BUSINESS PLAN

PRESENTED BY-GROUP:3
ATUL KUMAR KARN ----------------------------

Q1703A19

DEEPIKA BHAGAT ------------------------------

Q1703A13

DEEPKAMAL KAUR -----------------------------

Q1703A11

MANDEEP SINGH ------------------------------

Q1704A14

PRIYANKA GUPTA ------------------------------

Q1703A06

RAMANJEET KAUR ---------------------- -------

Q1703A14

CONTENTS

BUSINESS PLAN (GENERAL INFORMATION)

FEASIBILITY ANALYSIS
MARKETING PLAN
OPERATIONS PLAN
HR PLAN
FINANCIAL PLAN

SUMMARY
$25,000,000

$20,000,000

$15,000,000

Sales
Gross Margin

$10,000,000

Net Profit

$5,000,000

$0
FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

OBJECTIVES

Sales revenue should be 200 crores for the first year.

Establish long term relationships with suppliers of
tyres and seat makers.
Breakeven within two years of business.
Net profit margin should be 10% in first year and
increase it to 14% in second year achieving
operational efficiency

MISSION

To build a solar car, to benefit the mankind and

environment

with

long

term

sustainability,

transforming the way this world moves with

innovation.

VISION

To be numero uno solar car company, keeping

customers and environmental sustainability up front

OUR BUSINESS IDEA

SOLAR WALKING CAR

SOLAR WALKING CAR

PRODUCT NAME: SUNSHINE

TAGLINE:
Move freely and move free, Its Sunshines promise

SOLAR ENERGY AND OUR

IDEA

Developing a solar energy driven car

Solar walking cars combine technology typically

used

in

the

aerospace,

bicycle,

alternative

energy and automotive industries.

Solar cars are powered by the sun's energy. In fact,

51%

of

sunlight

atmosphere.

actually

enters

the

Earth's

PRODUCT SUMMARY

Suntech solar private limited will be selling two versions of

solar walking car with top speed of 40KMPH (A) and
50KMPS (B). The price will be 1 lac for A version and 1.3 lac
for B version.
Product Description
Solar car includes the following components along with
repective cost:
Solar Array and Power trackers : 40000
Batteries : 6000
Motor & Controller : 5000
Chassis, Seats and other components : 15000
Tires, Brakes and Hubs : 10000

PROPOSED DESIGN

LOGO AND SYMBOL

SUNSHINE represents the

product name and act as symbol.

The middle circle represents the

sun.

The orange and yellow colour of

the sun represents the sun rays.

FEASIBILITY ANALYSIS

WHAT MAKES OUR SOLAR

CAR FEASIBLE

Financial analysis (Profitable Business????)

1000 WATTS = 1.341 horsepower
Solar panel cost per watt is around $1 without
subsidy
cost is roughly 50000 INR of solar panel alone for
1000 watt (1.341)
International Manufacturers of solar panel
Shanghai Tongjian Shike Solar Energy Co., Ltd.
($0.80-1.20 per watt)
Jiaxing Feiya Lighting Electrical Co., Ltd. ($1.201.50 per watt)

Continued..

Other equipments..
Electrical grid (15000 INR)
Battery (5000)
Tyres, seats,body (30000)

BUSINESS PLAN(GENERAL
INFORMATION)

FUNCTIONAL AREA REPORTS

There are four essential elements required to test

whether or not a potential business idea is feasible:

Marketing

Operations

HR

Finance

MARKETING PLAN

Market research will involve

What is the product and/or service that is the basis

for the business?

Who is the customer likely to be?

What is the benefit of your product/service to the

customer?

How will the benefit be delivered?

CONTENTS

Product Features
STP of Market
Market Reasearch
SWOT analysis
Competitive Analysis
Marketing tools and strategy

PRODUCT FEATURES

Shape and design

Costing
Weight capacity

KEY ADVANTAGES
No running cost
No registration required
Reduced license requirements
Environment friendly
Using alternative source of energy
No pollution certificate and insurance liability

SEGMENTATION,TARGETING,POSITIONING
SEGMENTATION

TARGETING

Target customer: Middle class

Geographic segmentation

Weather

Differentiated targeting

Location

Target-market: rural and semi-

Demographic segmentation

urban customers.
POSITIONING

Income based(middle class)

Small House hold car

Substitute

Behavioral segmentation

SWOT ANALYSIS
Strengths
Eco friendly
No running cost
Green project
Weaknesses
Cloudy days (can be overcome by electrical additions)
Top speed 30-50 kms/h (two versions)
Max run 30-40 kms after one charging
Opportunities
First mover
High demand for eco friendly projects
Subsidized solar panels
Threat
Easily imitable.

