Import Export Business PlanA.A. & L.G. Imports, Inc.

Executive Summary

Introduction

It is the mission of Visigoth Imports to provide complete import/export brokerage services including purchase contracts, shipping, warehousing, and delivery scheduling. The company will concentrate on special and cultural imports from Germany and Scandinavia to the unique Bavarian town of Leavenworth, WA.  Visigoth also plans to provide trade consultation services to newly started farms created under the Puget Consumers Co-op's Farmland Fund initiative.

The Company

Visigoth Imports will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Frank Curtiss, a former master distributor with Fisher-Mills. Mr. Curtiss has brought together a highly respected group of individuals who are well versed in foreign trade processes.The company has a limited number of private investors and does not plan to go public. The company has its main offices in Wenatchee, Washington. The facilities include conference rooms and office spaces. The company expects to begin offering its services in June of 2003.

The Services

Visigoth offers complete import/export brokerage services plus inventory consulting services. As mentioned previously, this includes the following:

o Supplier/buyer identificationo Purchasing, contracting and consultingo Shippingo Warehousingo Delivery

It must be noted that Visigoth does not possess any warehousing facilities and intends to outsource this particular service. We expect to earn revenues by charging a commission based on the value of goods moved per order.

The Market

Visigoth will be concentrating on servicing just two types of clients, the gift shops of Leavenworth, Washington, and the farmers of the Puget Consumers Co-op (PCC). For both market segments, we have secured exclusive contracts or endorsements putting us in a unique position to service these niche firms and their needs.

Profitability in these two markets is expected to be excellent, especially in the import section as Leavenworth draws in over a million tourists each year. We expect profitability in the co-op end to be much slower in the first five years of operation, but it too will increase steadily.Financial ConsiderationsStart-up assets required include expenses and cash needed to support operations until revenues reach an acceptable level. Most of the company's liabilities will come from outside private investors and management investment; however, we have obtained current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. A long-term loan through Charter Bank of Nieurich will be paid off in ten years.The company expects to reach profitability in year 2 and does not anticipate any serious cash flow problems. We expect that about 3,500 units per month will guarantee a break-even point.

1.1 Mission

It is the mission of Visigoth Imports to provide complete import/export consultation and brokerage services including purchase contracts, shipping, warehousing, and delivery. The company will concentrate on special and cultural imports from Germany and Scandinavia to the unique Bavarian town of Leavenworth, WA. Visigoth also plans to export apples and other produce by newly started farms created under the Puget Consumers Co-op's Farmland Fund initiative.It is our long-term goal to become the preferred import company for the unique tourist town of Leavenworth. Visigoth understands that the import shops and restaurants in Leavenworth have special needs of most unique gifts for the million tourists that visit the town annually. Visigoth Imports also understands that the newly launched farms of the PCC farmland fund initiative also have higher costs than most competitors and will need to export their produce at a cost that provides sufficient profit. Visigoth Imports has a combined 35 years of experience working in the import/export business. Our philosophy is in creating a long-term relationship with clients so that the delivery of their products becomes a seamless experience that promotes loyalty.

1.2 Keys to Success

Visigoth Imports' keys to long-term and profitability are as follows:Differentiate our services to our niche clients so that they realize that we are better able to serve their needs than a more generic competitor.Keeping close contact with clients and establishing a well functioning long-term relationship with them to generate repeat business and create a top notch reputation.Establish a comprehensive service experience for our clients that include consultation, product/client search, purchasing contracts, warehousing, shipping, delivery, and follow up service analysis.

1.3 Objectives

The three year goals for Visigoth Imports are the following:Achieve break-even by year 2.Retain our long-term contracts with local import shops in Leavenworth, WA, through excellent customer service.Become the premier importer of German and Scandinavian specialty products in Leavenworth, and become the prime exporter of apples and other produce for the farmers of the PCC Farmland Fund initiative.

Company Summary

Visigoth Imports will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Frank Curtiss, a former master distributor with Fisher-Mills. Mr. Curtiss has brought together a highly respected group of individuals who are well versed in the various aspects of foreign trade processes. The company has a limited number of private investors and does not plan to go public. The company has its main offices in Wenatchee, Washington. The facilities include conference rooms and office spaces. The company expects to begin offering its services in June of 2003. The company's main clients will be small import shops in the Leavenworth area and start-up farms throughout the state. By focusing on small niche market entrepreneurs, we believe we will be able to provide superior and more efficient service than other import/export firms.

