Stepping Stones Learning Aid\

Brandon
Joseph
Nick
Judging Criteria
Evaluation Guidelines for the Written Business Plans of the
TMCC Business Plan Competition 2011/2012

Executive Summary (10 Points): Clear, exciting, and effective as a stand-alone overview of the plan;
includes brief description of each succeeding section of the plan; can be read in 5 minutes.
Company Overview (10 Points): Presents a vision, history, current status, strategy, goals, mission and
objectives for the business.
Products or Services (10 Points): Describes the key features and benefits, current stage of development,
proprietary position, and competitive advantages of the product or service.
Market and Competitive Analysis (10 Points): Presents the growth trends and key driving forces of the
industry; identifies the key characteristics and needs of the target market(s); assesses the competitive
environment; demonstrates market acceptance for the product or service.
Management Team (10 Points): Backgrounds and roles of key individuals; history and ability to work as
an effective team; personnel needs; organizational structure.
Operating Strategies (10 Points): Addresses the marketing, production, research and development,
personnel, administrative, and financial strategies for the proposed firm.
Critical Risks (10 Points): Realistically identifies the major internal and external critical risks that could
threaten the business and presents viable contingency plans to address these issues.
Cash Flow Statement (5 Points): Presents a realistic assessment of cash requirements -inflows and
outflows- over a projected 5-year period; cash flows are consistent with operating and marketing
strategies outlined in the body of the plan; cash flow information is detailed for first two years,
quarterly/annually for years three to five years.
Income Statement (5 Points): Demonstrates realistic and attractive income potential of the business;
the income statement is consistent with the operating and marketing strategies outlined in the body of
the plan; income statement information is detailed for first two years, quarterly/annually for years three
to five.
Balance Sheet (5 Points): Presents a realistic assessment of the working capital and fixed asset
requirements of the business; appropriately reflects the projected capital structure of the business (long
term debt and equity positions); balance sheet information is projected annually for 5 years.
Funds Required/Used (5 Points): Clear and concise presentation of amount, timing, type and use of
funds required for venture.
Offering (5 Points): Clearly articulates the proposal/terms to investors; identifies what entrepreneur is
seeking from investors; states how much equity will be given up in return for investment capital;
presents a realistic assessment of ROI potential; presents an appropriate deal structure and possible exit
scenarios.
Overall Impression (5 Points): Overall impression of plan is interesting, engaging and creates a sense of
excitement and grand potential for the business.

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 Stepping Stones Learning Aid\

Stepping Stones Learning Aid LLC. Executive Summary

SSLA is a standardized testing and curriculum based tutoring service offered towards elementary level
students, situated in their local schools. Tutors will be distinguished upper level high school students and
local university students, offering tutoring serviced priced affordably at $15-$20/hour.

Stepping Stones Learning Aid is a LLC company that will derive its income from tutoring based services.
Tutoring services will include teaching the material associated with standardized tests given to
elementary level students such as the CRT and curriculum based aid towards core subjects such as
English, Math and Science

The company will be situated on site as local elementary school, giving students and parents the option
of local tutoring as an alternative to tutoring services which are expensive and an inconvenience for
parents driving their children longs ways to remote locations. Agreements are expected to be made with
elementary school administrators to allow SSLA to operate on campus, with a fee given to the school in
the form of $500 plus 5% gross income per month. Tutoring is expected to occur in either unused
classrooms, the library or the gymnasium, with the location to be determined after market research.
SSLAs hours will be from 3:30pm to 6:30pm, to allow students a 30 minute reprieve from school before
beginning tutoring. Initially, SSLAs target demographic will be 3 rd-5th graders,

Tutors will be high achieving students from two categories. The first being upper level (Junior and Senior)
students from distinguished high schools such as The Davidson Academy, TMCC High School and The IB
Program. Requirements will include, but are not limited to a 3.5 minimum GPA and two teacher
recommendations. Tutors will also be recruited from the local university UNR as well, with base
requirements of a 3.5 GPA and a full resume. Tutors will be put through a 3 week training course on pupil
interactions, curriculum tutoring and teaching methods. A basic uniform will be assigned for tutors in
order to help maintain professionalism for SSLA with the idea of a white button up with the company
logo stitched upon the left hand breast area and accentuating slacks and dress shoes.

Pricing for tutoring will be given at a based rate of $20/H in a tutor on student situation, with an
alternative option given of sharing one tutor with 2-3 students at a rate of $15/H per student.
Scholarships may be awarded to students in tough financial situations, at the price of $10/H per
students. Tutors will be paid at a base rate of $10/H.

A company liaison will be situated at each, to act as a supervisor for tutors, manage the daily details of
SSLA at each school (Marking absences for tutors and students, Setting up tables, providing help for
tutors in unfamiliar situations) and to be prepared in the event of an emerge situations, such as choking,
asthma attacks and fire evacuations. Liaisons are to be teachers from the respective schools hired at a
rate of $20/H, giving the teachers the opportunity to continue to help their students, while the giving
parents the benefit of knowing a trusted professional is situated on location for their childs benefit.

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The target demographic for SSLA are parents of middle to upper income levels of elementary level
students who are struggling or wish to improve in their education skills. Marketing and research for SSLA
will be approached from a number of techniques, most prominent of which includes surveys handed out
at PTA meetings and to parents after school coming to pick up their children. The survey will be basic,
including 5-9 questions, ranging from their desired price to ideal tutors and locations. The survey will ask
for contact information at the bottom if the parents would be interested in the service provided in the
future. This technique will be beneficial on two parts, by one: gathering market research and two:
establishing a client base to contact who have already provide interest in the service.

The tutoring service will be centered on the idea of one personal tutor for each student, as opposed to a
pool of tutors each day choosing a random student, with the ability to allow them to either learn with
their friends or siblings. Parents will have the option to purchase week, month and semester long
segments of tutoring, having the option to choose from 3 to 5 days a week and 1 to 3 hours per day. On
behalf of the tutors, SSLA will create portfolios for parents to browse and help make decisions on
whom to choose as a tutor, including fields of interests, outside activities, GPA, and subjects of
excellence. All supplies will be provided for students, including pencils and notebooks, with each tutor
having a whiteboard to better demonstrate problem solving.