MAIN COMPETITORS IN
SOLAR CAR INDUSTRY

They are not exactly the competitors because they

are developing racing and high speed solar cars. But
we are targeting on the solar walking car which is
quite different from them:
SUNRAYCER
ALPHA CENTAURI
AURORA
ONGOING SOLAR PROJECTS

BUSINESS STRATEGY

BLUE OCEAN STRATEGY

A NEW PRODUCT IN EXISTING MARKET

DRIVEN BY INNOVATION AND PRODUCT LEADERSHIP

MEDIA TO BE USED

NEWSPAPER ADVERTISEMENT
BUSINESS MAGAZINES
TV AD
RADIO AD

MARKETING TOOLS
LAUNCHING A NEW BUSINESS OF SOLAR WALKING CAR:
PRE-LAUNCH:

ROAD SHOW

LAUNCH:

TEST DRIVE

POST-LAUNCH: TV ADS,RADIO ADS,SOCIAL NETWORKING SITES

MARKETING MEDIUM:
The Hindu, Times of India
CNBC AWAAZ,STAR NEWS.

HR AND OPERATIONS PLAN

OF A SOLAR WALKING CAR
SUNSHINE

Operations plan

Market research is prerequisite

A hypothetical data is assumed (cant spend
money in real )
Operational plan will be based upon this
research for demand of such products in the
market
Pilot testing will be done with not full setup for
meeting the demand
Demand is assumed to be 2000 cars in first
month based on research.

Plant

Smaller setup
10 acre land near Jalandhar area
Cost will be around 5 crores
Suppliers are available here ( A similar
company speedways is operating here)
Assembly line, flooring, building and other
infrastructure will add around 8 crore ( based
upon speedways experience)

LEGAL AND ENVIRONMENTAL

FEASIBILITY

A manufacturing unit for solar car is legally possible

Rather, Indian government

environmental friendly venture

Company will get itself registered as private limited

company, raising funds from venture capitalist and
owners or directors fund

will

support

LEGAL CONSTRAINTS

No direct legal constraints can be there

Will be a private limited company under company act
1939
Board of directors will include founder members

Setting up a private limited company

Procedure and mechanics

INCORPORATION OF
COMPANY
Step 1 : Application For DIN

The concept of a Director Identification Number

(DIN) has been introduced for the first time with
the insertion of Sections 266A to 266G of
Companies (Amendment) Act, 2006.

We need to file eForm DIN-1 in order to obtain

DIN.

Step 2 : Acquire/ Register DSC

Acquire DSC -A licensed Certifying Authority (CA)
issues the digital signature.
Register DSC -Role check for Indian companies is to
be implemented in the MCA application.
Role check can be performed only after the
signatories have registered their Digital signature
certificates (DSC) with MCA.

Step 3 : New User Registration

To file an eForm or to avail any paid service on MCA
portal, we are first required to register ourselves as a
user in the relevant user category, such as registered
and business user.
Step 4 : Incorporate a Company
Apply for the name of the company[ Suntech autos
Pvt. Ltd.] to be registered by filing Form1A for the
same.

DOCUMENT REQUIRED:

Form 1 : Application or declaration for incorporation

of a company
Form 32 : Particulars of appointment of managing
director, directors, manager and secretary and the
changes among them or consent of candidate to act as
a managing director or director or manager or
secretary of a company and/ or undertaking to take
and pay for qualification shares.
Once the form has been approved by the concerned
official of the Ministry, you will receive an email
regarding the same and the status of the form will get
changed to Approved.

ROC OFFICE:
PUNJAB, CHANDIGARH & HIMACHAL
PRADESH
Dr. RAJ SINGH
CORPORATE BHAWAN,PLOT NO.4 B,
SECTOR 27 B,MADHYA MARG,
CHANDIGARH - 160019
PHONE: 0172-2639415,2639416
FAX: 0172-2639416
roc.chandigarh@mca.gov.in

Other legal compliance:

Validity period of the Name approved:
With effect from 24th July, 2011,the approved
name is valid for a period of 60 days from the
date of approval.If,the proposed company is
not incorporated within such period,the name
shall be lapsed and will be available for other
applicants.

