Business Plan on Tiny

7/30/2019 Business Plan on Tiny

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TinyBabyGarmentCompanyBusinessPlanforthePeriodStartingNovember2000

KateWilliams

GarmentCompanyBox3166

Brackendale,BC604-898-5555

[email protected]


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TableOfContents

ExecutiveSummary BusinessDescription OwnershipandManagement KeyInitiativesandObjectives MarketingOpportunities CompetitiveAdvantages MarketingStrategy SummaryofFinancialProjectionsConfidentialityandRecognitionofRisks ConfidentialityClause RecognitionofRiskBusinessOverview

BusinessHistory VisionandMissionStatement Objectives Ownership LocationandFacilitiesProductsandServices DescriptionofProductsandServices KeyFeaturesoftheProductsandServices ProductionofProductsandServices FutureProductsandServices ComparativeAdvantagesinProduction

IndustryOverview MarketResearch SizeoftheIndustry KeyProductSegments KeyMarketSegments PurchaseProcessandBuyingCriteria DescriptionofIndustryParticipants KeyIndustryTrends IndustryOutlookMarketingStrategy TargetMarkets DescriptionofKeyCompetitors AnalysisofCompetitivePosition PricingStrategy PromotionStrategy DistributionStrategyManagementandStaffing OrganizationalStructure ManagementTeam Staffing LabourMarketIssues


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RegulatoryIssues IntellectualPropertyProtection RegulatoryIssues

Risks MarketRisks OtherRisksImplementationPlan ImplementationActivitiesandDatesFinancialPlan BeginningBalanceSheet DiscussionofProjectedNetIncome DiscussionofMonthlyCashFlowStatement DiscussionofProjectedAnnualCashFlow

DiscussionofPro-FormaBalanceSheet DiscussionofBusinessRatios ProFormaIncomeStatement CashFlowStatement,Year1 ThreeYearProjectedAnnualCashFlow BalanceSheet BusinessRatios Note1:RevenueAssumptions Note2:AssumptionsRegardingtheCollectionofSalesRevenue Note3:CostofSalesAssumptions Note4:SalesandMarketingAssumptions Note5:PropertyandUtilitiesAssumptions Note6:OperationsAssumptions

Note7:BankingandOtherAssumptions Note8:WagesandOtherAssumptions Note9:OtherSourcesofFunding Note10:OtherUsesofFunding


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ExecutiveSummary

BusinessDescription

TinyBabyGarmentCompany isamanufacturerofqualityChildrensClothingandaccessories, locatedinBrackendale, BritishColumbia. Wecurrently have two products available tomarket, an infant or toddlerstroller/carseatbagandalineofbeautifulfleeceblankets.Weareveryexcitedaboutourproducts;theyaremadeoftopquality100%cottonandanti-pillfleece.OurToddlerstrollerbagisanewproductonthemarketandshoulddoverywell.Wehavedesignedittobestylish,rugged,waterresistant(forthewinterones)andaffordable.Thestrollerbagscomeinmanydifferentdesignsandfabrics,sothecustomercanchoseonethatisjustrightfortheirspeciallittleone.Allofourmaterialsanddesignshavebeentestedagainstwear&tear,washing,dryingetcandpassedwithflyingcolours.Thismeansthecustomercanbeassuredofanexcellentproductthatwilllastalongtime.Ourfleeceblanketsarecuddly

soft withabeautifulsatinedging. They also have been tested for wear& tear and anti-pillingwith greatresults.

OverthenextyearTinyBabyGarmentCompanywillbelaunching6or8newproducts.Wearealreadyworking ona greatdesign for baby and toddler pajamasand a very unique sleeping sack. Thesewill beavailableinJanuary/Februaryof2001,followedbyUVGearfortheSpring.Ourmissionistoproducestylish,affordablechildrensproductsthatcustomerswilllovetobuyforthemselvesandtheirfriends.

OwnershipandManagement

TinyBabyGarmentCompanyisintheprocessofbecomingincorporated.ItisownedandoperatedbyKateWilliams.Katehas12yearsexperienceinsalesandterritorymanagement,sellingbothtangibleandintangibleproducts.Havingworkedasa100%commissionedrep,Kateunderstandsthecommitmentneededtobuildabusinessandkeepitprofitable.

KeyInitiativesandObjectivesOur primaryobjective is tobring our product tomarket and to sign onwith 10-15new retailers and onedistributorthisyear.Wearecurrentlyworkingonourfirstlargeproductionrunandareusinganinvestmentbythe owner to fund this. Any additional funding we receive will assist with the production, labeling andpackagingcosts,enablingustogettomarketsooner.

MarketingOpportunitiesThedemandforchildrensgarmentshasremainedstrongoverthelastfewyearsandiscontinuingonthattrend.EveryyearinBCthereisanaverageof1600babiesbornintoeachhealthdistrict,thismakesforalotofnewcustomers. Customersarecontinuallylookingforstylish,practicalproductsforinfantsandtoddlers.Thisiswherewefitin.Ourproductsaredesignedbasedoncustomerfeedback,andwewillcontinuetoworkcloselywiththecustomerwhenthinkingaboutwhatnewproductstobringtomarket.Customersarealsolookingfor


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more locally made product. Currently there are not enough local manufacturers to satisfy demand and

TinyBabyGarmentCompanyisinanexcellentpositiontocapitalizeonthisopportunity.

CompetitiveAdvantages

ThemaincompetitiveadvantagesofTinyBabyGarmentCompanyare thatwehave someproduct that isnewtotheCanadianmarketplace.Also,ourproductsarelocallymadewhichisagreatadvantageasmoreandmorecustomersarelookingforlocallymadeproduct.Thefactthatwehavelowoverheadallowsustopriceourproductsmoreaffordably.Beingasmallcompanyweareabletoworkmorecloselywiththecustomerandtomakequickerdesignchangesifrequiredtomeetconsumerdemands.

MarketingStrategyChildrensgarmentsaresoldprimarilythroughretailoutlets.Ourpromotionalstrategytargetsretailstoresinthe sea tosky corridor and the lowermainland. For retail stores beyond thatwe will begoing through adistributor.Wearealsodoinganumberoftradeshowsinthenext6monthstointroduceourproductsdirectlyto theconsumer. Wewillbeworkingwith retailersto assist themwitheffectivemerchandising andco-opadvertisingtohelpboostsales.WealsohaveawebsitethatwillbeupandrunningbyDecember1st,2000.Thiswillallowcustomersfromallovertheworldtopurchaseourproduct.Ourproductsarepricedcompetitivelyandtakeintoaccountproductioncosts,competitivepricingandcustomer

pricesensitivity.ItisTinyBabyGarmentCompanysgoaltoprovideunique,qualitychildrensproductsforareasonablepricewhilestillmaintaininggoodprofitmargins.

