organic food store business plan

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Table of Contents

1.0 Executive Summary...............................................................................................................................1Chart: Highlights..................................................................................................................................1

1.1 Objectives..........................................................................................................................................11.2 Mission...............................................................................................................................................2

2.0 Company Summary...............................................................................................................................22.1 Company Ownership.........................................................................................................................22.2 Start-up Summary..............................................................................................................................2

Chart: Start-up......................................................................................................................................2Table: Start-up Funding.......................................................................................................................3Table: Start-up.....................................................................................................................................4

3.0 Products..................................................................................................................................................44.0 Market Analysis Summary....................................................................................................................4

4.1 Market Segmentation.........................................................................................................................5Table: Market Analysis........................................................................................................................5Chart: Market Analysis (Pie)...............................................................................................................5

5.0 Strategy and Implementation Summary.................................................................................................65.1 Competitive Edge...............................................................................................................................65.2 Sales Strategy.....................................................................................................................................6

5.2.1 Sales Forecast..............................................................................................................................6Table: Sales Forecast.......................................................................................................................6Chart: Sales Monthly.......................................................................................................................7Chart: Sales by Year........................................................................................................................7

6.0 Management Summary..........................................................................................................................86.1 Management Team.............................................................................................................................86.2 Personnel Plan....................................................................................................................................8

Table: Personnel...................................................................................................................................8

7.0 Financial Plan.........................................................................................................................................87.1 Break-even Analysis..........................................................................................................................9

Table: Break-even Analysis.................................................................................................................9Chart: Break-even Analysis.................................................................................................................9

7.2 Projected Profit and Loss.................................................................................................................10Table: Profit and Loss........................................................................................................................10Chart: Profit Monthly.........................................................................................................................11Chart: Profit Yearly............................................................................................................................11Chart: Gross Margin Monthly............................................................................................................12Chart: Gross Margin Yearly...............................................................................................................12

7.3 Projected Cash Flow........................................................................................................................13Table: Cash Flow...............................................................................................................................13Chart: Cash.........................................................................................................................................14

7.4 Projected Balance Sheet...................................................................................................................15Table: Balance Sheet..........................................................................................................................15

7.5 Business Ratios................................................................................................................................15Table: Ratios......................................................................................................................................16

Table: Sales Forecast...................................................................................................................................1

Page 1

Table of Contents

......................................................................................................................................................................1Table: Personnel...........................................................................................................................................2

......................................................................................................................................................................2Table: General Assumptions........................................................................................................................3

......................................................................................................................................................................3Table: Profit and Loss..................................................................................................................................4

......................................................................................................................................................................4Table: Cash Flow.........................................................................................................................................5

Table: Balance Sheet....................................................................................................................................6

Page 2

Last Frontier Market

1.0 Executive Summary

Last Frontier Market will offer customers organic and locally grown produce, chemical- and preservative-free groceries, cruelty-free body care and eco-household products. All of our products are healthy alternatives to the products available at conventional grocery chains. Located in the heart of the growing Willow Creek section of Richmond, the market will serve a community of 25,000 residents. The creation of the market is in response to the growing demand in the community for a local natural food store.

The Last Frontier Market will have the advantage of the foot traffic in the Willow Creek retail area which is the home of the Willow Creek Arts and Craft Fair, as well as the home of numerous art and craft shops. The area has a reputation of supporting progressive causes and businesses. The market will be a comfortable place to meet and shop in the community.

In addition, the market will also be the most convenient in the area. The closest competing natural food store to the Willow Creek area is a twenty minute drive.

The Last Frontier Market will give back to the community. We will participate in community projects and host fund-raisers for local community services.

Chart: Highlights

Sales

Gross Margin

Net Profit

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Year 1 Year 2 Year 3

Highlights

1.1 Objectives

Provide our customers with the freshest, organically grown fruits and vegetables. Offer foods without artificial colors, flavors, or additives. Sell earth-friendly cleansers; pure, natural supplements; and gentle, cruelty-free body care

products. Support organic farms that keep our earth and water pure.

Page 1


1.2 Mission

The Last Frontier Market is committed to providing the highest quality, fresh and natural food, health and wellness products. Our staff are friendly, eager to serve and ready to educate.

2.0 Company Summary

Last Frontier Market is a vegetarian health food store located in the heart of the Willow Creek section of Richmond. The community of 25,000 residents is made up of students attending the State University and families attracted to the new home construction in the area.