2.1 Company Ownership

The company will have a number of outside private investors who will own 27% of the company's shares. The rest will be owned by the senior management including Mr. Frank Curtiss, (25%), Ms. Hannah Mills (20%), Mr. Steve Iltheus (20%), and Mr. Pierce Bolm (8%). All other financing will come from loans.

2.2 Start-up Summary

Start-up assets required include expenses and cash needed to support operations until revenues reach an acceptable level. Most of the company's liabilities will come from outside private investors and management investment, however, we have obtained current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. A long-term loan through Charter Bank of Nieurich will be paid off in ten years.

Start-up

Requirements

Start-up ExpensesLegal £2,000 Insurance £1,000 Utilities £200 Rent £2,000 Accounting and bookkeeping fees £2,000 Expensed equipment £2,000 Advertising £4,000 Other £8,000 Total Start-up Expenses £21,200

Start-up AssetsCash Required £38,550 Other Current Assets £15,000 Long-term Assets £10,000 Total Assets £63,550

Total Requirements £84,750

Start-up Funding

Start-up Expenses to Fund £21,200 Start-up Assets to Fund £63,550 Total Funding Required £84,750

Assets Non-cash Assets from Start-up £25,000 Cash Requirements from Start-up £38,550 Additional Cash Raised £0 Cash Balance on Starting Date £38,550 Total Assets £63,550

Liabilities and Capital

LiabilitiesCurrent Borrowing £9,000 Long-term Liabilities £12,000 Accounts Payable (Outstanding Bills) £2,000 Other Current Liabilities (interest-free) £8,000 Total Liabilities £31,000

Capital

Planned InvestmentMr. Frank Curtiss £15,000 Ms. Hannah Mills £13,000 Mr. Steve Iltheus £13,000 Mr. Pierce Bolm £5,000 Others £7,750 Additional Investment Requirement £0 Total Planned Investment £53,750

Loss at Start-up (Start-up Expenses) (£21,200)Total Capital £32,550

Total Capital and Liabilities £63,550

Total Funding £84,750

Services

Visigoth offers complete import/export brokerage services plus inventory consulting services. As mentioned previously, this includes the following:

o Supplier/buyer identificationo Purchasing process contracting and consultingo Shipping setupo Warehousing arrangementso Delivery

It must be noted that Visigoth does not possess any warehousing facilities and intends to outsource this particular service. This means that we will have virtually no variable costs associated with unit sales. Visigoth will be importing such things as steins, figurines, Christmas gifts, Germanic foodstuffs, cuckoo clocks, and nutcrackers from Germany, where Mr. Curtiss has had extensive experience. In addition Visigoth will be importing Scandinavian wool products such as sweaters and other gift items. The company will be exporting produce, primarily apples, to Europe. Our revenue model is based on a commission rate charged to our clients scaled on the dollar value of goods moved per order.

Market Analysis Summary

Visigoth will be concentrating on servicing just two types of clients, the gift shops of Leavenworth, Washington, and the farmers of the Puget Consumers Co-op. For both market segments, we have secured exclusive contracts or endorsements that put us in a unique position to service these niche firms and their more demanding needs. Profitability in these two markets is expected to be excellent, especially in the import segment as Leavenworth draws in over a million tourists each year. We expect profitability in the co-op end to be much slower in the first five years of operation, but will increase steadily.

4.1 Market Segmentation

Visigoth intends to be a small import/export company focused on clients serving a niche market. Having secured a very advantageous contract with PCC and gained the endorsement of the Leavenworth city council, we plan to focus exclusively on these market segments. Both have such high potential that we do not see a need to expand our market reach for the foreseeable future.