SummaryofFinancialProjectionsOurprojectedrevenueswillbe$42,778in2001,increasingto$62,3012003.Directcostofsaleswillaverage50%ofgrosssales,includingproductcostsat15%andgoods&materialsat35%.Weprojectournetincomewillincreasefrom$17,386in2001to$21,462in2003.Thereasonforthesmallerincreaseinnetincomeisthatby2003wewillneedtobringanemployeeonboardtohelpgrowsalesrevenue.Thisadditionalsalesgrowthwillbereflectedinour2004-yearend.


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ConfidentialityandRecognitionofRisks

ConfidentialityClauseThisinformationincludedinthisbusinessplanisstrictlyconfidentialandissuppliedontheunderstandingthatitwillnotbedisclosedtothirdpartieswithoutthewrittenconsentofKateWilliams.

RecognitionofRiskThisbusinessplanrepresentsmanagementsbestconservativeestimateofthefuturepotentialofourbusiness.Itshouldberecognizedthatnotallthemajorriskscanbepredictedoravoidedandthattheremaybeerrorsofomissionorcommissionwithinthisplan.Therefore,investorsshouldbeawarethatthisbusinesshasinherentrisksthatshouldbeevaluatedpriortoanyinvestment.


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BusinessOverview

BusinessHistory

TinyBabyGarmentCompanyisanewbusinessthatwillbeginsalesinDecemberof2000.Thecompanywouldmanufacturequalitychildrensclothingandaccessoriesandsellthemthroughretailstores.IwouldliketostartthisbusinesssoIcanofferparentschildrensitemsthatdonotcurrentlyexist,alongwithalineofqualityclothing.Ihave12yearsexperienceinsalesandreallyenjoyworkingwiththepublic,sothesellingendofthebusinessiswhatappealstome.AsaconsumeritisimportantthatIgetahighqualityproduct.Thisisabigemphasisformeincreatingthesegarments.Iwanttoproducetopqualityproductataffordableprices.IalsowanttoworkinSquamishandtobeabletoofferlocalpeoplework.Tothisend,itismygoaltofindlocalsuppliers,suchastheBrush&BobbinandInsightSignsformyproductionandotherneeds.Ibelievethisisagoodbusinesstobeinandcan'twaittogetstarted.

VisionandMissionStatement

TinyBabyGarmentCompanyisamanufacturerofqualitychildrensproducts.Weofferourcustomerstopqualityclothingandaccessoriesatexcellentprices.Ourgoalistoproducethemajorityofourproductlocally.Wewillbeintroducinganaverageof2newproductsperquarter,basedoncustomerrequestsandtheneedinthemarketplace.

Objectives

Ourprimaryobjectivesoverthenextyearareto:1. Forge a strong market presence in the BC Childrens clothing market. We will work toward this byobtainingaminimumof15retailersinthenext12months.2. Improveour cost ofgoods by choosing local suppliers and increasing the size of our orders thereforedecreasingthecostperpiece.3.Introduceourfirsttwoproductsinthefallof2000andcreatestrongbrandrecognition.Thenbringon2moreinSpring/Summer2001followedwith2moreintheFall.4. Createmarketawarenessthroughco-op advertisingwith retailers anddistributingourown sales sheetseveryquarter.

Ownership

TinyBaby Garment Company is in the process of becoming a corporation. The legal name will be

TinyBabyGarmentCompanyandKateWilliamsistheprincipalowner.


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LocationandFacilities

TinyBabyGarmentCompanywillbelocatedatmyhomeinBrackendale.ThislocationiscentralwithintheSeatoSkycorridor.Italsoallowsmetoworkextrahourssuchaseveningsandweekendswithouthavingtocommute.Ourofficesetupincludes,computer,faxmachine,scanner,printer,cellphoneandasewingcentreforpatterndesignandfabricselection.ThislocationisalsoconvenientwhenworkingwithsuppliersintheSeatoSkyCorridor.


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ProductsandServices

DescriptionofProductsandServices

TinyBabyGarmentCo.isstartingwith2mainproducts.Astroller/carseatbagavailableinbothinfantandtoddlersizes,andcriborreceivingblanketsavailableinmicrofleeceorflannel.WewillexpandthelineinJanuarytoincludeSleepers/PajamasforinfantsandtoddlersandUltraVioletProtectiveclothingforinfantstoddlersandpreschoolers.OurstrollerbagsareauniqueproducttotheBCmarketplace.Also,ourspecialPajamas and sleeping sacks are of a design that is not currently available in Canada. The UV Clothingalthoughcurrentlyavailableishardtofindandstillanewproductwithlotsofpotentialforgrowth.Wewillbesearchingforlocalsewingcompaniestoproducetheproduct,whichwillhelpkeepthecostsinlineandallowustokeepabetterhandleonqualitycontrol.Overthenexttwoyearswewillexpandthelinetoincludechildrensactivewear.

KeyFeaturesoftheProductsandServicesOurToddlerstrollerbagsarenewtothemarketandaremadeoftopqualityfabric.Itisboththequalityoftheproductandthegreatfeatures(water-resistant,warm,wind-resistant)thatwillmakethisitematopseller.Themicrofleeceblanketsareedgedwithsatinbinding.Thisisverydifficulttofindandbabieslovethefeelofthefleeceandsatin.Thesoftnessandthebeautifulcraftsmanshipoftheseblanketswillmakethemsellwell.Also,our pajamasandsleeping sacks areofdesignsneverseeninCanada. Wearechoosing atopquality100%cottonfabrictomakethesefrom.Soagain,theuniquenessoftheproductandthequalityofthematerialandconstructionarewhatwillkeeptheseselling.TheUVGearisagrowingareainchildrensclothingwithalltheconcernsaboutskincancer.Hereagainwearegoingtomakeagoodquality,affordablypricedproductthatshouldsellwell.

ProductionofProductsandServicesOurproductsaremadewiththebestavailablematerials.Either100%cottonforthecottonsandflannelsortopqualitynopillfleeceforthefleeceitems.Thewater-resistantnylonforthestrollerbagsisalsooftopquality.No itemwill bemadeor soldwithout the prototype being thoroughly tested for shrinkage, pilling coloursrunningetc.Wewillonlychosefactoriesthatcansewaperfectgarmentwithoutloosethreadsorunfinishedseams.Everyitemwillbeinspectedbeforebeingsoldtoaretailer.Itwilltakeabout3weekstoproducearunofstrollerbagsorblankets.OurcurrentmanufacturerislocatedinVancouverbutasmentionedearlier,weareintheprocessoflookingforSquamishsuppliers,providedthequalityofworkandturnaroundtimesremainthesame.

