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 Table of Contents

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

1.1 Mission...........................................................................................................................................2
1.2 Keys to Success.........................................................................................................................2
1.3 Objectives....................................................................................................................................2
1.4 Risks...............................................................................................................................................2
Chart: Highlights...........................................................................................................................3
2.0 Company Summary......................................................................................................................3
2.1 Company Ownership................................................................................................................3
2.2 Start-up Summary....................................................................................................................4
Table: Start-up..............................................................................................................................4
Table: Start-up Funding.............................................................................................................5
Chart: Start-up..............................................................................................................................6
3.0 Products and Services.................................................................................................................6
3.1 Product and Service Description.........................................................................................6
3.2 Competitive Comparison........................................................................................................7
3.3 Fulfillment....................................................................................................................................7
3.4 Technology...................................................................................................................................7
3.5 Future Products and Services...............................................................................................7
4.0 Market Analysis Summary.........................................................................................................8
4.1 Market Segmentation..............................................................................................................8
Table: Market Analysis................................................................................................................8
Chart: Market Analysis (Pie).....................................................................................................9
4.2 Service Business Analysis......................................................................................................9
4.2.1 Competition and Buying Patterns...............................................................................9
4.3 Target Market Segment Strategy.....................................................................................10
5.0 Strategy and Implementation Summary...........................................................................10
5.1 Milestones..................................................................................................................................10
Table: Milestones........................................................................................................................10
Chart: Milestones........................................................................................................................11
5.2 Value Proposition.....................................................................................................................11
5.3 Competitive Edge....................................................................................................................11
5.4 Marketing Strategy.................................................................................................................11
5.4.1 Pricing Strategy...............................................................................................................12
5.4.2 Promotion Strategy........................................................................................................12
5.5 Sales Strategy..........................................................................................................................12
5.5.1 Sales Forecast..................................................................................................................12
Chart: Sales by Year..............................................................................................................14
Table: Sales Forecast............................................................................................................13
Chart: Sales Monthly.............................................................................................................14
6.0 Management Summary.............................................................................................................14
6.1 Personnel Plan..........................................................................................................................15
Table: Personnel..........................................................................................................................15
7.0 Financial Plan................................................................................................................................15
7.1 Important Assumptions........................................................................................................16

Page 1
 Table of Contents

Table: General Assumptions...................................................................................................16

7.2 Break-even Analysis...............................................................................................................16
7.2 Break-even Analysis...............................................................................................................16
Chart: Break-even Analysis....................................................................................................17
Table: Break-even Analysis....................................................................................................16
7.3 Projected Profit and Loss.....................................................................................................17
7.3 Projected Profit and Loss.....................................................................................................17
Chart: Profit Monthly.................................................................................................................17
Chart: Profit Yearly.....................................................................................................................18
Chart: Gross Margin Monthly.................................................................................................18
Chart: Gross Margin Yearly.....................................................................................................19
Table: Profit and Loss................................................................................................................19
7.4 Projected Cash Flow...............................................................................................................20
7.4 Projected Cash Flow...............................................................................................................20
Table: Cash Flow.........................................................................................................................20
Chart: Cash...................................................................................................................................21
7.5 Projected Balance Sheet......................................................................................................22
Table: Balance Sheet.................................................................................................................22
7.6 Business Ratios........................................................................................................................22
7.6 Business Ratios........................................................................................................................22
Table: Ratios.................................................................................................................................23
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: General Assumptions.............................................................................................................3
Table: General Assumptions.............................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Table: Profit and Loss..........................................................................................................................4
Table: Cash Flow...................................................................................................................................5
Table: Cash Flow...................................................................................................................................5
Table: Balance Sheet...........................................................................................................................6
Table: Balance Sheet...........................................................................................................................6

Page 2
 Stroll Net

1.0 Executive Summary

Stroll Net will provide a unique forum for communication and entertainment through the
medium of public Internet access. In the first year, we will set up 16 Internet-enabled pay-
kiosks in public spaces throughout Tech City, in locations frequented by business travelers and
students, but with no nearby internet cafes or other similar competition. Our flagship location
will be next to the downtown bus and train station, where, for less than a dollar, travelers can
check email, locate phone numbers, and look up directions on any of the multiple online-
mapping sites. They can also simply surf the net, as their time and budget allows. By accepting
both real money (coins and dollar bills) and credit cards, we can catch both the casual browser
and the traveler with money to burn.

Stroll Net is the answer to an increasing demand. Americans want access to the methods of
communication and volumes of information now available on the Internet, at a cost they can
afford, and in such a way that they aren't confined to a bedroom or office desk. Stroll Net's goal
is to provide the community with a convenient and affordable way to access the Internet away
from home and the office.

This business plan is prepared to obtain financing in the amount of $299,671. The supplemental
financing is required to begin the purchase of public Internet terminals, the purchase of an
office warehouse, office equipment and supplies and company vehicles, and to cover expenses
in the first year of operations. Additional financing has already been secured in the form of
$10,500 of personal savings from owners Cam Piotr and Bob Green, and a long-term loan of
$100,000.

Stroll Net will be incorporated as a Limited Liability Corporation. This will shield the
owners, Cam Piotr and Bob Green, from issues of personal liability and double taxation. The
investors will be treated as shareholders and therefore will not be liable for more than their
individual personal investment of $5,250 each.

The financing, in addition to the capital contributions from the owners, will allow Stroll Net to
successfully open and maintain operations through year one. The large initial capital investment
will allow Stroll Net to provide its clients and customers with the most innovative public Internet
terminal available. A unique and innovative product is required to provide the customers with a
service that is insurmountable by any competition. Successful operation in year one will provide
Stroll Net a customer base that will allow it to be self-sufficient in year two.