Market Analysis2003 2004 2005 2006 2007

Potential Customers Growth CAGRLeavenworth businesses 1% 34 34 34 34 34 0.00%

Pugent Consumer Co-op farms 5% 72 76 80 84 88 5.14%

Total 3.58% 106 110 114 118 122 3.58%

4.2 Service Business AnalysisImports

Leavenworth sits in one of the most beautiful areas of Washington State. The area was settled in the 1860's, but it wasn't until the end of the century that the town began to blossom with the arrival of the rail line. The Great Northern Railway Company's tracks through Leavenworth brought with them opportunities for work, commerce and a new economy. However, when the Great Northern Railway Company pulled out of Leavenworth, the town was converted from a bustling, thriving hub of commerce into a hollow, empty community. For more than thirty years, Leavenworth lived on the brink of extinction. But in the early 1960's, everything changed. In a last-chance effort to turn their precarious situation around, the leaders of the community decided to change Leavenworth's appearance, hoping to bring tourism into the area. Using the beautiful backdrop of the surrounding Alpine hills to their advantage, the town agreed to remodel their hamlet in the form of a Bavarian village. The entire community rallied to create the illusion of Bavaria in the middle of Washington state. Besides the complete renovation of the downtown area, community members worked to begin a series of festivals. The Autumn Leaf Festival, Maifest and the extremely popular Christmas Lighting Ceremony were the first of many attractions Leavenworth offered to tourists. Since the change to a Bavarian motif, Leavenworth has become a pillar of the tourism industry in the Pacific Northwest. Today, more than a million tourists come to Leavenworth yearly, each visitor finding their own love affair with the community.

The town brings in an average 24 million dollars in revenue each year, and since much of the town's profits are based on the sale of alpine and Scandinavian gifts, the opportunity for a company such as Visigoth is almost unmatched. In 2002 a town meeting of the principal shop owners in Leavenworth was held concerning the present contracts with the community's main importer, Deutsche Gifts. The previously good relations between the community and the import firm had soured due to rising costs and unreliable service. The result of the meeting was to look for another importer better able to meet the local needs once the current contract expired. Mr. Frank Curtiss successfully bid for the contract, and the idea of Visigoth was born.

Exports

Visigoth has made arrangements to export produce from member farms established by the Puget Consumers Co-op Farmland Fund. The Fund works to secure and preserve threatened farmland in Washington State and move it into organic production. The Fund's primary focus is on large, functional landscapes of local, regional and statewide importance so protection can be extended to biodiversity and wildlife habitat as well as to farmers and farming communities. The Fund is an independent, community-supported non-profit land trust founded in 1999. The Fund has already rescued a half dozen farms within the state and plans to increase these projects so that by 2007 there will be at least 36 farms that come under the fund's protection. In addition, approximately 60 farms belonging to the Co-op have expressed interest in contracting with Visigoth.

4.2.1 Competition and Buying PatternsCompetition

Competition includes all potential importing firms that serve small enterprises such as farms and specialty gift shops. Practically speaking, this means the largest import/export firms such as Fisher-Mills, Eagle Distributing, and other large, nationwide companies will not compete with us. Most other companies tend to be regionally focused. The foreign trade industry is highly fragmented, with a large number of small companies that mainly cater to small firms and a few large companies that seek the largest contracts from companies such as Microsoft, GM, etc. This makes competition within the industry very intense. Through our niche strategy we intend to avoid competition and its drawbacks such as price wars, etc.

Buying patterns and needs

Companies usually enter into contracts with import/export firms based on a firm's reputation for professionalism and service. With no proven track record, a star-up import/export company obtains a "good reputation" through its personnel, people who have experience in other businesses in the industry. Price, reliability and scope are the driving factors for accepting contracts, especially if the import/export company is small.Our niche clients have different needs than most other firms. Our import clients need to have relatively small numbers of expensive and fragile products moved

from Europe to local warehouses in Wenatchee and Leavenworth. Most of these items are handmade so handling is a special issue. In addition, the small companies and shops in Leavenworth depend a great deal on their import agents to alert them to new and unique product introductions overseas.On the other end, the farms belonging to the PCC need to keep export costs as low as possible since many of them are start-up ventures with initially high overhead. Quite a few trade firms do not accept these types of contracts and leave it to the co-ops to create their own exporting ventures. This can lead to higher costs as most co-ops do not have the core competencies in import/export issues.

