L-1 Visa Business Plan

MISSION

Executive Summary ................................................ 4

Management Biographies. .............................................. 4

Organizational Chart. .................................................... 6

Financial Objectives ..................................................... 7

Start-Up Summary ................................................. 8

Market Analysis Summary ......................................... 9

Branding and Marketing ............................................... 10

SWOT Analysis .............................................................. 11

Personnel Plan .......................................................... 12

Financial Indicators ........................................................ 13

Revenue Forecast ....................................................... 14

Break-Even Analysis .................................................... 15

Projected Profit and Loss ................................................. 16

Projected Cash Flow....................................................... 18

Projected Balance Sheet .................................................. 19

Sensitivity Analysis ..................................................... 20

Year 1 Revenue Forecast. ...................................................... 21

Year 1 Personnel Forecast ...................................................... 21

Year 1 Profit & Loss ...................................................... 22

Year 1 Cash Flow ........................................................... 23

Year 1 Balance Sheet .................................................... 24

Xxx. will be a subsidiary of Yyy; a construction and real estate company located in the state of Veracruz, Mexico. Yyy was founded in Xalapa, Veracruz on the east coast of Mexico where the operation is still headquartered. For nearly a quarter of a century, Yyy has been instrumental in the development of mixed-usage real estates projects that have positively impacted local communities. Some of the projects that the organization has successfully completed include shopping centers, warehouses, office buildings as well as housing and urban development subdivisions. In addition to the aforementioned projects, the organization has also owned a variety of rental properties. Yyy currently has ongoing projects valued at $135 million dollars. The majority of their operations, 80%, are located in the Veracruz-Boca del Rio region where the company is currently engaged in a 1000 house project that is valued at $100 million dollars. Plans call for this project to be completed by no later than 2016.

The vision for establishing a presence in the United States sees the organization providing professional services, precast construction, materials, supplies and a variety of equipment and machinery. The aforementioned list of services will far exceed any currently being offered in Mexico and this will allow the organization to more adequately serve the core market. The goal will be to become entrenched in the market and provide a level of service that protects the business from any would-be competitors that may enter at a later date. Up until this point, Yyy has been forced to outsource these services to vendors and this has drastically reduced the profit margin potential of the organization. Through A Enterprises, the organization will be in position to retain those earnings and in the process, strengthen the market position. The opportunities for revenues and profits in the United States are promising but the founder and staff understands that in order to capitalize on them, an effective marketing approach that communicates value must be created. In addition, resource allocation and management must also be strictly adhered to.

MANAGEMENT BIOGRAPHIES Mr. A – General Director

Mr. A is a trained industrial engineer at the University of the Americas in Puebla, Mexico. His academic qualifications are exceptional and highlighted by training at some of the most prestigious learning institutions in the world including Harvard University, MIT, The Brookings Institution, The London Business School and The Institute of Monterrery Tenologico among others. His professional career began at an early age as he was actively entered into the family business and charged with leasing and managing property. In the 30 years that have passed since that time he has continued to increase his knowledge base in the fields of construction and real estate development. In 1987 Mr. A served as the Director of Public Investment and State Planning for the Governor of the State of Veracruz. In this position he was responsible for scheduling and budgeting investments made by the government. Other public sector experiences include being appointed The Director of Social Assistance where he developed strategies geared towards enhancing the quality of living standards for impoverished persons throughout the region. In the private sector he has participated in a number of ventures that included the planning, directing and execution of a variety of property-based projects including residential and commercial locations. Networking has always been one of his key business assets and he has partnered with investors throughout the globe from countries like Spain and Mexico to create results-oriented property solutions. Fluent in English and Spanish, as the General Manager for A Enterprises, Mr. A will be charged with overseeing the corporate vision of the organization which includes planning, budgeting and managing of the professionals that fall underneath the corporate umbrella.