For an investment of $299,671, we project dividends of $100,000 in year two, and $200,000 in
year three, depending on cash flows. These projections are based on actual business revenues
from similar start-up customers of our internet kiosk supplier in other states. In the first year,
with a break-even point of $42,599 per month, we expect revenues of $727,072 and net profit
of 18.5%, or $134,305. By year three, revenues will increase to $1,136,067, and the net worth
of Stroll Net will increase to $610,320. Dividends thereafter will depend on cash flows; in year
five, investors will have the option of being bought out by the company owners.

Page 1
 Stroll Net

1.1 Mission

As the popularity of the Internet continues to grow at an exponential rate, easy and affordable
access is quickly becoming a necessity of life. Stroll Net will provide internet users and business
travelers alike the ability to access the Internet, via our public Internet terminals or a wireless
WiFi connection away from home and the office. For a minimal fee, internet users, young and
old, will be able to access the internet while they stay in hotels, wait at airports, shop in
shopping malls and so on.   

We look to be the leader in introducing an innovative and quality public Internet terminal to our
current market. We will add value to our community by maintaining a quality product and
providing a valuable service. Our terminals will utilize the most advance technologies and our
staff will possess the utmost in customer service experience.   

1.2 Keys to Success

As a start-up company, new to the industry, we must be focused and work hard to create an
acceptance for ourselves and our products and services within the marketplace. The keys to our
success are:

 The placement of an innovative product and quality service that is able to both expand
existing markets and create new ones.
 A steady, disciplined pattern of growth.
 The development of a good relationship with clients and customers.

1.3 Objectives

Stroll Net's objectives for the first year of operation include:

 The introduction of an innovative product that offers an affordable and convenient way for
Internet users to access the Internet away from home.  
 The creation of a unique environment that allows traveling business people access to their
own files and programs.
 The placement of 100 public Internet terminals operating throughout the North MyState
area.

For the following two years our growth objectives includes:

 A growth in public Internet terminals placed by 20% each year.

 A growth in revenues by 25% per year.  

1.4 Risks

The risks involved with starting Stroll Net are:

 Will there be a demand for the services offered by Stroll Net in Tech City?
 Will the popularity of the Internet continue to grow, or is the Internet a fad?
 Will individuals be willing to pay for the service Stroll Net offers?
 Will the cost of accessing the Internet from home drop so significantly that there will not be
a market for public Internet terminals?

Page 2
 Stroll Net

Chart: Highlights

Highlights

$1,200,000

$1,000,000

$800,000 Sales

Gross Margin
$600,000
Net Profit

$400,000

$200,000

$0
Year 1 Year 2 Year 3

2.0 Company Summary

Stroll Net, soon to be located on the south side of Tech City, MyState, will offer the
community convenient and affordable way to access the Internet away from home and the
office. Stroll Net's public Internet terminals will provide full access to email, video email, the
Web and other applications, such as a prepaid storefront. Stroll Net will provide clients and
customers with a unique and innovative product and service.

Stroll Net's public Internet terminals will appeal to individuals of all ages and backgrounds.
The ease-of-use and instructional menu will appeal to the audience that does not associate
themselves with the computer age. Great locations, such as hotel lobbies and coffee shops, will
provide business people with a convenient way to access the Internet and office files away from
the office.

2.1 Company Ownership

Stroll Net is a privately-held Limited Liability Corporation. Cam Piotr and Bob Green, co-
founders of Stroll Net, hold equal stock positions of 26% each as majority owners. Investors
will receive one share of Stroll Net stock for every $6,244 of investment, up to 48%.

Page 3
 Stroll Net

2.2 Start-up Summary

Stroll Net's start-up costs will cover the purchase of public Internet terminals (our long-term
assets), the purchase of an office warehouse, office equipment and supplies, company vehicles,
capital to cover losses in the first year, and capital to cover any and all expenses required to
operate business on a daily basis for the first year.

Short-term Assets - Fixtures: 2 computers = $4,600, one printer = $1,000, one scanner =

$500, 4 tables w/chairs = $2,600, 2 computer desks w/chairs = $2,400, three telephones =
$300, for a total fixture cost of $11,400.

In addition, we plan on a large initial marketing/design budget, to cover the kiosk design and
grand opening advertising.

Table: Start-up

Start-up

Requirements

Start-up Expenses
Marketing/Advertising $4,000
Design Fee $14,100
Freight $6,250
Utilities $500
Professional Fees $1,500
Insurance $1,500
Supplies $500
Postage $111
Total Start-up Expenses $28,461

Start-up Assets
Cash Required $60,000
Other Current Assets $11,400
Long-term Assets $312,810
Total Assets $384,210

Total Requirements $412,671

Page 4
 Stroll Net

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $28,461
Start-up Assets to Fund $384,210
Total Funding Required $412,671

Assets
Non-cash Assets from Start-up $324,210
Cash Requirements from Start-up $60,000
Additional Cash Raised $0
Cash Balance on Starting Date $60,000
Total Assets $384,210

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $2,500
Other Current Liabilities (interest-free) $0
Total Liabilities $102,500

Capital

Planned Investment
Mr. Cam Piotr $5,250
Mr. Bob Green $5,250
Additional Investment Requirement $299,671
Total Planned Investment $310,171

Loss at Start-up (Start-up Expenses) ($28,461)

Total Capital $281,710

Total Capital and Liabilities $384,210

Total Funding $412,671

Page 5
 Stroll Net

Chart: Start-up

Start-up

$400,000

$360,000

$320,000

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0
Expenses Assets Investment Loans

3.0 Products and Services

Stroll Net's public Internet terminals will provide customers full access to email, video
email, WWW and other applications such as a prepaid storefront. Stroll Net will provide clients
and customers with a unique and innovative product and service.