Strategy and Implementation Summary

Our firm's business strategy is to enter into a focused or niche market where it can offer a higher standard of service to its specialized clients. This will allow us to charge a slightly higher fees to our clients for these differentiated services.

5.1 Sales Strategy

Visigoth intends to develop sales by establishing close contact with potential clients. We will begin by offering a free consultation in terms of overall cost, service, and delivery. In addition, we intend to promote our management team's extensive experience both with German gift manufacturers and artisans, and our knowledge of the produce trade environment to draw in our target market segments.

5.1.1 Sales Forecast

Sales are based on the various contracts we anticipate acquiring in the two market segments. Revenues consist of a commission rate charged to our clients based on the dollar amount of goods moved and include projected average costs plus an undisclosed profit margin. Sales are expected to vary somewhat month to month, but are only slightly cyclical on the import end. The exports are expected to be highly cyclical. The company does not have any significant direct costs of sales.

Sales ForecastFY 2004 FY 2005 FY 2006

SalesLeavenworth imports £127,000 £145,000 £189,000 PCC farm exports £33,000 £56,000 £77,000 Total Sales £160,000 £201,000 £266,000

Direct Cost of Sales FY 2004 FY 2005 FY 2006Leavenworth imports £0 £0 £0 PCC farm exports £0 £0 £0 Subtotal Direct Cost of Sales £0 £0 £0

5.2 Marketing Strategy

Visigoth intends to leverage its contacts with the Leavenworth city council and the Puget Consumers Co-op in order to draw in new clients. The city council works very closely with local businesses in facilitating all aspects of business management in order to keep tourism flowing. Because of this, Visigoth has already signed contracts

with nine Leavenworth businesses and we expect to gain a dominant market share within the town. The PCC will be recommending Visigoth Imports, Inc. to its new farmers as long as we can keep shipping costs within accepted limits. Therefore we expect to have a large proportion of member farmers use our services.

Management Summary

Company officers include our President, Mr. Frank Curtiss, our head of exports Ms. Hannah Mills, and our head of imports, Mr. Steve Iltheus.

6.1 Personnel

Visigoth's management brings to the company strong capabilities in all aspects of trade relations, logistics, contracting and selling.Mr. Frank Curtiss is a former master distributor with Fisher-Mills, one of the nation's largest import/export firms. During his 10 years with Fisher-Mills he worked exclusively on trade contracts with Germany. In 1996 Mr. Curtiss accepted a position with Eagle Distributors as a department head. By introducing American wines into eastern Europe and the former Soviet republics he demonstrated his flair for opening new markets. Mr. Curtiss has an MBA in finance and an BS in International Relations.Ms. Hannah Mills graduated with honors from the University of Oregon, having earned a bachelors degree in marketing in 1988. From 1988-1994 Ms. Mills worked for Stanford Distributors working with canning companies in the midwest region. In 1995 she went to work for Anderson Consulting in their International Trade division. Four years later, Ms. Mills became vice president of A.V. Imports.

Personnel PlanFY 2004 FY 2005 FY 2006

Mr. Frank Curtiss - President £36,000 £36,000 £45,000 Mrs. Hannah Mills £36,000 £36,000 £45,000 Mr. Steve Iltheus £24,000 £36,000 £36,000 Other £0 £0 £0 Total People 3 3 3

Total Payroll £96,000 £108,000 £126,000

Financial Plan

Our financial plan anticipates one year of negative profits as we gain sales volume. We have enough investment to cover these losses, and have an additional credit line available if sales do not match predictions.

7.1 Important Assumptions

We are assuming approximately 50% sales on credit and average interest rates of 10%. These are considered to be conservative in case our predictions are erroneous. Since Visigoth is an import/export broker, the firm has no variable costs associated with it.

General AssumptionsFY 2004 FY 2005 FY 2006

Plan Month 1 2 3Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 30.00% 30.00% 30.00% Other 0 0 0

7.2 Break-even Analysis

Our break-even analysis is based on the assumptions that our gross margin is 100%. In other words, we will have insignificant direct cost of sales. Since each market segment is so completely different, it is difficult to assign an average per unit revenue figure. However, it is believed that during the first three years, average revenue per unit per month will be about £4.00, due to the fact that, initially, we may be working with smaller companies projects. We expect that about 3,500 units per month will guarantee break even.