FutureProductsandServicesAsmentionedearlierweplanonaddingthefollowingproductstoourline.PajamasforinfantsandtoddlersSleepingsacksforinfantsandtoddlersSleepersforinfantsUVclothingChildrensActiveWear


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Wearelookingatadding2newproductsperquarter.Ifaproductdoesnotprovesuccessfulafter2quarterswewilleitherlookatchangingthedesignoreliminatingtheproduct.

ComparativeAdvantagesinProductionOurmainadvantageis thatsomeof theseproductsarenewindesigntowhatiscurrentlyin themarketplace.Theotheradvantagesareourloweroverheadandmysalesexperience.


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IndustryOverview

MarketResearchI amstillworkingtogeta completeunderstandingof thechildrens clothingindustry. This includesmorediscussions with other manufacturers, searching for more research statistics and actually learning fromwatchinghowmyproductsdo.TodateIhavespokentofourretailersofchildrensproducts.Ihave2mentorsonewhomanufacturersoutdoorgearandanotherwhomanufacturedchildrensproductsfor10years.ThroughthesetwopeopleIhavelearnthowtoapproachthemarket,whatwillandwon'tselletc.FrommagazinesandotherparentsIhavelearntmoreaboutwhatconsumerswantandwhattheyaretiredof.Ihave beento anumberofstatisticalwebsitesandatthis pointhavesearched invain forspecific statisticsrelatingtothechildrensgarmentindustry.Iwillcontinuethissearch

SizeoftheIndustryThereare30manufacturersofChildrensclothinginBritishColumbiaasofDec30th,1999.AlthoughtherearenospecificstatisticsforBC,thestatisticsforCanadaareasfollows.Therevenuerangeforthe30-samplebusinessinthereportisbetween$30,000.00and5,000,000.00.Itisdifficulttodeterminetheindustrysalesthroughretail.AllofthereportsthatI havefoundso farhaveincludedchildrensclothinginwithWomensclothingorwithallclothing. Ifwelookattheclothingmanufacturingindustryingeneral,ithasgrownfrom6,497.9millionin1995to6,996.3millionin1999.Thisisnotalargegrowth,butratherasteadymaintenanceoftheindustry.IhaveresearchedthetotalbirthsinBCsince1987.IfwelookatthewholeofBC,theaverage#ofbirthsperhealthareaperyearisdownfrom1625in1987to1586in1999.

KeyProductSegmentsThekeyproductsegmentsinChildrensweararenewbornclothing,babyclothing,toddlerclothing,accessories(suchasblankets,pillows,softtoysetc).Thenewbornclothingtakesthelargermarketshareasmanyoftheseitemsarepurchasedasgiftsaswellasbyparents.FollowingthatwouldbeToddlerClothing,babyclothingandaccessories.DifferentmanufacturerstendtofocusononeortwooftheseareasfortheirlinesforexampleKooshiesmakesclothingandaccessoriesforthe0-24montholds.

KeyMarketSegmentsThekeymarketsegmentsof thechildrensclothingindustryaredistributors,retailoutletsand theconsumer.

Thereareanumberofdistributorswhocouldtakeonyourlineandthenrepit totheretailoutletsthemselves(alongwiththeirotherlines).Theotherwaysthatchildrensclothingmanufacturersselltoconsumersisbysellingdirectlyto theretailoutlet. Themajority (95%)of these retailoutletswill be independent retailers.Anothermarketsegmentissellingtotheconsumerattradeshowsorgiftshows,althoughtheprofitmarginisgreatbysellingthisone,itaccountsforonly5-10%ofannualsales(#'sprovidedfromdiscussionswithotherChildrensManufacturers).

PurchaseProcessandBuyingCriteria


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Customersbuyfromeachofthemarketsegmentsfordifferentreasons.Forexample,inthenewbornclothingsegment,themajorityofcustomersarebuyingagiftorfortheirfirstchild.Whatcustomerslookforhereareexcellentqualityandappealingfeatures.Whenpurchasinginthissegmentpricebecomessecondonthelistofreasons.Whenbuyingaccessoriessuchasblankets,strollerbags,babypillowsetc,customershavea smalleramountofgoodstochosefromandwillthereforemaketheirdecisionbasedonpriceandqualityoftheproduct.Alsorecommendationsfromotherwithsimilarproductplaysapartinthisbuyingdecision.Whenpurchasingbabyclothingthecustomerlooksforaffordableclothingfirstfollowedbyquality.Itisatthisstagethatthechildgrowsveryquicklyandtheconsumerdoesnotwanttopayahugeamountforanitemthatwillonlybewornforafewweeks.Howeverqualityisstilla factor,especiallyiftheconsumerplansonpassingtheitemdown to another sibling or family member. When purchasing toddler clothing, the consumers look fordurability, quality and reasonable price. The clothes tend to fit longer and therefore need to be wellconstructed.Retailerswilllookforawellmadeproductthatallowsthemtosellata reasonablemargin.Theywilltendtopurchaseafewproductstostartwithandiftheitemissuccessfultheywillplacelargerorders.Thekeyforthemisdotheygetagoodmarginanddoestheproductmovequickly.

DescriptionofIndustryParticipantsTherearemanydifferentmanufacturersofchildrensclothingwhoselltheirclothinginCanadianRetailstores.ThemajorityofthosearenotCanadianmadeproductsbutrathermanufacturedintheUSAorChina.Wearestarting to see one or two linesofquality childrens clothingmade inCanada that isnow being found inindependentandchainstores.Theothertypesofbusinessarethosemanufacturerswhoonlysellthroughtheirownretailstores(suchasBabyGap,PleaseMumandJustKid'n),andsomesmallermanufacturerswhosellthroughtheindependentstores(suchasSnugasaBug).

KeyIndustryTrends

Severaltrendshaveaffectedthechildrensclothingindustryofthelast10years.ThelowernumberofbirthsinCanadaandspecificallyBritishColumbiahashadasmallimpactinthesalesofchildrensclothing.Howeverwiththeintroductionofnewspecialtylines,parentsaredressingtheirchildrenbetterthantheydidinthepastatmoreaffordableprices.Thishasincreasedthesalesofchildrensclothing.

