Sample Business Plan

FAYSEEM B.V.B.A IS A BRANCH OF FAYSEEM ENTERPRISES

2012

Fayseem B.V.B.A

Specialist In Sport Goods & Leather Related Garments

Retail & Wholesale

Legal Page

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by Fayseem B.V.B.A in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of Fayseem B.V.B.A.

It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by the reader may cause serious harm or damage to Fayseem B.V.B.A.

Upon request, this document is to be immediately returned to Fayseem B.V.B.A.

___________________ Signature

___________________ Name (typed or printed)

___________________ Date

This is a business plan. It does not imply an offering of securities.

FAYSEEM B.V.B.A Business Plan

Page 1

Table Of Contents 1.0 Executive Summary ....................................................................................................................................... 2

1.1 Objectives ................................................................................................................................................. 3 1.2 Mission ...................................................................................................................................................... 3 1.3 Keys to Success ......................................................................................................................................... 3

2.0 Company Summary........................................................................................................................................ 4 2.1 Company Ownership .................................................................................................................................. 4 2.2 Start-up Summary ..................................................................................................................................... 4

3.0 Products ........................................................................................................................................................ 6 4.0 Market Analysis Summary .............................................................................................................................. 7

4.1 Market Segmentation ................................................................................................................................. 8 Chart 4.1: Market Analysis (Pie) .................................................................................................................. 10

4.2 Target Market Segment Strategy ............................................................................................................... 10 4.3 Industry Analysis ..................................................................................................................................... 11

4.3.1 Competition and Buying Patterns ........................................................................................................ 11 5.0 Strategy and Implementation Summary ........................................................................................................ 12

5.1 SWOT Analysis ......................................................................................................................................... 12 5.1.1 Strengths.......................................................................................................................................... 12 5.1.2 Weaknesses ...................................................................................................................................... 12 5.1.3 Opportunities .................................................................................................................................... 12 5.1.4 Threats ............................................................................................................................................. 13

5.2 Competitive Edge ..................................................................................................................................... 13 5.3 Marketing Strategy ................................................................................................................................... 13 5.4 Sales Strategy ......................................................................................................................................... 14

5.5.0 Sales Forecast ................................................................................................................................... 15 5.6 Milestones ............................................................................................................................................... 17

Table 5.6.1: Milestones .............................................................................................................................. 17 Chart 5.6.2: Milestones .............................................................................................................................. 17

6.0 Management Summary ................................................................................................................................ 18 6.2 Exit Strategy............................................................................................................................................ 19

6.2.1 Assess your options ........................................................................................................................... 19 6.2.2 Sticking with Survival ........................................................................................................................ 20 6.2.3 Mergers ............................................................................................................................................ 20 6.2.4 Close ................................................................................................................................................ 21

7.0 Financial Plan............................................................................................................................................... 22 Table 7.1: Start-up Funding ........................................................................................................................ 22

7.1 Break-even Analysis ................................................................................................................................. 23 Table 7.2: Break-even Analysis ................................................................................................................... 23

7.3 Projected Profit and Loss .......................................................................................................................... 24 Table 7.3.1: Profit and Loss ........................................................................................................................ 24 Chart 7.3.2: Profit Monthly ......................................................................................................................... 25 Chart 7.3.4: Profit Yearly ............................................................................................................................ 25 Chart 7.4: Gross Margin Monthly ................................................................................................................. 26 Chart 7.5: Gross Margin Yearly ................................................................................................................... 26

7.6 Projected Cash Flow ................................................................................................................................. 27 Chart 7.6.1: Cash ...................................................................................................................................... 27 Table 7.6.2: Cash Flow ............................................................................................................................... 28

7.7 Projected Balance Sheet ........................................................................................................................... 29 Table 7.7.1: Balance Sheet ......................................................................................................................... 29

Table 7.9: Sales Forecast ..................................................................................................................................... 1 Table 7.10: Personnel .......................................................................................................................................... 1 Table 7.11: Profit and Loss ................................................................................................................................... 1 Table 7.13: Balance Sheet .................................................................................................................................... 3


Page 2

1.0 Executive Summary

The Board of Director has decided to open a branch in Brussels, Belgium to ensure that the company expand its brand in the euro area. The new branch will be called Fayseem B.V.B.A. The mandate of the business is to sell sport goods and leather related products.

The reason for the board deciding to establish a branch in Brussels is due to the following factors: Strategic Location Infrastructure Smart Taxation Policy Quality of the Work Force Helpful Authorities Quantity of Customers

Belgium is a suitable geographical location; it has a multicultural population and a good history accounts for the country’s wide international character. As a crossroad and centre of trade for centuries, Belgium has preserved the best aspects of the Latin, German and Anglo-Saxon culture. As a result, it is a very modern country with highly developed infrastructure and an excellent standard of living. Moreover, the capital city of Brussels is like no other. As the decision making heart of Europe, it has become an international capital where worldwide leaders meet to bring influence and do business, meanwhile it remains small enough to allow its inhabitants to enjoy the advantages of an average-sized city.

The intention to start this business in Brussels is feasible because the brand has already been established in Africa and the middle east, and the directors believe that the company’s natural and organic way to expand the business further is to move into Europe and they believe that establishing Fayseem B.V.B.A in Brussels is most important in order for the company to stamp its mark in Europe. This is also with the intention of adding more retail stores in Paris, London and Milan within 3 years.

This new branch will help Belgium’s economy by: Providing services & goods to the country’s consumers Provide jobs for the economy Provide an initial €200,000 investment to the economy and possibly further investments Add tax to the country


Page 3

1.1 Objectives

Fayseem B.V.B.A primary objective is to open a branch in the heart of Brussels in order to:

Establish its brand in Europe Providing cheap quality sports good and leather related products to the Belgian nation Enhance sales growth

1.2 Mission

To become the sports equipment supplier of choice based on product expertise, price, quality, and level of service, by developing a long term relationship with our customers. Become the "family expert" for sporting goods and leather related products by treating customers like friends and family and by maintaining an experienced, knowledgeable, and caring staff that can help the customer make the right purchase for them.

1.3 Keys to Success

The keys to success in Fayseem B.V.B.A business are:

1. Offering items of a high quality-value which are not available everywhere. This is essential for maintaining the niche market sectors mentioned in the mission statement.

2. Provide customers with top-notch personalised customer services in an atmosphere of good hospitality.

3. Advertise and promote in areas that our target customer base will learn about our store. 4. Continuously review our inventory and sales and adjust our inventory levels accordingly. 5. Provide for 100% satisfaction of our customers and vendors. Both are very valuable to us and we

will design a customer care plan to manage complaints, implement employee and customer feedback, manage supplier accounts, and predict potential conflicts.

6. Establish a visible, accessible and welcoming storefront and website to position us as the premier choice for our products and services within the marketplace and beyond.