Break-even Analysis

Monthly Revenue Break-even £14,067

Assumptions:Average Percent Variable Cost 0% Estimated Monthly Fixed Cost £14,067

7.3 Projected Profit and Loss

The following table itemizes our revenues and associated costs. We expect to be paying higher costs in marketing and advertising than other companies as we attempt to build sales volume. We expect monthly profits to begin in April 2004 and yearly profits to occur in 2005.

Pro Forma Profit and LossFY 2004 FY 2005 FY 2006

Sales £160,000 £201,000 £266,000 Direct Cost of Sales £0 £0 £0 Other Costs of Sales £0 £0 £0 Total Cost of Sales £0 £0 £0

Gross Margin £160,000 £201,000 £266,000 Gross Margin % 100.00% 100.00% 100.00%

ExpensesPayroll £96,000 £108,000 £126,000 Sales and Marketing and Other Expenses £8,400 £8,000 £8,000

Depreciation £0 £0 £0 Rent £12,000 £12,000 £13,000 Utilities £3,600 £3,600 £4,000

Insurance £3,000 £3,000 £3,000 Payroll Taxes £14,400 £16,200 £18,900 Travel £24,200 £12,000 £10,000 Other £7,200 £8,000 £10,000

Total Operating Expenses £168,800 £170,800 £192,900

Profit Before Interest and Taxes (£8,800) £30,200 £73,100 EBITDA (£8,800) £30,200 £73,100 Interest Expense £2,035 £1,820 £1,600 Taxes Incurred £0 £8,514 £21,450

Net Profit (£10,835) £19,866 £50,050 Net Profit/Sales -6.77% 9.88% 18.82%

7.4 Projected Cash Flow

The following is our cash flow table and chart. We do not expect to have any short-term cash flow problems even though we will be operating at a loss for the first year. Our short-term loan will be repaid in three equal payments in 2004-2006. Our long-term loan will be paid off in ten years.

Pro Forma Cash FlowFY 2004 FY 2005 FY 2006

Cash Received

Cash from OperationsCash Sales £80,000 £100,500 £133,000 Cash from Receivables £62,767 £96,084 £125,999 Subtotal Cash from Operations £142,767 £196,584 £258,999

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 £0 £0 £0 Subtotal Cash Received £142,767 £196,584 £258,999

Expenditures FY 2004 FY 2005 FY 2006

Expenditures from OperationsCash Spending £96,000 £108,000 £126,000 Bill Payments £70,247 £73,711 £88,568 Subtotal Spent on Operations £166,247 £181,711 £214,568

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out £0 £0 £0 Principal Repayment of Current Borrowing £0 £2,000 £0

Other Liabilities Principal Repayment £0 £1,000 £1,000 Long-term Liabilities Principal Repayment £1,200 £1,200 £1,200

Purchase Other Current Assets £0 £0 £0 Purchase Long-term Assets £0 £0 £0 Dividends £4,000 £10,000 £42,000 Subtotal Cash Spent £171,447 £195,911 £258,768

Net Cash Flow (£28,680) £673 £231 Cash Balance £9,869 £10,543 £10,774

7.5 Projected Balance Sheet

The following table is the Project Balance Sheet for Visigoth Imports.

Pro Forma Balance SheetFY 2004 FY 2005 FY 2006

Assets

Current AssetsCash £9,869 £10,543 £10,774 Accounts Receivable £17,233 £21,649 £28,650 Other Current Assets £15,000 £15,000 £15,000 Total Current Assets £42,103 £47,192 £54,424

Long-term AssetsLong-term Assets £10,000 £10,000 £10,000 Accumulated Depreciation £0 £0 £0 Total Long-term Assets £10,000 £10,000 £10,000 Total Assets £52,103 £57,192 £64,424

Liabilities and Capital FY 2004 FY 2005 FY 2006

Current LiabilitiesAccounts Payable £6,588 £6,011 £7,393 Current Borrowing £9,000 £7,000 £7,000 Other Current Liabilities £8,000 £7,000 £6,000 Subtotal Current Liabilities £23,588 £20,011 £20,393