Parents will have the option of choosing for the tutor to focus solely on homework, curriculum or
combination of both. Tutors will follow a basic rubric , with SSLA exploring the possibility of schools
lending textbooks to the company on campus for tutors to have the ability to effectively follow the
subjects curriculum and to take questions directly from the books to further improve their pupils
understanding of the subject. CRT comprehension will be available for students as well, with tutors
teaching the course designed by SSLA, based on the resources for the standardized test available on the
WCSDs (Washoe County School District) website.

Aspects that will be incorporated into SSLA to make it more desirable for both parents and schools is to
offer bi-monthly progress reports sent to both parents and the pupils teachers that would show the
changes in grades, areas of subject strengths and in what areas need improvement. Other aspect would
include providing nitrous snacks, to all students, which would be purchased from local wholesaler
Costco.

Stepping Stones Learning Aid will begin operations in 3 unique phases, with the first 90 day
alpha phase establishing the business in only one location in March to May, giving the company the
opportunity to use the phase as a source of market research and observance to better help develop the
curriculum. In September the beta phase of SSLA will launch in 3 schools until September to further
refine financial before fully launching the business in January 2013.

Company Overview
Stepping Stones Learning Aid was a vision thought of by Brandon Shaw in May of 2011. A CRT tutor at
the time, it was Brandons thought on why only one main company dominated the tutoring market,

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particularly in elementary school, with exorbitant prices, while mere high school and college students
could provide the same level of learning at incredibly affordable prices. The thought developed until
Brandon decided to compete in a college business plan competition, meeting Joseph Jumale, his first
business partner, at the same time. Shortly thereafter Nick Vienneau, a senior from the prestigious
Davidson Academy, joined as Brandons second partner.

Together they set about to create a tutoring service for elementary level students with the thought it
mind to have a luxury level service at a generic level price. They imagined a service that was affordable
as well easy to access, with tutoring located directly on campus. A service with a variety of tutors from
the top tier of the Nevada educations system, with parents having the option of choosing their own
hours with a tutor of their choice. In short, they sought to rebuild the entire market of tutoring services.

With these thoughts in mind, Brandon, Nick and Joseph created mission for Stepping Stones Learning Aid
to give the resource affordable professional tutoring to every child, regardless of his or her financial
situation.

SSLA has a set amount of goals for the 2012-2013 fiscal years:

Finish the curriculum of SSLA in February

Establish in 1 school by March for the alpha phase of SSLA
Establish in 3 school in September
Launch the full business in January 2013 in 5 complete locations

Although the number of goals may be small, the creators of SSLA feel focusing their effort on a small,
select number of priorities, rather than a multitude of goals distracting from their main focus will be
more beneficial for the growth of the company.

At the time of early December, SSLA is currently in the status of creating its curriculum and tutor training
program. Advertisements are in design to be sent out through all elementary school once approved by
the WCSD communications coordinator. SSLA is calling PTA members of potential location schools
togarner support of the program, spread word of mouth and gather preliminary market research.
Investment funds will begin being sought after in early January from friends, family and other interested
parties.

Products and Services Offered By SSLA

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When students come to a trained SSLA tutor they are going to be receiving a quality relationship
that focuses on their educational needs while ensuring that progress is made and that a path of
achievement is accomplished. SSLA offers students and parents the confidence in knowing that the
needs of the student come first. We offer two options for parents who are looking for a tutor for their
child: One2One and Team Training. SSLA offers several tutoring options for parents and children in order
to achieve maximum value. The amount of time students spend with a tutor can be set up to be on
monthly or semester basis with parents having the ability pay in installments. Parents who pay the
amount in full will receive a discount as it ensures easier cash flow less involvement in a payment
management system.

The most often chosen tutoring option is estimated to be One2One tutoring for 3 hour per week
giving the benefit of the student and tutor to most direct, hands on approach with the most effective
number of tutoring hours to address critical needs, homework completion and skill building. Offered at a
rate of 20 dollars per hour this plan is what most parents will use in the beginning because of the pure
simplicity and benefits. With SSLAs One to one tutoring program the traditional idea tutoring is
expanded upon the concept by having teacher involvement on the periphery with the added benefit of
the student relating to the tutor because of the smaller age difference. And unlike traditional tutoring
SSLA tutors will work with the faculty and parents to develop a tutoring curriculum base specifically on
that childs needs, with the groundwork any lessons already created by Stepping Stones to continually
provide our clients children excel at the utmost in all aspects of the education.

Our Team Training program comprised of one tutor to a group of 2 to 3 students within similar
skill ranges. Parents can choose the option of having their childs friends of siblings learn with the child
for the benefit of collaborative learning and reduced prices for each child. Parents who choose this
option will also receive a discounted of $15/H per student, increasing marginal profit rates for SSLA by
$10/H compared to the regular One2One program of $20/H.

COMPETITIVE MARKET ANALYSIS

There are good reasons why a private supplementary tutoring sector might emerge to complement the
public and private schooling systems. Private tutoring can provide more individualized instruction than is
possible in public schools, using a more flexible delivery mechanism. The private tutoring industry is also
differentiated from the private school sector in that its existence depends on the mainstream education
system; it does not stand alone as an independent educational activity. This aspect of private tutoring
helps explain why it has been referred to as shadow education. Private tutoring is also less formal and
more flexible than private schooling: it can include not only one-to-one tutoring but also group classes, it
can be provided not only by full-time tutors and teachers but also by university students, retired
teachers, university professors, and community members. Because it supplements rather than replaces
the public sector in the United States, the combination of public schooling and private tutoring is also
more affordable for many households than private education would be.

The evidence that private tutoring raises achievement in the United States is overwhelming. Other
studies that find that private tutoring has positive effects on SAT scores include Becker (1990) and
Powers and Rock (1999). A meta-analysis study of the effects of one-on-one tutoring programs in reading
for elementary students with learning difficulties shows that these programs improve student reading
skills (Elbaum2000). In many countries, private tutoring has arisen as a parallel education sector that
provides supplementary instruction to students enrolled in the public school system. Substantial private

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tutoring industries can be found in countries as economically and geographically diverse as Cambodia,
the Arab Republic of Egypt, Japan, Kenya, Morocco, Romania, Singapore, the United States, and the
United Kingdom. This survey cites evidence on the prevalence of tutoring in 23 developing and
developed countries. In almost all of them, 2590 percent of students at certain levels of education are
receiving or recently received private tutoring.

