vml properties llc
DESCRIPTION
Business Plan 2015TRANSCRIPT
C O N F I D E N T I A L
VML Properties LLCM A K I N G T H E D R E A M O F H O M E O W N E R S H I P A R E A L I T Y
Business PlanPrepared May 2015
Contact Information
Jerrad Green
843-424-9694
www.VMLproperties.com
405 Emerson Dr.
Myrtle Beach, SC 29579, USA
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Table of Contents
Executive Summary.................................................................................1Who We Are.............................................................................................................................................................1
What We Sell ...........................................................................................................................................................1
Who We Sell To ......................................................................................................................................................2
Financial Summary ..............................................................................................................................................2
Company ....................................................................................................3Company Overview..............................................................................................................................................3
Management Team...............................................................................................................................................3
Management Team Background......................................................................................................................4
Staffing.....................................................................................................................................................................5
Products and Services.............................................................................6Products and Services..........................................................................................................................................6
Investment Opportunities..................................................................................................................................7
Technology.............................................................................................................................................................7
Competitors............................................................................................................................................................8
Target Market ..........................................................................................10Market Overview .................................................................................................................................................10
Market Trends ......................................................................................................................................................12
Industry Analysis ................................................................................................................................................13
Key Customers.....................................................................................................................................................14
Strategy and Implementation.............................................................16SWOT Analysis.....................................................................................................................................................16
Competitive Edge................................................................................................................................................17
Marketing Activities ...........................................................................................................................................17
Financial Plan..........................................................................................18Revenue Forecast ................................................................................................................................................18
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Personnel Plan .....................................................................................................................................................19
Budget ....................................................................................................................................................................19
Cash Flow Assumptions....................................................................................................................................21
Loans and Investments .....................................................................................................................................21
Financial Statements ............................................................................23Profit and Loss Statement ................................................................................................................................23
Balance Sheet.......................................................................................................................................................25
Cash Flow Statement .........................................................................................................................................26
Appendix..................................................................................................28Revenue Forecast................................................................................................................................................28
Personnel Plan.....................................................................................................................................................29
Budget....................................................................................................................................................................30
Loans and Investments .....................................................................................................................................31
Profit and Loss Statement ................................................................................................................................33
Balance Sheet.......................................................................................................................................................36
Cash Flow Statement .........................................................................................................................................39
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Executive Summary
Who We Are
VML Properties LLC is a real estate investment start-up located in Myrtle Beach, SC. The
company is focused on providing lucrative investment opportunities for investors and feasible
housing options for potential homeowners. VML Properties will operate in Horry County (90%
of the business) and Northern Georgetown County.
The start-up is led by a team of serial entrepreneurs Jerrad and Machel Green who possess an
acute business sense and bring to the table a solid design, management, and marketing
expertise. Together they founded and continue to run Vintage Marquee Lights, an e-commerce
business that grossed $5M in sales since its inception and attracted customers the like of West
Elm and Anthropologie. Today Jerrad and Machel Green focus on VML Properties LLC and its
successful growth.
At the time of writing, the real estate market is undergoing a confident recovery. Low interest
rates, higher demand and lower prices (due to the housing crash in 2008) have resulted in
approximately 20% gains in the median price of new and existing homes in the past two years.
The return on investment (ROI) is higher than that of the stock market, which makes VML
Properties proposition to investors so much more attractive.
The real estate crisis led to more stringent policies for obtaining a credit to buy a home making
it challenging for average consumers to buy and own a house. VML Properties is driven to
change this situation by making purchasing real estate more affordable and simple, thus
contributing to the improvement of life in the local community.
What We Sell
VML Properties LLC is a B2B (business-to-business) and B2C (business-to-consumer) real
estate investment start-up that provides the following services:
• wholesale of real estate
• redesign and reconstruction
• rentals, lease-to-own options
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• property financing
• investment opportunities
Who We Sell To
VML Properties LLC is a B2B (business-to-business) and B2C (business-to-consumer) real
estate investment start-up that focuses on serving Horry (90% of the business) and Northern
Georgetown Counties in the state of South Carolina. Given the range of the services the
company provides, its target market is represented by potential home owners and real estate
investors.
According to the reports released by the city of Myrtle Beach and the county (Horry County),
the real estate market in the area is undergoing a rapid revival - the demand has increased and
so is the construction. VML Properties is determined to seize this market opportunity and assist
many potential home owners with realizing their dreams while providing sizable ROI for its
investors.