Ensure through daily management practices the values of Fayseem B.V.B.A mission are followed so that a successful and growth-oriented business is developed and maintained.


Page 4

2.0 Company Summary

The Board of Directors of Fayseem Enterprises Sialkot, Pakistan has decided to open a new branch located in Brussels, Belgium with the aim to establish the brand in the Euro area. The name of the business will be called Fayseem B.V.B.A and its mandate will be to sell quality sports products and leather related garments specialising in footballs, volleyball, boxing equipment, apparel and accessories all imported from major manufacturers in China, Pakistan and India.

The company’s registered address in Brussels will be 35 Rue de la Charité 1210 Brussels, which is an urban area of Brussels to ensure that the products it sells are appealing to that community.

The quality of our customer services, the lower price point and the lack of competition in the city will allow us to quickly become the major sporting goods retail store to go to for the local individual athlete and various teams, leagues and schools. Fayseem B.V.B.A, while part of the world change, will be family owned and managed. Fayseem B.V.B.A will also have the ability to sell goods on a wholesale basis to various agents within the country to ensure that the company brand is well established.

The intention to start this business in Brussels is because the brand has already been established in Africa and the middle east, the directors believe that the company’s natural progression is to expand the business into Europe and they believe that by establishing Fayseem B.V.B.A in Brussels, the company would stamp its mark in Europe, with the intention of adding more retail stores in Paris, London and Milan within 3 years. This in turn will help the country’s economy by the amount of employees that Fayseem B.V.B.A would employ during the year. The amount of investment (€200,000) that the company will bring to the country to setup the business and the company will ensure that all its accounting and tax affairs are adhered to and paid to the Belgian government.

2.1 Company Ownership

Fayseem B.V.B.A is a branch of Fayseem Enterprises (Pakistan). Fayseem B.V.B.A will be managed by Mr Fayseem Baig who is one of the directors of the mother company with 65% stake. Mr. Baig will have the full mandate of the company to manage and run the company for the foreseeable future to help establish Fayseem B.V.B.A branch to be located in Brussels.

2.2 Start-up Summary

The Start-up costs include:

Store layout (the store and operations) Inventory control, (computers and cash registers) The fixtures & fittings (including displays and appealing store designs) Opening inventory Contingence funds

Start-up costs will be financed Primarily by Fayseem Enterprises. The start-up chart and table show the distribution of the planned funds.


Page 5

Table 2.1: Start-up

Start-up Requirements Start-up Expenses Accountant €1,000 Legal €2,500 Stationery etc. €1,000 Artistic / Design & Assistance €2,500 Training €3,000 Insurance €600 Security Deposit & 1st Month Rent €4,000 Pre-opening Marketing €5,000 Fixtures & Fittings €4,000 Computer €2,000 Miscellaneous/ Contingency €1,000 Total Start-up Expenses €26,600 Start-up Assets Cash Required €27,400 Start-up Inventory €75,000 Other Current Assets €1,000 Long-term Assets €70,000 Total Assets €173,400 Total Requirements €200,000

Chart 2.1: Start-up


Page 6

3.0 Products

Fayseem B.V.B.A will sell the latest fashion brand sport goods, apparel, equipment’s and accessories. Consumers will be educated as to the proper size, style, fit and design needed for their particular use. Initially, these sporting goods will be for sports such as football, softball, volleyball, basketball, baseball, boxing and other sports equipments.

The products will be manufactured by manufacturers in countries such as china, India and Pakistan. Inventory is tracked through our pros cash register and computerised tracking system. Each day, we will have the records of the style, size and quality of every item sold in the retail and internet stores.

The general list of initial products on offer will include the following:

Football Footballs, shoulder pads, knee pads, thigh pads, helmets and gloves

Volleyball Volleyballs, volleyball bags, portable scoreboard, knee pads, clipboard, volleyball carts.

Boxing Boxing gloves, boxing boots, boxing clothing, boxing head guards, boxing mitts, punch bags

Golf Synthetic putting greens, golf bags, golf clubs, gloves

Motorbike Assessors Motorbike gloves, motorbike jackets, helmets, leather clothing

Future Product Sport related products and leather garments

After the opening of the business, we will look to increase our product line laterally by offering additional product categories. Initially, this will be done to increase revenue in the months that are historically slower for Fayseem B.V.B.A. We will also significantly grow the existing football, volleyball, and boxing line within the first year.

We will evaluate introducing other sport products such as kick mitts, cycling gloves, driving gloves, fattish leather flagship tops & fashion trousers, bracelets amongst other sport related leather goods.


Page 7

4.0 Market Analysis Summary

The sporting goods market as a whole is a multi-billion industry, with retail sales of sporting goods reaching €45.8 billion. Sales are expected to grow by 10% in 2012 to €50.38 Billion. The personal consumption of sporting goods is forecasted to grow at an annual compounded rate of 5.8% between 2004 to 2012. Retail sales at sporting goods stores are very sensitive to the health of the economy, because most sports are a leisure activity, spending on sporting goods therefore correlates strongly with consumer confidence and level of the personal disposable income.

The sporting goods market has a myriad of segments that can be categorised by the product, sport, geography, behaviour, participation, organisation and standard demographics. Demographics play a big part in sport goods sales, since population growth and age groups distinctly impact sport participation.

Our main sales categories break down customer groups by sport participation, i.e., for which sport(s) the person is buying the equipment because the customers have needs based on the specific sport(s) in which they participate. For example, baseball participants are looking specifically for the baseball equipment, uniforms, trainings aids, etc. We will initially focus on players of basketball, softball, volleyball and football.

However, in terms of marketing, we will take different approaches to attracting the attention of potential customers based on their relation to the sport players (customer type) and on their buying method or location be it retail or online.

Customer Type:

These customers have needs based upon the type of role they play in regards to the sports participants. For example, many times, those making sporting goods purchases are not those actually participating in the sport, but instead are parents, athletic directors, and coaches, therefore, these segments include: individual participants, parents, league representative, independent team coaches, school athletic coaches and directors, sports performance businesses.

Retail or online:

Retail stores, geographic and demographic divisions are critical, especially in understanding the different needs of our local and online customers. The local and online market appeals to soccer mums who look in the local paper. The convenience factor is a nearby location with great customer service, and a different way online, where convenience may come in the form of free shipping for larger orders, or free telephone assistance in choosing a size.

We believe that Fayseem B.V.B.A, with its multiple channels of operation- the retail and internet stores - is well positioned to strategically attract the market. We will first look to increase growth in the market segments we currently have and then look to aggressively penetrate and increase sales to other sports participant segments, especially those that cater to the athletic tastes of aging baby boomers. There is great opportunity for growth in the "customer type" segments, we initially look to


Page 8

increase our exposure and products to the metropolitan area. We will approach the 256 million participants nationwide through the internet store, which will be enhanced with an improved user experience and an aggressive web marketing strategy.

