oz. $777 $816 $857 $900 $945 $992 $1,042 $1,094 $1,149 $1,206 $1,266 $1,330
Lavendina Sho wer Gel & Scrub 4 o z. $841 $883 $927 $973 $1,022 $1,073 $1,126 $1,183 $1,242 $1,304 $1,369 $1,438
Lavendina Sho wer Gel & Scrub 6 o z. $806 $846 $888 $933 $979 $1,028 $1,080 $1,134 $1,190 $1,250 $1,312 $1,378
Lavendina Hand C ream 2 o z. $2,825 $2,967 $3,115 $3,271 $3,434 $3,606 $3,786 $3,975 $4,174 $4,383 $4,602 $4,832
Lavendina B alm 4 oz. $1,074 $1,128 $1,184 $1,244 $1,306 $1,371 $1,440 $1,512 $1,587 $1,667 $1,750 $1,837
Total Revenue $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003
R
EVENUEFORECAST
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
27
-
7/29/2019 Tsunami Bodywork
28/34
M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M o nth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12
Direct Cost o f Revenue
Tsunami Hot 4 oz. $489 $513 $539 $566 $594 $624 $655 $687 $722 $758 $796 $836
Tsunami Hot 6 oz. $504 $529 $555 $583 $612 $643 $675 $709 $744 $782 $821 $862
Tsunami Cool 4 oz. $303 $319 $335 $351 $369 $387 $407 $427 $448 $471 $494 $519
Tsunami Cool 6 oz. $282 $296 $311 $326 $342 $360 $377 $396 $416 $437 $459 $482Vegas Baby Body Cream 4 oz. $160 $168 $176 $185 $194 $204 $214 $225 $236 $248 $260 $273
Vegas Baby Body Cream 6 oz. $164 $172 $181 $190 $199 $209 $220 $231 $242 $254 $267 $280
Vegas Baby Body Lotion 4 oz. $108 $114 $119 $125 $131 $138 $145 $152 $160 $168 $176 $185
Vegas Baby Body Lotion 6 oz. $106 $112 $117 $123 $129 $136 $142 $150 $157 $165 $173 $182
Vegas Baby Shower Gel & Scrub 4 oz. $127 $134 $140 $147 $155 $163 $171 $179 $188 $198 $208 $218
Vegas Baby Shower Gel & Scrub 6 oz. $128 $135 $142 $149 $156 $164 $172 $181 $190 $199 $209 $220
Vegas Baby Hand Cream 2 oz. $428 $449 $472 $495 $520 $546 $573 $602 $632 $664 $697 $732
Vegas Baby Balm 4 oz. $162 $170 $179 $188 $197 $207 $217 $228 $239 $251 $264 $277
Lavendina Body Cream 4 oz. $160 $168 $176 $185 $194 $204 $214 $225 $236 $248 $260 $273
Lavendina Body Cream 6 oz. $164 $172 $181 $190 $199 $209 $220 $231 $242 $254 $267 $280
Lavendina Body Lotion 4 oz. $108 $114 $119 $125 $131 $138 $145 $152 $160 $168 $176 $185
Lavendina Body Lotion 6 oz. $106 $112 $117 $123 $129 $136 $142 $150 $157 $165 $173 $182
Lavendina Shower Gel & Scrub 4 oz. $127 $134 $140 $147 $155 $163 $171 $179 $188 $198 $208 $218
Lavendina Shower Gel & Scrub 6 oz. $127 $134 $140 $147 $155 $162 $170 $179 $188 $197 $207 $218
Lavendina Hand Cream 2 oz. $428 $449 $472 $495 $520 $546 $573 $602 $632 $664 $697 $732
Lavendina Balm 4 oz. $162 $170 $179 $188 $197 $207 $217 $228 $239 $251 $264 $277
S ubto tal C os t o f R evenue $4,344 $ 4,561 $4,790 $5,029 $ 5,281 $ 5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430
Other Direct Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Direct Costs $4,344 $4,561 $4,790 $5,029 $5,281 $5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430
Gro ss M argin $ 23,137 $24,294 $ 25,509 $ 26,784 $28,123 $ 29,530 $31,006 $32,556 $ 34,184 $35,893 $37,688 $ 39,573
Gross Margin % 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84%
REVE
NUEFORECAST
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
28
-
7/29/2019 Tsunami Bodywork
29/34
Month 1 Month 2 Month 3 M onth 4 Month 5 Month 6 Month 7 Month 8 M onth 9 Month 10 M onth 11 Month 12
Units
Tsunami Hot 4 oz. 113 119 125 131 137 144 152 159 167 175 184 193
Tsunami Hot 6 oz. 85 89 94 98 103 108 114 119 125 132 138 145
Tsunami Coo l 4 oz. 94 99 104 109 115 120 126 133 139 146 154 161
Tsunami Coo l 6 oz. 66 69 73 76 80 84 88 93 97 102 107 113Vegas Baby Body Cream 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Vegas Baby Body Cream 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Vegas Baby Body Lotion 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Vegas Baby Body Lotion 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Vegas Baby Shower Gel & Scrub 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Vegas Baby Shower Gel & Scrub 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Vegas Baby Hand Cream 2 oz. 188 198 208 218 229 241 253 265 278 292 307 322
Vegas Baby Balm 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Lavendina Body Cream 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Lavendina Body Cream 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Lavendina Body Lotion 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Lavendina Body Lotion 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Lavendina Shower Gel & Scrub 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Lavendina Shower Gel & Scrub 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Lavendina Hand Cream 2 oz. 188 198 208 218 229 241 253 265 278 292 307 322
