Title Club Business Plan

Title Club Business Plan
Executive Summary
Who We Are
Title Club is a large retail book club specializing in the trades of used books while providing exclusive memberships for individuals looking to find a large quiet environment for their studies away from the noises from everyday life. Title Club offers dedicated study facilities that are designed to create a productive study environment that is designed to foster studying and imagination. Unlike the previous brick and mortar bookstores that failed to compete against large online retailers that sell books at discounted prices, Title Club offers a physical location for individuals to go and sell their unused books and literature without having to pay for shipping fees thus eliminating the large expenditures on brand new books and selling them at regular prices. Title Club buys and sells used books for marginal profits, and sells memberships that grant access to the exclusive study areas inside the store. Non-members may enter the store after paying a small entrance fee that will grant access to the study facilities for the day.
What We Sell
We sell memberships that grant access into our exclusively designed study environment with high speed wi-fi, access to thousands of used books, and no limits on facility usage. We also sell used books in various subjects as well as literature, fiction and non-fiction.
Who We Sell To
We tried very hard to imagine what our customers would look like, how they dressed, what they do on their free time, but we just couldn't do it. That's because there's no boundaries for who our customers are. We imagine our customers would include business entrepreneurs, students of all ages, mothers, fathers, etc. If you are someone who values learning and staying intellectually active, our products and services are right for you. We are your partners when it comes to productivity and we want to make
1 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
sure you do it in the right setting. We want to make our clubs as closest to that one stop shop for all your studying and literary needs. Because we are located in a busy retail area close to Mission College as well as various technological offices, we intend to capture as many people in this market of Santa Clara as possible to help spread the word and become the destination spot for motivated individuals.
Financial Summary
The financial plan for the Title Club outlines the expected financial planning for the next two years of operation. We are expecting our initial starting capital to be around $1,300,000 dollars that will cover the cost of renting a 7,500 square foot venue for the next two years, as well as covering the cost of all inventories, equipment, remodeling, salaries for 6 employees, as well as all other necessary operating expenses related to utilities. 2 years is a key number for our business because after two years of operation, the following years the book store will be able to cover it's own operational costs while paying back it's debts. If the bookstore sold only for the first year and simply just maintained the memberships sold from year one, the estimated time for paying back the initial capital would be 5 years. Of course this is based on a moderate forecast for sales but we intend to speed up the time for paying back this debt and bring up to profitability sooner than this and it will be sooner because through the collaborative efforts of our team and marketing strategy, we will sell more memberships in year 2 as well as all the other years forward. If we double the amount of memberships sold from year 1, we can pay back the initial capital in less than half the time. So we're betting on the fact that we can effectively sell our memberships aggressively and generate enough revenue from effective buying and selling used books to bring the company up to profitability and pay off all it's debts within the next 5 years.
Company
Company Overview
The idea for Title Club started when a local Bay Area college student named David Lee became frustrated with the failures of the large bookstore retailer Borders. For him, the environment had a great impact on his school performance and that's when it dawned on him that the environment has a much bigger role in productivity than anything else. It started with the entrance, the smell of books and calm atmosphere that was very welcoming and relaxed in nature. When sitting down with other customers by the coffee shop, people were studying all around him, motivating him to study and to read. When studying at home, he felt as though he had attention deficit disorder. The T.V. was right next to him. Video games were sitting on the shelves and the the bed just looked way to comfortable to be left alone. Like the distractions everywhere, his thoughts were likewise. He couldn't concentrate. The library was closed after 7 the latest. Borders was a safe haven for David who had many distractions at home. He liked how he could walk in and study amongst unknown colleagues and measure the time they would put into reading before taking breaks. When he finally did take a break, he would walk around the store and browse through books that interested him, sparking a passion for literature and highlighting the importance of staying an active reader. His performance at school improved drastically, and over time, he had a lot more words to put down for term papers. Title Club is a first step towards addressing the frustrations of the distractions around us. We are a start up bookstore whose goal is to redefine the traditional bookstore market by introducing the book club membership. We intend to open our first bookstore on 3000 Mission College Blvd. in the city of Santa Clara California. We have a great team of individuals who are working on this idea together as joint owners of the company.
Management Team
Our group members are experienced in a variety of different talents.
David Lee acts as the companies CEO and has worked in retail banking for Wells Fargo Bank for 4 and half years working as a Lobby Teller, Customer Service Representative, and Personal Banker with a heavy background in customer service and sales. He has learned what it means to develop relationships with clients and the value of doing so to build up the book of business. He intends to bring this experience and spirited nature to the Title Club and train his own sales team to build relationships with customers, gain referrals, and build up the clientele for club. Jim Qasimi is a Manager of Information Technology for Oak Grove School District with special management experience and technical background. He will act as COO and oversee many of the operations of the company as well as designing an eventual online book database capable of buying and selling books online. He will also be working with David to design a used book valuation tool used by the Literary Analysts of the Title Club to optimize book purchasing and selling. Henry Ko will act as the CFO of the company keeping track of the financial documents and financial health of the company giving valuable information to David for future financial planning and developments. Henry is an Entrepreneur major at San Jose State University and has traveled from South Korea fluent in speaking, writing, and reading. He also has prior work experience in finance and cultural background will also be useful in creating marketing plans for the large Korean community in the Santa Clara area.
Products and Services