Co-owners, Josh Wingard and Mary Stevens, are opening the Last Frontier Market to capitalize on the growing demand in the community for a local food store that offers organic and locally grown produce, chemical and preservative free groceries, cruelty-free body care and eco-household products.

2.1 Company Ownership

Last Frontier Market is owned by Josh Wingard and Mary Stevens.

2.2 Start-up Summary

The start-up cost of the Last Frontier Market will consist primarily of inventory and display equipment. Josh Wingard and Mary Stevens will invest $80,000. They will also secure a $50,000 SBA loan.

Chart: Start-up

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Expenses Assets Investment Loans

Start-up

Page 2


Table: Start-up Funding

Start-up FundingStart-up Expenses to Fund $77,800 Start-up Assets to Fund $52,200 Total Funding Required $130,000

Assets Non-cash Assets from Start-up $10,000 Cash Requirements from Start-up $42,200 Additional Cash Raised $0 Cash Balance on Starting Date $42,200 Total Assets $52,200

Liabilities and Capital

LiabilitiesCurrent Borrowing $0 Long-term Liabilities $50,000 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $50,000

Capital

Planned InvestmentJosh Wingard and Mary Stevens $80,000 Other $0 Additional Investment Requirement $0 Total Planned Investment $80,000

Loss at Start-up (Start-up Expenses) ($77,800)Total Capital $2,200

Total Capital and Liabilities $52,200

Total Funding $130,000

Page 3


Table: Start-up

Start-up

Requirements

Start-up ExpensesLegal $1,000 Insurance $0 Rent $1,800 Start-Up Inventory $40,000 Display Set-Up $5,000 Cash Reserve for Hiring $30,000 Advertising $0 Other $0 Total Start-up Expenses $77,800

Start-up AssetsCash Required $42,200 Other Current Assets $0 Long-term Assets $10,000 Total Assets $52,200

Total Requirements $130,000

3.0 Products

The Last Frontier Market will offer customers organic and locally grown produce, chemical- and preservative-free groceries, cruelty-free body care and eco-household products. The products are:

Free of artificial preservatives. Free of artificial colors. Free of chemical additives. Organically grown, whenever possible. The least processed or unadulterated version available. Non-irradiated. Cruelty free.

4.0 Market Analysis Summary

In the past ten years, the Willow Creek section of Richmond has grown tremendously. The growing student community combined with the new families in the area are a perfect customer support base for the Last Frontier Market.

Currently, the area is served by two major supermarkets that do not carry any of the product lines available at the Last Frontier Market. The closest natural food store is a twenty minute drive.

Josh Wingard and Mary Stevens believe that a local natural food store in the Willow Creek area would be competitive and offer customers a product selection that will assure repeat business.

Page 4


4.1 Market Segmentation

The Last Frontier Market will focus two significant customer groups:

Families: Many of the young families moving into the Willow Creek area are doing so because of its unique community environment. The community is home to a number of artists and craft people that operate the Willow Creek Craft Fair. This creates a festive environment in the Willow Creek central commercial/retail area that attract shoppers each weekend. Its close proximity to the university also attracts young families where one or both parents are students or employees of the university. These families are a strong customer base for the Last Frontier Market.

Students: A significant number of students prefer to shop at a natural food store. The Last Frontier Market will be within walking distance for most area residents. Our location will make our store a convenient place to shop on the way home from classes.

Table: Market Analysis

Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGRFamily Members 15% 9,000 10,350 11,903 13,688 15,741 15.00% Students 10% 16,000 17,600 19,360 21,296 23,426 10.00% Other 0% 0 0 0 0 0 0.00% Total 11.88% 25,000 27,950 31,263 34,984 39,167 11.88%

Chart: Market Analysis (Pie)

Family Members

Students

Other

Market Analysis (Pie)

Page 5


5.0 Strategy and Implementation Summary

The Last Frontier Market will promote the store opening. We will have live music and food in the store's parking lot for the opening weekend. The Willow Creek Craft Fair is adjacent to our store and we should have excellent foot traffic for our opening.

We will advertise in the university daily student newspaper as well as the local area advertising flyer. In the advertisements for the market opening, we will have a 20% off coupon for purchases over twenty dollars. We will continue this discount for the first month of operation.

The Last Frontier Market will give back to the community. We will participate in community projects like the area's food bank and community programs for children. The Last Frontier Market will also hosts a number of community events, such as charity pancake brunches, dog washes benefiting local humane societies and benefit barbecues.