3.1 Product and Service Description

Walk-up Internet Access: Customers pay with either cash or credit card and receive a
specific amount of time on the terminal in exchange for their payment. Customers can surf the
Internet, check email and send video email.

Wireless Internet Access: Away from the home, WiFi users can access the Internet through
our Wireless Hotspots.

Prepaid Storefront: An application that allows customers to purchase products such as

Prepaid Calling Cards, Prepaid Wireless Top-up, and Prepaid Mobile Content (games, graphics,
ring tones, etc.).

Multimedia Advertising: Local, regional, or national companies can advertise using

multimedia on-screen advertisements. Advertisements consist of full motion video
"commercials," picture files, or twelve advertising buttons.

Technical Specifications

 Wheelchair Accessible
 Front access for easy service and maintenance
 15.1 inch touch screen LCD monitor
 Industrial spill and vandal proof keyboard

Page 6
 Stroll Net

 Web Camera with integrated microphone

 Bill Acceptor and Credit Card Reader
 Stereo Speakers
 Wireless Router
 Surfnet Premier

PC Specifications

 2.4GHz Celeron Processor

 40GB hard Drive
 256MB DDR-RAM
 52X CD-ROM
 Floppy Drive
 Windows XP Professional
 3-Year Hotswap

3.2 Competitive Comparison

Stroll Net will be first to place public Internet Terminals in Tech City. Stroll Net will differentiate
itself from other ISPs in Tech City by providing its customers with the ability to access the
Internet even when they are away from their own computer.

We do not expect to replace standard internet access options (home, school, and work-based
computers), but to supplement them; similar ventures, such as Internet cafes, have seen great
success.

3.3 Fulfillment

Stroll Net will obtain its public Internet terminals from Supplier One, Inc. located in Vancouver,

BC. Supplier One, Inc. will provide the locating service and the hardware required to run Stroll
Net. Internet access and networking will be provided through Supplier Two.

3.4 Technology

Stroll Net will invest in terminals with high-speed computers to provide its customers with a
fast and efficient connection to the Internet. The computers will be reliable and fun to work
with. Stroll Net will continue to upgrade and modify the systems to stay current with
communications technology. One of the main attractions associated with public Internet
terminals is the state of the art equipment available for use. Not everyone has a Pentium PC in
their home or office.

3.5 Future Products and Services

To enhance our initial product line, we will look at a newer model of Supplier One terminal that
offers a greater variety of technologies.  

As we increase our presence in the public Internet access business, we will continue to seek out
applications that will allow us to offer a greater variety of services. A key component of this will
be customer feedback.  

Page 7
 Stroll Net

4.0 Market Analysis Summary

Stroll Net is faced with the exciting opportunity of being the first-mover in the Tech City public
Internet market. The attractiveness of convenience, combined with the growing interest in the
Internet, has been proven to be a winning concept in other markets and will produce the same
results in Tech City.

The explosion of the Internet has been well documented. The International Data Corporation
predicts that by 2004 there will be 210 million Internet users in the U.S. alone. Our increasingly
mobile society manes that a large percentage of these users will access the Internet through
public Internet terminals. 

Research has confirmed that the demand for public Internet terminals is growing exponentially
and that the number of terminals in operation worldwide will reach 434,000 by 2006. By 2007
the number of wireless Hotspots in the U.S. is expected to grow to 41,000 and generate in
excess of $3 billion in revenue.

4.1 Market Segmentation

Stroll Net's clients can be described as individual business owners and medium to large
companies that provide a services to tourist and business travelers alike as well as students
and everyday Internet users. Such clients include, but are not limited to; airports, hotels, truck
stops and coffee shops. 

Our customers can be divided into two groups. The first group is familiar with the Internet and
desires a convenient and affordable way to access the Internet away from home and their
offices. The second group is not familiar with the Internet, yet, and is just waiting for the right
opportunity to enter the online community. Stroll Net's target market includes people between
the ages of 18 and 65. According to the 2000 U.S. Census, Tech County has roughly 490,693
residents between the ages of 18 and 65. Of these, many are already internet-savvy.

Within this group, we will target two groups in particular:

 Students
 Traveling Business People

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Students 2% 35,000 35,700 36,414 37,142 37,885 2.00%
Traveling Professionals 3% 24,000 24,720 25,462 26,226 27,013 3.00%
Other 0% 900 900 900 900 900 0.00%
Total 2.38% 59,900 61,320 62,776 64,268 65,798 2.38%

Page 8
 Stroll Net

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Students

Traveling Professionals

Other

4.2 Service Business Analysis

The explosion of the Internet has been well documented. Our increasingly mobile society means
that a large percentage of these users will access the Internet through public Internet
terminals. To be proactive and remain competitive it is imperative for business travelers to
have reliable high-speed access to e-mail, the Internet and corporate networks. As such, it is
becoming a standard for business travelers to stay only at hotels with high-speed Internet
access and public Internet terminals.

Internet terminals with integrated Wi-Fi hotspots allow users to jump onto the Internet as
easily as they would use an ATM. Our Internet terminals allow the public to experience rich
multimedia content, that cannot be viewed on PDAs. Internet kiosks will very quickly become a
standard feature of all hotels. The growth of Internet kiosks has very closely paralleled that of
ATMs and payphones.

The fact that there are no public Internet terminals operating in Tech City, presents Stroll Net
with a chance to seize this window of opportunity and enter into a profitable niche.

4.2.1 Competition and Buying Patterns

The main competitors in the public Internet terminal segment are ATT and BellSouth. However,
these businesses have yet to establish a presence in Tech City and the immediate surrounding
areas.