We must also take into account that tutoring in the United States is often for meeting remediation needs
of lower achieving students whereas in South Korea and Japan private tutoring is used as a supplemental
to education already received. This has caused a difference in perception among tutoring between east
Asian countries and the United States: in East Asia tutoring is seen as a threat to the public school system
and has seen an increase in regulations to restrict the amount of tutoring received. In the United States
private tutoring is seen as bolstering public education and receives support from the government.

Driving Factors For Tutoring In The US

There are several factors that are creating the increase in need for private tutors. The passage of No
Child Left Behind has increased the amount of funding available for government grants while
simultaneously making tutors accessible to Title 1 schools, whos parents would typically not be able to
afford such services.

Comparing Stepping Stones Learning Aid to Other services

When selecting a private education firm its important to ensure that first and foremost the childs
interests are being considered and that a quality service is being offered. There are a multitude of
private indentures of the Indonesian finding individuals who can claim to be tutors however without any
vesting or background checks, the credentials of the person offering their services cannot be confirmed.
Few if any organized services exist and the ones that do are incredibly expensive and often out of the
price range of potential parents who are interested in such services and children are often forced to
spend extraneous amounts of time transporting the child to various locations.

This is where Stepping Stones Learning Aids(SSLA) can help bridge the gap between such
inconveniences for the parents while at the same time maintaining a manageable price range. Instead of
parents being forced to shuttle their children to and from various locations and adding an extra step and
time delay in the childs education, SSLA will be located on the school campus. This is especially
beneficial for working parents because they wont have to stop what they are doing in the mid afternoon
to shuttle their child to a new place
.
In addition the pricing is far more manageable than traditional tutoring services. Most tutors are
private individuals who charge high prices and make claims that they are experts but such statements
cannot be confirmed. In addition taking payments is often a hassle as debit and credit payments simply
cannot be done. In addition so called expert services , in particular Sylvan Learning Center, charge
incredibly high prices so much so that they are priced out of the range of the vast majority of parents.
However for parents who choose to use SSLA tutors, they will receive the comfort of knowing that our

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employees will ALWAYS be working closely with teachers and school administrators to help keep their
child on the path of success.

MARKET POSITION
Many parents would love to have their students receive additional assistance outside of school but
simply cant afford to do so. Other parents are concerned that even with tutoring theres no guarantee
that their child will be receiving assistance thats relevant for their childs particular needs. This is where
SSLA can prove to be a success. Employees of SSLA will have direct access to teaching and testing
materials to ensure that the students are getting exactly what they need to succeed. SSLA will provide
the accessibility of traditional tutoring methods while at the same time being much more economical
and convenient than Sylvan Learning Center or Total Tutoring Services.

UNIQUE METHODS
SSLA will be marketed not only to parents, but to schools as well. SSLA will provide schools with a
small return on gross profits to schools. This innovative approach will not only incentivize schools to
encourage participation but by being located on school grounds, it will be convenient for students to
participate. Many of our tutors will be involved in education themselves. This allows passionate
individuals to get directly involved in the future of children while getting personal satisfaction of making
difference. The convenience offered to schools, students, and parents is simply unmatched in the
market anywhere. The affordability of SSLA is simply unmatched.

MARKETING LEVERAGE
What makes SSLA unique is that it combines the flexibility of private tutoring with the
sophistication and organization of national Tutoring Centers like Sylvan. SSLA will be placed on campus
to provide maximum availability. By giving a small percentage of profits to schools directly, SSLA will have
principals and teachers championing to get students to use the services. Furthermore tutors at SSLA will
be working directly with schools to ensure that everything taught will be relevant. No other service is
working directly with schools in order to ensure that students are being educated for success and this is
where SSLA will shine.

INITIAL TARGET MARKET

Stepping Stones Learning Aid will target a total of 5 schools for its full launch in January 2013. The
schools are Lenz, Hunsburger, Roy Gomm, Caughlin Ranch, Van Gorder, Brown, Rollan Melton, Taylor
Elementary, based upon teacher to student relations, test scores and diversity through Reno. Each school
has an average of 500 students, with administrators of SSLA estimating a 15% segment of each school
that demonstrate a need for tutoring services and be willing to pay for it.

Competition
Our primary competition includes one national and two regional tutoring firms.
Our National Competition was Sylvan Learning Center. The regional competition for Stepping Stones
Learning Aid is Total Tutoring Services and private tutors. Below is gathered information about these
groups. The average rate for private tutoring is $50 dollars with ranges from $10 to $100 dollars per hour.
Corporate competitors such as Sylvan routinely charge anywhere from $40-$80 per hours, in group
tutoring sessions of 2-4 children per instructor. Although Sylvan instructors earned at least a bachelors
degree to apply, the bachelors degree is not specified, leading to college graduates with a bachelors in

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philosophy and art teaching mathematics to a middle schooler. As for private tutors, while expensive,
they tend to develop their own curriculum or merely teach from lesson developed online for tutors. Both
aspects of our competition give SSLA the advantage of providing inexpensive, one-on-one tutoring, with
a tested and developed curriculum, created by students from the most prestigious academy in Nevada.

Management Team

Joseph Jumale
Co-Founder
Joseph grew up from humble beginnings. His family initially lived in the skid row area of Los
Angeles before moving to Long Beach, California before the family finally settled in Las Vegas, Nevada.
Joseph eventually moved to Reno, Nevada to live independently and began taking part time classes at
the local Community College. It was there where he met Brandon Shaw and then Nick Vienneau.
Together they founded Stepping Stones Learning Aid.
Joseph having experience in the job market Joseph brings a dearth of real world experience of
managing budgets and responsibilities . Functions within SSLA include analyzing the market, devising
new products and services based on the market data developed, and ensuring cost effective methods for
implementing operating strategies.

Stepping Stones Learning Aids is still a new company. We are in the process of developing our Board Of
Advisors at this time to assist in navigating the business world in an efficient and legal manner.
We anticipate the need for an odd number of Advisors whos positions include positions include:

Legal advisor in order to ensure that we are operating in a sound legal manner.
A Controller to ensure proper financial reporting is taking place.
Educational Cooperative Laison. The laison will guide us through the Washoe County School District
regulations and help us maintain proper compliance the with School District.
A Business Strategist to assist our company with key business details that could be overlooked and has
experience starting businesses.