Financial Summary
Financial Highlights
Financial Highlights by Year
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CompanyCompany Overview
VML Properties is a real estate investment start-up located in Myrtle Beach, SC. The company is
focused on providing lucrative investment opportunities for investors and feasible housing
options for potential homeowners. VML Properties will operate in Horry County and Northern
Georgetown County.
At the time of writing, the real estate market is undergoing a confident recovery. Low interest
rates, higher demand and lower prices (due to the housing crash in 2008) have resulted in
approximately 20% gains in the median price of new and existing homes in the past two years.
The return on investment (ROI) is higher than that of the stock market, which makes VML
Properties proposition to investors so much more attractive.
The real estate crisis led to more stringent policies for obtaining a credit to buy a home making
it challenging for average consumers to buy and own a house. VML Properties is driven to
change this situation by making purchasing real estate more affordable and simple, thus
contributing to the improvement of life in the local community.
The start-up plans to leverage online marketing to drive awareness of its offerings and
streamline its operations by utilizing technology to post listings, conduct communication with
potential buyers, and manage its contractors.
The company was registered as a limited liability corporation in the state of South Carolina in
2015 and is currently located at 405 Emerson Dr, Myrtle Beach, SC 29579. Jerrad Green owns
50% of the start-up and Machel Green the remaining half. The capital requirement of the start-
up is $100,000 in the form of a first lien loan.
Management Team
The management team of VML Properties LLC is comprised of Jerrad Green, CEO and Machel
Green, Head Designer.
Jerrad Green, Chief Executive Officer
Responsibilities of Mr. Green include but are not limited to:
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• Developing and maintaining the vision of the company
• Overseeing marketing, service development, property acquisitions, finance, customer
service, etc.
• Approving all financial obligations
• Seeking business opportunities and strategic alliances with other companies and
organizations
• Planning, developing, and establishing policies and objectives of business organization
in accordance with board directives and company charter
• Directing and coordinating financial programs to provide funding for new or
continuing operations in order to maximize return on investments, and increase
productivity
Machel Green, Head Designer
Responsibilities of Mrs. Green include but are not limited to:
• Managing redesign of properties
• Coordinating business operations
• Assisting CEO with processing of financial transactions and fulfilling obligations
Management Team Background
Jerrad and Machel Green are serial entrepreneurs with an acute business sense and a strong
work ethic. As a husband and wife team, they have founded and continue to operate Vintage
Marquee Lights, an eCommerce business delivering custom-made lighting and signage
products. The company grossed $5 million in sales since 2011 and has a client list that includes
established brand names such as Pottery Barn, West Elm and Anthropologie, along with
hundreds of local names nationwide.
Jerrad and Machel Green are focused on making VML Properties a success. Their professional
track records demonstrate their commitment to achieving goals and delivering on promises.
Mr. Green is an accomplished country singer who had performed on a Grammy award-
winning album before graduating high school. Mrs. Green is a world class dancer with a career
spanning more than two decades and recognition including the title of Miss Dance of South
Carolina. Evidently, they are a team of top performers who define goals and execute to the best
of their abilities.
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Staffing
The management team recognizes the existing personnel gaps in the business. VML Properties
utilizes contractors to research and post vacant real estate on its website for purchase. Internet
and SEO as well as other projects are and will be outsourced to maximize profits and ensure
growth.
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Products and ServicesProducts and Services
VML Properties LLC is a B2B (business-to-business) and B2C (business-to-consumer) real
estate investment start-up that provides the following services:
• wholesale of real estate
• redesign and reconstruction
• rentals, lease-to-own options
• property financing
• investment opportunities
All of the above services are delivered exclusively in Horry and Northern Georgetown Counties
and performed through:
• www.vmlproperties.com - a website featuring housing listings available for sale
immediately and directly from an owner
• www.HorryCountyHouseHunters.com - a site containing housing posts generated
through direct contact with an owner willing to sell and through research and due
diligence of independent contractors
• www.VMLsellsHouses.com - an online destination targeted at buyers who wish to
purchase housing for cash. These are the clients that VML Properties "wholesales"
houses to while collecting a fee averaging $5,000.
• www.GrandStrandHomeFinancing.com - a website that collects leads who are
interested in buying from VML Properties LLC on terms/payments because they cannot
qualify for a traditional mortgage for various reasons. The start-up requires a small
down payment (around 5% of the total price of the home) and finances properties to
clients at a high interest rate. This allows potential customers to own a home and
rebuild their credits. In this situation, VML Properties can either sell the mortgage to a
“note buyer” for a discount and cash-out, or the homeowner can refinance in the future
with a traditional mortgage when they have a better credit.