Products and Services
Our Product is the monthly membership at $30. Service we are providing is exclusive membership to a book club that provides a The unique study environment and large selection of used books to purchase at a discount. Our cause is to provide a safe haven for individuals looking to escape from lifes distractions on productivity.
Competitors
Our bookstore and our environment has two different competitions. Our bookstore business is competing against online book stores like Amazon and Barnes and Nobles. We are competing against their low prices. This is why we are not selling brand new books. We create an added value for customers because we allow for face to face interaction. No sending products by mail. No waiting to sell or buy books. Our environment part of the business has competitors like Starbucks. Starbucks creates a relaxing environment for its customers who can come in, sit down with free wi-fi and listen to relaxing music. Were different because this is our main focus. Starbucks has noisy blenders and baristas working. We dont. We also have much more capacity to seat more individuals minus the noisy background.
Target Market
Market Overview
After researching the current bookstore and literary services industry, many physical bookstore locations have moved their businesses online. Barnes & Nobles and Borders are one such example with the exception of a few branches open in busier industrial areas to sustain profits at the retail branches. Many of the channels now exist online where users can view samples of digital copies of books before ordering and purchasing products. Amazon is another such example. However there are still stores that sell books from physical stores such as Half Price Bookstores. This is one store that directly purchases and trades books with customers and sells them back at a marginal profit, much like how University campus bookstores buy back textbooks from students and sell them back the next semester. The fact that giant bookstores such as Barnes and Nobles and Borders have moved their businesses online gives valuable information their business model was not working. It's hard to make book sales when people can just come in and read all day without paying. Half Price Bookstores can still stay profitable because unlike Barnes and Nobles or Borders, they don't primarily purchase books brand new from publishers allowing them to have a little more control on pricing and keeping costs low for consumers. Some of the valuable information I've gained from these researches is that to stay afloat in this type of industry, there has to be a differentiating factor that allows you to be different from other book retailers. One such way that I strongly feel would be effective, is that it shouldn't be just books that you are selling, it should be the added value such as the clean and studious environments where people can come in and study or read. To guarantee profits, you could sell memberships to consumers for a low enough price that they are willing to pay per month to be a member. 30 dollars a month for a membership that allows consumers to come into the used bookstore with a super clean and relaxing envinronment would be reasonable enough if one sees the value in the study environment. There may be many distractions at home in today's society and it is not hard to see that environment has a great impact on productivity. You can also come in to read books without purchasing if you don't want to, which unlike Border's, we are selling the value in the study environment while guaranteeing profits from window shoppers or students. If you don't want to purchase a membership, that's okay, you can simply pay 2 dollars for admission into the store where you can stay all day if you'd like.
Market Needs
Strategy and Implementation

