Confidentiality Agreement mp le 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 _________________________. Sa Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ro ___________________ Name (typed or printed) nP ___________________ Date Bu sin ess Pla This is a business plan. It does not imply an offering of securities. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Table of Contents Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 2 2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 3 4 3.0 Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Future Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 5 6 6 6 4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.1 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.2 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.1 Business Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 7 7 8 8 8 5.0 Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1.1 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1.2 Pricing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1.3 Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 9 9 9 10 6.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 6.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 6.2 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 7.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bu sin ess Pla nP ro Sa mp le 1.0 Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com 13 13 13 14 15 16 18 18 Noah's Arf 1.0 Executive Summary mp le Noah's Arf is a full-service animal care facility dedicated to consistently providing high customer satisfaction by rendering excellent service, quality pet care, and furnishing a fun, clean, enjoyable atmosphere at an acceptable price. We will maintain a friendly creative work environment which respects diversity, ideas, and hard work. Sa The timing is right for starting this new venture. Animals are playing a larger role in our lives, and working people are choosing to provide them with a good life. Loving families with active pets and an active conscience are in search of better lives for their pets and peace of mind for themselves, causing busy animal lovers to flock to an ever-growing number of animal day care facilities across the nation. For customer convenience, in addition to day care, Noah's Arf will include overnight care, in-home care, wash your own, pet grooming, animal behavior, pet portraits, gift and pet specialty products, 24 hour service, and special requests, all at one facility. nP ro Kris Price, owner, has worked at a high paced, customer service oriented profession at a growing company for twenty-three years. She has earned the respect of her colleagues through hard work and dedication. Her daughter is a graduate from veterinarian technical college and will join the staff in the fall of 2001. Kris cares for pets of friends often, and at any given time there have been one or more animals living in her home. From business colleagues to friends surveyed, Kris has what it takes to make this venture extremely successful. She will count on her reputation to exceed expectations while continuously establishing an active client base. 1.1 Objectives ess Sales of $194,595 in FY2002. Gross margin higher than 50% on pet products. Full capacity by year end 2002. Expansion of services by 2003. sin 1. 2. 3. 4. Pla To achieve our objectives, Noah's Arf is seeking $100,000. This loan will be paid back from the cash flow of the business within seven years, collateralized by the assets of the company, backed by personal integrity, experience and a contractual guarantee from the owner. Startup costs will be used to purchase fixed assets of $65,000. The remainder will be used for supplies, advertising, and cash on hand. 1.2 Mission Bu To provide excellent animal care in a pet friendly atmosphere while ensuring our customers, both pet and owner, receive excellent service in a playful safe environment. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 1 Noah's Arf 1.3 Keys to Success le The keys to success in our business are: Sa mp • Superior Customer Service: 24 hour high-quality care and service. • Environment: provide a clean, upscale, odor free, enjoyable environment conducive to giving professional trusting service. • Convenience: offering clients a wide range of services in one environment. • Location: provide an easily accessible location for customer convenience. • Reputation: credibility, integrity, and 100% dedication from 23+ years employment at current workplace. 2.0 Company Summary nP Overnight care. Day care. In-home care. Wash your own pet. Pet grooming. Animal behavior classes. Pet portraits. Gift shop. Special events. Special requests. 24 hour service. Pla • • • • • • • • • • • ro Noah's Arf is a new company that will provide high-level animal care and customer service in the following categories: ess What will set Noah's Arf apart from the competition is our commitment to provide these services in one convenient location that is not limited to dogs and cats. 2.1 Company Ownership Bu sin Noah's Arf will be created as a Oregon Limited Liability Company (LLC) based in Multnomah County, privately owned by its principal operator. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 2 Noah's Arf 2.2 Start-up Summary mp le Total start-up requirements (including legal costs, logo design, stationery and related expenses) comes to $170,000. The start-up costs are to be financed partially by the direct owner investment of $70,000 and financing in the amount of $100,000. The details are included in the following table and chart. Table: Start-up Start-up Long-term Assets Total Assets Total Requirements Funding ess Investment Investor 1 Investor 2 Other Total Investment ro $2,500 $500 $27,000 $39,000 $4,000 $0 $43,000 Pla Start-up Assets Needed Cash Balance on Starting Date Start-up Inventory Other Current Assets Total Current Assets $2,000 $500 $4,000 $5,000 $3,000 $7,500 $2,000 nP Start-up Expenses Legal and Accounting Office Supplies (stationery, etc) Collateral Materials (brochures, cards, etc.) Consultants/Permits Insurance Rent/Lease Space design/contractor Sales and Marketing (advertising, direct mail, etc) Expensed equipment Other Total Start-up Expenses sin Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Current Liabilities $100,000 $143,000 $170,000 $70,000 $0 $70,000 $0 $0 $0 $0 Long-term Liabilities Total Liabilities $100,000 $100,000 Loss at Start-up Total Capital Total Capital and Liabilities ($27,000) $43,000 $143,000 Bu Sa Requirements Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 3 Noah's Arf le Start-up mp $160,000 $140,000 $120,000 $100,000 Sa $80,000 $60,000 $40,000 $0 Assets Investment Loans nP Expenses ro $20,000 2.3 Company Locations and Facilities Pla This facility will be established in an upscale, growing area in Northwest Portland described as the Pearl District. We will service the growing condominium area, the West Hills area, while capturing the Beaverton area for those customers coming into the Downtown Portland and airport areas. The facility is zoned EXD, which will allow day and overnight care. ess 3.0 Products and Services sin Noah's Arf wants to set itself apart from other animal service facilities that may offer only one or two types of services. While talking to several pet owners, I have come to realize they desire the services I am proposing, but are frustrated because they must go to several different businesses. The focus of Noah's Arf is day care and overnight care. However, the services we provide will be above and beyond what our competition can offer. Our business atmosphere will be clean, friendly and upscale where customers will be comfortable leaving their pets. We will offer a personal touch, such as birthday cards and a daily report card for each pet that is registered with Noah's Arf. Bu Our business will offer 24 hour service, a unique concept in this type of industry. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 4 Noah's Arf 3.1 Service Description le Noah's Arf will be considered an upscale, full-service animal care facility. We will offer a wide range of services, not limited to dogs or cats. Services are as follows: 3.2 Competitive Comparison nP ro Sa mp • Overnight Care: Leave your pet for as long as necessary for 24 hour care and attention. 26 large dog runs and eight kitty condos. • Day Care: Provide 3,000 sq. ft. for a fun, safe atmosphere for pets to spend the day exercising and enjoying the company of other pets. • In-home Animal Care: Staff will go to homes to feed, walk, play, and check on pets as often as requested. Mail will be picked up and plants watered if requested. • Wash Your Own Pet: Provide four tubs, brushes, environmentally safe shampoo, dryers and aprons for clients who bring their pets in to wash. • Pet Grooming: Provide on-site professional pet grooming services. • Animal Behavior Courses: Provide certified animal training courses for the beginner, intermediate, and advanced. • Pet Portraits: On-site portrait opportunities. • Gift Shop: Provide specialty pet-related gifts and products. • Special Events: Coordinate pet birthday parties or any other special occasions on-site or at a location of choice. • Special Requests: Provide service for pets with special needs including administering medication, assisting with recovery from surgery, handicaps, etc. • Pet taxi. Pla The competition comes in several forms. There are several organizations that offer one or two services at their location. Day care is a new business, offered currently only to dogs. There are eight dog day care facilities in the Portland area: ess Urban Fauna in Northwest. Lucky Dog Day Care in Tigard. Happy Go Lucky Dog Training and Playcare in N. E. Portland. Day Care for Doggy in N. E. Portland. Doggone Fun! in Tualatin/Sherwood. Kountry Kanine in Gresham. No Bonz About It N. E. in Portland. See Spot Play in S. E. Portland. sin • • • • • • • • None of these facilities offer 24 hour care making it inconvenient for clients to pick up their pet by a specified time. Bu Noah's Arf will service all domestic animals within reason. We will not be limited to dogs only. There are seven wash your own dog facilities in the Portland area: • • • • • • Beauty For the Beast in N. E. Portland. Rub-A-Dub Dog Wash in S. E. Portland. The Dog Wash in Beaverton. Bowsers Bath in Tigard. Connie's U Wash Dog Wash. Aqua Dog in Beaverton. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 5 Noah's Arf • Pups & Cups in N. E. Portland. mp le There are 73 grooming and boarding combined facilities and 18 dog training and obedience combined facilities in the Portland area. Noah's Arf offers complete and total services at one location. One-stop high-quality pet care for customer convenience. 