Mr. B – General Counsel

Mr. B is a graduate of the University of Veracruz Columbus where he majored in law. While working at the Office of Customs in Veracruz, Mr. A participated in a variety of real estate and property transactions including the areas of sales, purchasing and negotiations. His negotiation skills are one of his strongest assets and allowed him structure deals that are mutually beneficial to all parties involved in the transactions that he has been a part of. Equally adept in English and Spanish, his strong, diverse background which includes corporate law will allow him to adequately perform in all of the day to day legal and contractual functions for A Enterprises.

Mr. C – Director of International Trade

Mr. C studied at the National Polytechnic Institute where he earned a degree in International Trade. During his career Mr. Mendoza has held a variety of positions including The Director of International Trade with the Government of the State of Veracruz. In this position he was called upon to attend a variety of events, fairs and expos while championing the vision of the organization that he was representing. Well-spoken in Spanish and English, polished and the consummate professional, during his management of foreign investments he has skillfully managed hundreds of millions of dollars in various branches of the economy including agriculture and manufacturing. His responsibilities with A Enterprises will center primarily on the procurement, purchase and exporting of goods to Mexico.

Mr. D – Architect

Mr. E is an architect who studied his craft at the Universidad Veracruzana. Fluent in English and Spanish, his career spans more than 45 years of includes experience in all phases of property development including planning and construction. Over the course of his career, Mr. Gil has responsibly managed the edification of several residential and commercial properties that have allowed their value to increase exponentially. With A Enterprises, Mr. Gil is called upon to wear a variety of hats which includes the planning and coordinating of projects as well as technical aspects of properties that are being developed and managed.

Mr. E – Architect

Luis Gil Adalid will be a key component of the A Enterprises business and management team. Mr. Leader is an architect with degrees and certifications from the Universidad Veracruzana. Over the course of his career he has held the position of President of the College of Architects at the State of Veracruz and has become recognized as an expert in the area of urban design. With A Enterprises, Mr. Leader will be called upon to undertake urban design projects, budgeting and project management while advising on a variety of machinery and equipment procurement initiatives. An effective communicator capable of speaking both English and Spanish fluently, Mr. Leader will be a key component of the long-term success of the A Enterprises vision.

Mr. F – Director of Supplies

Jose Luis Herce is a mechanical engineering professional with degrees and certifications from The Christopher Columbus School of Engineering located at Veracruz University. Highly-skilled and detail-oriented, Mr. Herce will be charged with managing all logistical functions including material procurement, equipment and machinery acquisition and other day to day engineering functions. Mr. Herce is also fluent in English.

Mr. A

Mr. B

Mr. C

Mr. D

Mr. E

Mr. F

The following table and graphs illustrate the financial goals of the Company during the next five years:

FINANCIAL HIGHLIGHTS ($000)

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Y ear 1

Y ear 2

Y ear 3

Y ear 4

Y ear 5

Revenue 72 76 79 83 88 92 96 101 106 112 117 123 1146 1318 1516 1743 2004

Gross Margin 62 65 68 72 75 79 83 87 92 96 101 106 987 1135 1305 1501 1726

Operating E xpenses 71 72 72 72 72 72 72 72 72 72 72 72 858 928 975 1024 1064

EBIT DA (8) (6) (2) 1 5 8 12 17 21 25 30 35 139 217 341 487 672

Net Profit (11) (8) (5) (2) 2 6 10 14 18 23 28 33 107 188 314 464 652

Gross Margin/R evenue 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86%

E BIT DA/R evenue -11% -7% -3% 1% 5% 9% 13% 16% 20% 23% 26% 29% 12% 16% 22% 28% 34%

Net P rofit/R evenue -15% -11% -6% -2% 2% 6% 10% 14% 17% 20% 24% 27% 9% 14% 21% 27% 33%

Net Cash F low 112 (8) (6) (2) 1 5 9 13 18 22 27 32 222 170 296 443 627

Cash Balance - E nding 112 103 97 95 96 101 110 123 141 163 190 222 222 392 688 1131 1758

PROJECTED OPERATING HIGHLIGHTS BY YEAR ($000)

The following tables and graphs detail the funding the Company needs to bring its vision to reality. The startup funding is projected to come from a variety of sources including lenders and investors with A Mexico being a potential funder.