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Investment Opportunities
South Carolina is one of the top states for growth in self-employment, growth in exports, job
placement efficiency, and business-friendly state-and-local tax climate. South Carolina is
consistently ranked as one of the nation's most pro-business states by Forbes. The state’s tax
climate rewards investment and new employment by offering the lowest corporate income tax
in the Southeast and no inventory tax. The tax incentive list also includes tax exemptions,
abatements, moratoriums, credits and reductions for new and expanding companies.
According to the U.S. Census Bureau, South Carolina has one of the lowest per capita tax rates
in the country, and lawmakers, state political leaders and local officials are committed to
ensuring that the tax structure remains competitive and attractive to individuals,
manufacturers and small business owners who may be considering South Carolina as the
location of their future investment.
VML Properties offers its investors peace of mind by requesting $100,000 as a first lien loan. In
the event a loan is in default, and the collateral securing the loan is liquidated, the lender of
record in the first lien position receives repayment of the lien amount, provided that the
collateral secured the outstanding loan balance. If, after liquidation, funds remain, the
subordinate lien holders (secondary, tertiary, etc.) will be repaid until such time as all of the
funds are liquidated, or no additional liens remain unpaid.
The management team at VML Properties LLC is confident in feasibility of the investment
opportunity it offers to potential lenders. Growing demand for housing coupled with business-
friendly conditions in the state of South Carolina further reinforce the solid foundation of the
investment.
Technology
VML Properties LLC will conduct business online through the sites it owns and manages.
Utilization of online technologies by VML goes in line with consumer trends developed in the
past years.
In 2014, online advertising spending in the real estate industry reached nearly $16 billion
(which makes up 56% of the overall ad spending), a 210% increase since 2009. Consumers use
of online search reached an all-time high of 92% for home-related search, and crested to
almost 60% mobile and tablet usage on weekends. This change is undergoing rapidly. Given
that there were over 5 million residential sales in 2013, the value of the online experience takes
on a whole new meaning. This trend is not going away anytime soon. While people still need a
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human touch to solidify their buying decisions, their information gathering process is now
dominated by the digital tools we have all come to rely on.
Competitors
VML Properties LLC faces direct competition from nationwide online services and local real
estate businesses.
Real estate listing websites include:
• HomeFinder.com
• MLS.com
• Zillow.com
• Trulia.com
• realtor.com
• RedFin.com
• Homes.com
• ZipRealty.com
Local real estate businesses include:
• Myrtle Beach Resort Vacations
• North Beach Realty
• RE/MAX Southern Shores
• Rose Real Estate
• Beachcomber Locations
• Berkshire Hathaway HomeServices Myrtle Beach Real Estate
• Century 21 Boling & Associates, Inc.
• Century 21 Broadhurst & Associates, Inc.
• Century 21 Thomas
• CondoLux Realty
• Dockside Realty
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• Dunes Realty
• McMillan Real Estate, Inc.
• Bluewater Properties
• Oceanfront Guru
• Watermark Real Estate Group
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Target MarketMarket Overview
Horry County population statistics:
• Population: 298,832 (US Census)
• Schools: 62
• Household Median Income: 43,142
• Median age: 42.6
• Number of households: 114,103
• Persons per household: 2.5
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Real estate statistics in Horry County:
• Number of housing units: 189,521
• Types of structure: 50% single units
• Median value of owner-occupied housing units: $151,500
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Market Trends
The real estate market in Horry County is taking off, according to numbers released by the
county and the city of Myrtle Beach (November, 2014). Building permits for residential homes
have increased over the last six months in the county.
Ernie Derrick, president of Coastal Carolina Association of Realtors, says for buyers, the market
is in their favor because as the market increases and pricing comes back it gets them into a
better financial position and more equity in their pocket.
For sellers, the situation is favorable due to the growing housing market - the new
construction will add value to their homes. "The maximum price increase they can see over a
five year period is 15%. So it's not going to affect their taxes but they will reap the benefits of
having appreciation in their property at such time they do want to sell it," says Mr. Derrick.
Between July and September of 2014, Horry County saw a 41% increase of residential permits
compared to 2013 at the same time. The city of Myrtle Beach is receiving about two, single
family home, building permits per day. In January of 2014, they had only 36, compared to 73 in
July.
"The Market Common is a hot destination these days. And there are still lots of room for new
home construction there. Plus we are seeing a good bit up in the Grand Dunes area," said Mark
Kruea, the spokesperson for the city of Myrtle Beach.