5.1 Competitive Edge

The Last Frontier Market's competitive edge is:

Location: The Last Frontier Market is located located in the heart of the Willow Creek section of Richmond. The foot traffic in the Willow Creek retail area is very strong. The closest natural food store to the Willow Creek area is a twenty minute drive.

Community Support: The Last Frontier Market is a community market that will give back to the community. We will participate in community projects like the area's food bank and community programs for children. The Last Frontier Market will also host a number of community events, such as charity pancake brunches, dog washes benefiting local humane societies and benefit barbecues.

5.2 Sales Strategy

The sales strategy of the Last Frontier Market is simple. The key to customer satisfaction is a community-friendly store that is easy to navigate and has knowledgeable people to help customers find what they want quickly. Customers will linger in the store, reading notices on the community bulletin board or speaking with friends.

5.2.1 Sales Forecast

The following is the Last Frontier Market's sales forecast for three years.

Table: Sales Forecast

Sales Forecast Year 1 Year 2 Year 3

SalesSales $423,000 $470,000 $520,000 Others $0 $0 $0 Total Sales $423,000 $470,000 $520,000

Direct Cost of Sales Year 1 Year 2 Year 3Sales $128,220 $150,000 $175,000 Others $0 $0 $0 Subtotal Direct Cost of Sales $128,220 $150,000 $175,000

Page 6


Chart: Sales Monthly

Sales

Others

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Month 1 Month 2

Month 3 Month 4

Month 5 Month 6

Month 7 Month 8

Month 9 Month 10

Month 11 Month 12

Sales Monthly

Chart: Sales by Year

Sales

Others

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Sales by Year

Page 7


6.0 Management Summary

Co-owners, Josh Wingard and Mary Stevens, have fifteen years of experience working in natural food stores.

Mary Stevens was one of the founding members of the Mason Peak Natural Grocery, 4th and Tyler. The grocery was established in 1992 by the non-profit NEDCO, the Neighborhood Economic Development Corporation, and a number of concerned neighbors who wished to save the historic Mason Peak Market from destruction. Mary started as a cashier and advanced to the position of store manager in 1996. The grocery has grown into a community fixture under her management.

Josh Wingard ran the university's now defunct Natural Food Collective for three years before the program was defunded. The small on-campus store provide natural food products to student customers. Sales increased by 20% each year under his leadership. Unfortunately, the state budget shortfall impacted the continued funding of the program. Prior to this position, Josh worked at Sunburst Natural Foods for four years. His principle responsibilities were product ordering and stocking.

6.1 Management Team

Josh Wingard and Mary Stevens were be the management team for the Last Frontier Market. Mary will be responsible for staffing and daily operations. Josh will be responsible for product ordering, stocking and bookkeeping.

6.2 Personnel Plan

Besides Josh Wingard and Mary Stevens, the last Frontier Market will have a staff of five:

Three cashiers. Two produce staff.

Table: Personnel

Personnel Plan Year 1 Year 2 Year 3

Mary Stevens $33,600 $36,000 $39,000 Josh Wingard $33,600 $36,000 $39,000 Cashiers $84,000 $95,000 $104,000 Produce Staff $48,000 $51,000 $54,000 Total People 7 7 7

Total Payroll $199,200 $218,000 $236,000

7.0 Financial Plan

The following is the Financial Plan for the Last Frontier Market.

Page 8


7.1 Break-even Analysis

The monthly break-even point is $32,277.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $32,277

Assumptions:Average Percent Variable Cost 30% Estimated Monthly Fixed Cost $22,493

Chart: Break-even Analysis

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Break-even Analysis

Page 9


7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

Table: Profit and Loss

Pro Forma Profit and Loss Year 1 Year 2 Year 3

Sales $423,000 $470,000 $520,000 Direct Cost of Sales $128,220 $150,000 $175,000 Other Production Expenses $0 $0 $0 Total Cost of Sales $128,220 $150,000 $175,000

Gross Margin $294,780 $320,000 $345,000 Gross Margin % 69.69% 68.09% 66.35%

ExpensesPayroll $199,200 $218,000 $236,000 Sales and Marketing and Other Expenses $7,000 $10,000 $13,000 Depreciation $1,440 $1,440 $1,440 Leased Equipment $0 $0 $0 Utilities $4,800 $4,800 $4,800 Insurance $6,000 $6,000 $6,000 Rent $21,600 $21,600 $21,600 Payroll Taxes $29,880 $32,700 $35,400 Other $0 $0 $0