START-U

P EXPEN

SES &

ASSETS

Expenses Rent Deposits $10,000

Technology $2,000

Permits $5,000 License $3,000

Total Start-up Expenses $20,000

Assets Working Capital $10,000

Equipment $5,000 0 $0

0 $0

0 $0

0 $0 0 $0

Total Start-up Expenses $20,000

0 $0

Total Requirements $20,000

PRODUCTS AND SERVICES A Enterprises, Inc. is an innovative property and real estate development entity with origins in the country of Mexico. The organization will operate under the Yyy umbrella. Yyy has become widely recognized in Mexico as a true market leader by providing a variety of property and service solutions including commercial and residential. A Enterprises, inc. will look to duplicate the successes that have been realized to date by the parent company. Plans call for the organization to mesh the successes that have been realized in Mexico with the presence in the United States. The overarching goal will be to capitalize on the potential opportunities in the United States to drive Yyy to capturing an even higher rate of market share in Mexico. In years past, when Yyy would look to the United States for the procurement of services of any type as they related to the construction industry, other vendors would be the primary source used. With the addition of A Enterprises, Inc. the organization will be given the ability to use the newly formed company. This will save in a variety of areas and ultimately have a positive impact on the overall market, revenue and profit positions of Yyy.

Revenue

$102.2BN Annual Growth 06-11

-12.2% Annual Growth 11-16

6.5% Profit

$1.8BN Wages

$69.8BN Business

28,186

6.3% 7% Remodeling

8.3% Other non-building

construction services

15.2% Construction

management sercies

63.2%

General contracting

Few industries have been more adversely impacted by the economic downturn than commercial construction. The total collapse of the housing market in 2007 and its subsequent strain on the financial sector set the stage for a stagnant commercial construction market from 2008 to 2011. Reduced corporate profits, high unemployment and low consumer spending contributed to the industry’s decline as businesses stopped growing or contracted, which constrained demand for new office space and warehouse construction. At the same time, high unemployment and low consumer spending severely hurt the retail and hospitality sectors. Industry revenue fell at an average annual rate of 12.2% to $102.2 billion over the five years to 2011 as construction of office buildings, hotels, warehouses, retail shops and restaurants significantly decreased.

Commercial construction tends to lag the overall economy by 12 to 24 months (due in part to the length of construction contracts and industry backlog). The industry began to slow in 2008 and experienced steep revenue declines in 2009 and 2010 of 29.6% and 30.2%, respectively. Especially during those years, despite the influx of stimulus dollars, most contractors saw backlogs diminish to unprecedented levels and causing profit to shrink. As the market for construction services declined, firms had to cut profit margins and even bid on projects for a loss, just to keep their crews busy. In 2009 and 2010 profit margins dropped to less than 1.0% from a peak of 5.0% in 2007. Margins will remain low in 2011, at 1.8%, showing modest improvement as demand for new commercial construction is fueled by economic recovery and the price of services inches up.

The industry continues to experience ongoing decline, even as the overall economy began showing signs of recovery in 2010. Industry revenue continued to contract in 2011, decreasing 5.1% to $102.2 billion from the previous year. The industry will begin a slow recovery in 2012. Over the five years to 2016 revenue is projected to increase at an annual average rate of 6.4% to $139.7 billion. Industry growth will be driven by continued improvements in the US economy, with demand for construction projected to steadily rise as businesses begin to expand operations. The industry will experience increased merger and acquisition activity in the next five years, as more established firms compete over market share as the construction markets recover. The number of firms will grow moderately, by 2.6% to total 31,983 in 2016.

A Enterprises, Inc. understands that building brand recognition will be a key factor in its growth and success as a business. To ensure the establishment of brand awareness in the market, the Company will utilize a professional logo and follow a comprehensive advertising and promotional plan. Along with leveraging its competitive advantages, the Company will follow certain keys to success in the pursuit of its objectives.