Marketing Plan
Overview
Our marketing strategy is to differentiate ourselves while still satisfying customer needs. We are different because we're not just a bookstore, and we're not just a study lobby. We are firm believers that both are contingent to one another and necessary for satisfying the market needs we are redefining. We add the value in our memberships with a strong focus on creating our "Environment," which we intend to be unique and one of it's kind apart from libraries and coffee shops. We understand the competition exists in many forms, so we've changed the traditional bookstore model into buying and selling used books rather than buying wholesale; keeping costs low for our business and low for the customers. We also provide the convenience of face-to-face transactions that eliminate the need to purchase shipping items when customers are selling books. We are also redefining the roles of the representatives that work within our stores. We are planning to heavily train a sales team that will sell memberships and educate customers on the value of the services we provide. We will also work heavily with referrals by building lasting relationships with customers and networking through our local communities to make our unique presence and service known. We're the fresh new face of brick and mortar bookstores and we intend to show the online bookstore business that there's a new competition around.
Positioning
Our goal as a used book store club is quite simple. We not only want to provide a wide range of used books at competitive prices, we want to be the primary hangout destination for individuals who want to study in a relaxing and clean environment; all at one competitive flat price per month. Notice we mentioned individuals, not a particular person or demographic. We believe that individuals fitting a wide
demographic can find value in the services we provide. Anyone who wants to get away from the many distractions and obstacles from the office or from home can find our facilities to provide both a relaxing environment and studious, both in the design and surroundings. So the problem we are solving is clear, we want to take you away from the loud noise in our busy society and bring you to a place where knowledge is thriving all around you.
Pricing
Were hope to charge 30 dollars a month to have access to our environment. One time entry fees will be 2 dollars for an unlimited time in the store which cover the costs of maintaining a clean atmosphere and reading our books without having to purchase.
Promotion
We are going to use mouth to mouth method to advertise and also social internet sites such as Facebook and LinkedIn. A large portion of our promotion will be through a referral system where members can refer their friends and families for a permanent discount on their personal memberships. Our sales team will also be in charge of building relationships with clients to build up their book of business and encourage referrals from their customers.
Distribution
Our main distribution channel will be online. The reason why we say online as opposed to our actual retail bookstore is because when it comes to purchasing books, online purchasing is much more common in todays market. That is why there will be a separate team of employees dedicated to the buying, selling, and trading of books online which will be stored in our stores for people to view or purchase. A database will be built that will give a rating for books based on their demand. For instance, if a certain book is not bought or sold for a prolonged period of time, we will sell those books at an especially lower bargain price and the rating we assign for the book will be low, so the likelihood of our book analysts purchasing those books again will be lower.
Milestones
Our major goal is to bring in 5800 memberships in the first year. The second year, we will continue with the same goal to bring in another 5800 memberships. Another goal for our first year is to effectively build up our inventory of 1,000 books to 2,000 through effective buying and selling with traders. By year three, we hope to establish an online retail website that will effectively become one of our main distribution channels for customers to purchase online and our first competitive response to online retailers like Amazon.
Financial Plan
Sales Forecast
Sales Forecast Table
FY2014 Unit Sales
Club Membership Book Sales 1 Day Pass 5,796 3,600 1,700 11,592 3,600 1,700 17,388 3,600 1,700 23,184 3,600 1,700 28,980 3,600 1,700
FY2015
FY2016
FY2017
FY2018
Price Per Unit

Club Membership Book Sales 1 Day Pass $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5
Sales
Club Membership Book Sales 1 Day Pass $173,880 $46,800 $8,500 $347,760 $46,800 $8,500 $521,640 $46,800 $8,500 $695,520 $46,800 $8,500 $869,400 $46,800 $8,500
Total Sales Direct Cost Per Unit

Club Membership Book Sales 1 Day Pass
$229,180
$403,060
$576,940
$750,820
$924,700
$1 $10 $0
$1 $10 $0
$1 $10 $0
$1 $10 $0
$1 $10 $0
Direct Cost
Club Membership Book Sales $5,796 $36,000 $11,592 $36,000 $17,388 $36,000 $23,184 $36,000 $28,980 $36,000
1 Day Pass
$0
$0
$0
$0
$0
Total Direct Cost

Gross Margin
$41,796
$187,384
$47,592
$355,468
$53,388
$523,552
$59,184
$691,636
$64,980
$859,720
Gross Margin %
82%
88%
91%
92%
93%
Sales by Month
About the Sales Forecast

Our sales forecast was intended to anticipate major seasonal impacts on sales including many possible demands from students throughout the academic year. We are planning to sell aggressively from the months of September through November during the start of many academic years with approximately 583 memberships per month until December when the Holidays and Academic breaks may slow down the demand for sales at which point the goals decrease to 183 memberships. We then plan on speeding up towards the beginning of January and carry on the momentum through May until summer vacations start around June.
Personnel Plan
Personnel Table
FY2014
Club Service Representative Club Sales Representative Club Sales Representative Lobby Associate Club Sales Representative Literary Analyst $18,720 $27,040 $27,040 $20,800 $27,040 $24,960
FY2015
$18,720 $27,040 $27,040 $20,800 $27,040 $24,960
FY2016
$18,720 $27,040 $27,040 $20,800 $27,040 $24,960
FY2017
$18,720 $27,040 $27,040 $20,800 $27,040 $24,960
FY2018
$18,720 $27,040 $27,040 $20,800 $27,040 $24,960
Total
$145,600
$145,600
$145,600
$145,600
$145,600
About the Personnel Plan

There will be 4 different positions available in the bookstore. We will have full time Club Service Representative positions available whose primary job duties include addressing general customer service inquiries, performing transactions, and greeting club members at the front of the store or welcoming new customers. There will be a separate team of Club Sales Representatives in charge of selling memberships, giving tours of our facilities, and cross selling membership upgrades. There will be Lobby Associates whose primary job duties will include keeping the building clean, book shelves organized, and helping customers find titles. The fourth group of team members will be the Literary Analyst Group who will be in charge of buying, selling, trading books online and with customers face to face.
Budget
Budget Table
FY2014 Expenses
Salary Employee Related Expenses Rent New Inventory Utilities Office Supplies Internet & Website Book log (computer inventory system) Marketing & Promotion $145,600 $145,600 $145,600 $145,600 $145,600
FY2015
FY2016
FY2017
FY2018
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$756 $10,000
$756 $0
$756 $0
$756 $0
$756 $0
Total Expenses
$396,616
$386,616
$386,616
$386,616
$386,616
Expenses by Month
About the Budget Startup Costs
Cash Flow Assumptions