A fifth post that Brandon or Nick can fill in because Im drawing a blank.

Operating Strategies
SSLA will institute itself into the tutoring market over a year long period in 3 distinct parts: Alpha phase,
Beta phase and Launch, with each phase expanding the company and allowing for further refinement of
the curriculum and financial projections. For the Alpha and Beta phase of SSLA, all profits will be put
back into the business to promote growth. The founders of Stepping Stones realize that as a starting

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business, the growth of the company outweighs the profits taken from it. In the final Launch phase, SSLA
will fully expand to full staff and location with company profits taken as well.

Stepping stones Aid will institute a 90 day alpha program in March of 2012 centralized in one school,
options of which include Lenz, Hunsburger and Roy Gomm. 4 tutors will be hired during that time,
personally trained by Nick Vienneau and Amy Bodner, the lead developers of our tutor training program
and tutor curriculum. Brandon, Nick, Joseph and Amy will be located on location on alternating days to
observe tutor behavior and interaction. The information gathered from the Alpha program will be used
to tailor the services provided, training methods and curriculum. All changes to the material of the
program will be made during the alpha period. Tutoring will be charged at a base rate of $10/H to break
even for the company.
Over the summer months of 2012 Stepping Stones Learning Aid will focus on changing and improving
the developed curriculum and tutor training methods gained from the data gather in alpha phase. The
first initial program of training tutors will begin in August, further allowing SSLA to refine their training
and teaching methods for full time expansion.

A beta program will be instituted from September to December 2012, located in 3 schools, one being the
location of our alpha program. 5 tutors will be assigned to each schools, with a charge of $15/H for
tutoring services with tutoring still receiving $10/H. In the beta program trends, purchases, parent-tutor
interactions, SSLA-school relations, student program retention rate will be studied to be related back into
the revised business plan financials. With the beta phase, SSLA management will become less hands on
with the expansion of new locations and new employees as in alpha, allowing Stepping Stones to
become sufficiently self-sustaining before moving on to larger markets.

In the Launch phase, Stepping Stones Aid will become running full time in January of 2013 in 5 schools
situated district wide with 12 tutors per school. Tutoring will be raised to the final rate of $20/H with
tutors still their main pay. With the program tested in two separate phases of both curriculum and
financial, the founders of SSLA are confident that the business will be self-sustaining with high level
profit margins. Stepping Stones Learning Aid will target 8 elementary schools initially to become vendors
of service in, with the eventuality in mind that some schools will not be interested in the program. SSLA
will target the schools of Lenz, Hunsburger, Roy Gomm, Caughlin Ranch, Van Gorder, Brown, Rollan
Melton, Taylor Elementary based upon their outstanding parent and teacher involvement, excellent test
scores, highly rated staff and diverse locations. Meetings will be set up with the respective schools
principal for them to determine if SSLA is the right fit for their school.

In Beta and Launch phase, each school will have a floor manager to oversee operations of the location,
with tasks including taking roll of tutors and students, contacting SSLA managers should either a tutor or
student not show up, resolve conflicts among students and tutors and keep student and tutors on track
in working in the established time frame. Floor managers will be teachers hired directly from locations of
SSLA, giving the benefit to the company of having a mature and trustworthy adult overseeing the
tutoring operations of younger students. Teachers will be paid $20/H, giving them the relatively easy
option of overseeing an easy to manage program while still being paid a fair wage.

Tutors for Alpha phase have already been established and shown interest and excitement for the coming
months. Two tutors will be taken from TMCC High School and two from the Davidson Academy, chosen
by Brandon and Nick respectively. Minimum requirement will include a 3.5 GPA, two teacher letter of
recommendations and two contacts. Beginning in May 15 tutors will begin being advertised to through

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TMCC High School, The IB Program, The Davidson Academy and UNR Training. In November Stepping
Stones will begin taking applicants for the full launch of its business.

The interview process of applicants in the Beta and Launch phases will be a two part program. The first
portion will be the actual interview process, where potential applicants will meet with one administrator
of SSLA to begin a series of questions and overview of experience. The next step of the interview process
will be for the tutor to demonstrate proficient skill by having 5 minutes to look over an average lesson
plan that is part of SSLAs curriculum. He or she will then have 10 minutes to tutor a volunteer 5 th grader
in that lesson with the child giving his own account of how well the potential tutor did.

Should the tutor show aptitude in the interview, they will be moved on to the 3 week training session.
From there they will undergo training and demonstrate further skill to the trainers. The training session
is a more in-depth interview for SSLA, with the company reserving the rights to not hire anyone it feels is
subpar in their teaching skills, based upon a rubric of Nick and Amys design. Upon the completion of the
training session, tutors will be hired as contractors for the company, given their relatively low number of
working hours. Contractor status will be beneficial for both the tutors and Stepping Stones, given the
lack of benefits SSLA would not have to pay for and the ability of the tutors to write off every work-
related expense on their taxes.

An addition benefit of hiring high school students as well as College undergraduates is SSLAs ability to
provide community service hours for its high school tutors, given the fact 50 hours are required by most
high schools for them to graduate. At a base rate of $10/H, SSLA will save on average $500 per high
school tutor it hires.

With such high standards for SSLAs tutors, their training and taught curriculum must be on par. Both our
tutor training program and 3rd-5th tutoring curriculum are in development by Nick Vienneau and Amy
Bodner, both seniors at the prestigious Davidson Academy. Both programs are expected to be completed
in February of 2012 for principal and district review and certification. During and after Alpha phase of
SSLA both programs will undergo extensive revision from the data gathered during the first initial test
run to better transition the theory behind the programs into practice.

Tutors will be personally trained by Nick Vienneau and Amy Bodner for Alpha phase and the full training
sessions will begin being held for tutors before Beta Implementation. Training will be held on UNR
campus in free community room. Taught by Nick and Amy, training will undergo tutor-student
interactions, alternative teaching style methods and curriculum understanding and impartment.

As a starting business, SSLA cannot afford to keep spare tutors on hand, draining the companies
resources for the possibility of filling in for a late tutor. SSLA will stress the importance of arriving to work
on time and will have all tutors sign a contract upon their hiring stating they understand failing to show
up for tutoring session cost the company money which they will pay, plus rescheduling fees for children
who have no tutor for that day. Students who do not show up for tutoring session will still be charged
the full amount when no notice is given, half of the charge when a 24-hour notice is given and no charge
when a 48-hour notice is given to the company.
Stepping Stones Learning Aid will approach marketing from multiple angles one of which by marketing
themselves directly to elementary school principals as outside vendors working within each school for
mutual benefits to both parties.

