msnrealestate word copy

8/10/2019 MSNRealEstate Word Copy

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MSN Real Estate

Nathan Koach & Shawn Menashe

May 21, 1998

This sample business plan has been made aailable to use!s o" Business Plan Pro, business

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Copyright Palo Alto Software, Inc., 1995-2002 All rights resere!.
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Confi!entiality Agree"ent

The unde!si#ned !eade! ac*nowled#es that the in"o!mation p!oided by in this business plan is con"idential4 the!e"o!e, !eade! a#!eesnot to disclose it without the e'p!ess w!itten pe!mission o"

5t is ac*nowled#ed by !eade! that in"o!mation to be "u!nished in this business plan is in all !espects con"idential in natu!e, othe! than in"o!mation which is in the public domain th!ou#h othe! means and that any disclosu!e o! use o" same by !eade!, may cause se!ious ha!m o!

dama#e to

6pon !e)uest, this document is to be immediately !etu!ned to 7

Si#natu!e

Name typed o! p!inted

:ate

This is a business plan 5t does not imply an o""e!in# o" secu!ities


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Table of Contents

1.0 #$ec%tie S%""ary ..................................................................................................... 1

11 ;bompetitie Ed#e102 Ma!*etin# St!ate#y10

21 $ositionin# Statement1022 $!icin# St!ate#y11

2= $!omotion St!ate#y112@ :ist!ibution St!ate#y11

2 Ma!*etin# $!o#!ams11= Sales St!ate#y12


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MSN Real Estate

1.1 Executive Summary

MSN Real Estate MSN is an ;!e#on/based !eal estate company that will o""e! benchma!*ed

!ental units "o! the Eu#ene, ;!e#on community MSNDs units will balance sa"ety, cuttin# ed#e "eatu!es, and a positie atmosphe!e "o! all tenants These !entals will be p!oided with unmatched leels o" custome! se!ice and attention Sales a!e p!o


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1999 2000 2001

MSN Real Estate

Highlights

$700,000

$600,000

$500,000

$00,000

$!00,000

$200,000

Sales

"r#ss Margi

Net Pr#%it

$100,000

$0

&$100,000'

1.2 ()*ectives

1 Sales o" @=0,000 in 1999 and 300,000 by the yea! 2001

2 A!oss ma!#in hi#he! than 0F

= Net p!o"itJsales to be positie by the second yea!@ ae a c!ime !ate o" 0


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1. +eys t# Success

1 Sa"e, )uality housin# that p!oides state/o"/the/a!t amenities at competitie p!ices2 Maintainin# open communication between MSN and its custome!s in o!de! to ensu!e

the hi#hest leel o" custome! satis"action and lon# lastin# !eputation within the

community= To continue to e'pand the numbe! o" units owned and maintained, while also

inc!easin# the leel o" p!o"its "o! both MSN and its inesto!s

2.1 #m-ay Summary

MSN Real Estate is an ente!p!ise that is inoled in nume!ous aspects o" the indust!y $!ima!y

e'pe!ience and e'pe!tise is in the deelopment o" hi#h/)uality, lowe! cost liin# "o! studentsand p!o"essionals see*in# the most up/to/date technolo#ically adanced liin# eni!onment%n a!ea o" intense t!ainin# and attention is the impo!tance o" st!on# custome! se!ice

The "i!st p!ope!ty pu!chased by the company is a @0/unit apa!tment buildin# on the co!ne! o"ilya!d and 1@th in Eu#ene 5t is !elatiely close to the 6nie!sity, so will be easily !ented to

capacity nine months out o" the yea! o! the !emainin# th!ee months, the p!ice o" !ent will be!educed and we will aim to !emain at 30F capacity

2.2 #m-ay (ers/i-

MSN Real Estate will be c!eated as a ?imited ?iability >o!po!ation based out o" $o!tland, ;!e#on 5t will be owned by its p!incipal inesto!s, Shawn Menashe and Nathan Koach ShawnMenashe is the actin# >E; and holds a @0F sta*e in the company Nathan Koach is the actin#>; d h ld @0F h " th ll Th th 20F i h ld b il t i t


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Table: Start-up

Startu-

Reuiremets

Startu- Ex-esesegal $6,003rc/itect 4ees $!,000Stati#ery etc. $270r#c/ures $275#sultats $2,550surace $1,!15Ret $1,00#structi# $75,000Ex-ese eui-met $600(t/er $7508#tal Startu- Ex-eses $91,560

Startu- 3ssets Neeeas/ alace # Startig ate $1,111,!!0(t/er urret 3ssets $12,0008#tal urret 3ssets $1,12!,!!0