OBJECTIVES

• Establishing a presence in the United States that strengthens the position in Mexico • Secure suitable funding that will allow the organization to effectively sustain domestic and international operations • Ascend to and maintain a position of recognized market leadership through the delivery of practical solutions and services • Develop additional revenue and profit streams that strengthen the global presence of the parent company

KEYS TO SUCCESS • Establishing a network of key influencers that have the ability to feed opportunities into the A Enterprises, Inc. pipeline • Maintaining the level of service that was established in the Mexican market and bringing it abroad • Developing and maintaining a consistent marketing message and customer service model that exceeds the expectations of the customer base

COMPETITIVE COMPARISON

There are currently no other organizations that are proposing to offer the types of services that A Enterprises, Inc. will be bringing to the United States market.

COMPETITIVE ADVANTAGES

The Company’s advantages as a reliable business will be a key in propelling its growth. Every effort will be made to stand out from competitors for its flexibility to customer needs, understanding of customer’s business objectives, and knowledge of local markets. The operational advantages of A Enterprises, Inc. are as follows:

A Enterprises, Inc. will consider the strengths and weakness inherent to the Company as well as the opportunities and threats presented by the marketplace. These factors, drawn from the previous sections of the plan, serve to summarize the competitive and economic landscape and place the Company within a macro perspective.

Risk Analysis: The real estate and property industries are perhaps the most volatile in the global economy but after years of decline, both are primed for growth over the course of the coming years. These projected growth trends coupled with the level of expertise that will be at the core of the A Enterprises business model greatly mitigate the risks associated with this venture.

MARKETING CAMPAIGN

Marketing for A Enterprises, Inc. will be done in a variety of ways including a website as well as print. Internet efforts will center on the creation on a user friendly website along with social media powered by Facebook.com and Twitter.com. Print will be driven by brochures, sales letters and other pass-a-long print pieces that allow the organization’s marketing message to carry life long after the initial point of contact has been made. While the Internet and print will be important drivers for the marketing message, the face to face impressions have the potential of being the primary marketing and opportunity driving source. With that being said, key members of the A Enterprises, Inc. staff will be highly visible at events and expos that give them the opportunity to champion their brand.

The following table summarizes the Company’s projected financial performance with standardized measurement indicators used to evaluate profitability, leverage, asset turnover, and liquidity. As with any long-range projection, accuracy is based on reasonable es- timates of return on investment and past performance. The Company believes the following numbers are attainable and reasonable. However, actual results will vary.

FINANCIAL INDICATORS Year 1 Year 2 Year 3 Year 4 Year 5

Profitability %'s: Gross Margin 86.11% 86.11% 86.11% 86.11% 86.11% Net Profit Margin 9.37% 14.25% 20.73% 26.60% 32.52% EBITDA to Revenue 12.15% 16.47% 22.48% 27.95% 33.53% Return on Assets 29.13% 35.56% 38.61% 37.21% 34.99%

Return on Equity 100.00% 63.61% 51.56% 43.21% 37.79%

Activity Ratios:

Accounts Payable Turnover 4.17 4.68 4.93 5.20 5.57 Asset Turnover 3.11 2.50 1.86 1.40 1.08

Leverage Ratios:

Debt to Equity 2.43 0.79 0.34 0.16 0.08 Debt to Assets Ratio 70.87% 44.10% 25.11% 13.89% 7.41% Interest Coverage Ratio 6.50 11.49 21.11 37.13 68.41

Liquidity Ratios:

Current Ratio 5.84 10.04 16.14 24.31 35.18 Current Debt to Total Assets Ratio 10.35% 7.41% 5.24% 3.74% 2.68%

Additional Indicators:

Revenue to Equity Ratio 10.67 4.47 2.49 1.62 1.16

The following is a five-year revenue forecast. Direct costs include all costs which can be directly tied to revenue and include “cost of goods.”