Derrick says there is rhyme and reason for the boom in the real estate business at this time. He
says more people are employed in the market place today, people have savings, and they're
able to get money out of their savings in today's market. Houses that are selling fast are priced
at $150,000 or less. "They're developing and putting sticks in the ground and housing's coming
up," said Derrick.
Kruea says the demand for so many building permits, both residential and commercial has
forced the city to hire two additional building inspectors within the past year. "Single family
home building has been building, over the last couple of years," said Kruea. "It's growing at a
very rapid rate."
In addition, the current Horry County real estate market is clamoring for upscale properties
and properties of this type are selling steadily. There is a growing demand for oceanfront and
boulevard (just across the street from the beach) properties. New resorts are being developed
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and sold out within short time periods. Condominiums and large, private homes are being
built along the once remote Intracoastal Waterway.
With the recent additions of Veterans Highway (Hwy. 22) and the Carolina Bays Parkway (Hwy.
31), the inland countryside and coastal areas are suddenly joined as never before. Traveling to
and from the beach areas has never been easier. As a result of the expanded road system, the
availability of properties close to the beach at reasonable prices is presenting new
opportunities.
Based on the strong demand, the Horry County real estate presents a lucrative investment
opportunity and presents a potential for a relatively high return on investment (ROI).
Industry Analysis
Real estate industry's NAICS code is 531000. It is a mature industry with several key players
serving a vast market.
Real estate market statistics:
• There are roughly 133,026,000 housing units in the United States. The combined value
of these homes is around $25.7 trillion
• Housing units in the USA are worth more than the combined GDP of the entire
European Union ($18.1 trillion)
• Mortgage rates remain low: mortgage payments currently consume 15.6% of monthly
family income on average, down from 23.5% in 2006
• The national median existing-home price was $208,500, the highest since 2007
($219,000) and a 5.8 percent increase from 2013 ($197,100)
• In 2014, there were 4.93 million home sales
Real estate industry statistics:
• The real estate industry employs over 2 million people, including more than 430,000
agents and brokers. That’s about 1.4% of the working civilian population of the U.S
• 84% of real estate firms are independent, non-franchised companies, 13% are
independent franchises and 3% are corporate subsidiaries
• 4 out of 5 residential real estate brokerage firms have a single office
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Real estate housing demand:
• Total employment in the U.S. is projected to increase between 2012 and 2022, by 15.6
million, or about 10.8%
• According to the National Association of Home Builders (NAHB), single-family starts
could be closing in on 1 million units by the end of 2015 and multifamily production
could go as high as 500,000 units
• Foreign investors continue to see US real estate as a safe investment. In 2014,
transactions with foreign buyers accounted for $92.2 billion in sales
Real estate is an online business:
• 92% of people now use the Internet in their home search
• Between 2009 and 2013, real estate-related Google searches increased by 253%
• On weekends, 59% of page views on real estate websites come from smartphones and
tablets
Key Customers
VML Properties LLC is a B2B (business-to-business) and B2C (business-to-consumer) real
estate investment start-up that focuses on serving Horry (90% of the business) and Northern
Georgetown Counties in the state of South Carolina. Given the range of the services the
company provides, its target market is represented by potential home owners and real estate
investors.
According to the reports released by the city of Myrtle Beach and the county (Horry County),
the real estate market in the area is undergoing a rapid revival - the demand has increased and
so is the construction. VML Properties is determined to seize this market opportunity and assist
many potential home owners with realizing their dreams while providing sizable ROI for its
investors.
VML Properties 15
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Strategy and ImplementationSWOT Analysis
Strengths
The strengths of VML Properties LLC include:
• an experienced management team with a proven track record of setting and achieving
business goals
• an aggressive and focused marketing campaign with defined objectives and strategies
• lean operations based on increased technology deployment
Weaknesses
The weaknesses of VML Properties consist of:
• a specific market niche (Horry County) and area of service that limit the number of
possible deals
• limitations of a small business entering the market that is populated by larger real estate
players
• a lack of resources and investment
Opportunities
The opportunities for VML Properties LLC comprise of:
• a strong and growing demand for housing in the Horry County area (please see the
Target Market section for reference)
• a limited access to financing their home purchases for individuals
• an improving economy and job market - factors that make many potential home buyers
consider purchasing their real estate
• high rents force millennials to opt for buying vs renting. Millennials made up 32% of the
U.S. housing market in 2014, up from 28% two years earlier, and have pulled ahead of
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the older Generation X as the largest segment of buyers, according to the National
Association of Realtors.