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Fliers advertising SSLA will be approved through the WCSD communications office before being sent to
each elementary school to be sent home with students advertising the coming launch of SSLA in
September 2012. Fliers will include a brief excerpt of the business, when it will launch, prices,
advantages and a coupon for one free session included. Posters will begin going out in early February,
then again in April, as well as in June in elementary schools SSLA will be set to operate in the following
year, With each wave of fliers advertising the specific locations for SSLA during the phase of the business.

Appearances will be made at multiple PTA meetings of desired elementary schools to receive feedback
on SSLAs service structure, garner support and approval from the members and gather market research
with surveys of our design. PTA support will be a valuable resource for Stepping Stones to allow the
company to operate through its own marketing strategies as well as through word of mouth from
influential members of the education community.

Parents will be marketed directly to as well, with representatives from SSLA meeting with parents on
elementary school locations to ask them to fill out the same surveys handed out to PTA members.
Surveys will include a questionnaire at the bottom asking if they would like the company to contact them
when SSLA begins operations in the next year. This approach has the dual benefit of gathering market
research as well as building a client contact base who has already expressed interest in to sell our
services to.

SSLA will also pursue media marketing as well, with the company meeting with the editors of Parents
Monthly and RN&R to have articles featured on our new, emerging business of high quality, low cost
tutoring. With media attention, the company will begin solidifying as a market brand for tutoring before
operations even begin.
A location for SSLA for has already been targeted on Cordone Ave, a building for emerging
entrepreneurs, with one office, conference rooms and all utilities for $150/Month. Furniture will be a
start up cost capped at $2000 . Phone bill would be $45 a month and the merchant account to process
credit card transactions will be a 2.75% charge each time. All other aspects of the finances for SSLA will
be covered in the financials section.

Critical Risk

There are many factors in the cut throat world of the tutoring market that can drive even the most
promising business into the ground if proper preparations and contingencies are not prepared in its
planning. Although critical threats such as under advertising, lower than expected market, less than
expected tutor applicants and denial of vendor status at certain schools may have a serious negative
impact on the business, with proper planning they will not be detrimental.

With our tutor training program and tutoring curriculum in development with SSLA Education Manager
Nick Vienneau and outside contractor Amy Bodner, there is a potentially high risk of Amy wanting to be
paid high for her contributing services towards the program and calculating future profits herself, begin
asking for royalties for the programs she co-authored. We at SSLA believe this will be a simple matter to
solve by confronting the problem before it emerges in the form of having Amy sign a contract stating she
understands she will be paid $10/H for her billed work with price and no royalties non-negotiable.

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Further details will be included in the contract stating she does not have the right to divulge this program
with any other person or business as the programs are sole intellectual property of SSLA regardless of
her work towards it.

One large risk for SSLA is the possibility that targeted schools would not wish for Stepping Stones to
operate on their campus for various reasons such as feeling the company is an intrusive presence, might
not have enough benefit for the school or the tutors arent qualified enough. While there is no solid
solution to this problem, SSLA will address why each of these points are not relevant to the company and
offer a higher fee of 10% net profit towards the school to allowing SSLA to operate on campus. Barring all
other option, should the principal still not want SSLA to operate on campus, the company will begin
setting up interviews with addition elementary schools until the quotas are filled for each phase.

A large problem that could face Stepping Stones could be a high lack of tutor applicants. While this
problem would only be prominent before the launch phase, due to the small number of tutors required
for beta and alpha, lack of tutors during the final phase could still cause large problems for finances for
SSLA. The potential problem is to be addressed by aggressive marketing for tutor applicants at
distinguished high schools and through posters and fliers on the UNR campus, by visiting with schools
and offer to give assemblies on the opportunities for the children in community service and easy working
hours.

On the opposite end of the spectrum, SSLA cannot discount the possibility of a lower than projected
market for tutoring within schools. While the company has project a potential marker of 15% of each
schools 500 plus population, there is still the factor that Stepping Stones would not be a desirable
tutoring service based upon factors such as lack of history, tutor age and certification and lack of a
centralized, profession location. The contingency plan addressed will follow the format of sending
home fliers with children at elementary and offering an initial assessment and a free lesson of tutoring as
an incentive for coming to the company.

Even though Stepping Stones is a unique business in the tutoring market, the possibility of a rival
tutoring service emerging onto the market at the same time as SSLA cannot be discounted. The
contingency plan is addressed before the event already happens by having schools sign a contact upon
agreement to allow SSLA to become vendors on location that would prohibit it from removing the
company without 2 months prior notification. Also, marketing strategies would be implemented again
the rival company by media appearances if possible, fliers and post cards sent out advertising the
trusted name in tutoring and establishing the Stepping Stones to be the Coca-cola to the rival
companies Pepsi.

While a lawsuit may be inevitable in any business industry, SSLA plans to deal with it in a number of way.
The first of which includes a contract parents sign upon buying a program with Stepping Stones stating
they understand that results are not guaranteed as the student must put as much effort as the tutor into
improving their grade. For lawsuits such as sexual harassment and physical abuse, the first step to
identifying the problem is through the interview process and training course observing the tutors
behavior, to background checks to certify their reliability. Should the action happen, SSLA will terminate
the contractor immediately with the founders protected under the shield of tutor insurances as well as
the veil of the LLC.