3.3 Sales Literature Sa This business will begin with a general corporate brochure establishing offered services. This brochure will be developed as part of the start-up expenses and distributed to large businesses, restaurants, local veterinarians, pet stores, real estate agencies, fire departments, The Humane Society, and the Washington Park Zoo. There will be a direct mailing to registered pet owners and a website created. ro Literature and mailing for the initial market forums will be very important, with the need to establish a high-quality look and feel in order to create a trusting sense of professionalism. nP 3.4 Technology 3.5 Future Services Pla Noah's Arf will maintain the latest Windows and Internet capabilities including complete email capabilities on the Internet to work directly with clients for reservations, purchasing products online, asking questions, providing information, etc., as well as a Web page will provide information and maximum exposure of available services. ONE YEAR GROWTH PLAN ess • Veterinarian technician on staff to administer vaccinations on specified days and tend to any unforeseen emergencies. • Internet access to watch your pet online. • Monthly newsletter. • Weekly play hour. • Espresso and juice bar. sin THREE YEAR Expand the number of overnight kennels by 10. Mobil pet wash--will go to pet owners home to wash their pets. Sell and distribute gifts and products online. Add an exercise pool. Combine facility with a local veterinarian. Bu • • • • • FIVE YEAR • Expand the number of overnight kennels by 10. • Franchise. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 6 Noah's Arf 4.0 Market Analysis Summary mp le Noah's Arf will focus on dual-income, traveling professional families with hectic schedules. Those trying to strike a balance between the demands of their careers, personal lives and their pets. Our most important group of customers are those who do not have as much time as they desire to invest in their pets and are willing to seek additional help regardless of costs. Two years ago, doggie day care did not exist in Portland. Today, there are eight such centers complete with entrance requirements and waiting lists. Sa 4.1 Target Market Segment Strategy ro We will not be successful waiting for the customer to come to us. Instead, we must focus on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future. nP Therefore, our focus and marketing message will be the services offered. We will develop our message, communicate it, and fulfill our commitment to excellence. 4.2 Market Needs 4.2.1 Market Trends Pla Our target customers are pet owners, not restricted to only one pet per household. They are working professionals that need reliable, trusting and convenient pet care available to them to keep up with the demands of their hectic schedules. There is a need for one-stop convenience. ess Today's trend consists of professionals having their families later in life or deciding not to have children at all. Pet owners are increasingly treating their pets as they would their children. Pets aren't just part of the family anymore. In some cases they are the family. They are willing to invest dollars to have them cared for in an environment that would mirror their home surroundings. sin Another important workplace trend is working longer hours and more days. There is also the traveling professional. Professionals are looking for help to care for their pets in a loving playful daycare. There is a need to have pets cared for over long periods of time while their owners are away on business trips. Downtown and condominium living has also become very popular for professionals. This creates the need to provide a daily exercise and a playful environment for their pets. Bu In 1998, the amount of money Americans spend on dog food totaled $5.9 billion. America's hottest new publication is "The Bark," a monthly publication for dog owners. Portland has their own publication, "Dog Nose News." Hotel chains are encouraging pet owners to bring their pets to stay in their hotels. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 7 Noah's Arf 4.2.2 Market Growth mp le The benefits of sharing our lives with our pets offers owners affection, companionship and security. For busy families, professionals and single pet owners, Noah's Arf offers a peace of mind alternative to leaving their pets home alone. Over 350,000 Portland Metro households have dogs, according to the "Dog Nose News." The nations 58 million pet owners spent an estimated 22.7 billion on their pets in 1999 according to the Pet Industry Joint Advisory Council. Sa A 1998 American Animal Hospital Association survey of pet owners who took their animals to a vet, found that nearly one-third said they spend more time with their pets than with their friends. Animals are playing a larger role in our lives and working people are choosing to provide them with a good life, according to the director of community programs at the San Francisco Society for the Prevention of Cruelty to Animals. ro Pet owners can be confident that their pets are in the best of hands at Noah's Arf. Pets can socialize with buddies, revel in attention from expert care givers, and enjoy play activities. nP 4.3 Service Business Analysis The animal care service industry consists of many small individual facilities. Noah's Arf direction is to establish itself as a full-service, 24 hour facility, creating customer convenience. Pla 4.3.1 Business Participants ess The animal care industry is made up of many small participants that are function-specific. These businesses offer one or two services. There are no businesses that offer full care, including day care, overnight care and in-home care for 24 hours a day. Current facilities have limited hours, causing a great inconvenience for the customer. Noah's Arf will change these trends and offer "one stop convenience" for all their pet needs. 