4.1 Market Segmentation

Fayseem B.V.B.A market is both nationwide via the internet and local, via the retail store, in the metropolitan region of Brussels. Market segmentation for Fayseem B.V.B.A has several layers and can be analysed and targeted from many different angles. The targeted customer market will be segmented in multiple layers as follows:

Sports Participation- These customers have needs based on the specific sport(s) in which they participate. For example, baseball equipment, training aids...etc. The National Sport Goods Association (NSGA) wrote in a report on sports participation for those 7 years old and older, that there were over 1.43 million sport participants per year. These are the major sports participation segments initially for Fayseem B.V.B.A.

Customer Types - These customer have needs based upon the type of role they play in regards to the sports participants. For example, many times those making sporting goods purchases are not those actually participating in the sport, but instead are parents, athletic directors and coaches.

Individual Participants - these are the actual sports participants. Typically, these would be adult participants or older youth who have the technical knowledge and disposable income to purchase sporting goods equipment and leather related products on their own.

Parents - Parents buying on their own, or are present during the purchase of over 90% of sporting goods purchases for youth’s ages 5-18 years. This segment can be heavily influenced by their children in regards to the "hot" or best products. They are also the segment in most need of technical assistance from sporting goods store staff.

League Representatives - Members of adult and youth athletic associations are responsible for league equipment purchases as outfit for their league teams. Long-term relationships and sponsorship participation are important to this segment. They usually have technical proficiency and want to deal with someone that is on or above their technical level of expertise. This segment is usually well informed about recent product offerings and can be a solid channel for introducing new products. They are also marketing channel to all the participants and parents involved with their league.

Independent Team Coaches - Typically those organising and coaching adult sports teams or individual advanced youth team, they are responsible for the design and purchase of their individual team sports equipment.

School Athletic Coaches and Directors - Public and private middle and high school athletic directors provide outfit for their teams with high quality sporting goods equipment. Establishing, relationships with this segment is difficult, but can be lucrative if all of the schools sporting goods needs can be met.


Page 9

Sports Performance Businesses - These are organisations that sell services to enhance the participant's performance in his or her sport. Many times, they operate recreational or training facilities and offer individual or team training programs. Selling equipment to these facilities provides a channel, not only to facilities customers, but also to the many area school and league coaches, who are typically part-time employee of these companies.

Retail or Online - It is critical for us as a retail business to understand the demographics of our different sales bases.

National - The demography for the internet store is truly nationwide. The potential customers segments are all of the millions sports participants that have access to the internet. Products will be sold and shipped from this site to most of all the cities in Belgium.

Metropolitan Area of Brussels - The metropolitan area in Brussels has a population of over 1.8 million, making it the largest in Belgium. Brussels has grown from a 10th-century fortress town founded by a descendant of Charlemagne into a metropolis of more than one million inhabitants. We believe that establishing this business in the Brussels will provide a significantly impact in the communities especially for young people, in terms of accessibility, cheap price and quality of goods.

Table 4.1: Market Analysis

Market Analysis 2012 2013 2014 2015 2016 Potential Customers

Growth CAGR

Football Participants

-1% 500,000 495,000 490,050 485,150 480,299 -1.00%

Volleyball Participants

-1% 100,000 99,000 98,010 97,030 96,060 -1.00%

Baseball Participants

0% 50,000 50,000 50,000 50,000 50,000 0.00%

Boxing Participants -1% 200,000 198,000 196,020 194,060 192,119 -1.00% Cycling Participants

1% 100,000 101,000 102,010 103,030 104,060 1.00%

Other Sports Participants

11% 480,000 532,800 591,408 656,463 728,674 11.00%

Total 3.66% 1,430,000 1,475,800 1,527,498 1,585,733 1,651,212 3.66%


Page 10

Chart 4.1: Market Analysis (Pie)

4.2 Target Market Segment Strategy

The focus will initially be on the sports goods and sports related leather goods participant segment, because this is Fayseem B.V.B.A's current core competency and the large number of participants, both nationally and locally. We will look to leverage current Fayseem B.V.B.A relationships in this segment and move aggressively to increase sales and margins through a targeted marketing campaign.

We will then strategically target other participant segments to try and increase sales during the non-peak sports goods and sports related leather goods sales months. This is a huge opportunity for growth for the company, as evidenced by the large number of participants present in the other participant segments. Changing tastes in sports and strong sales of sporting goods in recent years partly reflect the changing composition of the Belgium population. In particular, the number of older (and more affluent) people has increased rapidly in the past decade. We believe quickly moving into at least one sport that serves this aging market is critical to meeting sales goals.

The "customer type" segments are currently under-served by Fayseem B.V.B.A. Due to the fact that the company has both an internet store and a retail store, it is important to understand the market segmentation and demography on both a national and local level. The internet store has made substantial sales with a weak user presentation experience and basically no web marketing strategy. The analysis of the number of sports participants nationwide, not to mention internationally, illuminates the fact that attracting this nationwide segment through a focused web strategy could bring significant returns.

Fayseem B.V.B.A will also approach the local community retail stores or local community markets to buy our products on an wholesale basis.


Page 11

4.3 Industry Analysis

The retail sports products and leather related garments are as vibrant as ever in Brussels because of the increase of urban culture. In addition, several large sport retailers have either opened several retail stores or are in the process of doing so. As a result, Fayseem B.V.B.A does not want to be left out in terms of this opportunity to ensure the growth of the business as well.

Successful retail stores are offering quality customers service and a strong assortment of new style of sport equipments. Unlike the other sport stores, Fayseem B.V.B.A will ensure that it has all sports equipments in-store, offered in all price ranges to ensure that the entire familiarity can be satisfied.

Our aggressive sales and marketing approach, and the quality and the cheap price point of our products will allow for anticipated significant increase in volumes.

4.3.1 Competition and Buying Patterns

According to the FESI the federation of the European sporting goods industry which is based in Brussels, Belgium has over 1800 sport goods manufacturers and retail outlets. However, the overall competitive environment remained fragmented in 2011, having long been in the hands of independent retails or small local chains. Chained outlets and wholesales such as Sports Direct, Lacoste, Diesel, Adidas and Puma maintained a relatively modest presence in Belgium.

The top five retailers accounted for a quarter of the overall store based retailing value sales in 2011, with all other players holding individual value share of 1% or less. Local retailers enjoy an impressive progression of their private label offering while non-fashion chains focusing strongly on even exclusively on private label such as Zara, H&M and Decathlon recorded above average growth. The scope for growth in retailing and wholesale is not positive in the short term due to the economical situation in the Euro area. However, Fayseem B.V.B.A is more focussed towards the long term, hence the reason for the company to invest in Belgium by opening a branch in it capital Brussels.