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Stepping Stones Learning Aid Financials 2.1

Chart: Highlights

Table: Start-up

Start-up

Requirements

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Start-up Expenses
Legal $1,000
Stationery etc. $100
Insurance $300
Computer $200
Background Checks $1,800
Advertising $150
Total Start-up Expenses $3,550

Start-up Assets
Cash Required $5,000
Other Current Assets $2,000
Long-term Assets $0
Total Assets $7,000

Total Requirements $10,550

Chart: Start-up

Table: Market Analysis

Market Analysis
2012 2013 2014 2015 2016
Potential Customers Growth CAGR
One on One Tutoring 5% 2,500 2,625 2,756 2,894 3,039 5.00%
Group Tutoring 5% 500 525 551 579 608 5.01%
Total 5.00% 3,000 3,150 3,307 3,473 3,647 5.00%

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Chart: Market Analysis (Pie)

Table: Sales Forecast

Sales Forecast
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Unit Sales
One on One Tutoring 3HPW 234 327 425 552 690
One on One Tutoring 2HPW 172 240 312 405 506
Group Tutoring 3HPW 72 100 130 169 211
Group Tutoring 2HPW 42 59 77 100 125
Total Unit Sales 520 726 944 1,226 1,532

Unit Prices FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

One on One Tutoring 3HPW $240.00 $240.00 $240.00 $240.00 $240.00
One on One Tutoring 2HPW $160.00 $160.00 $160.00 $160.00 $160.00
Group Tutoring 3HPW $360.00 $360.00 $360.00 $360.00 $360.00
Group Tutoring 2HPW $240.00 $240.00 $240.00 $240.00 $240.00

Sales
One on One Tutoring 3HPW $56,160 $78,480 $102,000 $132,480 $165,600
One on One Tutoring 2HPW $27,520 $38,400 $49,920 $64,800 $80,960
Group Tutoring 3HPW $25,920 $36,000 $46,800 $60,840 $75,960
Group Tutoring 2HPW $10,080 $14,160 $18,480 $24,000 $30,000
Total Sales $119,680 $167,040 $217,200 $282,120 $352,520

Subtotal Direct Cost of Sales $0 $0 $0 $0 $0

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Chart: Sales Monthly

Chart: Sales by Year

Table: Milestones

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Milestones

Milestone Start Date End Date Budget Manager Department

Create Business Bank Account 1/5/2012 1/5/2012 $100 Joseph Finances
Incorporate SSLA 1/10/2012 1/10/2012 $400 Brandon Joseph Management
and Nick
Hire Four Tutors for Alpha Phase 2/1/2012 2/8/2012 $0 Nick and Amy Management
Meet with three principals of 2/1/2012 2/20/2012 $0 Brandon Marketing
potential Alpha phase school
Launch Alpha phase 3/1/2012 5/31/2012 $0 Brandon, Nick and Management
Joseph
Revise SSLA Curriculum 6/1/2012 7/31/2012 $0 Nick and Amy Education
Meet With Principals for Potential 5/1/2012 6/5/2012 $0 Brandon and Marketing
Beta Phase Schools Joseph
Hire Tutors for Beta Phase 7/1/2012 7/31/2012 $0 Brandon, Nick and Management
Locations Joseph
Train Beta Phase Tutors 8/4/2012 8/25/2012 $0 Nick and Amy Education
Launch Beta Phase of SSLA 9/3/2012 12/21/2012 $0 Brandon Management
Meet With Principals of School for 10/1/2012 11/1/2012 $0 Brandon, Nick and Marketing
Full Launch Phase of SSLA Joseph
Hire Tutors for Launch Phase 11/1/2012 11/30/2012 $0 Brandon, Nick and Marketing
Joseph
Train Tutors for Launch Phase 12/1/2012 12/22/2012 $0 Brandon, Nick and Management
Joseph
Fully Launch SSLA 1/1/2013 1/1/2013 $0 Brandon, Nick and Management
Joseph
Totals $500

Chart: Milestones

Table: Personnel

Personnel Plan
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Tutors $5,190 $7,260 $9,440 $12,270 $15,340
Floor Managers $30,000 $60,000 $78,000 $96,000 $96,000
Total People 60 90 90 102 115

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Total Payroll $35,190 $67,260 $87,440 $108,270 $111,340

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $3,550
Start-up Assets to Fund $7,000
Total Funding Required $10,550

Assets
Non-cash Assets from Start-up $2,000
Cash Requirements from Start-up $5,000
Additional Cash Raised $0
Cash Balance on Starting Date $5,000
Total Assets $7,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $10,550
Total Liabilities $10,550

Capital

Planned Investment
Owner $0
Investor $0
Additional Investment Requirement $0
Total Planned Investment $0

Loss at Start-up (Start-up Expenses) ($3,550)

Total Capital ($3,550)

Total Capital and Liabilities $7,000

Total Funding $10,550

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 15

Monthly Revenue Break-even $3,547

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Assumptions:
Average Per-Unit Revenue $230.15
Average Per-Unit Variable Cost $0.00
Estimated Monthly Fixed Cost $3,547

Chart: Break-even Analysis

Table: Profit and Loss

Pro Forma Profit and Loss

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Sales $119,680 $167,040 $217,200 $282,120 $352,520
Direct Cost of Sales $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0

Gross Margin $119,680 $167,040 $217,200 $282,120 $352,520

Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $35,190 $67,260 $87,440 $108,270 $111,340
Marketing/Promotion $230 $300 $400 $450 $550
Depreciation $0 $0 $0 $0 $0
Rent $1,800 $1,800 $1,800 $1,800 $1,800

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Insurance $1,060 $2,000 $2,500 $3,500 $4,500

PayAnywhere $343 $429 $622 $809 $1,010
Phone $540 $540 $540 $540 $540
School Fees $2,856 $3,998 $5,198 $6,757 $8,447
Supplies $550 $200 $500 $250 $300

Total Operating Expenses $42,569 $76,527 $99,000 $122,376 $128,487

Profit Before Interest and Taxes $77,111 $90,513 $118,200 $159,744 $224,033
EBITDA $77,111 $90,513 $118,200 $159,744 $224,033
Interest Expense $0 $0 $0 $0 $0
Taxes Incurred $23,133 $27,154 $35,460 $47,923 $67,210

Net Profit $53,977 $63,359 $82,740 $111,821 $156,823

Net Profit/Sales 45.10% 37.93% 38.09% 39.64% 44.49%

Chart: Profit Monthly

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Chart: Profit Yearly

Chart: Gross Margin Monthly

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Chart: Gross Margin Yearly

Chart: Cash

Table: Cash Flow

Pro Forma Cash Flow

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

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Cash Received

Cash from Operations

Cash Sales $119,680 $167,040 $217,200 $282,120 $352,520
Subtotal Cash from Operations $119,680 $167,040 $217,200 $282,120 $352,520

Expenditures FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Expenditures from Operations

