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This is a business plan. It does not imply an offering of securities.

Table of Contents

1.0 Executive Summary .................................................................................................................... 1

Chart: Highlights .......................................................................................................................... 1
1.1 Objectives.................................................................................................................................... 1
1.2 Mission .......................................................................................................................................... 1
1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 2
2.1 Company Ownership ............................................................................................................... 2
2.2 Start-up Summary ................................................................................................................... 3
Table: Start-up.............................................................................................................................. 3
Chart: Start-up ............................................................................................................................. 4
3.0 Products ........................................................................................................................................... 4
4.0 Market Analysis Summary ........................................................................................................ 5
4.1 Market Segmentation ............................................................................................................. 5
Table: Market Analysis ............................................................................................................... 6
Chart: Market Analysis (Pie) .................................................................................................... 6
4.2 Target Market Segment Strategy ...................................................................................... 6
4.3 Industry Analysis ...................................................................................................................... 7
4.3.1 Competition and Buying Patterns .............................................................................. 7
5.0 Strategy and Implementation Summary ............................................................................ 7
5.1 Competitive Edge ..................................................................................................................... 7
5.2 Marketing Strategy .................................................................................................................. 7
5.3 Sales Strategy ........................................................................................................................... 7
5.3.1 Sales Forecast.................................................................................................................... 7
Table: Sales Forecast ............................................................................................................. 8
Chart: Sales Monthly .............................................................................................................. 8
Chart: Sales by Year ............................................................................................................... 9
5.4 Milestones.................................................................................................................................... 9
Table: Milestones ......................................................................................................................... 9
Chart: Milestones ....................................................................................................................... 10
6.0 Management Summary ............................................................................................................ 10
6.1 Personnel Plan ......................................................................................................................... 10
Table: Personnel ......................................................................................................................... 10
7.0 Financial Plan ............................................................................................................................... 10
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7.1 Start-up Funding .................................................................................................................... 10

Table: Start-up Funding .......................................................................................................... 11
7.2 Important Assumptions ....................................................................................................... 11
7.3 Break-even Analysis .............................................................................................................. 11
Table: Break-even Analysis.................................................................................................... 11
Chart: Break-even Analysis ................................................................................................... 12
7.4 Projected Profit and Loss ..................................................................................................... 12
Table: Profit and Loss ............................................................................................................... 12
Chart: Profit Monthly ................................................................................................................ 13
Chart: Profit Yearly .................................................................................................................... 14
Chart: Gross Margin Monthly................................................................................................. 14
Chart: Gross Margin Yearly .................................................................................................... 15
7.5 Projected Cash Flow .............................................................................................................. 15
Table: Cash Flow ........................................................................................................................ 15
Chart: Cash .................................................................................................................................. 16
7.6 Projected Balance Sheet ...................................................................................................... 16
Table: Balance Sheet ................................................................................................................ 16
7.7 Business Ratios ....................................................................................................................... 17
Table: Ratios ................................................................................................................................ 17
7.8 Long-term Plan ........................................................................................................................ 18
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Cash Flow .................................................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 6
Table: Balance Sheet .......................................................................................................................... 6

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Table of Contents

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My Business Plan

1.0 Executive Summary

Chart: Highlights

1.1 Objectives
The objectives of Moringa Venture:

Increase gross margins from fifteen percent (15%) to seventeen percent (17%) in the next
three years.
To fulfill the after-market skate accessory demand with top quality products.
To develop and manufacture Moringa by Dec,2013.
To reach sales of Khs473,000 by the end of our first year in business, and reach sales of
Ksh39,000 monthly.
To break even by the end of the first year in business.
To encourage our customers to live healthy lives by making Moringa a favourable natural
supplement for them.
To offer skaters support through our web page, such as interviews with Doctor, Podiatrist,
with answers to healthy problems.
To develop a solid e-commerce market and to maximize our profit margin. We make full
retail profit through e-commerce.

1.2 Mission
Moringa Venture is planning on fulfilling the need for organic healthy products, a market we
have identified, based on the healthy benefit of moringa that have been found in the last five
years.