IndustryOutlookThe productswith the biggest opportunity for growth are the outdoor gear and UVprotective clothingforinfants and toddlers. These products are not available in great supply at this point in time. With manyconsumers looking for water protective or sun protective clothing for the children, this will increase thedemandsfortheseproducts.


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MarketingStrategy

TargetMarketsOurprimary targetmarketplaceissmallindependentchildrensclothingretailersin thelowermainlandandSouthCoastofBritishColumbia.AsthebusinessexpandswewilltargettherestofBCandAlberta.WehaveawebsitethatwillbeupandrunningbyDecember1st.ThiswillbringinretailsalesfromthroughoutNorthAmerica.Ourprimaryconsumertargetmarketisfamilieswithyoungchildrenorexpectingachild.ThisisagrowingmarketintheSeatoSkyCorridorandEdmontonandCalgary.

DescriptionofKeyCompetitorsOurkeycompetitorsareKooshies,PleaseMum,Gymboree,SnugasaBugandothersmallermanufacturers.TheyarelocatedthroughoutCanadaandalsoselltotheindependentretailersortheirownstore.Mostofthesmallermanufacturersarefocusedonthe0-24monthsareaandofferqualityclothing,blanketsetcinthisarea.There is onlyone company that currently sellsa competing product toourmainoffering. This isa smallcompanythatdoesnotcurrentlyhavethemanufacturingcapabilitiestodolargevolumes.IntheareaofUVclothingtherearecurrentlytwocompetitorsonefromtheUSAandonefromCanada.TheproductfromtheUSAispricedhigherthanmostCanadianscanafford.

AnalysisofCompetitivePositionOnanoverallbasis,ourcompetitiveadvantagesarewearealocallymadeproduct(abigpluswhensellingto

theindependentretailers),wehavelowoverheadandcanthereforeproducealessexpensiveproduct.Intheareaofstroller/carseatbags,wearecurrentlythesecondcompanytomarketwiththisitemandthereforeareinagoodpositiontosecuremarketshare.Sinceourproductismanufacturedinafullservicefactorywecanproducemoreproductandareworkingtowardsproducingalowerpriced,higherqualityproduct.IntheareaofUVclothing,withtwoothercompetitorsinthemarket,weneedtoproduceabetterproductatabetterprice.Wearecurrentlyresearchingfabricsinordertodothis.Thisisaseasonalproduct,thesaleswillpeakinSpringandsummer.ThesleepingsacksarecompletelynewtoCanadaandareveryaffordablypriced.Onceconsumersunderstandthevalueofthisproductitshoulddowell.IntheareaofPajamas,althoughthisisacommonproductourdesignisnewandisbasedoninterviewswithconsumers.

PricingStrategy


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Ourplanistopriceourproductsthesameorjustbelowthemajorcompetitorsproduct.Whencomingupwiththepricewetakeintoaccountourproductioncosts,competitivepricingandwhattheconsumeriswillingtopayforaparticularitem.

PromotionStrategyWehavethefollowingpromotionactivityplannedoverthenextfewmonths.Direct sales calls to retailers, distribution of a newproductannouncementto allretailers, a presenceat theWhistlerGiftShowand the SquamishChristmasGiftShowinNovemberand theVancouverGift show inMarch.Wewillalsobeworkingwithadistributortotargetsomeofthemoreruralstores.Wewillhaveawebsitereadyinthenext2monthswhereconsumerscanseewhatweoffer,readtestimonials,findoutwheretheycanpurchasetheproductlocally,orplaceorderson-line.Aswegrowwewilllookatotherformsofmarketingsuchasadvertisingin localnewspapersandmagazinestargetedtotheparentingworld.

Oncewehavealargeenoughproductlinewewillproduceacatalogueforretailersandconsumers.

DistributionStrategyWehaveanumberofdifferentdistributionchannelsdependingontheretailcustomerandthesizeoftheorder.ForcustomersintheSeatoSkycorridorandthelowermainlandIwillusemyvehicle.Forremotecustomersorlargerorders,wewillusealocalcourier.


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ManagementandStaffing

OrganizationalStructureOurcompany isownedandoperatedbyKateWilliams. Theownermanagesthe companyanddoesall themanagerial,administrative,marketing,design,productdevelopmentandsalesfunctions.Overthenext3yearsweexpecttohireatleast1parttimeifnotfulltimeemployee.Ifthebusinessgrowthwarrantsitwewillhireanotheremployee.

ManagementTeamKateWilliamshasextensivesalesexperienceandexperiencemanagingalargebusinessterritoryorcustomergroup. Her strengths are strong sales skill, ability to work alone, ability to manage her time properly,persistenceanddetermination.Herweaknessesarelackofexperienceinthemanufacturingindustry,howevershehas2mentorswithcombined18yearsexperienceguidingherthroughtheprocess.Kate'scompleteresumeisincludedintheappendice.

Staffing

TinyBabyGarmentCompanyplansonhiringoneemployeewithinthenext2years.WewillsearchforthisemployeeintheSquamishareavianewspaperadvertisementsandthroughtheCanadaemploymentoffice.Thepay will varydepending onexperience,but will probably start atminimum wage and be reviewedafter3months.Wewillbelookingforsomeonewithstrongcomputerskills,telephoneskillsandtheabilitytoworkwellaloneastherewillbetimesthattheywillbetheonlyoneintheoffice.

LabourMarketIssues Thereisnoshortageofpeoplelookingforentry-levelpositionsintheSquamisharea.Itmaybedifficulttofindthe right one, especially someonewho ishappyworkingoutofa homeoffice. Wewill try tooffer someincentivesprogramsthatgivetheemployeesomethingtoworkforotherthantheirwage.Thiswillhopefullyhelpwithstaffretention.


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RegulatoryIssues

IntellectualPropertyProtectionWearenotplanningtoapplyforanypatentsortrademarksatthistime.

RegulatoryIssuesI am in the processofobtaininga business license and researchingthe regulatory issues for the childrensclothingindustry.TheseincludeinformationonNAFTAfriendlyfabricandotherrequirementsforexportingourproducts.


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Risks

MarketRisksItisimportantthatweonlyusequalityfabricsandpriceourproductswell.Consumerswillstopbuyingtheproductifitisnotmeetingtheirrequirementsorisnotaffordable.Thereislotsofcompetitionouttherefortheconsumers tochose from. Weneedto startoffwith aqualityproduct,create somemarket awareness andcontinuetomeetthedemandsoftheconsumers.Inordertodothiswemustworkwiththeretailerstolearnmoreaboutwhattheyandtheconsumerswant.Itisimportanttohavetheretailersonoursidesotheydisplayandmerchandiseourproducttothemaximumbenefit.Itisalsoimportanttoknowwhatconsumersthinkandwhatchangestheywouldliketoseesowecanmeettheirneeds.