Page 12

5.0 Strategy and Implementation Summary

As a market follower, we know how to hold current customers and win a fair share of new customers. We would bring distinctive advantages to the target market in location, services and financing. Being positioned as a market follower, we overcome the major target of attack by challengers, by keeping manufacturing costs low and producing good quality products and providing high value services. We would also enter new markets as they open up and define a growth path that does not invite competitive retaliation.

5.1 SWOT Analysis

This is essential to understanding the different risk and rewards of any investment.

5.1.1 Strengths

Cost advantage Asset leverage Effective communication High Research and Development Innovation Market share follower Strong management team Strong brand equity Strong financial position Supply chain Pricing Reputation management

5.1.2 Weaknesses

Low Research and Development Minimum online presence Weak brand

5.1.3 Opportunities

Acquisitions Asset leverage Financial markets (raise money through debt, etc) Emerging markets and expansion abroad Innovation Online Product and services expansion Takeovers


Page 13

5.1.4 Threats

Cheaper technology Economic slowdown External changes (government, politics, taxes, etc) Exchange rate fluctuations Lower cost competitors or imports Maturing categories, products, or services Price wars Product substitution

5.2 Competitive Edge

Our main competitive edge is in providing outstanding services to customers. It may not be possible to openly compete with market leaders but by providing services through employees that are well equipped, trust can be built so that the competitive edge can be realised.

5.3 Marketing Strategy

Fayseem B.V.B.A looks to establish itself competitively as a unique sporting goods & leather related products provider in the local Brussels metropolitan area and internet market through its product offerings, the scope and level of services it provides, and the expertise of its employees.

Products:

Sourced through established and internationally-known manufacturers in China, Pakistan and India, the products offered provide a high level of quality and value to the consumer. The depth and range of products will be extensive, separating us from others in the marketplace.

Services:

Connecting with the customer is a key focus for Fayseem B.V.B.A. It is our desire that customers look to us as their valued resource to obtain the equipment, apparel and accessories that meet their needs. Our internet store will provide an avenue for prompt courteous service, and deliver products at reasonable shipping rates within expected time frames.

Employees:

Employees of Fayseem B.V.B.A will enjoy a friendly, fair and creative work environment, which respects diversity, new ideas and hard work. Development through experience and training will be a primary focus. It is our desire that employees are long-term, ensuring an expertise that will support the customer experience. Our employees will be a competitive advantage because their technical product knowledge will be superior to that of the competition. We want customers to form a relationship with a salesperson and ask for them by name when they return for a subsequent purchase.


Page 14

5.4 Sales Strategy

Fayseem B.V.B.A will approach retail sales from a sales person-customer relationship basis. All sales associates will be trained and encouraged to assist customers in a personal manner, utilising first names and asking the questions needed to provide the customers with the services they desire. The current Point-of-Sale system is already set up to collect the customer's name, address, and purchases. Gathering key customer information and seeking performance feedback on the products and services offered will assist us in the following ways:

Targeting our marketing efforts more effectively. Offering products and merchandising formats that will increase sales. Developing services that enhance the shopping experience. Training and developing sales associates in order to effectively service the customer. Increase awareness of Fayseem B.V.B.A within the retail consumer marketplace. Develop future sales opportunities that allow for continued growth of the business.

We want our customers to come back and specifically ask for a salesperson by name, because they were so satisfied with the service previously provided.

Currently, the format of the retail store separates the customer from the merchandise. The customer must be assisted by a salesperson or they cannot touch or browse the merchandise. We believe this leads to walk-outs when all the available salespeople are tied up assisting other customers. Usually, these customers will leave and never return. We plan to reformat the store so that the products will be showcased via lifestyle merchandising that inspires and promotes multiple purchases. We look to create a strong visual impact, creating an invitation to touch and purchase.

In order to provide the customer with the most up-to-date products on the market and a wide selection, we will attend sporting goods trade shows which showcase all of the products manufactured within the sporting goods industry. Attending shows and seminars will not only allow us to ensure our product mix is current and up-to-date, but will also provide us with fresh, new store merchandising and display ideas. To stay abreast of market and product trends, we will utilise trade publications, trade associations, and their associated websites.

It is the goal of Fayseem B.V.B.A to offer selection and quality at a value to the consumer. Our pricing structure will support a 15-25% gross margin and position us competitively within the marketplace. Seasonal promotional offers, discounts for end of season, and sale "events" will encourage additional sales and multiple unit purchases.

Employees of Fayseem B.V.B.A are an integral part of the shopping experience for the customer. All employees will be developed for growth and advancement, and compensated fairly with effective training that will enable them to confidently service and sell the customer.

Web sales are handled electronically via the internet store Shopping Cart or via phone sales representatives taking calls on the 800 telephone number. These sales representatives need to be thoroughly trained in product offerings and have good phone communication skills. They need to be trained to follow a general sales script when dealing with customers. Having good images of products and detailed product benefits and features on the website is critical to getting the customers to commit


Page 15

to an online purchase without talking with a sales representative. A functioning site search engine that helps customers locate product also needs to be added to the internet site.

5.5.0 Sales Forecast

The following table and chart give a round down on forecasted sales. We expect sales to grow 10% year on year .We have also accounted for a 1% increase year on year. We believe that this business is strong and that we can at least project to go over the sale revenue over the 2.1 million mark.

Table 5.5.1: Sales Forecast

Sales Forecast FY 2013 FY 2014 FY 2015 Sales Football €60,000 €66,000 €72,600 Goalkeeper Gloves €72,000 €79,200 €87,120 Shin Guards €18,000 €19,800 €21,780 Boxing Gloves €108,000 €118,800 €130,680 Punching Pad €19,200 €21,120 €23,232 Kick Mitts €9,000 €9,900 €10,890 Cycling Gloves €60,000 €66,000 €72,600 Leather Motorbike Jackets €210,000 €231,000 €254,100 Motorbike Gloves €540,000 €594,000 €653,400 Driving Gloves €240,000 €264,000 €290,400 Fetish Leather Fashion Top €192,000 €211,200 €232,320 Fetish Leather Fashion Trousers €192,000 €211,200 €232,320 Bracelets €18,000 €19,800 €21,780 Total Sales €1,738,200 €1,912,020 €2,103,222 Direct Cost of Sales FY 2013 FY 2014 FY 2015 Football €16,800 €18,480 €20,328 Goalkeeper Gloves €10,800 €11,880 €13,068 Shin Guards €6,000 €6,600 €7,260 Boxing Gloves €14,400 €15,840 €17,424 Punching Pad €6,000 €6,600 €7,260 Kick Mitts €1,050 €1,155 €1,271 Cycling Gloves €4,500 €4,950 €5,445 Leather Motorbike Jackets €67,200 €73,920 €81,312 Motorbike Gloves €240,000 €264,000 €290,400 Driving Gloves €24,000 €26,400 €29,040 Fetish Leather Fashion Top €57,600 €63,360 €69,696 Fetish Leather Fashion Trousers €57,600 €63,360 €69,696 Bracelets €18,000 €19,800 €21,780 Subtotal Direct Cost of Sales €523,950 €576,345 €633,980


Page 16

Chart 5.5.2: Sales Monthly

Chart 5.5.3: Sales by Year


Page 17

5.6 Milestones

The accompanying milestone table highlights our plan with specific dates. This schedule reflects our strong commitment to organization and detail. Milestone responsibility is assigned to the functional departments in the company - Sales, Marketing, HR, Operations, and President's Office.