Cash Spending $35,190 $67,260 $87,440 $108,270 $111,340
Bill Payments $19,848 $44,092 $46,149 $60,796 $82,522
Subtotal Spent on Operations $55,038 $111,352 $133,589 $169,066 $193,862

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $55,038 $111,352 $133,589 $169,066 $193,862

Net Cash Flow $64,642 $55,688 $83,611 $113,054 $158,658

Cash Balance $69,642 $125,330 $208,941 $321,996 $480,654

Table: Balance Sheet

Pro Forma Balance Sheet

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Assets

Current Assets
Cash $69,642 $125,330 $208,941 $321,996 $480,654
Other Current Assets $2,000 $2,000 $2,000 $2,000 $2,000
Total Current Assets $71,642 $127,330 $210,941 $323,996 $482,654

Long-term Assets
Long-term Assets $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0
Total Assets $71,642 $127,330 $210,941 $323,996 $482,654

Liabilities and Capital FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Current Liabilities
Accounts Payable $10,664 $2,993 $3,865 $5,098 $6,933
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $10,550 $10,550 $10,550 $10,550 $10,550
Subtotal Current Liabilities $21,214 $13,543 $14,415 $15,648 $17,483

Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $21,214 $13,543 $14,415 $15,648 $17,483

Paid-in Capital $0 $0 $0 $0 $0
Retained Earnings ($3,550) $50,427 $113,787 $196,527 $308,347
Earnings $53,977 $63,359 $82,740 $111,821 $156,823
Total Capital $50,427 $113,787 $196,527 $308,347 $465,170
Total Liabilities and Capital $71,642 $127,330 $210,941 $323,996 $482,654

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Net Worth $50,427 $113,787 $196,527 $308,347 $465,170

Table: Ratios

Ratio Analysis
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Industry Profile
Sales Growth n.a. 39.57% 30.03% 29.89% 24.95% 0.00%

Percent of Total Assets

Other Current Assets 2.79% 1.57% 0.95% 0.62% 0.41% 100.00%
Total Current Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Long-term Assets 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 29.61% 10.64% 6.83% 4.83% 3.62% 0.00%

Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Liabilities 29.61% 10.64% 6.83% 4.83% 3.62% 0.00%
Net Worth 70.39% 89.36% 93.17% 95.17% 96.38% 100.00%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative 54.90% 62.07% 61.91% 60.36% 55.51% 0.00%
Expenses
Advertising Expenses 0.19% 0.18% 0.18% 0.16% 0.16% 0.00%
Profit Before Interest and Taxes 64.43% 54.19% 54.42% 56.62% 63.55% 0.00%

Main Ratios
Current 3.38 9.40 14.63 20.70 27.61 0.00
Quick 3.38 9.40 14.63 20.70 27.61 0.00
Total Debt to Total Assets 29.61% 10.64% 6.83% 4.83% 3.62% 0.00%
Pre-tax Return on Net Worth 152.91% 79.55% 60.14% 51.81% 48.16% 0.00%
Pre-tax Return on Assets 107.63% 71.09% 56.03% 49.30% 46.42% 0.00%

Additional Ratios FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Net Profit Margin 45.10% 37.93% 38.09% 39.64% 44.49% n.a
Return on Equity 107.04% 55.68% 42.10% 36.26% 33.71% n.a

Activity Ratios
Accounts Payable Turnover 2.86 12.17 12.17 12.17 12.17 n.a
Payment Days 27 68 27 26 26 n.a
Total Asset Turnover 1.67 1.31 1.03 0.87 0.73 n.a

Debt Ratios
Debt to Net Worth 0.42 0.12 0.07 0.05 0.04 n.a
Current Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $50,427 $113,787 $196,527 $308,347 $465,170 n.a
Interest Coverage 0.00 0.00 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.60 0.76 0.97 1.15 1.37 n.a
Current Debt/Total Assets 30% 11% 7% 5% 4% n.a
Acid Test 3.38 9.40 14.63 20.70 27.61 n.a
Sales/Net Worth 2.37 1.47 1.11 0.91 0.76 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

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Table: Sales Forecast

Sales Forecast
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Unit Sales
One on One 3 5 5 0 0 0 12 21 27 35 51 75
Tutoring 3HPW
One on One 1 2 1 0 0 0 6 13 21 27 40 61
Tutoring 2HPW
Group Tutoring 1 0 1 0 0 0 3 5 7 11 18 26
3HPW
Group Tutoring 0 0 0 0 0 0 1 4 6 7 10 14
2HPW
Total Unit 5 7 7 0 0 0 22 43 61 80 119 176
Sales

Unit Prices Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
One on One $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00
Tutoring 3HPW
One on One $160.00 $160.00 $160.00 $160.00 $160.00 $160.00 $160.00 $160.00 $160.00 $160.00 $160.00 $160.00
Tutoring 2HPW
Group Tutoring $360.00 $360.00 $360.00 $360.00 $360.00 $360.00 $360.00 $360.00 $360.00 $360.00 $360.00 $360.00
3HPW
Group Tutoring $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00
2HPW

Sales
One on One $720 $1,200 $1,200 $0 $0 $0 $2,880 $5,040 $6,480 $8,400 $12,240 $18,000
Tutoring 3HPW
One on One $160 $320 $160 $0 $0 $0 $960 $2,080 $3,360 $4,320 $6,400 $9,760
Tutoring 2HPW
Group Tutoring $360 $0 $360 $0 $0 $0 $1,080 $1,800 $2,520 $3,960 $6,480 $9,360
3HPW
Group Tutoring $0 $0 $0 $0 $0 $0 $240 $960 $1,440 $1,680 $2,400 $3,360
2HPW
Total Sales $1,240 $1,520 $1,720 $0 $0 $0 $5,160 $9,880 $13,800 $18,360 $27,520 $40,480

Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Direct Cost of
Sales

Table: Personnel

Personnel Plan
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Tutors $40 $70 $70 $0 $0 $0 $220 $430 $610 $800 $1,190 $1,760
Floor Managers $1,200 $1,200 $1,200 $0 $0 $0 $3,600 $3,600 $3,600 $3,600 $6,000 $6,000
Total People 4 4 4 4 4 4 18 18 18 18 60 60

Total Payroll $1,240 $1,270 $1,270 $0 $0 $0 $3,820 $4,030 $4,210 $4,400 $7,190 $7,760