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Our goal is to:

Expand moringa as an alternative to convectional.
Form a network of moringa enthusiasts with an emphasis on health and fitness.
To encourage Moringa as a new alternative healthy product.
To develop Moringa Powder and other new products now on the drawing table
1.3 Keys to Success
keys to success will include:
1. A high level of quality in its product line.
2. Maintaining and growing its referral networks to generate new and repeat sales.
3. Significant investments in research and development and engineering with the aim to focus
on precisely controlled product.
4. Improving efficiencies of operations.
5. Implement a successful advertisement and marketing campaign to inform the existing
clientele and the public of our new image.
6. Maximizing profits by selling through the Internet at full retail price.
7. Maintaining low overhead costs by monitoring and scheduling production.
8. Developing a network with other businesses and experts, such as doctors, through
interviews published on our website.
2.0 Company Summary
Moringa Venture a limited company was formed to create a joint venture with the participation
of the new investors and the current owners: Boniface and Hassan.

Moringa Venture will manufacture and market worldwide the Moringa products, made from a
patent protected new material that includes the use of Moringa seeds. The product will be an
affordable alternative to the high cost of purchasing conventional supplements. Moringa users
purchasing Moringa products will realize substantial savings in their supplements costs.

Moringa Venture is a new entity and has invested in excess of Ksh 1 million to date, to
complete research and development, prototypes, and pre-production marketing of the Moringa
products. initial machinery, materials and supplies were purchased to bring the project to
where it is today so that we can move into production and marketing of the Moringa products
through Moringa Venture.
All patent rights to manufacture and market the Moringa products nationwide, are assigned in
perpetuity to Moringa Venture by the inventor and Moringa Venture's Director.

The Company's was formed as a limited company under the laws of the Republic of Kenya on
June 20, 2013. The principal offices are presently located in Nairobi.
2.1 Company Ownership
Upon completion of the offering Moringa Venture, will be owned by:

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Boniface- 50%,
Imelda- 15%,
hassan - 35%

Moringa Venture is offering 35% of its shares to raise Ksh6 million as additional capital needed
for starting the first plant in Nairobi. Moringa Venture National Headquarters is in Nairobi and
sales representatives will be positioned in targeted marketing areas.
The majority owner, is the inventor of the new material and the Moringa products, Mr. Boniface,
the Directo of Moringa Venture.
The inventor, Boniface, has assigned all patent rights to Moringa Venture to manufacture and
market the Moringa products nationwide in perpetuity.
2.2 Start-up Summary
Moringa Venture's start-up costs amount to $4,900, which covers the initial expenses for
opening the first office. These costs include incorporation of the company, design of the
company logo and website, purchase of office and IT equipment, and other miscellaneous
expenses. The start-up costs are financed by direct owner investment. The assumptions are
detailed in the following table and illustration.
Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Insurance
Rent
Computer
Other
Advertisement
Utilities
Total Start-up Expenses

$50,000
$10,000
$20,000
$58,000
$180,000
$50,000
$450,000
$13,000
$831,000

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

$100,000
$90,000
$70,000
$400,000
$660,000

Total Requirements

$1,491,000

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Chart: Start-up

3.0 Products
ATP's product - the RST-PAL pallet is a unique and revolutionary pallet made from a new,
patent protected, material of recycled scrap tires, a small amount of recycled plastic and a
bonding process. The function specifications of our pallets are identical to the existing wooden
pallets (e.g. sizes, four ways entry, upper deck coverage etc.) except that RST-PAL pallets are
much more durable and longer lasting which makes penetration into the existing markets less
difficult. The patented process and product gives our RST-PAL pallets the following advantages
over the existing pallets:

RST-PAL pallets are less costly to buy and maintain.

RST-PAL pallets are more durable and indestructible.
RST-PAL pallets carry 15 times the load of a similar wood pallet.
RST-PAL pallets are rackable, stackable, and longer lasting than wooden pallets.
RST-PAL pallets do not absorb liquids and are easy to clean.
RST-PAL pallets are guaranteed for years.
RST-PAL pallets have NO competition.
RST-PAL pallets are environmentally friendly and are, themselves, a recyclable product.
RST-PAL pallets are made of recycled scrap tire rubber material using a newly patented
process which includes rubber, recycled plastics, and a binder system.