5.0 Strategy and Implementation Summary Emphasize Customer Service sin Noah's Arf will differentiate themselves from other animal care facilities. We will establish our business offering as a clear and viable alternative for our target market. Build a Relationship-Oriented Business Bu Build long-term relationships with clients, not just an occasional visit. Let them become dependent on Noah's Arf to help out in many situations. Make them understand the value of the relationship. Focus on Target Markets We need to focus our offerings on the busy professionals, who want to save time to enjoy convenience, multiple services, and total satisfaction of services. Differentiate and Fulfill the Promise Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 8 Noah's Arf le We can't just market and sell service and products, we must actually deliver as well. We need to make sure we have the knowledge-intensive business and service-intensive business we claim to have. mp 5.1 Competitive Edge Sa Noah's Arf starts with a critical competitive edge: There is no competitor that can claim several multiple services, 24 hour care, and customer convenience at one location. 5.1.1 Marketing Strategy ro Our marketing strategy is a simple one: satisfied customers are our best marketing tool. When a customer leaves our business with a happy pet knowing that it has had a fulfilled day, our name and service will stand on its own. We have talked with many friends, and associates who are excited about our plans and are anxious to use our services. nP In addition, we will distribute advertising brochures to large businesses for bulletin boards, (Nike, Adidas, Columbia Sportswear, Fred Meyer, Epson, Intel, Planar, etc.) offering a 10% discount for a limited time to build a client base. 5.1.2 Pricing Strategy Pla Local TV news shows (AM Northwest, Good Day Oregon) will be contacted to feature our business as a new service to the community. Direct mail will be sent to registered pet owners in the Portland Metro area. Brochures will be distributed to hotels, restaurants, condominiums, pet stores, coffee shops, Washington Park Zoo, local veterinarians, etc. Create a Noah's Arf Web Page. Advertise in the Oregonian, Willamette Weekly, Portland Tribune, and Dog Nose News newspapers. ess Noah's Arf will be priced at the upper edge of what the market will bear, competing with similar types of services in the area. sin 5.1.3 Promotion Strategy We will host a open house with a business card drawing for one free service. We will offer discounts after a specified number of visits for the first six months to establish a client base. Bu Example: • • • • • • • • 10 wash your own = one free day visit gift certificate. 10 day care visits = one free overnight visit gift certificate. 10 overnight visits = one free wash your own gift certificate. 20 visits = $10.00 discount. Three referrals = one free day care visit gift certificate. Monthly business card drawing = one free visit. Create specified packages = one day, one night, one wash for a special discount price. Multiple pets from the same family = family discount rate. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 9 Noah's Arf le • Use promotional items such as frisbees, collars, coffee mugs, etc. with Noah's Arf logo imprinted. 5.2 Sales Forecast mp The following table and charts present the sales forecast for Noah's Arf. Sales Forecast Sales Overnight Care Day Care In Home Care Wash Your Own Grooming Retail Obedience Small Animal Care/cats Special requests, misc. Other Total Sales 2002 $3,300 $2,425 $205 $370 $280 $5,300 $275 $1,025 $155 $0 $13,335 nP Pla Direct Cost of Sales Overnight Care Day Care In Home Care Wash Your Own Grooming Retail Obedience Small Animal Care/cats Special requests, misc. Other Subtotal Direct Cost of Sales 2003 $103,334 $111,360 $11,090 $19,800 $8,880 $12,720 $6,790 $31,482 $1,920 $0 $307,376 2004 $113,668 $133,600 $13,310 $23,760 $10,660 $15,260 $8,150 $34,630 $2,300 $0 $355,338 2003 $4,000 $3,000 $250 $440 $340 $6,360 $330 $1,200 $190 $895 $17,005 2004 $4,400 $3,300 $300 $530 $410 $7,630 $400 $1,400 $230 $1,070 $19,670 ro 2002 $93,940 $146,050 $9,240 $15,900 $7,000 $10,600 $5,460 $28,620 $1,600 $0 $318,410 Sa Table: Sales Forecast Sales Monthly Overnight Care ess $35,000 $30,000 Day Care $25,000 In Home Care Wash Your Own $20,000 sin Grooming $15,000 Retail Obedience $10,000 Small Animal Care/cats Bu $5,000 Special requests, misc. Other $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 10 Noah's Arf le Sales by Year $300,000 mp Overnight Care Day Care $250,000 In Home Care $200,000 Wash Your Own Grooming Sa $150,000 $100,000 $0 6.0 Management Summary 2003 Obedience Small Animal Care/cats Special requests, misc. Other 2004 nP 2002 ro $50,000 Retail Pla Noah's Arf will be organized and managed in a creative, innovative fashion to generate very high levels of customer satisfaction. We will create a working climate conducive to a high degree of personal development and satisfaction for employees. A policy manual will be developed and implemented. Job descriptions will be developed to identify necessary competencies and skill sets. Team oriented professionals with common goals will be hired. ess We will conduct weekly staff meetings to discuss ideas, suggestions, and operations. An annual motivational seminar will be held and we will develop an employee recognition program. As the business grows, the company will offer an employee benefit package to include health and vacation benefits for everyone. sin 6.1 Personnel Plan The personnel plan will be as follows: Bu • One manager to oversee and fill-in for all areas. • Two front desk reception to greet customers, receive payments for services/products, set appointments, answer phones, check-in pets, distribute wash your own supplies