Long-term Liabilities £10,800 £9,600 £8,400 Total Liabilities £34,388 £29,611 £28,793

Paid-in Capital £53,750 £53,750 £53,750 Retained Earnings (£25,200) (£46,035) (£68,169)Earnings (£10,835) £19,866 £50,050 Total Capital £17,715 £27,581 £35,631 Total Liabilities and Capital £52,103 £57,192 £64,424

Net Worth £17,715 £27,581 £35,631

7.6 Business Ratios

We have included industry standard ratios from the trade consultant industry for comparison. Our NAICS industry class is currently Miscellaneous Nondurable Goods Merchant Wholesale - 424990. Our projections indicate a healthy company that will be able to obtain and retain long-term profitability.

Ratio Analysis

FY 2004 FY 2005 FY 2006 Industry Profile

Sales Growth 0.00% 25.63% 32.34% 6.98%

Percent of Total AssetsAccounts Receivable 33.08% 37.85% 44.47% 26.80% Other Current Assets 28.79% 26.23% 23.28% 43.95% Total Current Assets 80.81% 82.52% 84.48% 75.76% Long-term Assets 19.19% 17.48% 15.52% 24.24% Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 45.27% 34.99% 31.65% 31.78% Long-term Liabilities 20.73% 16.79% 13.04% 17.26% Total Liabilities 66.00% 51.77% 44.69% 49.04% Net Worth 34.00% 48.23% 55.31% 50.96%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00% Gross Margin 100.00% 100.00% 100.00% 100.00% Selling, General & Administrative Expenses 106.77% 90.12% 81.18% 85.31%

Advertising Expenses 0.00% 0.00% 0.00% 1.02% Profit Before Interest and Taxes -5.50% 15.02% 27.48% 1.90%

Main RatiosCurrent 1.78 2.36 2.67 1.88 Quick 1.78 2.36 2.67 1.48 Total Debt to Total Assets 66.00% 51.77% 44.69% 3.41% Pre-tax Return on Net Worth -61.16% 102.90% 200.67% 55.78% Pre-tax Return on Assets -20.80% 49.62% 110.98% 7.72%

Additional Ratios FY 2004 FY 2005 FY 2006Net Profit Margin -6.77% 9.88% 18.82% n.aReturn on Equity -61.16% 72.03% 140.47% n.a

Activity RatiosAccounts Receivable Turnover 4.64 4.64 4.64 n.aCollection Days 56 71 69 n.aAccounts Payable Turnover 11.36 12.17 12.17 n.aPayment Days 28 31 27 n.aTotal Asset Turnover 3.07 3.51 4.13 n.a

Debt RatiosDebt to Net Worth 1.94 1.07 0.81 n.aCurrent Liab. to Liab. 0.69 0.68 0.71 n.a

Liquidity RatiosNet Working Capital £18,515 £27,181 £34,031 n.aInterest Coverage -4.32 16.59 45.69 n.a

Additional RatiosAssets to Sales 0.33 0.28 0.24 n.aCurrent Debt/Total Assets 45% 35% 32% n.aAcid Test 1.05 1.28 1.26 n.aSales/Net Worth 9.03 7.29 7.47 n.aDividend Payout 0.00 0.50 0.84 n.a

Appendix

Sales ForecastJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

SalesLeavenworth imports

0%

£11,000

£13,000

£13,000

£12,000

£10,000

£8,000

£12,000

£9,000

£8,000

£9,000

£10,000

£12,000

PCC farm exports

0% £0 £0 £0 £0 £0 £2,00

0 £4,000

£4,000

£5,000

£5,000

£6,000

£7,000

Total Sales

£11,000

£13,000

£13,000

£12,000

£10,000

£10,000

£16,000

£13,000

£13,000

£14,000

£16,000

£19,000

Direct Cost of Sales

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Leavenworth imports

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

PCC farm exports

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Subtotal Direct Cost of Sales

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Personnel PlanJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Mr. Frank Curtiss - President

