Garretts Bike Shop PDF

CONFIDENTIAL
GARRETT'S BIKE
SHOP
TOP-QUALITY GEAR, REPAIR, AND ADVICE FROM YOUR LOCAL CYCLING FANATICS
BUSINESS PLAN
Prepared February 2016
CONTACT INFORMATION
Garrett McKenzie
garrett@universitycycleworks.com
www.universitycycleworks.com
488 East 11th Avenue, Suite 220

Eugene, OR 97401, USA
(555) 555-5555
GARRETT'S BIKE SHOP - QB
Table of Contents
Executive Summary .........................................................................1
What We Sell .................................................................................................................................................................1
Financial Summary .......................................................................................................................................................1
Who Are We..................................................................................................................................................................3
Opportunity ...................................................................................................................................................................3
Expectations ..................................................................................................................................................................3
Who We Sell To ............................................................................................................................................................4
Products and Services......................................................................5

Products and Services .................................................................................................................................................5
Customer Validation Results .......................................................................................................................................6
Competitors...................................................................................................................................................................6
Target Market ..................................................................................8

Market Overview..........................................................................................................................................................8
Key Customers..............................................................................................................................................................8
Market Growth..............................................................................................................................................................9
Market Needs................................................................................................................................................................9
Market Trends...............................................................................................................................................................9
Strategy and Implementation .........................................................11

Marketing Plan ............................................................................................................................................................11
Competitive Edge ......................................................................................................................................................13
Strategic Alliances ......................................................................................................................................................13
Exit Strategy ................................................................................................................................................................14
SWOT Analysis ...........................................................................................................................................................14
Company Overview .......................................................................15

Company Overview...................................................................................................................................................15
Management Team ....................................................................................................................................................15
Financial Plan.................................................................................17
Revenue Forecast .......................................................................................................................................................17
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the
understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
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Personnel Plan.............................................................................................................................................................19
Budget..........................................................................................................................................................................20
Loans and Investments...............................................................................................................................................22
Cash Flow Assumptions.............................................................................................................................................22
Starting Balances ........................................................................................................................................................23
Financial Statements ......................................................................24

Profit and Loss Statement...........................................................................................................................................24
Cash Flow Statement..................................................................................................................................................26
Balance Sheet..............................................................................................................................................................29
Appendix .......................................................................................31
Revenue Forecast .......................................................................................................................................................31
Personnel Plan.............................................................................................................................................................35
Budget..........................................................................................................................................................................37
Loans and Investments...............................................................................................................................................40
Profit and Loss Statement...........................................................................................................................................42
Balance Sheet..............................................................................................................................................................49
Cash Flow Statement..................................................................................................................................................56
Executive Summary
What We Sell
Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close second,
and sport/touring/racing road bikes a distant third. We also sell some used bikes which we take in on
trade as a service to our customers who are
buying new bikes.
Accessories. We offer a wide variety of
accessories. Locks, computer speedometers,
fenders, cargo racks, comfortable seats,
headlights, helmets, water bottles, panniers/back
packs/messenger bags, child seats and trailers,
bike storage racks, and auto roof rack systems
all fall in this category.
Clothing. We rotate our clothing based on the
season. For example, in Autumn, we stock jackets and Gore-Tex. In Winter, we offer helmet covers and
liners, insulated jerseys and pants, gloves, and shoe covers. In the Spring, we start displaying summer
jerseys, and racing shorts
Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle.
Generally, parts are installed during service and are an additional charge beyond the service fees.
Financial Summary
Financial Summary Description
This financial plan was developed based upon previous years' data for the existing store, tracking trends in
revenues and expenses. A five-month track of sales, accounts receivables and payables, and inventory
from a year-end benchmark was made. The current owner, Han Delbar, has sold the business to Hubert
Wheeler for $140,000. The seller, buyer, and the accountant worked together on the plan to balance
optimism with reality. An attorney was consulted on specifics of the sale contract.
Sales for the first year of new ownership are projected above $500,000, with a gross margin of almost 65%.
Profitability is expected at the mid-way point of the fiscal year, in March.
Revenue
Who Are We
Opportunity
Problem
Solution
Competition
Why Us?
Expectations
Financial Highlights by Year
Financing Needed
We plan on bootstrapping the business to start, but may consider loans for future expansion.
Who We Sell To
The primary market for Garrett's Bike Shop is the university student population, which normally has a
turnover/growth of approximately 25% each year. The secondary market is the university faculty and staff,
and the tertiary market is the greater Metroburg community.
Products and Services

Products and Services
Retail Sales
1.
Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close
second, and sport/touring/racing road bikes a distant third. We also sell some used bikes which we
take in on trade as a service to our customers who are buying new bikes.
2.
Accessories. We offer a wide variety of accessories. Locks, computer speedometers,

fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, panniers/back
packs/messenger bags, child seats and trailers, bike storage racks, and auto roof rack systems all
fall in this category. It is not possible to carry every possible accessory, so we try to carefully
chose those which will be most useful or desired by our target markets. When we receive special
requests for a new item, we'll often order several to test the local demand, and if adequate, will add
it to our regular stock.
3.
Clothing. Clothing appeals to all cyclists, whether it is a logo emblazoned T-shirt or a piece of
waterproof rainwear. At Garrett's Bike Shop, we rotate our clothing based on the season. Just
before the autumn rains we stock jackets and Gore-Tex. Come winter we offer helmet covers and
liners, insulated jerseys and pants, gloves, and shoe covers. And when spring arrives and the first
crocus appears through the melting snow, we start displaying summer jerseys, and racing shorts.
4.
Parts. Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle.
Generally, parts are installed during service [see below] and are an additional charge beyond the
service fees. Some, like cranksets, pedals, tires, derailleurs or brakes, are both integral parts and
upgrade accessories. Others, such as headsets, bottom brackets, spokes, chains, cables, and
cable housings are strictly maintenance, though some will be sold to cyclists who prefer to work on
their bikes themselves.
Service
Garrett's Bike Shop is a full-service specialized

bicycle shop. Our service offering includes, but is not
limited to:
Free 30-day/100-mile tune up with every new bike sold.
Quick repairs for flat tires, broken chains, brake cables, etc.
Scheduled tune-ups, replacement of all bearing surfaces, repacking of lubricants, and adjustments
of derailleurs and brake systems.
Installation of all accessories.
Authorized warranty repairs on the bikes.
Custom wheel building.
Frameset repairs by outsourcing to Via Porco custom frame builders.
Customer Validation Results

Competitors
Market Problem: No full-service bike shop focused on servicing the university market.
Setting aside the discount department stores, Garrett's Bike Shop has the following direct competitors.
One local multi-sport store at the local megamall
One statewide chain of bicycle shops which started out as Schwinn-only shops, but has had to take
on other brands and products.
One used bike store that has made a fine business reputation for itself, dealing strictly in used
bikes.
Three local, including the oldest shop in town.
One local multi-location chain, that has specialized in opening shops in small local malls in areas of
new housing development.
Several garage mechanics offering service only.
None of these competitors is within two miles of the university, and so, for the present, we have first access
to our chosen market segments. One of the local shops has chosen to target the burgeoning young road
racer segment, another is focusing on recumbents and folding travel cycles.
The two strongest competitors are the Oldest Shop in Town which carries the cache of being the most
stable, and most well known -- a Metroburg institution. The Mountain Bike Specialist targets the same
athletic, young, performance and image conscious rider that we target in the university student population.
These cyclists are particular about their bike and will go where the name brand they want is sold, or will try
every bike and then buy the one that fits best, regardless of store loyalty.
Target Market
Market Overview
The predominant market segment for Garrett's Bike Shop is the university student population. We also
cater to the university staff, local business employees, and, along with every other bicycle shop in town, the
greater Metroburg population.
In part the local market is driven by the lack of parking. Bicycle transportation is more economical, as well
as time and space efficient in the university neighborhood. Part of the market is price constrained and
another part is hooked on the latest fad, be it frame style, number of gears, or portrayed image. As long as
new students arrive each year, our market segment growth is assured
Key Customers
The university students are our main target market.
1.
They are mostly undergraduates, so there is a 25% annual turnover.
2.
The lack of parking in the university area and the general ease of bike mobility throughout
Metroburg motivates them to use bicycles as inexpensive transport. Athletic pursuits draw them,
and the nearby areas for use of mountain and trail bikes provides a great place to ride.
3.
There is a new enthusiasm for retro Cruiser bikes, and higher tech cruiser-style bikes with
multiple gears, good brakes, etc. among the college age population.
4.
Also, main market for racks, locks, throughout, pannier/bags, fenders, rainwear, etc.
5.
They want convenience for sales and service.
University employees are another prime market segment.

