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BUSINESS PLAN

PRESENTED BY-GROUP:3

ATUL KUMAR KARN ---------------------------- Q1703A19
DEEPIKA BHAGAT ------------------------------ Q1703A13
DEEPKAMAL KAUR ----------------------------- Q1703A11
MANDEEP SINGH ------------------------------ Q1704A14
PRIYANKA GUPTA ------------------------------ Q1703A06
RAMANJEET KAUR ---------------------- ------- Q1703A14

CONTENTS
 BUSINESS PLAN (GENERAL INFORMATION)
 FEASIBILITY ANALYSIS
 MARKETING PLAN
 OPERATIONS PLAN
 HR PLAN
 FINANCIAL PLAN
SUMMARY
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Sal es
Gross Margi n
Net Profi t
OBJECTIVES
 Sales revenue should be 200 crores for the first year.
 Establish long term relationships with suppliers of
tyres and seat makers.
 Breakeven within two years of business.
 Net profit margin should be 10% in first year and
increase it to 14% in second year achieving
operational efficiency
MISSION
 “To build a solar car, to benefit the mankind and
environment with long term sustainability,
transforming the way this world moves with
innovation.
VISION
 To be numero uno solar car company, keeping
customers and environmental sustainability up front

OUR BUSINESS IDEA
SOLAR WALKING CAR
SOLAR WALKING CAR


 PRODUCT NAME: SUNSHINE

 TAGLINE:
“Move freely and move free, Its Sunshine’s promise”


SOLAR ENERGY AND OUR
IDEA
 Developing a solar energy driven car
 Solar walking cars combine technology typically
used in the aerospace, bicycle, alternative
energy and automotive industries.
 Solar cars are powered by the sun's energy. In fact,
51% of sunlight actually enters the Earth's
atmosphere.
PRODUCT SUMMARY
 Suntech solar private limited will be selling two versions of
solar walking car with top speed of 40KMPH (A) and
50KMPS (B). The price will be 1 lac for A version and 1.3 lac
for B version.
 Product Description
 Solar car includes the following components along with
repective cost:
 Solar Array and Power trackers : 40000
 Batteries : 6000
 Motor & Controller : 5000
 Chassis, Seats and other components : 15000
 Tires, Brakes and Hubs : 10000

PROPOSED DESIGN
LOGO AND SYMBOL
 SUNSHINE represents the
product name and act as symbol.

 The middle circle represents the
sun.

 The orange and yellow colour of
the sun represents the sun rays.

FEASIBILITY ANALYSIS

WHAT MAKES OUR SOLAR
CAR FEASIBLE
 Financial analysis (Profitable Business????)
 1000 WATTS = 1.341 horsepower
 Solar panel cost per watt is around $1 without
subsidy
 cost is roughly 50000 INR of solar panel alone for
1000 watt (1.341)
 International Manufacturers of solar panel
 Shanghai Tongjian Shike Solar Energy Co., Ltd.
($0.80-1.20 per watt)
 Jiaxing Feiya Lighting Electrical Co., Ltd. ($1.20-
1.50 per watt)

Continued…..
 Other equipments..
 Electrical grid (15000 INR)
 Battery (5000)
 Tyres, seats,body (30000)
BUSINESS PLAN(GENERAL
INFORMATION)
FUNCTIONAL AREA REPORTS
There are four essential elements required to test
whether or not a potential business idea is feasible:
 Marketing
 Operations
 HR
 Finance
MARKETING PLAN
Market research will involve
 What is the product and/or service that is the basis
for the business?
 Who is the customer likely to be?
 What is the benefit of your product/service to the
customer?
 How will the benefit be delivered?