and maintain files of clients with data entry. • Four playground supervisors will feed and water pets, keep area clean, walk and exercise, collect pets at check-out time. Two will be on staff full time and two will work part time. Contract Employees: Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 11 Noah's Arf • One pet groomer. • One behavioral trainer. Table: Personnel Personnel Plan Production Personnel Playground supervisor Playground supervisor Playground supervisor part time Playground supervisor part time Playground supervisor Playground Supervisor Groomer Pet taxi/in-home care/dog walker Subtotal Other Personnel Other Other Subtotal Total People Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $36,000 $16,560 $0 $52,560 $36,000 $17,760 $6,912 $60,672 $36,000 $18,240 $7,104 $61,344 $0 $0 $0 $0 $0 6 $86,760 11 $163,440 11 $167,520 Sa 2004 $16,320 $12,240 $6,144 $3,072 $16,320 $12,240 $24,000 $15,840 $106,176 ro Pla General and Administrative Personnel Manager Reception 1 Reception 2 Subtotal 2003 $15,840 $11,880 $5,952 $2,976 $15,840 $11,880 $23,040 $15,360 $102,768 nP Sales and Marketing Personnel Other Other Subtotal 2002 $14,720 $11,200 $5,520 $2,760 $0 $0 $0 $0 $34,200 mp le In the first year, assumptions are that there will be only one receptionist, four playground supervisors, and the manager will serve as part time receptionist and night personal until the business can build. The groomer and trainer will work on contract. In the second year, a second receptionist, two playground supervisors and a groomer will be added to the payroll. ess 6.2 Management Team Kris Price: Owner and Operations Manager Nike, Inc. - 1979 to present: sin ***Owner resume has been omitted for confidentiality.*** Classes and Seminars: Bu ***Owner resume has been omitted for confidentiality.*** Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 12 Noah's Arf 7.0 Financial Plan le The following is Noah's Arf's financial plan. mp 7.1 Important Assumptions Table: General Assumptions General Assumptions 2002 1 0.00% 9.00% 25.00% 0.00% 2003 2 0.00% 9.00% 25.00% 0.00% 2004 3 0.00% 9.00% 25.00% 0.00% $163,440 $258,992 $17,625 $167,520 $277,641 $20,222 ro Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Calculated Totals Payroll Expense New Accounts Payable Inventory Purchase Sa The following table summarizes key financial assumptions, including payment for services in cash or credit card. We assume fast-growth and large demands in this new specialized service. 7.2 Key Financial Indicators nP $86,760 $210,723 $12,235 Pla The benchmark comparison chart highlights our ambitious plan. We feel this is a new fast growing service offered to the community. The opportunity to expand services is endless. Benchmarks ess 1.2 1.0 0.8 0.6 2002 0.2 2003 0.0 2004 Bu sin 0.4 Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 13 Noah's Arf 7.3 Break-even Analysis mp le For our break-even analysis, we assume running costs of approximately $13,800 per month, which includes our full payroll, rent, and utilities, and an estimation of other running costs. Break-even Analysis $15,000 Sa $10,000 $5,000 $0 ($5,000) ro ($10,000) ($15,000) $0 $6,000 $12,000 $18,000 $24,000 $30,000 nP Monthly break-even point Pla Break-even point = where line intersects with 0 Table: Break-even Analysis 18,400 $18,400 Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost $1.00 $0.25 $13,800 Bu sin ess Break-even Analysis: Monthly Units Break-even Monthly Revenue Break-even Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 14 Noah's Arf 7.4 Projected Profit and Loss le Month-by-month assumptions for profit and loss are included in the appendices. mp Table: Profit and Loss Pro Forma Profit and Loss Sales Direct Costs of Goods Production Payroll Other 2003 $307,376 $17,005 $102,768 $0 -----------$119,773 $187,603 61.03% 2004 $355,338 $19,670 $106,176 $0 -----------$125,846 $229,492 64.58% $0 $2,700 $0 $600 -----------$3,300 1.04% $0 $5,500 $0 $1,000 -----------$6,500 2.11% $0 $7,000 $0 $1,000 -----------$8,000 2.25% $52,560 $0 $12,000 $1,200 $14,400 $12,000 $6,000 $38,500 $10,411 $0 -----------$147,071 46.19% $60,672 $0 $12,000 $1,500 $15,000 $13,000 $7,000 $3,600 $19,613 $0 -----------$132,385 43.07% $61,344 $0 $12,000 $1,700 $15,500 $14,000 $8,000 $3,800 $20,102 $0 -----------$136,446 38.40% $0 $3,000 -----------$3,000 0.94% -----------$153,371 $117,504 $8,210 $27,323 $81,970 25.74% TRUE $0 $4,000 -----------$4,000 1.30% -----------$142,885 $44,718 $6,630 $9,522 $28,566 9.29% TRUE $0 $5,000 -----------$5,000 1.41% -----------$149,446 $80,046 $5,050 $18,749 $56,247 15.83% TRUE Pla nP Total Sales and Marketing Expenses Sales and Marketing % General and Administrative Expenses: General and Administrative Payroll Sales and Marketing and Other Expenses Depreciation vehicle maintence Utilities Insurance Taxes Rent Payroll Taxes Other General and Administrative Expenses ro Sa Cost of Goods Sold Gross Margin Gross Margin % Operating Expenses: Sales and Marketing Expenses: Sales and Marketing Payroll Advertising/Promotion Travel Miscellaneous 2002 $318,410 $13,335 $34,200 $0 -----------$47,535 $270,875 85.07% ess Total General and Administrative Expenses General and Administrative % Other Expenses: Other Payroll Contract/Consultants Total Other Expenses Other % Bu sin Total Operating Expenses Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales Include Negative Taxes Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 15 Noah's Arf 7.5 Projected Cash Flow le The following chart and table show the project cash flow for Noah's Arf. mp Cash $140,000 $120,000 $100,000 Sa $80,000 $60,000 $40,000 