REVENUE FORECAST Year 1 Year 2 Year 3 Year 4 Year 5

Total Avg Property Service 32 37 42 48 56

Price

Avg Property Service $36,000.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00

Revenue

Avg Property Service $1,146,033 $1,317,938 $1,515,629 $1,742,973 $2,004,419

Total Revenue $1,146,033 $1,317,938 $1,515,629 $1,742,973 $2,004,419

Direct Materials Cost

Avg Property Service $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00

Direct Cost of Revenue

Avg Property Service $159,171 $183,047 $210,504 $242,080 $278,392

Subtotal Cost of Revenue $159,171 $183,047 $210,504 $242,080 $278,392

1

The table and chart below highlight the accumulated revenue required for the Company to break even.

BREAK-EVEN ANALYSIS Monthly Revenue Break-even $85,109

Assumptions: Average Monthly Revenue $95,503

Average Monthly Variable Cost $13,264

Estimated Monthly Fixed Cost $73,288

1

The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Loss table below, gross margin equals sales minus direct costs. The “bottom line” or profit (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses.

PRO FORMA PROFIT AND LOSS Year 1 Year 2 Year 3 Year 4 Year 5

Revenue $1,146,033 $1,317,938 $1,515,629 $1,742,973 $2,004,419

Subtotal Cost of Revenue $159,171 $183,047 $210,504 $242,080 $278,392

Other Direct Costs $0 $0 $0 $0 $0

Total Cost of Revenue $159,171 $183,047 $210,504 $242,080 $278,392

Gross Margin $986,862 $1,134,891 $1,305,125 $1,500,894 $1,726,028 Gross Margin/Revenue 86.11% 86.11% 86.11% 86.11% 86.11%

Expenses

Rent $60,000 $61,500 $63,038 $64,613 $66,229

Maintenance $1,800 $1,845 $1,891 $1,938 $1,987 Electricity $1,800 $1,845 $1,891 $1,938 $1,987

Telephone $6,000 $6,150 $6,304 $6,461 $6,623

Cable $1,800 $36,000 $48,000 $60,000 $61,500 Gasoline $11,250 $12,000 $12,300 $12,608 $12,923

Travel $60,000 $61,500 $63,038 $64,613 $66,229

Insurance $1,800 $1,845 $1,891 $1,938 $1,987 Housekeeping $7,200 $7,380 $7,565 $7,754 $7,947

Miscellaneous $6,000 $6,150 $6,304 $6,461 $6,623

Depreciation $10,400 $10,400 $10,400 $10,400 $10,400 Payroll Taxes $90,000 $94,125 $98,119 $102,440 $106,947

Total Personnel $600,000 $627,500 $654,125 $682,931 $712,978

Total Operating Expenses $858,050 $928,240 $974,864 $1,024,097 $1,064,359

Profit Before Interest and Taxes $128,812 $206,651 $330,261 $476,797 $661,669

EBITDA $139,212 $217,051 $340,661 $487,197 $672,069 Interest Expense $21,410 $18,891 $16,135 $13,121 $9,824

Taxes Incurred $0 $0 $0 $0 $0

Net Profit $107,402 $187,760 $314,126 $463,676 $651,845 Net Profit/Revenue 9.37% 14.25% 20.73% 26.60% 32.52%

The chart below represents total revenue for five years and illustrates the percentage of revenue allocated to cost of goods (COG), operat- ing expenses and taxes, and interest. The net income piece represents revenue less the aforementioned expenditures.

The following depictions of the Company’s projected cash flow show that the Company expects to maintain sufficient cash balances over the five 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 represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include “non-cash” items and exclude funding and investment illustrations.

