Starting a Plastic Manufacturing Plant

Starting a plastic manufacturing plant, like any other business, requires research and planning. More than just a business, it requires the technical and scientific knowledge of manufacturing plastic as well as the legal requirements of licenses and environmental permits. Here are a few things to consider in starting a plastic manufacturing plant. Like any other business, planning to start a plastic manufacturing plant involves a lot of planning and research. In fact, one may consider starting a manufacturing plant even more tedious than any other business as one does not only try and consider the business aspect of the plastic manufacturing plant but even the environmental and legal aspects of the business venture. It requires not only the skills of a businessman but even the knowledge and skill of a scientist and engineer. Services of attorneys may also be needed to help maneuver the environmental and license requirement of the government. But before even going into the specific needs of a plastic manufacturing plant, it is first essential to determine what kind of plastic one is looking to produce. here are a lot of plastic products in the market today and there are even more competitors for the said product. !ne has to carefully plan and research the market and find out which area has a shortage or need for plastic products. In determining the kind of product to produce, one must also consider the skill level needed to produce such product. "o you have the necessary background in plastic making for such product# "o you have the necessary e$perience in manufacturing such product# %fter determining the product, it is then necessary to decide the si&e of the plastic manufacturing plant. "o you plan to work merely at home or start a plant some other place# How much plastic do you want to produce in a given period of time# here are generally three ways in starting a plastic manufacturing plant. !ne can either buy an e$isting manufacturing plant. here are a lot of plastic manufacturing plants that are fully furnished and offered for sale in various parts of the world. hey cater to a wide variety of plastic products. %nother way is to start the manufacturing plant yourself. his means producing the necessary capital or finding investors to do so and building'up the plant yourself. %nother way is to start small and try homemade plastic first. If one is (ust new in the plastic manufacturing business, one can choose to apprentice and work for a plastic plant before starting one)s own business. !nce you are knowledgeable of your desired product, the scientific and technical way to manufacture it and the type of business venture you are planning, as well as the location of your plant, you can start looking into the license and permit requirements of the government. !ftentimes, environmental pre' conditions are also necessary before a permit or license is granted.

Plastics Recycling Business Plan

*lan !utline
o +., -$ecutive Summary .., /ompany Summary 0., *roducts 4.0 Market Analysis Summary arget 1arket Segment Strategy

o o

1arket Segmentation Industry %nalysis Barriers to -ntry /ompetition and Buying *atterns 1ain /ompetitors 2., Strategy and Implementation Summary 3., 1anagement Summary 4., 5inancial *lan %ppendi$

Executive Summary
he growing utili&ation of plastics in industrial and consumer applications, combined with increased consumer awareness surrounding solid waste recycling, has led to an increased demand for recycled plastic resins and products. !ne of the fastest growing types of collected plastic materials for recycling is polyethylene terephthalate 67*- 78 from post'consumer beverage and water bottles. 9eplay *lastics will capitali&e on the opportunities in the recycled resin and packaging markets through two main divisions: aRecycling Division and a Packaging Division. he /ompany will create a *- cleaning and refining plant located in the western ;nited States 6all +3 ma(or <orth %merican *- recycling plants are currently located in the eastern ;nited States or /anada8. Its initial capacity will be =3 million pounds, and it will utili&e post'consumer bottle feed stock presently collected in /alifornia, !regon and >ashington States, which collect over .,, million pounds per year. he /ompany will be vertically integrated, and use almost all of its recycled material in its *ackaging "ivision. %ny surplus materials 6clean flake8 produced will be sold to outside companies. he e$truded sheet may then be sold to manufacturers, who will thermoform it into high'visibility packaging or use it in other high value added manufacturing operations. he strapping will be sold to companies who ship large packages or pallets, such as the lumber milling industry. The Com any currently has commitments availa!le from customers to urchase all of the ro"uct ro"uce". MA#A$%M%#T Ben Braddock, *resident, has a 0,'year history of e$perience encompassing all aspects of *olymer 9aw 1aterial, *lastic /onversion 1ethods, and ?enture "evelopment. He has founded successful ventures in the plastic converting industry, and assisted in the launch of five plastic converting manufacturing plants. Sam 1c@uire, -$ecutive ?* and /!!, is a graduate -ngineer with over ., years e$perience in the post' consumer plastics recycling industry and is the inventor of the primary cleaning A refining technology used in the process for this pro(ect. He has received a patent for his technology and has been directly involved in over twenty'five ma(or post consumer plastics recycling pro(ects. /arl 9. Smith, /5!, has over 0, years investment and merchant banking and management e$perience. He has assisted in raising over B2,, million and served as board member andCor officer in over =, public and private companies. &'#A#C'A( S)MMAR* %fter a four month start'up period to build the recycling and packaging facilities, buy equipment, and incorporate the business, 9eplay *lastics will begin a quick turnaround of product. Sales will begin in 1ay, and with over B+2 1illion in sales the first year, we will see a first year net profit of B..0 1illion. he owners are investing B2,,,,,, each, for a total of B+.2 1illion, and are securing an BD,,E long'term loan. he /ompany is also seeking an investment of B.,4,,,,,, in order to begin operations. hese funds will be used for the purchase of one recycling line and one manufacturing line, for the set up of the plant

facilities and for working capital. %n outside investor providing this amount would receive =DF equity in 9eplay, and receive an I99 of 3GF from simple dividends alone over the ne$t 2 years. %t the end of that period, we will consider a public offering of stock or a buy'out by a related business. 9ecent information on private sales of similar industry companies has indicated that transactions under B.2 million have averaged 2.0 times -BI "%, while transactions in the range of B.2'.2, million have averaged over 4 times -BI "%. 5urther details can be found in the 5inancial *lan, below.

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1.1 Objectives
+. .. 0. Sales passing B+2 million in first year, B0+ million in year ., growing to B=0 million. @ross margin of 02F or more in first year, =2F in second year then 2,F or more. <et profit of +0F in year one, then e$ceeding .,F annually starting in year two.

1.2 Mission
9eplay *lastics is a manufacturing company dedicated to converting waste plastic materials into commercially viable products, utili&ing environmentally friendly recycling and manufacturing methods. >e intend to make enough profit to generate a significant return for our investors and to finance continued growth and continued development in quality products. >e will also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas and hard work.

1.3 Keys to Success

he main keys to the success of the /ompany are: Secure Supply' /ontract for supply of post'consumer bottles and post'industrial manufacturing waste for *- raw material feed stock. 1arketing ' /ontractual arrangements for the sale of virtually all initial production. 1anagement ' Strong senior management with e$tensive, broad'based, industry'specific e$perience.

1.4 Potential Risks

)navaila!le or scarce ra, material fee" stock for ro"uction 9eplay is confident that it has secured good availability of low cost post'consumer *bottles 6feed stock8 derived from post'consumer beverage bottles from /alifornia based recycling collectors, and has back up sources identified. Technology em loye" may !e unrelia!le or un roven 9eplay will use a proven, patented technology that was developed by one of its principals for the cleaning and recycling phase. he e$trusion division will employ commercially proven technology ' the industry is employing unique recycled *- technology which is used by prominent eastern ;.S. manufacturers of *- e$trusions. There may not !e a market for the Com any-s ro"ucts he Industry'wide e$perience of the 1anagement eam has allowed them to identify markets for the /ompanyHs products. heir e$pertise and reputations have allowed them to obtain commitments for virtually all of the planned initial production. The location may not !e near enough to markets he markets that have been identified are primarily in the western ;.S., which will provide a distinct advantage to the /ompany because of freight costs and delivery timing. The Com any may not !e a!le to attract to management he /ompany has assembled a world class management team with proven ability and direct e$perience in the /ompanyHs market segments. Com any may not meet environmental stan"ar"s his environmentally'favorable venture provides for the development of technically feasible and economically viable solutions to *- plastic beverage bottle recycling, as well as environmentally aware in'house re'use practices which filter and return nearly all of the process water to the production lines. The Com any may not !e a!le to sell all of its ro"uction ca a!ility hrough the Senior 1anagementHs industry'wide contacts, the /ompany has identified potential customers and received commitments for all of the production potential of the initial facility.

Com any Summary he /ompany will capitali&e on the opportunities in the recycled resin and packaging markets through two main divisions: a 9ecycling "ivision and a *ackaging "ivision. Recycling Division ;sing a patented process, the /ompany will create a *- cleaning and refining plant located in the western ;nited StatesI we have chosen this region because all +3 ma(or <orth %merican *recycling plants are currently located in the eastern ;nited States or /anada, despite western statesH favorable recycling attitudes among consumers. Its initial annual capacity will be =3 million pounds and it will utili&e bottle feed stock from /alifornia, !regon and >ashington States, which collect over .,,,,,,,,,, pounds per year. he /ompany will become totally vertically integrated, and use all or almost all of its recycled material in its *ackaging "ivision. %ny surplus material produced will be sold to outside companies. Packaging Division >e will create a plant 6actual facilities to be shared with the 9ecycling "ivision8 to manufacture e$truded plastic roll stock sheet or high'strength strapping, employing state'of'the'art technology developed to utili&e recycled *- resin. he e$truded sheet will be primarily sold to thermoformers who will convert it into high visibility packaging, as well as laminators and fabricators. he strapping will be sold to commercial users for use as package or pallet strapping. The Com any currently has commitments from customers to urchase all of the initial ro"uction ca acity. %.cess flake ,ill !e sol" to outsi"e customers. /.0 Com any 1,nershi 9eplay *lastics is owned by the initial founders, B. Braddock, S. 1c@uire and /. Smith, who are the proposed three e$ecutives of the operating entity. he plan was conceived and developed by these individuals, with the intent to apply their e$tensive e$perience and contacts in the industry to building a successful profitable corporation. /.0.0 Potential Conflict !ur /!!, 1r. Sam 1c@uire, the inventor and patent holder of the recycling process to be used by the /ompany, is a principal in /ompany % of /hicago, IL. 5or many years, /ompany has designed, manufactured and assembled plastic recycling equipment, and has given us quotes on meeting our needs in this area. %fter a thorough investigation, 9eplay has found that /ompany % is able to source or supply the required equipment at considerably lower cost than any other company from which a quote was available. 1r. 1c@uire has disclosed that /ompany % has included a smaller than normal margin in their quote on goods they will manufacture, to cover overhead, contingency and profit which might result in a small benefit to him. hey have agreed to source all of the equipment possible with no added margin. 9eplay has concluded that the savings available outweigh any other consideration and that we will purchase the cleaning and refining equipment from /ompany %. /./ Start2u Summary

!ur start'up e$penses are budgeted at B.+,,,,,, which is mostly for on'site contractor services during facility preparation. B2,,,,, has been set aside for legal and accounting, B.2,,,, for special consulting that may be required during start up and B2,,,,, each for local engineering and lab equipment and supplies. B0,,,,, has been set aside as a contingency for the start up period. !ur largest Start'up 9equirement is the building of the recycling and e$trusion facility. Its final value at completion is listed below as a long'term asset of B0,3.,,,,, 6e$cluding e$pensed items like consultants and engineering listed above8. %side from the building itself, we need B.2,,,, in machinery and fi$tures, B2,,,,,, of inventory 6plastic bottle feed stock8 and cash to cover us through the initial year.