1.
Small growth and turnover, but on the whole, the group is pretty stable.
2.
Are willing to commute by bicycle to work.
3.
They want a stable, comfortable bike and a full range of accessories.
4.
When their bikes need service and maintenance, local drop off/pickup convenience is important.
5.
They have families who ride bicycles also, and will patronize a shop that gives personal service.
Greater Metroburg population.

This segment has a choice of going to any bike shop in the area, and will probably choose a shop located
closer to their home. They are not the main target market segment of Garrett's Bike Shop, and we market to
them casually, only as a collateral effect to our university-oriented efforts.
Market Growth
The bulk of Garrett's Bike Shop's market growth is the regular matriculation of students from the State
University in Metroburg. While the overall market numbers change in small increments, usually less than
10%, the market has a turnover of 22-26% yearly. In a longer time frame the number of students and the
number of university employees grows and shrinks with economic changes, and with population
demographics.
For the next three years we foresee a steady growth in the overall university population as well as
continued growth of Metroburg as a desirable place to live.
Market Needs
Our market niche has several needs which we strive to meet:
Quality bikes at several price points.
Various styles and sizes of bikes, leaning heavily toward the styles most popular with the student
population.
Range of accessories most practical in the local setting, such as locks, fenders, lights, tires, seats,
rainwear, etc.
Plenty of replacement components and service parts.
Friendly personal relationships between cyclists and shop staff.
Prompt and convenient service from on-the-spot flat tire fix, to drop in repairs, to scheduled major
maintenance, where the rider can drop their bike off, head to class or work, and be assured that
their bike will be ready for the ride home.
Market Trends
Trends in the bicycle industry usually last for a time. Some of them have been:
1960s - Big rush on 10 speeds.
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1970s - Touring bikes became popular.
1980s and 1990s - Huge growth of mountain bikes
1990s - The rumored but exaggerated death of "road bikes" and the unfulfilled prophesy of a boom
in the tandem market.
2000s - Popularity of retro 'cruisers.'
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Strategy and Implementation

Marketing Plan
Overview
Our marketing strategy seeks to optimize our advantage of prime location. We want the university
population to see us as their bike shop, even our name says so, Garrett's Bike Shop. We want them to see
us as part of their daily experience, and a shop they can depend on for quick repair and maintenance
service.
Positioning
We are Garrett's Bike Shop, and we are passionate about bicycles.
Pricing
Retail
Pricing of bicycles is very tight with a markup of between 30% and 40% depending upon the brand
and model. Many people believe that bicycles are priced like automobiles and are open for negotiation,
and make almost insulting offers. The shops have little leeway here.
Parts and accessories are generally keystone priced. Some small items cost more in handling and sales
than they do to buy from suppliers. These can be double and triple keystoned, because customers won't
buy them if they don't have a minimum perceived value. On the plus side, these are great "throw-in" items
used to close the sale of a bike. When new technology arrives in bicycles, and if the supply is limited,
almost any price can be demanded. This was the case in the mid-1990s when RockShox introduced
suspension forks for mountain bikes. The bike nobs would pay whatever was asked just to get those
forks. Of course, in this type of situation the price, both wholesale and retail, lowers.
Other accessories, such as step-in pedals, pannier racks, helmets, or headlights are sometimes heavily
marketed by the manufacturers. While this drives demand and brings people into the shop to get these
items, the suggested manufacturer's retail price may limit markup.
The markup on clothes, shoes, jackets, gloves can vary from keystone to triple keystone, depending
upon product, manufacturer, country of origin, and customer perception of value. Pearl Izumi and Burley
Design rainwear can demand premium prices as top-of-the-line garments, but many budget-conscious
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students can only afford a $35 nylon windbreaker. It has been and always will be a demanding job for us
to adequately stock garments at the various price points.
Service
We try to maintain a basic "Hourly shop rate" at $45/hour. Standard repairs are then priced based upon an
average time for completion. Some repairs, such as a flat tire, are limited by customer perception of
difficulty. Examples:
Flat Tire -- $7.50
Install Fenders -- $10.00
Brake Adjustment -- $25.00
Tune-up -- $65.00
Overhaul -- $100.00
All parts used in repairs are priced at keystone, and added to the labor service charge.
With several other bicycle shops in the city, there are some price constraints based on competition.
Coupons and specials can balance price ceilings by drawing in customers.
Promotion
Our marketing programs are locally focused, where we can effect our main target market.
Back to school specials, at the beginning of each term, including perhaps a free Kryptonite lock with a new
bike purchase. We will try to have a special purchase of an economy value bike for each term.
Spring special. This coincides with the beginning of spring term, but we will direct some of our advertising
at the wider population as people hang up their skis and tune up their bikes.
Coupons. Once every other month we will run a coupon for a service special in the university newspaper,
the Daily Hyperbole. We also run this coupon as a banner ad in the Daily Hyperbole Online.
Website. Our content site will also serve as a marketing medium. We offer downloadable maps of the city
bike routes, maps of rides outside the city area, give information about the store, and announce sales. We
believe that cyclists will regularly access our site for the valuable information we will provide, and this will
reinforce their of awareness of Garrett's Bike Shop, and we will become their bike shop of choice.
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Print advertising. In addition to our coupons, we will keep a small 3 column inch ad appearing on a
recurring schedule in the Daily Hyperbole. To boost citywide awareness of our sales specials we will also
run slightly larger ads in the Metroburg Bombast-Obfuscator during the weekends prior to the sale.
Competitive Edge
The foremost competitive advantage of Garrett's Bike Shop is our university location. The university is over
100 years old and as it has grown, Metroburg has grown around it. Parking is almost nonexistent, with all
campus parking permit or meter controlled, and local streets filled to capacity with the vehicles of
residents. Bicycles are an obvious and popular transportation solution.
Our location, in the first block off campus in a commercial area featuring the university bookstore, a private
bookstore, bank, cafes, coffee shops and popular watering holes is ideal. We get constant, daily visual
exposure. Students and staff throng the sidewalk outside our door, and we reap the benefits. Our nearest
competitor is almost a mile away. For the student customer, on foot, in a hurry, Garrett's Bike Shop is the
immediate solution to their needs.
After that first parking ticket, we are the first bike shop the new pedestrian sees. We are conveniently
located when a cyclist gets a flat tire on the way to class. The first time a rider gets to class with a wet back
they come in at lunch for a set of fenders and a rain jacket.
The negotiations of the past two years also brings the advantage of continued financial agreements with
major suppliers. This is an advantage over a start-up bicycle shop, but, is more a leveling of the bike path
when compared to other established shop in Metroburg. Traditionally a start-up store will be placed on a
Cash On Delivery (COD) status by bicycle manufacturers and parts/accessories suppliers. The COD status
stays in effect until the new shop demonstrates its ability to manage its orders and cash flow. This also
means the new shop must have more funding to be able to write checks on a moments notice, for large
amounts.
Garrett's Bike Shop will be continuing an established system of dating programs, ordering, delivery, and
invoicing/accounts payable, stabilizing our funding needs and monthly cash flow.
Strategic Alliances
Bicycle manufacturers - continuation of dating programs and financial agreements.
Accessory suppliers - continuation of financial agreements.
Metroburg Parks Dept. - we sponsor printed map of city bike paths to publish on our website.
University Security Office - maintenance, supply service contract for cycle security.
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HooDaThunkIt - website design and maintenance, search engine placement.
Exit Strategy
The principal owners of Mirabile Dictu Advertising, founders McKenzie Bossard and Fernando Hearndon,
believe in their business model, and in their experience-based view of the future. They foresee the
business growing steadily for many years, and plan to be active participants in the business. By the end of
year six the original principal investor will have been repaid several times over.
At that time, they envision several of their employees becoming full partners with concomitant investment.
If our original investor wishes to exit the company, this will be the time.
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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Company Overview
Company Overview
Garrett's Bike Shop is a subchapter S corporation, and is currently owned by Han Delbar. Hubert
Wheeler, current assistant manager of Garrett's Bike Shop, is purchasing Garrett's Bike Shop from Delbar,
acquiring existing inventory, and assuming outstanding accounts payable and dating program debts to
suppliers, location lease, customer base and information, and Garrett's Bike Shop's business name and
goodwill. The business will continue to be a subchapter S corporation. Exchange of ownership will occur
on July 1st.
To establish an accurate accounting of existing inventory and outstanding debts, the prior year's closing
inventory and year end financial statement as reviewed by the business' CPA were used as
benchmarks. The sales, orders placed, deliveries received, and accounts payable payments made have
been tracked each month, and a trial balance of these will be run June 15 to establish the final purchase
price for inventory on hand, and the amount of Accounts Payable assumed. The figures presented here are
conservative, realistic estimates used for planning purposes.
Management Team
The current assistant manager, Hubert Wheeler, is buying Garrett's Bike Shop, and will manage the
business. He has a B.S. degree in Economics and an M.A. in Comparative Literature. His passion however
has always been cycling. He originally worked at his local bike shop when he was in college. After several
years trying to find suitable work in his degree field, he gave up chasing the chimera of these fields and
decided to work with something substantial, and returned to his youthful enjoyment of bicycles.
He attended two of the major bicycle mechanic training programs, at New England Bicycle Academy
and the United Bicycle Institute. These courses covered mechanical service and maintenance, frame
building and repair, wheel building, and shop organization, sales, and management. He has 12 years of
progressively responsible experience in bicycle shops with the last five at Garrett's Bike Shop.
One of the other full-time employees, Valerie Pede has expressed interest in learning more about the bike
industry and she will be promoted to be the new assistant manager. Val has been with us for three years.
She graduated from State University at Metroburg with tandem B.S. degrees in Exercise Physiology and
Recreation Management. She loves to cycle, and has kept her contacts at the university active. Her
knowledge and expertise draws many women bicyclists to our store where they know they will get the
care and attention which is usually missing from traditionally male staffed shops.
The current owner, Han Delbar will be available as a resource.