Minimum number of directors required to

form a company:Minimum no. of directors for Private Limited
Company: Two
Minimum Paid-up Capital at the time of
registration :For Private Limited Company: Rs.1,00,000/-

Fees

Other Important aspects

Banker to the firm (for credit period and short

term loan advancements)
Layout will include a assembly line
It will include various component to be
mounted
All these component will form the part of
engineers
Skilled workers and supervisor will work at this
functional part

Board of directors

Raman
Grewal
Executive
director
PSR : 10%

Deepika
Bhagat
Chief
operatin
g officer
(COO)
PSR :
10%

Priyanka
Gupta
Marketing
Head
PSR :
10%

Deepkamal
Sachdeva
HR director
PSR : 10%

Mandeep
Bhullar
Managing
director
and CFO
PSR :
10%

Atul Kumar
Karn
Chief
executive
officer
(CEO)
PSR : 10%

BOD continued.

Private company: ownership lies with BOD

Fund raising : venture capitalist, loans
advanced by directors, loans from banks
PSR = profit sharing ratio
60% with owners
35% with venture capitalist

COMPONENTS INCLUDE

1. Solar Array and Power trackers

2. Batteries
3. Motor & Controller
4. Instrumentation
5. Steering and suspension
6. Brakes
7. Tires and Hubs

1. Controller. 2. fans 3. power cable

4. AC motor 5. DC power cable

Cost of production per car

S.NO

COMPONENT

COST( in INR)

Solar Array and Power trackers

20000

Batteries

6000

Motor & Controller

10000

Instrumentation (chassis)

20000

Steering and suspension

10000

Brakes , Tires and Hubs

6000

Other components

4000

MOTORS AND
CONTROLLERS

Choosing a motor depend on how much power it has.

Controllers usually drive a particular motor. We will use the

brushless motors because these will increase the efficiency of

motor upto94-99 percent.

STEERING AND
SUSPENSION

Front wheel steering as it tends to be more stable and safer.

In order to make proper suspension it will be soft enough to protect the

car and solar array from unnecessary jolts and firm enough to provide a
stable ride

DESIGN DIMENSIONS

Following are the design dimensions we set for

SUNSHINE:
Position Length (LTR) or Height from the ground
Entire frame 5.8 m
Wheels 25 cm diameter, 10 cm thickness
Driver cabin height 90 cm
Full height 1.48m
Tail length 3.4m

HR plan

Will require a full fledge human resource even

during initial setup
Organizational hierarchy is given on next slide

ORGANIZATIONAL CHART
CEO &
PRESIDENT

VICE
PRESIDENT

EXECUTIVE
DIRECTOR

PRODUCTION
DIRECTOR

FACTORY GM

R&D CENTER

OPERATIONS
TEAM

QUALITY
ASSURANCE
TEAM

PRODUCTION
TEAM

SALES
DIRECTOR

MAINTAINENCE
TEAM

SALES DEPTT

PURCHASING
DEPTT

ACCOUNTS
DEPTT

JOB DESCRIPTION
JOB TITLE

QUALIFICATI
ON

KEY SKILLS
REQUIRED

EXPERIENC
E
REQUIRED

SALARY
OFFERED

CEO/
PRESIDENT

MBA executive Leadership,

10-15 years
Team building,
project
management,
communicatio
n skills

Rs. 1,00,000

VICE
PRESIDENT

MBA executive Management

skills in
requisites,
leadership,
communicatio
n skills

8-10 years

80,000

EXECUTIVE
DIRECTOR

MBA executive Management

of HR deptt,
Quality and
Operations

5-8 years

65,000

JOB TITLE

QUALIFICATI
ON

KEY
SKILLS
REQUIRED

EXPERIENC SALARY
E REQUIRED OFFERED

FACTORY
GM

MBA

Training,
Selecting,
Motivating
plant
supervisory

4-5 years

50,000

PRODUCTIO MBA
N DIRECTOR (operations)

Practical
knowledge
of working
with
production
team

4-5 years

50,000

SALES
DIRECTOR

Efficient
managemen
t of sales
team,
purchasing
& accounts

4-5 years

50,000

MBA
(marketing)

LEAVE POLICY

Earned leave: 18 per year (for permanent

employee)
Casual leave: 12 per year (@1 per month)
Sick or medical leave:
Temporary employee : 10 days (can extend
upto two weeks
Permanent employee : 15-18 days ( max 3
weeks in continuum)