Cash Flow Assumptions
Cash Inflow
% of Sales on Credit Avg Collection Period (Days) 30% 30
Cash Outflow
% of Purchases on Credit Avg Payment Delay (Days) 30% 30
About the Cash Flow Assumptions
Loans and Investments

Loans and Investments Table
FY2014
Venture Capital Loan at 3.25% interest for 60 mos. Family Investments Equity investment Venture Capital Equity investment
FY2015
FY2016
FY2017
FY2018
$540,000
$0
$0
$0
$0
$260,000
$0
$0
$0
$0
$500,000
$0
$0
$0
$0
Total Amount Received
$1,300,000
$0
$0
$0
$0
Sources of Funds
Here's the breakdown of our starting capital acquisition. Family Investments from Jim, David, and Henry- $260,000 Commercial Bank Loan- $504,000 Seeking Venture Capital- $500,000 TOTAL- $1,300,000 We are looking for $500,000 from various venture capitalists who are passionate about our mission as much as we are. We are expecting to break-even at 3 years to begin generating profit. By year 5, we will have paid off the entire commercial bank loan.
Venture capitalists will become partners of our business and will be compensated 10% of the stores profits every year.
Use of Funds
Financial Statements
Profit and Loss Statement
FY2014 Income Direct Cost
Gross Margin
FY2015 $403,060 $47,592

$355,468
FY2016 $576,940 $53,388

$523,552
FY2017 $750,820 $59,184

$691,636
FY2018 $924,700 $64,980

$859,720
$229,180 $41,796
$187,384
Gross Margin % Expenses

Salary Employee Related Expenses Rent New Inventory Utilities Office Supplies Internet & Website Book log (computer inventory system) Marketing & Promotion
82%
88%
91%
92%
93%
$145,600
$145,600
$145,600
$145,600
$145,600
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$2,912 $225,000 $6,000 $3,600 $600 $2,148
$756 $10,000
$756 $0
$756 $0
$756 $0
$756 $0
Total Expenses Operating Income

Interest Incurred
$396,616
$386,616
$386,616
$386,616
$386,616
($209,232)
$14,841
($31,148)
$12,999
$136,936
$9,565
$305,020
$6,015
$473,104
$2,348
Depreciation and Amortization Income Taxes
$0 $0
$0 $0
$0 $25,474
$0 $59,801
$0 $94,151
Net Profit Net Profit/ Sales
($224,073) (98%)
($44,147) (11%)
$101,897 18%
$239,204 32%
$376,605 41%
Gross Margin by Year
Net Profit (or Loss) by Year
About the Profit and Loss Statement
Balance Sheet
Balance Sheet
As of Period's End
Cash Accounts Receivable Inventory
FY2014
$986,371 $3,942 $0
FY2015
$832,139 $10,075 $0
FY2016
$822,245 $14,420 $0
FY2017
$946,107 $18,765 $0
FY2018
$1,203,704 $23,110 $0
Total Current Assets

Long-Term Assets Accumulated Depreciation
$990,313
$0 $0
$842,214
$0 $0
$836,665
$0 $0
$964,872
$0 $0
$1,226,814
$0 $0
Total LongTerm Assets Total Assets

Accounts Payable Sales Taxes Payable Short-Term Debt
$0 $990,313
$6,938 $0 $0
$0 $842,214
$7,143 $0 $0
$0 $836,665
$7,288 $0 $0
$0 $964,872
$7,432 $0 $0
$0 $1,226,814
$7,577 $0 $0
Total Current Liabilities

Long-Term Debt
$6,938
$447,448
$7,143
$343,291
$7,288
$235,700
$7,432
$124,559
$7,577
$9,751
Total Liabilities
Paid-In Capital Retained Earnings
$454,386
$760,000 $0
$350,434
$760,000 ($224,073)
$242,988
$760,000 ($268,220)
$131,991
$760,000 ($166,323)
$17,328
$760,000 $72,881
Earnings
($224,073)
($44,147)
$101,897
$239,204
$376,605
Total Owner's Equity Total Liabilities & Equity
$535,927
$491,780
$593,677
$832,881
$1,209,486
$990,313
$842,214
$836,665
$964,872
$1,226,814
About the Balance Sheet
Cash Flow Statement