OtherRisksNotproperlymanagingtheproductionendofthebusinesscouldaffectcostsandmakeourproducttoohighlypriced.Itisimportantforustokeepclosewatchonbothlabourandfabriccostsandtotryandkeepthemaslowaspossiblewithoutaffectingthequalityoftheproduct.Itisalsoimportanttofindreliableassistance,andthoughitmaytakelongertohireitisimportanttogettherightpersonfromthestart.


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ImplementationPlan

ImplementationActivitiesandDatesWithinthenextseveralmonths,wewillundertakethefollowingactivities.1.Wearecurrentlygettingpatternsmade(byalocalsupplier)andinitialinventoryforourproduct.2.Weareworkingtofindabetterandlowerpricedmanufacturerforourproduct,ortohireindividualstosewforus.Wehaveplacedanadvertisementinthechiefandarealreadyinterviewingcandidates.3.Wehavehiredalocalartisttocreateourlogoandbusinesscardsowecanproducelabelsandmarketingmaterial. We are currently getting quotes from Insight Signs and another sign company to produce ourtradeshowsignage.4.Oncewehavesomeinventorywewillbeapproachinglocalstorestocarryourline.5.WearebookedintotheWhistlerandSquamishChristmasGiftshowsandplantoshowcaseourproduct

there.6.Wewillbemeetingwithadistributortodiscussthepossibilityofthemrepresentingourline.7.ByDecemberwewillbeworkingonourtwonewproductstolaunchinthespring.


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FinancialPlan

DiscussionofProjectedNetIncomeOurrevenueprojectionsfor2001are$42,778.00.Itisduringthisyearthatwewillbuildourcustomerandproductbase. Thesesalesfiguresarebasedonhaving15newcustomersin2001. Asanewcompanyinadynamicmarket,weexpectourcustomerbasetogrowatanaverageof10to15newcustomersperyearforthefirst 3-4 years. Our sales figures of $53,166.00 for 2002 and $62,301.00 for 2003 reflect a conservativeestimateofthisgrowth.Thebusinesswillbeoperatedfrommyhomeforthefirst3yearswithmyselfastheonlyfulltimeemployee.Sometimein thesecondyearIwillrequireapart-timeemployeetomanagethegeneralorderentryandbasiccorrespondence.Thiswillkeepouroverheadlow.Ourdirectcostofsalesaverages50%ofgrosssales.Asour sales increaseour costs to supplierswill decrease. It isour intent to try and secure local (Squamish)

suppliersoverthenextyearorso.Oursalesandmarketingcostswillbefairlyhighinthefirstyearaswegetourselvesestablished.Theyshoulddroptoanaverageof2%afterthefirstcoupleofyears.OurexpensesincludevehicleandtravelexpensesforsalestripsthroughoutBC.Totaloperationexpensesarebetween1-2%;thesamegoesforbankingandlegalexpensesinyear2and3. Thefirstyearwillseealargelegalexpenseaswegothroughtheincorporationprocess.Thenetincome,basedonconservativesalesestimatesisprojectedtoincreaseslightlyfrom$17,191.00in2001to$21,462.00in2003.Thereasonthenetincomeisnotincreasingasquicklyasthesalesistheinvestmentinanassistant.Hiringanassistantwillfreeupmoretimetofocusonsalesactivity,increasingboththegrossandnetincome.Ihaveamentorwith10yearsinthechildrensmanufacturingindustrywhowillhelpmetogrowthebusiness andkeepthecosts toaminimum sowebecomeprofitable early onandstay profitable fortheduration.

DiscussionofMonthlyCashFlowStatement Duringmystart-upphase,Iwillneedtoinvestsomeofmyownfundstopayforproductioncosts.AsIwillnotbesellingontermstomyclientsonceasaleismadethecashwillbeonhandtofinancefurtherproduction.Theotherinitialexpensesarelabeling,businessregistration,signageandlegalfees.Thesewillbecoveredbymyowninvestmentintothebusiness,andhopefullysupplementedbytheSEgrant.

DiscussionofProjectedAnnualCashFlowBymaintainingasteadygrowthandoperatingstrictlyonacashbasiswith95%ofourcustomerswewillbeabletoselffinancethebusiness.HavingtheSEGrantwillhelpustocreatesomeinventoryandthereforehaveproducton-handinthecaseoflargeordersorunforeseengrowth.Afterthefirstyearwewillhaveenoughworkingcapitalto beableto offerterms tosome ofourbetter customers. Atthesame timewewillhavedevelopedagoodrelationshipwithoursuppliersandmaybeabletogoontermswiththem,thusenablingustoincreaseourproductionandupoursales.

DiscussionofPro-FormaBalanceSheet


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Wehavesetveryrealisticsalesgoalsanddon'tforeseeanyprobleminmeetingorexceedingthem.Thiswillenableustoachieveourfinancialobjectivesandstrengthenourbusiness.Aswearenotplanningontakingonanyloans,wearenotinasituationwhereweneedtobeconcernedaboutmeetinganydebtobligations.

DiscussionofBusinessRatiosWehave compared our ratios to thoseprovided tome by anothermanufacturer in the childrens clothingindustry.


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TinyBabyGarmentCompany

PROFORMAINCOMESTATEMENTForthePeriodsEndingNovember

2001 2002 2003NetSales 42778 53166 62301DirectCostofSales 21257 27005 30538GrossMargin 21521 26161 31763 Expenses: Sales&Marketing 1900 1725 1525Property&Utilities 635 800 800Operations 538 425 435Banking&Other 575 625 625

OtherWages&Benefits 0 3000 5000InterestOperatingLoan InterestTermLoan Depreciation TotalExpenses 3648 6575 8385 NetIncomeBeforeTaxes

17873 19586 23378

Less:IncomeTaxes 682 1097 1916NetIncome 17191 18489 21462


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TinyBabyGarmentCompanyPROJECTEDCASHFLOWSTATEMENT

FortheYearEndingNovember,2001

Month1 Month2 Month3 Month4 Month5 Month6 Month7CashInflows: CashReceipts 476 1046 1644 2010 2620 3215 3858OtherSourcesofFunding: OwnerInvestment 3000 0 0 0 0 0 0OperatingLoanAdvances 0 0 0 0 0 0 0TermLoanAdvances 0 0 0 0 0 0 0SaleofFixedAssets 0 0 0 0 0 0 0OtherAssets 1000 1000 1000 1000 1000 1000 0TotalCashInflows 4476 2046 2644 3010 3620 4215 3858