FINANCIAL PLAN

INITIAL INVESTMENT
Start-up
Requirements
Start-up Expenses
Legal
Insurance
Rent
Computer
Other
Total Start-up Expenses

$5,000
$10,000
$5,000
$10,000
$100
$30,100

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

$200,000
$30,000
$10,000
$2,000,000
$2,240,000

Total Requirements

$2,270,100

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Expenses

Assets

Inv estment

Loans

Sales forecast
Sales Forecast
Unit Sales
Version A
Version B
Total Unit Sales
Unit Prices
Version A
Version B
Sales
Version A
Version B
Total Sales

Direct Unit Costs

Version A
Version B
Direct Cost of Sales
Version A
Version B
Subtotal Direct Cost of Sales

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

2,000
1,500
3,500

2,900
2,200
5,100

5,000
3,000
8,000

6,500
3,500
10,000

7,000
4,000
11,000

FY 2013
$2,000.00
$2,600.00

FY 2014
$2,000.00
$2,600.00

FY 2015
$2,000.00
$2,000.00

FY 2016
$2,000.00
$2,000.00

FY 2017
$2,000.00
$2,000.00

$4,000,00
0
$3,900,00
0
$7,900,00
0

$5,800,00
0
$5,720,00
0
$11,520,0
00

$10,000,0
00
$6,000,00
0
$16,000,0
00

$13,000,0
00
$7,000,00
0
$20,000,0
00

$14,000,0
00
$8,000,00
0
$22,000,0
00

FY 2013
$1,300.00
$1,560.00

FY 2014
$1,300.00
$1,560.00

FY 2015
$1,300.00
$1,200.00

FY 2016
$1,300.00
$1,200.00

FY 2017
$1,300.00
$1,200.00

$2,600,00
0
$2,340,00
0
$4,940,00
0

$3,770,00
0
$3,432,00
0
$7,202,00
0

$6,500,00
0
$3,600,00
0
$10,100,0
00

$8,450,00
0
$4,200,00
0
$12,650,0
00

$9,100,00
0
$4,800,00
0
$13,900,0
00

Yearly Sales
$25,000,000

$20,000,000

$15,000,000

Version A
Version B

$10,000,000

$5,000,000

$0
FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Key financial Indicators

3.0
2.5
2.0
1.5
1.0

FY 2013
FY 2014
FY 2015

0.5
0.0

FY 2016
FY 2017

Break Even Analysis

Break-even Analysis

Monthly Units Break-even

Monthly Revenue Break-even

32
$72,506

Assumptions:
Average Per-Unit Revenue

$2,257.14

Average Per-Unit Variable Cost

$1,411.43

Estimated Monthly Fixed Cost

$27,167

BE continued
$20,000
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
($25,000)
($30,000)
0