#gterm 3ssets $120,000

8#tal 3ssets $1,2!,!!08#tal Reuiremets $1,!!,:90

4uig

vestmetMeas/e $2!,000+#ac/ $2!,000Silet Parters $200,0008#tal vestmet $26,000

urret ia)ilities3cc#uts Paya)le $!,:90urret #rr#ig $5,000(t/er urret ia)ilities $0urret ia)ilities $:,:90


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Ex-eses 3ssets vestmet #as

Start-up

$1,00,000

$1,200,000

$1,000,000

$:00,000

$600,000

$00,000

$200,000

$0

2. #m-ay #cati#s a 4acilities

MSN head)ua!te!s will be established in %/)uality o""ice space in the downtown a!ea o"$o!tland, ;!e#on This will be the hea!t o" ou! company, with satellite locations in Ceae!ton

and Eu#ene, ;!e#on -e a!e also installin# an in/house 5nte!net se!e! and 2@/hou!answe!in# se!ice so that all custome! o! business communications a!e dealt with in an

e'pedient and "luid manne! -ithin any liin# deelopment with mo!e than =2 units a!ep!esentatie o" the company will be located


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!.5 8ec/#l#gy

MSN !eal estate will hae the most up/to/date technolo#y p!oided both to the custome!s andto the subcont!acto!s and othe! clients

1 Ethe!net po!ts andJo! modem


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.2 Mar;et Segmetati#

1 MSNDs la!#est ma!*et se#ment in the Eu#ene a!ea will be students o" the local

unie!sities These students will be the most li*ely to desi!e the technolo#ical amenitiesthat ou! company o""e!s -e e'pect this to be the la!#est #!owin# se#ment with a#!owth !ate o" about F

2 ?ocal p!o"essionals a!e anothe! la!#e se#ment They will be att!acted to the unitsbecause o" the same technolo#ical needs, but will also be att!acted to the com"o!table, well maintained liin# eni!onment MSN o""e!s units that p!oide a )uality hub

between colle#e #!aduation and home owne!ship -e e'pect this se#ment to #!ow at a

!ate o" about @F with a mo!e "!e)uent tu!n oe!

= ?ocal unie!sity "aculty and sta"" !ep!esent the thi!d and smallest identi"iable se#ment,

but contain the second hi#hest #!owth !ate $!o'imity and )uality will entice thisse#ment which we e'pect to #!ow at a !ate o" F

Market Analysis (Pie)

Stuets

Pr#%essi#als

4aculty


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.! 8arget Mar;et Segmet Strategy

-e beliee that ou! unpa!alleled leel o" )uality and technolo#ical amenities put MSN into a

niche o" its own This will be the "ocal point o" all ou! ma!*etin# and ade!tisin# e""o!ts These se#ments a!e also easily !eached th!ou#h local newspape!s and publications, as well "!e)uent open house displays

5t is essential "o! MSN pat!ons to unde!stand that thei! needs a!e ou! p!io!ity

.2.1 Mar;et Nees

Each o" ou! ta!#ets need the )uality, conenience, se!ice, sa"ety, com"o!t and technolo#icalamenities that can only be "ound at ou! liin# comple'es

1 The student se#ment needs a )uiet sa"e atmosphe!e that "oste!s a )uality lea!nin#

eni!onment They also need the conenience o" location and on/site amenities2 The p!o"essional se#ment needs a liin# eni!onment that sepa!ates them "!om the

noisy, di!ty inconenience o" ae!a#e apa!tment liin# Most p!o"essionals a!e on thei!

way to home owne!ship o! moement to a la!#e! city, so they need housin# that will letthem "eel li*e they a!e #ettin# the )uality that they need

= The "acultyJsta"" se#ment also has simila! needs They need to "eel sepa!ation "!om thenoise and un*ept conditions o" most nea!/campus housin# %lon# with the students,they also need a place to "eel sa"e and one that "oste!s conenience

.2.2 Mar;et 8res

This indust!y is constantly eolin# and leain# many in"le'ible companies sta#nant ;ne o"the ma


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5.1 Strategy a m-lemetati# Summary

MSN will "ocus on the th!ee p!eiously mentioned ma!*et se#ments. unie!sity students, local

a!ea p!o"essionals and unie!sity "aculty and sta""

;u! ta!#et custome! is usually loo*in# "o! hi#he! end liin# "acilities that "oste! a sa"e,

en


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5.!.2 Pricig Strategy

MSNDs p!icin# will be at the top o" what the ma!*et will bea! -e a!e competin# with la!#e