 Product Features
 STP of Market
 Market Reasearch
 SWOT analysis
 Competitive Analysis
 Marketing tools and strategy

PRODUCT FEATURES
 Shape and design
 Costing
 Weight capacity

KEY ADVANTAGES
 No running cost
 No registration required
 Reduced license requirements
 Environment friendly
 Using alternative source of energy
 No pollution certificate and insurance liability

SEGMENTATION,TARGETING,POSITIONING

SEGMENTATION
 Geographic segmentation
• Weather
• Location
 Demographic segmentation
• Income based(middle class)
 Behavioral segmentation


TARGETING
 Target customer: Middle class
 Differentiated targeting
 Target-market: rural and semi-
urban customers.
POSITIONING
 Small House hold car
 Substitute
SWOT ANALYSIS
Strengths
 Eco friendly
 No running cost
 Green project
Weaknesses
 Cloudy days (can be overcome by electrical additions)
 Top speed 30-50 kms/h (two versions)
 Max run 30-40 kms after one charging
Opportunities
 First mover
 High demand for eco friendly projects
 Subsidized solar panels
Threat
 Easily imitable.


MAIN COMPETITORS IN
SOLAR CAR INDUSTRY
 They are not exactly the competitors because they
are developing racing and high speed solar cars. But
we are targeting on the solar walking car which is
quite different from them:
 SUNRAYCER
 ALPHA CENTAURI
 AURORA
 ONGOING SOLAR PROJECTS
BUSINESS STRATEGY

 BLUE OCEAN STRATEGY
 A NEW PRODUCT IN EXISTING MARKET
 DRIVEN BY INNOVATION AND PRODUCT LEADERSHIP

MEDIA TO BE USED
 NEWSPAPER ADVERTISEMENT
 BUSINESS MAGAZINES
 TV AD
 RADIO AD
MARKETING TOOLS
LAUNCHING A NEW BUSINESS OF SOLAR WALKING CAR:

PRE-LAUNCH: ROAD SHOW
LAUNCH: TEST DRIVE
POST-LAUNCH: TV ADS,RADIO ADS,SOCIAL NETWORKING SITES

MARKETING MEDIUM:

The Hindu, Times of India
CNBC AWAAZ,STAR NEWS.

HR AND OPERATIONS PLAN
OF A SOLAR WALKING CAR
“SUNSHINE”

Operations plan
 Market research is prerequisite
 A hypothetical data is assumed (can’t spend
money in real )
 Operational plan will be based upon this
research for demand of such products in the
market
 Pilot testing will be done with not full setup for
meeting the demand
 Demand is assumed to be 2000 cars in first
month based on research.
Plant
 Smaller setup
 10 acre land near Jalandhar area
 Cost will be around 5 crores
 Suppliers are available here ( A similar
company speedways is operating here)
 Assembly line, flooring, building and other
infrastructure will add around 8 crore ( based
upon speedways experience)
LEGAL AND ENVIRONMENTAL
FEASIBILITY
 A manufacturing unit for solar car is legally possible

 Rather, Indian government will support a
environmental friendly venture

 Company will get itself registered as private limited
company, raising funds from venture capitalist and
owner’s or director’s fund

LEGAL CONSTRAINTS
 No direct legal constraints can be there
 Will be a private limited company under company act
1939
 Board of directors will include founder members
 Setting up a private limited company
Procedure and mechanics
INCORPORATION OF
COMPANY

Step 1 : Application For DIN

 The concept of a Director Identification Number
(DIN) has been introduced for the first time with
the insertion of Sections 266A to 266G of
Companies (Amendment) Act, 2006.

 We need to file eForm DIN-1 in order to obtain
DIN.
Step 2 : Acquire/ Register DSC
 Acquire DSC -A licensed Certifying Authority (CA)
issues the digital signature.
 Register DSC -Role check for Indian companies is to
be implemented in the MCA application.
 Role check can be performed only after the
signatories have registered their Digital signature
certificates (DSC) with MCA.
Step 3 : New User Registration
 To file an eForm or to avail any paid service on MCA
portal, we are first required to register ourselves as a
user in the relevant user category, such as registered
and business user.
Step 4 : Incorporate a Company
 Apply for the name of the company[ Suntech autos
Pvt. Ltd.] to be registered by filing Form1A for the
same.

DOCUMENT REQUIRED:

 Form 1 : Application or declaration for incorporation
of a company
 Form 32 : Particulars of appointment of managing
director, directors, manager and secretary and the
changes among them or consent of candidate to act as
a managing director or director or manager or
secretary of a company and/ or undertaking to take
and pay for qualification shares.
 Once the form has been approved by the concerned
official of the Ministry, you will receive an email
regarding the same and the status of the form will get
changed to Approved.