PRO FORMA PROFIT AND LOSS Year 1 Year 2 Year 3 Year 4 Year 5

Cash Received Revenue $1,146,033 $1,317,938 $1,515,629 $1,742,973 $2,004,419

New Current Borrowing $0 $0 $0 $0 $0

New Long-term Liabilities (Loan) $250,000 $0 $0 $0 $0

Sale of Other Current Assets $0 $0 $0 $0 $0

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

Subtotal Cash Received $1,396,033 $1,317,938 $1,515,629 $1,742,973 $2,004,419

Expenditures Expenditures from Operations

Cash Spending $600,000 $627,500 $654,125 $682,931 $712,978

Bill Payments $390,053 $491,343 $533,427 $582,074 $625,761 Subtotal Spent on Operations $990,053 $1,118,843 $1,187,552 $1,265,005 $1,338,739

Additional Cash Spent

Current Borrowing Repayment $0 $0 $0 $0 $0 Long-term Liabilities Principal $26,857 $29,377 $32,132 $35,146 $38,443

Purchase Inventory $1,000 $0 $0 $0 $0

Purchase Long-term Assets $156,000 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0

Subtotal Cash Spent $1,173,911 $1,148,220 $1,219,684 $1,300,151 $1,377,183

Net Cash Flow $222,123 $169,718 $295,945 $442,822 $627,237 Cash Balance $222,123 $391,841 $687,786 $1,130,608 $1,757,844

1

PRO FORMA BALANCE SHEET Year 1 Year 2 Year 3 Year 4 Year 5

Assets Current Assets

Cash $222,123 $391,841 $687,786 $1,130,608 $1,757,844

Inventory $1,000 $1,000 $1,000 $1,000 $1,000

Other Current Assets $0 $0 $0 $0 $0

Total Current Assets $223,123 $392,841 $688,786 $1,131,608 $1,758,844

Long-term Assets

Long-term Assets $156,000 $156,000 $156,000 $156,000 $156,000 Accumulated Depreciation $10,400 $20,800 $31,200 $41,600 $52,000 Total Long-term Assets $145,600 $135,200 $124,800 $114,400 $104,000

Other Assets

Other Assets $0 $0 $0 $0 $0 Total Assets $368,723 $528,041 $813,586 $1,246,008 $1,862,844

Liabilities and Capital Current Liabilities

Accounts Payable $38,178 $39,112 $42,664 $46,556 $49,991

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

Subtotal Current Liabilities $38,178 $39,112 $42,664 $46,556 $49,991

Long-term Liabilities $223,143 $193,766 $161,634 $126,488 $88,044 Total Liabilities $261,321 $232,879 $204,298 $173,044 $138,035

Paid-in Capital $0 $0 $0 $0 $0 Retained Earnings $0 $107,402 $295,162 $609,288 $1,072,964 Earnings $107,402 $187,760 $314,126 $463,676 $651,845 Total Capital $107,402 $295,162 $609,288 $1,072,964 $1,724,809 Total Liabilities and Capital $368,723 $528,041 $813,586 $1,246,008 $1,862,844

Net Worth $107,402 $295,162 $609,288 $1,072,964 $1,724,809

SENSITIVITY ANALYSIS The sensitivity analysis below assumes that revenues are 15% higher or lower than figures projected earlier in this business plan.

BEST CASE SCENARIO (REVENUE INCREASES BY 15%) Year 1 Year 2 Year 3 Year 4 Year 5

Revenue $1,317,938 $1,515,629 $1,742,973 $2,004,419 $2,305,082 Cost of Goods $183,047 $210,504 $242,080 $278,392 $320,150

Gross Margin $1,134,891 $1,305,125 $1,500,894 $1,726,028 $1,984,932 Gross Margin/Revenue 86.11% 86.11% 86.11% 86.11% 86.11%

Operating Expenses $858,050 $928,240 $974,864 $1,024,097 $1,064,359

Net Profit $255,431 $357,994 $509,894 $688,810 $910,749 Cash Flow $370,152 $339,952 $491,714 $667,956 $886,141

Cash Balance $370,152 $710,104 $1,201,818 $1,869,773 $2,755,914

Net Profit/Revenue 19.38% 23.62% 29.25% 34.36% 39.51%

WORST CASE SCENARIO (REVENUE DECREASES BY 15%) Year 1 Year 2 Year 3 Year 4 Year 5

Revenue $996,551 $1,146,033 $1,317,938 $1,515,629 $1,742,973 Cost of Goods $138,410 $159,171 $183,047 $210,504 $242,080

