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The information in this document is confidential and is to be only read by authorized parties. Please refer to the confidentiality agreement for further details. This business plan is not an offering for securities. Your Firm, Inc. Strategic Business and Marketing Plan Your Firm, Inc. 2 Confidentiality Agreement The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of or an authorized agent of Your Firm, Inc . It is acknowledged by the reader that information 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 reader, and may cause serious harm or damage to aforementioned parties. This business plan is not to be copied or reproduced by any means without the sole written consent of an authorized agent of Your Firm, Inc . Upon request, this document is to be immediately returned. __________________________________ _______________ Signature Date _______________________________ Name (typed or printed) Your Firm, Inc. 3 Table of Contents 1.0 Executive Summary ...................................................................................................... 4 1.1 The Services .............................................................................................................. 4 1.2 Financing................................................................................................................... 4 1.3 Mission Statement ..................................................................................................... 4 1.4 Management Team.................................................................................................... 5 1.5 Sales Forecasts .......................................................................................................... 5 1.6 Expansion Plan.......................................................................................................... 5 2.0 Company and Financing Summary ............................................................................... 6 2.1 Registered Name and Corporate Structure ............................................................... 6 2.2 Required Funds ......................................................................................................... 6 2.3 Investor Equity .......................................................................................................... 7 2.4 Management Equity .................................................................................................. 7 2.5 Exit Strategy.............................................................................................................. 7 3.0 Products and Services .................................................. 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Bookmark not defined. 5.3 Pricing ...................................................................... Error! Bookmark not defined. 6.0 Organizational Plan and Personnel Summary .............................................................. 8 6.1 Corporate Organization ............................................................................................. 8 6.2 Organizational Budget .............................................................................................. 8 6.3 Management Biographies ........................................ Error! Bookmark not defined. 7.0 Financial Plan .............................................................. Error! Bookmark not defined. 7.1 Underlying Assumptions ......................................... Error! Bookmark not defined. 7.2 Sensitivity Analysis ................................................. Error! Bookmark not defined. 7.3 Source of Funds ....................................................... Error! Bookmark not defined. 7.4 General Assumptions ............................................... Error! Bookmark not defined. 7.5 Profit and Loss Statements....................................... Error! Bookmark not defined. 7.6 Cash Flow Analysis ................................................. Error! Bookmark not defined. 7.8 Breakeven Analysis ................................................................................................ 10 Three Year Profit and Loss Statement .............................................................................. 11 Three Year Cash Flow Analysis ....................................................................................... 12 Your Firm, Inc. 4 1.0 Executive Summary The purpose of this business plan is to raise $100,000 for the development of a public relations firm while showcasing the expected financials and operations over the next three years. Your Firm, Inc. (“the Company”) is a New York based corporation that will provide increased visibility to business clients within its targeted market. The Company was founded in 2009 by John Doe. 1.1 The Services Your Firm, Inc . seeks to bring businesses into the media spotlight. Through Mr. Doe’s myriad of contacts within the public relations and news industries, he is able to direct attention to businesses that operate among local and regional businesses. The Company will offer these services through several programs including, but not limited to: Media Relations Strategic Planning and Program Development Business to Business Marketing Brand Management Direct Marketing Public Relations . 1.2 Financing Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: Development of the Company’s office location. Financing for the first six months of operation. Capital to purchase a company vehicle. Mr. Doe will contribute $10,000 to the venture. 1.3 Mission Statement The business seeks to provide its clients with access to the general and business news media. We strive to increase our client’s visibility among their targeted markets. Your Firm, Inc. 5 1.4 Management Team The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the media industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations. 