The Milestone table reflects critical dates for the acquisition and takeover schedule, systems reviews and upgrades, the website re-design and deployment, the retail store relocation, and new product identification and rollout.

Table 5.6.1: Milestones

Milestones Milestone Start Date End Date Budget Director Department Initial Business Plan 19/07/2012 01/08/2012 €714 Faysal Baig Operation Branch Registration 01/09/2012 15/09/2012 €2,000 Faysal Baig Operation Lease Agreement 20/08/2012 01/09/2012 €4,000 Faysal Baig Operation Due Diligence 01/09/2012 01/09/2012 €500 Faysal Baig Operation Accounting Systems 01/09/2012 01/09/2012 €1,000 Faysal Baig Operation Computers Systems 01/09/2012 01/09/2012 €1,000 Faysal Baig Operation Fixtures & Fittings 01/09/2012 31/08/2012 €2,000 Faysal Baig Operation Hire & Training 01/09/2012 07/09/2012 €3,000 Faysal Baig Operation Marketing 01/09/2012 30/09/2012 €6,000 Faysal Baig Operation Begin Operation 01/09/2012 01/09/2012 €27,400 Faysal Baig Operation Totals €47,614

Chart 5.6.2: Milestones


Page 18

6.0 Management Summary

The board of Directors of Fayseem Enterprises (Pakistan) has appointed Mr. Fayseem Baig to operate the branch location in Brussels. Mr. Baig is a seasoned professional with over 30 years experience in the fashion and sport industry.

Mr. Baig will be joined by the following representation to help facilitate the success of Fayseem B.V.B.A:

Madiha Ilyas: Accounting Manager Usman Farooq Butt: General Manager

The business requires other position such as:

Import Manager Personal Assistant to Mr. Faysal Baig Media & Marketing Manager Sales Staff Assistant General Manager

All of these other vacant position will be filled by Belgian citizens as the business wants to ensure that it has a local feel and to guarantee that customers will be more comfortable.

6.1 Personnel Plan Table 6.1: Personnel

Personnel Plan FY 2013 FY 2014 FY 2015 Faysal Baig – Director €24,000 €24,000 €24,000 Samreen Baig – Director €24,000 €24,000 €24,000 Madiha Ilyas- Accounts Manager €21,600 €21,600 €21,600 Usman Farooq Butt - General Manager €21,600 €21,600 €21,600 Company will recruit a Belgian Citizen for this Position (TBC)-Import Manager €21,600 €21,600 €21,600

Company will recruit a Belgian Citizen for this Position (TBC) - PA €19,200 €19,200 €19,200

Company will recruit a Belgian Citizen for this Position (TBC)- Marketing Manager €21,600 €21,600 €21,600

Company will recruit a Belgian Citizen for this Position (TBC) - Ass. General Manager €19,200 €19,200 €19,200

Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff €19,200 €19,200 €19,200

Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff €0 €19,200 €19,200

Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff €0 €19,200 €19,200

Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff €0 €0 €19,200

Company will recruit a Belgian Citizen for this Position (TBC)- Sales Staff €0 €0 €19,000

Total People 9 11 13 Total Payroll €192,000 €230,400 €268,600


Page 19

6.2 Exit Strategy

This would be the worst situation for the management committee members (as well as for everyone else who is part of the organisation), but unfortunately, closure does happen. Sometimes organisations are forced to close down because their funding has been cut, and no substitute money can be found. The following steps can be taken when faced with the option of closure.

1. Step 1 - Assess your options 2. Step 2 – Explore Survival 3. Step 3 – Explore Merging 4. Step 4 – Close

6.2.1 Assess your options

It is essential that the management committee takes a long clear look at the current state of the organisation - perhaps with the help of an independent advisor - and identify the options for the short and long term. This assessment should include:

The impact on the client group of change (e.g. a reduction in services or transfer of activities) or closure;

Financial strengths and weaknesses, including assets (e.g. premises and equipment); Internal capacity: morale, skills and knowledge of staff and volunteers; External opportunities and threats, including identification of possible merger or transfer options

where organisations provide similar services; Potential for rescue: by local authorities, government or major trusts; Legal and constitutional requirements: what does the governing document allow for at closure in

terms of the process to be followed and re-distribution of assets? Timetable required: for change and consolidation, merger or closure.

Ultimately, it is up to the management committee to determine whether there are sufficient resources, and goodwill, to maintain core services, or whether the organisation must devise an exit strategy (i.e. plan for merger or closing down). If the decision is the latter, then is closure to be rapid, or delayed?


Page 20

6.2.2 Sticking with Survival

If the decision is to try and survive, we would seriously consider the following:

Invest in realistic planning, implementation and review; Carefully construct a fundraising strategy; Neutralise any negative reputation, internally and externally; Prepare service users or local people to fight cuts or closure.

We would review the organisational structure and operations by asking: What lessons are there to be learnt from real life attempts by management committees at rescuing and restoring their organisations?

It is certainly very hard work; it consumes a lot of time and energy, and at times will feel frustrating and unrewarding. Other people will not necessarily appreciate your actions, and you may not be thanked - at least in the short term. But the remarkable resilience of so many people in the voluntary and community sector comes from a long experience of forging change, despite the odds.

However, for an organisation in crisis to recover successfully, there are other essentials too. The process is dependant on the management committee members working together as a team. It is this cohesion that is at the heart of good governance, and which ultimately makes the difference when organisations face an uncertain fate.

6.2.3 Mergers

When independent survival is not an option, we may find that we are able to continue delivery of some services and activities by merging functions with another organisation. This approach is difficult, but most frequently considered by organisations who remain focused on the impact that closure would have on their beneficiaries.

When determining whether this is an option, we would discuss and consider whether:

Another organisation is already providing similar services Another organisation is targeting similar beneficiaries The services or activities of our group potentially complements another organisation Other groups are active in a similar geographical area or whether we could merge with another similar

group to cover a larger geographical area.


Page 21

Such consolidation of resources, services and expertise, can ensure that beneficiaries are better served as the long term future of certain activities and services becomes more secure. Such rationalisation of activities makes more effective use of existing resources and may be more favourably regarded by future funders.

6.2.4 Close

If the decision is to close, we would consider:

What our governing document says about dissolving the organisation (the how, what and when of winding an organisation depends on whether it is incorporated or unincorporated);

The extent of the assets of the organisation and the options for disposing them, e.g. are there legal requirements about who should benefit from the disposed assets?