ROC OFFICE:
PUNJAB, CHANDIGARH & HIMACHAL
PRADESH

Dr. RAJ SINGH
CORPORATE BHAWAN,PLOT NO.4 B,
SECTOR 27 B,MADHYA MARG,
CHANDIGARH - 160019
PHONE: 0172-2639415,2639416
FAX: 0172-2639416
roc.chandigarh@mca.gov.in
Other legal compliance:
 Validity period of the Name approved:
With effect from 24th July, 2011,the approved
name is valid for a period of 60 days from the
date of approval.If,the proposed company is
not incorporated within such period,the name
shall be lapsed and will be available for other
applicants.

Minimum number of directors required to
form a company:-
Minimum no. of directors for Private Limited
Company: Two
Minimum Paid-up Capital at the time of
registration :-
For Private Limited Company: Rs.1,00,000/-



Fees

Other Important aspects
 Banker to the firm (for credit period and short
term loan advancements)
 Layout will include a assembly line
 It will include various component to be
mounted
 All these component will form the part of
engineers
 Skilled workers and supervisor will work at this
functional part
Board of directors
Raman
Grewal
Executive
director
PSR : 10%

Deepika
Bhagat
Chief
operatin
g officer
(COO)
PSR :
10%

Priyanka
Gupta
Marketing
Head
PSR :
10%
Deepkamal
Sachdeva
HR director
PSR : 10%
Mandeep
Bhullar
Managing
director
and CFO
PSR :
10%
Atul Kumar
Karn
Chief
executive
officer
(CEO)
PSR : 10%
BOD continued….
 Private company: ownership lies with BOD
 Fund raising : venture capitalist, loans
advanced by directors, loans from banks
 PSR = profit sharing ratio
 60% with owners
 35% with venture capitalist

COMPONENTS INCLUDE
 1. Solar Array and Power trackers
 2. Batteries
 3. Motor & Controller
 4. Instrumentation
 5. Steering and suspension
 6. Brakes
 7. Tires and Hubs
1. Controller. 2. fans 3. power cable
4. AC motor 5. DC power cable

Cost of production per car
S.NO COMPONENT COST( in INR)
1 Solar Array and Power trackers 20000
2 Batteries 6000
3 Motor & Controller 10000
4 Instrumentation (chassis) 20000
5 Steering and suspension 10000
6 Brakes , Tires and Hubs 6000
7 Other components 4000
MOTORS AND
CONTROLLERS

 Choosing a motor depend on how much power it has.
Controllers usually drive a particular motor. We will use the
brushless motors because these will increase the efficiency of
motor upto94-99 percent.
STEERING AND
SUSPENSION
 Front wheel steering as it tends to be more stable and safer.
 In order to make proper suspension it will be soft enough to protect the
car and solar array from unnecessary jolts and firm enough to provide a
stable ride
DESIGN DIMENSIONS
 Following are the design dimensions we set for
“SUNSHINE”:
Position Length (LTR) or Height from the ground
Entire frame 5.8 m
Wheels 25 cm diameter, 10 cm thickness
Driver cabin height 90 cm
Full height 1.48m
Tail length 3.4m
HR plan
 Will require a full fledge human resource even
during initial setup
 Organizational hierarchy is given on next slide

ORGANIZATIONAL CHART
CEO &
PRESIDENT
VICE
PRESIDENT
EXECUTIVE
DIRECTOR
FACTORY GM
R&D CENTER
PRODUCTION
DIRECTOR
OPERATIONS
TEAM
QUALITY
ASSURANCE
TEAM
PRODUCTION
TEAM
MAINTAINENCE
TEAM
SALES
DIRECTOR
SALES DEPTT
PURCHASING
DEPTT
ACCOUNTS
DEPTT
JOB DESCRIPTION
JOB TITLE QUALIFICATI
ON
KEY SKILLS
REQUIRED
EXPERIENC
E
REQUIRED
SALARY
OFFERED
CEO/
PRESIDENT
MBA executive Leadership,
Team building,
project
management,
communicatio
n skills
10-15 years Rs. 1,00,000
VICE
PRESIDENT
MBA executive Management
skills in
requisites,
leadership,
communicatio
n skills
8-10 years 80,000
EXECUTIVE
DIRECTOR
MBA executive Management
of HR deptt,
Quality and
Operations
5-8 years 65,000
JOB TITLE QUALIFICATI
ON
KEY
SKILLS
REQUIRED
EXPERIENC
E REQUIRED
SALARY
OFFERED
FACTORY
GM
MBA Training,
Selecting,
Motivating
plant
supervisory
4-5 years 50,000
PRODUCTIO
N DIRECTOR
MBA
(operations)

