Cover Page
Business Plan
2011
Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _______________ in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of _______________.
It is acknowledged by 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 reader, may cause serious harm or damage to
_______________.
Upon request, this document is to be immediately returned to _______________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
Table of Contents
1.0 Executive Summary .................................................................................................................... 1
Chart: Highlights .......................................................................................................................... 2
1.1 Objectives.................................................................................................................................... 2
1.2 Mission .......................................................................................................................................... 2
1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 3
2.1 Company Ownership ............................................................................................................... 3
2.2 Start-up Summary ................................................................................................................... 4
Table: Start-up.............................................................................................................................. 4
Chart: Start-up ............................................................................................................................. 5
3.0 Products and Services ................................................................................................................ 5
4.0 Market Analysis Summary ........................................................................................................ 5
4.1 Market Segmentation ........................................................................................................... 12
Table: Market Analysis ............................................................................................................. 14
Chart: Market Analysis (Pie) .................................................................................................. 14
4.2 Target Market Segment Strategy .................................................................................... 14
4.3 Service Business Analysis ................................................................................................... 15
4.3.1 Competition and Buying Patterns ............................................................................ 17
5.0 Web Plan Summary ................................................................................................................... 20
5.1 Website Marketing Strategy ............................................................................................... 20
5.2 Development Requirements ............................................................................................... 21
6.0 Strategy and Implementation Summary .......................................................................... 21
6.1 SWOT Analysis ........................................................................................................................ 21
6.1.1 Strengths ........................................................................................................................... 21
6.1.2 Weaknesses ...................................................................................................................... 22
6.1.3 Opportunities ................................................................................................................... 22
6.1.4 Threats ............................................................................................................................... 22
6.2 Competitive Edge ................................................................................................................... 23
6.4 Sales Strategy ......................................................................................................................... 23
6.4.1 Sales Forecast.................................................................................................................. 26
Table: Sales Forecast ........................................................................................................... 26
Chart: Sales Monthly ............................................................................................................ 27
Chart: Sales by Year ............................................................................................................. 27
Page 1
Table of Contents
6.5 Milestones.................................................................................................................................. 27
Table: Milestones ....................................................................................................................... 28
Chart: Milestones ....................................................................................................................... 29
7.0 Management Summary ............................................................................................................ 29
7.1 Personnel Plan ......................................................................................................................... 29
Table: Personnel ......................................................................................................................... 29
8.0 Financial Plan ............................................................................................................................... 30
8.1 Start-up Funding .................................................................................................................... 30
Table: Start-up Funding .......................................................................................................... 30
8.2 Important Assumptions ....................................................................................................... 30
8.3 Break-even Analysis .............................................................................................................. 31
Table: Break-even Analysis.................................................................................................... 31
Chart: Break-even Analysis ................................................................................................... 31
8.4 Projected Profit and Loss ..................................................................................................... 32
Table: Profit and Loss ............................................................................................................... 32
Chart: Profit Monthly ................................................................................................................ 33
Chart: Profit Yearly .................................................................................................................... 34
Chart: Gross Margin Monthly................................................................................................. 34
Chart: Gross Margin Yearly .................................................................................................... 35
8.5 Projected Cash Flow .............................................................................................................. 35
Table: Cash Flow ........................................................................................................................ 35
Chart: Cash .................................................................................................................................. 36
8.6 Projected Balance Sheet ...................................................................................................... 36
Table: Balance Sheet ................................................................................................................ 36
8.7 Business Ratios ....................................................................................................................... 37
Table: Ratios ................................................................................................................................ 37
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 5
Table: Cash Flow .................................................................................................................................. 5
Page 2
Table of Contents
Table: Balance Sheet .......................................................................................................................... 6
Table: Balance Sheet .......................................................................................................................... 6
Page 3
Table of Contents
Page 1
Service Jockey, Inc. Business Plan
1.0 Executive Summary
Service Jockey is an internet lead generation company providing qualified leads to service
providers in the home services industry. Service Jockey addresses the needs of two customer
groups: consumers and service providers. This patent pending process allows consumers to
create their own quotes, or leads, and select from up to four bidding contractors to satisfy their
quote. Service providers can purchase those select leads that best fit their target job profile,
geographic coverage, capabilities and current available resources.
Service Jockey addresses the $290 billion U.S. home and residential renovation and
improvement industry. Home improvement spending is projected to grow at an annual rate of
3.5% from 2010-2015.According to the Joint Center for Housing Studies at Harvard University
(JCHS)[1], the average annual spend of consumers on home improvement projects is estimated
at $2,500. Service Jockey is headquartered in Arizona, and is positioned for significant growth
in the Southwest. Nevada, Arizona, Utah, Idaho and Texas saw population gains of more than
20 percent between 2000 and 2010, resulting in increased home purchases and home
improvement needs in these regions.
Service Jockey originally identified 20 addressable sub-industries in the home improvement
market. The company was able to define its markets to Landscapers and Plumbers by following
a clear Customer Acquisition Plan, for both consumers and service providers. The Consumer
Acquisition Plan primarily relied on analysis of online search demand trends, with a prioritization
of those sub-industries that generated the strongest consumer lead potential in Phoenix. The
Service Provider Acquisition Plan focused on recruiting landscapers and plumbers to a
"Contractor Advisory Board", to validate business ideas and fulfill Service Jockey leads.
As Service Jockey continues validation of its business model in the Phoenix market, it is
carefully considering future growth and expansion opportunities. The Southwest region is an
ideal initial market based on its increased demand for home improvement services and its close
proximity to Service Jockey headquarters. Service Jockey will evaluate major metropolitan
cities in neighboring states for immediate rollout, with a focus on regional expansion based on
home improvement demand. Growth of Service Jockey into future regions will be supported by
a growing sales force to acquire service provider leads, including Referral, Agent, Affiliate and
outside sales teams.
Service Jockey can accomplish the objectives mentioned above by utilizing a strategic
marketing approach. The company will primarily rely on paid search to acquire consumer
leads, with additional focus on SEO, social media and original articles to drive online traffic.
Additionally, Service Jockey is focused on maximizing monetization opportunities among
consumer and service provider segments. Prioritizing monetization opportunities and phasing
its growth into new markets will be a significant contribution to Service Jockey's long-term
profitability and success.
[1] http://www.jchs.harvard.edu/publications/markets/son2011/son2011.pdf
Page 1
Service Jockey, Inc. Business Plan
Chart: Highlights
1.1 Objectives
Our goal is to become an innovative force in the lead generation industry by creating a
paradigm shift between the way consumers and businesses are brought together; by
compensating the consumer and giving them complete control which results in the highest of
quality lead.
1.2 Mission
To build a community where consumer are compensated for an actionable information
exchange with service providers; which will give the service provider control over lead
selection, pricing and quality.
1.3 Keys to Success
1. Time To Market with a unique and innovative new approach to generating Sale Leads
2. Consumer Participation: Delivering the right message to Consumers so that they can
understnad how and why they can profit from their information.
3. Businesses adopting this platform.
4. Strong Management Team
Continued Innovation in the Mobile Space
5. Developing Affinity Relationships and Endorsements
Page 2
Service Jockey, Inc. Business Plan
2.0 Company Summary
Service Jockey is an internet lead generation company that provides Consumer initiated quote
requests, also called sales leads, to local pre-screened businesses. Service Jockey's patent
pending gamification features, psychometric profiles and lead purchase guidance makes us the
consumers to first and only company in the online lead generation industry to provide both
consumers and businesses with total transparency, resulting in a higher level of satisfaction for
both parties.
Service Jockey's mission is to change the lead generation model in the home service industry
by increasing participation among consumers and minimizing risk for service providers.
History
Service Jockey was founded in 2009 by co-founders Jake Rash and Richard Simon after years of
working in the complex and frustrating internet lead generation industry. In their previous
service-oriented business, Rash and Simon would spend thousands of dollars each month
purchasing low-quality, unreliable internet leads. Lead generation companies often provided
"free gifts" and "dream vacations" incentives when collecting consumers' personal information.
The result was the generation of unqualified internet leads that contained false information or
frustrated consumers who didn't realize their information would be sold to several service
providers. The founders knew there had to be a better way to match eager consumers with
reliable and qualified providers.
Service Jockey was created with a unique focus on understanding lead generation from a
consumer's point of view. Most consumers don't know their personal information and quote
requests are being sold as a lead. Additionally, service providers have little insight on where
consumer leads are coming from. Service Jockey was created to solve these problems,
providing consumers with a portion of the money that was earned in selling their contact
information and providing service providers with improved visibility into the source of generated
leads.
2.1 Company Ownership
Jacob A Rash CEO
Jacob Rash received his Bachelor's Degree in Accounting from Northern Arizona University. Jake
has 12 Years of Related Sales & Business Development Experience, 11 Years of Sales and
Business Management Experience, 10 Years of Entrepreneurial Experience, 6 Years of Business
Planning, 3 Businesses Started from nothing but an Idea, and has 1 Pending Patent, Copyright,
and Trademark. He has previously held his Property and Casualty License, 6 and 63
Licenses(Inactive), and National Mortgage Loan Officer License.
Page 3
Service Jockey, Inc. Business Plan
Sukant Jain/Visionaire CTO
Sukant Jain has 12 years of Entrepreneurial and Software development experience. He is
currently CEO of Visionaire-US, and previously worked for Praxidigm and The Resolution Trust
Corporation. Samir Pandey, our Web Development Manager: Also serves as Senior
Development Mgr for Visionaire-US. Anubandh our Web Development Team Leader Also serves
as Senior Developer for Visionaire-US.
Richard M Simon COO
Richard Simon received his Bachelor's Degree in Business Administration and Finance from
Texas Tech University where he was also a member of the Texas Tech Red Raiders baseball
team. He has nine years of experience in the Financial Services Industry where he has been
involved in a variety of both commercial and residential projects. He currently holds a National
Mortgage Loan Officers License as well as a Mortgage Brokers License in the state of Arizona.
2.2 Start-up Summary
The start-up costs to create Service Jockey were financed by direct owner investment, line of
credit, sweat equity, and 2 years of labor.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Supplies
Insurance
Rent
Computer
IT Support
Website Development & Support
Marketing
Book Keeping
Patent and Trademarking
Sweat Equity
Total Start-up Expenses
$5,885
$3,100
$800
$6,000
$1,500
$3,988
$25,536
$0
$300
$9,000
$0
$56,109
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
$500,000
$5,000
$5,000
$510,000
Total Requirements
$566,109
Page 4
Service Jockey, Inc. Business Plan
Chart: Start-up
3.0 Products and Services
Service Jockey provides a safe, secure, and easy to use online marketplace where consumers
can turn their personal information and service needs into an actionable lead for service
providers. Service Jockey remains at the center of lead generation and fulfillment, simplifying
this process for both the consumer and service provider.
4.0 Market Analysis Summary
Service Jockey provides qualified business leads to contractors in the home services industry.
The Service Jockey business model requires careful consideration of two distinct markets:
online lead generation and home improvement services. This market analysis identifies the
unique trends of each industry and their potential impact on the Service Jockey's overlapping
value proposition to both markets.
Page 5
Service Jockey, Inc. Business Plan
Online Lead Generation
According to the Interactive Advertising Bureau, the 2010 Online Lead Generation market
totaled $1.3 billion in revenues. Additionally, 65% of companies say online lead generation
budgets increased between 2009 and 2010, while only 31% of companies increased offline lead
generation budgets[2]. Popular methods for online lead generation include natural search,
email marketing and paid search campaigns, with paid search consuming the largest portion
(29%) of online lead generation budgets; paid search budgets for online lead generation
increased from 22% of total budget in 2009 to 29% in 2010.
69% of those companies that utilize online lead generation reported that cost effectives was the
most widely perceived advantage of online lead generation. Online lead generation is playing
an increasingly important role for businesses and, on average, is now responsible for 42% of
total sales.
[2] "Online Lead Generation (B2C) Report 2010". Econsultancy.com. September 2010.
Page 6
Service Jockey, Inc. Business Plan
Currently, businesses utilizing online lead generation methods capture an average of 2 to 3%
of all site visitors. In an Econsultancy[3] study, companies were asked to rate the
effectiveness, based on the level of ROI generated for their business, of common online lead
generation channels:



•Premium - standalone landing page offer
•Incentivized lead generation - consumer has been incentivized to be contacted
•Co-registration - consumer has given consent to be contacted, while registering for
something else
Companies using premium methods, similar to Service Jockey's consumer acquisition strategy,
reported 17% High ROI and 56% Medium ROI. Companies using incentivized lead generation
activities, also similar to Service Jockey, reported 14% High ROI and 53% Medium ROI.
[3] "Online Lead Generation (B2C) Report 2010". Econsultancy.com. September 2010.
Page 7
Service Jockey, Inc. Business Plan
Service Jockey has the capability to serve a number of lead generation industries including
insurance, mortgage and loan, baby sitting and child care, and education. However, based on
the expertise of the company's founders and the unique opportunities in the marketplace,
Service Jockey is focused on delivering solutions for the home services industry. A 2011 report
from WebVisible/Synovate[4] analyzed online lead generation for home improvement service
providers, revealing that website visitors were more likely to complete a conversion when:



69% converted when they saw information about specific brands, products and services,
and estimated costs
54% converted when details about the service provider certification and experience was
provided
53% converted when a special offer, discount or added service was provided
The home or residential renovation and improvement market was estimated to be a $290 billion
industry in the United States in 2009. When housing markets crashed between 2005 and 2009,
remodeling spend climbed to more than two-thirds of total residential investment. Many
owners who would normally have moved in recent years have stayed in their homes either
because they are holding out for higher selling prices or to pay down existing mortgages[5].
Home improvement spending is projected to grow at an annual rate of 3.5% from 20102016[6]. Over the next 4 years, 4.5 million new homeowners are expected to purchase homes,
contributing one-third of the total spending increases in the coming years[7].
[4] http://www.webvisible.com/posts/webvisible-survey/
[5] http://www.remodeling.hw.net/economic-conditions/remodeling-industry-poised-for-growth.aspx
[6]http://www.jchs.harvard.edu/publications/remodeling/remodeling2011/2011_remodeling_color.pdf
[7] http://www.remodeling.hw.net/economic-conditions/remodeling-industry-poised-for-growth.aspx
Page 8
Service Jockey, Inc. Business Plan
The Leading Indicator of Remodeling Activity (LIRA), projects home improvement and
remodeling spending will decrease 4 percent through the first quarter of 2012. This slight
decrease in spending can be attributed to the recent economic crisis over the U.S. credit
approval rating decrease. Though the recent remodeling downturn was the most severe in the
last 25 years, with a 12.5% decline in remodeling spending from 2007 to 2009, the industry is
beginning to return to a more typical pattern of growth[8].
Regional Growth Trends
The 2010 Decennial Census reported that population growth in the South and Western regions
of the US grew an average of 14 percent over the past decade; average growth in the Midwest
and Northeast averaged 3 to 4 percent over the same time period[9]. Additionally, Nevada,
Arizona, Utah, Idaho and Texas saw population gains of more than 20 percent between 2000
and 2010. This shift to the South and West can be correlated to increased home purchases and
home improvement needs in these regions. While homeowners in the Western region,
especially California, Nevada and Arizona, were hardest hit by the housing crisis of the late
2000's, population growth remains highest in this region of the US.
Additionally, the Decennial Census reports a significant shift in US populations to metropolitan
cities, especially in the lower-density counties and suburbs of these cities. Medium- and lowdensity metropolitan counties accounted for more than two-thirds US population growth in the
past 10 years.
Total spending in major metropolitan cities over the past ten years is also significantly higher
than in rural areas. The top ten metropolitan markets featured in the image below accounted
for 22 percent of home ownership and 31 percent of all homeowner spending in the US
between 2000 and 2009. The top 35 cities accounted for 43 percent of home ownership and
over 54 percent of total US spending by homeowners on home improvement projects[10]. Home
improvement spend is typically higher in these areas due to higher house prices, older housing
stocks, higher incomes and home values, and a larger share of upscale remodeling
expenditures.
[8] http://www.remodeling.hw.net/economic-conditions/remodeling-industry-poised-for-growth.aspx
[9] http://www.jchs.harvard.edu/publications/markets/son2011/son2011.pdf
[10] http://www.remodeling.hw.net/economic-conditions/remodeling-industry-poised-for-growth.aspx
Page 9
Service Jockey, Inc. Business Plan
Consumer Trends
According to the Joint Center for Housing Studies at Harvard University (JCHS) [11], the
average annual spend of consumers on home improvement projects is estimated at $2,500. In
2011, expenditures for home maintenance and improvement accounted for 45 percent of total
residential fixed investment, a 19 percent increase since 2007. Increasing spend on home
improvement is largely attributed to the slowdown in new home sales, with homeowners
choosing to maintain and remodel existing properties instead of buying new homes.
JCHS estimates that owners spend 2.5 times more on home improvements in the first two
years after buying a home, with that multiple dropping significantly thereafter. In 2009, those
homeowners owning a home for less than two spent $6,200 on annual home improvement
projects, compared to the $2,500 annual spend of homeowners.
[11] http://www.jchs.harvard.edu/publications/markets/son2011/son2011.pdf
Page 10
Service Jockey, Inc. Business Plan
A recent report from Remodelormove.com revealed that the number of homeowners reporting
that the economy is affecting their remodeling plans has jumped from 69% in the spring of
2011 to almost 80% this fall [12]. 51% of homeowners say they are excited about remodeling
but over 11% dread the process, costs, inconveniences, and mess of home improvement
projects. To overcome these challenges, homeowners reported plans to:



67% will hire a general contractor
62% will do some of the work themselves
48% will hire an architect
A 2011 study from Service Magic[13] reveals that the downturn in the economy has influenced
32% of homeowners to actively seek more prices and 31% of homeowners will take longer to
make a decision when making a home improvement purchase. Additionally, 45% of
homeowners are staging home improvement projects into multiple phases to minimize
remodeling costs.
Contractor and Service Provider Trends
The residential renovation and improvement contractor industry is highly fragmented, with
over 170,000 single-location and branches of multi-location companies, represented in the
United States[14]. In 2007, it was estimated there were over 652,000 total contractors in the
US[15]. Self-employed contractors represent the largest proportion of contractors in the home
improvement market and will likely to dominate this market due to the low barriers of entry
and exit.
Two-thirds of all residential remodelers had no employees on payroll in 2007, an increase of 5
percent from 2002. Additionally, 50 percent of all general contractors had gross revenues of
$250,000 or less, with 70 percent billing less than $500,000.
[12]
[13]
[14]
[15]
http://enewschannels.com/2011/09/13/enc13583_075933.php
http://files.servicemagic.com/pdf/press/Remodel_and_Repair_Survey_Q1_11.pdf
http://subscriber.hoovers.com.ezproxy1.lib.asu.edu/H/industry360/overview.html?industryId=1154
http://www.jchs.harvard.edu/publications/remodeling/remodeling2011/2011_remodeling_color.pdf
Page 11
Service Jockey, Inc. Business Plan
According to a 2011 study from Service Magic[16], contractors have reacted to decreasing
home improvement spend in the following ways:




22%
20%
20%
18%
follow-up with homeowners more often to close a sale
have lowered prices
provide more detailed estimates
stage projects in smaller phases to accommodate smaller budgets
Green and Efficiency Home Improvement
Increases in home improvement spend can also be attributed to homeowners desire to improve
the efficiency of their homes. According to the JCHS National Green Remodeling Survey,
"green" projects accounted for 28 percent of home improvement projects in 2010[17].
Government stimulus packages, tax credits and the promise of increased savings, has
encouraged users to invest in energy-efficient and sustainability-related projects. The number
of remodeling contractors that reported completing an energy- or sustainability-related project
rose from 84 percent in 2009 to 97 percent in 2011.
In a 2011 study from Service Magic, requests for solar home improvement projects increased
52% between the first half of 2011 and the second half of 2010[18]. 96% of survey
respondents said energy efficiency was an important consideration in their home improvement
projects. The survey also revealed that 35% of respondents invested in energy efficient
projects to save money while 23% of respondents invested to increase the comfort of their
home.
4.1 Market Segmentation
Service Jockey identified a number of potential sub-industries to launch its product based on
competitor and industry research, including:






















AC/Heating Services
Architects & Engineers
Bathrooms
Cabinets
Cleaning & Maid Service
Concrete, Bricks & Pavers
Countertops
Decks & Porches
Doors
Drywall
Electrician
Fences & Walls
Flooring
Garage Doors
Landscape Design & Install
Lawncare & Sprinklers
Painting
Plumbing
Pool & Spa
Remodel/Addition
Roofing
Windows
[16] http://files.servicemagic.com/pdf/press/Remodel_and_Repair_Survey_Q1_11.pdf
[17] http://www.jchs.harvard.edu/publications/remodeling/remodeling2011/2011_remodeling_color.pdf
[18] http://files.servicemagic.com/pdf/press/Remodel_and_Repair_Survey_Q1_11.pdf
Page 12
Service Jockey, Inc. Business Plan
Since Service Jockey's business model is focused on attracting consumers to its website to post
requests for quotes, the company prioritized its target market approach to understand online
search demand for home services. To fulfill this strategy, Service Jockey refined and prioritized
its list of sub-industries based on:




National Search Trends
National & Local Search Demand (Phoenix)
Projected Conversion Rates
Seasonality
[4] http://www.webvisible.com/posts/webvisible-survey/
Page 13
Service Jockey, Inc. Business Plan
Table: Market Analysis
Market Analysis
Potential Customers
Landscaping
Plumbing
Flooring
Pool Care
Cleaning Services
Cabinets
Concrete
Air Conditioning
Window Install & Repair
Total
Year 1
Year 2
Year 3
Year 4
Year 5
5,530,000
187,126,241
94,890,809
45,000,000
46,153,846
0
0
0
0
378,700,896
5,695,900
192,740,028
97,737,533
46,350,000
47,538,461
0
0
0
0
390,061,922
5,866,777
198,522,229
100,669,659
47,740,500
48,964,615
0
0
0
0
401,763,780
6,042,780
204,477,896
103,689,749
49,172,715
50,433,553
0
0
0
0
413,816,693
6,224,063
210,612,233
106,800,441
50,647,896
51,946,560
0
0
0
0
426,231,193
Growth
3%
3%
3%
3%
3%
3%
3%
3%
3%
3.00%
CAGR
3.00%
3.00%
3.00%
3.00%
3.00%
0.00%
0.00%
0.00%
0.00%
3.00%
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
Service Jockey's Target Market Identification strategy focuses on understanding consumer
demand for home services in the Phoenix market. Identifying and quantifying consumer
demand is critical to the success of the company's business model because this customer group
provides the quotes, or leads, that service providers bid on; service provider purchasing leads is
also the primary source of revenue for Service Jockey.
Search Trend Analysis and Search Demand Research were compared to prioritize ideal target
sub-industries Service Jockey could address for local and national growth. Based on the results
Page 14
Service Jockey, Inc. Business Plan
of this research, Service Jockey narrowed its list of initial addressable sub-industries for the
Phoenix market to:









Landscaping
Plumbing
Flooring
Pool Care
Cleaning Services
Cabinets
Concrete
Air Conditioning
Window Install & Repair
After selecting the top two sub-industries, Landscaping and Plumbing Phoenix pilot, Service
Jockey implemented a paid-search consumer acquisition approach. Service Jockey also
implemented a focus group-approach to acquire service providers. Careful analysis of
consumer and service provider interaction helped Service Jockey determine the success of its
pilot program and appropriate steps to improve rollout strategy.
4.3 Service Business Analysis
The Service Jockey model is unique to the lead generation industry because it is the first
platform by which consumers are rewarded for providing feedback on service providers at the
end of the quoting process. Service providers can select leads that fit their target job profile,
geographic coverage, capabilities and current available resources. Once a job is complete,
consumers provide feedback and are rewarded for their input. This process provides a low risk
model for service provider lead generation while also enhancing consumer participation and
support.
ServiceJockey's analyses has found the following industries to be the most profitable market
segments.
a.
b.
c.
d.
e.
f.
g.
h.
i.
Landscaping
Plumbing
Flooring
Pool Care
Cleaning Services
Cabinets
Concrete
Air Conditioning
Window Install & Repair
Consumer:
1. Completes a Quote Request Form providing the type, size and details of a specific home
service job.
2. Receives up to four (4) quotes from service providers interested in their job.
Page 15
Service Jockey, Inc. Business Plan
3. Reviews Quotes, read service provider reviews from past consumers, and selects one service
provider to fulfill their job.
4. Once the job is completed, consumer answers a short satisfaction survey.
5. Service Jockey sends the consumer a check or gift card in exchange for completing the
satisfaction survey. This is a differentiating element to
the Service Jockey business model!
Service Providers:
1. Can view real-time leads specific to their industry. Leads can be organized according to size
of job, location and other service criteria.
2. Can read reviews from other contractors regarding their experience with the consumer and
buy only the leads that fit their business needs.
3. Upon buying a lead, they receive customer's contact information and make arrangements
with consumer to provide them with a competitive
quote for the job.
4. Provide feedback on their experience with the consumer and the job they performed.
5. With each job a service provider completes, they will collect feedback from consumers to
help improve their rankings and lead conversions. This
is a differentiating element to the Service Jockey business model!
Page 16
Service Jockey, Inc. Business Plan
Customer Value Proposition:
Service Jockey remains at the center of the lead generation and purchase process, helping
manage communication and promote value between the consumer and service provider. This
business model provides shared value to both customer groups, including:




Minimized risk for posting jobs and leads.
Improved visibility and feedback on consumers and service providers.
Streamlined process for posting and fulfilling home service needs.
Reliable, trust-worthy business relationships between consumers and service providers.
In addition to the shared values listed above, the Service Jockey business model provides
unique value to each customer group.
Consumer Value





The consumer, not a lead company, controls their personal information.
Consumers can profit from the sale of their Contact Information when needing companies
compete for their business.
Service providers compete for business, providing consumers with more options and the
best prices for their home service needs.
Service providers undergo rigorous screening and qualifications to ensure they are fit to
serve consumer needs.
Consumers can minimize risk by reviewing feedback from other users when selecting a
service provider, resulting in higher quality jobs.
4.3.1 Competition and Buying Patterns
The online lead generation industry for home improvement services contains a number of wellknown competitors with significant market share. Service Jockey's direct competitors include
Service Magic, Contractors.com, Construction Deal, Networx Systems and Handy American. All
of these companies provide an online platform by which consumers can post home
improvement quotes and service providers can purchase those quotes. An overview of each
competitor can be found below.
Service Jockey's most significant competitive threat is its lack of market share and being newto-market. However, the company has an opportunity to learn from its competitors to improve
positioning in the marketplace. Important competitive opportunities Service Jockey should
consider include:





Emphasize the collection of consumer and service provider feedback in providing a more
reliable home improvement lead generation network.
Create articles about home improvement trends, DIY trends, and best practices for
managing service provider contracts.
Provide a guarantee for services, offering to help compensate consumers and/or service
providers if a job is not performed.
Promote a "Service Jockey Verification" certification, to emphasize the brand's commitment
to finding high-quality service providers.
Create online marketing opportunities (on-site advertising, ranking, inclusion in newsletters,
etc.) for service providers to market their services on Service Jockey.
Page 17
Service Jockey, Inc. Business Plan
Service Magic
Service Magic is one of the largest competitors in this industry, boasting more than 80,000
registered home improvement contractors in its network. Founded in 1998 in Denver, CO,
Service Magic claims to be the "most comprehensive Internet tool" for consumers looking for
home services. In 2008, the company claims that 10 million consumers utilized its online
services.
Additional key points about Service Magic include:








500 home-related services are profiled on the website.
Contractors are screened for licenses, sexual offender, insurance, financial, bankruptcy, and
identity verification filings before being included in the contractor network.
If a job goes wrong and is not performed to the consumers liking, Service Magic will offer up
to $500 of additional labor to finish the job.
1,200 home-related articles are available to consumers and service providers.
Service Magic has a robust affiliate network, with special offers and discounts on business
services, work supplies, office supplies and software products.
Service Magic serves all major US metropolitan cities, including the UK and Canada.
7,368 consumers in Arizona used Service Magic in August.
Top Service Magic services in Arizona include:
o Windows
o Roofing
o Plumbing
o Painting
o A/C Repair
Contractors.com
Contractors.com was founded in 1997 and is focused on helping homeowners locate
contractors. Contractors.com claims to be the "most comprehensive online contractor delivery
network for residential and commercial contractors". The company provides a tiered
subscription model for contractors based on the level of on-site marketing they want to
purchase. Additionally, contractors pay for leads and receive them via email, with lead prices
ranging from $55-80.
Additional key points about Contractors.com include:







Contractors.com was voted "Best of the Web" by Forbes in 2009 and 2010.
Consumers post their quote according to job type and location, and then receive free
estimates via telephone.
Home improvement articles are available to consumers, with topics about popular DIY
projects and best practices for hiring contractors.
70% of all leads result in an estimate.
All leads are validated automatically and by a live person.
Site claims that "service may not be free in all areas".
Tiered subscription model for contractors relies heavily on on-site marketing, ranking, and
advertising features.
Top projects include:
Page 18
Service Jockey, Inc. Business Plan








Additions/Remodels
Bathroom Remodeling
Cleaning
Concrete
Painting
Windows
Electrical
Roofing
Construction Deal
Construction Deal was founded in 2004 and is focused on connecting residential and
commercial building owners with service professionals. Construction Deal has matched millions
of consumers and service providers, generating billions of dollars in home improvement jobs.
The company claims to receive over 1.5 million site visits each month. Similar to Service
Jockey, the company allows four contractors to purchase quotes and also charges contractors
on a tiered subscription model, based on level of on-site advertising they wish to receive.
Additional key points about Construction Deal include:




Construction Deal has referrals with over 600 construction trade organizations.
"Pre-pay" membership enables contractors to purchase advance credits on the site, which is
debited with the purchase of each lead.
A blogging network is available to interested contractors, to improve online marketing.
Tiered subscription model for contractors relies heavily on on-site marketing, ranking, and
advertising features.
Networx Systems
Networx Systems was founded in 2005 with a mission of "connecting homeowners and
businesses with reliable contractors across the country". The company initial started as a
Plumbing network, and has grown into 18 other home improvement sub-industries. In 2009,
Networx launched a DIY component to its website with tips on how to fix, renovate and
decorate homes.
Additional key points about Networx Systems include:



Contractors must apply to be included on the site. They undergo license verification and are
continuously monitored based on job performance.
All contractors must agree to the "Networx Quality Code", providing an internal verification
system for contractors.
Site has less than 10 contractors listed on its Phoenix website.
Handy American
Handy American was founded in 2004 and was likely created from its parent company, Handy
Canadian. The site is primarily focused on construction projects, with an emphasis on heavy
Page 19
Service Jockey, Inc. Business Plan
construction contractors. Handy American claims to have a network of service providers that
are "skilled in more than 140 home-related project areas".
Additional key points about Handy American include:




Site claims to have served over 2,548 job postings.
Handy American puts an emphasis on rating contractors to "assist other project owners and
maintain high-quality contractors".
Site provides articles on DYI trends and advice on how to manage contractor relationships.
Service providers are changed an annual fee to participate in the Handy American
marketing network.
5.0 Web Plan Summary
ServiceJockey.com will be the "Go To" hub for Consumers and Businesses to connect and
conduct business with one another.
For the first time, Consumers will be able to capitalize on their most prized "intangible" asset,
their "Contact Information". They will be incentivized to be careful with their "Contact
Information" and to follow through with requests they make for information on products or
services they are interested in purchasing. The site will track each Consumers
purchasing behavior and help businesses determine how much they are willing to pay via
auction for the opportunity to Compete for each Consumers business.
Consumers benefit by:
 Getting A Competitive Price on their Service or Product Need
 Profit from the Sale of their Contact Information
 Served by the highest quality Companies
Businesses benefit by:
 Surgically Spend their Marketing Budget
 Use Performance Based Data to Purchase Leads for the first time
 Improve Closing Ratios and Profits
 Compete with only Ethical Companies
 Recieve Business Intelligence Regarding the Efficacy of their Sales Strategy's and
the variables they could modify to improve it
5.1 Website Marketing Strategy
The expressed marketing strategy of ServiceJockey increases qualified site traffic
through various advertising channels on search engines and content networks. It also utilizes
advanced targeting and conversion optimization techniques, improving our ability to effectively
reach our target audience and promote ServiceJockey as a premiere online lead generation
source.
Earning and owning digital success is our top priority. We have targeted the following methods
as first steps:
Page 20
Service Jockey, Inc. Business Plan



Domain authority - expanding link coverage from external sources
Content effectiveness & targeting - further developing opportunities & distributing content
Keyword efficiency - expanding keyword coverage and targeting
ServiceJockey will utilize the following marketing channels to drive consumer traffic:
o
o
o
o
o
o
o
o
o
o
o
Third Party CPC Search and Display Networks
Third Party Cost Per Acquisition (CPA) Networks
Third Party Cost Per Lead (CPL) Networks
Social Media
Blogging
Writing Original Articles
Press Releases
Email Marketing
Drip Email Campaigns
Quarterly White Papers
Special Event Attendance
5.2 Development Requirements
The Service Jockey 1.0 platform is completely operational at this time. Our product has many
innovative features but we constantly need to improvise based on data analytics and inputs
received from various sources. This does pose a challenge to our growth but we have put our
development requirements into multiple phases based available funding and business strategy.
6.0 Strategy and Implementation Summary
6.1 SWOT Analysis
Our analysis revolves around our Lead Gen 2.0+ business model which entails:




Compensating the consumer for their participation in getting quotes and provide
feedback about our Service Providers
Gathering intelligence on consumers large and medium size purchase habits
E-Commerce and the opportuinty to expand into multiple verticals.
The weaknesses and threats facing ServiceJockey revolve around challenges facing start ups
and competition in an established market.
6.1.1 Strengths
Strengths:







First to Market with innovative, unique E-commerce Lead Gen 2.0+ Business Model
Better Mouse Trap
Make the lead buying process more efficient and cost effective
Improve Contact and Conversion Ratios
Monetary Benefit to Consumer for Participation
IP - (Lead Gen 2.0+) Pending
"Buy It Now" and Auction Based System -Drives Market Efficencies to Set the Price for each
Lead
Page 21
Service Jockey, Inc. Business Plan





Reputation System for the Consumer and Service Provider
Provide Businesses with Intelligence Regarding the Efficacy of their Sales Strategies
Low overhead Service Jockey
Visionaire - Strong Partner with 20 Years of E-Commerce Experience
Applying Practical Experience From a Decade of Buying and Calling Leads
6.1.2 Weaknesses
Weaknesses:
1.
2.
3.
4.
Start-Up - that is David V. Goliath
Funding - We are seeking Capital
Need to establish Brand Recognition
Fluctuations in the Economy
6.1.3 Opportunities
Opportunity:
1.
2.
3.
4.
5.
Expansion into other Verticals and Regions of the Country
Growing markets
Strategic alliances
Lead Gen 2.0+
Business Model that Scales in Multiple Dimensions
6.1.4 Threats
Threats:
1.
2.
3.
4.
5.
6.
Competitors
Fluctuations In the Economy
Network Security - Worms, Viruses that threaten privacy of consumer information
Continuously Evolving Technology
Fraud
Potential Government regulation of personal infomation for commercial use without the
consumers consent
7. Limited Capital
Page 22
Service Jockey, Inc. Business Plan
6.2 Competitive Edge
1. Innovative & Unique Business Model: We are the first to offer consumers a
marketplace where they can benefit from the sale of thier contact information, if they
conduct themselves in an honest and ethical manner. We are the first to provide businesses
a tool to quickly and accurately evaluate the risk of each lead being offered up for them to
purchase.
2. Multi-dimensional Scalability: We can expand our business model to different verticals,
metro areas and Service Provider Subscription Fees
3. Provide the Best and Most Qualified Lead: We have done this by using technology to
scrub the data provided at registration as well a business community review system in order
to hold consumers accountable for the information they provide in their auction and the
actions they take from each auction.
4. Provide a Better Experience for Consumers and Businesses: this is a result of Better
Leads, Consumer Compensation, and Accountability.
5. Incentivize Consumers for Providing Accurate Information: No Play, No Pay
6. Patent: Our Patent Pending Process will provide a limited level of protection against those
trying to copy our model, and also allows us to make modifications to it Incase we identify
some competition popping up prior to the date we file our Non Provisional Patent.
6.4 Sales Strategy
As Service Jockey executes its regional and national rollout strategy for consumers, it must also
consider its acquisition strategy for service providers. It is estimated there were over 650,000
contractors and service providers in the US in 2007. Service Jockey can target and acquire
individuals in this customer group by utilizing sales, referral, agent and affiliate strategies.
Before moving into any new market, Service Jockey can spin up its online marketing / lead
generation efforts for the geography until it reaches a sufficient number of leads in a given
segment to support a sales effort to onboard service providers. While it is building to that
tipping point of leads, it can send any leads generated to a lead exchange, allowing
those leads to be fulfilled without incurring the cost of onboarding suppliers in the
area. This approach will let Service Jockey have a number of leads on hand that will
entice suppliers to sign up when it comes time to approach them.
For any given service segment, it is recommended that Service Jockey acquire, at a minimum,
10 committed service providers in each city to receive, bid and fulfill leads. Initially, service
providers can be acquired through "in network" targeted introductions and onboarding into
Service Jockey's Contractor Advisory Board. While this is a manual process, Service Jockey has
validated this approach is effective in acquiring initial contractors in the Phoenix market.
Page 23
Service Jockey, Inc. Business Plan
As Service Jockey moves into new, larger metropolitan areas, the company will require an
approach that is not exclusively reliant on pre-existing relationships. Since it is impossible to
predict where each of these tactics will yield the most return, Service Jockey's objective over
the next year is to test these programs at a small scale until it finds a formula that works.
These tactics may change from city to city, depending on the relationships that are developed.
To that end, Service Jockey needs a rollout strategy that combines the following acquisition
methods:
Referral Program
Referral Programs provide incentivized agreement for individuals who have access to a network
of service providers. This includes individual sales representatives within contractor supply
companies. Service Jockey can recruit referrers and offer rewards like registration fees, a small
percentage of income produced, and/or one-time milestone payments for achieving a certain
threshold of sign-ups.
To effectively track the success of a referral program, Service Jockey should require a sign-up
code to represent each referrer during the sign-up process. This will ensure participants are
properly credited for service provider conversions.
Agent Resellers
Once Service Jockey has established an Average Value for a Service Provider, it can implement
a much more aggressive version of the above-mentioned Referral Program. This Agent Reseller
Agreement incentivizes third party individuals to sell the Service Jockey solution as a nonsalaried salesperson. This provides the benefit of paying no fixed costs for a national sales
presence, but generally at a higher commission. This Agent Reseller plan should focus on
recurring revenues for the partner.
Challenges with this model are:


Finding the individuals who are willing to work "commission only"
Maintaining enough long-term business to retain that person.
This strategy is most effective when in conjunction with an Outside Sales rep or with a strong
Sales Support organization.
Affiliates
This involves an incentive agreement for organizations (not individuals) that have access to a
large network of service providers. This agreement works as a replacement to or in conjunction
with the Agent Agreement, and works to motivate a larger organization to drive Service
Page 24
Service Jockey, Inc. Business Plan
Providers to Service Jockey with both tangible benefits (e.g. revenue sharing) and intangible
benefits (e.g. contractor loyalty). This can be modeled after the Home Depot partnership
profile.
While on-boarding an affiliate is a much longer process than that of an individual agent, it can
yield many more sign-ups. Ideal affiliate types include:



Local, Regional and National supply shops (e.g. Ferguson Plumbing Supply), both corporate
and franchised.
Trade Organizations
Trade Certification Organizations
Outside Sales
Once a sufficient number of leads have been generated in a particular city (selling on a lead
exchange at first), and one or two "anchor" Agents have been established, Service Jockey
should consider hiring a dedicated outside sales representative to develop the new metro area.
Service Jockey can centralize sales representatives in the geographic center of a targeted
region to maximize productivity and sales efficiency. However, hiring an outside sales
representative would involve significant travel, and Service Jockey should anticipate at least 3
months of dedicated work in a particular area before it is "ramped-up" to sufficient production
level.
To accelerate outside sales efforts, Service Jockey can quickly promote existing sales
representatives to a "senior" status, and then hire a Junior Sales Representative to augment his
or her efforts. The Junior Rep would focus on smaller service providers and affiliate partners.
That sales team can then shift focus to a new metro area while a Service Manager and Agent
sustain the management and growth of the existing metropolitan city.
An ideal sales rep would have a background in selling to service providers, and may have
worked at a parts/equipment supplier, or for a marketing firm that focused on service
providers, like Yelp, for example. This rep will usually be young (mid- to late- twenties), or else
will have immediately come from an active hunting position, comfortable with a high level of
prospecting activity.
Call Center
For the company's early stage growth, a call center proved to be too slow and too expensive.
Call centers should be utilized when Service Jockey is ready for massive scale, once sufficient
brand and national traction is established. In the short-term, a call center can be outsourced
provide adequate scaling, and for off-hours or overflow. A longer-term strategy would be for
Service Jockey to source the call center internally; this is currently out-of-scope and not
recommended for the immediate future.
Page 25
Service Jockey, Inc. Business Plan
6.4.1 Sales Forecast
Table: Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Standard Memebership Registrations
Premium Membership Registrations
Auction Revenues
Subscription Fee
Total Unit Sales
780
5,460
29,412
0
35,652
1,392
12,528
124,184
117,760
255,864
2,280
20,520
326,088
302,720
651,608
Unit Prices
Standard Memebership Registrations
Premium Membership Registrations
Auction Revenues
Subscription Fee
Year 1
$75.00
$85.00
$95.00
$0.00
Year 2
$150.00
$200.00
$100.00
$25.00
Year 3
$150.00
$200.00
$105.00
$25.00
Standard Memebership Registrations
Premium Membership Registrations
Auction Revenues
Subscription Fee
Total Sales
$58,500
$464,100
$2,794,140
$0
$3,316,740
$208,800
$2,505,600
$12,418,400
$2,944,000
$18,076,800
$342,000
$4,104,000
$34,239,240
$7,568,000
$46,253,240
Direct Unit Costs
Standard Memebership Registrations
Premium Membership Registrations
Auction Revenues
Subscription Fee
Year 1
$0.00
$0.00
$0.00
$0.00
Year 2
$0.00
$0.00
$0.00
$0.00
Year 3
$0.00
$0.00
$0.00
$0.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Unit Sales
Sales
Direct Cost of Sales
Standard Memebership Registrations
Premium Membership Registrations
Auction Revenues
Subscription Fee
Subtotal Direct Cost of Sales
Page 26
Service Jockey, Inc. Business Plan
Chart: Sales Monthly
Chart: Sales by Year
6.5 Milestones
ServiceJockey is based out of Phoenix AZ and is targeting the Phoenix Metro area for our Initial
Launch and Marketing Optimization due to our familiarity with the market and our local
Page 27
Service Jockey, Inc. Business Plan
contacts. ServiceJockey will use the first 3 months to optimize our Landscaping Lead
Generation Campaign and Landscaper Registration strategy. During this time our goal is to:




Optimize Our Lead Generation Funnels, Landing Pages, and Effective Messaging
Generate 10 to 20 leads per day
Reach a Lead Acquisition Cost of 30% (or Less)of the Avg Revenue Generated Per Lead
Sell each lead 3.5 times
Once These Milestones are reached, our plan it to input the actual results into our business plan
and begin raising Capital to begin Scaling Up Operations. While we are in the process of raising
capital, we will also begin the process of adding an additional vertical in the Phoenix Metro
Area repeating the process of acheiving milestones listed above.
Some of the Metro Areas we are eyeing for expansion, upon raising capital are as follows:
California:



San Francisco, CA
Los Angeles, CA
San Diego, CA
Texas




Austin, TX
Houston, TX
Dallas, TX
San Antonio
Table: Milestones
Milestones
Milestone
Landing Page & Conversion Optimization
Generate 10 to 20 Leads Per Day
Register SP to Acheive 3.75 Sales Per Lead
Begin Organic SEO Optimization of Site
Analyze Metrics and Include in Biz Plan
Raise Capital
Add Additional Service Vertical
Develop New Site and Mobile Application
Totals
Start Date
1/18/2012
2/10/2012
3/10/2012
3/31/2012
4/20/2012
4/15/2012
5/1/2012
7/1/2012
End Date
3/18/2012
4/30/2012
4/30/2012
3/31/2013
4/30/2012
6/30/2012
8/31/2012
7/31/2012
Budget
$4,670
$0
$0
$24,000
$0
$7,500
$5,770
$40,000
$81,940
Manager
Jeff Powers
Jeff and Jake
Jeff and Jake
Jake Rash
Jeff Powers
Jake Rash
Jeff and Jake
Samir Pandey
Department
Marketing/IT
Marketing
Marketing
Jake/Richard
Marketing
CEO
Marketing
IT
Page 28
Service Jockey, Inc. Business Plan
Chart: Milestones
7.0 Management Summary
Our managment team will leverage its 36 years of combined experience in Business to
Consumer lead purchasing, sales management, technology development, e-commerce, digital
marketing and customer service to restore the excitement and confidence that lead buyers had
in internet lead vendors before the market became saturated with lead vendors who were just
out to make a quick buck at the expense of their customers.
7.1 Personnel Plan
During each phase of expansion, we will require additional sales and support staff to service the
new Metro Areas that we are expanding in. During each phase we will be hiring at a minimum,
1 Sr. Sales Rep, 2 Jnr. Sales Reps, 1 Telemarketer, and One Customer Service Rep. We will
also be hiring additional staff as we deem it necessary.
All IT staff have been accounted for in our "Additional Tech Related Expenses" Line Item of the
P & L statement.;
Table: Personnel
Personnel Plan
CEO
COO
CIO
Customer Service
IT, PR and other
Accounting
Total People
Total Payroll
Year 1
Year 2
Year 3
$90,000
$90,000
$45,000
$30,000
$35,000
$66,000
16
$150,000
$150,000
`
$90,000
$0
$78,000
28
$210,000
$210,000
$0
$120,000
$0
$78,000
56
$356,000
$468,000
$618,000
Page 29
Service Jockey, Inc. Business Plan
8.0 Financial Plan
8.1 Start-up Funding
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$56,109
$510,000
$566,109
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$10,000
$500,000
$0
$500,000
$510,000
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities
Other Current Liabilities (interest-free)
Total Liabilities
$30,000
$0
$45,000
$75,000
Capital
Planned Investment
Freehold Capital - Jake Rash and Richard Simon
Richard Rash
Barbara Hayes
Chris Haynes
Visionaire
Additional Investment Requirement
Total Planned Investment
$45,000
$30,000
$5,000
$5,000
$15,000
$391,109
$491,109
Loss at Start-up (Start-up Expenses)
Total Capital
($56,109)
$435,000
Total Capital and Liabilities
$510,000
Total Funding
$566,109
8.2 Important Assumptions


Short-term Interest Rate: An interest rate of 11.99% is assumed on the short
term borrowing from our credit line.
Long-term Debt: An interest rate of 12% is assumed is the rate we have agreed to pay on
the $40,000 of longterm convertable debt we has taken out to date.
Page 30
Service Jockey, Inc. Business Plan



Payment Days: This relates to normal accounts payable. Assume 15 - 30 days.
Collection Days: This relates primarily to corporate client or strategic partners. Assumption
is 60 days. Since this represents a small portion of total revenues since we have no shortterm plans to sell leads on credit terms. Most revenue is on a credit card basis with payment
coming within a few days.
Tax Rate: The Arizona corporate tax rate on profits is 6.986%. The tax rates listed in the
table have both state and federal taxes included.
8.3 Break-even Analysis
The Break Even analysis look at the Fiscal Year 2012 (Sept. 2011 to Aug 2012). Since our
expenses increase substantially each quarter we took a 12 month average for our Fixed
Expensenses.
Table: Break-even Analysis
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
1,424
$135,277
Assumptions:
Average Per-Unit Revenue
Average Per-Unit Variable Cost
Estimated Monthly Fixed Cost
$95.00
$59.54
$50,494
Chart: Break-even Analysis
Page 31
Service Jockey, Inc. Business Plan
8.4 Projected Profit and Loss
Outlined below, and in the following table and chart, are some of the intrinsic facets of the
projected profit and loss for Cutting Edge Drapery.
All sales will be performed in house however as we expand some travel will be necessary


Starting in January of 2012, will require a substantial outlay in advertising and promotion.
In later years this can be cut back a bit.
Our Marketing Budget starts off with with a heavey imphasis on Paid Search Marketing,
while we ramp up the reults from our SEO efforts.
Starting in 2012, we plan to begin expanding into new Metro Areas each Quarter. We currently
plan to expand into the 50 largest Metra areas in the country and will begin with the larger
areas and work our way down.
From the Impressions we get from our marketing efforts, we have begun our projection starting
with a Click Through Rate of 2.1% and a 1.8% conversion rate.