The timetable required for seeing the process through. This includes stopping activities, dismissing staff, closing premises, paying bills, terminating contracts and, if appropriate, de-registering with the charity regulator;

The cost implications, i.e. having the finances to cover the cost of the process of winding up. You also need to consider the implications for management committee members in terms of personal liability if the organisation cannot meet its financial obligations;

Who is left, or best placed, to oversee the winding up and ultimate dissolution.


Page 22

7.0 Financial Plan

Fayseem B.V.B.A will invest €200,000 into the business to ensure it success. The general start-up costs include legal fees for services in regards to the purchase of the business such as the letter of intent, the asset purchase agreement, due diligence activities, and the business organisation. The accounting fees are for services regarding the business evaluation and due diligence activities. Rent and insurance for the retail facility must be prepaid before the business starts to trade. Also listed are expenses related to the creation and production of this business plan. Fayseem B.V.B.A projects that the business will generate sales from day one of its opening which means that, the cash flow is very strong and with the initial start-up capital of €200,000 and cash in the bank of €28,400, the business does not foresee any cash shortage.

Table 7.1: Start-up Funding

Start-up Funding Start-up Expenses to Fund €26,600 Start-up Assets to Fund €173,400 Total Funding Required €200,000 Assets Non-cash Assets from Start-up €146,000 Cash Requirements from Start-up €27,400 Additional Cash Raised €0 Cash Balance on Starting Date €27,400 Total Assets €173,400 Liabilities and Capital Liabilities Current Borrowing €0 Long-term Liabilities €0 Accounts Payable (Outstanding Bills) €0 Other Current Liabilities (interest-free) €0 Total Liabilities €0 Capital Planned Investment Owner €0 Investor €0 Additional Investment Requirement €200,000 Total Planned Investment €200,000 Loss at Start-up (Start-up Expenses) (€26,600) Total Capital €173,400 Total Capital and Liabilities €173,400 Total Funding €200,000


Page 23

7.1 Break-even Analysis

For our break-even analysis, we assume running costs which include payroll, rent, utilities, interest expense on the funding loan, and an estimation of other running costs. These estimations are based on real financial history data provided by the sellers of the business. Our sales forecast indicates that monthly sales are expected to be much greater than the break-even point.

Table 7.2: Break-even Analysis

Break-even Analysis Monthly Revenue Break-even €30,871

Assumptions: Average Percent Variable Cost 30% Estimated Monthly Fixed Cost €21,692

Chart 7.2.1: Break-even Analysis


Page 24

7.3 Projected Profit and Loss

The project profit and loss clearly show that the business will pick to a 40% profit for the first year and reduce to 39% in the second year and 38% in the third. Our projection also states that 38% profit is the lowest profit projection we anticipate over this amount in the coming years.

Table 7.3.1: Profit and Loss

Pro Forma Profit and Loss FY 2013 FY 2014 FY 2015 Sales €1,762,043 €1,912,020 €2,141,462 Direct Cost of Sales €523,950 €576,345 €633,980 Other Costs of Sales €12,000 €15,000 €18,000 Total Cost of Sales €535,950 €591,345 €651,980

Gross Margin €1,226,093 €1,320,675 €1,489,483 Gross Margin % 69.58% 69.07% 69.55%

Expenses Payroll €192,000 €230,400 €268,600 Marketing/Promotion €6,000 €8,000 €8,500 Depreciation €0 €7,500 €7,500 Rent €9,600 €10,560 €11,616 Utilities €10,400 €6,600 €7,160 Insurance €1,500 €1,650 €1,700 Payroll Taxes €28,800 €34,560 €40,290 Other €12,000 €13,200 €13,800

Total Operating Expenses €260,300 €312,470 €359,166

Profit Before Interest and Taxes €965,793 €1,008,205 €1,130,317 EBITDA €965,793 €1,015,705 €1,137,817 Interest Expense €0 €0 €0 Taxes Incurred €289,738 €302,462 €339,095

Net Profit €676,055 €705,744 €791,222 Net Profit/Sales 38.37% 36.91% 36.95%


Page 25

Chart 7.3.2: Profit Monthly

Chart 7.3.4: Profit Yearly


Page 26

Chart 7.4: Gross Margin Monthly

Chart 7.5: Gross Margin Yearly


Page 27

7.6 Projected Cash Flow

Our cash flow project shows that the business will have a lot of cash reserves as we hope to have over €2million in the cash in our third year of trading.

Chart 7.6.1: Cash


Page 28

Table 7.6.2: Cash Flow

Pro Forma Cash Flow

FY 2013 FY 2014 FY 2015 Cash Received Cash from Operations Cash Sales €1,762,043 €1,912,020 €2,141,462 Subtotal Cash from Operations €1,762,043 €1,912,020 €2,141,462

Additional Cash Received Sales 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 €1,762,043 €1,912,020 €2,141,462

Expenditures FY 2013 FY 2014 FY 2015

Expenditures from Operations Cash Spending €192,000 €230,400 €268,600 Bill Payments €913,159 €1,002,815 €1,086,268 Subtotal Spent on Operations €1,105,159 €1,233,215 €1,354,868

Additional Cash Spent Sales 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 €0 €0 €0 Purchase Other Current Assets €0 €0 €0 Purchase Long-term Assets €0 €0 €0 Dividends €0 €0 €0 Subtotal Cash Spent €1,105,159 €1,233,215 €1,354,868

Net Cash Flow €656,883 €678,805 €786,594

Cash Balance €684,283 €1,363,088 €2,149,682


Page 29

7.7 Projected Balance Sheet

The project balance sheet show a very strong performance year on year, one of the reasons for this is due to the fact that the company has no long term liabilities in the years to come.

Table 7.7.1: Balance Sheet

Pro Forma Balance Sheet FY 2013 FY 2014 FY 2015 Assets Current Assets Cash €684,283 €1,363,088 €2,149,682 Inventory €190,700 €209,770 €230,747 Other Current Assets €1,000 €1,000 €1,000 Total Current Assets €875,983 €1,573,858 €2,381,429 Long-term Assets Long-term Assets €70,000 €70,000 €70,000 Accumulated Depreciation €0 €7,500 €15,000 Total Long-term Assets €70,000 €62,500 €55,000 Total Assets €945,983 €1,636,358 €2,436,429 Liabilities and Capital FY 2013 FY 2014 FY 2015 Current Liabilities Accounts Payable €96,528 €81,160 €90,010 Current Borrowing €0 €0 €0 Other Current Liabilities €0 €0 €0 Subtotal Current Liabilities €96,528 €81,160 €90,010 Long-term Liabilities €0 €0 €0 Total Liabilities €96,528 €81,160 €90,010 Paid-in Capital €200,000 €200,000 €200,000 Retained Earnings (€26,600) €649,455 €1,355,198 Earnings €676,055 €705,744 €791,222 Total Capital €849,455 €1,555,198 €2,346,420 Total Liabilities and Capital €945,983 €1,636,358 €2,436,429 Net Worth €849,455 €1,555,198 €2,346,420