Threats
The threats for VML Properties LLC include:
• a saturated and mature real estate market
• an easy-to-replicate business model
• reliance on online search and technology vs face-to-face communication
Competitive Edge
VML Properties LLC stands for transparency and reliability. Over the years, the management
team has demonstrated an unprecedented commitment to quality service and timeliness that
resulted in acquiring clients the like of West Elm and Antropologie. These values lay the
foundation of VML Properties, a real estate investment start-up that is dedicated to ensuring
high ROI for its investors and providing affordable and simple housing options for future
home owners in Horry County.
Marketing Activities
The marketing strategy of VML Properties LLC includes:
• Outdoor and print advertising. Bandit signs will be placed in the Little River, North
Myrtle Beach, and Conway areas. Also, newspaper ads and business cards will be
located around the town.
• Direct mail campaigns
• Online marketing. A lot of SEO and Google analytics work is and will be put into making
the company's sites to make VML Properties the most visible in the area. VML Properties
plans to place advertisements online on free-of-charge websites such as Craigslist,
Backpage, etc. In addition, email campaigns will be used to target potential home sellers
and buyers.
• Event marketing and networking. Local Real Estate Investment Association meetings is
also where the management team will conduct promotional activities and networking
to generate leads and raise awareness about the company's services.
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Financial PlanRevenue Forecast
Revenue Forecast
FY2016 FY2017 FY2018
Total Revenue $3,150,000 $4,650,000 $5,250,000
Total Direct Cost $2,835,000 $4,185,000 $4,725,000
Gross Margin $315,000 $465,000 $525,000
Gross Margin % 10% 10% 10%
Revenue by Month
About the Revenue Forecast
The revenue projections assume a 10% profit margin for the real-estate activities. The first-year
growth is robust and supported by an aggressive and defined marketing strategy. The yearly
sales increase as the business spreads awareness about its offerings in the target area and the
state of economy improves.
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Personnel Plan
Personnel Table
FY2016 FY2017 FY2018
New Employee $0 $0 $0
Total $0 $0 $0
About the Personnel Plan
Budget
Budget Table
FY2016 FY2017 FY2018
Operating Expenses
Salary $0 $0 $0
Employee Related Expenses $0 $0 $0
Marketing & Promotions $12,000 $12,000 $12,000
Office Supplies and Expenses $6,000 $6,000 $6,000
Website Hosting $600 $600 $600
Contractors $7,200 $7,200 $7,200
Total Operating Expenses $25,800 $25,800 $25,800
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Expenses by Month
About the Budget
The budget for VML Properties LLC takes into account that the management team doesn't get
paid salaries for the work performed and instead receives a percentage of the profits. The
company utilizes the services of contractors to find, evaluate, and submit real estate postings
to the company's database, thus eliminating the employee-related expenses and taxes. The
main operating expense of VML Properties is marketing and advertising as the company relies
heavily on the online tools to generate leads and close sales. Professional services (legal,
accounting, etc.) will be used on an "as needed" basis.
Startup Costs
Total start-up costs included incorporation fees, websites, and industry training for the
management/founders' team. These costs have been financed by the founders and have been
paid off.
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Cash Flow Assumptions
Cash Flow Assumptions
Cash Inflow
% of Sales on Credit 100%
Avg Collection Period (Days) 30
Cash Outflow
% of Purchases on Credit 100%
Avg Payment Delay (Days) 30
About the Cash Flow Assumptions
VML Properties LLC sets the payment schedule for the company's expenses at 30 days. On the
client side, some of the start-up's transactions will be processed with an average delay of 30
days (individual's financing, etc.).
Loans and Investments
Loans and Investments Table
FY2016 FY2017 FY2018
First Lien LoanLoan at 5% interest for 36 mos. $100,000 $0 $0
Total Amount Received $100,000 $0 $0
Sources of Funds
VML Properties LLC is looking to raise $100,000 from an outside investor in the form of a first
lien loan, a secured form of debt that has first priority in payment in the event of a company's
liquification. This setup allows to guarantee a safe and secure investment for a potential lender.
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Use of Funds
The planned financing is expected to provide a working capital for the company in order to
secure real estate purchases. The loan will be paid off based on the terms negotiated with each
lender individually.