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Start2u &un"ing Start'up -$penses to 5und Start'up %ssets to 5und Total &un"ing Re3uire" Assets <on'cash %ssets from Start'up /ash 9equirements from Start'up B=,+=2,,,, B3=2,,,, B.+,,,,, B=,4G,,,,, 4560006000

%dditional /ash 9aised /ash Balance on Starting "ate Total Assets (ia!ilities an" Ca ital Liabilities /urrent Borrowing Long'term Liabilities %ccounts *ayable 6!utstanding Bills8 !ther /urrent Liabilities 6interest'free8 Total (ia!ilities /apital *lanned Investment 5ounders Investor %dditional Investment 9equirement Total Planne" 'nvestment Loss at Start'up 6Start'up -$penses8 Total Ca ital Total Ca ital an" (ia!ilities Total &un"ing #ee" real financials+

B, B3=2,,,, 4467806000

B, BD,,,,,, B, B, 49006000

B+,2,,,,,, B.,4,,,,,, B, 446/006000 6B.+,,,,,8 4:68806000 4467806000 4560006000

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Start2u Re3uirements

Start2u %. enses Legal A %ccounting Stationery etc. /onsultants Lab -quipment Local -ngineering 1isc Start up !ther Total Start2u %. enses Start2u Assets /ash 9equired Start'up Inventory !ther /urrent %ssets Long'term %ssets Total Assets Total Re3uirements B3=2,,,, B2,,,,,, B.2,,,, B0,3.,,,,, 4467806000 4560006000 B2,,,,, B2,,,, B.2,,,, B2,,,,, B2,,,,, B0,,,,, B, 4/006000

roducts
9eplay *lastics will utili&e two processes in the same facility to produce: /leaned and recycled plastic *- flake 69*- 8, recovered from post'consumer beverage bottles and manufacturing waste produced by its sheet customers -$truded roll stock sheet *- . -$truded *- high'strength strapping for securing large packages or pallet loadsI each using +,,F 9*- produced in'house

3.1 Product Description

9oll stock sheet will be sold to custom thermoformers primarily to be used to produce high'visibility packaging. It will also be sold to manufacturers of laminates and fabricated plastic products. High strength *- packaging strapping is used to secure packages or pallets in such industries as lumber milling and corrugated and other paper production.

Both products will be e$truded from post'consumer polyethylene terephthalate 6*- 8 bottles. he recycling programs in /alifornia, >ashington and !regon collect in e$cess of .,,,,,,,,,, pounds of *bottles per annum. 9eplayH initial capacity will be =3,,,,,,,, pounds. ;sing a patented process, 9eplay will clean and refine the *- material from the post'consumer bottle stock and post'industrial manufacturing waste. he *- flake resin produced will be e$truded into roll stock sheet or high'strength strapping. %lthough the /ompany e$pects to convert all of its bottle feed stock into e$truded products, any surplus flake will be sold to outside manufacturers.

3.2 Competitive Comparison

>hile quality and delivery are important factors to our potential clients, price is most often the determining factor in a buying decision. @ood'quality packaging products manufactured from recycled 6less e$pensive8 resins, as close as practical to the end customerHs operations, will be most competitive and achieve a significant market share. hese factors have helped to determine the business parameters of 9eplay *lastics.

3.3 Sourcing
In e$cess of .,,,,,,,,,, pounds of post'consumer *- beverage bottles are collected and available as feed stock for manufacturers who can re'process this material into commercial products. he /ompany has e$cellent relations with the firms and associations that collect and distribute these materials and has been assured that its requirements will be available for the foreseeable future. he /ompany has entered negotiations with a /alifornia based source of post'consumer bottles and is confident that sufficient volumes are available on a contract basis from this source to satisfy its requirements. In addition, the /ompany intends to purchase production waste from its sheet customers and blend it into its feed stock. /urrently, the ma(ority of the post'consumer *- bottles collected in /alifornia, !regon and >ashington are e$ported to /hina. he /hinese have absorbed the amounts surplus to the use in <orth %merica. heir interest has kept the industry in the position of being able to maintain a steady price range for this bottle stock. % significant percentage of all sales of such bottle stock are managed by *lastics 9ecycling /orporation of /alifornia 6*9//8, an industry funded marketing agency which operates similarly to a co' operative. hey accept bids from potential buyers on behalf of the firms which act as 7consolidators,7 which accumulate stocks from the smaller, individual bottle'recycling depots. Some amount of the available stocks are regularly bought by recyclers in eastern <orth %merica who focus on the carpet manufacturers who use 9*- resin in their process, but the high cost of transport from the western ;.S. makes eastern sources more desirable. 9eplay has a good relationship with /ompany B, one of the larger consolidators in /alifornia. /ompany B has indicated a desire to contract to supply 9eplay with all of its raw material needs. hey prefer to deal with a local consumer such as 9eplay, rather than the uncertainty and e$tra preparation requirements of the e$port market.

here are other sources of post'consumer feed stock known to 9eplay, and we are confident that we will have sufficient materials available for our production needs.

3.4 Technology
Sam 1c@uire, a key member of our 1anagement team, is one of the original innovators of cleaning and refining technology for post'consumer *- , and we will be utili&ing his patented process in our recycling facility. Sam has worked in the establishment and operation of facilities employing similar technologies over the last several years. !n the manufacturing side, 1anagement has been an integral part of the advancement of industry practices over the last twenty years or so, and includes in their knowledge base most, if not all, of the state'of'the'art available equipment and manufacturing techniques.

Market !nalysis Summary

Strong demand for recycled plastics is working in the industryHs favor. 1a(or users of plastic packaging, apparently responding to consumer desires, have begun incorporating at least some recycled plastic content in their products as part of the growing interest in recycling. 9ecycled resin demand is on the rise as prices for the two ma(or recycled resins, *- and H"*-, continue to hold value or appreciate against their virgin counterparts. In volume, *- is currently the number one recycled resin. Supply of recycled *- is in e$cess of D,, million pounds per year. his figure is e$pected to grow, reaching over + billion pounds during the ne$t few years. he plastics industry has developed new markets and applications for recycled resins from both post'consumer and post'industrial sources. *- leads the recycled recovered resins as the most visible and valuable, and its use is increasing. !f the total 0.4 billion pounds of *- consumed in +GG4, (ust +3F was from recycled sources. !f the more than G, billion pounds of plastics produced annually in the ;nited States, less than 2F is from recycled sources. *lastics, after aluminium, represent the second highest value material in the waste stream and have the highest pro(ected growth rate. 1arkets and uses for recycled plastics are rapidly e$panding. *lastic containers are being collected at the curb for recycling in nearly 2,, communities, representing more than = million households. ;.S. demand for recycled plastic will continue to e$pand and new markets will develop as technologies permit the efficient segregation and reprocessing of high'purity resins. Improved quality of resins, environmental issues and higher prices for virgin resin will contribute to growth. *ackaging is e$pected to be the largest market segment for recycled plastics, with sheet and lumber following. Surveys indicate that %mericans are increasingly willing to collect and separate discarded packages, foregoing a degree of convenience to make products more disposable, and even paying a premium for a recycled item.

Increasingly, communities are refusing to consider incineration until every effort is made first to recycleI public sentiment is strongly in favor of products that can be recycled or are made of recycled materials. In recent years, the household recycling rate of *- bottles has more than doubled to 0,F of all *- soft drink bottles sold. In fact, *- Hs recycling rate is the fastest growing among all beverage containers. he future of *- recycling is even brighter than it has been in the past. *- intrinsic scrap value is second only to aluminium among container materials. he plastics industry has launched a research and development program aimed at increasing *- recycling. %ccording to the ;.S. -nvironmental *rotection %gency 6-*%8, plastic soft drink bottles account for appro$imately .F of the solid waste discarded in %merica. he -*% has set a national goal to recycle .2F of the municipal solid waste stream and the industry is committed to achieving its share of that important goal. he recycling industry intends to accelerate the rate of plastic recycling as part of its commitment to develop solutions to the solid waste problem. Industry analysts have pro(ected that 2,F of all *containers will be recycled by the year .,,4. 1ore plastics will be recycled annually than any other recyclable material. 9eplay believes a significant answer to %mericaHs waste problem lies in creating high value, recycled thermoformable sheet and other e$truded products for the packaging market. %lthough more than .,, million pounds of *- post'consumer materials are collected in the western ;nited States each year, there is presently no local cleaning and refining facility converting the bottles into resins suitable for re'manufacturing. !riginally, recycled *- 69*- 8 was used primarily in the carpet fiber industry, which is located along the eastern seaboard. he early development of the 9*- industry was therefore focused in the eastern ;S%, with eastern states adopting the first bottle deposit laws that resulted in collection of post'consumer bottles that can be recycled. 9ecently, /alifornia, !regon and >ashington have adopted bottle deposit programs, and accumulation of recyclable materials in those states has begun. >ith all of the cleaning and recycling plants and the ma(ority of consumers traditionally located in the eastern part of the country, development of consumers of recycled flake and down'line products, such as film and sheet, has been slow to develop in the >est. % strong demand for post' consumer bottles from %sia has prevented the buildup of inventories and reduced the pressure for the collection industry to find or develop western markets. here is currently no independent e$trusion plant of recycled polyterephthalate 6*- 8 sheet in the western ;nited States or /anada that services the roll stock requirements of ma(or custom and proprietary formers. >ith the development of the recycling industry for *- starting in the eastern part of the country, and the preponderance of consumers of sheet there as well, development of independent e$trusion facilities using 9*- has been slow to develop. It appears that in order to attract such companies, local sources of 9*- would have to available. >hile there are customers in the >est for the products, contracting a supply and shipping it from the -ast makes the venture unattractive. !ur founders recogni&e that an opportunity e$ists and propose a vertically integrated conversion facility that will employ state'of'the'art technologies to produce e$truded sheet and high strength strapping from +,,F recycled *- post'consumer bottle stock, cleaned and refined in our own facility.