"i!ms who hae simila! comple'es ;u! p!ices will be competitie with these la!#e! "i!ms whilemaintainin# the hi#h leel o" )uality and e'pe!t mana#ement

$!ices a!e based on ae!a#e unit alue o" @00 and ae!a#e monthly sales o" about 3,000MSN, howee!, must t!y to "ollow ma!*et p!icin# t!ends in o!de! to maintain a competitieadanta#e

5.!.! Pr#m#ti# Strategy

MSNDs most success"ul p!omotion will come in the "o!m o" wo!d o" mouth Since we will own

!eal estate, we will be hi#hly isible to the public Since ou! comple'es will be in the uppe!echelon o" )uality and liability, wo!d will sp!ead th!ou#h the community about ou! uni)ue appeal

%lon# with wo!d o" mouth, ou! most consistent "o!m o" p!omotion will come "!om ads in local publications, speci"ically, The Oregonian, The Daily Emerald and The Register-Guard, as well

as smalle! ma#aBines and ci!culations -e will also be pe!sonally p!omotin# ou! p!oduct within the community

5.!. istri)uti# Strategy

-e will "ocus on p!oidin# hi#h/)uality liin# in conenient locations with a wide custome!

base 5t is also impo!tant that we !emain at the uppe! echelon in the )uality !an#e when

compa!ed to competito!s -e can only do this by o!#aniBin# and implementin# a sound planthat will assume !esponsibility "o! the "unctionality and appea!ance o" MSN p!ope!ties -e willhae an updated -eb site "o! anyone inte!ested in the p!ope!ties


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5. Sales Strategy

Sales in ou! business is based upon p!oidin# custome!s with a liin# concept "ittin# o" thei!

needs -e must be in touch with the needs and desi!es o" ou! clientele in o!de! to best att!acta consistent "low o" incomin# !esidents

5..1 Sales 4#recast

The "ollowin# table and cha!t #ies the "o!ecasted ea!nin#s "o! MSN Real Estate apa!tment

!ental units -e pe!ceie a #!adual inc!ease in the total numbe! o" units oe! the ne't yea! %stime #oes on, the monthly pe!/unit !ental p!ice will slowly ascend, coupled by the decline in cost oe! time, p!oducin# an inc!eased pe!/unit p!o"it

!om ou! openin# in Lanua!y to Lune, we e'pect that all units will be completely !ented out 5nthe summe! months we anticipate "ewe! student tenants, so we hae planned on a !ent

lowe!in# p!ocess to entice !ente!s to stay %lso, we will only !ent on yea!ly leases to ensu!ethat all !ented units !emain "illed yea! !ound -ith the estimated p!o"its "!om the p!eious months the anne' will be completed in Septembe!, addin# 1@ mo!e units to the total o" @

Table: Sales Foreast

Sales 4#recast>it Sales 1999 2000 2001Sigle >its !11 !50 !9#u)le >its 17 212 22?ua >its 129 15 16:uxury Suite 29 5 60

(t/er 0 0 08#tal >it Sales 6! 770 :6

>it Prices 1999 2000 2001Sigle >its $0.9: $10.00 $20.00#u)le >its $:06 7: $:16 00 $:2: 00


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@a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ec

Sales Monthly

$60,000

$50,000

$0,000

$!0,000

$20,000

Sigle >its

#u)le >its?ua >its

uxury Suite

(t/er

$10,000

$0

5..2 Sales Pr#grams

;u! sale p!o#!am will include sales awa!ds "o! len#th o" lease a#!eements, maintainin# a "ull capacity status, and custome! se!ice awa!ds "o! those who best e'empli"y MSNDs commitment

to custome!s -e will also awa!d e'istin# custome!s "o! !e"e!!in# new clientele to the company


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Table: Milestones

Milest#esMilest#e Start ate E ate uget Maager e-artmet#m-lete ic#r-#rati# 1

Meas/e &E(' t4iacially (rgaiAe 2The initial mana#ement team depends on the "ounde!s themseles, with bac*/up assistance"!om the p!ope!ty mana#ement depa!tment o" MSN Real Estate %s we continue to #!ow, we will establish satellite o""ices in all o" ou! liin# deelopments 5t will also be necessa!y to ta*e

on additional help in the ma!*etin# and R & : secto!s as #!owth continues

6.2 (rgaiAati#al Structure

MSN Real Estate depends on an o!#aniBed diision o" !esponsibilities in o!de! to !un ane""icient, die!si"ied ente!p!ise Main decisions and !esponsibilities will be diided between thetwo top pa!tne!s They will "ocus on maintainin# hi#h )uality and a cohesie business entity Top diision mana#e!s will be #ien speci"ic !esponsibilities such as ma!*etin#, "inance,st!ate#ic mana#ement, o! !esea!ch and deelopment