Page 30

7.8 Business Ratios The Ratios explains a 10% growth year on year. Table 7.8.1: Ratios

Ratio Analysis FY 2013 FY 2014 FY 2015 Industry Profile Sales Growth 0.00% 8.51% 12.00% 0.00% Percent of Total Assets Inventory 20.16% 12.82% 9.47% 0.00% Other Current Assets 0.11% 0.06% 0.04% 100.00% Total Current Assets 92.60% 96.18% 97.74% 100.00% Long-term Assets 7.40% 3.82% 2.26% 0.00% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 10.20% 4.96% 3.69% 0.00% Long-term Liabilities 0.00% 0.00% 0.00% 0.00% Total Liabilities 10.20% 4.96% 3.69% 0.00% Net Worth 89.80% 95.04% 96.31% 100.00% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 69.58% 69.07% 69.55% 0.00% Selling, General & Administrative Expenses 31.22% 32.16% 32.61% 0.00% Advertising Expenses 0.34% 0.42% 0.40% 0.00% Profit Before Interest and Taxes 54.81% 52.73% 52.78% 0.00% Main Ratios Current 9.07 19.39 26.46 0.00 Quick 7.10 16.81 23.89 0.00 Total Debt to Total Assets 10.20% 4.96% 3.69% 0.00% Pre-tax Return on Net Worth 113.70% 64.83% 48.17% 0.00% Pre-tax Return on Assets 102.09% 61.61% 46.39% 0.00% Additional Ratios FY 2013 FY 2014 FY 2015 Net Profit Margin 38.37% 36.91% 36.95% n.a Return on Equity 79.59% 45.38% 33.72% n.a Activity Ratios Inventory Turnover 3.26 2.88 2.88 n.a Accounts Payable Turnover 10.46 12.17 12.17 n.a Payment Days 27 33 29 n.a Total Asset Turnover 1.86 1.17 0.88 n.a Debt Ratios Debt to Net Worth 0.11 0.05 0.04 n.a Current Liab. to Liab. 1.00 1.00 1.00 n.a Liquidity Ratios Net Working Capital €779,455 €1,492,698 €2,291,420 n.a Interest Coverage 0.00 0.00 0.00 n.a Additional Ratios Assets to Sales 0.54 0.86 1.14 n.a Current Debt/Total Assets 10% 5% 4% n.a Acid Test 7.10 16.81 23.89 n.a Sales/Net Worth 2.07 1.23 0.91 n.a Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Page 1

Table 7.9: Sales Forecast

Sales Forecast Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sales Football €5,000 €5,000 €5,000 €5,000 €4,250 €4,250 €5,000 €5,000 €5,000 €5,000 €5,000 €5,000 Goalkeeper Gloves €6,000 €6,000 €6,000 €6,000 €4,800 €4,800 €6,000 €6,000 €6,000 €6,000 €6,000 €6,000 Shin Guards €1,650 €1,500 €1,500 €1,500 €1,250 €1,250 €1,500 €1,500 €1,650 €1,725 €1,725 €1,725 Boxing Gloves €9,900 €9,000 €9,000 €9,000 €7,800 €7,800 €9,000 €9,000 €9,900 €10,350 €10,350 €10,350 Punching Pad €1,760 €1,600 €1,600 €1,600 €1,350 €1,350 €1,600 €1,600 €1,760 €1,840 €1,840 €1,840 Kick Mitts €825 €750 €750 €750 €620 €620 €750 €750 €825 €863 €863 €863 Cycling Gloves €5,500 €5,000 €5,000 €5,000 €4,250 €4,250 €5,000 €5,000 €5,500 €5,750 €5,750 €5,750 Leather Motorbike Jackets €19,250 €17,500 €17,500 €17,500 €15,600 €15,600 €17,500 €17,500 €19,250 €20,125 €20,125 €20,125 Motorbike Gloves €48,950 €45,000 €45,000 €45,000 €38,500 €38,500 €45,000 €45,000 €48,950 €51,750 €51,750 €51,750 Driving Gloves €22,000 €20,000 €20,000 €20,000 €17,500 €17,500 €20,000 €20,000 €22,000 €23,000 €23,000 €23,000 Fetish Leather Fashion Top €17,600 €16,000 €16,000 €16,000 €15,500 €15,500 €16,000 €16,000 €17,600 €18,400 €18,400 €18,400 Fetish Leather Fashion Trousers €17,600 €16,000 €16,000 €16,000 €1,500 €1,500 €16,000 €16,000 €17,600 €18,400 €18,400 €18,400 Bracelets €1,650 €1,500 €1,500 €1,500 €900 €900 €1,500 €1,500 €1,650 €1,725 €1,725 €1,725 Total Sales €157,685 €144,850 €144,850 €144,850 €113,820 €113,820 €144,850 €144,850 €157,685 €164,928 €164,928 €164,928 Direct Cost of Sales Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Football €1,400 €1,400 €1,400 €1,400 €1,400 €1,400 €1,400 €1,400 €1,400 €1,400 €1,400 €1,400 Goalkeeper Gloves €900 €900 €900 €900 €900 €900 €900 €900 €900 €900 €900 €900 Shin Guards €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 Boxing Gloves €1,200 €1,200 €1,200 €1,200 €1,200 €1,200 €1,200 €1,200 €1,200 €1,200 €1,200 €1,200 Punching Pad €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 Kick Mitts €88 €88 €88 €88 €88 €88 €88 €88 €88 €88 €88 €88 Cycling Gloves €375 €375 €375 €375 €375 €375 €375 €375 €375 €375 €375 €375 Leather Motorbike Jackets €5,600 €5,600 €5,600 €5,600 €5,600 €5,600 €5,600 €5,600 €5,600 €5,600 €5,600 €5,600 Motorbike Gloves €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 Driving Gloves €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 Fetish Leather Fashion Top €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 Fetish Leather Fashion Trousers €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 €4,800 Bracelets €1,500 €1,500 €1,500 €1,500 €1,500 €1,500 €1,500 €1,500 €1,500 €1,500 €1,500 €1,500 Subtotal Direct Cost of Sales €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663

Appendix

Page 1

Table 7.10: Personnel

Personnel Plan Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Faysal Baig - Director €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 Samreen Baig - Director €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 Madiha Ilyas- Accounts Manager €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 Usman Farooq Butt - General Manager €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 Company will recruit a Belgium Citizen for this Position (TBC)- Import Manager

€1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800

Company will recruit a Belgium Citizen for this Position (TBC) - PA

€1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600

Company Will recruit a Belgium Citizen for this Position (TBC)- Marketing Manager

€1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800 €1,800

Company will recruit a Belgium Citizen for this Position (TBC) - Ass. General Manager