Net Cash Flow Cash Balance ro $20,000 $0 ($20,000) Jul Aug Sep Oct Nov Dec Bu sin ess Pla nP Jan Feb Mar Apr May Jun Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 16 Noah's Arf Table: Cash Flow 2002 Cash Received Cash from Operations: Cash Sales Cash from Receivables Subtotal Cash from Operations $318,410 $0 $318,410 Additional Cash Received Non Operating (Other) Income 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 $0 $0 $0 $0 $0 $0 $0 $0 $318,410 $0 $0 $0 $0 $0 $0 $0 $0 $307,376 $0 $0 $0 $0 $0 $0 $0 $0 $355,338 2002 2003 2004 $12,617 $199,923 $212,540 $8,438 $262,569 $271,007 $10,002 $276,302 $286,304 $0 $0 $0 $0 $17,556 $0 $0 $0 $230,096 $0 $0 $0 $0 $17,556 $0 $0 $0 $288,563 $0 $0 $0 $0 $17,556 $0 $0 $0 $303,860 $88,314 $127,314 $18,813 $146,127 $51,478 $197,605 Sa mp $355,338 $0 $355,338 Bu sin ess Pla nP Additional Cash Spent Non Operating (Other) Expense 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 2004 $307,376 $0 $307,376 ro Expenditures Expenditures from Operations: Cash Spending Payment of Accounts Payable Subtotal Spent on Operations Net Cash Flow Cash Balance 2003 le Pro Forma Cash Flow Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 17 Noah's Arf 7.6 Projected Balance Sheet Table: Balance Sheet Pro Forma Balance Sheet Long-term Liabilities Total Liabilities Sa $100,000 $24,000 $76,000 $225,647 2004 $197,605 $4,071 $0 $201,677 $100,000 $36,000 $64,000 $265,677 2002 $10,799 $0 $0 $10,799 2003 $7,222 $0 $0 $7,222 2004 $8,561 $0 $0 $8,561 $82,444 $93,243 $64,888 $72,110 $47,332 $55,893 $70,000 ($27,000) $81,970 $124,970 $218,214 $124,970 $70,000 $54,970 $28,566 $153,537 $225,647 $153,537 $70,000 $83,537 $56,247 $209,783 $265,677 $209,783 ess 7.7 Business Ratios $100,000 $12,000 $88,000 $218,214 Pla Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth 2003 $146,127 $3,520 $0 $149,647 nP Liabilities and Capital Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities 2002 $127,314 $2,900 $0 $130,214 ro Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets mp le The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt obligations--as long as we can achieve our specific objectives. Bu sin The table follows with our main business ratios. We intend to improve gross margins and inventory turnover. Industry profile ratios based on the Standard Industrial Classification (SIC) code 0752, Animal Specialty Services, nec., are shown for comparison. Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 18 Noah's Arf Table: Ratios Ratio Analysis ess Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover sin 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 Bu 0.00% 1.33% 0.00% 59.67% 40.33% 100.00% 0.00% 1.56% 0.00% 66.32% 33.68% 100.00% 0.00% 1.53% 0.00% 75.91% 24.09% 100.00% 15.80% 8.20% 31.90% 55.90% 44.10% 100.00% 3.20% 28.76% 31.96% 68.04% 3.22% 17.82% 21.04% 78.96% 32.70% 19.90% 52.60% 47.40% 100.00% 85.07% 59.33% 0.85% 36.90% 100.00% 61.03% 51.74% 1.79% 14.55% 100.00% 64.58% 48.76% 1.97% 22.53% 100.00% 42.50% 26.40% 0.50% 2.40% 12.06 11.79 42.73% 87.46% 50.09% 20.72 20.23 31.96% 24.81% 16.88% 23.56 23.08 21.04% 35.75% 28.23% 2.19 1.48 52.60% 4.50% 9.40% 2002 $53,068 2003 $27,943 2004 $32,303 Industry $0 0.00% 2002 25.74% 65.59% 2003 9.29% 18.61% 2004 15.83% 26.81% n.a n.a 0.00 0 4.74 19.51 15 1.46 0.00 0 5.30 35.86 13 1.36 0.00 0 5.18 32.43 10 1.34 n.a n.a n.a n.a n.a n.a 0.75 0.12 0.47 0.10 0.27 0.15 n.a n.a $119,414 14.31 $142,425 6.74 $193,115 15.85 n.a n.a 0.69 5% 11.79 2.55 0.00 0.73 3% 20.23 2.00 0.00 0.75 3% 23.08 1.69 0.00 n.a n.a n.a n.a n.a ro nP Pla Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Industry Profile -2.90% 4.95% 37.78% 42.73% 57.27% Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Business Vitality Profile Sales per Employee Survival Rate 2004 15.60% Sa Current Liabilities Long-term Liabilities Total Liabilities Net Worth 2003 -3.47% le Percent of Total Assets Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets 2002 0.00% mp Sales Growth Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.comPage 19 Appendix Appendix Table: Personnel Personnel Plan Production Personnel Playground supervisor Playground supervisor Playground supervisor part time Playground supervisor part time Playground supervisor Playground Supervisor Groomer Pet taxi/in-home care/dog walker Subtotal Sales and Marketing Personnel Other Other Subtotal General and Administrative Personnel Manager Reception 1 Reception 2 Subtotal Other Personnel Other Other Subtotal Total People Total Payroll Jan $640 $640 $240 $120 $0 $0 $0 $0 $1,640 Feb $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 Mar $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 Apr $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 May $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 Jun $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 Jul $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,000 $720 $0 $3,720 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $0 $0 $0 $0 $0 P s 6 $7,400 6 $7,400 6 $5,360 u B n i s s e 6 $7,400 n la 6 $7,400 e l p Aug $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 Sep $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 Oct $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 Nov $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 Dec $1,280 $960 $480 $240 $0 $0 $0 $0 $2,960 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $3,000 $1,440 $0 $4,440 $0 $0 $0 $0 $0 $0 $0 6 $7,400 6 $7,400 6 $7,400 6 $7,400 6 $7,400 6 $7,400 6 $7,400 r P S o Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com m a Page 1 Appendix Appendix Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Calculated