It is a rare occasion when a company can make a significant contribution to our

environment as well as create an important long awaited product that will provide
substantial cost savings for its users and allow them the opportunity to use and
promote environmentally friendly, recycled products.
According to a study by the Business Communications Services, Norwalk, CT., wooden pallets
will come under increasing challenges from alternative pallet materials such as corrugated
cardboard, plastic, and metal. The study, titled "The Changing Competitive Pallet Industry",
states the lost market share for wood "will be a direct result of environmental concerns, and the

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successful introduction of pallet leasing and alternative pallets made from new materials". The
study said corrugated pallets were chosen "because of their easy disposal and their light
weight, although they are slightly more expensive and more susceptible to damage than wood.
The study predicts market share growth for corrugated to jump from 5.6 million units in 1991
to 20 million by 2001. It predicts plastic pallets will grow from 0.9 million units to 1.5 million in
2001. Growth for wood pallets was estimated at 1.4% per year over the next ten years.
According to the National Wooden Pallet Container Association (NWPCA), its Strategic Planning
Committee suggests that its members educate pallet users toward using higher quality,
reusable multi-trip pallets instead of cheaper single use pallets. From a list of 62 potential
threats to the wooden pallet industry, the committee chose lumber supply/raw material
availability as the top threat. Other top threats identified by the committee include frozen
thinking on the part of the industry, demonstrated by an unwillingness to recognize or adapt to
the new realities of the marketplace, and environmentalists, a threat recently demonstrated by
the draft Executive Order which would have banned wood pallets from use by the Federal
Government.
A Clinton Administration Executive Order entitled "Federal Recycling, Acquisition and Use of
Environmentally Preferable Products and Services" requires government agencies and those
doing business under government contract to begin using "environmentally preferable" products
made from recycled materials.
Paul Evanko, principal and vice president, St. Orge Company, York, PA, stated, "Pallets must
adhere to a high quality standard". "Poor quality pallets carry a hidden cost beyond the price
paid and customers should be encouraged to purchase the best quality they can". "Alternative
materials including plastic, recycled and composite materials will emerge and pallet users will
seek these pallets because of limited storage space, efficient handling weight and full four-way
entry," Evanko contends. "Wood will still be predominant," Evanko said, "but there is a niche
for alternative materials in the distribution flows".
The Earth Works Group, Berkeley, CA states; "U.S. companies could be spending up to $1.75
billion dollars a year just to throw wooden pallets into landfills". The Pallet Container Research
Laboratory at Virginia Polytechnic Institute and State University, Blacksburg, VA states
"calculations show the annual wooden pallet production in the U.S. is using in excess of 3.5
million trees".
4.0 Market Analysis Summary
Herbal products have grown in popularity with c onsumers over the past ten years. The herbal
products industry exceeded $4.3 billion in sales last year. Where once a customer would have
to go to a spec iality shop to purchase herbal products, now those same products are available
at the loc al supermarket. The demand has created a cottage industry of supplying herbal
products to companies who then market these products under their own brand name.
Currently, the industry can be divided into two segments:
Herbal Health Products
Herbal Beauty Products.
4.1 Market Segmentation
Africa Health Living will focus on two target companies:

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Herbal Heath Products: The Nairobi is home to a number of small-to-medium size

herbal heath product companies such as PureHealth in Westland,

GHK Natural Product, Tiansi and GNLD with outlets in major towns. All of these companies buy
raw or finished product from third-party vendors. These companies generated sales in excess of
$40 million last year. Their products are sold in health and supermarket mainly in city centre.
Table: Market Analysis

Market Analysis
Potential Customers
Moringa Tea Bags
Moringa Powder
Moringa Oil
Moringa Seeds
Dried Hibiscus
Dried Mushrooms
Total

Year 1

Year 2

Year 3

Year 4

Year 5

2,000
1,000
500
2,000
1,000
1,000
7,500

2,140
1,030
515
2,200
1,080
1,070
8,035

2,290
1,061
530
2,420
1,166
1,145
8,612

2,450
1,093
546
2,662
1,259
1,225
9,235

2,622
1,126
562
2,928
1,360
1,311
9,909

Growth
7%
3%
3%
10%
8%
7%
7.21%

CAGR
7.00%
3.01%
2.97%
10.00%
7.99%
7.00%
7.21%

Chart: Market Analysis (Pie)

4.2 Target Market Segment Strategy

Herbal health products dominate sales and have been growing in popularity each year.

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There are few herbal health product companies that are competing for market share among
consumers. Most of these companies are regionally focused but 15% of these companies
distribute their products nationally. This is compared to only 2,000 herbal beauty product
companies. Most of these companies also only compete regionally though there are a handful
(4%) that dominate the national market. As sales grow in herbal beauty product, more new
companies will enter the marketplace.