Additional resources are:
Order Out of Chaos, our full-cycle bookkeeping service.
Continental Shelf Bank.
Newt Ria, a partner at Weasel, Stoat, Muskrat who advised on the sale/purchase arrangements.
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Financial Plan
Revenue Forecast
Revenue by Month
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Revenue Forecast Table

FY2016
FY2017
FY2018
$200,697
$250,000
$275,000
$68,000
$78,200
$89,930
$132,400
$172,500
$198,375
$1,200
$1,380
$1,587
$176,362
$190,900
$219,535
$578,659
$692,980
$784,427
New Bikes
$74,258
$92,500
$101,750
Repair and Service
$44,091
$47,725
$54,884
$180
$207
$238
Accessories and Parts
$66,200
$86,250
$99,188
Clothing
$23,800
$27,370
$31,476
Total Direct Cost
$208,529
$254,052
$287,536
Gross Margin
$370,130
$438,928
$496,891
64%
63%
63%
Revenue
New Bikes
Clothing
University Patrol Service Contract
Repair and Service
Total Revenue
Direct Cost
Gross Margin %
About the Revenue Forecast

Sales vary season to season and with the academic school year. Surprisingly, summer is the slowest
season because there are fewer students in town. Business picks up in August with the return of the
students and staff, and flourishes in September. Accessories and rainwear sales increase in the autumn and
early winter. Repairs and maintenance are steady. Holiday sales are brisk, though generally leaning again
to accessories, parts, rainwear, gloves, helmets, headlights, etc. Winter sales are moderate, and then pick
up in springtime as people put away their skies and look forward to local outdoor activities, longer daylight
hours, and drier weather.
We have three large sales promotions each year.
1.
Back to school in August/September. This is our biggest sale of the year. New bicycles, locks,
helmets, racks, fenders, backpacks. We always search for a special purchase of good quality, but
value priced bikes for this sale such as year end models, slow sellers, new line looks to break into
the market. These bikes will almost always sell out to students seeking great values.
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2.
Year-end holidays. This also overlaps the beginning of Winter term. The retail market demands
some participation in this annual buying frenzy, yet, this sale produces lower revenue than our
other two events. We sell fewer bikes, and more accessories and clothing.
3.
Spring. This coincides with both the return of nice weather, and beginning of Spring term. We
feature new bicycles, and repair/maintenance/tune-up specials. It is important to us to have a good
selection on hand at this time. When people decide they want that new bike, they want it now. If we
don't have the bike then, and make the sale immediately, many riders will decide that they really
can get another season out of their old bike, and will spend their discretionary income on some
other purchase.
Additionally, we have some special buys available for June graduation.

We get some small monthly revenue from these sources:
Sale of used bicycles taken in on trade.
Repair classes taught at the University Outdoor Center, once a term.
Monthly service contract for repairs and parts with the University Security Office.
Personnel Plan
Personnel Table
FY2016
FY2017
FY2018
Part-time Employees
$50,000
$50,000
$50,000
Valerie Pede
$32,000
$32,640
$33,293
Dee Ray
$23,400
$24,570
$25,799
Jean-Baptiste Kape
$19,800
$19,800
$19,800
$125,200
$127,010
$128,892
Total
About the Personnel Plan

The staff will consist of Hubert Wheeler, the new owner, Valerie Pede, and two other full-time employees
Dee Ray, and Jean-Baptiste Kape.
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To meet the need for additional help during the year, Garrett's Bike Shop hires two to four part-time
employees from the university population. We look for people who are enthusiastic about cycling, and who
have a mechanical aptitude. Some of these folks have worked for us throughout their entire college
sojourn. Their hours vary depending on the store's needs and their class schedules.
Budget
Budget Table
FY2016
FY2017
FY2018
$125,200
$127,010
$128,892
Employee Related Expenses
$31,300
$31,753
$32,223
Advertising
$11,573
$13,860
$15,689
Insurance
$4,200
$4,200
$4,200
Leased Equipment
$1,800
$1,800
$1,800
$56,400
$56,400
$56,400
$3,600
$3,600
$3,600
Office Expenses
$28,933
$34,649
$39,221
Expense from Other Current Assets
$10,000
$273,272
$282,025
Operating Expenses
Salary
Rent
Utilities
Total Operating Expenses
$273,006
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Expenses by Month
About the Budget

Our salary totals, employee benefits and monthly expense projections are included in the Budget. A rent
deposit was made to the landlord as a security during the transfer of the business to the new owner, in
order to keep the current lease agreement. If, at the end of the first year, the business is still solvent, the
deposit will be applied to the twelfth month's rent.
Startup Costs
Our estimated starting expenses total $13,300. They include, legal and accounting costs to transfer
ownership of the business, stationery, etc., promotional materials, insurance, and the down payment
toward the purchase of the business.
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Loans and Investments

Loans and Investments Table
FY2016
Loan
Loan at 7% interest for 60 mos.
Total Amount Received
FY2017
FY2018
$100,000
$100,000
Sources of Funds
The current owner, Han Delbar, has sold the business to Hubert Wheeler for $140,000. The value of the
existing company, its reputation, assumption of the business name, existing client base, etc. is recognized
as part of the purchase. It appears as a start-up expense in the following table as Down Payment. The
balance appears as a long-term liability.
Wheeler is investing some of his own money, partially a home equity loan, in the company. An additional
amount is being invested, as short-term interest free loans, by family members. This plan calls for these
loans to be repaid in the first year.
Cash Flow Assumptions

Cash Flow Assumptions
Cash Inflow
% of Sales on Credit
98%
Avg Collection Period (Days)
15
Cash Outflow
% of Purchases on Credit
50%
Avg Payment Delay (Days)
45
Inventory
Months to Keep on Hand
Minimum Inventory Purchase
2
$3,000
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About the Cash Flow Assumptions

We have accounts payable set at 45 days. We also keep approximately one month's worth of inventory on
hand, with a minimum purchase of $1,000, on average. We had a starting inventory balance for this plan at
$17,000 from the previous owner, which carried forward with the business transfer.
We do not sell on credit.
Starting Balances
Assets
Cash
Accounts Receivable
Inventory
Long-Term Assets
$10,000
$7,500
$61,500
Accumulated Depreciation
Liabilities
Accounts Payable
$27,800
Corporate Taxes Payable

Sales Taxes Payable
Short-Term Debt
Long-Term Debt
Capital
Paid-In Capital
$50,700
Retained Earnings
$500
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Financial Statements
Profit and Loss Statement
FY2016
FY2017
FY2018
Revenue
$578,659
$692,980
$784,427
Direct Costs
$208,529
$254,052
$287,536
Gross Margin
$370,130
$438,928
$496,891
64%
63%
63%
$125,200
$127,010
$128,892
$31,300
$31,753
$32,223
Advertising
$11,573
$13,860
$15,689
Insurance
$4,200
$4,200
$4,200
Leased Equipment
$1,800
$1,800
$1,800
$56,400
$56,400
$56,400
$3,600
$3,600
$3,600
Office Expenses
$28,933
$34,649
$39,221
$10,000
$273,006
$273,272
$282,025
$97,124
$165,656
$214,866
$5,960
$5,308
$3,974
Depreciation and Amortization
$20,931
$23,207
$23,206
Income Taxes
$10,534
$20,571
$28,153
$518,960
$576,410
$624,894
$59,699
$116,570
$159,533
10%
17%
20%
Gross Margin %
Operating Expenses
Salary
Rent
Utilities

Operating Income
Interest Incurred
Total Expenses
Net Profit
Net Profit / Sales
25
Gross Margin by Year
Net Profit (or Loss) by Year
About the Profit and Loss Statement