Practical
knowledge
of working
with
production
team
4-5 years

50,000
SALES
DIRECTOR
MBA
(marketing)
Efficient
managemen
t of sales
team,
purchasing
& accounts
deptt
4-5 years

50,000
LEAVE POLICY
 Earned leave: 18 per year (for permanent
employee)
 Casual leave: 12 per year (@1 per month)
 Sick or medical leave:
 Temporary employee : 10 days (can extend
upto two weeks
 Permanent employee : 15-18 days ( max 3
weeks in continuum)
FINANCIAL PLAN

INITIAL INVESTMENT
Start-up

Requirements

Start-up Expenses
Legal $5,000
Insurance $10,000
Rent $5,000
Computer $10,000
Other $100
Total Start-up Expenses $30,100

Start-up Assets
Cash Required $200,000
Start-up Inventory $30,000
Other Current Assets $10,000
Long-term Assets $2,000,000
Total Assets $2,240,000

Total Requirements $2,270,100

$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Expenses Assets Investment Loans
Sales forecast
Sales Forecast
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Unit Sales
Version A 2,000 2,900 5,000 6,500 7,000
Version B 1,500 2,200 3,000 3,500 4,000
Total Unit Sales 3,500 5,100 8,000 10,000 11,000

Unit Prices FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Version A $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00
Version B $2,600.00 $2,600.00 $2,000.00 $2,000.00 $2,000.00

Sales
Version A $4,000,00
0
$5,800,00
0
$10,000,0
00
$13,000,0
00
$14,000,0
00
Version B $3,900,00
0
$5,720,00
0
$6,000,00
0
$7,000,00
0
$8,000,00
0
Total Sales $7,900,00
0
$11,520,0
00
$16,000,0
00
$20,000,0
00
$22,000,0
00

Direct Unit Costs FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Version A $1,300.00 $1,300.00 $1,300.00 $1,300.00 $1,300.00
Version B $1,560.00 $1,560.00 $1,200.00 $1,200.00 $1,200.00

Direct Cost of Sales
Version A $2,600,00
0
$3,770,00
0
$6,500,00
0
$8,450,00
0
$9,100,00
0
Version B $2,340,00
0
$3,432,00
0
$3,600,00
0
$4,200,00
0
$4,800,00
0
Subtotal Direct Cost of Sales $4,940,00
0
$7,202,00
0
$10,100,0
00
$12,650,0
00
$13,900,0
00
Yearly Sales
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Versi on A
Versi on B
Key financial Indicators
0.0
0.5
1.0
1.5
2.0
2.5
3.0
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
Break Even Analysis
Break-even Analysis

Monthly Units Break-even 32
Monthly Revenue Break-even $72,506

Assumptions:
Average Per-Unit Revenue $2,257.14
Average Per-Unit Variable Cost $1,411.43
Estimated Monthly Fixed Cost $27,167
BE continued…
($30,000)
($25,000)
($20,000)
($15,000)
($10,000)
($5,000)
$0
$5,000
$10,000
$15,000
$20,000
0 10 20 30 40 50
Monthly break-even point
Break-ev en point = where line intersects with 0
ProFormaProfitandLoss
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Sales $7,900,000 $11,520,000 $16,000,000 $20,000,000 $22,000,000
Direct Costs of Goods $4,940,000 $7,202,000 $10,100,000 $12,650,000 $13,900,000
Production Payroll $115,000 $128,000 $141,000 $152,000 $154,000
Other Costs of Goods $20,000 $22,000 $23,000 $25,000 $30,000
------------ ------------ ------------ ------------ ------------
Cost of Goods Sold $5,075,000 $7,352,000 $10,264,000 $12,827,000 $14,084,000