4.1 Target Market Segment Strategy

he /ompany has chosen its target markets because recycled *- 69*- 8 is in high demand as flake resin by converters, as roll stock sheet used to produce high visibility packaging and as high strength strapping for the lumber industry. Sales are price'sensitive, so that pro$imity to markets and feed stock

source provide a competitive edge. 9eplay *lastics identified an opportunity to take advantage of both circumstances in the western ;nited States. RP%T &lake otal market demand is reported as +.. billion pounds per year. Since only D,, million pounds are processed in the ;S%, consumers are forced to look at wide spec virgin *- 6virgin resin that is outside of spec but still usable8 which is normally sold at a discount to virgin prices, but still higher than recycled 69*- 8 pricing. Some manufacturers are also forced to import materials from 1e$ico, India and South %merica. Some converters are being forced to use more e$pensive virgin resin. he current pricing for virgin resin is B,.32',.40 per lb. and B,.=.'.20 for 9*- flake. between the two has traditionally been maintained at appro$imately B,.., per lb. he spread

P%T &ilm ; Sheet he total reported market of e$truded film and sheet is D4. million pounds, of which identified industry usage of 9*- is +3, million pounds. he reported market demand 6to replace virgin *S, *?/ and *- 8 if 9*- was available is estimated at + billion pounds. /urrent pricing for 9*- sheet is B,.4,',.4G per lb. RP%T Stra ing he total reported domestic plastic strapping market is .=, million pounds. !f this market, industry usage of virgin polypropylene is +0. million pounds and of *- is +,D million pounds. It is generally accepted in the industry that less e$pensive strapping made from 9*- could not only take over the polypropylene strapping market, but convert as much of the much larger and more e$pensive steel strapping market as 9*- strapping was available. /urrent pricing for 9*- strapping is B,.G, '+.,D per lb.

4.2 Market Segmentation

he primary market can be broken down as follows. Consumers of P%T in< /alifornia: 3. !regon: D >ashington: G

Consumers of =DP% in<

California: 73 Oregon: 10 Washington: 12

%ll information is based on industry research,and data provided by the %merican *lastics /ouncil.

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Market Analysis
Year 1 Potential Customers Western PET Buyers Western #$PE Buyers Total Growth 1% 1% 0.5 ! 79 9% 1 4 0 9% 1 5 1 9% 1 " 2 9% 1 3 9% 1 # Year 2 Year 3 Year 4 Year 5 CAGR 1!2"% 0!00% 0.5 !

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4.3 Industry Analysis

/urrently there is no direct competition in the western ;nited States for either of the two divisions of the /ompany. %ny production in the trading area remains captive and not available to our target market. he ability of the /ompany to obtain a source of post'consumer bottle stock is an integral component of the strategy to vertically integrate operations and manufacture products in demand by western consuming industries. >ithout the cleaning and refining division, it would be difficult to source sufficient 9*- flake resin at costs that would allow the /ompany to be competitive.

4.3.1 Barriers to Entry

(imite" Su ly of ra, material 9ecycled *- 69*- 8 resins are in high demand, and demand is currently under'supplied. 1any manufacturers are delaying e$pansion because of uncertainty of supply. -ntrants would have to consider sourcing post'consumer or post'industrial waste and clean and refine it rather than attempting to purchase flake on the open market. -ven at that, there is not an over'abundance of post'consumer or post industrial material in the marketplace. %3ui ment costs are high an" in"ustry s ecific6 resulting in a high e.it cost. Because of the scarcity of 9*- flake, entrants may be forced to establish cleaning and refining facilities for post'consumer bottles. he equipment required is costly and very industry specific. It would not easily be re'sold as a system. here is a market for used e$trusion equipment, which normally sees 3,'4,F of new value being reali&ed. >ertical integration is an im ortant consi"eration an" "ifficult to accom lish successfully. Because of the scarcity of 9*- resin, and to ma$imi&e profit potential, entrants must consider a two' stage production facility. /leaning and refining post'consumer bottles and e$truding the resulting flake into commercial products requires a management team such as 9eplay has, with a broad range of e$pertise, e$perience, industry contacts and knowledge in both areas. &irm contracts for su ly an" sales. 9eplay 1anagementHs industry contacts will allow us to secure contracts for both supply of feed stock and sale of finished goods. &reight is a ma?or cost of o erations@ ro.imity to source of su ly an" markets is crucial. Hauling plastic materials is e$pensive so entrants will have to consider establishing facilities close to materials and markets. -ntrants with e$isting operations would have to consider new separate facilities in many cases, reducing economies of scale and making management more difficult.

4.3.2 Competition and Buying Patterns

here has been a strong demand 6sellersH market8 for our products for several years. raditional buying patterns in this industry are based on quality, price, reputation of manufacturer, freight costs, delivery times and pro$imity to markets. "uring such a sellersH market, buying patterns are often more influenced by availability.

4.3.3 Main Competitors

/urrently in the western ;nited States, there is no direct competition for cleaning and refining post' consumer or post'industrial *- . <or is there any non'captive e$trusion of roll stock sheet. he e$truded sheet required by thermoformers is currently supplied by: %dvance -$trusion, Becker, 1< Eama, *ittsburgh, *% *lasti'Shell *ackaging, @on&ales, L% *etco, 1ontreal, /anada Elockner, ?%

In a news release dated September +,, .,,=, Itec -nvironmental @roup, Inc. announced their intention to open a *- and High "ensity *olyethelene 6H"*-8 recycling operation in 9iverbank, /% 6east of San 5rancisco8. he news release states that the /ompanyHs new and yet unproven technology lets it work with bottle streams that others have to re(ect as too dirty. his /ompany is familiar to our 1anagement, and is not considered a significant factor in any of our markets.

Strategy and "mplementation Summary

9eplay *lastics will utili&e its strong industry'wide relationships to obtain significant contracts for its production. Some business will be obtained directly by 1anagement, while some amount of product will be sold by sales agents well known to the /ompany who have proven their effectiveness. hese industry'wide relationships will also provide the /ompany the ability to secure contracts for the supply of its raw material at competitive pricing.

5.1 Value Proposition

In a vertically integrated environment, 9eplay will apply state'of'the'art recycling and e$trusion technology managed by decades of industry specific e$pertise to create a competitive advantage for its clients. hese processes will produce clean, cost'efficient, recycled raw material for manufacturers of thermoform, laminate and other high value'added products, and high strength packaging strapping for shippers of large products and pallets, thereby reducing costs and creating a clear pricing edge among their competitors. To develop good business strategies, perform a SW T analysis of your business. !t"s easy with our free guide and template. Learn how to perform a SW T analysis

5.2 Competitive Edge

9eplay *lasticsH competitive edge rests with its pro$imity to its target markets, as well as the industry knowledge, reputation and contacts of its senior management. heir many years of direct e$perience have led them to identify this unique opportunity and put together the technology and sources to take

advantage of it. heir reputation in the specific market segment will result in the achievement of long'term commitments for our production.

5.3 Marketing Strategy

he /ompany has chosen to focus on the production of plastic packaging materials from recycled post' consumer beverage bottles. Because of the industry e$perience and e$pertise of the management, we have identified a significant available market in the western ;nited States. %ll of our initial marketing strategy will be to secure contracts in that segment, and after reaching full planned capacity, look to grow in concert with that segment and related markets. >e see little need at present for further market research and development, and will focus on continually updating our production technology in an effort to remain in the forefront of our chosen marketplace.

5.4 Sales Strategy

Because of the unique e$tensive e$perience and reputation of our 1anagement in the /ompanyHs chosen industry segment, we are able to identify all of the potential customers for each of the products we will produce in our facility. >hile most of the production of flake is ultimately intended to be used internally, we are confident that any developed surplus will be sold immediately. %ll of the production of the initial facility is committed for, and should there be any capacity not consumed by these commitments, once again we are confident that the contacts of our senior management will allow for the rapid sale of any such capacity. If the /ompany grows faster than its prime customer base, additional capacity may be developed. 1r. BraddockHs many years of sales and sales development will be utili&ed to identify additional customers andCor sales agents currently servicing the /ompanyHs target markets. o market the products, the /ompany will use a number of sales agentsCbrokers well known to the founders from business transactions over more than +, years. %ll of these seasoned veterans have a customer base of their own, having developed successful relationships with their clientele over the years. heir customer base is currently demanding product so they can e$pand upon their current base. !f course, they will e$pand that to new customers when product is available from 9eplay. hose agents are located in: Jacksonville, 5lorida Houston, e$as /hicago, Illinois Louisville, Eentucky Los %ngeles, /alifornia ?ancouver, British /olumbia

%s stated, Ben Braddock, himself, is a strong marketing individual. !ver his 0, years of e$perience in the packaging and converting industry he has developed relationships with a number of clients that are

buyers of packaging materials. He has consulted to many and has been personally responsible for sourcing raw materials and converted sheet for customers in this industry. /ustom formers, e$truders, laminators, and end user markets will be called upon by Ben and the sales agent team to promote and generate demand from those that buy and use 9*- packaging materials.

5.4.1 Sales Forecast

he sales forecast is based on the assumption that we will sell all of the highest value e$truded products that we can produce. In addition, it is e$pected that there will be amounts of refined flake surplus to our e$trusion capacity. his flake will be sold to other manufacturing companies. here is a continuing strong demand for flake and e$truded products made from recycled *- . /ost of raw materials includes .=F allowance for price variation and +2F non'recoverable waste.

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$ales %ore&ast
Year 1 'nit $ales &e'y'le( )la*e PET E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing Total 'nit $ales 'nit Pri&es &e'y'le( )la*e PET E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing $ales &e'y'le( )la*e PET 09+2"0+120 0,+0,"+01 00 00 00 20+%33+,00 12+ 33+900 0 0 0 30+ 00+000 1%+"00+000 4"(200(000 Year 5 00!%% 00! % 01!10 Year 2 Year 3 Year 4 Year 5

+3"1+"00 2 + 7"+,00 30+ 00+000 30+ 00+000 0 "+"91+%00 1%+"00+000 1%+"00+000

2#(# 5(000 4"(200(000 4"(200(000 4"(200(000 Year 1 00!"% 00!70 00!00 Year 2 00!"7 00!7" 00!9% Year 3 00!%0 00!77 01!00 Year 4 00!%2 00! 1 01!0%

E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing Total $ales +ire&t 'nit Costs &e'y'le( )la*e PET E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing +ire&t Cost o, $ales &e'y'le( )la*e PET E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing $u-total +ire&t Cost o, $ales

0%+ 3 +9 0021+222+ 31023+7,9+90002"+9% +39% 00 0"+2,,+92%01%+"00+00001,+170+000 )15(0 *(100)31(553( Year 1 00!27 00!27 00!00 4)3*(1"*(*00)41(12#(3*5 Year 3 00!29 00!29 00!30 Year 4 00!31 00!31 00!31

02,+20,+31% 01,+9"0+000 )43(14"(315 Year 5 00!32 00!32 00!33

Year 2 00!2 00!2 00!2

0%+""1+"0" 03+%71+033

00

00

00 09+920+9,2 0%+0 2+000 )15(002(*"2

02+210+"71 0 +03"+3%7 0 +99 +,0% 09+"" +%3% 00 01+2%7+,20 0"+,20+000 0"+77"+000 ) ("51(# 5)12(#"3(010)13("1#("05)14(222(535

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5.5 Milestones
Because the /ompany is a start'up, our milestones will surround the establishment of continuing facilities, confirmation of sourcing and sales contracts, equipment acquisition and installation, staffing and training, and initiating production.