Total Operating Expenses $269,920 $294,540 $318,240

Profit Before Interest and Taxes $24,860 $25,460 $26,760 EBITDA $26,300 $26,900 $28,200 Interest Expense $4,459 $3,501 $2,501 Taxes Incurred $6,120 $6,588 $7,278

Net Profit $14,281 $15,372 $16,981 Net Profit/Sales 3.38% 3.27% 3.27%

Page 10


Chart: Profit Monthly

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Month 5 Month 6

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Profit Monthly

Chart: Profit Yearly

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Page 11


Chart: Gross Margin Monthly

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Month 5 Month 6

Month 7 Month 8

Month 9 Month 10

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Gross Margin Monthly

Chart: Gross Margin Yearly

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Gross Margin Yearly

Page 12


7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

Table: Cash Flow

Pro Forma Cash Flow Year 1 Year 2 Year 3

Cash Received

Cash from OperationsCash Sales $105,750 $117,500 $130,000 Cash from Receivables $251,575 $345,203 $382,237 Subtotal Cash from Operations $357,325 $462,703 $512,237

Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $4,000 $0 $0 Subtotal Cash Received $361,325 $462,703 $512,237

Expenditures Year 1 Year 2 Year 3

Expenditures from OperationsCash Spending $199,200 $218,000 $236,000 Bill Payments $186,715 $237,222 $263,081 Subtotal Spent on Operations $385,915 $455,222 $499,081

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $9,996 $9,996 $9,996 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $395,911 $465,218 $509,077

Net Cash Flow ($34,586) ($2,515) $3,160 Cash Balance $7,614 $5,099 $8,259

Page 13


Chart: Cash

Net Cash Flow

Cash Balance$0

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onth

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7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Table: Balance Sheet

Pro Forma Balance Sheet Year 1 Year 2 Year 3

Assets

Current AssetsCash $7,614 $5,099 $8,259 Accounts Receivable $65,675 $72,972 $80,735 Other Current Assets $0 $0 $0 Total Current Assets $73,289 $78,071 $88,994

Long-term AssetsLong-term Assets $10,000 $10,000 $10,000 Accumulated Depreciation $1,440 $2,880 $4,320 Total Long-term Assets $8,560 $7,120 $5,680 Total Assets $81,849 $85,191 $94,674

Liabilities and Capital Year 1 Year 2 Year 3

Current LiabilitiesAccounts Payable $21,364 $19,331 $21,828 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $21,364 $19,331 $21,828

Long-term Liabilities $40,004 $30,008 $20,012 Total Liabilities $61,368 $49,339 $41,840

Paid-in Capital $84,000 $84,000 $84,000 Retained Earnings ($77,800) ($63,519) ($48,147)Earnings $14,281 $15,372 $16,981 Total Capital $20,481 $35,853 $52,834 Total Liabilities and Capital $81,849 $85,191 $94,674

Net Worth $20,481 $35,853 $52,834

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5149, Groceries and Related Products, are shown for comparison.

Page 15


Table: Ratios

Ratio Analysis Year 1 Year 2 Year 3 Industry Profile

Sales Growth n.a. 11.11% 10.64% 4.60%

Percent of Total AssetsAccounts Receivable 80.24% 85.66% 85.28% 33.30% Other Current Assets 0.00% 0.00% 0.00% 20.90% Total Current Assets 89.54% 91.64% 94.00% 80.20% Long-term Assets 10.46% 8.36% 6.00% 19.80% Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 26.10% 22.69% 23.06% 45.20% Long-term Liabilities 48.88% 35.22% 21.14% 10.00% Total Liabilities 74.98% 57.92% 44.19% 55.20% Net Worth 25.02% 42.08% 55.81% 44.80%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00% Gross Margin 69.69% 68.09% 66.35% 44.10% Selling, General & Administrative Expenses 66.31% 64.81% 63.08% 26.70% Advertising Expenses 1.65% 2.13% 2.50% 0.70% Profit Before Interest and Taxes 5.88% 5.42% 5.15% 0.80%

Main RatiosCurrent 3.43 4.04 4.08 1.69 Quick 3.43 4.04 4.08 1.01 Total Debt to Total Assets 74.98% 57.92% 44.19% 55.20% Pre-tax Return on Net Worth 99.61% 61.25% 45.92% 3.60% Pre-tax Return on Assets 24.93% 25.78% 25.62% 8.00%

Additional Ratios Year 1 Year 2 Year 3Net Profit Margin 3.38% 3.27% 3.27% n.aReturn on Equity 69.73% 42.87% 32.14% n.a