Cash Flow Statement
FY2014 Operations
Net Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable ($224,073) ($44,147) $101,897 $239,204 $376,605
FY2015
FY2016
FY2017
FY2018
$0
$0
$0
$0
$0
($3,942) $0
($6,133) $0
($4,345) $0
($4,345) $0
($4,345) $0
$6,938
$205
$145
$144
$145
$0
$0
$0
$0
$0
Net Cash Flow from Operations Investing & Financing

Assets Purchased Investments Received Increase in Short-Term Debt Increase in Long-Term Debt
($221,077)
($50,075)
$97,697
$235,003
$372,405
$0 $760,000
$0 $0
$0 $0
$0 $0
$0 $0
$0
$0
$0
$0
$0
$447,448
($104,157)
($107,591)
($111,141)
($114,808)
Net Cash Flow from Investing & Financing

Cash at Beginning of Period Net Increase in Cash
$1,207,448
$0 $986,371
($104,157)
$986,371 ($154,232)
($107,591)
$832,139 ($9,894)
($111,141)
$822,245 $123,862
($114,808)
$946,107 $257,597
Cash at End of Period
$986,371
$832,139
$822,245
$946,107
$1,203,704
Cash Flow by Month
Cash Flow by Year
About the Cash Flow Statement
Appendix
Sales Forecast
Sales Forecast Table (With Monthly Detail)
FY2014 Unit Sales
Club Membership Book Sales 1 Day Pass 483 300 150 583 300 150 583 300 150 583 300 150 183 300 100 183 300 100 583 300 150 633 300 150 633 300 150 583 300 150 483 300 150 283 300 150
Aug '13
Sep '13
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
Price Per Unit

Club Membership Book Sales 1 Day Pass $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5
Sales
Club Membership Book Sales 1 Day Pass $14,490 $3,900 $750 $17,490 $3,900 $750 $17,490 $3,900 $750 $17,490 $3,900 $750 $5,490 $3,900 $500 $5,490 $3,900 $500 $17,490 $3,900 $750 $18,990 $3,900 $750 $18,990 $3,900 $750 $17,490 $3,900 $750 $14,490 $3,900 $750 $8,490 $3,900 $750

Club Membership
$19,140
$22,140
$22,140
$22,140
$9,890
$9,890
$22,140
$23,640
$23,640
$22,140
$19,140
$13,140
$1
$1
$1
$1
$1
$1
$1
$1
$1
$1
$1
$1
Book Sales 1 Day Pass
$10 $0
$10 $0
$10 $0
$10 $0
$10 $0
$10 $0
$10 $0
$10 $0
$10 $0
$10 $0
$10 $0
$10 $0
Direct Cost
Club Membership Book Sales 1 Day Pass $483 $3,000 $0 $583 $3,000 $0 $583 $3,000 $0 $583 $3,000 $0 $183 $3,000 $0 $183 $3,000 $0 $583 $3,000 $0 $633 $3,000 $0 $633 $3,000 $0 $583 $3,000 $0 $483 $3,000 $0 $283 $3,000 $0
Total Direct Cost

Gross Margin
$3,483
$15,657
$3,583
$18,557
$3,583
$18,557
$3,583
$18,557
$3,183
$6,707
$3,183
$6,707
$3,583
$18,557
$3,633
$20,007
$3,633
$20,007
$3,583
$18,557
$3,483
$15,657
$3,283
$9,857
Gross Margin %
82%
84%
84%
84%
68%
68%
84%
85%
85%
84%
82%
75%
FY2014 Unit Sales

Club Membership Book Sales 1 Day Pass 5,796 3,600 1,700
FY2015
FY2016
FY2017
FY2018
11,592 3,600 1,700
17,388 3,600 1,700
23,184 3,600 1,700
28,980 3,600 1,700
Price Per Unit

Club Membership Book Sales 1 Day Pass $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5 $30 $13 $5
Sales
Club Membership Book Sales 1 Day Pass $173,880 $46,800 $8,500 $347,760 $46,800 $8,500 $521,640 $46,800 $8,500 $695,520 $46,800 $8,500 $869,400 $46,800 $8,500

Club Membership Book Sales 1 Day Pass
$229,180
$403,060
$576,940
$750,820
$924,700
$1 $10 $0
$1 $10 $0
$1 $10 $0
$1 $10 $0
$1 $10 $0
Direct Cost
Club Membership Book Sales 1 Day Pass $5,796 $36,000 $0 $11,592 $36,000 $0 $17,388 $36,000 $0 $23,184 $36,000 $0 $28,980 $36,000 $0
Total Direct Cost