Competition from online service providers comes from locally-owned businesses as well as
national firms. Due to the nature of the Internet, there are no geographical boundaries
restricting competition. However, none of these online service providers have public Internet
terminals available for placement.

Page 9
 Stroll Net

4.3 Target Market Segment Strategy

Stroll Net's public Internet terminals will be a magnet for local and traveling professionals who
desire to work or check their email messages away from the office. These professionals will
either use Stroll Net's terminals, or connect their notebooks to our wireless WiFi Internet
connection. Stroll Net's target market covers a wide range of ages: from members of
Generation X who grew up surrounded by computers, to Baby Boomers who have come to the
realization that people today cannot afford to ignore computers.

5.0 Strategy and Implementation Summary

The important strategy focuses on pulling in power Internet users. Power Internet users are
extremely familiar with the Internet and its offerings. This group of customers include students
and business professionals.

The second strategy focuses on building a large loyal customer base. A large loyal
customer base will serve to attract large, medium and small companies as clients for our
interactive advertising service.  All of the advertisements can connect the user to the
advertiser's web site. Due to the high traffic locations in which our public Internet terminals will
be placed, this advertising space will be in high demand.

5.1 Milestones

The Stroll Net management team has established some basic milestones to keep the business
plan priorities in place. Responsibility for implementation falls on the shoulders of Cam Piotr.
This Milestones Table below will be updated as the year progresses using the actual tables. New
milestones will be added as the first year of operations commences.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Business Plan 10/1/2004 11/15/2004 $1,000 Cam Piotr Admin
Licensing 11/22/2004 11/27/2004 $1,000 Cam Piotr Admin
Secure Start-up Funding 11/29/2004 1/1/2005 $1,000 Cam Piotr Admin
Site Selection 1/15/2005 2/20/2005 $1,000 Cam Piotr Admin
Architect Designs 3/1/2005 3/30/2005 $1,000 Cam Piotr Admin
Designer Proposal 4/1/2005 4/15/2005 $1,000 Cam Piotr Admin
Technology Design 4/1/2005 4/15/2005 $1,000 Cam Piotr Admin
Year 1 Plan 6/1/2005 6/9/2005 $1,000 Cam Piotr Admin
Personnel Plan 7/1/2005 7/5/2005 $1,000 Cam Piotr Admin
Accounting Plan 7/1/2005 7/5/2005 $1,000 Cam Piotr Admin
Totals $10,000

Page 10
 Stroll Net

Chart: Milestones

Milestones

Business Plan

Licensing

Secure Start-up Funding

Site Selection

Architect Designs

Designer Proposal

Technology Design

Year 1 Plan

Personnel Plan

Accounting Plan
Oct `04 Nov Dec Jan `05 Feb Mar Apr May Jun

5.2 Value Proposition

WiFi hotspots offering public Internet access are everywhere you look today, from cafes to
hotels, from airports to marinas. Connectivity is what travelers want, and more importantly, are
coming to expect. Travelers are making decisions on where to eat, sleep and work based on the
availability of wireless service.

Clients offering public internet access will be able to tap into new revenue streams and new
customers, and create loyalty.

Stroll Net's public Internet terminals make it easy to provide convenient and easy access to
wireless high-speed Internet connectivity. With Stroll Net's public Internet
terminals customers will be able to connect to their corporate networks and the Internet via a
high-speed wireless connection in common areas.

5.3 Competitive Edge

Stroll Net will differentiate itself by providing the community with an innovative product that
offers a convenient and affordable way to access the Internet away from home and the office.
Stroll Net will enjoy the traditional benefits of being first to the market. As a small company
looking to establish itself, we will be attentive and flexible in meeting our customers' demands. 

5.4 Marketing Strategy

Stroll Net will position itself as an aggressive, innovative company that supplies the market with
an affordable way to access the Internet away from home and the office. Stroll Net will use
advertising as its main source of promotion. We will acquire the services of Empire
Communications Group and CyberMark International, Inc. to launch a diverse advertising
campaign placed on television, radio, the Internet and in the local newspaper. 

Page 11
 Stroll Net

Stroll Net's brochures, letterhead and business correspondence will further reinforce these
concepts. We also recognize that it costs six times more to attract a customer than to retain
one. With this in mind, we will operate under the principle that our best marketing is an
exceedingly satisfied customer.    

5.4.1 Pricing Strategy

Stroll Net bases its prices for Internet and wireless WiFi usage on the "retail profit analysis"
provided by our supplier, Supplier One, Inc. They have been in the kiosk industry for 5 years
and has developed a solid pricing strategy.

Determining a fair-market, per-transaction fee for Internet and wireless WiFi usage is more

difficult because there is no direct competition from another public internet terminal business in
Tech City. Therefore, Stroll Net considered two sources to determine the hourly charge rate.
First, we considered the cost to use other Internet servers, whether it is a local networking firm
or a provider such as America Online. Internet access providers use different pricing schemes.
Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use
a strategy with a combination of both pricing schemes. Thus, it can quickly become a high
monthly cost for the individual. Second, Stroll Net looked at how public Internet terminals in
other markets, such as Miami and New York, went about pricing Internet access.  Evaluating
these two factors resulted in the following:

Walk-up Internet Access - Customers utilizing the terminals for internet access will be
charged a .25 per minute transaction fee.

Wireless Internet Access - Customers utilizing the wireless WiFi connection will incur a fee of
$3.95 per hour with a one hour minimum.

5.4.2 Promotion Strategy

Stroll Net will implement a pull strategy in order to build consumer awareness and demand.
Initially, Stroll Net has budgeted $5,000 for promotional efforts which will include advertising
with coupons for fifteen minutes of free Internet time.

Stroll Net realizes that in the future, when competition enters the market, additional revenues
must be allocated for promotion in order to maintain market share.