10

20

30

Monthly break-ev en point

Break-ev en point = where line intersects with 0

40

50

Pro Forma Profit and Loss

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Sales

$7,900,000

$11,520,000

$16,000,000

$20,000,000

$22,000,000

Direct Costs of Goods

$4,940,000

$7,202,000

$10,100,000

$12,650,000

$13,900,000

$115,000

$128,000

$141,000

$152,000

$154,000

$20,000

$22,000

$23,000

$25,000

$30,000

------------

------------

------------

------------

------------

Cost of Goods Sold

$5,075,000

$7,352,000

$10,264,000

$12,827,000

$14,084,000

Gross Margin

$2,825,000

$4,168,000

$5,736,000

$7,173,000

$7,916,000

35.76%

36.18%

35.85%

35.87%

35.98%

$130,000

$160,000

$180,000

$195,000

$210,000

Advertising/Promotion

$20,000

$22,000

$25,000

$28,000

$30,000

Other Sales and Marketing Expenses

$30,000

$35,000

$37,000

$40,000

$45,000

------------

------------

------------

------------

------------

$180,000

$217,000

$242,000

$263,000

$285,000

2.28%

1.88%

1.51%

1.32%

1.30%

$100,000

$120,000

$130,000

$140,000

$150,000

Marketing/Promotion

$3,000

$3,200

$3,600

$3,700

$4,000

Depreciation

$5,000

$6,000

$7,000

$8,000

$9,000

$25,000

$30,000

$35,000

$40,000

$45,000

$7,000

$7,500

$8,000

$9,000

$10,000

------------

------------

------------

------------

------------

$140,000

$166,700

$183,600

$200,700

$218,000

1.77%

1.45%

1.15%

1.00%

0.99%

Production Payroll
Other Costs of Goods

Gross Margin %

Operating Expenses

Sales and Marketing Expenses

Sales and Marketing Payroll

Total Sales and Marketing Expenses

Sales and Marketing %

General and Administrative Expenses

General and Administrative Payroll

Rent
Other General and Administrative Expenses

Total General and Administrative Expenses

General and Administrative %

Other Expenses:
Other Payroll
Consultants
Other Expenses

$0

$0

$0

$0

$0

$5,000

$6,000

$7,000

$8,000

$9,000

$1,000

$1,200

$1,500

$1,700

$1,800

------------

------------

------------

------------

------------

Total Other Expenses

$6,000

$7,200

$8,500

$9,700

$10,800

Other %

0.08%

0.06%

0.05%

0.05%

0.05%

------------

------------

------------

------------

------------

$326,000

$390,900

$434,100

$473,400

$513,800

Profit Before Interest and Taxes

$2,499,000

$3,777,100

$5,301,900

$6,699,600

$7,402,200

EBITDA

$7,411,200

Total Operating Expenses

$2,504,000

$3,783,100

$5,308,900

$6,707,600

Interest Expense

$221,510

$221,510

$221,510

$221,510

$221,510

Taxes Incurred

$683,247

$1,066,677

$1,524,117

$1,943,427

$2,154,207

$1,594,243

$2,488,913

$3,556,273

$4,534,663

$5,026,483

20.18%

21.61%

22.23%

22.67%

22.85%

Net Profit
Net Profit/Sales

Profit Yearly
$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0
FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Gross Margin Yearly

$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Projected Cash Flow

Pro Forma Cash Flow
FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Cash from Operations

Cash Sales

$5,925,000

$8,640,000

$12,000,000

$15,000,000

$16,500,000

Cash from Receivables

Subtotal Cash from Operations

$1,651,319
$7,576,319

$2,731,681
$11,371,681

$3,816,444
$15,816,444

$4,836,111
$19,836,111

$5,418,056
$21,918,056

$7,576,319

$11,371,681

$15,816,444

$19,836,111

$21,918,056

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Cash Spending
Bill Payments

$345,000
$5,907,654

$408,000
$8,591,202

$451,000
$11,916,404

$487,000
$14,937,998

$514,000
$16,442,714

Subtotal Spent on Operations

$6,252,654

$8,999,202

$12,367,404

$15,424,998

$16,956,714

Subtotal Cash Spent

$6,252,654

$8,999,202

$12,367,404

$15,424,998

$16,956,714

Net Cash Flow

Cash Balance

$1,323,665
$1,523,665

$2,372,478
$3,896,144

$3,449,041
$7,345,184

$4,411,113
$11,756,297

$4,961,342
$16,717,639

Cash Received

Additional Cash Received

Subtotal Cash Received

Expenditures
Expenditures from Operations

Pro Forma Balance Sheet

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

$11,756,297

$16,717,639

Assets
Current Assets
Cash

Projected Balance
$1,523,665

$3,896,144

$7,345,184

Accounts Receivable

$323,681

$472,000

$655,556

$819,444

$901,389

Inventory

$411,667

$600,167

$841,667

$1,052,083

$1,157,292

Other Current Assets

$10,000

$10,000

$10,000

$10,000

$10,000

Total Current Assets

$2,269,012

$4,978,310

$8,852,407

$13,637,825

$18,786,320

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$5,000

$11,000

$18,000

$26,000

$35,000

Total Long-term Assets

$1,995,000

$1,989,000

$1,982,000

$1,974,000

$1,965,000

Total Assets

$4,264,012

$6,967,310

$10,834,407

$15,611,825

$20,751,320

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Accounts Payable

$479,769

$694,154

$1,004,978

$1,247,733

$1,360,745

Current Borrowing

$100,000

$100,000

$100,000

$100,000

$100,000

$5,000

$5,000

$5,000

$5,000

$5,000

$584,769

$799,154

$1,109,978

$1,352,733

$1,465,745

Long-term Liabilities

$2,115,100

$2,115,100

$2,115,100

$2,115,100

$2,115,100

Total Liabilities

$2,699,869

$2,914,254

$3,225,078

$3,467,833

$3,580,845

Long-term Assets
Long-term Assets
Accumulated Depreciation

Liabilities and Capital

Current Liabilities

Other Current Liabilities

Subtotal Current Liabilities

Paid-in Capital

$0

$0

$0

$0

$0

($30,100)