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Financial StatementsProfit and Loss Statement
Profit and Loss Statement
FY2016 FY2017 FY2018
Revenue $3,150,000 $4,650,000 $5,250,000
Direct Cost $2,835,000 $4,185,000 $4,725,000
Gross Margin $315,000 $465,000 $525,000
Gross Margin % 10% 10% 10%
Operating Expenses
Salary $0 $0 $0
Employee Related Expenses $0 $0 $0
Marketing & Promotions $12,000 $12,000 $12,000
Office Supplies and Expenses $6,000 $6,000 $6,000
Website Hosting $600 $600 $600
Contractors $7,200 $7,200 $7,200
Total Operating Expenses $25,800 $25,800 $25,800
Operating Income $289,200 $439,200 $499,200
Interest Incurred $3,675 $2,936 $1,245
Depreciation and Amortization $0 $0 $0
Income Taxes $57,105 $87,253 $99,591
Total Expenses $2,921,580 $4,300,989 $4,851,636
Net Profit $228,420 $349,011 $398,364
Net Profit / Sales 7% 8% 8%
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Gross Margin by Year
Net Profit (or Loss) by Year
About the Profit and Loss Statement
Gross margins are in line with the industry's standards. Profits rise from year to year due to
increased awareness of the company's services and positive feedback. Operating expenses
remain the same or increase slightly.
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Balance Sheet
Balance Sheet
As of Period's End FY2016 FY2017 FY2018
Cash $259,275 $581,508 $940,153
Accounts Receivable $450,000 $387,500 $437,500
Inventory $0 $0 $0
Total Current Assets $709,275 $969,008 $1,377,653
Long-Term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-Term Assets $0 $0 $0
Total Assets $709,275 $969,008 $1,377,653
Accounts Payable $407,150 $350,900 $395,900
Sales Taxes Payable $0 $0 $0
Short-Term Debt $0 $0 $0
Total Current Liabilities $407,150 $350,900 $395,900
Long-Term Debt $73,705 $40,677 $5,958
Total Liabilities $480,855 $391,577 $401,858
Paid-In Capital $0 $0 $0
Retained Earnings $0 $228,420 $577,431
Earnings $228,420 $349,011 $398,364
Total Owner's Equity $228,420 $577,431 $975,795
Total Liabilities & Equity $709,275 $969,008 $1,377,653
About the Balance Sheet
As the balance sheer showcases, the company does not expect any interruptions associated
with meeting loan obligations. Additional financing may be considered to increase the volume
of sales and broaden the area of operations.
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Cash Flow Statement
Cash Flow Statement
FY2016 FY2017 FY2018
Operations
Net Profit $228,420 $349,011 $398,364
Depreciation and Amortization $0 $0 $0
Change in Accounts Receivable ($450,000) $62,500 ($50,000)
Change in Inventory $0 $0 $0
Change in Accounts Payable $407,150 ($56,250) $45,000
Change in Sales Taxes Payable $0 $0 $0
Net Cash Flow from Operations $185,570 $355,261 $393,364
Investing & Financing
Assets Purchased or Sold $0 $0 $0
Investments Received $0 $0 $0
Change in Short-Term Debt $0 $0 $0
Change in Long-Term Debt $73,705 ($33,028) ($34,719)
Net Cash Flow from Investing & Financing $73,705 ($33,028) ($34,719)
Cash at Beginning of Period $0 $259,275 $581,508
Net Change in Cash $259,275 $322,233 $358,645
Cash at End of Period $259,275 $581,508 $940,153
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Cash Flow by Month
Cash Flow by Year
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AppendixRevenue Forecast
Revenue Forecast Table (With Monthly Detail)
FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16
Total Revenue $0 $150,000 $150,000 $150,000 $150,000 $300,000 $300,000 $300,000 $300,000 $450,000 $450,000 $450,000
Total Direct Cost $0 $135,000 $135,000 $135,000 $135,000 $270,000 $270,000 $270,000 $270,000 $405,000 $405,000 $405,000
Gross Margin $0 $15,000 $15,000 $15,000 $15,000 $30,000 $30,000 $30,000 $30,000 $45,000 $45,000 $45,000
Gross Margin % 0% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
FY2016 FY2017 FY2018
Total Revenue $3,150,000 $4,650,000 $5,250,000
Total Direct Cost $2,835,000 $4,185,000 $4,725,000
Gross Margin $315,000 $465,000 $525,000
Gross Margin % 10% 10% 10%
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Personnel Plan
Personnel Table (With Monthly Detail)
FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16
New Employee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
FY2016 FY2017 FY2018
New Employee $0 $0 $0
Total $0 $0 $0
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Budget
Budget Table (With Monthly Detail)
FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16
Operating Expenses
Salary $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Employee Related Expenses
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing & Promotions $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Office Supplies and Expenses
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Website Hosting $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Contractors $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Total Operating Expenses
$2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150
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FY2016 FY2017 FY2018
Operating Expenses
Salary $0 $0 $0
Employee Related Expenses $0 $0 $0
Marketing & Promotions $12,000 $12,000 $12,000
Office Supplies and Expenses $6,000 $6,000 $6,000
Website Hosting $600 $600 $600
Contractors $7,200 $7,200 $7,200
Total Operating Expenses $25,800 $25,800 $25,800
Loans and Investments
Loans and Investments Table (With Monthly Detail)
FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16
First Lien LoanLoan at 5% interest for 36 mos.