Africa Health Living Products will focus on the small companies serving the Nairobi metropolitan
regional
market. Many of these smaller companies aggressively seek out new products that they can
add to their product line. The cost of manufacturing all these items themselves is prohibitive so
they contract with third party vendors to supply product.
4.3 Industry Analysis

4.3.1 Competition and Buying Patterns

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

5.2 Marketing Strategy

5.3 Sales Strategy

5.3.1 Sales Forecast

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Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

Year 4

Year 5

$432,389
$231,500
$21,690
$478,500
$95,500
$57,500
$1,317,079

$520,000
$280,000
$24,000
$520,000
$120,000
$80,000
$1,544,000

$700,000
$430,000
$27,300
$600,000
$130,000
$110,000
$1,997,300

$12,000,00
$500,000
$29,000
$800,000
$160,000
$150,000
$1,639,000

$1,600,000
$800,000
$33,000
$1,200,000
$200,000
$230,000
$4,063,000

Year 1
$131,800
$69,450
$0
$0
$0
$0
$201,250

Year 2
$156,000
$84,000
$0
$0
$0
$0
$240,000

Year 3
$210,000
$129,000
$0
$0
$0
$0
$339,000

Year 4
$360,000
$150,000
$0
$0
$0
$0
$510,000

Year 5
$480,000
$240,000
$0
$0
$0
$0
$720,000

Sales
Moringa Tea Bags
Moringa Powder
Moringa Oil
Moringa Seeds
Dried Hibiscus
Dried Mushrooms
Total Sales
Direct Cost of Sales
Moringa tea Bags
Moringa Powder
Moringa Oil
Moringa Seeds
Dried Hibiscus
Dried Mushroom
Subtotal Direct Cost of Sales

Chart: Sales Monthly

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Chart: Sales by Year

5.4 Milestones

Table: Milestones

Milestones
Milestone
Setup production unit
Establish inventory
Stockist & Sales Rep
Online Shop

Totals

Start Date
7/1/2013
10/1/2013
1/1/2014
3/1/2014

End Date
9/30/2013
11/1/2013
6/30/2014
4/30/2014

Budget
$40,000
$110,000
$50,000
$95,000

Manager
Bonface
ABC
ABC
Systech

Department
Production
Sales
Market
Web

$295,000

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Chart: Milestones

6.0 Management Summary

6.1 Personnel Plan

Table: Personnel

Personnel Plan
Production staff
Sales staff
Manager
Director
Managing Director
CEO
Total People
Total Payroll

Year 1

Year 2

Year 3

Year 4

Year 5

$360,000
$240,000
$480,000
$180,000
$840,000
$840,000
0

$360,000
$240,000
$480,000
$180,000
$840,000
$840,000
0

$396,000
$276,000
$516,000
$180,000
$840,000
$840,000
0

$396,000
$276,000
$516,000
$200,000
$960,000
$960,000
0

$435,600
$303,600
$567,600
$200,000
$960,000
$960,000
0

$2,940,000

$2,940,000

$3,048,000

$3,308,000

$3,426,800

7.0 Financial Plan

7.1 Start-up Funding

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Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$831,000
$660,000
$1,491,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$560,000
$100,000
$0
$100,000
$660,000

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$340,000
$0
$0
$340,000

Capital
Planned Investment
Owner
Investor
Additional Investment Requirement
Total Planned Investment

$100,000
$1,000,000
$51,000
$1,151,000

Loss at Start-up (Start-up Expenses)

Total Capital

($831,000)
$320,000

Total Capital and Liabilities

$660,000

Total Funding

$1,491,000

7.2 Important Assumptions

7.3 Break-even Analysis

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$478,341

Assumptions:
Average Percent Variable Cost

15%

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Estimated Monthly Fixed Cost

$405,250

Chart: Break-even Analysis

7.4 Projected Profit and Loss

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Year 4

Year 5

Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

$1,317,079
$201,250
$0
$201,250

$1,544,000
$240,000
$0
$240,000

$1,997,300
$339,000
$0
$339,000

$1,639,000
$510,000
$0
$510,000

$4,063,000
$720,000
$0
$720,000

Gross Margin
Gross Margin %

$1,115,829
84.72%

$1,304,000
84.46%

$1,658,300
83.03%

$1,129,000
68.88%

$3,343,000
82.28%

Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Other

$2,940,000
$580,000
$0
$696,000
$186,000
$20,000
$441,000
$0

$2,940,000
$580,000
$0
$696,000
$186,000
$20,000
$441,000
$0

$3,048,000
$580,000
$0
$696,000
$186,000
$20,000
$457,200
$0

$3,308,000
$650,000
$0
$696,000
$200,000
$20,000
$496,200
$0

$3,426,800
$650,000
$0
$696,000
$200,000
$20,000
$514,020
$0

Total Operating Expenses

$4,863,000

$4,863,000

$4,987,200

$5,370,200

$5,506,820

Expenses

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Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