We have estimated our federal and state payroll taxes to 8.9% of total salary, commissions
and profit sharing.
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1
Year 2
Year 3
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
$3,316,740
$0
$0
$0
$18,076,800
$0
$0
$0
$46,253,240
$0
$0
$0
Gross Margin
Gross Margin %
$3,316,740
100.00%
$18,076,800
100.00%
$46,253,240
100.00%
$356,000
$585,000
$0
$15,300
$3,000
$1,200
$32,638
$239,250
$1,170
$1,200
$360
$108
$180
$3,000
$66,000
$54,000
$6,000
$3,600
$1,117,655
$11,655
$279,407
$19,500
$7,500
$468,000
$22,850,00
$0
$32,400
$3,000
$1,200
$46,680
$723,300
$3,000
$3,600
$360
$300
$1,200
$3,000
$78,000
$0
$8,500
$3,600
$4,967,360
$48,680
$900,000
$144,000
$18,000
$618,000
$3,000,000
$0
$43,200
$4,800
$1,200
$71,370
$1,135,350
$3,000
$3,600
$360
$1,800
$3,600
$3,000
$78,000
$0
$22,000
$3,600
$13,695,696
$129,718
$900,000
$180,000
$18,000
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Call Center - Outsourcing Inside Sales Force
Payroll Processing Fee
Lead Validation
Pay Pal
SMTP.com
Ring Central
SEO
Accounting
Accts. Payable - Legal Work
Hosting
Press Releases
Money Paid to Consumers
Pay Pal Transfer Fees
Returned Leads
Web Development
Furniture and Fictures
Page 32
Service Jockey, Inc. Business Plan
Total Operating Expenses
$2,803,723
$7,454,180
$19,916,294
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
$513,017
$513,017
$2,780
$153,071
$10,622,620
$10,622,620
$1,440
$3,186,354
$26,336,946
$26,336,946
($480)
$7,901,228
Net Profit
Net Profit/Sales
$357,166
10.77%
$7,434,826
41.13%
$18,436,198
39.86%
Chart: Profit Monthly
Page 33
Service Jockey, Inc. Business Plan
Chart: Profit Yearly
Chart: Gross Margin Monthly
Page 34
Service Jockey, Inc. Business Plan
Chart: Gross Margin Yearly
8.5 Projected Cash Flow
As can be seen from the Cash Flow chart and table below, Service Jockey has a number of
advantages that provide for a large amount of growth in the company's cash account. Because
it is the policy to not extend credit to our lead buyers our receivables will be immaterial.
Furthermore, due to the electronic of our lead inventory and short sales cycle it means that
there is little no inventory cost to speak of. Finally, Service Jockey does not posess a significant
amount of debt or long term capital assets that would affect the cash flow. With the ability to
generate so much cash flow, it is assumed that Service Jockey will seek to use this asset to
expand into new markets in the near future.
Table: Cash Flow
Pro Forma Cash Flow
Year 1
Year 2
Year 3
$3,316,740
$3,316,740
$18,076,800
$18,076,800
$46,253,240
$46,253,240
$0
$18,000
$0
$0
$0
$0
$540,000
$3,874,740
$0
$0
$0
$0
$0
$0
$0
$18,076,800
$0
$0
$0
$0
$0
$0
$0
$46,253,240
Year 1
Year 2
Year 3
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Page 35
Service Jockey, Inc. Business Plan
Expenditures from Operations
Cash Spending
Subtotal Spent on Operations
$2,959,574
$2,959,574
$10,641,974
$10,641,974
$27,817,042
$27,817,042
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
$0
$18,000
$0
$0
$0
$0
$0
$2,977,574
$0
$24,000
$0
$0
$0
$0
$0
$10,665,974
$0
$24,000
$0
$0
$0
$0
$0
$27,841,042
Net Cash Flow
Cash Balance
$897,166
$1,397,166
$7,410,826
$8,807,992
$18,412,198
$27,220,190
Year 1
Year 2
Year 3
$1,397,166
$8,807,992
$27,220,190
Additional Cash Spent
Chart: Cash
8.6 Projected Balance Sheet
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Current Assets
Cash
Page 36
Service Jockey, Inc. Business Plan
Other Current Assets
Total Current Assets
$5,000
$1,402,166
$5,000
$8,812,992
$5,000
$27,225,190
$5,000
$0
$5,000
$1,407,166
$5,000
$0
$5,000
$8,817,992
$5,000
$0
$5,000
$27,230,190
Year 1
Year 2
Year 3
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$30,000
$45,000
$75,000
$6,000
$45,000
$51,000
($18,000)
$45,000
$27,000
Long-term Liabilities
Total Liabilities
$0
$75,000
$0
$51,000
$0
$27,000
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$1,031,109
($56,109)
$357,166
$1,332,166
$1,407,166
$1,031,109
$301,057
$7,434,826
$8,766,992
$8,817,992
$1,031,109
$7,735,883
$18,436,198
$27,203,190
$27,230,190
Net Worth
$1,332,166
$8,766,992
$27,203,190
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
8.7 Business Ratios
Table: Ratios
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
n.a.
445.02%
155.87%
-0.60%
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
0.36%
99.64%
0.36%
100.00%
0.06%
99.94%
0.06%
100.00%
0.02%
99.98%
0.02%
100.00%
26.05%
74.95%
25.05%
100.00%
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
5.33%
0.00%
5.33%
94.67%
0.58%
0.00%
0.58%
99.42%
0.10%
0.00%
0.10%
99.90%
38.69%
26.25%
64.95%
35.05%
100.00%
100.00%
89.23%
17.64%
15.47%
100.00%
100.00%
58.87%
#VALUE!
58.76%
100.00%
100.00%
60.14%
6.49%
56.94%
100.00%
25.51%
7.37%
0.54%
3.91%
18.70
18.70
5.33%
38.30%
36.26%
172.80
172.80
0.58%
121.15%
120.45%
1,008.34
1,008.34
0.10%
96.82%
96.72%
1.62
0.90
64.95%
20.58%
7.21%
Sales Growth
Percent of Total Assets
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Page 37
Service Jockey, Inc. Business Plan
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin
Return on Equity
10.77%
26.81%
41.13%
84.80%
39.86%
67.77%
n.a
n.a
5.58
2.36
12.17
2.05
12.17
1.70
n.a
n.a
0.06
1.00
0.01
1.00
0.00
1.00
n.a
n.a
$1,327,166
184.54
$8,761,992
7,376.82
$27,198,190
0.00
n.a
n.a
0.42
5%
18.70
2.49
0.00
0.49
1%
172.80
2.06
0.00
0.59
0%
1,008.34
1.70
0.00
n.a
n.a
n.a
n.a
n.a
Activity Ratios
Accounts Payable Turnover
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
Page 38
Appendix
Table: Sales Forecast
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
120
Unit Sales
Standard Memebership Registrations
10
20
30
40
50
60
70
80
90
100
110
Premium Membership Registrations
70
140
210
280
350
420
490
560
630
700
770
840
435
455
460
910
1,369
1,824
2,282
2,966
3,648
4,338
5,020
5,705
Auction Revenues
Subscription Fee
Total Unit Sales
Unit Prices
0
0
0
0
0
0
0
0
0
0
0
0
515
615
700
1,230
1,769
2,304
2,842
3,606
4,368
5,138
5,900
6,665
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Standard Memebership Registrations
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
$75.00
Premium Membership Registrations
$85.00
$85.00
$85.00
$85.00
$85.00
$85.00
$85.00
$85.00
$85.00
$85.00
$85.00
$85.00
Auction Revenues
$95.00
$95.00
$95.00
$95.00
$95.00
$95.00
$95.00
$95.00
$95.00
$95.00
$95.00
$95.00
Subscription Fee
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
$25.00
Sales
Standard Memebership Registrations
$750
$1,500
$2,250
$3,000
$3,750
$4,500
$5,250
$6,000
$6,750
$7,500
$8,250
$9,000
$5,950
$11,900
$17,850
$23,800
$29,750
$35,700
$41,650
$47,600
$53,550
$59,500
$65,450
$71,400
$41,325
$43,225
$43,700
$86,450
$130,055
$173,280
$216,790
$281,770
$346,560
$412,110
$476,900
$541,975
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$48,025
$56,625
$63,800
$113,250
$163,555
$213,480
$263,690
$335,370
$406,860
$479,110
$550,600
$622,375
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Standard Memebership Registrations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Premium Membership Registrations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Auction Revenues
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subscription Fee
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Direct Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Premium Membership Registrations
Auction Revenues
Subscription Fee
Total Sales
Direct Unit Costs
Standard Memebership Registrations
Premium Membership Registrations
Auction Revenues
Subscription Fee