5.5 Sales Strategy

Stroll Net employs route operators to collect all sales transactions and to perform routine

maintenance on its terminals. Each route operator is responsible for keeping the terminals on
his route stocked, clean and operational. Computer literacy is a requirement for Stroll Net
employees. If an employee does not possess basic computer skills when they are hired, they
are trained by our full-time technician. Our full-time technician is also available for terminals in
need of minor repairs. Stroll Net's commitment to prompt, dependable service is one of the key
factors that distinguishes Stroll Net from all other competitors.

5.5.1 Sales Forecast

Our Sales Forecast is based upon real revenue reports from other customers of Supplier One,
operating in similar urban settings in nearby states. Prepaid products and advertising will yield

Page 12
 Stroll Net

the greatest revenue per unit, but we expect the greatest number of transactions will be in
walk-up internet access and Wifi access.

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Walk-Up Internet Access 48,787 60,984 76,230
Wireless WiFi Access 23,092 28,865 36,081
Prepaid Products 19,677 24,596 30,745
Multimedia Advertising 5,854 7,318 9,147
Total Unit Sales 97,411 121,763 152,203

Unit Prices Year 1 Year 2 Year 3

Walk-Up Internet Access $3.00 $3.00 $3.00
Wireless WiFi Access $3.95 $3.95 $3.95
Prepaid Products $10.00 $10.00 $10.00
Multimedia Advertising $50.00 $50.00 $50.00

Sales
Walk-Up Internet Access $146,361 $182,951 $228,689
Wireless WiFi Access $91,215 $114,017 $142,521
Prepaid Products $196,774 $245,963 $307,453
Multimedia Advertising $292,721 $365,875 $457,344
Total Sales $727,071 $908,806 $1,136,007

Direct Unit Costs Year 1 Year 2 Year 3

Walk-Up Internet Access $0.60 $0.60 $0.60
Wireless WiFi Access $0.40 $0.40 $0.40
Prepaid Products $1.00 $1.00 $1.00
Multimedia Advertising $5.00 $5.00 $5.00

Direct Cost of Sales

Walk-Up Internet Access $29,272 $36,590 $45,738
Wireless WiFi Access $9,122 $11,402 $14,252
Prepaid Products $19,677 $24,596 $30,745
Multimedia Advertising $29,272 $36,588 $45,734
Subtotal Direct Cost of Sales $87,343 $109,176 $136,470

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 Stroll Net

Chart: Sales by Year

Sales by Year

11 12
$1,200,000

10 Month
9 Month
$1,000,000

8 Month
Walk-Up Internet Access

7 Month
$800,000
Wireless WiFi Access

6 Month
$600,000 Prepaid Products

5 Month
Multimedia Advertising

4 Month
$400,000

3 Month
2 Month
$200,000
1 Month

$0
Month

Year 1 Year 2 Year 3

Month

Chart: Sales Monthly

Sales Monthly
$160,000

$140,000

$120,000 Walk-Up Internet Access

$100,000 Wireless WiFi Access
$80,000 Prepaid Products
$60,000 Multimedia Advertising
$40,000

$20,000

$0

6.0 Management Summary

Stroll Net is owned and operated by Cam Piotr and Bob Green. The company, being small in
nature, requires a simple organizational structure. Implementation of this organizational form
calls for the owners to make all of the major management decisions in addition to monitoring all
other business activities.

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 Stroll Net

6.1 Personnel Plan

The staff will consist of 8 full-time route operators working forty hours a week at $10.00 per
hour. In addition, one full-time technician (who is more technologically oriented to handle minor
terminal repairs/inquiries) will be employed to work forty hours a week at $12.00 per hour. This
simple structure provides a great deal of flexibility and allows communication to disperse
quickly and directly. Because of these characteristics, there are few coordination problems seen
at Stroll Net that are common within larger organizational chains. This strategy will enable
Stroll Net to react quickly to changes in the market.

Table: Personnel

Personnel Plan
Year 1 Year 2 Year 3
Lorenzo Mitchell $42,889 $49,680 $59,616
Herman Albany $42,889 $49,680 $59,616
Technician $25,920 $27,040 $29,120
Route Drivers $172,800 $183,040 $199,680
Future Staff $0 $0 $49,920
Total People 11 11 13

Total Payroll $284,498 $309,440 $397,952

7.0 Financial Plan

Sales: Stroll Net is basing their projected Internet usage sales on the financial snapshot
information provided to them by Supplier One, Inc. Internet usage was estimated by calculating
the average number of minutes each customer will spend accessing the Internet and then
generating a conservative estimate as to how many transactions will be made per day.

Cost of Goods Sold: The cost of goods sold was determined by the "retail profit analysis" we
obtained from Supplier One, Inc. The cost of prepaid calling cards is 20% of the selling price.
The cost of Internet access is $50 per month, paid to Supplier Two for networking fees. The
cost of terminal placement is 20% of total internet access sales.

Salaries Expense: The founders of Stroll Net, Cam Piotr and Bob Green, will receive a salary
of $24,000 in year one, $26,400 in year two, and $29,040 in year three.

Payroll Expense: Stroll Net intends to hire eight full-time employees at $10.00/hour and a

full-time technician at $12.00/hour. The total cost of employing nine people at these rates for
the first year is $14,720/month.

Rent Expense: Stroll Net is looking to purchase a 2200 square foot facility at $104.74/sq. foot.

Utilities Expense: Stroll Net is responsible for the payment of utilities including electric, water
and garbage disposal. The basic monthly service charge for utilities expense will be $168.04.
The phone bill will generated by five phone lines; one will be dedicated to a modem and four for
business purposes. The basic monthly service charge for each line provided by Bellsouth is
$59.95/month. Therefore, the total cost associated with the five phone lines is estimated at
$299.75/month.