CashOutflows: PaymentOf: CostofSalesItems 244 757 989 1237 1440 1755 2021Sales&MarketingItems 400 150 100 50 600 350 100OperationsItems 395 0 0 68 0 0 0Property&UtilitiesItems 0 70 70 70 70 70 70Banking&OtherItems 350 250 30 30 30 30 30OtherWages&BenefitsItems 0 0 0 0 0 0 0OtherUsesofFunding: RepaymentofShareholderCapital

0 0 0 0 0 0 0

PaymentofDividends/Earnings

0 0 0 0 0 0 0

TermLoanInterest&Principal 0 0 0 0 0 0 0OperatingLoanInterest&principal

0 0 0 0 0 0 0

PurchaseofFixedAssets 0 0 0 0 0 0 0PaymentofOtherAssets 0 0 0 0 0 0 0PaymentofTaxes 0 0 0 0 0 0 0TotalCashOutflows 1389 1227 1189 1455 2140 2205 2221 Increase/DecreaseinCash 3087 819 1455 1555 1480 2010 1637BeginningCashBalance 0 3087 3906 5361 6916 8396 10406ClosingCashBalance 3087 3906 5361 6916 8396 10406 12043

Month8 Month9 Month10 Month11 Month12 TotalCashInflows: CashReceipts 3901 4118 5199 5849 6299 40235OtherSourcesofFunding:

OwnerInvestment 0 0 0 0 0 3000OperatingLoanAdvances 0 0 0 0 0 0TermLoanAdvances 0 0 0 0 0 0SaleofFixedAssets 0 0 0 0 0 0OtherAssets 0 0 0 0 0 6000TotalCashInflows 3901 4118 5199 5849 6299 49235 CashOutflows: PaymentOf: CostofSalesItems 1846 2099 2921 3088 3054 21451Sales&MarketingItems 50 100 50 100 50 2100


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OperationsItems 0 75 0 0 0 538Property&UtilitiesItems 70 70 70 70 70 770Banking&OtherItems 30 30 30 30 205 1075OtherWages&BenefitsItems 0 0 0 0 0 0

OtherUsesofFunding: RepaymentofShareholderCapital 0 0 0 0 0 0PaymentofDividends/Earnings 0 0 0 0 0 0TermLoanInterest&Principal 0 0 0 0 0 0OperatingLoanInterest&principal 0 0 0 0 0 0PurchaseofFixedAssets 0 0 0 0 0 0PaymentofOtherAssets 0 0 0 0 0 0PaymentofTaxes 0 0 0 0 0 0TotalCashOutflows 1996 2374 3071 3288 3379 25934 Increase/DecreaseinCash 1905 1744 2128 2561 2920 23301BeginningCashBalance 12043 13948 15692 17820 20381 0ClosingCashBalance 13948 15692 17820 20381 23301 23301


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TinyBabyGarmentCompany

PROJECTEDANNUALCASHFLOWSTATEMENTFortheYearsEndingNovember

2001 2002 2003CashInflows: CashReceipts 40235 53509 60601OtherSourcesofFunding: OwnerInvestment 3000 0 0OperatingLoanAdvances 0 0 0TermLoanAdvances 0 0 0SaleofFixedAssets 0 0 0OtherAssets 6000 0 0TotalCashInflows 49235 53509 60601

CashOutflows: PaymentOf: CostofSalesItems 21451 27005 30538Sales&MarketingItems 2100 1725 1525OperationsItems 538 425 435Property&UtilitiesItems 770 800 800Banking&OtherItems 1075 625 625OtherWages&BenefitsItems 0 3000 5000OtherUsesofFunding: RepaymentofShareholderCapital

0 0 0

PaymentofDividends/Earnings 0 0 0TermLoanInterest&Principal 0 0 0OperatingLoanInterest&principal

0 0 0

PurchaseofFixedAssets 0 0 0PaymentofOtherAssets 0 0 0PaymentofTaxes 0 0 0TotalCashOutflows 25934 33580 38923 Increase/DecreaseinCash 23301 19929 21678BeginningCashBalance 0 23301 43230ClosingCashBalance 23301 43230 64908


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TinyBabyGarmentCompanyPROFORMABALANCESHEET

AsatNovember

StartingBalance 2001 2002 2003ASSETS

CurrentAssets:

Cash 0 23301 43230 64908Accounts

Receivable0 2543 2200 3900

Inventory 0 1087 3420 5687OtherAssets 0 -5301 -5301 -5301TotalCurrent

Assets0 21630 43549 69194

FixedAssets: FixedAssets 0 0 0 0AccumulatedDepreciation

0 0 0 0

TotalFixedAssets 0 0 0 0

TOTALASSETS 0 21630 43549 69194

LIABILITIES&OWNER'SEQUITY

Liabilities: AccountsPayable 330 1087 3420 5687TaxesPayable 0 682 1779 3695

OperatingLoansPayable

0 0 0 0

TermLoans&Mortgages

0 0 0 0

TotalLiabilities 330 1769 5199 9382

Owner'sEquity: Paid-inCapital 0 3000 3000 3000

RetainedEarnings -330 16861 35350 56812TotalOwner's

Equity-330 19861 38350 59812

TOTALLIABILITIES&

OWNER'SEQUITY

0 21630 43549 69194


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TinyBabyGarmentCompanyRATIOANALYSISAsatNovember

RATIOS 2001 2002 2003GrossMargin 50 49 51NetProfitMargin 41.8 36.8 37.5ReturnonAssets 82.6 45 33.8AverageCollectionPeriodDays

22 15 23

InventoryTurnover 19.6 7.9 5.4TotalAssetsTurnover 2 1.2 .9DebttoNetWorth .1 .1 .2ReturnonOwner'sEquity 90 51.1 39.1TimesInterestCoverage 0 0 0

Note1:RevenueAssumptionsa. Ourrevenueprojectionsbyproductandbymonthforthefirstyearare:SuggestedRetailPriceisasFollows:FortheStrollerBags$90.00FortheBlankets$24.99FortheUVGear$55.00

ForthePajamas$24.99

Year1 StrollerBags

Qty Blankets Qty UVGear

Qty PajamaswithSnaps

Qty Total

Month1 400 10 280 20 680Month2 880 22 420 30 1300Month3 1320 33 560 40 1880Month4 1560 39 588 42 2148Month5 2000 50 686 49 175 7 2861Month6 2440 61 840 60 189 7 3469Month7 2880 72 924 66 210 8 98 7 4112Month8 2400 60 1092 78 300 12 110 8 3902Month9 2440 61 1260 90 350 14 130 9 4180