0.00%
0.00%
0.00%
0.00%
Direct Cost of Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
CEO
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
COO
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
CIO
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Customer Service
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
$2,500
IT, PR and other
$0
$0
$0
$0
$0
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Accounting
$0
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
Total People
5
6
7
8
9
10
11
12
13
14
15
16
$20,000
$26,000
$26,000
$26,000
$26,000
$31,000
$33,500
$33,500
$33,500
$33,500
$33,500
$33,500
Total Payroll
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$48,025
$56,625
$63,800
$113,250
$163,555
$213,480
$263,690
$335,370
$406,860
$479,110
$550,600
$622,375
Direct Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Costs of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales
Gross Margin
$48,025
$56,625
$63,800
$113,250
$163,555
$213,480
$263,690
$335,370
$406,860
$479,110
$550,600
$622,375
Gross Margin %
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Payroll
$20,000
$26,000
$26,000
$26,000
$26,000
$31,000
$33,500
$33,500
$33,500
$33,500
$33,500
$33,500
Marketing/Promotion
$10,000
$10,000
$10,000
$20,000
$30,000
$40,000
$50,000
$65,000
$65,000
$80,000
$95,000
$110,000
Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Call Center - Outsourcing Inside
Sales Force
Payroll Processing Fee
Lead Validation
Pay Pal
SMTP.com
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$900
$900
$900
$900
$900
$900
$900
$1,800
$1,800
$1,800
$1,800
$1,800
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
15%
15%
15%
$100
$2,974
$0
$100
$2,974
$5,000
$100
$2,669
$8,350
$100
$2,669
$11,700
$100
$2,669
$15,050
$100
$2,669
$18,400
$100
$2,669
$21,750
$100
$2,669
$25,100
$100
$2,669
$28,450
$100
$2,669
$31,800
$100
$2,669
$35,150
$100
$2,669
$38,500
15%
15%
15%
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$90
$100
$30
$9
$180
$100
$30
$9
Ring Central
SEO
Accounting
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$6,000
$0
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$500
$5,350
$5,350
$5,350
$5,350
$5,350
$5,350
$5,350
$5,350
$5,350
$5,350
$0
$500
$300
$16,522
$178
$4,130
$1,000
$0
$500
$300
$17,282
$181
$4,320
$1,000
$0
$500
$300
$17,472
$181
$4,368
$1,000
$500
$500
$300
$34,563
$361
$8,641
$1,500
$500
$500
$300
$52,053
$542
$13,009
$1,500
$500
$500
$300
$69,317
$723
$17,329
$1,500
$500
$500
$300
$86,713
$904
$21,678
$2,000
$500
$500
$300
$112,711
$1,175
$28,178
$2,000
$1,000
$500
$300
$138,634
$1,446
$34,658
$2,000
$1,000
$500
$300
$164,861
$1,717
$41,215
$2,000
$1,000
$500
$300
$190,745
$1,988
$47,686
$2,000
$1,000
$500
$300
$216,782
$2,259
$54,195
$2,000
$1,000
Total Operating Expenses
$57,848
$80,651
$84,434
$119,828
$155,217
$195,332
$233,608
$286,127
$322,151
$373,556
$424,532
$470,439
Profit Before Interest and Taxes
($9,823)
($24,026)
($20,634)
($6,578)
$8,338
$18,148
$30,082
$49,243
$84,709
$105,554
$126,068
$151,936
EBITDA
($9,823)
($24,026)
($20,634)
($6,578)
$8,338
$18,148
$30,082
$49,243
$84,709
$105,554
$126,068
$151,936
$313
$293
$273
$253
$233
$213
$200
$200
$200
$200
$200
$200
Accts. Payable - Legal Work
Hosting
Press Releases
Money Paid to Consumers
Pay Pal Transfer Fees
Returned Leads
Web Development
Furniture and Fictures
Interest Expense
15%
15%
15%
15%
15%
15%
Page 3
Appendix
Taxes Incurred
($3,041)
($7,296)
($6,272)
($2,049)
$2,431
$5,380
$8,965
$14,713
$25,353
$31,606
$37,760
$45,521
Net Profit
($7,095)
($17,024)
($14,635)
($4,782)
$5,673
$12,554
$20,917
$34,330
$59,156
$73,748
$88,108
$106,215
Net Profit/Sales
-14.77%
-30.06%
-22.94%
-4.22%
3.47%
5.88%
7.93%
10.24%
14.54%
15.39%
16.00%
17.07%
Page 4
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Sales
$48,025
$56,625
$63,800
$113,250
$163,555
$213,480
$263,690
$335,370
$406,860
$479,110
$550,600
$622,375
Subtotal Cash from Operations
$48,025
$56,625
$63,800
$113,250
$163,555
$213,480
$263,690
$335,370
$406,860
$479,110
$550,600
$622,375
$0
$18,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$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
$5,000
$15,000
$15,000
$5,000
$500,000
$0
$0
$0
$0
$0
$0
$0
Subtotal Cash Received
$71,025
$71,625
$78,800
$118,250
$663,555
$213,480
$263,690
$335,370
$406,860
$479,110
$550,600
$622,375
Expenditures
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Cash Spending
$55,120
$73,649
$78,435
$118,032
$157,882
$200,926
$242,773
$301,040
$347,704
$405,362
$462,492
$516,160
Subtotal Spent on Operations
$55,120
$73,649
$78,435
$118,032
$157,882
$200,926
$242,773
$301,040
$347,704
$405,362
$462,492
$516,160
Cash Received
Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
0.00%
Expenditures from Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,000
$3,000
$3,000
$3,000
$3,000
$3,000
$2,000
$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
$56,120
$76,649
$81,435
$121,032
$160,882
$203,926
$244,773
$301,040
$347,704
$405,362
$462,492
$516,160
Net Cash Flow
$14,905
($5,024)
($2,635)
($2,782)
$502,673
$9,554
$18,917
$34,330
$59,156
$73,748
$88,108
$106,215
Cash Balance
$514,905
$509,881
$507,246
$504,464
$1,007,137
$1,016,692
$1,035,609
$1,069,939
$1,129,095
$1,202,843
$1,290,951
$1,397,166
Principal Repayment of Current Borrowing
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$500,000
$5,000
$505,000
$514,905
$5,000
$519,905
$509,881
$5,000
$514,881
$507,246
$5,000
$512,246
$504,464
$5,000
$509,464
$1,007,137
$5,000
$1,012,137
$1,016,692
$5,000
$1,021,692
$1,035,609
$5,000
$1,040,609
$1,069,939
$5,000
$1,074,939
$1,129,095
$5,000
$1,134,095
$1,202,843
$5,000
$1,207,843
$1,290,951
$5,000
$1,295,951
$1,397,166
$5,000
$1,402,166
$5,000
$0
$5,000
$510,000
$5,000
$0
$5,000
$524,905
$5,000
$0
$5,000
$519,881
$5,000
$0
$5,000
$517,246
$5,000
$0
$5,000
$514,464
$5,000
$0
$5,000
$1,017,137
$5,000
$0
$5,000
$1,026,692
$5,000
$0
$5,000
$1,045,609
$5,000
$0
$5,000
$1,079,939
$5,000
$0
$5,000
$1,139,095
$5,000
$0
$5,000
$1,212,843
$5,000
$0
$5,000
$1,300,951
$5,000
$0
$5,000
$1,407,166
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Starting Balances
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$30,000
$45,000
$75,000
$47,000
$45,000
$92,000
$44,000
$45,000
$89,000
$41,000
$45,000
$86,000
$38,000
$45,000
$83,000
$35,000
$45,000
$80,000
$32,000
$45,000
$77,000
$30,000
$45,000
$75,000
$30,000
$45,000
$75,000
$30,000
$45,000
$75,000
$30,000
$45,000
$75,000
$30,000
$45,000
$75,000
$30,000
$45,000
$75,000
Long-term Liabilities
Total Liabilities
$0
$75,000
$0
$92,000
$0
$89,000
$0
$86,000
$0
$83,000
$0
$80,000
$0
$77,000
$0
$75,000
$0
$75,000
$0
$75,000
$0
$75,000
$0
$75,000
$0
$75,000
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$491,109
($56,109)
$0
$435,000
$510,000
$496,109
($56,109)
($7,095)
$432,905
$524,905
$511,109
($56,109)
($24,119)
$430,881
$519,881
$526,109
($56,109)
($38,754)
$431,246
$517,246
$531,109
($56,109)
($43,536)
$431,464
$514,464
$1,031,109
($56,109)
($37,863)
$937,137
$1,017,137
$1,031,109
($56,109)
($25,308)
$949,692
$1,026,692
$1,031,109
($56,109)
($4,391)
$970,609
$1,045,609
$1,031,109
($56,109)
$29,939
$1,004,939
$1,079,939
$1,031,109
($56,109)
$89,095
$1,064,095
$1,139,095
$1,031,109
($56,109)
$162,843
$1,137,843
$1,212,843
$1,031,109
($56,109)
$250,951
$1,225,951
$1,300,951
$1,031,109
($56,109)
$357,166
$1,332,166
$1,407,166
Net Worth
$435,000
$432,905
$430,881
$431,246
$431,464
$937,137
$949,692
$970,609
$1,004,939
$1,064,095
$1,137,843
$1,225,951
$1,332,166
Page 6