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Milestones
Milestone Or(er E1ui/2ent .e'ure 5o'ation .e'ure Or(ers3Contra'ts .ite Pre/aration #ire Plant 4anager &e'ei6e E1ui/2ent #ire 7 Train .*ille( 5a8or Begin Pro(u'tion #ire 7 Train 9ns*ille( 5a8or :nstall E1ui/2ent $tart +ate 1323200% 1323200% 1323200% 2313200% 232 3200% 232 3200% "31%3200% %313200% .n/ +ate 13313200% 13313200% 13313200% 232%3200% 331%3200% 33313200% "3303200% %313200% 0u/1et Mana1er +e2artment n3a n3a n3a n3a n3a n3a n3a $e/art2ent

n3a .enior 4g2nt n3a .enior 4g2nt n3a .enior 4g2nt n3a .enior 4g2nt n3a .enior 4g2nt n3a .enior 4g2nt n3a .enior 4g2nt 00 .enior 4g2nt

"3303200% "313200%

%31%3200% "3303200%

n3a .enior 4g2nt n3a .enior 4g2nt

n3a n3a

Totals

)0

Management Summary
he three founders form the senior management group. Several qualified candidates have been identified for the position of plant manager. he balance of the employees will be hired and trained during the equipment purchase and installation phase 6first five months after funding8. Because the sales management function will be the responsibility of Ben Braddock, with pro(ected use of familiar sales agents, there are no plans for additional inside sales people or managers. Ben Braddock and Sam 1c@uire have agreed to remain with the /ompany for the foreseeable future. In addition to their respective duties, they will each become totally familiar with all aspects of Senior 1anagement, and be in a position to take over for each other should the need arise. /arl Smith has agreed to remain with the /ompany for a minimum of two years, and will assume the responsibility of locating and training a replacement before the end of his employment.

6.1 Organizational Structure

he !rgani&ational Structure of 9eplay *lastics is planned to be a simple and traditional one. %ll recycling and manufacturing operations will report to the /!!. %ll administrative and finance functions will report to the /5!. Both the /!! and /5! will report to the /-!, who will also have the responsibility for Sales and 1arketing.

6.2 Management Team

Ben Bra""ock6 Presi"ent an" C%16 has a 0,'year history of e$perience encompassing all aspects of *olymer 9aw 1aterial, *lastic /onversion 1ethods, and ?enture "evelopment. He founded /ompany /, a multi'cavity plastic in(ection molder container facility, and /ompany ", a solid phase pressure forming polypropylene 6**8 food container facility. He also assisted in the launch of five plastic converting manufacturing plants. 5or the last fifteen years Ben has been an independent consultant in the plastics industry. His clients have included [proprietary and confidential information removed]. Sam 1c@uire, -$ecutive ?* and /!!, is a graduate engineer with over ., years e$perience in the post' consumer plastics recycling industry and is the inventor of the primary recycling technology used in the process for this pro(ect. He has received a patent for his recycling technologies and has been directly involved in over twenty'five ma(or post consumer plastics recycling pro(ects. Sam has played a ma(or role in the design and manufacture of specific recycling equipment as well as playing a key management role in the design, construction, installation, commissioning and operation of several independent recycling businesses. In +GGD, Sam sold his interests in a medical waste treatment and plastics recycling business to a public company 6/ompany %8 based in /hicago. Since that time he has served as ?ice *resident, International Business "evelopment and -ngineering for this /ompany. His primary responsibilities over the past five years have included: the rollout of the corporate business model to international countriesI the licensing of intellectual property to (oint venture companiesI managing the design and construction of medical waste

treatment and plastics recycling facilities and continuing business and technical support to the resulting (oint venture businesses throughout the world. In the past five years, Sam has successfully completed pro(ects in Bra&il, %rgentina, South %frica, Japan and %ustralia totaling over B+,, 1illion in investment. Carl R. Smith6 /5!, has over 0, years of investment, merchant banking and management e$perience. He has assisted in raising over B2,, million and served as board member andCor officer in over =, public and private companies. /arl is the former /-! of - /orporation, Ltd., a company manufacturing plastic in(ection molded products. *rior to +GG0 he was a partner in two independent investment banking firms, /ompany 5 and /ompany @. "uring his time at /ompany @, more than B=2, million was raised for client companies, and the assets grew to B2, million. *rior to forming /ompany @, /arl was a principal and manager of several operating companies in industries such as plastics, mining and oil and gas e$ploration.

6.3 Personnel Plan

he /ompany e$pects to have a head count of 20 63 part'time8 by the end of year one, 2G 6G part'time8 in year two, and 40 6+2 part'time8 in year three through five at full capacity. >e have budgeted for labor rates ranging from B+, per hour for unskilled labor to B+D per hour for machine operators and 1aintenance echnicians. >e e$pect to pay B., per hour to supervisors. >e have also included 0,F burden for benefits and employee costs, as well as a .2F bonus potential for all plant employees.

Personnel Plan
Year 1 Pro/u&tion Personnel .hift .u/er6isor 4aintainen'e Te'hs .*ille( &e'y'le Plant 5a8or 9ns*ille( &e'y'le Plant 5a8or E-tru(er O/erator ;full ti2e< E-tru(er O/erator ;/art ti2e< Pro(u'tion =ssistant ;full ti2e< Pro(u'tion =ssistant ;/art ti2e< >a2e or Title or ?rou/ $u-total 0129+1,9 0210+000 011,+,," 01 3+7%0 03%0+000 0%%1+2%0 01,"+0,, 029%+%13 0 7+%0" 020,+719 02%+%22 0, +90, 0220+%00 0192+93 0%7 + 13 0310+07 02 9+"0, 09,+",9 020,+719 0, +90, 00 0231+%2% 0202+% % 0,07+7%" 032%+% 2 0303+ 7, 0101+292 0217+0%% 072+3%1 00 02"3+101 0212+71" 0,3 +1"1 03"1+ ,1 0319+070 010,+3%7 0227+90 07%+9,9 00 )2(1"5(121 Year 2 Year 3 Year 4 Year 5

0,2+%0" 01"7+,%, 01 +22 00 0"9+219 00

)*53("5 )1( 13(013 )1(*"3(#2* )2(0"2(020

$ales an/ Marketin1 Personnel 'o22ission@8asis @ see P75 >a2e or Title or ?rou/ $u-total General an/ A/ministrati3e Personnel Presi(ent Ai'e Pres COO C)O Plant 4anager =''ountant Cler* Cler* Cler* .hi//er &e'ei6er $u-total 4ther Personnel >a2e or title >a2e or title $u-total Total Peo2le Total Payroll 00 00 )0 51 00 00 )0 5 00 00 )0 "* 00 00 )0 "* 00 00 )0 "* )2(#*"(5"1 072+000 0110+000 0,7+200 0100+000 0,7+200 0100+000 0,3+000 029+200 020+ 00 01%+,00 00 027+200 0 +200 0121+000 0110+000 0110+000 092+,10 0" +23% 03"+"%" 03"+"%" 03"+"%" 0""+9 2 )"30(1#* 0133+100 0121+000 0121+000 097+2"1 0%0+,"7 03,+17, 03,+17, 03,+17, 0"7+231 )" #( 4 01",+"10 0133+100 0133+100 0102+103 0%3+179 037+9 % 037+9 % 037+9 % 0"9+%93 ) 31(440 00 00 )0 00 00 )0 00 00 )0 00 00 )0 00 00 )0

0"%+93 032+ 13 032+ 13 032+ 13 0"2+ "0

)3"2(200 )5#5(41

)1(315(#5 )2(2*#(430 )2(5*4(01# )2( 40( "

#inancial lan
!nce the equipment arrives and is installed, production ramps up rather quickly, with sales beginning in the si$th month after funding. *ositive cash flow and net profit are achieved within the first year.

7.1 Important Assumptions

9eplay has allowed for 0, days to collect receivables due to knowledge and e$perience with customers in the industry. Inventory turnover is predicted at +. times, which is e$tremely conservative. he personnel burden includes contribution by the /ompany to employee health care. >e have allowed for %ccounts 9eceivable financing of 4,F at an interest rate of +.F per annum. It is assumed that additional e$trusion lines will be added in the second year, with down payments of 00F at time of order and balance paid at time of shipment 6see /ash 5low for details8. hese will be purchased as long'term assets out of the cash flows of the business. @eneral annual growth rates of 2F have been assumed on all sales prices and material and labor costs.

General Assum2tions
Year 1 Plan 4onth Current :nterest &ate 5ong@ter2 :nterest &ate Ta- &ate 4ther 1 12!00% !00% 30!00% 0 Year 2 2 12!00% !00% 30!00% 0 Year 3 3 12!00% !00% 30!00% 0 Year 4 " 12!00% !00% 30!00% 0 Year 5 % 12!00% !00% 30!00% 0

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7.2 Break-even Analysis

>ith fi$ed costs of about B+D=,,,, per month in the first year, and variable unit costs at roughly 2.F of prices, we need to produce and sell 4+2,G30 units per month to break even. >e will far e$ceed the break' even point in our first full month of sales.

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0reak5e3en Analysis
4onthly 9nits Brea*@e6en 4onthly &e6enue Brea*@e6en Assum2tions6 =6erage Per@9nit &e6enue =6erage Per@9nit Aaria8le Cost .stimate/ Monthly %i7e/ Cost 00!%2 00!27 )1#4(1"0 71%+9,2 0373+ 90

7.3 Projected Profit and Loss

he rapid growth of sales in year one and two is due primarily to increase in capacity over that period, as we add new e$trusion equipment. he plan assumes the sale of all production capacity as it is added. he favorable gross margin pro(ections are in part due to the vertical integration of the two processes. !ur 1anagementsH ability to handle all initial sales and marketing allows us to predict virtually no sales or marketing e$pense.