€1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600

Company will recruit a Belgium Citizen for this Position (TBC)- Sales Staff

€1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600 €1,600


€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0


€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0


€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0


€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Total People 9 9 9 9 9 9 9 9 9 9 9 9 Total Payroll €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000

Appendix

Page 1

Table 7.11: Profit and Loss

Pro Forma Profit and Loss

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sales €157,685 €144,850 €144,850 €144,850 €113,820 €113,820 €144,850 €144,850 €157,685 €164,928 €164,928 €164,928 Direct Cost of Sales €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 €43,663 Other Costs of Sales €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 Total Cost of Sales €44,663 €44,663 €44,663 €44,663 €44,663 €44,663 €44,663 €44,663 €44,663 €44,663 €44,663 €44,663 Gross Margin €113,023 €100,188 €100,188 €100,188 €69,158 €69,158 €100,188 €100,188 €113,023 €120,265 €120,265 €120,265 Gross Margin % 71.68% 69.17% 69.17% 69.17% 60.76% 60.76% 69.17% 69.17% 71.68% 72.92% 72.92% 72.92% Expenses Payroll €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 Marketing/Promotion €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 €500 Depreciation €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 Rent €800 €800 €800 €800 €800 €800 €800 €800 €800 €800 €800 €800 Utilities €400 €400 €400 €400 €400 €400 €400 €400 €400 €400 €400 €6,000 Insurance €125 €125 €125 €125 €125 €125 €125 €125 €125 €125 €125 €125 Payroll Taxes 15% €2,400 €2,400 €2,400 €2,400 €2,400 €2,400 €2,400 €2,400 €2,400 €2,400 €2,400 €2,400 Other €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 Total Operating Expenses

€21,225 €21,225 €21,225 €21,225 €21,225 €21,225 €21,225 €21,225 €21,225 €21,225 €21,225 €26,825

Profit Before Interest and Taxes

€91,798 €78,963 €78,963 €78,963 €47,933 €47,933 €78,963 €78,963 €91,798 €99,040 €99,040 €93,440

EBITDA €91,798 €78,963 €78,963 €78,963 €47,933 €47,933 €78,963 €78,963 €91,798 €99,040 €99,040 €93,440 Interest Expense €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 Taxes Incurred €27,539 €23,689 €23,689 €23,689 €14,380 €14,380 €23,689 €23,689 €27,539 €29,712 €29,712 €28,032 Net Profit €64,258 €55,274 €55,274 €55,274 €33,553 €33,553 €55,274 €55,274 €64,258 €69,328 €69,328 €65,408 Net Profit/Sales 40.75% 38.16% 38.16% 38.16% 29.48% 29.48% 38.16% 38.16% 40.75% 42.04% 42.04% 39.66%

Appendix

Page 2

Table 7.12: Cash Flow Pro Forma Cash Flow Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Cash Received Cash from Operations Cash Sales €157,685 €144,850 €144,850 €144,850 €113,820 €113,820 €144,850 €144,850 €157,685 €164,928 €164,928 €164,928 Subtotal Cash from Operations €157,685 €144,850 €144,850 €144,850 €113,820 €113,820 €144,850 €144,850 €157,685 €164,928 €164,928 €164,928 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 €0 €0 €0 €0 €0 €0 €0 €0 Subtotal Cash Received €157,685 €144,850 €144,850 €144,850 €113,820 €113,820 €144,850 €144,850 €157,685 €164,928 €164,928 €164,928 Expenditures Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Expenditures from Operations Cash Spending €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 €16,000 Bill Payments €4,447 €131,964 €89,914 €89,914 €87,603 €22,605 €80,915 €89,914 €88,042 €35,837 €95,937 €96,068 Subtotal Spent on Operations €20,447 €147,964 €105,914 €105,914 €103,603 €38,605 €96,915 €105,914 €104,042 €51,837 €111,937 €112,068 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

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

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 €20,447 €147,964 €105,914 €105,914 €103,603 €38,605 €96,915 €105,914 €104,042 €51,837 €111,937 €112,068 Net Cash Flow €137,238 (€3,114) €38,936 €38,936 €10,217 €75,215 €47,935 €38,936 €53,643 €113,091 €52,991 €52,860 Cash Balance €164,638 €161,524 €200,460 €239,396 €249,613 €324,828 €372,763 €411,699 €465,342 €578,433 €631,423 €684,283

Appendix

Table 7.13: Balance Sheet

Pro Forma Balance Sheet Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Assets Starting

Balances

Current Assets Cash €27,400 €164,638 €161,524 €200,460 €239,396 €249,613 €324,828 €372,763 €411,699 €465,342 €578,433 €631,423 €684,283 Inventory €75,000 €130,988 €147,325 €163,663 €180,000 €136,338 €152,675 €169,013 €185,350 €141,688 €158,025 €174,363 €190,700 Other Current Assets €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 €1,000 Total Current Assets €103,400 €296,625 €309,849 €365,122 €420,396 €386,950 €478,503 €542,775 €598,049 €608,030 €737,458 €806,786 €875,983 Long-term Assets Long-term Assets €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 Accumulated Depreciation €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 Total Long-term Assets €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 €70,000 Total Assets €173,400 €366,625 €379,849 €435,122 €490,396 €456,950 €548,503 €612,775 €668,049 €678,030 €807,458 €876,786 €945,983 Liabilities and Capital Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Current Liabilities Accounts Payable €0 €128,967 €86,917 €86,917 €86,917 €19,918 €77,918 €86,917 €86,917 €32,639 €92,739 €92,739 €96,528 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 €128,967 €86,917 €86,917 €86,917 €19,918 €77,918 €86,917 €86,917 €32,639 €92,739 €92,739 €96,528 Long-term Liabilities €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 Total Liabilities €0 €128,967 €86,917 €86,917 €86,917 €19,918 €77,918 €86,917 €86,917 €32,639 €92,739 €92,739 €96,528 Paid-in Capital €200,000 €200,000 €200,000 €200,000 €200,000 €200,000 €200,000 €200,000 €200,000 €200,000 €200,000 €200,000 €200,000 Retained Earnings (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) (€26,600) Earnings €0 €64,258 €119,532 €174,806 €230,080 €263,632 €297,185 €352,459 €407,733 €471,991 €541,319 €610,647 €676,055 Total Capital €173,400 €237,658 €292,932 €348,206 €403,480 €437,032 €470,585 €525,859 €581,133 €645,391 €714,719 €784,047 €849,455 Total Liabilities and Capital €173,400 €366,625 €379,849 €435,122 €490,396 €456,950 €548,503 €612,775 €668,049 €678,030 €807,458 €876,786 €945,983 Net Worth €173,400 €237,658 €292,932 €348,206 €403,480 €437,032 €470,585 €525,859 €581,133 €645,391 €714,719 €784,047 €849,455

Sample Business Plan

Documents

Transcript of Sample Business Plan