($3,747,171)
($3,747,171)
$13,600
$0

($3,559,000)
($3,559,000)
$13,600
$0

($3,328,900)
($3,328,900)
$13,600
$0

($4,241,200)
($4,241,200)
$13,600
$0

($2,163,820)
($2,163,820)
$13,600
$0

Net Profit
Net Profit/Sales

($3,760,771)
-285.54%

($3,572,600)
-231.39%

($3,342,500)
-167.35%

($4,254,800)
-259.60%

($2,177,420)
-53.59%

Chart: Profit Monthly

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Chart: Profit Yearly

Chart: Gross Margin Monthly

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Chart: Gross Margin Yearly

7.5 Projected Cash Flow

Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

Year 4

Year 5

$1,317,079
$1,317,079

$1,544,000
$1,544,000

$1,997,300
$1,997,300

$1,639,000
$1,639,000

$4,063,000
$4,063,000

$210,733
$0
$360,000
$0
$0
$0
$0
$1,887,812

$247,040
$0
$0
$0
$0
$0
$0
$1,791,040

$319,568
$0
$0
$0
$0
$0
$0
$2,316,868

$262,240
$0
$0
$0
$0
$0
$0
$1,901,240

$650,080
$0
$0
$0
$0
$0
$0
$4,713,080

Year 1

Year 2

Year 3

Year 4

Year 5

$2,940,000
$1,936,873
$4,876,873

$2,940,000
$2,154,767
$5,094,767

$3,048,000
$2,313,783
$5,361,783

$3,308,000
$2,608,619
$5,916,619

$3,426,800
$2,837,171
$6,263,971

$210,733
$0

$247,040
$0

$319,568
$0

$262,240
$0

$650,080
$0

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current

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Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

$0
$0
$0
$0
$0
$5,087,605

$0
$0
$0
$0
$0
$5,341,807

$0
$0
$0
$0
$0
$5,681,351

$0
$0
$0
$0
$0
$6,178,859

$0
$0
$0
$0
$0
$6,914,051

($3,199,794)
($3,099,794)

($3,550,767)
($6,650,560)

($3,364,483)
($10,015,043)

($4,277,619)
($14,292,662)

($2,200,971)
($16,493,632)

Chart: Cash

7.6 Projected Balance Sheet

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

Year 4

Year 5

($3,099,794)
$25,500
$70,000
($3,004,294)

($6,650,560)
$47,932
$70,000
($6,532,629)

($10,015,043)
$80,191
$70,000
($9,864,852)

($14,292,662)
$128,492
$70,000
($14,094,169)

($16,493,632)
$170,228
$70,000
($16,253,404)

$400,000
$0
$400,000

$400,000
$0
$400,000

$400,000
$0
$400,000

$400,000
$0
$400,000

$400,000
$0
$400,000

Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets

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Total Assets

($2,604,294)

($6,132,629)

($9,464,852)

($13,694,169)

($15,853,404)

Year 1

Year 2

Year 3

Year 4

Year 5

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

$136,477
$0
$360,000
$496,477

$180,742
$0
$360,000
$540,742

$191,019
$0
$360,000
$551,019

$216,501
$0
$360,000
$576,501

$234,687
$0
$360,000
$594,687

Long-term Liabilities
Total Liabilities

$340,000
$836,477

$340,000
$880,742

$340,000
$891,019

$340,000
$916,501

$340,000
$934,687

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$1,151,000
($831,000)
($3,760,771)
($3,440,771)
($2,604,294)

$1,151,000
($4,591,771)
($3,572,600)
($7,013,371)
($6,132,629)

$1,151,000
($8,164,371)
($3,342,500)
($10,355,871)
($9,464,852)

$1,151,000
($11,506,871)
($4,254,800)
($14,610,671)
($13,694,169)

$1,151,000
($15,761,671)
($2,177,420)
($16,788,091)
($15,853,404)

Net Worth

($3,440,771)

($7,013,371)

($10,355,871)

($14,610,671)

($16,788,091)

Liabilities and Capital

Current Liabilities

7.7 Business Ratios

Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Year 4

Year 5

n.a.