Marketing Expense: Stroll Net will allocate $50,000 for promotional expenses at the time of
start-up. These dollars will be used for advertising on television, radio, the Internet and
Page 15
 Stroll Net

the local newspapers in order to build consumer awareness. For additional information, please
refer to section 5.0 of the business plan.

Insurance Expense: Stroll Net has allocated $1,500 for insurance for the first year. As
revenue increases in the second and third year of business, Stroll Net intends to invest more
money for additional insurance coverage.

Legal and Consulting Fees: The cost of obtaining legal consultation in order to draw up the
paper work necessary for client contracts is $1,500.

Depreciation: In depreciating our capital equipment, we used the Modified Accelerated Cost
Recovery Method. We depreciated our terminals over a three-year time period.

Taxes: Stroll Net is an LLC and, as an entity, it is not taxed. However, there is a 10% payroll
burden.

7.1 Important Assumptions

Basic assumptions are presented in the table below.

Table: General Assumptions

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 11.50% 10.00% 10.00%
Tax Rate 25.00% 25.00% 25.42%
Other 0 0 0

7.2 Break-even Analysis

Break-even data is presented in the chart and table below. With estimated monthly operating
expenses at approximately $37,400, including everything from payroll to rent and insurance to
maintenance of the kiosks, and average direct costs at roughly 90¢ for every $7.46 of sales, we
reach break-even at approximately 5,700 sales per month. We project reaching the break-even
point in the seventh month.

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 5,166

Monthly Revenue Break-even $38,557

Assumptions:
Average Per-Unit Revenue $7.46
Average Per-Unit Variable Cost $0.90
Estimated Monthly Fixed Cost $33,925

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 Stroll Net

Chart: Break-even Analysis

Break-even Analysis
$40,000

$30,000

$20,000

$10,000

$0

($10,000)

($20,000)

($30,000)
0 2000 4000 6000 8000 10000
1000 3000 5000 7000 9000 11000

7.3 Projected Profit and Loss

The following table contains our projections for profit and loss data. We anticipate a net profit of
approximately $134,300 in the first year, as the Stroll Net idea catches on and sales increase.
With a net profit margin of 18%, these projections are well within a reasonable range.

Chart: Profit Monthly

Profit Monthly

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

($10,000)

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

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 Stroll Net

Chart: Profit Yearly

Profit Yearly

$320,000

$280,000

$240,000

$200,000

$160,000

$120,000

$80,000

$40,000

$0
Year 1 Year 2 Year 3

Chart: Gross Margin Monthly

Gross Margin Monthly

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12

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 Stroll Net

Chart: Gross Margin Yearly

Gross Margin Yearly

$1,000,000

$900,000

$800,000

$700,000

$600,000
$500,000

$400,000

$300,000

$200,000

$100,000

$0
Year 1 Year 2 Year 3

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $727,071 $908,806 $1,136,007
Direct Cost of Sales $87,343 $109,176 $136,470
Other $0 $0 $0
Total Cost of Sales $87,343 $109,176 $136,470

Gross Margin $639,728 $799,630 $999,537

Gross Margin % 87.99% 87.99% 87.99%

Expenses
Payroll $284,498 $309,440 $397,952
Sales and Marketing and Other Expenses $53,598 $59,174 $68,279
Depreciation $44,676 $45,000 $45,000
Utilities $5,613 $6,174 $6,792
Insurance $1,500 $6,000 $7,500
Maintenence/Repairs $3,500 $4,200 $5,800
Travel $13,717 $24,652 $29,961
Payroll Taxes $0 $0 $0

Total Operating Expenses $407,102 $454,640 $561,284

Profit Before Interest and Taxes $232,626 $344,990 $438,253

EBITDA $277,302 $389,990 $483,253
Interest Expense $10,877 $8,500 $7,500
Taxes Incurred $55,437 $84,122 $109,483

Net Profit $166,311 $252,367 $321,270

Net Profit/Sales 22.87% 27.77% 28.28%

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 Stroll Net

7.4 Projected Cash Flow

Cash flow data for the first three years is presented in the chart and table below. The table
shows anticipated repayment of the long-term loan, as well as projected dividends which will
be paid to investors in years two and three. In year three, we will purchase two more paykiosks
terminals for new locations. The more detailed monthly cash flow data can be found in the
appendix.

Table: Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $727,071 $908,806 $1,136,007
Subtotal Cash from Operations $727,071 $908,806 $1,136,007

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $727,071 $908,806 $1,136,007

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $284,498 $309,440 $397,952
Bill Payments $184,060 $327,202 $366,049
Subtotal Spent on Operations $468,558 $636,642 $764,001

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $10,000 $10,000 $10,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $40,000
Dividends $0 $100,000 $200,000
Subtotal Cash Spent $478,558 $746,642 $1,014,001

Net Cash Flow $248,513 $162,163 $122,006

Cash Balance $308,513 $470,676 $592,682

Page 20
 MonthMo
3
Stroll Net

MonthMonth
1 2
Chart: Cash

Cash

$280,000

$240,000

$200,000
Net Cash Flow
$160,000
Cash Balance
$120,000

$80,000

$40,000

$0

Page 21
 Stroll Net

7.5 Projected Balance Sheet

Our projected balance sheet is presented in the table below. As sales increase, and we repay
our long-term loan, the net worth of the company will increase from $281,710 at start-up to
over $610,000 by year three.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $308,513 $470,676 $592,682
Other Current Assets $11,400 $11,400 $11,400
Total Current Assets $319,913 $482,076 $604,082

Long-term Assets
Long-term Assets $312,810 $312,810 $352,810
Accumulated Depreciation $44,676 $89,676 $134,676
Total Long-term Assets $268,134 $223,134 $218,134
Total Assets $588,047 $705,210 $822,216

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $50,026 $24,822 $30,558
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $50,026 $24,822 $30,558

Long-term Liabilities $90,000 $80,000 $70,000

Total Liabilities $140,026 $104,822 $100,558

Paid-in Capital $310,171 $310,171 $310,171

Retained Earnings ($28,461) $37,850 $90,217
Earnings $166,311 $252,367 $321,270
Total Capital $448,021 $600,388 $721,658
Total Liabilities and Capital $588,047 $705,210 $822,216

Net Worth $448,021 $600,388 $721,658

7.6 Business Ratios

The following table outlines some of the more important ratios from the Data communications
services industry. The final column, Industry Profile, details specific ratios based on the industry
as it is classified by the Standard Industry Classification (SIC) code, 4899.9901.