In negotiating the smooth transition in ownership, the landlord agreed to continue the current lease
unchanged. As surety, one month's rent was required as a deposit at the time of sale. This is shown in the
26
starting expenses. Further, the landlord agreed that if, after 11 months operation the new company was
solvent and current in lease payments, that the deposit could be applied to the twelfth month's rent.
The mid-summer months of July and August are slow months when a large part of the university population
is gone on summer break. The mid-winter months are traditionally loss months. The weather is the most
inclement and discretionary income is at its lowest after the holiday binges. However, we try to keep our
entire staff on board to work on our own inventory, store refurbishing, and staff training.
Cash Flow Statement

Cash Flow Statement
FY2016
FY2017
FY2018
Net Profit
$59,699
$116,570
$159,533
$30,931
$23,207
$23,206
Change in Accounts Receivable
($14,975)
($4,026)
($3,798)
Change in Inventory
($34,842)
($5,582)
$0
Change in Accounts Payable
($5,184)
$2,492
$386
Change in Income Tax Payable
$10,534
$10,037
$7,582
$2,961
$1,414
$438
$49,124
$144,112
$187,347
Net Cash Flow from Operations
Change in Sales Tax Payable

Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
($81,200)
Investments Received
Change in Long-Term Debt
$65,728
($19,786)
($21,217)
Change in Short-Term Debt
$18,452
$1,334
$1,431
$2,980
($18,452)
($19,786)
($2)
$52,102
$177,756
Net Change in Cash
$52,104
$125,660
$167,561
Cash at End of Period
$52,102
$177,762
$345,317
Dividends & Distributions

Net Cash Flow from Investing &
Financing
Cash at Beginning of Period
27
Cash Flow by Month
Cash Flow by Year
About the Cash Flow Statement

The cash flow reflects the seasonality of bicycle sales and the varying payment programs. At times, the
business is inventory heavy, stocking up for the beginning of school rush, or specific sales. At other times,
28
there is negative cash flow as long-term accounts payable, net 90, net 60 payments coincide with regular
net 30 invoices.
29
Balance Sheet
Balance Sheet
As of Period's End
Cash
Accounts Receivable
Inventory
Starting Balances
FY2016
FY2017
FY2018
$0
$52,102
$177,762
$345,317
$10,000
$24,974
$29,002
$32,804
$7,500
$42,342
$47,924
$47,924
$0
$0
$0
Other Current Assets

Total Current
Assets
$17,500
$119,418
$254,688
$426,045
Long-Term Assets
$61,500
$132,700
$132,700
$132,700
($20,931)
($44,138)
($67,344)
Accumulated
Depreciation
Total Long-Term
Assets
$61,500
$111,769
$88,562
$65,356
Total Assets
$79,000
$231,187
$343,250
$491,401
Accounts Payable
$27,800
$22,618
$25,114
$25,501
$10,534
$20,571
$28,153
$2,961
$4,375
$4,813
$18,452
$19,786
$21,217
$54,565
$69,846
$79,684
$65,728
$45,942
$24,725
Income Taxes
Payable
Sales Taxes Payable
Short-Term Debt
Prepaid Revenue
Total Current
Liabilities
$27,800
Long-Term Debt
Total Liabilities
$27,800
$120,293
$115,788
$104,409
Paid-in Capital
$50,700
$50,700
$50,700
$50,700
$500
$500
$60,194
$176,762
$59,694
$116,568
$159,530
Retained Earnings
Earnings
Total Owner's
Equity
$51,200
$110,894
$227,462
$386,992
Total Liabilities &

Equity
$79,000
$231,187
$343,250
$491,401
30
About the Balance Sheet

Our goal is to repay the loans from our family within the first year, and we project paying Han Delbar his
entire purchase price within five years. Other balance sheet information is shown in the table.
31
Appendix
Revenue Forecast
Revenue Forecast Table (With Monthly Detail)
FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
New Bikes
$1,934
$14,000
$23,983
$18,000
$15,360
$20,000
$20,420
$23,700
$21,000
$18,700
$11,700
$11,900
Clothing
$3,500
$3,500
$4,500
$6,500
$10,500
$7,500
$4,500
$3,500
$4,500
$6,500
$7,500
$5,500
$11,000
$12,500
$14,000
$11,000
$10,000
$15,000
$9,500
$8,000
$8,000
$9,400
$11,000
$13,000
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$11,000
$11,000
$13,000
$14,000
$12,000
$11,000
$12,000
$15,982
$18,358
$19,260
$19,118
$19,644
$27,534
$41,100
$55,583
$49,600
$47,960
$53,600
$46,520
$51,282
$51,958
$53,960
$49,418
$50,144
New Bikes
$716
$5,180
$8,874
$6,660
$5,683
$7,400
$7,555
$8,769
$7,770
$6,919
$4,329
$4,403
Repair and
Service
$2,750
$2,750
$3,250
$3,500
$3,000
$2,750
$3,000
$3,996
$4,590
$4,815
$4,780
$4,911
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
$15
Accessories
and Parts
$5,500
$6,250
$7,000
$5,500
$5,000
$7,500
$4,750
$4,000
$4,000
$4,700
$5,500
$6,500
Clothing
$1,225
$1,225
$1,575
$2,275
$3,675
$2,625
$1,575
$1,225
$1,575
$2,275
$2,625
$1,925
$10,206
$15,420
$20,714
$17,950
$17,373
$20,290
$16,895
$18,005
$17,950
$18,724
$17,249
$17,754
$17,328
$25,680
$34,869
$31,650
$30,587
$33,310
$29,625
$33,277
$34,008
$35,236
$32,169
$32,390
63%
62%
63%
64%
64%
62%
64%
65%
65%
65%
65%
65%
Revenue
Accessories
and Parts
University
Patrol Service
Contract
Repair and
Service
Total
Revenue
Direct Cost
University
Patrol Service
Contract
Total Direct
Cost
Gross Margin
Gross
Margin %
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with
third parties without the express written consent of the plan author.
32
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,833
$20,834
$20,834
$20,834
$20,834
$6,516
$6,516
$6,516
$6,516
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$6,517
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$14,375
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$15,908
$15,908
$15,908
$15,908
$15,908
$15,908
$15,908
$15,908
$15,909
$15,909
$15,909
$15,909
$57,747
$57,747
$57,747
$57,747
$57,748
$57,748
$57,748
$57,748
$57,750
$57,750
$57,750
$57,750
New Bikes
$7,708
$7,708
$7,708
$7,708
$7,708
$7,708
$7,708
$7,708
$7,709
$7,709
$7,709
$7,709
Repair and
Service
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$3,977
$17
$17
$17
$17
$17
$17
$17
$17
$17
$17
$17
$17
Accessories
and Parts
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
$7,188
Clothing
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$2,281
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,172
$21,172
$21,172
$21,172
$36,576
$36,576
$36,576
$36,576
$36,577
$36,577
$36,577
$36,577
$36,578
$36,578
$36,578
$36,578
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
Revenue
New Bikes
Clothing
Accessories
and Parts
University
Patrol Service
Contract
Repair and
Service
Total
Revenue
Direct Cost
University
Patrol Service
Contract
Total Direct
Cost
Gross Margin
Gross
Margin %
33
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$22,916
$22,916
$22,916
$22,916
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
$22,917
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,494
$7,495
$7,495
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,531
$16,532
$16,532
$16,532
$132
$132
$132
$132
$132
$132
$132
$132
$132
$133
$133
$133
$18,294
$18,294
$18,294
$18,294
$18,294
$18,295
$18,295
$18,295
$18,295
$18,295
$18,295
$18,295
$65,367
$65,367
$65,367
$65,367
$65,368
$65,369
$65,369
$65,369
$65,369
$65,371
$65,372
$65,372
New Bikes
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
$8,479
Repair and
Service
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$4,574
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
$20
Accessories
and Parts
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
$8,266
Clothing
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$2,623
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$41,405
$41,405
$41,405
$41,405
$41,406
$41,407
$41,407
$41,407
$41,407
$41,409
$41,410
$41,410
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
Revenue
New Bikes
Clothing
Accessories
and Parts
University
Patrol Service
Contract
Repair and
Service
Total
Revenue
Direct Cost
University
Patrol Service
Contract
Total Direct
Cost
Gross Margin
Gross
Margin %
34
FY2016
FY2017
FY2018
$200,697
$250,000
$275,000
$68,000
$78,200
$89,930
$132,400
$172,500
$198,375
Revenue
New Bikes
Clothing
$1,200
$1,380
$1,587
$176,362
$190,900
$219,535
$578,659
$692,980
$784,427
New Bikes
$74,258
$92,500
$101,750
Repair and Service
$44,091
$47,725
$54,884
$180
$207
$238
$66,200
$86,250
$99,188
Repair and Service
Total Revenue
Direct Cost