0%

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

Mrs. Hannah Mills

0%

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

£3,000

Mr. Steve Iltheus

0%

£2,000

£2,000

£2,000

£2,000

£2,000

£2,000

£2,000

£2,000

£2,000

£2,000

£2,000

£2,000

Other 0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

%Total People

0% 3 3 3 3 3 3 3 3 3 3 3 3

Total Payroll

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

General AssumptionsJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

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

Pro Forma Profit and LossJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Sales £11,000

£13,000

£13,000

£12,000

£10,000

£10,000

£16,000

£13,000

£13,000

£14,000

£16,000

£19,000

Direct Cost of Sales

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Other Costs of Sales

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Total Cost of Sales

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Gross Margin

£11,000

£13,000

£13,000

£12,000

£10,000

£10,000

£16,000

£13,000

£13,000

£14,000

£16,000

£19,000

Gross Margin %

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Expenses

Payroll £8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

Sales and Marketing and Other Expenses

£1,000

£1,000

£1,000

£1,000

£1,000

£1,000 £500 £500 £500 £300 £300 £300

Depreciation £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Rent £1,000

£1,000

£1,000

£1,000

£1,000

£1,000

£1,000

£1,000

£1,000

£1,000

£1,000

£1,000

Utilities £300 £300 £300 £300 £300 £300 £300 £300 £300 £300 £300 £300 Insurance £250 £250 £250 £250 £250 £250 £250 £250 £250 £250 £250 £250

Payroll Taxes

15%

£1,200

£1,200

£1,200

£1,200

£1,200

£1,200

£1,200

£1,200

£1,200

£1,200

£1,200

£1,200

Travel 15%

£1,200

£3,000

£1,000

£2,000

£2,000

£3,000

£2,000

£1,000

£2,000

£3,000

£1,000

£3,000

Other £600 £600 £600 £600 £600 £600 £600 £600 £600 £600 £600 £600

Total Operating Expenses

£13,550

£15,350

£13,350

£14,350

£14,350

£15,350

£13,850

£12,850

£13,850

£14,650

£12,650

£14,650

Profit Before Interest and Taxes

(£2,550)

(£2,350)

(£350)

(£2,350)

(£4,350)

(£5,350)

£2,150 £150 (£850

)(£650)

£3,350

£4,350

EBITDA

(£2,550)

(£2,350)

(£350)

(£2,350)

(£4,350)

(£5,350)

£2,150 £150 (£850

)(£650)

£3,350

£4,350

Interest Expense £174 £173 £173 £172 £171 £170 £169 £168 £168 £167 £166 £165

Taxes Incurred £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Net Profit

(£2,724)

(£2,523)

(£523)

(£2,522)

(£4,521)

(£5,520)

£1,981 (£18) (£1,0

18)(£817)

£3,184

£4,185

Net Profit/Sales

-24.77%

-19.41%

-4.02%

-21.01%

-45.21%

-55.20%

12.38%

-0.14%

-7.83%

-5.83%

19.90%

22.03%

Pro Forma Cash FlowJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Cash Received

Cash from OperationsCash Sales

£5,500

£6,500

£6,500

£6,000

£5,000

£5,000

£8,000

£6,500

£6,500

£7,000

£8,000

£9,500

Cash from Receivables

£0 £183 £5,533

£6,500

£6,483

£5,967

£5,000

£5,100

£7,950

£6,500

£6,517

£7,033

Subtotal Cash from Operations

£5,500

£6,683

£12,033

£12,500

£11,483

£10,967

£13,000

£11,600

£14,450

£13,500

£14,517

£16,533

Additional Cash ReceivedSales 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 Liabiliti

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

esSales 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 £0 £0 £0 £0 £0 £0 £0 £0

Subtotal Cash Received

£5,500

£6,683

£12,033

£12,500

£11,483

£10,967

£13,000

£11,600

£14,450

£13,500

£14,517

£16,533

Expenditures Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Expenditures from OperationsCash Spending

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

Bill Payments

£2,191

£5,784

£7,457

£5,556

£6,522

£6,554

£7,470

£5,986

£5,052

£6,044

£6,750

£4,882

Subtotal Spent on Operations

£10,191

£13,784

£15,457

£13,556

£14,522

£14,554

£15,470

£13,986

£13,052

£14,044

£14,750

£12,882

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Principal £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Repayment of Current BorrowingOther Liabilities Principal Repayment