17.23%

29.36%

-17.94%

147.90%

Industry
Profile
0.00%

Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

-0.98%
-2.69%
115.36%
-15.36%
100.00%

-0.78%
-1.14%
106.52%
-6.52%
100.00%

-0.85%
-0.74%
104.23%
-4.23%
100.00%

-0.94%
-0.51%
102.92%
-2.92%
100.00%

-1.07%
-0.44%
102.52%
-2.52%
100.00%

0.00%
100.00%
100.00%
0.00%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

-19.06%
-13.06%
-32.12%
132.12%

-8.82%
-5.54%
-14.36%
114.36%

-5.82%
-3.59%
-9.41%
109.41%

-4.21%
-2.48%
-6.69%
106.69%

-3.75%
-2.14%
-5.90%
105.90%

0.00%
0.00%
0.00%
100.00%

100.00%
84.72%
370.26%

100.00%
84.46%
315.84%

100.00%
83.03%
250.38%

100.00%
68.88%
328.48%

100.00%
82.28%
135.87%

100.00%
0.00%
0.00%

44.04%
-284.51%

37.56%
-230.51%

29.04%
-166.67%

39.66%
-258.77%

16.00%
-53.26%

0.00%
0.00%

-6.05
-6.10
-32.12%
109.30%
144.41%

-12.08
-12.17
-14.36%
50.94%
58.26%

-17.90
-18.05
-9.41%
32.28%
35.31%

-24.45
-24.67
-6.69%
29.12%
31.07%

-27.33
-27.62
-5.90%
12.97%
13.73%

0.00
0.00
0.00%
0.00%
0.00%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative
Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Year 4

Year 5

Net Profit Margin

Return on Equity

-285.54%
0.00%

-231.39%
0.00%

-167.35%
0.00%

-259.60%
0.00%

-53.59%
0.00%

n.a
n.a

Page 17

My Business Plan

Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover

5.97
15.19
27
0.00

6.54
12.17
26
0.00

5.29
12.17
29
0.00

4.89
12.17
28
0.00

4.82
12.17
29
0.00

n.a
n.a
n.a
n.a

0.00
0.59

0.00
0.61

0.00
0.62

0.00
0.63

0.00
0.64

n.a
n.a

($3,500,771)
-275.53

($7,073,371)
-261.69

($10,415,871)
-244.77

($14,670,671)
-311.85

($16,848,091)
-159.10

n.a
n.a

-1.98
0%
-6.10
0.00
0.00

-3.97
0%
-12.17
0.00
0.00

-4.74
0%
-18.05
0.00
0.00

-8.36
0%
-24.67
0.00
0.00

-3.90
0%
-27.62
0.00
0.00

n.a
n.a
n.a
n.a
n.a

Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

7.8 Long-term Plan

Page 18

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Moringa Tea Bags

$20,000

$23,000

$25,000

$48,571

$34,000

$28,571

$39,000

$24,541

$45,000

$47,000

$47,706

$50,000

Moringa Powder

$10,000

$11,000

$12,000

$14,000

$14,500

$15,000

$17,000

$19,000

$24,000

$29,000

$31,000

$35,000

$1,200

$1,200

$1,430

$1,480

$1,550

$1,600

$1,650

$1,800

$1,980

$2,300

$2,500

$3,000

Moringa Seeds

$20,000

$23,000

$24,000

$30,000

$36,000

$40,000

$45,000

$46,000

$49,000

$51,000

$56,000

$58,500

Dried Hibiscus

$7,000

$7,200

$7,400

$7,500

$7,500

$7,800

$7,900

$8,200

$8,300

$8,600

$8,900

$9,200

Dried Mushrooms

$2,100

$2,500

$2,700

$3,000

$3,400

$3,500

$4,000

$4,800

$5,500

$7,000

$9,000

$10,000

Total Sales

$60,300

$67,900

$72,530

$104,551

$96,950

$96,471

$114,550

$104,341

$133,780

$144,900

$155,106

$165,700

Direct Cost of Sales

Sales

Moringa Oil

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Moringa tea Bags

$8,000

$6,900

$7,500

$14,570

$10,200

$8,570

$11,700

$7,360

$13,500

$14,100

$14,400

$15,000

Moringa Powder

$3,000

$3,300

$3,600

$4,200

$4,350

$4,500

$5,100

$5,700

$7,200

$8,700

$9,300

$10,500

Moringa Oil

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Moringa Seeds

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dried Hibiscus

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dried Mushroom

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$11,000

$10,200

$11,100

$18,770

$14,550

$13,070

$16,800

$13,060

$20,700

$22,800

$23,700

$25,500

Subtotal Direct Cost of Sales

Page 1

Appendix
Table: Personnel

Personnel Plan
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Production staff