$1,564,143

$4,053,056

$7,609,329

$12,143,992

Earnings

$1,594,243

$2,488,913

$3,556,273

$4,534,663

$5,026,483

Total Capital

$1,564,143

$4,053,056

$7,609,329

$12,143,992

$17,170,475

Total Liabilities and Capital

$4,264,012

$6,967,310

$10,834,407

$15,611,825

$20,751,320

Net Worth

$1,564,143

$4,053,056

$7,609,329

$12,143,992

$17,170,475

Retained Earnings

Pro Forma Balance Sheet

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

$1,523,665

$3,896,144

$7,345,184

$11,756,297

$16,717,639

Accounts Receivable

$323,681

$472,000

$655,556

$819,444

$901,389

Inventory

$411,667

$600,167

$841,667

$1,052,083

$1,157,292

Assets
Current Assets
Cash

Other Current Assets

$10,000

$10,000

$10,000

$10,000

$10,000

Total Current Assets

$2,269,012

$4,978,310

$8,852,407

$13,637,825

$18,786,320

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$5,000

$11,000

$18,000

$26,000

$35,000

Total Long-term Assets

$1,995,000

$1,989,000

$1,982,000

$1,974,000

$1,965,000

Total Assets

$4,264,012

$6,967,310

$10,834,407

$15,611,825

$20,751,320

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Accounts Payable

$479,769

$694,154

$1,004,978

$1,247,733

$1,360,745

Current Borrowing

$100,000

$100,000

$100,000

$100,000

$100,000

$5,000

$5,000

$5,000

$5,000

$5,000

$584,769

$799,154

$1,109,978

$1,352,733

$1,465,745

Long-term Liabilities

$2,115,100

$2,115,100

$2,115,100

$2,115,100

$2,115,100

Total Liabilities

$2,699,869

$2,914,254

$3,225,078

$3,467,833

$3,580,845

Long-term Assets
Long-term Assets
Accumulated Depreciation

Liabilities and Capital

Current Liabilities

Other Current Liabilities

Subtotal Current Liabilities

Paid-in Capital

$0

$0

$0

$0

$0

($30,100)

$1,564,143

$4,053,056

$7,609,329

$12,143,992

Earnings

$1,594,243

$2,488,913

$3,556,273

$4,534,663

$5,026,483

Total Capital

$1,564,143

$4,053,056

$7,609,329

$12,143,992

$17,170,475

Total Liabilities and Capital

$4,264,012

$6,967,310

$10,834,407

$15,611,825

$20,751,320

Net Worth

$1,564,143

$4,053,056

$7,609,329

$12,143,992

$17,170,475

Retained Earnings

Investment Analysis
Start

Valuation

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Ending Valuation

$0

$0

$0

$0

$0

$17,591,000

Combination as Income
Stream

$0

$0

$0

$0

$0

$17,591,000

10

10

10

10

10

Calculated Earnings-based
Valuation

$15,940,000

$24,890,000

$35,560,000

$45,350,000

$50,260,000

Calculated Sales-based
Valuation

$15,800,000

$23,040,000

$32,000,000

$40,000,000

$44,000,000

Calculated Average Valuation

$15,870,000

$23,965,000

$33,780,000

$42,675,000

$47,130,000

Percent Equity Acquired

35%

Net Present Value (NPV)

$9,929,661

Assumptions
Discount Rate
Valuation Earnings Multiple

Valuation Sales Multiple

10.00%

Justation or Payback period

Payback

Projected Payback
Calculation
Investmen
t
Investment
Cash Returns by
Year

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

$100,000

$100,000

$100,000

$100,000

$100,00
0

$500,000

Combination as
Income Stream

($500,000)

$100,000

$100,000

$100,000

$100,000

$100,00
0

Cumulative Net
Cash Flow to
Investors

($500,000)

($400,000
)

($300,000
)

($200,000
)

($100,000
)

$0

Payback Period

5 years

Payback cont
$500,000
$400,000
$300,000
$200,000
$100,000
$0
($100,000)
($200,000)
($300,000)
($400,000)