Activity RatiosAccounts Receivable Turnover 4.83 4.83 4.83 n.aCollection Days 57 72 72 n.aAccounts Payable Turnover 9.74 12.17 12.17 n.aPayment Days 27 32 28 n.aTotal Asset Turnover 5.17 5.52 5.49 n.a

Debt RatiosDebt to Net Worth 3.00 1.38 0.79 n.aCurrent Liab. to Liab. 0.35 0.39 0.52 n.a

Liquidity RatiosNet Working Capital $51,925 $58,741 $67,166 n.aInterest Coverage 5.58 7.27 10.70 n.a

Additional RatiosAssets to Sales 0.19 0.18 0.18 n.aCurrent Debt/Total Assets 26% 23% 23% n.aAcid Test 0.36 0.26 0.38 n.aSales/Net Worth 20.65 13.11 9.84 n.aDividend Payout 0.00 0.00 0.00 n.a

Page 16

Appendix

Table: Sales Forecast

Sales Forecast

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

Sales

Sales 0% $26,000 $29,000 $30,000 $34,000 $36,000 $38,000 $34,000 $33,000 $35,000 $39,000 $43,000 $46,000 Others 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Sales $26,000 $29,000 $30,000 $34,000 $36,000 $38,000 $34,000 $33,000 $35,000 $39,000 $43,000 $46,000

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales $9,000 $9,500 $9,600 $10,200 $10,500 $11,300 $10,000 $10,000 $11,000 $12,000 $12,120 $13,000

Others $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $9,000 $9,500 $9,600 $10,200 $10,500 $11,300 $10,000 $10,000 $11,000 $12,000 $12,120 $13,000

Page 1

Appendix

Table: Personnel

Personnel Plan


Mary Stevens 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 Josh Wingard 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 Cashiers 0% $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 Produce Staff 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Total People 7 7 7 7 7 7 7 7 7 7 7 7

Total Payroll $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600

Page 2

Appendix

Table: General Assumptions

General Assumptions


Plan Month 1 2 3 4 5 6 7 8 9 10 11 12

Current 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% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0

Page 3

Appendix

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $26,000 $29,000 $30,000 $34,000 $36,000 $38,000 $34,000 $33,000 $35,000 $39,000 $43,000 $46,000

Direct Cost of Sales $9,000 $9,500 $9,600 $10,200 $10,500 $11,300 $10,000 $10,000 $11,000 $12,000 $12,120 $13,000

Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $9,000 $9,500 $9,600 $10,200 $10,500 $11,300 $10,000 $10,000 $11,000 $12,000 $12,120 $13,000

Gross Margin $17,000 $19,500 $20,400 $23,800 $25,500 $26,700 $24,000 $23,000 $24,000 $27,000 $30,880 $33,000

Gross Margin % 65.38% 67.24% 68.00% 70.00% 70.83% 70.26% 70.59% 69.70% 68.57% 69.23% 71.81% 71.74%

Expenses

Payroll $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600

Sales and Marketing and Other Expenses

$1,000 $1,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Depreciation $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120

Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Rent $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800

Payroll Taxes 15% $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 $2,490 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $22,910 $22,910 $22,410 $22,410 $22,410 $22,410 $22,410 $22,410 $22,410 $22,410 $22,410 $22,410

Profit Before Interest and Taxes ($5,910) ($3,410) ($2,010) $1,390 $3,090 $4,290 $1,590 $590 $1,590 $4,590 $8,470 $10,590

EBITDA ($5,790) ($3,290) ($1,890) $1,510 $3,210 $4,410 $1,710 $710 $1,710 $4,710 $8,590 $10,710

Interest Expense $410 $403 $396 $389 $382 $375 $368 $361 $354 $347 $340 $333

Taxes Incurred ($1,896) ($1,144) ($722) $300 $812 $1,174 $367 $69 $371 $1,273 $2,439 $3,077

Net Profit ($4,424) ($2,669) ($1,684) $701 $1,896 $2,740 $855 $160 $865 $2,970 $5,691 $7,180

Net Profit/Sales -17.01% -9.20% -5.61% 2.06% 5.27% 7.21% 2.52% 0.49% 2.47% 7.62% 13.23% 15.61%

Page 4

Appendix

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $6,500 $7,250 $7,500 $8,500 $9,000 $9,500 $8,500 $8,250 $8,750 $9,750 $10,750 $11,500