Page 22
 Stroll Net

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 25.00% 25.00% 1.63%

Percent of Total Assets

Other Current Assets 1.94% 1.62% 1.39% 53.65%
Total Current Assets 54.40% 68.36% 73.47% 74.50%
Long-term Assets 45.60% 31.64% 26.53% 25.50%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 8.51% 3.52% 3.72% 24.78%

Long-term Liabilities 15.30% 11.34% 8.51% 18.28%
Total Liabilities 23.81% 14.86% 12.23% 43.06%
Net Worth 76.19% 85.14% 87.77% 56.94%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 87.99% 87.99% 87.99% 52.82%
Selling, General & Administrative Expenses 73.78% 60.22% 59.71% 30.92%
Advertising Expenses 6.14% 4.95% 3.96% 0.82%
Profit Before Interest and Taxes 31.99% 37.96% 38.58% 6.18%

Main Ratios
Current 6.39 19.42 19.77 1.84
Quick 6.39 19.42 19.77 1.60
Total Debt to Total Assets 23.81% 14.86% 12.23% 54.39%
Pre-tax Return on Net Worth 49.50% 56.05% 59.69% 8.03%
Pre-tax Return on Assets 37.71% 47.71% 52.39% 17.61%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 22.87% 27.77% 28.28% n.a
Return on Equity 37.12% 42.03% 44.52% n.a

Activity Ratios
Accounts Payable Turnover 4.63 12.17 12.17 n.a
Payment Days 27 45 27 n.a
Total Asset Turnover 1.24 1.29 1.38 n.a

Debt Ratios
Debt to Net Worth 0.31 0.17 0.14 n.a
Current Liab. to Liab. 0.36 0.24 0.30 n.a

Liquidity Ratios
Net Working Capital $269,887 $457,254 $573,524 n.a
Interest Coverage 21.39 40.59 58.43 n.a

Additional Ratios
Assets to Sales 0.81 0.78 0.72 n.a
Current Debt/Total Assets 9% 4% 4% n.a
Acid Test 6.39 19.42 19.77 n.a
Sales/Net Worth 1.62 1.51 1.57 n.a
Dividend Payout 0.00 0.40 0.62 n.a

Page 23
 Appendix

Table: Sales Forecast

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Walk-Up Internet Access 45% 900 1,125 1,406 1,758 2,197 2,747 3,433 4,292 5,364 6,706 8,382 10,477
Wireless WiFi Access 25% 426 533 666 832 1,040 1,300 1,625 2,031 2,539 3,174 3,967 4,959
Prepaid Products 18% 363 454 567 709 886 1,108 1,385 1,731 2,164 2,705 3,381 4,226
Multimedia Advertising 12% 108 135 169 211 264 330 412 515 644 805 1,006 1,257
Total Unit Sales 1,797 2,246 2,808 3,510 4,387 5,484 6,855 8,569 10,711 13,389 16,736 20,920

Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Walk-Up Internet Access $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
Wireless WiFi Access $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95
Prepaid Products $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Multimedia Advertising $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00

Sales
Walk-Up Internet Access $2,700 $3,375 $4,219 $5,273 $6,592 $8,240 $10,300 $12,875 $16,093 $20,117 $25,146 $31,432
Wireless WiFi Access $1,683 $2,103 $2,629 $3,287 $4,108 $5,135 $6,419 $8,024 $10,030 $12,537 $15,671 $19,589
Prepaid Products $3,630 $4,538 $5,672 $7,090 $8,862 $11,078 $13,847 $17,309 $21,636 $27,046 $33,807 $42,259
Multimedia Advertising $5,400 $6,750 $8,438 $10,547 $13,184 $16,479 $20,599 $25,749 $32,187 $40,233 $50,291 $62,864
Total Sales $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144

Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Walk-Up Internet Access 20.00% $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60
Wireless WiFi Access 10.00% $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40
Prepaid Products 10.00% $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Multimedia Advertising 10.00% $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00

Direct Cost of Sales

Walk-Up Internet Access $540 $675 $844 $1,055 $1,318 $1,648 $2,060 $2,575 $3,219 $4,023 $5,029 $6,286
Wireless WiFi Access $168 $210 $263 $329 $411 $514 $642 $802 $1,003 $1,254 $1,567 $1,959
Prepaid Products $363 $454 $567 $709 $886 $1,108 $1,385 $1,731 $2,164 $2,705 $3,381 $4,226
Multimedia Advertising $540 $675 $844 $1,055 $1,318 $1,648 $2,060 $2,575 $3,219 $4,023 $5,029 $6,286
Subtotal Direct Cost of Sales $1,611 $2,014 $2,518 $3,147 $3,934 $4,917 $6,147 $7,683 $9,604 $12,005 $15,006 $18,758

Page 1
 Appendix

Table: Personnel

Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Lorenzo Mitchell 0% $3,289 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Herman Albany 0% $3,289 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Technician 0% $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160
Route Drivers 0% $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400
Future Staff 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 11 11 11 11 11 11 11 11 11 11 11 11