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Pro %orma Pro,it an/ 8oss

Year 1 $ales $ire't Cost of .ales Pro(u'tion Payroll Pa'*aging .ales Co22ission Total Cost o, $ales ?ross 4argin ?ross 4argin % 42eratin1 .72enses $ales an/ Marketin1 .72enses .ales an( 4ar*eting Payroll =(6ertising3Pro2otion Tra6el Total $ales an/ Marketin1 .72enses .ales an( 4ar*eting % General an/ A/ministrati3e .72enses ?eneral an( =(2inistrati6e Payroll .ales an( 4ar*eting an( Other E-/enses $e/re'iation Payroll Bur(en 00 0,+000 00 00 0%0+000 00 00 0100+000 00 00 01%0+000 00 00 0200+000 00 Year 2 Year 3 Year 4 Year 5 )43(14"(315 01%+002+9,2 02+1,%+121 0"31+",3 02+0,3+%2" )1*(""3(0 1 023+" 3+2"" %"!"3%

)15(0 *(100 )31(553(

4 )3*(1"*(*00 )41(12#(3*5

07+,%1+ 7% 012+ ,3+010 013+,1 +,0% 01"+222+%3% 09%3+,%7 01+713+013 01+9,3+ 29 02+0,2+020 01%0+791 031%+%3 0391+,99 0"11+2 " 01+9,%+2,1

0733+102 01+%01+ 93 01+ 71+,7

)*(4#*(425 )1"(3*3(454 )1 (#45(#11 )1#(""1(100 0%+% 9+,7, 01%+1,0+320 021+32"+090 022+",7+29% 37!07% " !0%% %"!""% %"!,3%

)"(000 0!0"%

)50(000 0!1,%

)100(000 0!2,%

)150(000 0!3,%

)200(000 0!",%

03,2+200

0% %+"17

0,30+1 9

0,7 +7"7

0731+""0

00 02"1+7"0 039"+7%7

00 0"0%+992 0, 9+%29

00 0%,2+90 077 +20%

00 0%,2+90 0 22+230

00 0%,2+90 0 , +9,

Offi'e E1ui/2ent &ent Offi'e .u//lies3E-/ense Tra6el 7 Entertain2ent 5ease( Aehi'les 9tilities :nsuran'e 4is' Plant 7 4aintainen'e .u//lies Other Total General an/ A/ministrati3e .72enses ?eneral an( =(2inistrati6e % 4ther .72enses6 Other Payroll 4is' ;'ontingen'y< Prof )ees ; :n'lu( legal 7 a''ounting< Total 4ther .72enses Other % Total 42eratin1 .72enses Profit Before :nterest an( Ta-es EB:T$= :nterest E-/ense Ta-es :n'urre( 9et Pro,it 9et Pro,it:$ales

0,+000 012+000 01,+000 01 +000

0,+000 01%+000 030+000 02%+000

0 +000 020+000 03%+000 030+000

0 +000 022+%00 0"0+000 030+000

0 +000 02%+000 0"%+000 030+000 01+9"1+% " 02%+000

0,7 +%,0 01+"19+920 01+7,2+,", 01+ %0+77 02"+000 02%+000 02%+000 02%+000

0,0+000 00

0,3+000 00

0,,+1%0 00

0,9+"% 00

072+930 00

)1(#13(25 12!02%

)3(2"4(#5# )3(*1#(0*# )4(10*("21 10!3%% 10!00% 9!99%

)4(310(#31 9!99%

00 090+,,1

00 01,3+239

00 019%+90%

00 020%+" 1

00 021%+%"2

0300+000 )3*0(""1 2!%9%

0330+000 )4*3(23* 1!%,%

03,3+000 )55#(*05 1!"3% )4(5

0399+300 )"04( #1 1!"7%

0"39+230 )"54( 2

1!%2% )5(1"5("03

)2(20*(*1# )3(#0#(0*

(003 )4(#"4(402

03+379+7% 011+3%2+223 01,+7"7+0 7 017+,02+ 93 03+,21+"9 011+7% +21% 017+309+99% 01 +1,%+ 01 0,0+%, 0%"+"," 0" +0," 0"1+,,"

01 +317+,"1 01 + 0+%"9 03%+2," 0%+" "+713 )12( * (""4 2*.""!

099%+7%7 03+3 9+32

0%+009+707 0%+2, +3,9

)2(323(433 ) (*0#(431 )11("#*(31" )12(2*2(#"0 15.41! 25.0"! 2*.#4! 2*.#*!

7.4 Projected Cash Flow

/ash flow is predicted to turn positive in the si$th month of operations, which is the tenth month after funding. he /ash 5low table shows our planned repayment of the long'term loan, as well as the

purchase of new e$trusion equipment in the first two year of the plan. "ividends to founders and the outside investor are shown near the bottom of the table.

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Pro %orma Cash %low

Year 1 Cash Re&ei3e/ Cash fro2 O/erations Cash .ales 00 00 00 00 00 Year 2 Year 3 Year 4 Year 5

Cash fro2 &e'ei6a8les

013+09"+21 029+3 %+19 03 +1,7+3 0"0+ 70+%9 9 2 0 , )13(0*4(21 )2*(3#5(1* )3#(1" (3# )40(# 0(5* * 2 0 "

0"2+

0+,93

$u-total Cash ,rom 42erations =((itional Cash &e'ei6e(

)42(##0("*3

.ales Ta-+ A=T+ #.T3?.T &e'ei6e( >eB Current BorroBing >eB Other 5ia8ilities ;interest@free< >eB 5ong@ter2 5ia8ilities .ales of Other Current =ssets .ales of 5ong@ter2 =ssets >eB :n6est2ent &e'ei6e(

00 00 00 00 00 00 00

00 00 00 00 00 00 00

00 00 00 00 00 00 00

00 00 00 00 00 00 00

00 00 00 00 00 00 00

$u-total Cash Re&ei3e/ .72en/itures E-/en(itures fro2 O/erations Cash ./en(ing

)13(0*4(21 )2*(3#5(1* )3#(1" (3# )40(# 0(5* * 2 0 " Year 1 Year 2 Year 3 Year 4

)42(##0("*3 Year 5

01+31%+ %7 02+29 +"30 02+%9"+01

02+7"0+7,7

02+ 9,+%,1

Bill Pay2ents

09+7,2+9"9

020+9 3+ " 02"+120+"1 02%+"7 +3, 9 2 0

02,+ 2"+2 0

$u-total $2ent on 42erations =((itional Cash ./ent .ales Ta-+ A=T+ #.T3?.T Pai( Out Prin'i/al &e/ay2ent of Current BorroBing Other 5ia8ilities Prin'i/al &e/ay2ent 5ong@ter2 5ia8ilities Prin'i/al &e/ay2ent Pur'hase Other Current =ssets Pur'hase 5ong@ter2 =ssets

)11(0 #(#0 )23(2#2(2 )2"( 14(43 )2#(21*(12 " * 0

)2*( 20(#42

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

079+200 00

0 0+000 00

0 0+000 00 00

0 0+000 00 00 010+000+00 0

0 0+000 00 00

01+%91+000 03+229+000

$i6i(en(s

00 03+000+000 0 +000+000

010+000+000

$u-total Cash $2ent 9et Cash %low

)12( 4*(00 )2*(5*1(2 )34( *4(43 )3#(2**(12 " * 0 )345(213 ;)20"(0##< )3(3 2(*50 )2(5 1(4"*

)3*(#00(#42 )3(0 *(#52

Cash 0alan&e

)**0(213

) #4(125 )4(15 (0 5 )"( 2#(544

)*(#0#(3*"

7.5 Projected Balance Sheet

he vertical integration, immediate sales contracts and rapid ramp up of production combine to pro(ect a <et >orth at the end of year one in e$cess of the total invested capital. By staying on plan, the /ompany will achieve rapid growth compared to invested capital.

Pro %orma 0alan&e $heet

Year 1 Assets Current =ssets Cash =''ounts &e'ei6a8le :n6entory Other Current =ssets Total Current Assets 5ong@ter2 =ssets 5ong@ter2 =ssets =''u2ulate( $e/re'iation Total 8on15term Assets Total Assets 8ia-ilities an/ Ca2ital Current 5ia8ilities =''ounts Paya8le Current BorroBing Other Current 5ia8ilities $u-total Current 8ia-ilities 5ong@ter2 5ia8ilities Total 8ia-ilities 01+""%+2", 01+7"9+72, 02+003+3"% 02+102+2"0 00 00 00 00 00 00 00 00 02+213+91" 00 00 )2(213(*14 0"00+ 00 )2("14( 14 0%+211+000 0 +""0+000 0 +""0+000 0 +""0+000 02"1+7"0 0,"7+732 01+210+,"0 01+773+%" 0 +""0+000 02+33,+"%, )"(103(544 )22("1"(41# Year 5 0990+213 01+9 "+ 07 "+12% 0"+1%7+07% 0,+72 +%"" 09+ 0 +39, 0%+,79+"03 01+000+07% 02%+000 )1"(512(# 4 Year 2 Year 3 Year 4 Year 5

1 0"+1%3+",3 0%+1%%+9 3 0%+"13+7 2 0 %7+%3" 02%+000 0907+907 02%+000 09%3+302 02%+000

0%10+12% 02%+000

)3(510(21* )5(#20(122 )10(245(*"5 )13(120("2#

)4(*"*(2"0 ) ( *2(2"# ) (22*(3"0 )"("""(452 )#(4 *(4 *)13("12(3*0 )1 (4 5(325 )1*( # (0#0 Year 1 Year 2 Year 3 Year 4

)1(445(24" )1( 4*( 2" )2(003(345 )2(102(240 0720+ 00 0,"0+ 00 0%,0+ 00 0" 0+ 00

)2(1""(04" )2(3*0(52" )2(5"4(145 )2(5#3(040

Pai(@in Ca/ital &etaine( Earnings Earnings Total Ca2ital Total 8ia-ilities an/ Ca2ital 9et =orth

0"+200+000 0"+200+000 0"+200+000 0"+200+000 ;0210+000< ;0 ,+%,7< ;097 +13,< 0711+1 0

0"+200+000 03+00"+0"0 012+797+,," )20(001( 04 )22("1"(41# )20(001( 04

02+323+"33 07+90 +"31 011+, 9+31, 012+292+ ,0 )"(313(433)11(221(#"4 )14(*11(1#0 )1 (204(040 )#(4 *(4 *)13("12(3*0 )1 (4 5(325 )1*( # (0#0 )"(313(433)11(221(#"4 )14(*11(1#0 )1 (204(040

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7.6 Business Ratios

Standard business ratios are included in the following table, along with comparison ratios for the hermoplastic 1aterials industry 6SI/ /ode .D.+.,.8. he ratios show a plan for healthy growth. !ur return on investment increases each year and will allow for new equipment to be financed internally should the /ompany choose to do so. >hile the ratios indicate rapid growth and profitability, it may be e$plained in part by the fact of the integration of three business sections into the one facility. !ur ratios differ significantly from the rest of the industry because of our ability to use low'cost recycled materials to manufacture our products.