Month10 3240 81 1860 132 425 17 150 10 5675Month11 3480 81 2052 146 425 17 180 12 6137Month12 3880 97 2124 151 210 8 220 15 6434

Total 26920 673 12686 906 2284 90 888 61 42778

b. OurrevenueprojectionsbyproductforYears2and3are:


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StrollerBags Blankets UVGear PajamaswithSnaps

Total

Year2 30958 14208 5000 3000 53166

Year3 34673 15628 7000 5000 62301

Note2:AssumptionsRegardingtheCollectionofSalesRevenuea.Weassumethatthepercentofoursales,whicharecollectedinthemonththeyaremade,inthemonthfollowing,inthetwomonths,andinthethreemonths,are:

CurrentMonth 70IntheFollowingMonth 20InTwoMonths 10InThreeMonths 0Total 100

b.Basedontheseassumptions,wehaveprojectedhowmuchwewillcollectfromoursalesineachmonth.Thefollowingtablealsoidentifiesanyadjustmentswemayhavemadetothesefigures.

Year1 ProjectedCollections Adjustment RevisedEstimateMonth1 476 476Month2 1046 1046Month3 1644 1644Month4 2010 2010Month5 2620 2620Month6 3215 3215Month7 3858 3858Month8 3901 3901Month9 4118 4118

Month10 5199 5199Month11 5849 5849Month12 6299 6299Total 40235 0 40235

c.Notallofoursalesinthefirstyearwillbecollectedduringthatyear.Basedontheassumptionsshownabove,ourAccountsReceivableattheendofYear1willbe:

2543

d.WeassumethatourAccountsReceivableattheendofYears2and3willbe:

Year2 2200

Year3 3900

Note3:CostofSalesAssumptionsa.OurassumptionsregardingtheamountthatwewillpayeachmonthinYear1forCostofSalesitemslistedbelow.Thesefiguresshowuponourcashflowstatements.

Year1 Production Goods& ***** ***** Total


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Wages Materials

Month1 136 108 244Month2 151 606 757Month3 198 791 989

Month4 247 990 1237Month5 290 1150 1440Month6 360 1395 1755Month7 420 1601 2021Month8 396 1450 1846Month9 439 1660 2099Month10 620 2301 2921Month11 630 2458 3088Month12 740 2314 3054Total 4627 16824 21451

b.OurassumptionsregardingtheamountthatwewillpayinYear2and3forCostofSalesitemslistedbelow.ThesefiguresshowuponourannualCashFlowStatement.

Year1 ProductionWages

Goods&Materials

***** ***** Total

Year2 7975 19030 27005Year3 9356 21182 30538

c.Someofthesepaymentsmayhavebeentoproduceorpurchasegoodsthatwewon'thavesoldyet.WeestimatethevalueofsuchgoodsthatwewillhaveininventoryattheendofYears1,2,and3willbe:

Year InventoryBeginningBalance 0Year1 1087Year2 3420Year3 5687

d.Apartfromwhatwehavealreadypaidfor,theremaybeadditionalCostofSalesgoodsorservicesthatwehavereceivedbutwewon'thavepaidforyet.Weestimatetheamountthatwewillowe(haveasanAccountPayable)forCostofSalesitemsattheendofYears1,2,and3willbe:

Year CostofSalesPayableBeginningBalance 194Year1 1087Year2 3420Year3 5687

e.Basedontheseassumptions,wehavecalculatedourCostofSalesexpenses.Thesefigures,whichshowuponourIncomeStatement,areshowninbothdollarvaluesandasapercentofourprojectedrevenues.

CostofSales $ %Year1 21257 50Year2 27005 51Year3 30538 49

Note4:SalesandMarketingAssumptions


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a.OurassumptionsregardingtheamountthatwewillpayeachmonthinYear1forSalesandMarketingitemsarelistedbelow.Thesefiguresshowuponourcashflowstatements.

Year1 Advertising Travel Tradeshows Website Total

Month1 250 50 100 400Month2 35 50 65 150Month3 50 50 100Month4 50 50Month5 50 50 500 600Month6 200 50 100 350Month7 50 50 100Month8 50 50Month9 50 50 100Month10 50 50Month11 50 50 100Month12 50 50Total 735 600 165 600 2100

b.OurassumptionsregardingtheamountthatwewillpayinYear2and3forSalesandMarketingitemsarelistedbelow.ThesefiguresshowuponourannualCashFlowStatement.

Year1 Advertising Travel Tradeshows Website TotalYear2 700 600 175 250 1725Year3 500 600 175 250 1525

c.Apartfromwhatwehavealreadypaidfor,theremaybeadditionalSalesandMarketingitemswhichwehavereceivedbutwewon'thavepaidforyet.Weestimatetheamountthatwewillowe(haveasanAccountPayable)forSalesandMarketingitemsattheendofYears1,2,and3willbe:

Year SalesandMarketingPayableBeginningBalance 200

Year1 Year2 Year3

d.Basedontheseassumptions,wehavecalculatedourSalesandMarketingexpenses.Thesefigures,whichshowuponourIncomeStatement,areshowninbothdollarvaluesandasapercentofourprojectedrevenues.

SalesandMarketing $ %Year1 1900 4Year2 1725 3Year3 1525 2

Note5:PropertyandUtilitiesAssumptionsa.OurassumptionsregardingtheamountthatwewillpayeachmonthinYear1forProperty&Utilitiesitemsarelistedbelow.Thesefiguresshowuponourcashflowstatements.

Year1 Rent&Property Utilities Telephone Other TotalMonth1 0Month2 70 70Month3 70 70


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Month4 70 70Month5 70 70Month6 70 70Month7 70 70

Month8 70 70Month9 70 70Month10 70 70Month11 70 70Month12 70 70Total 770 770

b.OurassumptionsregardingtheamountthatwewillpayinYear2and3forProperty&Utilitiesitemsarelistedbelow.ThesefiguresshowuponourannualCashFlowStatement.