Gross Margin $858,141 $986,862 $1,134,891 $1,305,125 $1,500,894 Gross Margin/Revenue 86.11% 86.11% 86.11% 86.11% 86.11%

Operating Expenses $858,050 $928,240 $974,864 $1,024,097 $1,064,359

Net Profit ($21,319) $39,731 $143,892 $267,907 $426,711 Cash Flow $93,401 $21,689 $125,711 $247,053 $402,102 Cash Balance $93,401 $115,091 $240,802 $487,855 $889,957

Net Profit/Revenue -2.14% 3.47% 10.92% 17.68% 24.48%

APPENDIX

YEAR 1 PERSONNEL FORECAST Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

P ersonnel C ount General Director 1 1 1 1 1 1 1 1 1 1 1 1

General C ounsel 1 1 1 1 1 1 1 1 1 1 1 1

Direc tor of International T ra 1 1 1 1 1 1 1 1 1 1 1 1

Architect 2 2 2 2 2 2 2 2 2 2 2 2

T otal P ers on n el 7 7 7 7 7 7 7 7 7 7 7 7

P ersonnel Wage

General Director $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500

General C ounsel $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250

Direc tor of International T ra $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500

Architect $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

P ersonnel C osts

General Director $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500

General C ounsel $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250 $8,250

Direc tor of International T ra $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500

Architect $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500

T otal P ayroll $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

YEAR 1 REVENUE FORECAST Month

Price

$3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00 $3 ,000 00

Revenue

$75, 00

$87,51

$9 ,487

$10 ,377

$111, 9

S ubtotal C os t of R evenue

$11,57

$12,7 3

$1 ,289

YEAR 1 PROFIT & LOSS Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Revenue $721000 $751600 $791380 $831349 $871516 $911892 $961487 $1011311 $1061377 $1111696 $1171280 $1231144

S ubtotal C ost of Revenue $101000 $101500 $111025 $111576 $121155 $121763 $131401 $141071 $141775 $151513 $161289 $171103

Other Direct C osts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T otal C ost of Revenue $101000 $101500 $111025 $111576 $121155 $121763 $131401 $141071 $141775 $151513 $161289 $171103

Gross Margin $621000 $651100 $681355 $711773 $751361 $791129 $831086 $871240 $911602 $961182 $1001991 $1061041

Gross Margin/R evenue 86.11% 86.11% 86.11% 86.11% 86.11% 86.11% 86.11% 86.11% 86.11% 86.11% 86.11% 86.11%

Expenses

Rent $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000

Maintenance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

E lectricity $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

T elephone $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

C able $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Gasoline $250 $11000 $11000 $11000 $11000 $11000 $11000 $11000 $11000 $11000 $11000 $11000

T ravel $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000 $51000

Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Housekeeping $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600

Miscellaneous $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Depreciation $867 $867 $867 $867 $867 $867 $867 $867 $867 $867 $867 $867

Payroll T axes $71500 $71500 $71500 $71500 $71500 $71500 $71500 $71500 $71500 $71500 $71500 $71500

T otal Personnel $501000 $501000 $501000 $501000 $501000 $501000 $501000 $501000 $501000 $501000 $501000 $501000

T otal O p eratin g E xp en s es $70,817 $71,567 $71,567 $71,567 $71,567 $71,567 $71,567 $71,567 $71,567 $71,567 $71,567 $71,567

Profit Before Interest and T axes ($81817} ($61467} ($31212} $206 $31795 $71563 $111519 $151674 $201036 $241616 $291425 $341474

Interest E xpense $11875 $11859 $11843 $11826 $11810 $11793 $11777 $11760 $11743 $11726 $11708 $11691

T axes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($101692} ($81326} ($51054} ($11620} $11985 $51770 $91743 $131914 $181293 $221890 $271716 $321783

Net P rofit/R evenue -14.85% -11.01% -6.37% -1.94% 2.27% 6.28% 10.10% 13.73% 17.20% 20.49% 23.63% 26.62%