Cash from Receivables $0 $650 $19,575 $21,775 $22,600 $25,550 $27,050 $28,400 $25,475 $24,800 $26,350 $29,350

Subtotal Cash from Operations $6,500 $7,900 $27,075 $30,275 $31,600 $35,050 $35,550 $36,650 $34,225 $34,550 $37,100 $40,850

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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

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

Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $4,000 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received $6,500 $7,900 $27,075 $30,275 $35,600 $35,050 $35,550 $36,650 $34,225 $34,550 $37,100 $40,850

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Expenditures from Operations

Cash Spending $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600

Bill Payments $457 $13,745 $14,949 $15,018 $16,606 $17,423 $18,469 $16,414 $16,163 $17,478 $19,353 $20,640

Subtotal Spent on Operations $17,057 $30,345 $31,549 $31,618 $33,206 $34,023 $35,069 $33,014 $32,763 $34,078 $35,953 $37,240

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833

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

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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

Subtotal Cash Spent $17,890 $31,178 $32,382 $32,451 $34,039 $34,856 $35,902 $33,847 $33,596 $34,911 $36,786 $38,073

Net Cash Flow ($11,390) ($23,278) ($5,307) ($2,176) $1,561 $194 ($352) $2,803 $629 ($361) $314 $2,777

Cash Balance $30,810 $7,532 $2,224 $49 $1,609 $1,804 $1,452 $4,254 $4,883 $4,522 $4,836 $7,614

Page 5

Appendix

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Current Assets

Cash $42,200 $30,810 $7,532 $2,224 $49 $1,609 $1,804 $1,452 $4,254 $4,883 $4,522 $4,836 $7,614 Accounts Receivable $0 $19,500 $40,600 $43,525 $47,250 $51,650 $54,600 $53,050 $49,400 $50,175 $54,625 $60,525 $65,675 Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Current Assets $42,200 $50,310 $48,132 $45,749 $47,299 $53,259 $56,404 $54,502 $53,654 $55,058 $59,147 $65,361 $73,289

Long-term Assets

Long-term Assets $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Accumulated Depreciation $0 $120 $240 $360 $480 $600 $720 $840 $960 $1,080 $1,200 $1,320 $1,440 Total Long-term Assets $10,000 $9,880 $9,760 $9,640 $9,520 $9,400 $9,280 $9,160 $9,040 $8,920 $8,800 $8,680 $8,560 Total Assets $52,200 $60,190 $57,892 $55,389 $56,819 $62,659 $65,684 $63,662 $62,694 $63,978 $67,947 $74,041 $81,849

Liabilities and Capital 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 Liabilities

Accounts Payable $0 $13,247 $14,451 $14,465 $16,027 $16,805 $17,922 $15,877 $15,582 $16,834 $18,666 $19,903 $21,364 Current Borrowing $0 $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 $0 Subtotal Current Liabilities $0 $13,247 $14,451 $14,465 $16,027 $16,805 $17,922 $15,877 $15,582 $16,834 $18,666 $19,903 $21,364

Long-term Liabilities $50,000 $49,167 $48,334 $47,501 $46,668 $45,835 $45,002 $44,169 $43,336 $42,503 $41,670 $40,837 $40,004 Total Liabilities $50,000 $62,414 $62,785 $61,966 $62,695 $62,640 $62,924 $60,046 $58,918 $59,337 $60,336 $60,740 $61,368

Paid-in Capital $80,000 $80,000 $80,000 $80,000 $80,000 $84,000 $84,000 $84,000 $84,000 $84,000 $84,000 $84,000 $84,000 Retained Earnings ($77,800) ($77,800) ($77,800) ($77,800) ($77,800) ($77,800) ($77,800) ($77,800) ($77,800) ($77,800) ($77,800) ($77,800) ($77,800)Earnings $0 ($4,424) ($7,093) ($8,777) ($8,076) ($6,180) ($3,440) ($2,585) ($2,424) ($1,559) $1,411 $7,101 $14,281 Total Capital $2,200 ($2,224) ($4,893) ($6,577) ($5,876) $20 $2,760 $3,615 $3,776 $4,641 $7,611 $13,301 $20,481 Total Liabilities and Capital $52,200 $60,190 $57,892 $55,389 $56,819 $62,659 $65,684 $63,662 $62,694 $63,978 $67,947 $74,041 $81,849

Net Worth $2,200 ($2,224) ($4,893) ($6,577) ($5,876) $20 $2,760 $3,615 $3,776 $4,641 $7,611 $13,301 $20,481

Page 6

organic food store business plan

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