$0 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Amount Received
$0 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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FY2016 FY2017 FY2018
First Lien LoanLoan at 5% interest for 36 mos. $100,000 $0 $0
Total Amount Received $100,000 $0 $0
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Profit and Loss Statement
Profit and Loss Statement (With Monthly Detail)
FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16
Revenue $0 $150,000 $150,000 $150,000 $150,000 $300,000 $300,000 $300,000 $300,000 $450,000 $450,000 $450,000
Direct Cost $0 $135,000 $135,000 $135,000 $135,000 $270,000 $270,000 $270,000 $270,000 $405,000 $405,000 $405,000
Gross Margin $0 $15,000 $15,000 $15,000 $15,000 $30,000 $30,000 $30,000 $30,000 $45,000 $45,000 $45,000
Gross Margin % 0% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Operating Expenses
Salary $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Employee Related Expenses
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing & Promotions $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Office Supplies and Expenses
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Website Hosting $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Contractors $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Total Operating Expenses
$2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,150
Operating Income ($2,150) $12,850 $12,850 $12,850 $12,850 $27,850 $27,850 $27,850 $27,850 $42,850 $42,850 $42,850
Interest Incurred $0 $0 $417 $406 $395 $384 $373 $362 $351 $340 $329 $318
Depreciation and Amortization
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Income Taxes $0 $2,140 $2,487 $2,488 $2,491 $5,494 $5,495 $5,498 $5,499 $8,502 $8,505 $8,506
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Total Expenses $2,150 $139,290 $140,054 $140,044 $140,036 $278,028 $278,018 $278,010 $278,000 $415,992 $415,984 $415,974
Net Profit ($2,150) $10,710 $9,946 $9,956 $9,964 $21,972 $21,982 $21,990 $22,000 $34,008 $34,016 $34,026
Net Profit / Sales 0% 7% 7% 7% 7% 7% 7% 7% 7% 8% 8% 8%
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FY2016 FY2017 FY2018
Revenue $3,150,000 $4,650,000 $5,250,000
Direct Cost $2,835,000 $4,185,000 $4,725,000
Gross Margin $315,000 $465,000 $525,000
Gross Margin % 10% 10% 10%
Operating Expenses
Salary $0 $0 $0
Employee Related Expenses $0 $0 $0
Marketing & Promotions $12,000 $12,000 $12,000
Office Supplies and Expenses $6,000 $6,000 $6,000
Website Hosting $600 $600 $600
Contractors $7,200 $7,200 $7,200
Total Operating Expenses $25,800 $25,800 $25,800
Operating Income $289,200 $439,200 $499,200
Interest Incurred $3,675 $2,936 $1,245
Depreciation and Amortization $0 $0 $0
Income Taxes $57,105 $87,253 $99,591
Total Expenses $2,921,580 $4,300,989 $4,851,636
Net Profit $228,420 $349,011 $398,364
Net Profit / Sales 7% 8% 8%
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Balance Sheet
Balance Sheet (With Monthly Detail)
As of Period's End Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16
Cash $0 $95,710 $103,076 $110,441 $117,803 $122,162 $141,520 $160,875 $180,229 $196,580 $227,928 $259,275
Accounts Receivable $0 $150,000 $150,000 $150,000 $150,000 $300,000 $300,000 $300,000 $300,000 $450,000 $450,000 $450,000
Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets
$0 $245,710 $253,076 $260,441 $267,803 $422,162 $441,520 $460,875 $480,229 $646,580 $677,928 $709,275
Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $0 $245,710 $253,076 $260,441 $267,803 $422,162 $441,520 $460,875 $480,229 $646,580 $677,928 $709,275
Accounts Payable $2,150 $137,150 $137,150 $137,150 $137,150 $272,150 $272,150 $272,150 $272,150 $407,150 $407,150 $407,150
Sales Taxes Payable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Short-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Liabilities
$2,150 $137,150 $137,150 $137,150 $137,150 $272,150 $272,150 $272,150 $272,150 $407,150 $407,150 $407,150