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

Sales staff

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

Manager

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

Director

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

$15,000

Managing Director

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

CEO

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$70,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

Total People
Total Payroll

Page 2

Appendix
Table: Profit and Loss

Pro Forma Profit and Loss

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Sales

$60,300

$67,900

$72,530

$104,551

$96,950

$96,471

$114,550

$104,341

$133,780

$144,900

$155,106

$165,700

Direct Cost of Sales

$11,000

$10,200

$11,100

$18,770

$14,550

$13,070

$16,800

$13,060

$20,700

$22,800

$23,700

$25,500

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales

$11,000

$10,200

$11,100

$18,770

$14,550

$13,070

$16,800

$13,060

$20,700

$22,800

$23,700

$25,500

Gross Margin

$49,300

$57,700

$61,430

$85,781

$82,400

$83,401

$97,750

$91,281

$113,080

$122,100

$131,406

$140,200

Gross Margin %

81.76%

84.98%

84.70%

82.05%

84.99%

86.45%

85.33%

87.48%

84.53%

84.27%

84.72%

84.61%

Payroll

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

Marketing/Promotion

$360,000

$0

$0

$40,000

$0

$70,000

$0

$40,000

$0

$70,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Rent

$58,000

$58,000

$58,000

$58,000

$58,000

$58,000

$58,000

$58,000

$58,000

$58,000

$58,000

$58,000

Utilities

$13,000

$13,000

$13,000

$13,000

$13,000

$13,000

$18,000

$18,000

$18,000

$18,000

$18,000

$18,000

Insurance

$20,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$36,750
$0

$732,750

$352,750

$352,750

$392,750

$352,750

$422,750

$357,750

$397,750

$357,750

$427,750

$357,750

$357,750

Profit Before Interest and Taxes

($683,450)

($295,050)

($291,320)

($306,969)

($270,350)

($339,349)

($260,000)

($306,469)

($244,670)

($305,650)

($226,344)

($217,550)

EBITDA

($683,450)

($295,050)

($291,320)

($306,969)

($270,350)

($339,349)

($260,000)

($306,469)

($244,670)

($305,650)

($226,344)

($217,550)

$1,133

$1,133

$1,133

$1,133

$1,133

$1,133

$1,133

$1,133

$1,133

$1,133

$1,133

$1,133

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Net Profit

($684,583)

($296,183)

($292,453)

($308,102)

($271,483)

($340,482)

($261,133)

($307,602)

($245,803)

($306,783)

($227,477)

($218,683)

Net Profit/Sales

-1135.30%

-436.21%

-403.22%

-294.69%

-280.02%

-352.94%

-227.96%

-294.80%

-183.74%

-211.72%

-146.66%

-131.98%

Other Costs of Sales

Expenses

Depreciation

Payroll Taxes
Other
Total Operating Expenses

Interest Expense
Taxes Incurred

15%

Page 3

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Sales

$60,300

$67,900

$72,530

$104,551

$96,950

$96,471

$114,550

$104,341

$133,780

$144,900

$155,106

$165,700

Subtotal Cash from Operations

$60,300

$67,900

$72,530

$104,551

$96,950

$96,471

$114,550

$104,341

$133,780

$144,900

$155,106

$165,700

$9,648
$0

$10,864
$0

$11,605
$0

$16,728
$0

$15,512
$0

$15,435
$0

$18,328
$0

$16,695
$0

$21,405
$0

$23,184
$0

$24,817
$0

$26,512
$0

New Other Liabilities (interest-free)

$0

$0

$0

$360,000

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Received

$69,948

$78,764

$84,135

$481,279

$112,462

$111,906

$132,878

$121,036

$155,185

$168,084

$179,923

$192,212

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$245,000

$16,296

$476,217

$108,883

$110,217

$147,550

$111,275

$179,102

$135,373

$162,504

$144,442

$206,440

$138,573

$261,296

$721,217

$353,883

$355,217

$392,550

$356,275

$424,102

$380,373

$407,504

$389,442

$451,440

$383,573

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

16.00%

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out

$9,648

$10,864

$11,605

$16,728

$15,512

$15,435

$18,328

$16,695

$21,405

$23,184

$24,817

$26,512

Principal Repayment of Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$270,944