Lavendina Balm 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Total Units 1,206 1,267 1,330 1,396 1,466 1,540 1,616 1,697 1,782 1,871 1,965 2,063
UNITASSUMPTIONS
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
29
-
7/29/2019 Tsunami Bodywork
30/34
Month 1 Month 2 Month 3 M onth 4 Month 5 M onth 6 Month 7 Month 8 M onth 9 Month 10 M onth 11 M onth 12
Unit Price
Tsunami Hot 4 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50
Tsunami Hot 6 oz. $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20
Tsunami Coo l 4 oz. $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50
Tsunami Coo l 6 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50Vegas Baby Body Cream 4 oz. $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90
Vegas Baby Body Cream 6 oz. $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45
Vegas Baby Body Lotion 4 oz. $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99
Vegas Baby Body Lotion 6 oz. $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00
Vegas Baby Shower Gel & Scrub 4 oz. $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99
Vegas Baby Shower Gel & Scrub 6 oz. $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50
Vegas Baby Hand Cream 2 oz. $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99
Vegas Baby Balm 4 oz. $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99
Lavendina Body Cream 4 oz. $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20
Lavendina Body Cream 6 oz. $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33
Lavendina Body Lotion 4 oz. $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99
Lavendina Body Lotion 6 oz. $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50
Lavendina Shower Gel & Scrub 4 oz. $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30
Lavendina Shower Gel & Scrub 6 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50
Lavendina Hand Cream 2 oz. $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99
Lavendina Balm 4 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50
UNITASSUMPTIONS
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
30
-
7/29/2019 Tsunami Bodywork
31/34
Month 1 Month 2 Month 3 M onth 4 Month 5 M onth 6 M onth 7 Month 8 M onth 9 Month 10 M onth 11 M onth 12
Direct Unit Cost
Tsunami Hot 4 oz. $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32
Tsunami Hot 6 oz. $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94
Tsunami Coo l 4 oz. $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22
Tsunami Coo l 6 oz. $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27
Vegas Baby Body Cream 4 oz. $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24
Vegas Baby Body Cream 6 oz. $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80
Vegas Baby Body Lotion 4 oz. $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87
Vegas Baby Body Lotion 6 oz. $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76
Vegas Baby Shower Gel & Scrub 4 oz. $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38
Vegas Baby Shower Gel & Scrub 6 oz. $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54
Vegas Baby Hand Cream 2 oz. $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27
Vegas Baby Balm 4 oz. $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30
Lavendina Body Cream 4 oz. $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24
Lavendina Body Cream 6 oz. $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80
Lavendina Body Lotion 4 oz. $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87
Lavendina Body Lotion 6 oz. $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76
Lavendina Shower Gel & Scrub 4 oz. $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38
Lavendina Shower Gel & Scrub 6 oz. $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50
Lavendina Hand Cream 2 oz. $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27
Lavendina Balm 4 oz. $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30
UNITASSUMPTIONS
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
31
-
7/29/2019 Tsunami Bodywork
32/34
M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12
R evenue $27,482 $ 28,856 $30,298 $31,813 $33,404 $35,074 $ 36,828 $38,669 $40,603 $ 42,633 $ 44,765 $47,003
Total Cost of Revenue $4,344 $4,561 $4,790 $5,029 $5,281 $5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430
Gro ss M argin $23,137 $24,294 $25,509 $26,784 $28,123 $29,530 $31,006 $32,556 $34,184 $35,893 $37,688 $39,573
Gross Margin/Revenue 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84%
Expenses
Rent $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
M arketing $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825