Totals Payroll Expense New Accounts Payable Inventory Purchase u B Jan 1 0.00% 9.00% 25.00% 0.00% Feb 2 0.00% 9.00% 25.00% 0.00% Mar 3 0.00% 9.00% 25.00% 0.00% Apr 4 0.00% 9.00% 25.00% 0.00% May 5 0.00% 9.00% 25.00% 0.00% Jun 6 0.00% 9.00% 25.00% 0.00% Jul 7 0.00% 9.00% 25.00% 0.00% Aug 8 0.00% 9.00% 25.00% 0.00% $5,360 $7,941 $0 $7,400 $14,191 $0 $7,400 $14,680 $0 $7,400 $15,297 $0 $7,400 $16,846 $970 $7,400 $17,640 $1,225 $7,400 $19,843 $1,765 $7,400 $20,332 $1,595 n i s s e P s n la r P S o Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com e l p Sep 9 0.00% 9.00% 25.00% 0.00% Oct 10 0.00% 9.00% 25.00% 0.00% Nov 11 0.00% 9.00% 25.00% 0.00% Dec 12 0.00% 9.00% 25.00% 0.00% $7,400 $20,509 $1,375 $7,400 $21,380 $2,155 $7,400 $22,604 $3,150 $7,400 $19,460 $0 m a Page 2 Appendix Appendix Table: Profit and Loss Pro Forma Profit and Loss Sales Direct Costs of Goods Production Payroll Other Cost of Goods Sold Gross Margin Gross Margin % Operating Expenses: Sales and Marketing Expenses: Sales and Marketing Payroll Advertising/Promotion Travel Miscellaneous Total Sales and Marketing Expenses Sales and Marketing % General and Administrative Expenses: General and Administrative Payroll Sales and Marketing and Other Expenses Depreciation vehicle maintence Utilities Insurance Taxes Rent Payroll Taxes Other General and Administrative Expenses 12% Total General and Administrative Expenses General and Administrative % Other Expenses: Other Payroll Contract/Consultants Total Other Expenses Other % Total Operating Expenses Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales Include Negative Taxes u B n i s Jan $2,800 $235 $1,640 Feb $13,420 $510 $2,960 Mar $15,760 $640 $2,960 -----------$1,875 $925 33.04% -----------$3,470 $9,950 74.14% $0 $500 $0 $50 -----------$550 19.64% $3,720 $0 $1,000 $100 $1,200 $1,000 $500 $643 $0 -----------$8,163 291.54% s e $0 $250 -----------$250 8.93% -----------$8,963 ($8,038) $750 ($2,197) ($6,591) -235.40% -----------$3,600 $12,160 77.16% Apr $18,750 $855 $2,960 $0 -----------$3,815 $14,935 79.65% May $21,845 $910 $2,960 $0 -----------$3,870 $17,975 82.28% Jun $24,495 $1,015 $2,960 $0 -----------$3,975 $20,520 83.77% Jul $32,415 $1,265 $2,960 $0 -----------$4,225 $28,190 86.97% $0 $200 $0 $50 -----------$250 1.86% $0 $200 $0 $50 -----------$250 1.59% $0 $200 $0 $50 -----------$250 1.33% $0 $200 $0 $50 -----------$250 1.14% $0 $200 $0 $50 -----------$250 1.02% $0 $200 $0 $50 -----------$250 0.77% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 94.10% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 80.13% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 67.35% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 57.81% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 51.55% $0 $250 -----------$250 1.86% -----------$13,128 ($3,178) $738 ($979) ($2,937) -21.89% $0 $250 -----------$250 1.59% -----------$13,128 ($968) $726 ($424) ($1,271) -8.06% $0 $250 -----------$250 1.33% -----------$13,128 $1,807 $714 $273 $820 4.37% $0 $250 -----------$250 1.14% -----------$13,128 $4,847 $702 $1,036 $3,109 14.23% $0 $250 -----------$250 1.02% -----------$13,128 $7,392 $690 $1,675 $5,026 20.52% P s n la r P e l p Aug $35,415 $1,375 $2,960 $0 -----------$4,335 $31,080 87.76% Sep $37,115 $1,375 $2,960 $0 -----------$4,335 $32,780 88.32% Oct $38,165 $1,635 $2,960 $0 -----------$4,595 $33,570 87.96% Nov $40,165 $2,140 $2,960 $0 -----------$5,100 $35,065 87.30% Dec $38,065 $1,380 $2,960 $0 -----------$4,340 $33,725 88.60% $0 $200 $0 $50 -----------$250 0.71% $0 $200 $0 $50 -----------$250 0.67% $0 $200 $0 $50 -----------$250 0.66% $0 $200 $0 $50 -----------$250 0.62% $0 $200 $0 $50 -----------$250 0.66% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 38.96% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 35.66% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 34.02% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 33.09% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 31.44% $4,440 $0 $1,000 $100 $1,200 $1,000 $500 $3,500 $888 $0 -----------$12,628 33.17% $0 $250 -----------$250 0.77% -----------$13,128 $15,062 $678 $3,596 $10,788 33.28% $0 $250 -----------$250 0.71% -----------$13,128 $17,952 $666 $4,321 $12,964 36.61% $0 $250 -----------$250 0.67% -----------$13,128 $19,652 $654 $4,749 $14,248 38.39% $0 $250 -----------$250 0.66% -----------$13,128 $20,442 $642 $4,950 $14,850 38.91% $0 $250 -----------$250 0.62% -----------$13,128 $21,937 $630 $5,327 $15,980 39.79% $0 $250 -----------$250 0.66% -----------$13,128 $20,597 $618 $4,995 $14,984 39.36% S o Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com m a Page 3 Appendix Appendix Table: Cash Flow Pro Forma Cash Flow Cash Received Cash from Operations: Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Non Operating (Other) Income 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 0.00% Jan Feb Mar Apr May Jun Jul $2,800 $0 $2,800 $13,420 $0 $13,420 $15,760 $0 $15,760 $18,750 $0 $18,750 $21,845 $0 $21,845 $24,495 $0 $24,495 $32,415 $0 $32,415 $0 $0 $0 $0 $0 $0 $0 $0 $2,800 $0 $0 $0 $0 $0 $0 $0 $0 $13,420 $0 $0 $0 $0 $0 $0 $0 $0 $15,760 $0 $0 $0 $0 $0 $0 $0 $0 $18,750 $0 $0 $0 $0 $0 $0 $0 $0 $21,845 $0 $0 $0 $0 $0 $0 $0 $0 $24,495 $0 $0 $0 $0 $0 $0 $0 $0 $32,415 May Jun r P Aug e l p Sep m a Oct Nov Dec $35,415 $0 $35,415 $37,115 $0 $37,115 $38,165 $0 $38,165 $40,165 $0 $40,165 $38,065 $0 $38,065 $0 $0 $0 $0 $0 $0 $0 $0 $35,415 $0 $0 $0 $0 $0 $0 $0 $0 $37,115 $0 $0 $0 $0 $0 $0 $0 $0 $38,165 $0 $0 $0 $0 $0 $0 $0 $0 $40,165 $0 $0 $0 $0 $0 $0 $0 $0 $38,065 Jul Aug Sep Oct Nov Dec S o Expenditures Expenditures from