Gross Margin
$41,796
$187,384
$47,592
$355,468
$53,388
$523,552
$59,184
$691,636
$64,980
$859,720
Gross Margin %
82%
88%
91%
92%
93%
Personnel Plan
Personnel Table (With Monthly Detail)
FY2014
Club Service Representative Club Sales Representative Club Sales Representative Lobby Associate Club Sales Representative Literary Analyst
Aug '13
$1,560 $2,253
Sep '13
$1,560 $2,253
Oct '13
$1,560 $2,253
Nov '13
$1,560 $2,253
Dec '13
$1,560 $2,253
Jan '14
$1,560 $2,253
Feb '14
$1,560 $2,253
Mar '14
$1,560 $2,253
Apr '14
$1,560 $2,254
May '14
$1,560 $2,254
Jun '14
$1,560 $2,254
Jul '14
$1,560 $2,254
$2,253 $1,733
$2,253 $1,733
$2,253 $1,733
$2,253 $1,733
$2,253 $1,733
$2,253 $1,733
$2,253 $1,733
$2,253 $1,733
$2,254 $1,734
$2,254 $1,734
$2,254 $1,734
$2,254 $1,734
$2,253 $2,080
$2,253 $2,080
$2,253 $2,080
$2,253 $2,080
$2,253 $2,080
$2,253 $2,080
$2,253 $2,080
$2,253 $2,080
$2,254 $2,080
$2,254 $2,080
$2,254 $2,080
$2,254 $2,080
Total
$12,132
$12,132
$12,132
$12,132
$12,132
$12,132
$12,132
$12,132
$12,136
$12,136
$12,136
$12,136
FY2014
Club Service Representative Club Sales Representative Club Sales Representative Lobby Associate Club Sales Representative Literary Analyst $18,720 $27,040 $27,040 $20,800 $27,040 $24,960
FY2015
$18,720 $27,040 $27,040 $20,800 $27,040 $24,960
FY2016
$18,720 $27,040 $27,040 $20,800 $27,040 $24,960
FY2017
$18,720 $27,040 $27,040 $20,800 $27,040 $24,960
FY2018
$18,720 $27,040 $27,040 $20,800 $27,040 $24,960
Total
$145,600
$145,600
$145,600
$145,600
$145,600
Budget
Budget Table (With Monthly Detail)
FY2014 Expenses
Salary Employee Related Expenses Rent New Inventory Utilities Office Supplies Internet & Website Book log (computer inventory system) Marketing & Promotion $12,132 $12,132 $12,132 $12,132 $12,132 $12,132 $12,132 $12,132 $12,136 $12,136 $12,136 $12,136
Aug '13
Sep '13
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
$241 $18,750
$241 $18,750
$241 $18,750
$241 $18,750
$242 $18,750
$243 $18,750
$243 $18,750
$243 $18,750
$243 $18,750
$243 $18,750
$244 $18,750
$247 $18,750
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$179
$179
$179
$179
$179
$179
$179
$179
$179
$179
$179
$179
$63
$63
$63
$63
$63
$63
$63
$63
$63
$63
$63
$63
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Expenses
$42,215
$32,215
$32,215
$32,215
$32,216
$32,217
$32,217
$32,217
$32,221
$32,221
$32,222
$32,225
FY2014 Expenses
Salary Employee Related Expenses Rent New Inventory Utilities Office Supplies Internet & Website Book log (computer inventory system) Marketing & Promotion $145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
FY2015
FY2016
FY2017
FY2018
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$756 $10,000
$756 $0
$756 $0
$756 $0
$756 $0
Total Expenses
$396,616
$386,616
$386,616
$386,616
$386,616
Loans and Investments

Loans and Investments Table (With Monthly Detail)
FY2014
Venture Capital Loan at 3.25% interest for 60 mos. Family Investments Equity investment Venture Capital Equity investment
Aug '13
Sep '13
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
$540,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$260,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$500,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,300,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
FY2014
Venture Capital Loan at 3.25% interest for 60 mos. Family Investments Equity investment Venture Capital Equity investment $540,000 $260,000
FY2015
$0 $0
FY2016
$0 $0
FY2017
$0 $0
FY2018
$0 $0
$500,000
$0
$0
$0
$0
$1,300,000
$0
$0
$0
$0

Profit and Loss Statement (With Monthly Detail)
Gross Margin
Aug '13 $19,140 $3,483