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6. Maagemet 8eam "a-s

The p!esent team !e)ui!es business deelopment and administ!atie suppo!t Most o" the

pa!tne!s hae been wo!*in# in business eni!onments whe!e this *ind o" suppo!t was p!oidedto them as pa!t o" a la!#e! o!#aniBation

MSN will tu!n to :ynamic $ublic Relations to help c!eate business deelopment p!o#!ams, suchas spea*in# oppo!tunities and ma#aBine a!ticle inse!tions, as well as "o!ums and semina!s thata!e impo!tant to ou! on#oin# deelopment

Re#a!din# administ!ation, we need a st!on# "inance mana#e! to #ua!d cash "low ;u! pa!tne!s

a!e not accustomed to the wo!!ies o" cash "low, but they hae the sense to listen to !eason

and deal with const!aints i" the "inance mana#e! p!oides the p!ope! in"o!mation

6.5 Pers#el Pla

The "ollowin# table summa!iBes ou! pe!sonnel e'penditu!es "o! the "i!st th!ee yea!s, with

compensation inc!easin# "!om less than 100K the "i!st yea! to about 10K in the thi!d The"oundin# pa!tne!s will ta*e limited compensation "o! the "i!st th!ee yea!s until ea!nin#s a!e

substantiated and #!owth is assu!ed -e beliee this plan is a comp!omise between "ai!nessand e'pedience and meets the commitment o" ou! mission statement The detailed monthlype!sonnel plan "o! the "i!st yea! is included in the appendices

Table: Personnel

Pers#el Pla1999 2000 2001

Nat/a +#ac/ 4( $15,600 $20,000 $25,000S/a Meas/e E( $15,600 $20,000 $25,000eise Ric/ars &3mi. Mgr.' $9,600 $10,000 $12,000@#e Nas/ &r#;erage Maager' $11,700 $1,000 $17,000Cea #tract#r &evel#- Mgr ' $1 100 $15 000 $17 000


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7.2 m-#rtat 3ssum-ti#s

MSNDs plan depends on the assumptions that a!e made in the "ollowin# table These a!e annualand monthly assumptions that show the consistent #!owth o" the company Since we ope!ateon a monthly collection basis, we a!e assumin# that the ma


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Sales "r#ss Margi= (-eratig Ex-eses

7.! +ey 4iacial icat#rs

The "ollowin# cha!t indicates ou! *ey "inancial indicato!s "o! the "i!st th!ee yea!s MSN "o!esees#!owth in both unit !entals as well as inc!easin# the pe!centa#e o" #!owth ma!#in

MSNDs cash "low depends on the monthly collection "!om the !ente!s -e allow "o! a 2/day

#!ace pe!iod, a"te! which unpaid accounts will inhibit ou! cash "low owee!, since we collecton a monthly basis, cash "low should maintain at a steady leel

Benh"arks

1.

1.2

1.0

0.:

0.6

1999

2000

2001

0.

0.2

0.0


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7. rea;eve 3alysis

The "ollowin# table and cha!t summa!iBe ou! b!ea*/een analysis -ith "i'ed costs o" 12,000

pe! month and a a!iable pe!/unit cost o" =, we will need to !ent out 29 units at 820 pe!

unit, to coe! ou! monthly costs MSNDs "i!st housin# comple' will consist o" @0 units%cco!din# to the calculations, we will b!ea*/een within ou! "i!st yea! o" ope!ation

The b!ea*/een assumes that all units will be occupied and that all !ent will be paid in a timelymanne! This assumption is p!obably un!ealistic4 the!e"o!e ou! initial b!ea*/een pe! unit will

most li*ely be hi#he!