Ratio Analysis
Year 1 .ales ?roBth Per&ent o, Total Assets =''ounts &e'ei6a8le :n6entory Other Current =ssets Total Current =ssets 5ong@ter2 =ssets Total Assets 23!"1% ,!02% 0!29% "1!"0% % !,0% 30!%1% ,!30% 0!1 % "2!7,% %7!2"% 29!%0% %!20% 0!1"% % !,3% "1!37% 27!3,% "! 2% 0!13% ,,!31% 33!,9% 100.00! 2%!11% "!"2% 0!11% 73!01% 2,!99% 100.00! 2"! 3% 11!%3% 32!03% , !39% 31!,1% 100.00! Year 2 Year 3 2"!1"% Year 4 %!00% Year 5 "!91% >n/ustry Pro,ile 9!27%

0!00% 109!2,%

100.00! 100.00! 100.00!

Current 5ia8ilities 5ong@ter2 5ia8ilities Total 5ia8ilities 9et =orth Per&ent o, $ales .ales ?ross 4argin .elling+ ?eneral 7 =(2inistrati6e E-/enses =(6ertising E-/enses Profit Before :nterest an( Ta-es Main Ratios Current Cui'* Total $e8t to Total =ssets Pre@ta- &eturn on >et Worth Pre@ta- &eturn on =ssets A//itional Ratios >et Profit 4argin &eturn on E1uity A&ti3ity Ratios =''ounts &e'ei6a8le Turno6er Colle'tion $ays :n6entory Turno6er =''ounts Paya8le Turno6er Pay2ent $ays Total =sset Turno6er

17!0"% !%0% 2%!%"% 4.4"!

12! %% "!71% 17!%,% #2.44!

11!",% 3!21% 1"!,7% #5.33!

10!,2% 2!"3% 13!0%% #".*5!

9!79% 1!77% 11!%,% ##.44!

2,!,2% 2%!2,% %1! %

4#.12!

100!00% 100!00% 100!00% 37!07% " !0%% %"!""%

100!00% %"!,3%

100!00% %"!"3%

100!00% 2 !02%

22!3,% 0!0"%

22!,3% 0!17%

2"!3,% 0!27%

2"!1,% 0!3 %

2"!37% 0!" %

1%! 9% 0!17%

22!"1%

3%!9 %

"2!7%%

"2! 0%

"2!"%%

2!",%

2!"3 2!0 2%!%"%

3!33 2! " 17!%,%

%!11 "!,, 1"!,7%

,!2" %!79 13!0%%

7!", 7!01 11!%,% %7!

1!79 1!22 %

%2!%7% 100!, % 111!99% 39!1"% Year 1 1%!"1% 3,! 0% 3!00% Year 2 2%!0,% 70!"7% 9%!%,% Year 3 29! "% 7 !39%

102!0 % !7%% Year 4 29! 9% 71!"%%

91!"0% 0! "% Year 5 29!,,% ,3!9 %

2!22% %!2 %

n!a n!a

7!,0 29 1%!7,

7!,0 3, 1 ! 1

7!,0 "3 1%!"3

7!,0 "7 1%!2

7!,0 "7 1%!3,

n!a n!a n!a

7!7, 27 1!7

12!17 27 2!32

12!17 2 2!2"

12!17 29 2!0

12!17 29 1!91

n!a n!a n!a

+e-t Ratios $e8t to >et Worth Current 5ia8! to 5ia8! 8i?ui/ity Ratios 02+0,"+97 0"+070+39 0 +2"2+,2 011+01 +3 01"+29 +9, 3 , 0 0 %%! 0 20 !"" 3" !"3 "22!%0 %19!"" 0!3" 0!,7 0!21 0!73 0!17 0!7 0!1% 0! 1 0!13 0! % n!a n!a

>et Wor*ing Ca/ital :nterest Co6erage A//itional Ratios =ssets to .ales Current $e8t3Total =ssets ='i( Test .ales3>et Worth +i3i/en/ Payout

n!a n!a

0!%, 17% 0!70 2!39 0.00

0!"3 13% 0!", 2! 1 0.3#

0!"% 11% 2!09 2!,3 0."#

0!" 11% 3!21 2!39 0.#1

0!%2 10% "!"" 2!1, 0. #

n!a n!a n!a n!a n.a

7.7 Long-term Plan

he plan calls for ma$imum production rate for flake in the si$th month from funding. %ppro$imately one third of that production will be converted into e$truded sheet beginning appro$imately at the same time. % second sheet e$truder, which will also consume one third of the flake produced, is planned to be added at the end of year one, coming on line mid year two. % third e$truder, which is planned to produce high' strength strapping, is e$pected to come on line late in year two. By the beginning of year three, it is e$pected that all of the =3,.,,,,,, lbs. of 9*- cleaned A recycled annually will be converted into e$truded products. ;p until this time, e$cess flake produced will be sold to other e$truder companies. he plan assumes a 2F increase in the sales price of all products and a 2F increase in the cost of raw materials and labor in each of years . through 2. he result of the above is rapid growth in revenue and profit through year three, and moderate growth in years four and five, assuming no e$pansion of capacity during that time.

7.8 Replay's Exit Strategy

1anagement is indifferent as to the question of looking to sell the /ompany after ='2 years or retaining ownership and the resulting annual cash flow. hey will look to the investors for their direction and will generally support their wishes.

9ecent information on private sales of similar industry companies has indicated that transactions under B.2 million have averaged 2.0 times -BI "%, while transactions in the range of B.2'.2, million have averaged over 4 times -BI "%. Such multiples would put the potential sales price of 9eplay, after ='2 years of operation, in e$cess of B+,, million based on current pro(ections.

!ppendix

$ales %ore&ast
Month Month Month Month 1 2 3 4 Month 5 'nit $ales &e'y'le( )la*e PET E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing Total 'nit $ales Month " Month Month # Month * Month 10 Month 11 Month 12

0%

0 1+92%+000 3+20 +"00 2+%,,+700 2+%,,+700 2+%,,+700 2+%,,+700 2+%,,+700

2+%,,+700

0%

,"1+,00 1+2 3+300 1+2 3+300 1+2 3+300 1+2 3+300 1+2 3+300

1+2 3+300

0%

0 1(*25(000 3(#50(000 3(#50(000 3(#50(000 3(#50(000 3(#50(000 3(#50(000

3(#50(000

'nit Pri&es &e'y'le( )la*e PET E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing $ales &e'y'le( )la*e PET E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing Total $ales +ire&t 'nit Costs &e'y'le( )la*e PET

Month Month Month Month 1 2 3 4 Month 5

Month "

Month

Month #

Month * Month 10 Month 11

Month 12

00!"% 00!00 00!00 00!00

00!"%

00!"%

00!"%

00!"%

00!"%

00!"%

00!"%

00!"%

00!70 00!70 00!70 00!70

00!70

00!70

00!70

00!70

00!70

00!70

00!70

00!70

00!9% 00!9% 00!9% 00!9%

00!9%

00!9%

00!9%

00!9%

00!9%

00!9%

00!9%

00!9%

00

00

00

00 0 ,,+2%0 01+""3+7 0 01+1%%+01% 01+1%%+01% 01+1%%+01% 01+1%%+01% 01+1%%+01%

01+1%%+01%

00

00

00

00

00 0""9+120 0 9 +310 0 9 +310 0 9 +310 0 9 +310 0 9 +310

0 9 +310

00 )0

00 )0

00 )0

00

00

00

00

00

00

00

00

00 )2(053(325

)0 )#""(250 )1(#*2(*00 )2(053(325 )2(053(325 )2(053(325 )2(053(325 )2(053(325

Month Month Month Month 1 2 3 4 Month 5

Month "

Month

Month #

Month * Month 10 Month 11

Month 12

0!00% 00!27 00!27 00!27 00!27

00!27

00!27

00!27

00!27

00!27

00!27

00!27

00!27

E-tru(e( &oll .to'* .heet 0!00% 00!27 00!27 00!27 00!27

00!27

00!27

00!27

00!27

00!27

00!27

00!27

00!27

E-tru(e( .tra//ing +ire&t Cost o, $ales &e'y'le( )la*e PET E-tru(e( &oll .to'* .heet E-tru(e( .tra//ing $u-total +ire&t Cost o, $ales

0!00% 00!27 00!27 00!27 00!27

00!27

00!27

00!27

00!27

00!27

00!27

00!27

00!27

00

00

00

00 0%10+12% 0 %0+22, 0, 0+17, 0, 0+17, 0, 0+17, 0, 0+17, 0, 0+17,

0, 0+17,

00

00

00

00

00 0170+02" 03"0+07% 03"0+07% 03"0+07% 03"0+07% 03"0+07%

03"0+07%

00

00

00

00

00

00

00

00

00

00

00

00

)0

)0

)0

)0 )510(125 )1(020(250 )1(020(250 )1(020(250 )1(020(250 )1(020(250 )1(020(250

)1(020(250

#ee" real financials+

We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.