Gross Margin $2,825,000 $4,168,000 $5,736,000 $7,173,000 $7,916,000
Gross Margin % 35.76% 36.18% 35.85% 35.87% 35.98%

Operating Expenses

Sales and Marketing Expenses
Sales and Marketing Payroll $130,000 $160,000 $180,000 $195,000 $210,000
Advertising/Promotion $20,000 $22,000 $25,000 $28,000 $30,000
Other Sales and Marketing Expenses $30,000 $35,000 $37,000 $40,000 $45,000
------------ ------------ ------------ ------------ ------------
Total Sales and Marketing Expenses $180,000 $217,000 $242,000 $263,000 $285,000
Sales and Marketing % 2.28% 1.88% 1.51% 1.32% 1.30%

General and Administrative Expenses
General and Administrative Payroll $100,000 $120,000 $130,000 $140,000 $150,000
Marketing/Promotion $3,000 $3,200 $3,600 $3,700 $4,000
Depreciation $5,000 $6,000 $7,000 $8,000 $9,000
Rent $25,000 $30,000 $35,000 $40,000 $45,000
Other General and Administrative Expenses $7,000 $7,500 $8,000 $9,000 $10,000
------------ ------------ ------------ ------------ ------------
Total General and Administrative Expenses $140,000 $166,700 $183,600 $200,700 $218,000
General and Administrative % 1.77% 1.45% 1.15% 1.00% 0.99%

Other Expenses:
Other Payroll $0 $0 $0 $0 $0
Consultants $5,000 $6,000 $7,000 $8,000 $9,000
Other Expenses $1,000 $1,200 $1,500 $1,700 $1,800
------------ ------------ ------------ ------------ ------------
Total Other Expenses $6,000 $7,200 $8,500 $9,700 $10,800
Other % 0.08% 0.06% 0.05% 0.05% 0.05%
------------ ------------ ------------ ------------ ------------
Total Operating Expenses $326,000 $390,900 $434,100 $473,400 $513,800

Profit Before Interest and Taxes $2,499,000 $3,777,100 $5,301,900 $6,699,600 $7,402,200
EBITDA $2,504,000 $3,783,100 $5,308,900 $6,707,600 $7,411,200
Interest Expense $221,510 $221,510 $221,510 $221,510 $221,510
Taxes Incurred $683,247 $1,066,677 $1,524,117 $1,943,427 $2,154,207

Net Profit $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483
Net Profit/Sales 20.18% 21.61% 22.23% 22.67% 22.85%
Profit Yearly
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Gross Margin Yearly
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Projected Cash Flow
Pro Forma Cash Flow
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Cash Received

Cash from Operations
Cash Sales $5,925,000 $8,640,000 $12,000,000 $15,000,000 $16,500,000
Cash from Receivables $1,651,319 $2,731,681 $3,816,444 $4,836,111 $5,418,056
Subtotal Cash from Operations $7,576,319 $11,371,681 $15,816,444 $19,836,111 $21,918,056

Additional Cash Received
Subtotal Cash Received $7,576,319 $11,371,681 $15,816,444 $19,836,111 $21,918,056

Expenditures FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Expenditures from Operations
Cash Spending $345,000 $408,000 $451,000 $487,000 $514,000
Bill Payments $5,907,654 $8,591,202 $11,916,404 $14,937,998 $16,442,714
Subtotal Spent on Operations $6,252,654 $8,999,202 $12,367,404 $15,424,998 $16,956,714

Subtotal Cash Spent $6,252,654 $8,999,202 $12,367,404 $15,424,998 $16,956,714

Net Cash Flow $1,323,665 $2,372,478 $3,449,041 $4,411,113 $4,961,342
Cash Balance $1,523,665 $3,896,144 $7,345,184 $11,756,297 $16,717,639
Projected Balance
Pro Forma BalanceSheet
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Assets

Current Assets
Cash $1,523,665 $3,896,144 $7,345,184 $11,756,297 $16,717,639
Accounts Receivable $323,681 $472,000 $655,556 $819,444 $901,389
Inventory $411,667 $600,167 $841,667 $1,052,083 $1,157,292
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $2,269,012 $4,978,310 $8,852,407 $13,637,825 $18,786,320