Break-e#en Analysis

$15,000

$10,000

$5,000

$0

&$5,000'

&$10,000'

&$15,000'

0 10 20 !0 0 50

Monthly break-e#en point

rea;eve -#it D /ere lie itersects it/ 0


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7.5 Pr#*ecte Pr#%it a #ss

The p!o


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@a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ec

7.6 Pr#*ecte as/ 4l#

The "ollowin# cash "low p!o


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Table: Cash Flo&

Pr# 4#rma as/ 4l# 1999 2000 2001

as/ Receiveas/ %r#m (-erati#sas/ Sales $!7,!:0 $5!:,9: $612,756as/ %r#m Receiva)les $0 $0 $0

Su)t#tal as/ %r#m (-erati#s $!7,!:0 $5!:,9: $612,756

3iti#al as/ ReceiveN# (-eratig &(t/er' c#me $0 $0 $0Sales 8ax, F38, CS8


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7.7 Pr#*ecte alace S/eet

The balance sheet in the "ollowin# table shows a!yin# but mana#ed net wo!th, and a

su""iciently healthy "inancial position The monthly estimates a!e included in the appendices and a!e a #ood indicato! o" MSNDs annual alue

Table: Balane Sheet

Pr# 4#rma alace S/eet

3ssets

urret 1999 2000 2001as/ $:5,!: $90,:75 $170,526(t/er urret 3ssets $12,000 $12,000 $12,0008#tal urret 3ssets#gterm 3ssets

$97,!: $102,:75 $1:2,526

#gterm 3ssets $1,200,000 $1,770,000 $1,770,0003ccumulate e-reciati# $12,221 $25,221 $,558#tal #gterm 3ssets $1,1:7,779 $1,7,779 $1,725,68#tal 3ssets $1,2:5,127 $1,:7,65 $1,907,972

ia)ilities a a-ital

1999 2000 20013cc#uts Paya)le $29,501 $!!,997 $!5,996urret #rr#ig $1!,00 $2:,00 $0,00(t/er urret ia)ilities $1,152 $!,652 $5,652Su)t#tal urret ia)ilities $,05! $66,09 $:2,0:

#gterm ia)ilities $1,096,627 $1,62,097 $1,6:,228#tal ia)ilities $1,10,679 $1,690,15 $1,7!0,290

Paii a-ital $251,:62 $257,:62 $261,:62Retaie Earigs &$91,560' &$107,1' &$100,!5'Earigs &$15,:5' $7,061 $16,178#tal a-ital $1,: $157,50: $177,6:28#tal ia)ilities a a-ital $1,2:5,127 $1,:7,65 $1,907,972Net G#rt/ $1,: $157,50: $177,6:2


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Table: 'atios

Rati# 3alysis1999 2000 2001 ustry Pr#%ile

Sales "r#t/ 0.00= 2!.12= 1!.79= !.60=

Percet #% 8#tal 3ssets3cc#uts Receiva)le 0.00= 0.00= 0.00= 6.90=vet#ry 0.00= 0.00= 0.00= 0.50=(t/er urret 3ssets 0.9!= 0.65= 0.6!= 9.90=8#tal urret 3ssets 7.57= 5.57= 9.57= 57.!0=#gterm 3ssets 92.!= 9.!= 90.!= 2.70=8#tal 3ssets 100.00= 100.00= 100.00= 100.00=

urret ia)ilities 0.09= 0.20= 0.!0= 2:.50=#gterm ia)ilities :5.!!= :7.90= :6.!9= 27.20=8#tal ia)ilities :5.!!= :7.90= :6.!9= 55.70=Net G#rt/ 1.67= 12.10= 1!.61= .!0=

Percet #% SalesSales 100.00= 100.00= 100.00= 100.00="r#ss Margi 7.1= 52.51= 55.2= 100.00=Sellig, "eeral B 3miistrative Ex-eses !7.21= !6.:1= !7.0:= 67.0=3vertisig Ex-eses 0.00= 0.00= 0.00= !.60=Pr#%it e%#re terest a 8axes 11.7= 17.22= 19.99= !.90=

Mai Rati#surret 2.21 1.56 2.22 1.:7?uic; 2.21 1.56 2.22 1.118#tal e)t t# 8#tal 3ssets ::.76= 91.:= 90.69= 55.70=Pretax Retur # Net G#rt/ 10.9:= 5.9:= 12.1= 1.70=Pretax Retur # 3ssets 1.2!= 0.51= 1.1!= !.:0=

usiess Fitality Pr#%ile 1999 2000 2001 ustrySales -er Em-l#yee $2,299 $22,!7 $19,19 $105,90:Survival Rate 6:.50=

3iti#al Rati#s 1999 2000 2001Net Pr#%it Margi !.62= 1.!1= 2.6= .aRetur # Euity 10.9:= .:= 9.10= .a

3ctivity Rati#s


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3--eix

Page 1

Appen$i( Table: Sales Foreast

Sales 4#recast>it Sales @a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ec

Sigle >its 2 2 2 2 2 2 2 2 29 29 29 !2#u)le >its 10 10 10 10 10 10 16 16 20 20 20 22

?ua >its : : : : : : 12 12 1 1 1 15

uxury Suite 2 2 2 2 2 2 2 2 ! ! ! (t/er 0 0 0 0 0 0 0 0 0 0 0 0

8#tal >it Sales 5 5 66 66 66 7!