Commission $2,748 $2,886 $3,030 $3,181 $3,340 $3,507 $3,683 $3,867 $4,060 $4,263 $4,476 $4,700
Utilities $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Phone/Internet $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Office Supplies $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Other/M isc. $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Depreciation $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33
Payro ll Taxes & Benefits $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313
Total P ersonnel $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083
Total Op. Expenses $34,877 $35,015 $35,159 $35,310 $35,470 $35,637 $35,812 $35,996 $36,189 $36,392 $36,606 $36,829
P rofit Before Int. and Tax ($11,740) ($10,721) ($9,650) ($8,526) ($7,346) ($6,107) ($4,806) ($3,440) ($2,005) ($499) $1,083 $2,743
EBITDA ($11,707) ($10,687) ($9,617) ($8,493) ($7,313) ($6,074) ($4,772) ($3,406) ($1,972) ($466) $1,116 $2,776
Interest Expense $875 $867 $859 $851 $842 $834 $826 $817 $809 $800 $792 $783
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($12,615) ($11,588) ($10,509) ($9,377) ($8,188) ($6,941) ($5,632) ($4,257) ($2,814) ($1,299) $291 $1,960
Net P rofit/Revenue -45.9% -40.2% -34.7% -29.5% -24.5% -19.8% -15.3% -11.0% -6.9% -3.0% 0.6% 4.2%
PROFO
RMAPROFIT&LOSS
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
32
-
7/29/2019 Tsunami Bodywork
33/34
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash R eceived
R evenue $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003
New Current Borrowing $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
Sale of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sale of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003
Expenditures
Expenditures from Operations
Personnel Expenses $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083
B ill Payments $0 $18,591 $18,339 $18,703 $19,087 $19,490 $19,913 $20,358 $20,826 $21,317 $21,834 $22,376
Subtotal Spent on Operations $22,083 $40,674 $40,422 $40,787 $41,170 $41,573 $41,997 $42,442 $42,909 $43,401 $43,917 $44,459
Additional Cash Spent
Current Borrowing Repay. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
L-T Liabilities Princ ipal Repay. $1,389 $1,397 $1,405 $1,413 $1,422 $1,430 $1,438 $1,447 $1,455 $1,464 $1,472 $1,481
Purchase Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
C ash Spent $23,472 $42,071 $41,827 $42,200 $42,592 $43,003 $43,435 $43,888 $44,364 $44,864 $45,389 $45,940
Net Cash Flow $4,009 ($13,216) ($11,529) ($10,387) ($9,188) ($7,929) ($6,607) ($5,219) ($3,762) ($2,231) ($625) $1,063
C ash Balance $88,034 $74,819 $63,290 $52,903 $43,715 $35,787 $29,180 $23,961 $20,199 $17,968 $17,343 $18,406
CASHFLOW
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
33
-
7/29/2019 Tsunami Bodywork
34/34
M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12
Current Assets
C ash $88,034 $74,819 $63,290 $52,903 $43,715 $35,787 $29,180 $23,961 $20,199 $17,968 $17,343 $18,406
Other Current Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Current Assets $108,034 $94,819 $83,290 $72,903 $63,715 $55,787 $49,180 $43,961 $40,199 $37,968 $37,343 $38,406
Long-term A ssets $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Accum. Depreciation $33 $67 $100 $133 $167 $200 $233 $267 $300 $333 $367 $400
Total Long-term Assets $5,967 $5,933 $5,900 $5,867 $5,833 $5,800 $5,767 $5,733 $5,700 $5,667 $5,633 $5,600
Total Assets $114,001 $100,752 $89,190 $78,770 $69,549 $61,587 $54,946 $49,694 $45,899 $43,635 $42,977 $44,006
Current Liabilities
Accounts Payable $17,980 $17,716 $18,068 $18,438 $18,827 $19,235 $19,665 $20,116 $20,590 $21,088 $21,612 $22,162
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current L iabilities $17,980 $17,716 $18,068 $18,438 $18,827 $19,235 $19,665 $20,116 $20,590 $21,088 $21,612 $22,162
Long-term Liabilities $148,611 $147,214 $145,809 $144,396 $142,974 $141,544 $140,106 $138,659 $137,204 $135,741 $134,269 $132,788
Total Liabilities $166,591 $164,930 $163,877 $162,833 $161,801 $160,779 $159,771 $158,775 $157,794 $156,829 $155,880 $154,950
Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975)
Current Retained Earnings ($12,615) ($24,203) ($34,712) ($44,088) ($52,277) ($59,218) ($64,849) ($69,106) ($71,920) ($73,220) ($72,929) ($70,969)
Total Capital ($52,590) ($64,178) ($74,687) ($84,063) ($92,252) ($99,193) ($104,824) ($109,081) ($111,895) ($113,195) ($112,904) ($110,944)
Total Liabilities and Capital $114,001 $100,752 $89,190 $78,770 $69,549 $61,587 $54,946 $49,694 $45,899 $43,635 $42,977 $44,006
BALANCESHEET
_______________________________________________________________________________CONFIDENTIAL Do Not Distribute Without Permission
34