Year1 Rent&Property Utilities Telephone Other TotalYear2 800 800Year3 800 800

c.Apartfromwhatwehavealreadypaidfor,theremaybeadditionalProperty&Utilitiesitems,whichwehavereceivedbutwewon'thavepaidforyet.Weestimatetheamountthatwewillowe(haveasanAccountPayable)forProperty&UtilitiesitemsattheendofYears1,2,and3willbe:

Year Property&UtilitiesPayableBeginningBalance 135Year1 0Year2 0Year3 0

d.Basedontheseassumptions,wehavecalculatedourProperty&Utilitiesexpenses.Thesefigures,whichshowuponourIncomeStatement,areshowninbothdollarvaluesandasapercentofourprojectedRevenues.

PropertyandUtilities $ %Year1 635 1Year2 800 2Year3 800 1

Note6:OperationsAssumptionsa.OurassumptionsregardingtheamountthatwewillpayeachmonthinYear1forOperationsitemsarelistedbelow.Thesefiguresshowuponourcashflowstatements.

Year1 Supplies RepairandMaintenance

VehiclesandTravel

LicensesandPermits

Total

Month1 240 155 395Month2 0Month3 0Month4 68 68Month5 0Month6 0Month7 0Month8 0Month9 75 75Month10 0


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Month11 0Month12 0Total 383 155 538

b.OurassumptionsregardingtheamountthatwewillpayinYear2and3forOperationsitemsarelistedbelow.ThesefiguresshowuponourannualCashFlowStatement.

Year1 Supplies RepairandMaintenance

VehiclesandTravel

LicensesandPermits

Total

Year2 300 125 425Year3 300 135 435

c.Apartfromwhatwehavealreadypaidfor,theremaybeadditionalOperationsitems,whichwehavereceivedbutwewon'thavepaidforyet.Weestimatetheamountthatwewillowe(haveasanAccountPayable)forOperationsitemsattheendofYears1,2,and3willbe:

Year OperationsPayableBeginningBalance 0

Year1 0Year2 0Year3 0

d.Basedontheseassumptions,wehavecalculatedourOperationsexpenses.Thesefigures,whichshowuponourIncomeStatement,areshowninbothdollarvaluesandasapercentofourprojectedrevenues.

Operations $ %Year1 538 1Year2 425 1Year3 435 1

Note7:BankingandOtherAssumptionsa.OurassumptionsregardingtheamountthatwewillpayeachmonthinYear1forBanking&Otheritemsarelistedbelow.Thesefiguresshowuponourcashflowstatements.

BankCharges Accounting&Legal

Insurance Other Total

Month1 350 350Month2 250 250Month3 30 30Month4 30 30Month5 30 30Month6 30 30Month7 30 30Month8 30 30

Month9 30 30Month10 30 30Month11 30 30Month12 30 175 205Total 300 525 250 1075

b.OurassumptionsregardingtheamountthatwewillpayinYear2and3forBanking&Otheritemsarelistedbelow.ThesefiguresshowuponourannualCashFlowStatement.

BankCharges Accounting& Insurance Other Total


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Legal

Year2 300 375 250 925Year3 300 375 250 925

c.Apartfromwhatwehavealreadypaidfor,theremaybeadditionalBanking&Otheritems,whichwehavereceivedbutwewon'thavepaidforyet.Weestimatetheamountthatwewillowe(haveasanAccountPayable)forBanking&OtheritemsattheendofYears1,2,and3willbe:

Year AmountPayableBeginningBalance 500Year1 0Year2 0Year3 0

d.Basedontheseassumptions,wehavecalculatedourBanking&Otherexpenses.Thesefigures,whichshowuponourIncomeStatement,areshowninbothdollarvaluesandasapercentofourprojectedrevenues.

BankingandOther $ %Year1 575 1Year2 925 1Year3 925 1

Note8:WagesandOtherAssumptionsa.OurassumptionsregardingtheamountthatwewillpayeachmonthinYear1forWages&Otheritemsarelistedbelow.Thesefiguresshowuponourcashflowstatements.

Year1 self p/tassistant ***** ***** TotalMonth1 0Month2 0Month3 0Month4 0Month5 0Month6 0Month7 0Month8 0Month9 0Month10 0Month11 0Month12 0Total 0

b.OurassumptionsregardingtheamountthatwewillpayinYear2and3forWages&Otheritemsarelistedbelow.ThesefiguresshowuponourannualCashFlowStatement.

Year1 self p/tassistant ***** ***** TotalYear2 1500 1500 3000Year3 2500 2500 5000

c.Apartfromwhatwehavealreadypaidfor,theremaybeadditionalWages&Otheritems,whichwehavereceivedbutwewon'thavepaidforyet.Weestimatetheamountthatwewillowe(haveasanAccountPayable)forWages&OtheritemsattheendofYears1,2,and3willbe:

Year WagesandPayable


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BeginningBalance 0Year1 0Year2 0Year3 0

d.Basedontheseassumptions,wehavecalculatedourWages&Otherexpenses.Thesefigures,whichshowuponourIncomeStatement,areshowninbothdollarvaluesandasapercentofourprojectedrevenues.

WagesandOther $ %Year1 0 0Year2 3000 6Year3 5000 8

Note9:OtherSourcesofFundinga.OurassumptionsregardingothersourcesoffundingforourbusinessinYear1are:

InvestmentbyOwners

OperatingLoanAdvances

TermLoanAdvances

SalesofFixedAssets

SEGrant

Month1 3000 1000Month2 1000Month3 1000Month4 1000Month5 1000Month6 1000Month7 Month8 Month9 Month10

Month11 Month12 Total 3000 6000

b.OurassumptionsregardingothersourcesoffundingforYears2and3are:

InvestmentbyOwners

OperatingLoanAdvances

TermLoanAdvances

SalesofFixedAssets

OtherAssets

Year2 Year3

Note10:OtherUsesofFundinga.OurassumptionsregardingpaymentstoownersandrepaymentofloanprincipalandinterestinYear1are:

PaymentorRepaymentof

CapitaltoShareholders

Dividends/EarningsShareholders

OperatingLoanInterest&Principle

TermLoanInterest&Principle

Month1 Month2 Month3 Month4 Month5


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Month6 Month7 Month8 Month9

Month10 Month11 Month12 Total

b.OurassumptionsregardingpaymentstoownersandrepaymentofloanprincipalandinterestinYears2and3are:


CapitaltoShareholders

Dividends/EarningsShareholders


TermLoanInterest&Principle

Year2 Year3

c.OurassumptionsregardingotherpaymentsinYear1are:

OtherUsesofFunds PurchaseofFixedAssets

PaymentsforOtherAssets

PaymentforIncomeTaxes

Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12

Total

d.OurassumptionsregardingotherpaymentsinYear2and3are:


CapitaltoShareholders Dividends/EarningsShareholders


Year2 Year3

Documents

Business Plan on Tiny