>it Prices @a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ecSigle >its $25.00 $25.00 $25.00 $25.00 $25.00 $!50.00 $!50.00 $!50.00 $!50.00 $0.00 $0.00 $0.00#u)le >its $:20.00 $:20.00 $:20.00 $:20.00 $:20.00 $:20.00 $70.00 $70.00 $70.00 $:50.00 $:50.00 $:50.00?ua >its $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,000.00 $1,000.00 $1,000.00 $1,!00.00 $1,!00.00 $1,!00.00uxury Suite $675.00 $675.00 $675.00 $675.00 $675.00 $675.00 $600.00 $600.00 $600.00 $725.00 $725.00 $725.00(t/er $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Sales

Sigle >its $10,200 $10,200 $10,200 $10,200 $10,200 $:,00 $:,00 $:,00 $10,150 $12,760 $12,760 $1,0:0#u)le >its $:,200 $:,200 $:,200 $:,200 $:,200 $:,200 $11,:0 $11,:0 $1,:00 $17,000 $17,000 $1:,700?ua >its $9,600 $9,600 $9,600 $9,600 $9,600 $9,600 $12,000 $12,000 $1,000 $1:,200 $1:,200 $19,500uxury Suite $1,!50 $1,!50 $1,!50 $1,!50 $1,!50 $1,!50 $1,200 $1,200 $1,:00 $2,175 $2,175 $2,900(t/er $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

8#tal Sales $29,!50 $29,!50 $29,!50 $29,!50 $29,!50 $27,550 $!!,0 $!!,0 $0,750 $50,1!5 $50,1!5 $55,1:0

irect >it #sts @a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ecSigle >its $260.00 $260.00 $260.00 $260.00 $260.00 $260.00 $260.00 $260.00 $260.00 $260.00 $260.00 $260.00#u)le >its $2:.00 $2:.00 $2:.00 $2:.00 $2:.00 $2:.00 $2:.00 $2:.00 $2:.00 $2:.00 $2:.00 $2:.00

?ua >its $511.00 $511.00 $511.00 $511.00 $511.00 $511.00 $511.00 $511.00 $511.00 $511.00 $511.00 $511.00uxury Suite $!02.00 $!02.00 $!02.00 $!02.00 $!02.00 $!02.00 $!02.00 $!02.00 $!02.00 $!02.00 $!02.00 $!02.00

(t/er $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

irect #st #% Sales @a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ecSigle >its $6,20 $6,20 $6,20 $6,20 $6,20 $6,20 $6,20 $6,20 $7,50 $7,50 $7,50 $:,!20#u)le >its $,2:0 $,2:0 $,2:0 $,2:0 $,2:0 $,2:0 $6,:: $6,:: $:,560 $:,560 $:,560 $9,16?ua >its $,0:: $,0:: $,0:: $,0:: $,0:: $,0:: $6,1!2 $6,1!2 $7,15 $7,15 $7,15 $7,665uxury Suite $60 $60 $60 $60 $60 $60 $60 $60 $906 $906 $906 $1,20:(t/er $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Su)t#tal irect #st #% Sales $15,212 $15,212 $15,212 $15,212 $15,212 $15,212 $19,:2 $19,:2 $2,160 $2,160 $2,160 $26,609


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Page 2

3--eix

Appen$i( Table: Personnel

Pers#el Pla@a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ec

Nat/a +#ac/ 4( $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,00 $1,00 $1,00 $1,00 $1,00 $1,00S/a Meas/e E( $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,00 $1,00 $1,00 $1,00 $1,00 $1,00

eise Ric/ars &3mi. Mgr.' $:00 $:00 $:00 $:00 $:00 $:00 $:00 $:00 $:00 $:00 $:00 $:00

@#e Nas/ &r#;erage Maager' $950 $950 $950 $950 $950 $950 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000Cea #tract#r &evel#-. Mgr.' $1,150 $1,150 $1,150 $1,150 $1,150 $1,150 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200(t/er $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

8#tal Pe#-le 1: 1: 1: 1: 1: 1: 1: 1: 1: 1: 1: 1:

8#tal Payr#ll $7,!00 $7,!00 $7,!00 $7,!00 $7,!00 $7,!00 $7,:00 $7,:00 $7,:00 $7,:00 $7,:00 $7,:00


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Page !