$732,081

$365,488

$371,945

$408,062

$371,711

$442,430

$397,068

$428,909

$412,626

$476,257

$410,085

Net Cash Flow

($200,996)

($653,317)

($281,353)

$109,334

($295,600)

($259,804)

($309,552)

($276,032)

($273,724)

($244,542)

($296,334)

($217,873)

Cash Balance

($100,996)

($754,313)

($1,035,666)

($926,332)

($1,221,932)

($1,481,736)

($1,791,288)

($2,067,320)

($2,341,044)

($2,585,586)

($2,881,920)

($3,099,794)

Subtotal Cash Spent

Page 4

Appendix

Page 5

Appendix
Table: Balance Sheet

Pro Forma Balance Sheet

Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$100,000
$90,000
$70,000
$260,000

($100,996)
$79,000
$70,000
$48,004

($754,313)
$68,800
$70,000
($615,513)

($1,035,666)
$57,700
$70,000
($907,966)

($926,332)
$38,930
$70,000
($817,402)

($1,221,932)
$24,380
$70,000
($1,127,552)

($1,481,736)
$13,070
$70,000
($1,398,666)

($1,791,288)
$16,800
$70,000
($1,704,488)

($2,067,320)
$13,060
$70,000
($1,984,260)

($2,341,044)
$20,700
$70,000
($2,250,344)

($2,585,586)
$22,800
$70,000
($2,492,786)

($2,881,920)
$23,700
$70,000
($2,788,220)

($3,099,794)
$25,500
$70,000
($3,004,294)

$400,000
$0
$400,000
$660,000

$400,000
$0
$400,000
$448,004

$400,000
$0
$400,000
($215,513)

$400,000
$0
$400,000
($507,966)

$400,000
$0
$400,000
($417,402)

$400,000
$0
$400,000
($727,552)

$400,000
$0
$400,000
($998,666)

$400,000
$0
$400,000
($1,304,488)

$400,000
$0
$400,000
($1,584,260)

$400,000
$0
$400,000
($1,850,344)

$400,000
$0
$400,000
($2,092,786)

$400,000
$0
$400,000
($2,388,220)

$400,000
$0
$400,000
($2,604,294)

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0
$0
$0
$0

$472,587
$0
$0
$472,587

$105,254
$0
$0
$105,254

$105,254
$0
$0
$105,254

$143,921
$0
$360,000
$503,921

$105,254
$0
$360,000
$465,254

$174,622
$0
$360,000
$534,622

$129,933
$0
$360,000
$489,933

$157,763
$0
$360,000
$517,763

$137,483
$0
$360,000
$497,483

$201,824
$0
$360,000
$561,824

$133,867
$0
$360,000
$493,867

$136,477
$0
$360,000
$496,477

$340,000
$340,000

$340,000
$812,587

$340,000
$445,254

$340,000
$445,254

$340,000
$843,921

$340,000
$805,254

$340,000
$874,622

$340,000
$829,933

$340,000
$857,763

$340,000
$837,483

$340,000
$901,824

$340,000
$833,867

$340,000
$836,477

$1,151,000
($831,000)
$0
$320,000
$660,000

$1,151,000
($831,000)
($684,583)
($364,583)
$448,004

$1,151,000
($831,000)
($980,767)
($660,767)
($215,513)

$1,151,000
($831,000)
($1,273,220)
($953,220)
($507,966)

$1,151,000
($831,000)
($1,581,322)
($1,261,322)
($417,402)

$1,151,000
($831,000)
($1,852,806)
($1,532,806)
($727,552)

$1,151,000
($831,000)
($2,193,288)
($1,873,288)
($998,666)

$1,151,000
($831,000)
($2,454,421)
($2,134,421)
($1,304,488)

$1,151,000
($831,000)
($2,762,024)
($2,442,024)
($1,584,260)

$1,151,000
($831,000)
($3,007,827)
($2,687,827)
($1,850,344)

$1,151,000
($831,000)
($3,314,610)
($2,994,610)
($2,092,786)

$1,151,000
($831,000)
($3,542,088)
($3,222,088)
($2,388,220)

$1,151,000
($831,000)
($3,760,771)
($3,440,771)
($2,604,294)

$320,000

($364,583)

($660,767)

($953,220)

($1,261,322)

($1,532,806)

($1,873,288)

($2,134,421)

($2,442,024)

($2,687,827)

($2,994,610)

($3,222,088)

($3,440,771)

Starting Balances

Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

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