Long-Term Debt $0 $100,000 $97,420 $94,829 $92,227 $89,614 $86,990 $84,355 $81,709 $79,052 $76,384 $73,705
Total Liabilities $2,150 $237,150 $234,570 $231,979 $229,377 $361,764 $359,140 $356,505 $353,859 $486,202 $483,534 $480,855
Paid-In Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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Retained Earnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Earnings ($2,150) $8,560 $18,506 $28,462 $38,426 $60,398 $82,380 $104,370 $126,370 $160,378 $194,394 $228,420
Total Owner's Equity
($2,150) $8,560 $18,506 $28,462 $38,426 $60,398 $82,380 $104,370 $126,370 $160,378 $194,394 $228,420
Total Liabilities & Equity
$0 $245,710 $253,076 $260,441 $267,803 $422,162 $441,520 $460,875 $480,229 $646,580 $677,928 $709,275
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As of Period's End FY2016 FY2017 FY2018
Cash $259,275 $581,508 $940,153
Accounts Receivable $450,000 $387,500 $437,500
Inventory $0 $0 $0
Total Current Assets $709,275 $969,008 $1,377,653
Long-Term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-Term Assets $0 $0 $0
Total Assets $709,275 $969,008 $1,377,653
Accounts Payable $407,150 $350,900 $395,900
Sales Taxes Payable $0 $0 $0
Short-Term Debt $0 $0 $0
Total Current Liabilities $407,150 $350,900 $395,900
Long-Term Debt $73,705 $40,677 $5,958
Total Liabilities $480,855 $391,577 $401,858
Paid-In Capital $0 $0 $0
Retained Earnings $0 $228,420 $577,431
Earnings $228,420 $349,011 $398,364
Total Owner's Equity $228,420 $577,431 $975,795
Total Liabilities & Equity $709,275 $969,008 $1,377,653
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Cash Flow Statement
Cash Flow Statement (With Monthly Detail)
FY2016 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16
Operations
Net Profit ($2,150) $10,710 $9,946 $9,956 $9,964 $21,972 $21,982 $21,990 $22,000 $34,008 $34,016 $34,026
Depreciation and Amortization
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in Accounts Receivable
$0 ($150,000) $0 $0 $0 ($150,000) $0 $0 $0 ($150,000) $0 $0
Change in Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in Accounts Payable
$2,150 $135,000 $0 $0 $0 $135,000 $0 $0 $0 $135,000 $0 $0
Change in Sales Taxes Payable
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Cash Flow from Operations
$0 ($4,290) $9,946 $9,956 $9,964 $6,972 $21,982 $21,990 $22,000 $19,008 $34,016 $34,026
Investing & Financing
Assets Purchased or Sold
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Investments Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in Short-Term Debt
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in Long-Term Debt
$0 $100,000 ($2,580) ($2,591) ($2,602) ($2,613) ($2,624) ($2,635) ($2,646) ($2,657) ($2,668) ($2,679)
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Net Cash Flow from Investing & Financing
$0 $100,000 ($2,580) ($2,591) ($2,602) ($2,613) ($2,624) ($2,635) ($2,646) ($2,657) ($2,668) ($2,679)
Cash at Beginning of Period
$0 $0 $95,710 $103,076 $110,441 $117,803 $122,162 $141,520 $160,875 $180,229 $196,580 $227,928
Net Change in Cash $0 $95,710 $7,366 $7,365 $7,362 $4,359 $19,358 $19,355 $19,354 $16,351 $31,348 $31,347
Cash at End of Period $0 $95,710 $103,076 $110,441 $117,803 $122,162 $141,520 $160,875 $180,229 $196,580 $227,928 $259,275
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FY2016 FY2017 FY2018
Operations
Net Profit $228,420 $349,011 $398,364
Depreciation and Amortization $0 $0 $0
Change in Accounts Receivable ($450,000) $62,500 ($50,000)
Change in Inventory $0 $0 $0
Change in Accounts Payable $407,150 ($56,250) $45,000
Change in Sales Taxes Payable $0 $0 $0
Net Cash Flow from Operations $185,570 $355,261 $393,364
Investing & Financing
Assets Purchased or Sold $0 $0 $0
Investments Received $0 $0 $0
Change in Short-Term Debt $0 $0 $0
Change in Long-Term Debt $73,705 ($33,028) ($34,719)
Net Cash Flow from Investing & Financing $73,705 ($33,028) ($34,719)
Cash at Beginning of Period $0 $259,275 $581,508
Net Change in Cash $259,275 $322,233 $358,645
Cash at End of Period $259,275 $581,508 $940,153