3--eix

Appen$i( Table: !eneral Assu"ptions

"eeral 3ssum-ti#s@a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ec

Pla M#t/ 1 2 ! 5 6 7 : 9 10 11 12urret terest Rate :.00= :.00= :.00= :.00= :.00= :.00= :.00= :.00= :.00= :.00= :.00= :.00=

#gterm terest Rate 6.00= 6.00= 6.00= 6.00= 6.00= 6.00= 6.00= 6.00= 6.00= 6.00= 6.00= 6.00=

8ax Rate 25.00= 25.00= 25.00= 25.00= 25.00= 25.00= 25.00= 25.00= 25.00= 25.00= 25.00= 25.00=(t/er 0.00= 0.00= 0.00= 0.00= 0.00= 0.00= 0.00= 0.00= 0.00= 0.00= 0.00= 0.00=

alculate 8#talsPayr#ll Ex-ese $7,!00 $7,!00 $7,!00 $7,!00 $7,!00 $7,!00 $7,:00 $7,:00 $7,:00 $7,:00 $7,:00 $7,:00Ne 3cc#uts Paya)le $!0,712 $!0,722 $!0,7!! $!0,7! $!0,75! $!0,:11 $!5,!! $!5,120 $!9,00! $!:,7:! $!:,752 $0,:61


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Page

3--eix

Appen$i( Table: Profit an$ %oss

Pr# 4#rma Pr#%it a #ss@a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ec

Sales $29,!50 $29,!50 $29,!50 $29,!50 $29,!50 $27,550 $!!,0 $!!,0 $0,750 $50,1!5 $50,1!5 $55,1:0irect #st #% Sales $15,212 $15,212 $15,212 $15,212 $15,212 $15,212 $19,:2 $19,:2 $2,160 $2,160 $2,160 $26,609

Pr#ucti# Payr#ll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

(t/er $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

8#tal #st #% Sales $15,212 $15,212 $15,212 $15,212 $15,212 $15,212 $19,:2 $19,:2 $2,160 $2,160 $2,160 $26,609"r#ss Margi $1,1!: $1,1!: $1,1!: $1,1!: $1,1!: $12,!!: $1!,616 $1!,616 $16,590 $25,975 $25,975 $2:,571"r#ss Margi = :.17= :.17= :.17= :.17= :.17= .7:= 0.72= 0.72= 0.71= 51.:1= 51.:1= 51.7:=

Ex-esesPayr#ll $7,!00 $7,!00 $7,!00 $7,!00 $7,!00 $7,!00 $7,:00 $7,:00 $7,:00 $7,:00 $7,:00 $7,:00Sales a Mar;etig a (t/er Ex-eses $1,!50 $1,!50 $1,!50 $1,!50 $1,!50 $1,!50 $1,150 $900 $950 $950 $900 $:50e-reciati# $0 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111 $1,111ease Eui-met $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200>tilities $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600surace $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200Maiteace $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Ret $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250Payr#ll 8axes 15= $1,095 $1,095 $1,095 $1,095 $1,095 $1,095 $1,170 $1,170 $1,170 $1,170 $1,170 $1,170(t/er $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

8#tal (-eratig Ex-eses $11,995 $1!,106 $1!,106 $1!,106 $1!,106 $1!,106 $1!,:1 $1!,2!1 $1!,2:1 $1!,2:1 $1!,2!1 $1!,1:1Pr#%it e%#re terest a 8axes $2,1! $1,0!2 $1,0!2 $1,0!2 $1,0!2 &$76:' $1!5 $!:5 $!,!09 $12,69 $12,7 $15,!90terest Ex-ese $5,0 $5,51 $5,61 $5,72 $5,:! $5,96 $5,505 $5,51 $5,52! $5,50 $5,556 $5,5728axes curre $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Net Pr#%it &$!,297' &$,19' &$,29' &$,0' &$,51' &$6,26' &$5,!70' &$5,129' &$2,21' $7,15 $7,1:: $9,:1:Net Pr#%it


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Page 5

3--eix

Appen$i( Table: Cash Flo&

Pr# 4#rma as/ 4l# @a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ec

as/ Receiveas/ %r#m (-erati#sas/ Sales $29,!50 $29,!50 $29,!50 $29,!50 $29,!50 $27,550 $!!,0 $!!,0 $0,750 $50,1!5 $50,1!5 $55,1:0

as/ %r#m Receiva)les $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Su)t#tal as/ %r#m (-erati#s $29,!50 $29,!50 $29,!50 $29,!50 $29,!50 $27,550 $!!,0 $!!,0 $0,750 $50,1!5 $50,1!5 $55,1:0