Clothing
Total Direct Cost

Gross Margin
Gross Margin %
$23,800
$27,370
$31,476
$208,529
$254,052
$287,536
$370,130
$438,928
$496,891
64%
63%
63%
35
Personnel Plan
Personnel Table (With Monthly Detail)
FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Part-time
Employees
$4,166
$4,166
$4,166
$4,166
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
Valerie Pede
$2,666
$2,666
$2,666
$2,666
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
$2,667
Dee Ray
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
$1,950
Jean-Baptiste
Kape
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$10,432
$10,432
$10,432
$10,432
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Part-time
Employees
$4,166
$4,166
$4,166
$4,166
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
Valerie Pede
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
$2,720
Dee Ray
$2,047
$2,047
$2,047
$2,047
$2,047
$2,047
$2,048
$2,048
$2,048
$2,048
$2,048
$2,048
Jean-Baptiste
Kape
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$10,583
$10,583
$10,583
$10,583
$10,584
$10,584
$10,585
$10,585
$10,585
$10,585
$10,585
$10,585
Total
FY2017
Total
36
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
Part-time
Employees
$4,166
$4,166
$4,166
$4,166
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
$4,167
Valerie Pede
$2,774
$2,774
$2,774
$2,774
$2,774
$2,774
$2,774
$2,775
$2,775
$2,775
$2,775
$2,775
Dee Ray
$2,149
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
$2,150
Jean-Baptiste
Kape
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$1,650
$10,739
$10,740
$10,740
$10,740
$10,741
$10,741
$10,741
$10,742
$10,742
$10,742
$10,742
$10,742
Total
FY2016
FY2017
FY2018
Part-time Employees
$50,000
$50,000
$50,000
Valerie Pede
$32,000
$32,640
$33,293
Dee Ray
$23,400
$24,570
$25,799
Jean-Baptiste Kape
$19,800
$19,800
$19,800
$125,200
$127,010
$128,892
Total
37
Budget
Budget Table (With Monthly Detail)
FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
$10,432
$10,432
$10,432
$10,432
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$2,608
$2,608
$2,608
$2,608
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
Advertising
$551
$822
$1,112
$992
$959
$1,072
$930
$1,026
$1,039
$1,079
$988
$1,003
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
Operating
Expenses
Salary
Employee
Related
Expenses
Rent
Utilities
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Office
Expenses
$1,377
$2,055
$2,779
$2,480
$2,398
$2,680
$2,326
$2,564
$2,598
$2,698
$2,471
$2,507
Expense from
Other Current
Assets
$1,667
$1,666
$1,667
$1,667
$1,666
$1,667
$22,135
$23,083
$24,098
$23,679
$23,566
$23,962
$21,799
$22,133
$22,180
$22,320
$22,002
$22,053
Total
Operating
Expenses
38
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Operating
Expenses
Salary
$10,583
$10,583
$10,583
$10,583
$10,584
$10,584
$10,585
$10,585
$10,585
$10,585
$10,585
$10,585
Employee
Related
Expenses
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
Advertising
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,888
$2,888
$2,888
$2,888
$22,771
$22,771
$22,771
$22,771
$22,772
$22,772
$22,773
$22,773
$22,774
$22,774
$22,774
$22,774
Rent
Utilities
Office
Expenses
Expense from
Other Current
Assets
Total
Operating
Expenses
39
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
Operating
Expenses
Salary
$10,739
$10,740
$10,740
$10,740
$10,741
$10,741
$10,741
$10,742
$10,742
$10,742
$10,742
$10,742
Employee
Related
Expenses
$2,685
$2,685
$2,685
$2,685
$2,685
$2,685
$2,685
$2,686
$2,686
$2,686
$2,686
$2,686
Advertising
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,269
$3,269
$3,269
$23,499
$23,500
$23,500
$23,500
$23,501
$23,501
$23,501
$23,503
$23,503
$23,504
$23,504
$23,504
Rent
Utilities
Office
Expenses
Expense from
Other Current
Assets
Total
Operating
Expenses
40
FY2016
FY2017
FY2018
Operating Expenses
Salary
$125,200
$127,010
$128,892
$31,300
$31,753
$32,223
Advertising
$11,573
$13,860
$15,689
Insurance
$4,200
$4,200
$4,200
Leased Equipment
$1,800
$1,800
$1,800
$56,400
$56,400
$56,400
$3,600
$3,600
$3,600
Office Expenses
$28,933
$34,649
$39,221
$10,000
$273,272
$282,025
Rent
Utilities
$273,006
Loans and Investments

Loans and Investments Table (With Monthly Detail)
FY2016
Loan
Loan at 7%
interest for 60
mos.
Total
Amount
Received
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
$100,000
$100,000
41
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
Loan
Loan at 7%
interest for 60
mos.
Total
Amount
Received
FY2018
Loan
Loan at 7%
interest for 60
mos.
Total
Amount
Received
FY2016
Loan
Loan at 7% interest for 60 mos.
Total Amount Received
FY2017
FY2018
$100,000
$100,000
42

Profit and Loss Statement (With Monthly Detail)
FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
Revenue
$27,534
$41,100
$55,583
$49,600
$47,960
$53,600
$46,520
$51,282
$51,958
$53,960
$49,418
$50,144
Direct Costs
$10,206
$15,420
$20,714
$17,950
$17,373
$20,290
$16,895
$18,005
$17,950
$18,724
$17,249
$17,754
$17,328
$25,680
$34,869
$31,650
$30,587
$33,310
$29,625
$33,277
$34,008
$35,236
$32,169
$32,390
63%
62%
63%
64%
64%
62%
64%
65%
65%
65%
65%
65%
$10,432
$10,432
$10,432
$10,432
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$10,434
$2,608
$2,608
$2,608
$2,608
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
$2,609
Advertising
$551
$822
$1,112
$992
$959