Total Payroll $23,138 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760

Page 2
 Appendix

Table: General Assumptions

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50%
Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Page 3
 Appendix

Table: Profit and Loss

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144
Direct Cost of Sales $1,611 $2,014 $2,518 $3,147 $3,934 $4,917 $6,147 $7,683 $9,604 $12,005 $15,006 $18,758
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $1,611 $2,014 $2,518 $3,147 $3,934 $4,917 $6,147 $7,683 $9,604 $12,005 $15,006 $18,758

Gross Margin $11,801 $14,752 $18,440 $23,050 $28,812 $36,015 $45,019 $56,274 $70,342 $87,928 $109,909 $137,387
Gross Margin % 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99%

Expenses
Payroll $23,138 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760
Sales and Marketing and Other $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467
Expenses
Depreciation $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723
Utilities $468 $468 $468 $468 $468 $468 $468 $468 $468 $468 $468 $468
Insurance $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Maintenence/Repairs $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292
Travel 15% $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $33,355 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977

Profit Before Interest and Taxes ($21,554) ($19,225) ($15,537) ($10,927) ($5,165) $2,038 $11,042 $22,297 $36,365 $53,951 $75,932 $103,410
EBITDA ($17,831) ($15,502) ($11,814) ($7,204) ($1,442) $5,761 $14,765 $26,020 $40,088 $57,674 $79,655 $107,133
Interest Expense $950 $942 $934 $926 $918 $910 $902 $894 $886 $879 $871 $863
Taxes Incurred ($5,626) ($5,042) ($4,118) ($2,963) ($1,521) $282 $2,535 $5,351 $8,870 $13,268 $18,765 $25,637

Net Profit ($16,878) ($15,126) ($12,354) ($8,890) ($4,563) $846 $7,605 $16,052 $26,609 $39,804 $56,296 $76,910
Net Profit/Sales -125.84% -90.22% -58.95% -33.94% -13.93% 2.07% 14.86% 25.10% 33.28% 39.83% 45.07% 49.26%

Page 4
 Appendix

Table: Cash Flow

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received

Cash from Operations

Cash Sales $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144
Subtotal Cash from Operations $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Expenditures from Operations

Cash Spending $23,138 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760
Bill Payments $2,614 $3,462 $4,456 $5,887 $7,678 $9,918 $12,719 $16,223 $20,603 $26,080 $32,928 $41,490
Subtotal Spent on Operations $25,752 $27,222 $28,216 $29,647 $31,438 $33,678 $36,479 $39,983 $44,363 $49,840 $56,688 $65,250

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $837
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $26,585 $28,055 $29,049 $30,480 $32,271 $34,511 $37,312 $40,816 $45,196 $50,673 $57,521 $66,087

Net Cash Flow ($13,173) ($11,290) ($8,092) ($4,284) $475 $6,421 $13,853 $23,141 $34,750 $49,259 $67,394 $90,057
Cash Balance $46,827 $35,538 $27,446 $23,163 $23,637 $30,059 $43,912 $67,053 $101,803 $151,062 $218,456 $308,513

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Appendix

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 Appendix

Table: Balance Sheet

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances

Current Assets
Cash $60,000 $46,827 $35,538 $27,446 $23,163 $23,637 $30,059 $43,912 $67,053 $101,803 $151,062 $218,456 $308,513
Other Current Assets $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400
Total Current Assets $71,400 $58,227 $46,938 $38,846 $34,563 $35,037 $41,459 $55,312 $78,453 $113,203 $162,462 $229,856 $319,913

Long-term Assets
Long-term Assets $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810
Accumulated Depreciation $0 $3,723 $7,446 $11,169 $14,892 $18,615 $22,338 $26,061 $29,784 $33,507 $37,230 $40,953 $44,676
Total Long-term Assets $312,810 $309,087 $305,364 $301,641 $297,918 $294,195 $290,472 $286,749 $283,026 $279,303 $275,580 $271,857 $268,134
Total Assets $384,210 $367,314 $352,302 $340,487 $332,481 $329,232 $331,931 $342,061 $361,479 $392,506 $438,042 $501,713 $588,047

Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Current Liabilities
Accounts Payable $2,500 $3,316 $4,262 $5,634 $7,351 $9,498 $12,183 $15,542 $19,741 $24,992 $31,557 $39,765 $50,026
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $2,500 $3,316 $4,262 $5,634 $7,351 $9,498 $12,183 $15,542 $19,741 $24,992 $31,557 $39,765 $50,026

Long-term Liabilities $100,000 $99,167 $98,334 $97,501 $96,668 $95,835 $95,002 $94,169 $93,336 $92,503 $91,670 $90,837 $90,000
Total Liabilities $102,500 $102,483 $102,596 $103,135 $104,019 $105,333 $107,185 $109,711 $113,077 $117,495 $123,227 $130,602 $140,026

Paid-in Capital $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171
Retained Earnings ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461)
Earnings $0 ($16,878) ($32,004) ($44,358) ($53,248) ($57,810) ($56,965) ($49,360) ($33,308) ($6,700) $33,104 $89,401 $166,311
Total Capital $281,710 $264,832 $249,706 $237,352 $228,462 $223,900 $224,745 $232,350 $248,402 $275,010 $314,814 $371,111 $448,021
Total Liabilities and Capital $384,210 $367,314 $352,302 $340,487 $332,481 $329,232 $331,931 $342,061 $361,479 $392,506 $438,042 $501,713 $588,047

Net Worth $281,710 $264,832 $249,706 $237,352 $228,462 $223,900 $224,745 $232,350 $248,402 $275,010 $314,814 $371,111 $448,021

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