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Table: Profit and Loss

Pro Forma Profit and

Loss
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Sales $1,240 $1,520 $1,720 $0 $0 $0 $5,160 $9,880 $13,800 $18,360 $27,520 $40,480
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $1,240 $1,520 $1,720 $0 $0 $0 $5,160 $9,880 $13,800 $18,360 $27,520 $40,480
Gross Margin % 100.00% 100.00% 100.00% 0.00% 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $1,240 $1,270 $1,270 $0 $0 $0 $3,820 $4,030 $4,210 $4,400 $7,190 $7,760
Marketing/Promotion $50 $0 $0 $0 $0 $80 $0 $0 $0 $100 $0 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Insurance 15% $20 $20 $20 $0 $0 $0 $100 $100 $100 $100 $300 $300
PayAnywhere 15% $3 $4 $4 $0 $0 $0 $14 $27 $40 $53 $80 $118
Phone 15% $45 $45 $45 $45 $45 $45 $45 $45 $45 $45 $45 $45
School Fees 15% $6 $1 $8 $0 $0 $0 $36 $193 $324 $473 $691 $1,124
Supplies $25 $0 $0 $0 $0 $525 $0 $0 $0 $0 $0 $0

Total Operating $1,539 $1,490 $1,497 $195 $195 $800 $4,165 $4,545 $4,869 $5,321 $8,456 $9,497
Expenses

Profit Before Interest ($299) $30 $223 ($195) ($195) ($800) $995 $5,335 $8,931 $13,039 $19,064 $30,983
and Taxes
EBITDA ($299) $30 $223 ($195) ($195) ($800) $995 $5,335 $8,931 $13,039 $19,064 $30,983
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($90) $9 $67 ($59) ($59) ($240) $299 $1,601 $2,679 $3,912 $5,719 $9,295

Net Profit ($210) $21 $156 ($137) ($137) ($560) $697 $3,735 $6,252 $9,127 $13,345 $21,688
Net Profit/Sales -16.90% 1.38% 9.08% 0.00% 0.00% 0.00% 13.50% 37.80% 45.30% 49.71% 48.49% 53.58%

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Table: Cash Flow

Pro Forma Cash

Flow
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Cash Received

Cash from
Operations
Cash Sales $1,240 $1,520 $1,720 $0 $0 $0 $5,160 $9,880 $13,800 $18,360 $27,520 $40,480
Subtotal Cash $1,240 $1,520 $1,720 $0 $0 $0 $5,160 $9,880 $13,800 $18,360 $27,520 $40,480
from Operations

Additional Cash
Received
Sales Tax, VAT, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST
Received
New Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities (interest-
free)
New Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Sales of Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
Subtotal Cash $1,240 $1,520 $1,720 $0 $0 $0 $5,160 $9,880 $13,800 $18,360 $27,520 $40,480
Received

Expenditures Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Expenditures from
Operations
Cash Spending $1,240 $1,270 $1,270 $0 $0 $0 $3,820 $4,030 $4,210 $4,400 $7,190 $7,760
Bill Payments $7 $210 $231 $289 $137 $151 $563 $693 $2,156 $3,388 $4,904 $7,120
Subtotal Spent on $1,247 $1,480 $1,501 $289 $137 $151 $4,383 $4,723 $6,366 $7,788 $12,094 $14,880
Operations

Additional Cash
Spent
Sales Tax, VAT, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Paid
Out
Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of
Current Borrowing
Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities Principal
Repayment
Purchase Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Assets
Purchase Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash $1,247 $1,480 $1,501 $289 $137 $151 $4,383 $4,723 $6,366 $7,788 $12,094 $14,880
Spent

Net Cash Flow ($7) $40 $219 ($289) ($137) ($151) $777 $5,157 $7,434 $10,572 $15,426 $25,600

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Cash Balance $4,993 $5,033 $5,252 $4,963 $4,827 $4,676 $5,453 $10,611 $18,044 $28,616 $44,042 $69,642

Table: Balance Sheet

Pro Forma
Balance
Sheet
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Assets Starting
Balances

Current
Assets
Cash $5,000 $4,993 $5,033 $5,252 $4,963 $4,827 $4,676 $5,453 $10,611 $18,044 $28,616 $44,042 $69,642
Other Current $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Assets
Total Current $7,000 $6,993 $7,033 $7,252 $6,963 $6,827 $6,676 $7,453 $12,611 $20,044 $30,616 $46,042 $71,642
Assets

Long-term
Assets
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation
Total Long- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
Total Assets $7,000 $6,993 $7,033 $7,252 $6,963 $6,827 $6,676 $7,453 $12,611 $20,044 $30,616 $46,042 $71,642

Liabilities and Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Capital

Current
Liabilities
Accounts $0 $203 $221 $284 $132 $132 $541 $622 $2,045 $3,227 $4,672 $6,752 $10,664
Payable
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Current $10,550 $10,550 $10,550 $10,550 $10,550 $10,550 $10,550 $10,550 $10,550 $10,550 $10,550 $10,550 $10,550
Liabilities
Subtotal $10,550 $10,753 $10,771 $10,834 $10,682 $10,682 $11,091 $11,172 $12,595 $13,777 $15,222 $17,302 $21,214
Current
Liabilities

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total $10,550 $10,753 $10,771 $10,834 $10,682 $10,682 $11,091 $11,172 $12,595 $13,777 $15,222 $17,302 $21,214
Liabilities

Paid-in $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Capital
Retained ($3,550) ($3,550) ($3,550) ($3,550) ($3,550) ($3,550) ($3,550) ($3,550) ($3,550) ($3,550) ($3,550) ($3,550) ($3,550)
Earnings
Earnings $0 ($210) ($189) ($32) ($169) ($305) ($865) ($169) $3,566 $9,817 $18,945 $32,289 $53,977
Total Capital ($3,550) ($3,760) ($3,739) ($3,582) ($3,719) ($3,855) ($4,415) ($3,719) $16 $6,267 $15,395 $28,739 $50,427
Total $7,000 $6,993 $7,033 $7,252 $6,963 $6,827 $6,676 $7,453 $12,611 $20,044 $30,616 $46,042 $71,642
Liabilities and
Capital

Net Worth ($3,550) ($3,760) ($3,739) ($3,582) ($3,719) ($3,855) ($4,415) ($3,719) $16 $6,267 $15,395 $28,739 $50,427

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