$15,657
Sep '13 $22,140 $3,583

$18,557
Oct '13 $22,140 $3,583

$18,557
Nov '13 $22,140 $3,583

$18,557
Dec '13 $9,890 $3,183

$6,707
Jan '14 $9,890 $3,183

$6,707
Feb '14 $22,140 $3,583

$18,557
Mar '14 $23,640 $3,633

$20,007
Apr '14 $23,640 $3,633

$20,007
May '14 $22,140 $3,583

$18,557
Jun '14 $19,140 $3,483

$15,657
Jul '14 $13,140 $3,283

$9,857

82%
84%
84%
84%
68%
68%
84%
85%
85%
84%
82%
75%
$12,132
$12,132
$12,132
$12,132
$12,132
$12,132
$12,132
$12,132
$12,136
$12,136
$12,136
$12,136
$241 $18,750
$241 $18,750
$241 $18,750
$241 $18,750
$242 $18,750
$243 $18,750
$243 $18,750
$243 $18,750
$243 $18,750
$243 $18,750
$244 $18,750
$247 $18,750
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$500 $300
$50 $179
$50 $179
$50 $179
$50 $179
$50 $179
$50 $179
$50 $179
$50 $179
$50 $179
$50 $179
$50 $179
$50 $179
$63
$63
$63
$63
$63
$63
$63
$63
$63
$63
$63
$63
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Expenses
$42,215
$32,215
$32,215
$32,215
$32,216
$32,217
$32,217
$32,217
$32,221
$32,221
$32,222
$32,225
Operating Income
Interest Incurred Depreciation and Amortization Income Taxes
($26,558)
($13,658)
($13,658)
($13,658)
($25,509)
($25,510)
($13,660)
($12,210)
($12,214)
($13,664)
($16,565)
($22,368)
$0
$1,463
$1,440
$1,417
$1,395
$1,372
$1,349
$1,327
$1,304
$1,281
$1,258
$1,235
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
($26,558) (139%)
($15,121) (68%)
($15,098) (68%)
($15,075) (68%)
($26,904) (272%)
($26,882) (272%)
($15,009) (68%)
($13,537) (57%)
($13,518) (57%)
($14,945) (68%)
($17,823) (93%)
($23,603) (180%)

Gross Margin
FY2015 $403,060 $47,592

$355,468
FY2016 $576,940 $53,388

$523,552
FY2017 $750,820 $59,184

$691,636
FY2018 $924,700 $64,980

$859,720
$229,180 $41,796
$187,384

82%
88%
91%
92%
93%
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$145,600 $2,912 $225,000 $6,000 $3,600 $600 $2,148
$756 $10,000
$756 $0
$756 $0
$756 $0
$756 $0
Total Expenses Operating Income

Interest Incurred Depreciation and Amortization Income Taxes
$396,616 ($209,232)
$14,841 $0 $0
$386,616 ($31,148)
$12,999 $0 $0
$386,616 $136,936
$9,565 $0 $25,474
$386,616 $305,020
$6,015 $0 $59,801
$386,616 $473,104
$2,348 $0 $94,151
($224,073) (98%)
($44,147) (11%)
$101,897 18%
$239,204 32%
$376,605 41%
Balance Sheet
Balance Sheet (With Monthly Detail)
As of Period's End
Aug '13
$1,278,020
Sep '13
$1,251,050
Oct '13
$1,226,986
Nov '13
$1,203,885
Dec '13
$1,172,491
Jan '14
$1,136,574
Feb '14
$1,109,919
Mar '14
$1,087,831
Apr '14
$1,065,212
May '14
$1,042,541
Jun '14
$1,017,406
Jul '14
$986,371
$5,742 $0
$6,642 $0
$6,642 $0
$6,642 $0
$2,967 $0
$2,967 $0
$6,642 $0
$7,092 $0
$7,092 $0
$6,642 $0
$5,742 $0
$3,942 $0

$1,283,762
$1,257,692
$1,233,628
$1,210,527
$1,175,458
$1,139,541
$1,116,561
$1,094,923
$1,072,304
$1,049,183
$1,023,148
$990,313
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total LongTerm Assets Total Assets

$0 $1,283,762
$0 $1,257,692
$0 $1,233,628
$0 $1,210,527
$0 $1,175,458
$0 $1,139,541
$0 $1,116,561
$0 $1,094,923
$0 $1,072,304
$0 $1,049,183
$0 $1,023,148
$0 $990,313
$9,998 $322
$7,027 $644
$7,028 $0
$7,027 $321
$6,908 $643
$6,907 $0
$7,028 $322
$7,042 $643
$7,043 $0
$7,027 $322
$6,998 $644
$6,938 $0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

Long-Term Debt
$10,320
$540,000
$7,671
$531,700
$7,028
$523,377
$7,348
$515,031
$7,551
$506,663
$6,907
$498,272
$7,350
$489,858
$7,685
$481,422
$7,043
$472,963
$7,349
$464,481
$7,642
$455,976
$6,938
$447,448
Total Liabilities
Paid-In Capital Retained Earnings Earnings
$550,320
$760,000 $0 ($26,558)
$539,371
$760,000 $0 ($41,679)
$530,405
$760,000 $0 ($56,777)
$522,379
$760,000 $0 ($71,852)
$514,214
$760,000 $0 ($98,756)
$505,179
$760,000 $0 ($125,638)
$497,208
$760,000 $0 ($140,647)
$489,107
$760,000 $0 ($154,184)
$480,006
$760,000 $0 ($167,702)
$471,830
$760,000 $0 ($182,647)
$463,618
$760,000 $0 ($200,470)
$454,386
$760,000 $0 ($224,073)
$733,442
$718,321
$703,223
$688,148
$661,244
$634,362
$619,353
$605,816
$592,298
$577,353
$559,530
$535,927
$1,283,762
$1,257,692
$1,233,628
$1,210,527
$1,175,458
$1,139,541
$1,116,561
$1,094,923
$1,072,304
$1,049,183
$1,023,148
$990,313
As of Period's End
FY2014
$986,371 $3,942 $0
FY2015
$832,139 $10,075 $0
FY2016
$822,245 $14,420 $0
FY2017
$946,107 $18,765 $0
FY2018
$1,203,704 $23,110 $0