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Personnel Plan
Month Month Month 1 2 3Month 4 Month 5 Month " Month Pro/u&tion Personnel .hift .u/er6isor 4aintainen'e Te'hs .*ille( &e'y'le Plant 5a8or 9ns*ille( &e'y'le Plant 5a8or E-tru(er O/erator ;full ti2e< E-tru(er O/erator ;/art ti2e< Pro(u'tion =ssistant ;full ti2e< Pro(u'tion =ssistant ;/art ti2e< >a2e or Title or ?rou/ $u-total $ales an/ Marketin1 Personnel 00 00 00 00 00 00 00 012+%00 01,+,,7 01,+,,7 01,+,,7 01,+,,7 01,+,,7 01,+,,7 00 01"+% 3 01"+% 3 01"+% 3 01"+% 3 01"+% 3 01"+% 3 01"+% 3 01,+,,7 01"+% 3 Month # Month * Month 10 Month 11 Month 12

00

00

00

00 0"3+7%0 0"3+7%0 0"3+7%0 0"3+7%0 0"3+7%0 0"3+7%0 0"3+7%0

0"3+7%0

00

00

00

00

00 023+"3

023+"3

023+"3

023+"3

023+"3

023+"3

023+"3

00

00

00

00 010+93

010+93

010+93

010+93

010+93

010+93

010+93

010+93

00

00

00

00

00

03+,",

03+,",

03+,",

03+,",

03+,",

03+,",

03+,",

00

00

00

00

07+ 13

07+ 13

07+ 13

07+ 13

07+ 13

07+ 13

07+ 13

07+ 13

00 00 )0

00 00 )0

00 00 )0

00 00

00 00

02+,0" 00

02+,0" 00

02+,0" 00

02+,0" 00

02+,0" 00

02+,0" 00

02+,0" 00 )123(43*

)0 )#*(5#4 )123(43* )123(43* )123(43* )123(43* )123(43* )123(43*

'o22ission@8asis @ see P75 >a2e or Title or ?rou/ $u-total General an/ A/ministrati3e Personnel Presi(ent Ai'e Pres COO C)O Plant 4anager =''ountant Cler* Cler* Cler* .hi//er &e'ei6er $u-total 4ther Personnel >a2e or title >a2e or title $u-total Total Peo2le Total Payroll

00 00 )0

00 00 )0

00 00 )0

00 00 )0

00 00 )0

00 00 )0

00 00 )0

00 00 )0

00 00 )0

00 00 )0

00 00 )0

00 00 )0

02+000 02+000 02+000 02+000 01+ 00 01+ 00 01+ 00 01+ 00 01+ 00 01+ 00 01+ 00 01+ 00 00 00 00 00 00 00 00 00 00 00 00 00 00 07+000 00 00 00 00 00 00 00 00 00 00

0 +000 07+%00 07+%00 07+000 03+,%0 02+,00 00 00 03+"00

0 +000 07+%00 07+%00 07+000 03+,%0 02+,00 00 00 03+"00

0 +000 07+%00 07+%00 07+000 03+,%0 02+,00 02+,00 00 03+"00

0 +000 07+%00 07+%00 07+000 03+,%0 02+,00 02+,00 00 03+"00

0 +000 07+%00 07+%00 07+000 03+,%0 02+,00 02+,00 00 03+"00

0 +000 07+%00 07+%00 07+000 03+,%0 02+,00 02+,00 00 03+"00

0 +000 07+%00 07+%00 07+000 03+,%0 02+,00 02+,00 00 03+"00

0 +000 07+%00 07+%00 07+000 03+,%0 02+,00 02+,00 00 03+"00 )42(250

)5("00 )5("00 )5("00 )12("00 )3*("50 )3*("50 )42(250 )42(250 )42(250 )42(250 )42(250

00 00 )0 3

00 00 )0 3

00 00 )0 3

00 00 )0 4

00 00 )0 50

00 00 )0 50

00 00 )0 51

00 00 )0 51

00 00 )0 51

00 00 )0 51

00 00 )0 51

00 00 )0 51 )1"5("#*

)5("00 )5("00 )5("00 )12("00 )12*(234 )1"3(0#* )1"5("#* )1"5("#* )1"5("#* )1"5("#* )1"5("#*

General Assum2tions
Month 1Month 2Month 3Month 4Month 5Month "Month Month #Month * Plan 4onth Current :nterest &ate 5ong@ter2 :nterest &ate Ta- &ate 4ther 1 2 3 " % , 7 9 Month Month 10 11 10 11 Month 12 12

12!00% 12!00% 12!00% 12!00% 12!00% 12!00% 12!00% 12!00% 12!00% 12!00% 12!00%

12!00%

!00%

!00%

!00%

!00%

!00%

!00%

!00%

!00%

!00%

!00%

!00%

!00% 30!00% 0

30!00% 30!00% 30!00% 30!00% 30!00% 30!00% 30!00% 30!00% 30!00% 30!00% 30!00% 0 0 0 0 0 0 0 0 0 0 0

Pro %orma Pro,it an/ 8oss

Month 1

Month 2

Month 3

Month 4

Month 5

Month "

Month

Month #

Month *

Month 10

Month 11

Month 12

$ales

)0

)0

)0

)0

)#""(250 )1(#*2(*00 )2(053(325 )2(053(325 )2(053(325 )2(053(325 )2(053(325

)2(053(325

$ire't Cost of .ales

00

00

00

00

0%10+12% 01+020+2%0 01+020+2%0 01+020+2%0 01+020+2%0 01+020+2%0 01+020+2%0

01+020+2%0

Pro(u'tion Payroll

00

00

00

00

0 9+% "

0123+"39

0123+"39

0123+"39

0123+"39

0123+"39

0123+"39

0123+"39

Pa'*aging

00

00

00

00

0 +,,3

01 +929

020+%33

020+%33

020+%33

020+%33

020+%33

020+%33

.ales Co22ission

00

00

00

00

0"3+313

093+0"1

099+"%

099+"%

099+"%

099+"%

099+"%

099+"%

Total Cost o, $ales

)0

)0

)0

)0

)"51("#4 )1(255("5* )1(2"3("#0 )1(2"3("#0 )1(2"3("#0 )1(2"3("#0 )1(2"3("#0

)1(2"3("#0

?ross 4argin

00

00

00

00

021"+%,,

0,37+2"1

07 9+,"%

07 9+,"%

07 9+,"%

07 9+,"%

07 9+,"%

07 9+,"%

?ross 4argin %

0!00%

0!00%

0!00%

0!00%

2"!77%

33!,,%

3 !",%

3 !",%

3 !",%

3 !",%

3 !",%

3 !",%

42eratin1 .72enses

$ales an/ Marketin1 .72enses

.ales an( 4ar*eting Payroll

00

00

00

00

00

00

00

00

00

00

00

00

=(6ertising3Pro2otion

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

Tra6el

00

00

00

00

00

00

00

00

00

00

00

00

Total $ales an/ Marketin1 .72enses

)500

)500

)500

)500

)500

)500

)500

)500

)500

)500

)500

)500

.ales an( 4ar*eting %

0!00%

0!00%

0!00%

0!00%

0!0,%

0!03%

0!02%

0!02%

0!02%

0!02%

0!02%

0!02%

General an/ A/ministrati3e .72enses

?eneral an( =(2inistrati6e Payroll

0%+,00

0%+,00

0%+,00

012+,00

039+,%0

039+,%0

0"2+2%0

0"2+2%0

0"2+2%0

0"2+2%0

0"2+2%0

0"2+2%0

.ales an( 4ar*eting an( Other E-/enses

00

00

00

00

00

00

00

00

00

00

00

00

$e/re'iation

020+1"%

020+1"%

020+1"%

020+1"%

020+1"%

020+1"%

020+1"%

020+1"%

020+1"%

020+1"%

020+1"%

020+1"%

Payroll Bur(en

30%

01+, 0

01+, 0

01+, 0

03+7 0

03 +770

0" +927

0"9+707

0"9+707

0"9+707

0"9+707

0"9+707

0"9+707

Offi'e E1ui/2ent &ent

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

0%00

Offi'e .u//lies3E-/ense

01+000

01+000

01+000

01+000

01+000

01+000

01+000

01+000

01+000

01+000

01+000

01+000

Tra6el 7 Entertain2ent

00

00

00

00

02+000

02+000

02+000

02+000

02+000

02+000

02+000

02+000

5ease( Aehi'les

01+%00

01+%00

01+%00

01+%00

01+%00

01+%00

01+%00

01+%00

01+%00

01+%00

01+%00

01+%00

9tilities

00

00

00

00

03 +9 1

0 %+1 1

092+"00

092+"00

092+"00

092+"00

092+"00

092+"00

:nsuran'e

02+000

02+000

02+000

02+000

02+000

02+000

02+000

02+000

02+000

02+000

02+000

02+000

4is' Plant 7 4aintainen'e .u//lies

1%%

0%+000

0%+000

0%+000

0%+000

0%+000

0%+000

0%+000

0%+000

0%+000

0%+000

0%+000

0%+000

Other

00

00

00

00

00

00

00

00

00

00

00

00

Total General an/ A/ministrati3e .72enses

)3 (425

)3 (425

)3 (425

)4"(525

)14*(54"

)205(*02

)21"(501

)21"(501

)21"(501

)21"(501

)21"(501

)21"(501

?eneral an( =(2inistrati6e %

0!00%

0!00%

0!00%

0!00%

17!2,%

10!

10!%"%

10!%"%

10!%"%

10!%"%

10!%"%

10!%"%

4ther .72enses6

Other Payroll

00

00

00

00

00

00

00

00

00

00

00

00

4is' ;'ontingen'y<

01+ 71

01+ 71

01+ 71

02+32,

07+"77

010+29%

010+ 2%

010+ 2%

010+ 2%

010+ 2%

010+ 2%

010+ 2%

Prof )ees ; :n'lu( legal 7 a''ounting<

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

Total 4ther .72enses

)2"(# 1

)2"(# 1

)2"(# 1

)2 (32"

)32(4

)35(2*5

)35(#25

)35(#25

)35(#25

)35(#25

)35(#25

)35(#25

Other %

0!00%

0!00%

0!00%

0!00%

3!7%%

1! ,%

1!7"%

1!7"%

1!7"%

1!7"%

1!7"%

1!7"%

Total 42eratin1 .72enses

)"4( *"

)"4( *"

)"4( *"

) 4(351

)1#2(523

)241("*

)252(#2"

)252(#2"

)252(#2"

)252(#2"

)252(#2"

)252(#2"

Profit Before :nterest an( Ta-es

;0,"+79,<

;0,"+79,<

;0,"+79,<

;07"+3%1<

032+0"3

039%+%""

0%3,+ 1

0%3,+ 1

0%3,+ 1

0%3,+ 1

0%3,+ 1

0%3,+ 1

EB:T$=

;0""+,%1<

;0""+,%1<

;0""+,%1<

;0%"+20,<

0%2+1

0"1%+, 9

0%%,+9,3

0%%,+9,3

0%%,+9,3

0%%,+9,3

0%%,+9,3

0%%,+9,3

:nterest E-/ense

0%+2 9

0%+2"%

0%+201

0%+1%7

0%+113

0%+0,9

0%+02%

0"+9 1

0"+937

0"+ 93

0"+ "9

0"+ 0%

Ta-es :n'urre(

;021+02,<

;021+012<

;020+999<

;023+ %2<

0 +079

0117+1"2

01%9+%3

01%9+%%1

01%9+%,"

01%9+%7

01%9+%91

01%9+,0"

9et Pro,it

;)4*(0"0<

;)4*(02*<

;)4#(**#<

;)55("5"<

)1#(#50

)2 3(332

)3 2(255

)3 2(2#"

)3 2(31

)3 2(34#

)3 2(3 #

)3 2(40*

9et Pro,it:$ales

0.00!