3iti#al as/ ReceiveN# (-eratig &(t/er' c#me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales 8ax, F38, CS8


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P 6

3--eix

Appen$i( Table: Balane Sheet

Pr# 4#rma alace S/eet

3ssetsurret 3ssets Startig alaces @a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ecas/ $1,111,!!0 $2,276 $0,797 $!9,!1 $!:,225 $!7,9:1 $!5,9!9 $!:,5!0 $!7,161 $2,25 $56,16 $6:,!16 $:5,!:

(t/er urret 3ssets $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,0008#tal urret 3ssets#gterm 3ssets

$1,12!,!!0 $5,276 $52,797 $51,!1 $50,225 $9,9:1 $7,9!9 $50,5!0 $9,161 $5,25 $6:,16 $:0,!16 $97,!:

#gterm 3ssets $120,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,0003ccumulate e-reciati# $0 $0 $1,111 $2,222 $!,!!! $, $5,555 $6,666 $7,777 $:,::: $9,999 $11,110 $12,2218#tal #gterm 3ssets $120,000 $1,200,000 $1,19:,::9 $1,197,77: $1,196,667 $1,195,556 $1,19,5 $1,19!,!! $1,192,22! $1,191,112 $1,190,001 $1,1::,:90 $1,1:7,7798#tal 3ssets $1,2!,!!0 $1,25,276 $1,251,6:6 $1,29,092 $1,26,:92 $1,25,5!7 $1,22,!: $1,2!,:6 $1,21,!: $1,25,5!7 $1,25:,165 $1,269,206 $1,2:5,127

ia)ilities a a-ital@a 4e) Mar 3-r May @u @ul 3ug Se- (ct N#v ec

3cc#uts Paya)le $!,:90 $16,:!! $16,:!7 $16,:1 $16,:6 $16,:50 $16,65 $20,50! $20,!2 $2,797 $26,:9 $26,:27 $29,501urret #rr#ig $5,000 $6,000 $6,:00 $7,600 $:,00 $9,200 $10,00 $10,900 $11,00 $11,900 $12,00 $12,900 $1!,00(t/er urret ia)ilities $0 $200 $0 &$200' $0 $200 $00 $600 $:00 $1,000 $1,202 $952 $1,152Su)t#tal urret ia)ilities $:,:90 $2!,0!! $2!,6!7 $2,21 $25,26 $26,250 $27,265 $!2,00! $!2,52 $!7,697 $0,51 $0,679 $,05!

#gterm ia)ilities $1,0:0,000 $1,0:0,000 $1,0:1,075 $1,0:2,156 $1,0:!,22 $1,0:,!!! $1,0:5,!0 $1,0:6,5!2 $1,0:7,60 $1,0::,75! $1,091,!72 $1,09!,997 $1,096,627

8#tal ia)ilities $1,0::,:90 $1,10!,0!! $1,10,712 $1,106,!97 $1,10:,:7 $1,110,5:! $1,112,695 $1,11:,5!5 $1,120,1:2 $1,126,50 $1,1!1,:2! $1,1!,676 $1,10,679

Paii a-ital $26,000 $26,100 $26,250 $26,00 $26,550 $27,550 $2:,550 $29,561 $250,562 $250,662 $250,762 $251,762 $251,:62Retaie Earigs &$91,560' &$91,560' &$91,560' &$91,560' &$91,560' &$91,560' &$91,560' &$91,560' &$91,560' &$91,560' &$91,560' &$91,560' &$91,560'Earigs $0 &$!,297' &$7,716' &$12,15' &$16,5:5' &$21,0!6' &$27,!01' &$!2,671' &$!7,:00' &$0,01' &$!2,:60' &$25,672' &$15,:5'8#tal a-ital $15,0 $151,2! $16,97 $12,695 $1!:,05 $1!,95 $129,6:9 $125,!!0 $121,202 $119,0:: $126,!2 $1!,5!0 $1,:8#tal ia)ilities a a-ital $1,2!,!!0 $1,25,276 $1,251,6:6 $1,29,092 $1,26,:92 $1,25,5!7 $1,22,!: $1,2!,:6 $1,21,!: $1,25,5!7 $1,25:,165 $1,269,206 $1,2:5,127Net G#rt/ $15,0 $151,2! $16,97 $12,695 $1!:,05 $1!,95 $129,6:9 $125,!!0 $121,202 $119,0:: $126,!2 $1!,5!0 $1,:

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