$990,313
$0 $0
$842,214
$0 $0
$836,665
$0 $0
$964,872
$0 $0
$1,226,814
$0 $0
Total Long-Term Assets Total Assets

$0 $990,313
$6,938 $0 $0
$0 $842,214
$7,143 $0 $0
$0 $836,665
$7,288 $0 $0
$0 $964,872
$7,432 $0 $0
$0 $1,226,814
$7,577 $0 $0

Long-Term Debt
$6,938
$447,448
$7,143
$343,291
$7,288
$235,700
$7,432
$124,559
$7,577
$9,751
Total Liabilities
Paid-In Capital Retained Earnings Earnings
$454,386
$760,000 $0 ($224,073)
$350,434
$760,000 ($224,073) ($44,147)
$242,988
$760,000 ($268,220) $101,897
$131,991
$760,000 ($166,323) $239,204
$17,328
$760,000 $72,881 $376,605
$535,927 $990,313
$491,780 $842,214
$593,677 $836,665
$832,881 $964,872
$1,209,486 $1,226,814
Cash Flow Statement

Cash Flow Statement (With Monthly Detail)
FY2014 Operations
Net Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable ($26,558) ($15,121) ($15,098) ($15,075) ($26,904) ($26,882) ($15,009) ($13,537) ($13,518) ($14,945) ($17,823) ($23,603)
Aug '13
Sep '13
Oct '13
Nov '13
Dec '13
Jan '14
Feb '14
Mar '14
Apr '14
May '14
Jun '14
Jul '14
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($5,742) $0
($900) $0
$0 $0
$0 $0
$3,675 $0
$0 $0
($3,675) $0
($450) $0
$0 $0
$450 $0
$900 $0
$1,800 $0
$9,998
($2,971)
$1
($1)
($119)
($1)
$121
$14
$1
($16)
($29)
($60)
$322
$322
($644)
$321
$322
($643)
$322
$321
($643)
$322
$322
($644)

($21,980)
($18,670)
($15,741)
($14,755)
($23,026)
($27,526)
($18,241)
($13,652)
($14,160)
($14,189)
($16,630)
($22,507)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$760,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$540,000
($8,300)
($8,323)
($8,346)
($8,368)
($8,391)
($8,414)
($8,436)
($8,459)
($8,482)
($8,505)
($8,528)

$1,300,000
($8,300)
($8,323)
($8,346)
($8,368)
($8,391)
($8,414)
($8,436)
($8,459)
($8,482)
($8,505)
($8,528)
$0
$1,278,020
$1,251,050
$1,226,986
$1,203,885
$1,172,491
$1,136,574
$1,109,919
$1,087,831
$1,065,212
$1,042,541
$1,017,406
$1,278,020
($26,970)
($24,064)
($23,101)
($31,394)
($35,917)
($26,655)
($22,088)
($22,619)
($22,671)
($25,135)
($31,035)
$1,278,020
$1,251,050
$1,226,986
$1,203,885
$1,172,491
$1,136,574
$1,109,919
$1,087,831
$1,065,212
$1,042,541
$1,017,406
$986,371
FY2014 Operations
Net Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable ($224,073) $0 ($3,942) $0 $6,938 $0
FY2015
FY2016
FY2017
FY2018
($44,147) $0 ($6,133) $0 $205 $0
$101,897 $0 ($4,345) $0 $145 $0
$239,204 $0 ($4,345) $0 $144 $0
$376,605 $0 ($4,345) $0 $145 $0

($221,077)
($50,075)
$97,697
$235,003
$372,405
$0 $760,000 $0 $447,448
$0 $0 $0 ($104,157)
$0 $0 $0 ($107,591)
$0 $0 $0 ($111,141)
$0 $0 $0 ($114,808)

$1,207,448
$0 $986,371
($104,157)
$986,371 ($154,232)
($107,591)
$832,139 ($9,894)
($111,141)
$822,245 $123,862
($114,808)
$946,107 $257,597
$986,371
$832,139
$822,245
$946,107
$1,203,704

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