YEAR 1 CASH FLOW Additional Cash Received 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 $72,000 $75,600 $79,380 $83,349 $87,516 $91,892 $96,487 $101,311 $106,377 $111,696 $117,280 $123,144

New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New L ong-term L iabilities L oan $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

S ale of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

S ale of L ong-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New lnvestment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

S ubtotal Cash Received $322,000 $75,600 $79,380 $83,349 $87,516 $91,892 $96,487 $101,311 $106,377 $111,696 $117,280 $123,144

Cash S pending $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

B ill Payments $1,061 $31,866 $33,076 $33,586 $34,121 $34,685 $35,277 $35,899 $36,554 $37,241 $37,964 $38,724

Additional Cash S pent

Current Borrowing Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

L ong-term L iabilities Principal Repayment $2,147 $2,163 $2,180 $2,196 $2,212 $2,229 $2,246 $2,263 $2,280 $2,297 $2,314 $2,331

Purchase lnventory $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase L ong-term Assets $156,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash S pent $210,208 $84,030 $85,255 $85,781 $86,334 $86,914 $87,523 $88,162 $88,833 $89,538 $90,278 $91,055

Net Cash F low $111,792 $8,430 $5,875 $2,432 $1,183 $4,979 $8,964 $13,149 $17,544 $22,158 $27,002 $32,089

Cash Balance $111,792 $103,362 $97,487 $95,054 $96,237 $101,216 $110,180 $123,330 $140,873 $163,031 $190,033 $222,123

YEAR 1 BALANCE SHEET Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Current Assets Cash $111,792 $103,362 $97,487 $95,054 $96,237 $101,216 $110,180 $123,330 $140,873 $163,031 $190,033 $222,123

Inventory $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T otal Current Assets $112,792 $104,362 $98,487 $96,054 $97,237 $102,216 $111,180 $124,330 $141,873 $164,031 $191,033 $223,123

l ong-term Assets $156,000 $156,000 $156,000 $156,000 $156,000 $156,000 $156,000 $156,000 $156,000 $156,000 $156,000 $156,000

Accumulated Depreciation $867 $1,733 $2,600 $3,467 $4,333 $5,200 $6,067 $6,933 $7,800 $8,667 $9,533 $10,400

T otal l ong-term Assets $155,133 $154,267 $153,400 $152,533 $151,667 $150,800 $149,933 $149,067 $148,200 $147,333 $146,467 $145,600

Other Assets

Other Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T otal Assets $267,925 $258,629 $251,887 $248,588 $248,904 $253,016 $261,114 $273,396 $290,073 $311,364 $337,500 $368,723

Current l iabilities

Accounts Payable $30,764 $31,957 $32,449 $32,966 $33,509 $34,081 $34,682 $35,313 $35,977 $36,674 $37,407 $38,178

Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current l iabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

S ubtotal Current l iabilities $30,764 $31,957 $32,449 $32,966 $33,509 $34,081 $34,682 $35,313 $35,977 $36,674 $37,407 $38,178

l ong-term l iabilities $247,853 $245,689 $243,510 $241,314 $239,101 $236,872 $234,627 $232,364 $230,085 $227,788 $225,474 $223,143

T otal l iabilities $278,617 $277,646 $275,959 $274,280 $272,611 $270,953 $269,308 $267,677 $266,061 $264,462 $262,881 $261,321

Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Retained E arnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

E arnings ($10,692) ($19,017) ($24,072) ($25,692) ($23,707) ($17,937) ($8,195) $5,719 $24,012 $46,902 $74,618 $107,402

T otal Capital ($10,692) ($19,017) ($24,072) ($25,692) ($23,707) ($17,937) ($8,195) $5,719 $24,012 $46,902 $74,618 $107,402

T otal l iabilities and Capital $267,925 $258,629 $251,887 $248,588 $248,904 $253,016 $261,114 $273,396 $290,073 $311,364 $337,500 $368,723

Net Worth ($10,692) ($19,017) ($24,072) ($25,692) ($23,707) ($17,937) ($8,195) $5,719 $24,012 $46,902 $74,618 $107,402