Long-term Assets
Long-term Assets $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Accumulated Depreciation $5,000 $11,000 $18,000 $26,000 $35,000
Total Long-term Assets $1,995,000 $1,989,000 $1,982,000 $1,974,000 $1,965,000
Total Assets $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320

Liabilities and Capital FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Current Liabilities
Accounts Payable $479,769 $694,154 $1,004,978 $1,247,733 $1,360,745
Current Borrowing $100,000 $100,000 $100,000 $100,000 $100,000
Other Current Liabilities $5,000 $5,000 $5,000 $5,000 $5,000
Subtotal Current Liabilities $584,769 $799,154 $1,109,978 $1,352,733 $1,465,745

Long-term Liabilities $2,115,100 $2,115,100 $2,115,100 $2,115,100 $2,115,100
Total Liabilities $2,699,869 $2,914,254 $3,225,078 $3,467,833 $3,580,845

Paid-in Capital $0 $0 $0 $0 $0
Retained Earnings ($30,100) $1,564,143 $4,053,056 $7,609,329 $12,143,992
Earnings $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483
Total Capital $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475
Total Liabilities and Capital $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320

Net Worth $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475
Pro Forma BalanceSheet
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Assets

Current Assets
Cash $1,523,665 $3,896,144 $7,345,184 $11,756,297 $16,717,639
Accounts Receivable $323,681 $472,000 $655,556 $819,444 $901,389
Inventory $411,667 $600,167 $841,667 $1,052,083 $1,157,292
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $2,269,012 $4,978,310 $8,852,407 $13,637,825 $18,786,320

Long-term Assets
Long-term Assets $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Accumulated Depreciation $5,000 $11,000 $18,000 $26,000 $35,000
Total Long-term Assets $1,995,000 $1,989,000 $1,982,000 $1,974,000 $1,965,000
Total Assets $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320

Liabilities and Capital FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Current Liabilities
Accounts Payable $479,769 $694,154 $1,004,978 $1,247,733 $1,360,745
Current Borrowing $100,000 $100,000 $100,000 $100,000 $100,000
Other Current Liabilities $5,000 $5,000 $5,000 $5,000 $5,000
Subtotal Current Liabilities $584,769 $799,154 $1,109,978 $1,352,733 $1,465,745

Long-term Liabilities $2,115,100 $2,115,100 $2,115,100 $2,115,100 $2,115,100
Total Liabilities $2,699,869 $2,914,254 $3,225,078 $3,467,833 $3,580,845

Paid-in Capital $0 $0 $0 $0 $0
Retained Earnings ($30,100) $1,564,143 $4,053,056 $7,609,329 $12,143,992
Earnings $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483
Total Capital $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475
Total Liabilities and Capital $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320

Net Worth $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475
Valuation
I nvestment Analysis
Start FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Ending Valuation $0 $0 $0 $0 $0 $17,591,000
Combination as Income
Stream
$0 $0 $0 $0 $0 $17,591,000
Percent Equity Acquired 35%
Net Present Value (NPV) $9,929,661

Assumptions
Discount Rate 10.00%
Valuation Earnings Multiple 10 10 10 10 10
Valuation Sales Multiple 2 2 2 2 2

Calculated Earnings-based
Valuation
$15,940,000 $24,890,000 $35,560,000 $45,350,000 $50,260,000
Calculated Sales-based
Valuation
$15,800,000 $23,040,000 $32,000,000 $40,000,000 $44,000,000
Calculated Average Valuation $15,870,000 $23,965,000 $33,780,000 $42,675,000 $47,130,000
Justation or Payback period
Payback


Projected Payback
Calculation

Investmen
t
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Investment $500,000
Cash Returns by
Year
$100,000 $100,000 $100,000 $100,000 $100,00
0
Combination as
Income Stream
($500,000) $100,000 $100,000 $100,000 $100,000 $100,00
0
Cumulative Net
Cash Flow to
Investors
($500,000) ($400,000
)
($300,000
)
($200,000
)
($100,000
)
$0
Payback Period 5 years
Payback cont…
($400,000)
($300,000)
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
$400,000
$500,000