0.00!

0.00!

0.00!

2.1#!

14.44!

1#.13!

1#.13!

1#.13!

1#.13!

1#.14!

1#.14!

Pro %orma Cash %low

Month 1 Month 2 Month 3 Month 4 Month 5 Month " Month Month # Month * Month 10 Month 11 Month 12

Cash Re&ei3e/

Cash fro2 O/erations

Cash .ales

00

00

00

00

00

00

00

00

00

00

00

00

Cash fro2 &e'ei6a8les

00

00

00

00

02 + 7%

0900+"72 01+ 9 +2" 02+0%3+32% 02+0%3+32% 02+0%3+32% 02+0%3+32%

02+0%3+32%

$u-total Cash ,rom 42erations

)0

)0

)0

)0

)2#(# 5

)*00(4 2 )1(#*#(24# )2(053(325 )2(053(325 )2(053(325 )2(053(325

)2(053(325

=((itional Cash &e'ei6e(

.ales Ta-+ A=T+ #.T3?.T &e'ei6e(

0!00%

00

00

00

00

00

00

00

00

00

00

00

00

>eB Current BorroBing

00

00

00

00

00

00

00

00

00

00

00

00

>eB Other 5ia8ilities ;interest@free<

00

00

00

00

00

00

00

00

00

00

00

00

>eB 5ong@ter2 5ia8ilities

00

00

00

00

00

00

00

00

00

00

00

00

.ales of Other Current =ssets

00

00

00

00

00

00

00

00

00

00

00

00

.ales of 5ong@ter2 =ssets

00

00

00

00

00

00

00

00

00

00

00

00

>eB :n6est2ent &e'ei6e(

00

00

00

00

00

00

00

00

00

00

00

00

$u-total Cash Re&ei3e/

)0

)0

)0

)0

)2#(# 5

)*00(4 2 )1(#*#(24# )2(053(325 )2(053(325 )2(053(325 )2(053(325

)2(053(325

.72en/itures

Month 1

Month 2

Month 3

Month 4

Month 5

Month "

Month

Month #

Month * Month 10 Month 11

Month 12

E-/en(itures fro2 O/erations

Cash ./en(ing

0%+,00

0%+,00

0%+,00

012+,00

0129+23"

01,3+0 9

01,%+, 9

01,%+, 9

01,%+, 9

01,%+, 9

01,%+, 9

01,%+, 9

Bill Pay2ents

0777

023+31"

023+2 3

023+2"2

037+2%0

0"9"+3,0 01+, "+ % 01+"9%+23% 01+"9%+20" 01+"9%+173 01+"9%+1"2

01+"9%+112

$u-total $2ent on 42erations

)"(3

)2#(*14

)2#(##3

)35(#42

)1""(4#4

)"5 (44* )1(#50(54 )1(""0(*24 )1(""0(#*3 )1(""0(#"2 )1(""0(#31

)1(""0(#01

=((itional Cash ./ent

.ales Ta-+ A=T+ #.T3?.T Pai( Out

00

00

00

00

00

00

00

00

00

00

00

00

Prin'i/al &e/ay2ent of Current BorroBing

00

00

00

00

00

00

00

00

00

00

00

00

Other 5ia8ilities Prin'i/al &e/ay2ent

00

00

00

00

00

00

00

00

00

00

00

00

5ong@ter2 5ia8ilities Prin'i/al &e/ay2ent

0,+,00

0,+,00

0,+,00

0,+,00

0,+,00

0,+,00

0,+,00

0,+,00

0,+,00

0,+,00

0,+,00

0,+,00

Pur'hase Other Current =ssets

00

00

00

00

00

00

00

00

00

00

00

00

Pur'hase 5ong@ter2 =ssets

00

00

00

00

00

00

00

00

00

0%, +000

00

01+023+000

$i6i(en(s

00

00

00

00

00

00

00

00

00

00

00

00

$u-total Cash $2ent

)12(*

)35(514

)35(4#3

)42(442

)1 3(0#4

)""4(04* )1(#5 (14 )1("" (524 )1("" (4*3 )2(235(4"2 )1("" (431

)2("*0(401

9et Cash %low

;)12(*

<

;)35(514<

;)35(4#3<

;)42(442< ;)144(20*<

)23"(423

)41(101

)3#5(#01

)3#5(#32 ;)1#2(13 <

)3#5(#*4

;)"3 (0 "<

Cash 0alan&e

)"32(023

)5*"(50*

)5"1(02"

)51#(5#5

)3 4(3 "

)"10( *#

)"51(#** )1(03 ( 00 )1(423(532 )1(241(3*5 )1("2 (2##

)**0(213

#ee" real financials+

We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.

Create your own business plan

Pro %orma 0alan&e $heet

Month 1 Month 2 Month 3 Month 4 Month 5 Month " Month Month # Month * Month 10 Month 11 Month 12

Assets

$tartin1 0alan&es

Current =ssets

Cash

0,"%+000

0,32+023

0%9,+%09

0%,1+02,

0%1 +% %

037"+37,

0,10+79

0,%1+ 99 01+037+700 01+"23+%32 01+2"1+39% 01+,27+2

0990+213

=''ounts &e'ei6a8le

00

00

00

00

00

0 37+37% 01+ 29+ 03 01+9 "+

1 01+9 "+

1 01+9 "+

1 01+9 "+

1 01+9 "+

01+9 "+

:n6entory

0%00+000

0%00+000

0%00+000

0%00+000

0%00+000

02%%+0,3

0%10+12%

0%10+12%

0%10+12%

0%10+12%

0%10+12%

0%10+12%

0%10+12%

Other Current =ssets

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

02%+000

Total Current Assets

)1(1 0(000 )1(15 (023 )1(121(50* )1(0#"(02" )1(043(5#5 )1(4*1(#13 )2(* 5( 2" )3(1 1(*05 )3(55 ( 0" )3(*43(53# )3( "1(401 )4(14 (2*4

)3(510(21*

5ong@ter2 =ssets

5ong@ter2 =ssets

03+,20+000 03+,20+000 03+,20+000 03+,20+000 03+,20+000 03+,20+000 03+,20+000 03+,20+000 03+,20+000 03+,20+000 0"+1

+000 0"+1

+000

0%+211+000

=''u2ulate( $e/re'iation

00

020+1"%

0"0+290

0,0+"3%

0 0+% 0

0100+72%

0120+ 70

01"1+01%

01,1+1,0

01 1+30%

0201+"%0

0221+%9%

02"1+7"0

Total 8on15term Assets

)3("20(000 )3(5**(#55 )3(5 *( 10 )3(55*(5"5 )3(53*(420 )3(51*(2 5 )3(4**(130 )3(4 #(*#5 )3(45#(#40 )3(43#("*5 )3(*#"(550 )3(*""(405

)4(*"*(2"0

Total Assets

)4( *0(000 )4( 5"(# # )4( 01(21* )4("45(5*1 )4(5#3(005 )5(011(0## )"(4 4(#5" )"("50(#*0 ) (01"(54" ) (3#2(233 ) ( 4 (*51 )#(113("**

)#(4 *(4 *

8ia-ilities an/ Ca2ital

Month 1

Month 2

Month 3

Month 4

Month 5

Month "

Month

Month #

Month * Month 10 Month 11

Month 12

Current 5ia8ilities

=''ounts Paya8le

00

022+%3

022+%0

022+"7

022+1"7

0"37+9 0 01+,3%+01, 01+""%+39% 01+""%+3,% 01+""%+33% 01+""%+30% 01+""%+27,

01+""%+2",

Current BorroBing

00

00

00

00

00

00

00

00

00

00

00

00

00

Other Current 5ia8ilities

00

00

00

00

00

00

00

00

00

00

00

00

00

$u-total Current 8ia-ilities

)0

)22(53#

)22(50#

)22(4 #

)22(14

)43 (*#0 )1("35(01" )1(445(3*5 )1(445(3"5 )1(445(335 )1(445(305 )1(445(2 "

)1(445(24"

5ong@ter2 5ia8ilities

0 00+000

0793+"00

07 ,+ 00

07 0+200

0773+,00

07,7+000

07,0+"00

07%3+ 00

07"7+200

07"0+,00

073"+000

0727+"00

0720+ 00

Total 8ia-ilities

)#00(000

)#15(*3#

)#0*(30#

)#02(" #

) *5( 4 )1(204(*#0 )2(3*5(41" )2(1**(1*5 )2(1*2(5"5 )2(1#5(*35 )2(1 *(305 )2(1 2(" "

)2(1""(04"

Pai(@in Ca/ital

0"+200+000 0"+200+000 0"+200+000 0"+200+000 0"+200+000 0"+200+000 0"+200+000 0"+200+000 0"+200+000 0"+200+000 0"+200+000 0"+200+000

0"+200+000

&etaine( Earnings

;0210+000< ;0210+000< ;0210+000< ;0210+000< ;0210+000< ;0210+000< ;0210+000< ;0210+000< ;0210+000< ;0210+000< ;0210+000< ;0210+000<

;0210+000<

Earnings

00

;0"9+0,0<

;09 +0 9< ;01"7+0 7< ;0202+7"3< ;01 3+ 92<

0 9+""0

0",1+,9%

0 33+9 1 01+20,+29 01+%7 +,"% 01+9%1+02"

02+323+"33

Total Ca2ital

)3(**0(000 )3(*40(*40 )3(#*1(*11 )3(#42(*13 )3( # (25 )3(#0"(10# )4(0 *(440 )4(451("*5 )4(#23(*#1 )5(1*"(2*# )5(5"#("45 )5(*41(024

)"(313(433

Total 8ia-ilities an/ Ca2ital

)4( *0(000 )4( 5"(# # )4( 01(21* )4("45(5*1 )4(5#3(005 )5(011(0## )"(4 4(#5" )"("50(#*0 ) (01"(54" ) (3#2(233 ) ( 4 (*51 )#(113("**

)#(4 *(4 *

9et =orth

)3(**0(000 )3(*40(*40 )3(#*1(*11 )3(#42(*13 )3( # (25 )3(#0"(10# )4(0 *(440 )4(451("*5 )4(#23(*#1 )5(1*"(2*# )5(5"#("45 )5(*41(024

)"(313(433