1.5 Sales Forecasts Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years. Proforma Profit and Loss (Yearly) Year 2009 2010 2011 Sales $958,428 $1,054,271 $1,159,698 Operating Costs $439,662 $502,071 $522,367 EBITDA $470,844 $499,486 $579,346 Taxes, Interest, and Depreciation $191,766 $198,953 $228,889 Net Profit $279,079 $300,533 $350,457 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2009 2010 2011 Year Sales, Operating Costs, and Profit Forecast Sales EBITDA Net Profit 1.6 Expansion Plan The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target businesses within the target market. Your Firm, Inc. 6 2.0 Company and Financing Summary 2.1 Registered Name and Corporate Structure Your Firm, Inc . The Company is registered as a corporation in the State of New York. 2.2 Required Funds At this time, the Public Relations Firm requires $100,000 of debt funds. Below is a breakdown of how these funds will be used: Projected Startup Costs Business Startup Year 2009 Initial Lease Payments and Deposits $10,000 Working Capital $35,000 FF&E $23,000 Leasehold Improvements $5,000 Security Deposits $5,000 Insurance $2,500 Company Vehicle $17,000 Marketing Budget $7,500 Miscellaneous and Unforeseen Costs $5,000 Total Startup Costs $110,000 Use of Funds 9% 31% 21% 5% 5% 2% 15% 7% 5% Initial Lease Payments and Deposits Working Capital FF&E Leasehold Improvements Security Deposits Insurance Company Vehicle Marketing Budget Miscellaneous and Unforeseen Costs Your Firm, Inc. 7 2.3 Investor Equity Mr. Doe is not seeking an investment from a third party at this time. 2.4 Management Equity John Doe owns 100% of the Your Firm, Inc . 2.5 Exit Strategy If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Public Relations Firm. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings. Your Firm, Inc. 8 6.0 Organizational Plan and Personnel Summary 6.1 Corporate Organization 6.2 Organizational Budget Personnel Plan - Yearly Year 2009 2010 2011 Senior Management $50,000 $51,500 $53,045 PR Manager $45,000 $46,350 $47,741 PR and Marketing Staff $112,500 $154,500 $159,135 Bookkeeper (P/T) $15,000 $15,450 $15,914 Administrative $55,000 $56,650 $58,350 Total $277,500 $324,450 $334,184 Numbers of Personnel Year 2009 2010 2011 Senior Management 1 1 1 PR Manager 1 1 1 PR and Marketing Staff 3 4 4 Bookkeeper (P/T) 1 1 1 Administrative 2 2 2 Totals 8 9 9 Senior Management Service Operations Administrative Staff Accounting Sales - Marketing Administrative Marketing Management Public Relations Services Market Consulting Your Firm, Inc. 9 7.7 Balance Sheet Proforma Balance Sheet - Yearly Year 2009 2010 2011 Assets Cash $143,997 $165,871 $190,140 Amortized Development/Expansion Costs $17,500 $25,116 $33,980 Company Vehicles $17,000 $55,080 $99,401 FF&E $23,000 $53,464 $88,920 Accumulated Depreciation ($4,107) ($8,214) ($12,321) Total Assets $197,390 $291,316 $400,119 Liabilities and Equity Accounts Payable $13,005 $26,716 $40,990 Long Term Liabilities $93,537 $86,467 $79,397 Other Liabilities $0 $0 $0 Total Liabilities $106,542 $113,183 $120,387 Net Worth $90,849 $178,133 $279,732 Total Liabilities and Equity $197,390 $291,316 $400,119 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 2009 2010 2011 Year Proforma Balance Sheet Total Assets Total Liabilities Net Worth Your Firm, Inc. 10 7.8 Breakeven Analysis Monthly Break Even Analysis Year 2009 2010 2011 Monthly Revenue $38,567 $44,041 $45,822 Yearly Revenue $462,802 $528,496 $549,860 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2009 2010 2011 Year Break Even Analysis Monthly Revenue Yearly Revenue 7.9 Business Ratios Business Ratios - Yearly Year 2009 2010 2011 Sales Sales Growth 0.0% 10.0% 10.0% Gross Margin 95.0% 95.0% 95.0% Financials Profit Margin 29.12% 28.51% 30.22% Assets to Liabilities 1.85 2.57 3.32 Equity to Liabilities 0.85 1.57 2.32 Assets to Equity 2.17 1.64 1.43 Liquidity Acid Test 1.35 1.47 1.58 Cash to Assets 0.73 0.57 0.48 Your Firm, Inc. 11 Three Year Profit and Loss Statement Profit and Loss Statement (First Year) Months 1 2 3 4 5 6 7 Sales $79,000 $79,158 $79,316 $79,474 $79,632 $79,790 $79,948 Cost of Goods Sold $3,950 $3,958 $3,966 $3,974 $3,982 $3,990 $3,997 Gross Margin 95.0% 95.0% 95.0% 95.0% 95.0% 95.0% 95.0% Operating Income $75,050 $75,200 $75,350 $75,500 $75,650 $75,801 $75,951 Expenses Payroll $23,125 $23,125 $23,125 $23,125 $23,125 $23,125 $23,125 General and Administrative $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 Marketing Expenses $2,396 $2,396 $2,396 $2,396 $2,396 $2,396 $2,396 Professional Fees and Licensure $625 $625 $625 $625 $625 $625 $625 Insurance Costs $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Travel and Vehicle Costs $1,458 $1,458 $1,458 $1,458 $1,458 $1,458 $1,458 Rent and Utilities $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 Miscellaneous Costs $799 $799 $799 $799 $799 $799 $799 Payroll Taxes $3,469 $3,469 $3,469 $3,469 $3,469 $3,469 $3,469 Total Operating Costs $36,639 $36,639 $36,639 $36,639 $36,639 $36,639 $36,639 EBITDA $38,411 $38,562 $38,712 $38,862 $39,012 $39,162 $39,312 Federal Income Tax $12,807 $12,833 $12,859 $12,884 $12,910 $12,935 $12,961 State Income Tax $1,941 $1,944 $1,948 $1,952 $1,956 $1,960 $1,964 Interest Expense $750 $746 $742 $738 $734 $730 $726 Depreciation Expense $342 $342 $342 $342 $342 $342 $342 Net Profit $22,571 $22,696 $22,820 $22,945 $23,069 $23,194 $23,319 Your Firm, Inc. 12 Three Year Cash Flow Analysis Cash Flow Analysis (First Year) Month 1 2 3 4 5 6 7 8 Cash From Operations $22,914 $23,038 $23,163 $23,287 $23,412 $23,536 $23,661 $23,786 Cash From Receivables $0 $0 $0 $0 $0 $0 $0 $0 Operating Cash Inflow $22,914 $23,038 $23,163 $23,287 $23,412 $23,536 $23,661 $23,786 Other Cash Inflows Equity Investment $10,000 $0 $0 $0 $0 $0 $0 $0 Increased Borrowings $100,000 $0 $0 $0 $0 $0 $0 $0 Sales of Business Assets $0 $0 $0 $0 $0 $0 $0 $0 A/P Increases $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 Total Other Cash Inflows $113,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 Total Cash Inflow $136,072 $26,197 $26,321 $26,446 $26,570 $26,695 $26,819 $26,944 Cash Outflows Repayment of Principal $517 $521 $525 $528 $532 $536 $540 $545 A/P Decreases $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 A/R Increases $0 $0 $0 $0 $0 $0 $0 $0 Asset Purchases $57,500 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 Total Cash Outflows $60,092 $2,595 $2,599 $2,603 $2,607 $2,611 $2,615 $2,619 Net Cash Flow $75,981 $23,601 $23,722 $23,842 $23,963 $24,084 $24,204 $24,325 Cash Balance $75,981 $99,582 $123,304 $147,146 $171,109 $195,193 $219,397 $243,722