Operations: Cash Spending Payment of Accounts Payable Subtotal Spent on Operations Jan Feb Mar Apr $215 $6,068 $6,283 $656 $10,358 $11,014 $710 $14,207 $14,918 $779 $14,701 $15,480 $951 $15,348 $16,299 $1,039 $16,872 $17,911 $1,284 $17,713 $18,997 $1,338 $19,860 $21,198 $1,358 $20,338 $21,696 $1,455 $20,538 $21,993 $1,591 $21,421 $23,012 $1,241 $22,499 $23,741 Additional Cash Spent Non Operating (Other) Expense 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 $0 $0 $0 $0 $0 $0 $0 $6,283 $0 $0 $0 $0 $1,596 $0 $0 $0 $12,610 $0 $0 $0 $0 $1,596 $0 $0 $0 $16,514 $0 $0 $0 $0 $1,596 $0 $0 $0 $17,076 $0 $0 $0 $0 $1,596 $0 $0 $0 $17,895 $0 $0 $0 $0 $1,596 $0 $0 $0 $19,507 $0 $0 $0 $0 $1,596 $0 $0 $0 $20,593 $0 $0 $0 $0 $1,596 $0 $0 $0 $22,794 $0 $0 $0 $0 $1,596 $0 $0 $0 $23,292 $0 $0 $0 $0 $1,596 $0 $0 $0 $23,589 $0 $0 $0 $0 $1,596 $0 $0 $0 $24,608 $0 $0 $0 $0 $1,596 $0 $0 $0 $25,337 $810 $36,327 ($754) $35,573 $1,674 $37,248 $3,950 $41,198 $4,988 $46,186 $11,822 $58,008 $12,621 $70,629 $13,823 $84,452 $14,576 $99,028 $15,557 $114,585 $12,728 $127,314 Net Cash Flow Cash Balance s e ($3,483) $35,517 u B n i s P s n la Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 4 Appendix Appendix Table: Balance Sheet Pro Forma Balance Sheet Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Starting Balances $39,000 $4,000 $0 $43,000 Jan $35,517 $3,765 $0 $39,282 Feb $36,327 $3,255 $0 $39,582 Mar $35,573 $2,615 $0 $38,188 Apr $37,248 $1,760 $0 $39,008 May $41,198 $1,820 $0 $43,018 Jun $46,186 $2,030 $0 $48,216 $100,000 $0 $100,000 $143,000 $100,000 $1,000 $99,000 $138,282 $100,000 $2,000 $98,000 $137,582 $100,000 $3,000 $97,000 $135,188 $100,000 $4,000 $96,000 $135,008 $100,000 $5,000 $95,000 $138,018 $100,000 $6,000 $94,000 $142,216 $0 $0 $0 $0 Jan $1,873 $0 $0 $1,873 Feb $5,706 $0 $0 $5,706 Mar $6,179 $0 $0 $6,179 Apr $6,775 $0 $0 $6,775 May $8,272 $0 $0 $8,272 Jun $9,040 $0 $0 $9,040 Long-term Liabilities Total Liabilities $100,000 $100,000 $100,000 $101,873 $98,404 $104,110 $96,808 $102,987 $95,212 $101,987 $93,616 $101,888 $92,020 $101,060 Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $70,000 ($27,000) $0 $43,000 $143,000 $43,000 $70,000 ($27,000) ($6,591) $36,409 $138,282 $36,409 $70,000 ($27,000) ($9,528) $33,472 $137,582 $33,472 $70,000 ($27,000) ($10,799) $32,201 $135,188 $32,201 $70,000 ($27,000) ($9,979) $33,021 $135,008 $33,021 $70,000 ($27,000) ($6,870) $36,130 $138,018 $36,130 $70,000 ($27,000) ($1,844) $41,156 $142,216 $41,156 Liabilities and Capital Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities u B n i s s e P s n la r P Jul $58,008 $2,530 $0 $60,538 Aug $70,629 $2,750 $0 $73,379 S o Sep $84,452 $2,750 $0 $87,202 m a e l p Oct $99,028 $3,270 $0 $102,298 Nov $114,585 $4,280 $0 $118,865 Dec $127,314 $2,900 $0 $130,214 $100,000 $10,000 $90,000 $192,298 $100,000 $11,000 $89,000 $207,865 $100,000 $12,000 $88,000 $218,214 $100,000 $7,000 $93,000 $153,538 $100,000 $8,000 $92,000 $165,379 $100,000 $9,000 $91,000 $178,202 Jul $11,170 $0 $0 $11,170 Aug $11,643 $0 $0 $11,643 Sep $11,813 $0 $0 $11,813 Oct $12,656 $0 $0 $12,656 Nov $13,839 $0 $0 $13,839 Dec $10,799 $0 $0 $10,799 $90,424 $101,594 $88,828 $100,471 $87,232 $99,045 $85,636 $98,292 $84,040 $97,879 $82,444 $93,243 $70,000 ($27,000) $8,944 $51,944 $153,538 $51,944 $70,000 ($27,000) $21,908 $64,908 $165,379 $64,908 $70,000 ($27,000) $36,157 $79,157 $178,202 $79,157 $70,000 ($27,000) $51,006 $94,006 $192,298 $94,006 $70,000 ($27,000) $66,986 $109,986 $207,865 $109,986 $70,000 ($27,000) $81,970 $124,970 $218,214 $124,970 Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com Page 5 Appendix Appendix Table: Sales Forecast Sales Forecast Sales Overnight Care Day Care In Home Care Wash Your Own Grooming Retail Obedience Small Animal Care/cats Special requests, misc. Other Total Sales Jan $840 $1,150 $120 Direct Cost of Sales Overnight Care Day Care In Home Care Wash Your Own Grooming Retail Obedience Small Animal Care/cats Special requests, misc. Other Subtotal Direct Cost of Sales u B $0 $150 $0 $540 $0 $0 $2,800 Feb $2,800 $6,900 $360 $900 $0 $250 $0 $2,160 $50 $0 $13,420 Mar $4,200 $6,900 $360 $900 $400 $400 $390 $2,160 $50 $0 $15,760 Apr $6,300 $6,900 $600 $1,200 $500 $600 $390 $2,160 $100 $0 $18,750 May $6,300 $9,200 $1,200 $1,200 $500 $600 $585 $2,160 $100 $0 $21,845 Jun $6,300 $11,500 $1,200 $1,200 $600 $800 $585 $2,160 $150 $0 $24,495 Jan $50 $75 $10 $0 $0 $75 $0 $25 $0 $0 $235 Feb $100 $150 $10 $25 $20 $125 $25 $50 $5 $0 $510 Mar $150 $150 $10 $25 $25 $200 $25 $50 $5 $0 $640 Apr $200 $150 $15 $30 $25 $300 $25 $100 $10 $0 $855 May $200 $200 $20 $30 $25 $300 $25 $100 $10 $0 $910 Jun $200 $200 $20 $30 $25 $400 $25 $100 $15 $0 $1,015 n i s s e P s n la r P Jul $11,200 $13,800 $1,200 $1,200 $600 $800 $585 $2,880 $150 $0 $32,415 Aug $11,200 $16,100 $1,200 $1,500 $750 $1,000 $585 $2,880 $200 $0 $35,415 Sep $11,200 $18,400 $600 $1,500 $750 $1,000 $585 $2,880 $200 $0 $37,115 Jul $400 $250 $20 $30 $25 $400 $25 $100 $15 $0 $1,265 Aug $400 $250 $20 $35 $25 $500 $25 $100 $20 $0 $1,375 Sep $400 $250 $20 $35 $25 $500 $25 $100 $20 $0 $1,375 S o Copyright © Palo Alto Software, Inc. 1995-2008 All rights reserved. Not for resale, reproduction, publication, or distribution. www.paloalto.com m a e l p Oct $11,200 $18,400 $600 $1,800 $1,000 $1,500 $585 $2,880 $200 $0 $38,165 Nov $11,200 $18,400 $1,200 $2,100 $1,000 $2,500 $585 $2,880 $300 $0 $40,165 Dec $11,200 $18,400 $600 $2,400 $900 $1,000 $585 $2,880 $100 $0 $38,065 Oct $400 $250 $20 $40 $30 $750 $25 $100 $20 $0 $1,635 Nov $400 $250 $20 $40 $30 $1,250 $25 $100 $25 $0 $2,140 Dec $400 $250 $20 $50 $25 $500 $25 $100 $10 $0 $1,380 Page 6