$1,072
$930
$1,026
$1,039
$1,079
$988
$1,003
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Office
Expenses
$1,377
$2,055
$2,779
$2,480
$2,398
$2,680
$2,326
$2,564
$2,598
$2,698
$2,471
$2,507
Expense from
Other Current
Assets
$1,667
$1,666
$1,667
$1,667
$1,666
$1,667
Total
Operating
Expenses
$22,135
$23,083
$24,098
$23,679
$23,566
$23,962
$21,799
$22,133
$22,180
$22,320
$22,002
$22,053
Operating
Income
($4,807)
$2,597
$10,771
$7,971
$7,021
$9,348
$7,826
$11,144
$11,828
$12,916
$10,167
$10,337
$583
$575
$567
$559
$550
$542
$534
$525
$517
$508
$500
Gross Margin
Gross
Margin %
Operating
Expenses
Salary
Employee
Related
Expenses
Rent
Utilities
Interest Incurred
43
Depreciation
and
Amortization
$1,025
$1,025
$1,775
$1,775
$1,914
$1,914
$1,914
$1,914
$1,913
$1,914
$1,914
$1,934
$0
$0
$537
$844
$682
$1,033
$805
$1,305
$1,408
$1,573
$1,162
$1,185
Total
Expenses
$33,366
$40,111
$47,699
$44,815
$44,094
$47,749
$41,955
$43,891
$43,976
$45,048
$42,835
$43,426
Net Profit
($5,832)
$989
$7,884
$4,785
$3,866
$5,851
$4,565
$7,391
$7,982
$8,912
$6,583
$6,718
(21%)
2%
14%
10%
8%
11%
10%
14%
15%
17%
13%
13%
Income Taxes
Net Profit /
Sales
44
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Revenue
$57,747
$57,747
$57,747
$57,747
$57,748
$57,748
$57,748
$57,748
$57,750
$57,750
$57,750
$57,750
Direct Costs
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,171
$21,172
$21,172
$21,172
$21,172
$36,576
$36,576
$36,576
$36,576
$36,577
$36,577
$36,577
$36,577
$36,578
$36,578
$36,578
$36,578
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
$10,583
$10,583
$10,583
$10,583
$10,584
$10,584
$10,585
$10,585
$10,585
$10,585
$10,585
$10,585
Employee
Related
Expenses
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
$2,646
Advertising
Gross Margin
Gross
Margin %
Operating
Expenses
Salary
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
$1,155
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,887
$2,888
$2,888
$2,888
$2,888
Total
Operating
Expenses
$22,771
$22,771
$22,771
$22,771
$22,772
$22,772
$22,773
$22,773
$22,774
$22,774
$22,774
$22,774
Operating
Income
$13,805
$13,805
$13,805
$13,805
$13,805
$13,805
$13,804
$13,804
$13,804
$13,804
$13,804
$13,804
Rent
Utilities
Office
Expenses
Expense from
Other Current
Assets
Interest Incurred
$491
$482
$474
$465
$456
$447
$438
$429
$420
$411
$402
$393
Depreciation
and
Amortization
$1,934
$1,934
$1,934
$1,934
$1,934
$1,933
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
Income Taxes
$1,707
$1,709
$1,709
$1,711
$1,712
$1,714
$1,715
$1,716
$1,717
$1,719
$1,721
$1,721
$48,074
$48,067
$48,059
$48,052
$48,045
$48,037
$48,031
$48,023
$48,017
$48,010
$48,003
$47,994
Total
Expenses
45
Net Profit
Net Profit /
Sales
$9,673
$9,680
$9,688
$9,695
$9,703
$9,711
$9,717
$9,725
$9,733
$9,740
$9,747
$9,756
17%
17%
17%
17%
17%
17%
17%
17%
17%
17%
17%
17%
46
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
Revenue
$65,367
$65,367
$65,367
$65,367
$65,368
$65,369
$65,369
$65,369
$65,369
$65,371
$65,372
$65,372
Direct Costs
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$23,962
$41,405
$41,405
$41,405
$41,405
$41,406
$41,407
$41,407
$41,407
$41,407
$41,409
$41,410
$41,410
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
63%
$10,739
$10,740
$10,740
$10,740
$10,741
$10,741
$10,741
$10,742
$10,742
$10,742
$10,742
$10,742
Employee
Related
Expenses
$2,685
$2,685
$2,685
$2,685
$2,685
$2,685
$2,685
$2,686
$2,686
$2,686
$2,686
$2,686
Advertising
Gross Margin
Gross
Margin %
Operating
Expenses
Salary
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
$1,307
Insurance
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
$350
Leased
Equipment
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$4,700
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,268
$3,269
$3,269
$3,269
Total
Operating
Expenses
$23,499
$23,500
$23,500
$23,500
$23,501
$23,501
$23,501
$23,503
$23,503
$23,504
$23,504
$23,504
Operating
Income
$17,906
$17,905
$17,905
$17,905
$17,905
$17,906
$17,906
$17,904
$17,904
$17,905
$17,906
$17,906
Rent
Utilities
Office
Expenses
Expense from
Other Current
Assets
Interest Incurred
$383
$374
$365
$355
$346
$336
$327
$317
$307
$298
$288
$278
Depreciation
and
Amortization
$1,934
$1,934
$1,933
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,933
Income Taxes
$2,338
$2,340
$2,341
$2,342
$2,344
$2,346
$2,346
$2,348
$2,350
$2,351
$2,352
$2,355
$52,116
$52,110
$52,101
$52,093
$52,087
$52,079
$52,070
$52,064
$52,056
$52,049
$52,040
$52,032
Total
Expenses
47
Net Profit
Net Profit /
Sales
$13,251
$13,257
$13,266
$13,274
$13,281
$13,290
$13,299
$13,305
$13,313
$13,322
$13,332
$13,340
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
48
FY2016
FY2017
FY2018
Revenue
$578,659
$692,980
$784,427
Direct Costs
$208,529
$254,052
$287,536
$370,130
$438,928
$496,891
64%
63%
63%
$125,200
$127,010
$128,892
$31,300
$31,753
$32,223
Advertising
$11,573
$13,860
$15,689
Insurance
$4,200
$4,200
$4,200
Leased Equipment
$1,800
$1,800
$1,800
$56,400
$56,400
$56,400
Gross Margin
Gross Margin %
Operating Expenses
Salary
Rent
Utilities
$3,600
$3,600
$3,600
Office Expenses
$28,933
$34,649
$39,221
$10,000
$273,006
$273,272
$282,025
$97,124
$165,656
$214,866
$5,960
$5,308
$3,974
$20,931
$23,207
$23,206
Income Taxes
$10,534
$20,571
$28,153
$518,960
$576,410
$624,894
$59,699
$116,570
$159,533
10%
17%
20%