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Long-term Liabilities Principal Repayment

£100 £100 £100 £100 £100 £100 £100 £100 £100 £100 £100 £100

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 £4,00

0 £0 £0 £0 £0

Subtotal Cash Spent

£10,291

£13,884

£15,557

£13,656

£14,622

£14,654

£15,570

£18,086

£13,152

£14,144

£14,850

£12,982

Net Cash Flow

(£4,791)

(£7,201)

(£3,523)

(£1,156)

(£3,138)

(£3,687)

(£2,570)

(£6,486)

£1,298

(£644)

(£333)

£3,551

Cash Balance

£33,759

£26,558

£23,035

£21,879

£18,741

£15,053

£12,484

£5,998

£7,296

£6,652

£6,319

£9,869

Pro Forma Balance SheetJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Assets

Starting Balances

Current Assets

Cash £38,550

£33,759

£26,558

£23,035

£21,879

£18,741

£15,053

£12,484

£5,998

£7,296

£6,652

£6,319

£9,869

Accounts Receivable

£0 £5,500

£11,817

£12,783

£12,283

£10,800

£9,833

£12,833

£14,233

£12,783

£13,283

£14,767

£17,233

Other Current Assets

£15,000

£15,000

£15,000

£15,000

£15,000

£15,000

£15,000

£15,000

£15,000

£15,000

£15,000

£15,000

£15,000

Total Current Assets

£53,550

£54,259

£53,375

£50,818

£49,163

£44,541

£39,887

£40,317

£35,231

£35,079

£34,935

£36,085

£42,103

Long-term AssetsLong-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 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Total 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

Total Assets

£63,550

£64,259

£63,375

£60,818

£59,163

£54,541

£49,887

£50,317

£45,231

£45,079

£44,935

£46,085

£52,103

Liabilities and Capital

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Current LiabilitiesAccounts Payable

£2,000

£5,533

£7,273

£5,338

£6,304

£6,303

£7,269

£5,819

£4,851

£5,817

£6,589

£4,655

£6,588

Current Borrowing

£9,000

£9,000

£9,000

£9,000

£9,000

£9,000

£9,000

£9,000

£9,000

£9,000

£9,000

£9,000

£9,000

Other Current Liabilities

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

£8,000

Subtotal Current Liabilities

£19,000

£22,533

£24,273

£22,338

£23,304

£23,303

£24,269

£22,819

£21,851

£22,817

£23,589

£21,655

£23,588

Long-term Liabilities

£12,000

£11,900

£11,800

£11,700

£11,600

£11,500

£11,400

£11,300

£11,200

£11,100

£11,000

£10,900

£10,800

Total Liabilities

£31,000

£34,433

£36,073

£34,038

£34,904

£34,803

£35,669

£34,119

£33,051

£33,917

£34,589

£32,555

£34,388

Paid-in Capital

£53,750

£53,750

£53,750

£53,750

£53,750

£53,750

£53,750

£53,750

£53,750

£53,750

£53,750

£53,750

£53,750

Retained Earnings

(£21,200)

(£21,200)

(£21,200)

(£21,200)

(£21,200)

(£21,200)

(£21,200)

(£21,200)

(£25,200)

(£25,200)

(£25,200)

(£25,200)

(£25,200)

Earnings £0 (£2,7

24)(£5,248)

(£5,770)

(£8,292)

(£12,813)

(£18,333)

(£16,352)

(£16,370)

(£17,388)

(£18,204)

(£15,020)

(£10,835)

Total Capital

£32,550

£29,826

£27,303

£26,780

£24,258

£19,738

£14,218

£16,198

£12,180

£11,163

£10,346

£13,530

£17,715

Total Liabilities and Capital

£63,550

£64,259

£63,375

£60,818

£59,163

£54,541

£49,887

£50,317

£45,231

£45,079

£44,935

£46,085

£52,103

Net Worth

£32,550

£29,826

£27,303

£26,780

£24,258

£19,737

£14,217

£16,198

£12,180

£11,162

£10,346

£13,530

£17,715