Operating Income
Interest Incurred
Total Expenses
Net Profit
Net Profit / Sales
49
Balance Sheet
Balance Sheet (With Monthly Detail)
As of
Period's
End
Cash
Accounts
Receivable
Inventory
Starting
Balances
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
$0
$50,137
$45,406
$3,678
$11,958
($5,018)
$4,654
$10,695
$18,769
$30,112
$37,831
$47,091
$52,102
$10,000
$13,558
$20,619
$28,058
$24,920
$24,025
$26,948
$23,493
$25,938
$26,176
$27,078
$24,612
$24,974
$7,500
$36,134
$38,664
$35,323
$37,663
$37,185
$34,900
$35,955
$36,674
$35,973
$35,003
$38,925
$42,342
$8,333
$6,667
$5,000
$3,333
$1,667
$0
$0
$0
$0
$0
$0
$0
$17,500
$108,162
$111,356
$72,059
$77,874
$57,859
$66,502
$70,143
$81,381
$92,261
$99,912
$110,628
$119,418
$61,500
$61,500
$61,500
$106,500
$106,500
$131,500
$131,500
$131,500
$131,500
$131,500
$131,500
$131,500
$132,700
($1,025)
($2,050)
($3,825)
($5,600)
($7,514)
($9,428)
($11,342)
($13,256)
($15,169)
($17,083)
($18,997)
($20,931)
Other Current
Assets
Total
Current
Assets
Long-Term
Assets
Accumulated
Depreciation
Total LongTerm
Assets
$61,500
$60,475
$59,450
$102,675
$100,900
$123,986
$122,072
$120,158
$118,244
$116,331
$114,417
$112,503
$111,769
Total
Assets
$79,000
$168,637
$170,806
$174,734
$178,774
$181,845
$188,574
$190,301
$199,625
$208,592
$214,329
$223,131
$231,187
Accounts
Payable
$27,800
$23,134
$24,731
$19,964
$21,322
$20,191
$20,066
$20,166
$20,581
$20,143
$20,108
$21,818
$22,618
$0
$0
$537
$1,381
$2,063
$3,096
$3,901
$5,206
$6,614
$8,187
$9,349
$10,534
$135
$1,115
$2,794
$1,260
$2,335
$3,735
$1,430
$3,089
$4,559
$1,309
$2,128
$2,961
$17,309
$17,410
$17,511
$17,613
$17,716
$17,819
$17,923
$18,028
$18,133
$18,239
$18,345
$18,452
Income Taxes
Payable
Sales Taxes
Payable
Short-Term
Debt
Prepaid
Revenue
50
Total
Current
Liabilities
$27,800
$40,578
$43,256
$40,806
$41,576
$42,305
$44,716
$43,420
$46,904
$49,449
$47,843
$51,640
$54,565
$82,691
$81,193
$79,687
$78,172
$76,648
$75,115
$73,573
$72,022
$70,462
$68,893
$67,315
$65,728
$27,800
$123,269
$124,449
$120,493
$119,748
$118,953
$119,831
$116,993
$118,926
$119,911
$116,736
$118,955
$120,293
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
($5,832)
($4,843)
$3,041
$7,826
$11,692
$17,543
$22,108
$29,499
$37,481
$46,393
$52,976
$59,694
Long-Term
Debt
Total
Liabilities
Paid-in Capital
Retained
Earnings
Earnings
Total
Owner's
Equity
$51,200
$45,368
$46,357
$54,241
$59,026
$62,892
$68,743
$73,308
$80,699
$88,681
$97,593
$104,176
$110,894
Total
Liabilities &
Equity
$79,000
$168,637
$170,806
$174,734
$178,774
$181,845
$188,574
$190,301
$199,625
$208,592
$214,329
$223,131
$231,187
51
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Cash
$58,671
$72,087
$74,836
$83,744
$97,026
$110,309
$119,215
$132,495
$145,777
$154,685
$166,572
$177,762
Accounts
Receivable
$29,005
$29,004
$29,004
$29,003
$29,003
$29,003
$29,002
$29,002
$29,003
$29,002
$29,002
$29,002
Inventory
$42,342
$42,342
$42,342
$42,342
$42,342
$42,342
$42,343
$42,344
$42,344
$42,344
$45,134
$47,924
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$130,018
$143,433
$146,182
$155,089
$168,371
$181,654
$190,560
$203,841
$217,124
$226,031
$240,708
$254,688
Long-Term
Assets
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
Accumulated
Depreciation
($22,865)
($24,799)
($26,733)
($28,667)
($30,601)
($32,534)
($34,468)
($36,402)
($38,336)
($40,270)
($42,204)
($44,138)
Total LongTerm Assets
$109,835
$107,901
$105,967
$104,033
$102,099
$100,166
$98,232
$96,298
$94,364
$92,430
$90,496
$88,562
Total Assets
$239,853
$251,334
$252,149
$259,122
$270,470
$281,820
$288,792
$300,139
$311,488
$318,461
$331,204
$343,250
Accounts
Payable
$22,896
$23,028
$23,027
$23,026
$23,025
$23,024
$23,023
$23,022
$23,022
$23,022
$24,417
$25,114
Income Taxes
Payable
$12,241
$13,950
$5,125
$6,836
$8,548
$10,262
$11,977
$13,693
$15,410
$17,129
$18,850
$20,571
Sales Taxes
Payable
$1,458
$2,916
$4,375
$1,458
$2,916
$4,375
$1,458
$2,916
$4,375
$1,458
$2,916
$4,375
Short-Term
Debt
$18,560
$18,668
$18,777
$18,887
$18,997
$19,108
$19,219
$19,331
$19,444
$19,557
$19,671
$19,786
$55,155
$58,562
$51,304
$50,207
$53,486
$56,769
$55,677
$58,962
$62,251
$61,166
$65,854
$69,846
$64,131
$62,525
$60,910
$59,285
$57,651
$56,007
$54,354
$52,691
$51,018
$49,336
$47,644
$45,942
$119,286
$121,087
$112,214
$109,492
$111,137
$112,776
$110,031
$111,653
$113,269
$110,502
$113,498
$115,788
Paid-in Capital
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
Retained
Earnings
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
$60,194
Other Current
Assets
Total
Current
Assets
Prepaid
Revenue
Total
Current
Liabilities
Long-Term Debt
Total
Liabilities
52
Earnings
$9,673
$19,353
$29,041
$38,736
$48,439
$58,150
$67,867
$77,592
$87,325
$97,065
$106,812
$116,568
Total
Owner's
Equity
$120,567
$130,247
$139,935
$149,630
$159,333
$169,044
$178,761
$188,486
$198,219
$207,959
$217,706
$227,462
Total
Liabilities &
Equity
$239,853
$251,334
$252,149
$259,122
$270,470
$281,820
$288,792
$300,139
$311,488
$318,461
$331,204
$343,250
53
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$187,379
$205,040
$201,997
$214,713
$232,241
$249,771
$262,488
$280,015
$297,542
$310,257
$327,787
$345,317
Accounts
Receivable
$32,805
$32,805
$32,805
$32,805
$32,805
$32,805
$32,804
$32,804
$32,804
$32,805
$32,805
$32,804
Inventory
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$47,924
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$268,108
$285,769
$282,726
$295,442
$312,970
$330,500
$343,216
$360,743
$378,270
$390,986
$408,516
$426,045
Long-Term
Assets
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
$132,700
Accumulated
Depreciation
($46,072)
($48,006)
($49,939)
($51,873)
($53,807)
($55,741)
($57,675)
($59,609)
($61,543)
($63,477)
($65,411)
($67,344)
Total LongTerm Assets
$86,628
$84,694
$82,761
$80,827
$78,893
$76,959
$75,025
$73,091
$71,157
$69,223
$67,289
$65,356
Total Assets
$354,736
$370,463
$365,487
$376,269
$391,863
$407,459
$418,241
$433,834
$449,427
$460,209
$475,805
$491,401
Accounts
Payable
$25,379
$25,511
$25,510
$25,509
$25,508
$25,507
$25,506
$25,505
$25,504
$25,503
$25,502
$25,501
Income Taxes
Payable
$22,909
$25,249
$7,019
$9,361
$11,705
$14,051
$16,397
$18,745
$21,095
$23,446
$25,798
$28,153
Sales Taxes
Payable
$1,604
$3,208
$4,812
$1,604
$3,208
$4,813
$1,604
$3,208
$4,812
$1,604
$3,209
$4,813
Short-Term
Debt
$19,901
$20,017
$20,134
$20,251
$20,369
$20,488
$20,608
$20,728
$20,849
$20,971
$21,094
$21,217
$69,793
$73,985
$57,475
$56,725
$60,790
$64,859
$64,115
$68,186
$72,260
$71,524
$75,603
$79,684
$44,230
$42,508
$40,776
$39,034
$37,282
$35,519
$33,746
$31,963
$30,169
$28,365
$26,550
$24,725
$114,023
$116,493
$98,251
$95,759
$98,072
$100,378
$97,861
$100,149
$102,429
$99,889
$102,153
$104,409
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$50,700
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
$176,762
Cash
Other Current
Assets
Total
Current
Assets
Prepaid
Revenue
Total
Current
Liabilities
Long-Term Debt
Total
Liabilities
Paid-in Capital
Retained
Earnings
54
Earnings
$13,251
$26,508
$39,774
$53,048
$66,329
$79,619
$92,918
$106,223
$119,536
$132,858
$146,190
$159,530
Total
Owner's
Equity
$240,713
$253,970
$267,236
$280,510
$293,791
$307,081
$320,380
$333,685
$346,998
$360,320
$373,652
$386,992
Total
Liabilities &
Equity
$354,736
$370,463
$365,487
$376,269
$391,863
$407,459
$418,241
$433,834
$449,427
$460,209
$475,805
$491,401
55
As of Period's End
Starting Balances
FY2016
FY2017
FY2018
$0
$52,102
$177,762
$345,317
$10,000
$24,974
$29,002
$32,804
$7,500
$42,342
$47,924
$47,924
$0
$0
$0
$17,500
$119,418
$254,688
$426,045
$61,500
$132,700
$132,700
$132,700
($20,931)
($44,138)
($67,344)
Total Long-Term Assets
$61,500
$111,769
$88,562
$65,356
Total Assets
$79,000
$231,187
$343,250
$491,401
$27,800
$22,618
$25,114
$25,501
$10,534
$20,571
$28,153
$2,961
$4,375
$4,813
$18,452
$19,786
$21,217
$54,565
$69,846
$79,684
$65,728
$45,942
$24,725
$27,800
$120,293
$115,788
$104,409
$50,700
$50,700
$50,700
$50,700
$176,762
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets

Long-Term Assets
Accumulated Depreciation
Accounts Payable
Income Taxes Payable
Sales Taxes Payable
Short-Term Debt
Prepaid Revenue
Total Current Liabilities
$27,800
Long-Term Debt
Total Liabilities
Paid-in Capital
Retained Earnings
$500
Earnings
$500
$60,194
$59,694
$116,568
$159,530
Total Owner's Equity
$51,200
$110,894
$227,462
$386,992
Total Liabilities & Equity
$79,000
$231,187
$343,250
$491,401
56
Cash Flow Statement

Cash Flow Statement (With Monthly Detail)
FY2016
Oct '15
Nov '15
Dec '15
Jan '16
Feb '16
Mar '16
Apr '16
May '16
Jun '16
Jul '16
Aug '16
Sep '16
($5,832)
$989
$7,884
$4,785
$3,866
$5,851
$4,565
$7,391
$7,982
$8,912
$6,583
$6,718
$2,692
$2,691
$3,442
$3,442
$3,580
$3,581
$1,914
$1,914
$1,913
$1,914
$1,914
$1,934
Change in
Accounts
Receivable
($3,558)
($7,061)
($7,439)
$3,138
$895
($2,923)
$3,455
($2,445)
($238)
($902)
$2,466
($362)
Change in
Inventory
($28,634)
($2,530)
$3,341
($2,340)
$478
$2,285
($1,055)
($719)
$701
$970
($3,922)
($3,417)
Change in
Accounts
Payable
($4,666)
$1,597
($4,767)
$1,358
($1,131)
($125)
$100
$415
($438)
($35)
$1,710
$800
$0
$0
$537
$844
$682
$1,033
$805
$1,305
$1,408
$1,573
$1,162
$1,185
$135
$980
$1,679
($1,534)
$1,075
$1,400
($2,305)
$1,659
$1,470
($3,250)
$819
$833
($39,863)
($3,334)
$4,677
$9,693
$9,445
$11,102
$7,479
$9,520
$12,798
$9,182
$10,732
$7,691
Net Cash
Flow from
Operations
Net Profit
Depreciation
and
Amortization
Change in
Income Tax
Payable
Change in
Sales Tax
Payable
Change in
Prepaid
Revenue
Net Cash
Flow from
Operations
Investing &
Financing
Assets
Purchased or
Sold
($10,000)
($45,000)
($25,000)
($1,200)
Investments
Received
57
Change in
Long-Term
Debt
$82,691
($1,498)
($1,506)
($1,515)
($1,524)
($1,533)
($1,542)
($1,551)
($1,560)
($1,569)
($1,578)
($1,587)
Change in
Short-Term
Debt
$17,309
$101
$101
$102
$103
$103
$104
$105
$105
$106
$106
$107
$90,000
($1,397)
($46,405)
($1,413)
($26,421)
($1,430)
($1,438)
($1,446)
($1,455)
($1,463)
($1,472)
($2,680)
$0
$50,137
$45,406
$3,678
$11,958
($5,018)
$4,654
$10,695
$18,769
$30,112
$37,831
$47,091
$50,137
($4,731)
($41,728)
$8,280
($16,976)
$9,672
$6,041
$8,074
$11,343
$7,719
$9,260
$5,011
$50,137
$45,406
$3,678
$11,958
($5,018)
$4,654
$10,695
$18,769
$30,112
$37,831
$47,091
$52,102
Dividends &
Distributions
Net Cash
Flow from
Investing &
Financing
Cash at
Beginning of
Period
Net Change in
Cash
Cash at End
of Period
58
FY2017
Oct '16
Nov '16
Dec '16
Jan '17
Feb '17
Mar '17
Apr '17
May '17
Jun '17
Jul '17
Aug '17
Sep '17
Net Profit
$9,673
$9,680
$9,688
$9,695
$9,703
$9,711
$9,717
$9,725
$9,733
$9,740
$9,747
$9,756
Depreciation
and
Amortization
$1,934
$1,934
$1,934
$1,934
$1,934
$1,933
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
($4,031)
$1
$0
$1
$0
$0
$1
$0
($1)
$1
$0
$0
Change in
Inventory
$0
$0
$0
$0
$0
$0
($1)
($1)
$0
$0
($2,790)
($2,790)
Change in
Accounts
Payable
$278
$132
($1)
($1)
($1)
($1)
($1)
($1)
$0
$0
$1,395
$697
$1,707
$1,709
($8,825)
$1,711
$1,712
$1,714
$1,715
$1,716
$1,717
$1,719
$1,721
$1,721
($1,503)
$1,458
$1,459
($2,917)
$1,458
$1,459
($2,917)
$1,458
$1,459
($2,917)
$1,458
$1,459
$8,058
$14,914
$4,255
$10,423
$14,806
$14,816
$10,448
$14,831
$14,842
$10,477
$13,465
$12,777
Change in
Long-Term
Debt
($1,597)
($1,606)
($1,615)
($1,625)
($1,634)
($1,644)
($1,653)
($1,663)
($1,673)
($1,682)
($1,692)
($1,702)
Change in
Short-Term
Debt
$108
$108
$109
$110
$110
$111
$111
$112
$113
$113
$114
$115
Net Cash
Flow from
Operations
Change in
Accounts
Receivable
Change in
Income Tax
Payable
Change in
Sales Tax
Payable
Change in
Prepaid
Revenue
Net Cash
Flow from
Operations
Investing &
Financing
Assets
Purchased or
Sold
Investments
Received
Dividends &
Distributions
59
Net Cash
Flow from
Investing &
Financing
Cash at
Beginning of
Period
Net Change in
Cash
Cash at End
of Period
($1,489)
($1,498)
($1,506)
($1,515)
($1,524)
($1,533)
($1,542)
($1,551)
($1,560)
($1,569)
($1,578)
($1,587)
$52,102
$58,671
$72,087
$74,836
$83,744
$97,026
$110,309
$119,215
$132,495
$145,777
$154,685
$166,572
$6,569
$13,416
$2,749
$8,908
$13,282
$13,283
$8,906
$13,280
$13,282
$8,908
$11,887
$11,190
$58,671
$72,087
$74,836
$83,744
$97,026
$110,309
$119,215
$132,495
$145,777
$154,685
$166,572
$177,762
60
FY2018
Oct '17
Nov '17
Dec '17
Jan '18
Feb '18
Mar '18
Apr '18
May '18
Jun '18
Jul '18
Aug '18
Sep '18
$13,251
$13,257
$13,266
$13,274
$13,281
$13,290
$13,299
$13,305
$13,313
$13,322
$13,332
$13,340
$1,934
$1,934
$1,933
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,934
$1,933
($3,803)
$0
$0
$0
$0
$0
$1
$0
$0
($1)
$0
$1
Change in
Inventory
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Change in
Accounts
Payable
$265
$132
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
$2,338
$2,340
($18,230)
$2,342
$2,344
$2,346
$2,346
$2,348
$2,350
$2,351
$2,352
$2,355
($2,771)
$1,604
$1,604
($3,208)
$1,604
$1,605
($3,209)
$1,604
$1,604
($3,208)
$1,605
$1,604
$11,214
$19,267
($1,428)
$14,341
$19,162
$19,174
$14,370
$19,190
$19,200
$14,397
$19,222
$19,232
Change in
Long-Term
Debt
($1,712)
($1,722)
($1,732)
($1,742)
($1,752)
($1,763)
($1,773)
($1,783)
($1,794)
($1,804)
($1,815)
($1,825)
Change in
Short-Term
Debt
$115
$116
$117
$117
$118
$119
$120
$120
$121
$122
$123
$123
Net Cash
Flow from
Operations
Net Profit
Depreciation
and
Amortization
Change in
Accounts
Receivable
Change in
Income Tax
Payable
Change in
Sales Tax
Payable
Change in
Prepaid
Revenue
Net Cash
Flow from
Operations
Investing &
Financing
Assets
Purchased or
Sold
Investments
Received
Dividends &
Distributions
61
Net Cash
Flow from
Investing &
Financing
($1,597)
($1,606)
($1,615)
($1,625)
($1,634)
($1,644)
($1,653)
($1,663)
($1,673)
($1,682)
($1,692)
($1,702)
Cash at
Beginning of
Period
$177,762
$187,379
$205,040
$201,997
$214,713
$232,241
$249,771
$262,488
$280,015
$297,542
$310,257
$327,787
$9,617
$17,661
($3,043)
$12,716
$17,528
$17,530
$12,717
$17,527
$17,527
$12,715
$17,530
$17,530
$187,379
$205,040
$201,997
$214,713
$232,241
$249,771
$262,488
$280,015
$297,542
$310,257
$327,787
$345,317
Net Change in
Cash
Cash at End
of Period
62
FY2016
FY2017
FY2018
Net Profit
$59,699
$116,570
$159,533
$30,931
$23,207
$23,206
Change in Accounts Receivable
($14,975)
($4,026)
($3,798)
Change in Inventory
($34,842)
($5,582)
$0
Change in Accounts Payable
($5,184)
$2,492
$386
Change in Income Tax Payable
$10,534
$10,037
$7,582
$2,961
$1,414
$438
$49,124
$144,112
$187,347
Change in Sales Tax Payable

Change in Prepaid Revenue

Investing & Financing
Assets Purchased or Sold
($81,200)
Investments Received
Change in Long-Term Debt
$65,728
($19,786)
($21,217)
Change in Short-Term Debt
$18,452
$1,334
$1,431
$2,980
($18,452)
($19,786)
($2)
$52,102
$177,756
$52,104
$125,660
$167,561
$52,102
$177,762
$345,317
Dividends & Distributions
Net Cash Flow from Investing & Financing

Cash at Beginning of Period
Net Change in Cash
Cash at End of Period

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CONFIDENTIAL

488 East 11th Avenue, Suite 220

GARRETT'S BIKE SHOP - QB

Products and Services......................................................................5

Target Market ..................................................................................8

Strategy and Implementation .........................................................11

Company Overview .......................................................................15

GARRETT'S BIKE SHOP - QB

Financial Statements ......................................................................24

GARRETT'S BIKE SHOP - QB

GARRETT'S BIKE SHOP - QB

GARRETT'S BIKE SHOP - QB

GARRETT'S BIKE SHOP - QB

GARRETT'S BIKE SHOP - QB

Products and Services

Accessories. We offer a wide variety of accessories. Locks, computer speedometers,

Garrett's Bike Shop is a full-service specialized

GARRETT'S BIKE SHOP - QB

Free 30-day/100-mile tune up with every new bike sold.

Installation of all accessories.

Authorized warranty repairs on the bikes.

Custom wheel building.

Frameset repairs by outsourcing to Via Porco custom frame builders.

Customer Validation Results

One local multi-sport store at the local megamall

Three local, including the oldest shop in town.

Several garage mechanics offering service only.

GARRETT'S BIKE SHOP - QB

GARRETT'S BIKE SHOP - QB

They are mostly undergraduates, so there is a 25% annual turnover.

They want convenience for sales and service.

University employees are another prime market segment.

Are willing to commute by bicycle to work.

They want a stable, comfortable bike and a full range of accessories.

GARRETT'S BIKE SHOP - QB

Greater Metroburg population.

Quality bikes at several price points.

Plenty of replacement components and service parts.

Friendly personal relationships between cyclists and shop staff.

1960s - Big rush on 10 speeds.

GARRETT'S BIKE SHOP - QB

1970s - Touring bikes became popular.

1980s and 1990s - Huge growth of mountain bikes

2000s - Popularity of retro 'cruisers.'

GARRETT'S BIKE SHOP - QB

Strategy and Implementation

GARRETT'S BIKE SHOP - QB

Flat Tire -- $7.50

Install Fenders -- $10.00

Brake Adjustment -- $25.00

GARRETT'S BIKE SHOP - QB

Bicycle manufacturers - continuation of dating programs and financial agreements.

Accessory suppliers - continuation of financial agreements.

GARRETT'S BIKE SHOP - QB

HooDaThunkIt - website design and maintenance, search engine placement.

GARRETT'S BIKE SHOP - QB

GARRETT'S BIKE SHOP - QB

The current owner, Han Delbar will be available as a resource.

Order Out of Chaos, our full-cycle bookkeeping service.

Continental Shelf Bank.

GARRETT'S BIKE SHOP - QB

GARRETT'S BIKE SHOP - QB