Enterslice is a management consulting firm providing strategic, financial advisory, due diligence services, Advisory on International Taxation and Audit issues, Corporate governance, Financial Control Advisory and growth hacking services to early stage startup, Establish businesses and MNC.
2. Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided in this business plan is
confidential; therefore, reader agrees not to disclose it without express written permission.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
_______________.
Upon request, this document is to be immediately returned to _______________.
____________________________
Signature
____________________________
Name (typed or printed)
____________________________
Date
This is a business plan. It does not imply an offering of securities.
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1.0 Executive Summary
Enterslice LLP Etc. is a start-up retail store offering fine gifts, collectible dolls and doll
accessories. The store will be located in Lexington, Kentucky, catering to the middle- and
upper-class consumers who look beyond the congested retail malls for the special shopping
experience. In addition to offering a wide array of unique, quality products, the consumer will
enjoy friendly and knowledgeable customer service and a convenient, uncongested location.
This business plan is prepared to obtain financing in the amount of $50,000 to
purchase inventory and to help cover expenses in the first year of operations. We are also
asking for a credit line of $10,000 to be used as necessary in low cash flow periods. Brenda and
Charles Gajdik will own and operate the store together as a team. They will provide $40,000 in
cash as an equity investment to be used in start-up costs, equipment purchases, and operating
capital.
The sales forecasts used in this plan are very conservative compared to a similar business now
operating in Lexington. Brenda has observed the strengths and weaknesses of this store and is
convinced it can be done better.
Chart: Highlights
1.1 Objectives
To develop Enterslice LLPEtc. into the premier gift retail store in Central Kentucky.
To begin and maintain a gross profit margin above 40% for the first year.
To acquire a customer base of 4,000 by the end of the second year by using personal
customer service and marketing.
To achieve a substantial net profit by the end of Year 3.
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1.2 Mission
Enterslice LLPEtc.will be a retail gift store specializing in fine gifts, collectible dolls and doll
accessories. We want to provide products from quality suppliers and provide professional
customer service in a friendly environment.
1.3 Keys to Success
To succeed in this business we must:
Sell products the customer desires and are of the highest quality.
Provide friendly customer service.
Establish excellent vendor/supplier relations that will facilitate quick shipment of orders.
Advertise and promote our store immediately to take advantage of the current Christmas
shopping season.
Continuously review our inventory and sales and adjust our inventory levels based on
detailed records.
2.0 Company Summary
Enterslice LLPEtc. is proposed to be a sole-proprietorship company operated by Brenda and
Charles Gajdik and is a newly established retail store offering unique gifts and elegant
collectible dolls.
Located in Lexington, Kentucky, we will cater to special consumers who are interested in
finding unique items to supplement their doll collection or finding a gift that cannot be found in
the national chain store in the very busy, very congested shopping mall.
We intend to expand our business by carefully building a repeat customer base and provide the
products and merchandise they wish to purchase. We feel it is important to offer personal
customer support and services to achieve our business philosophy.
2.1 Company Ownership
Enterslice LLPEtc. will begin operation as a sole-proprietorship. The company will be owned by
Charles and Brenda Gajdik.
2.2 Startup Summary
Total current and long-term assets will make up 78% of start-up requirements. Start-up
expenses, which are detailed in the following start-up table comprise the remaining 22% at
$20,058
Funding
As detailed in the start-up funding table, $90,000 with a $10,000 line of credit will be required
to fund Enterslice LLPEtc. This proposal is to be accomplished as follows:
Owners' investment from Charles and Brenda of $40,000
Commercial loan of $50,000, calculated at 7% for seven years
Line of credit of $10,000 to be used as necessary
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Details of other start-up expenses include:
Research and Development:
Buying trip expenses to Columbus, OH. $133
Buying trip expenses to Atlanta, GA. $430
Internet provider service paid in July, for the Year 1 $120
Total $683
1st Month Rent & Deposit (proposed location):
Rent = $9.50/square foot $1425/mo. $17,100/yr.
Common Area Maintenance (CAM) =
$1.50/square foot
$225/mo. $2700/yr.
Total Rent and CAM $1650/mo. $19,800/yr.
Leasehold Improvements:
Slatwall Panels and Accessories 50 panels @ $50 each $2500
Ceiling Tiles 1,400 sq ft @ $.50/sq ft $700
Carpet with Pad 1,400 sq ft @ 2.50/sq ft $3500
Carpenter Estimate Display Risers and Counter $300
Total $7,000
Phone line installation: Single line installation $100
Insurance: Medical insurance for Brenda and Charles $650 first month
Advertising & Promotion:
Newspaper
$76/week for 26 weeks (Community Section on
Wednesday)
$1976
TV Shopping with Santa in the Bluegrass $1500
Total $3476
Table: Startup
Startup
Requirements
Startup Expenses
Utility Deposits (gas, water, electric) $600
Legal $250
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Advertising & Promotion $3,500
Consultants $200
Insurance: Store Liability $2,400
Medical Insurance 1st Month $650
Office Supplies, Gift Wrap and Packaging $1,500
Leasehold Improvements $7,000
1st Month Rent & Deposit $3,075
Phone line installation $100
Research and Development $683
Business Plan Development $100
Total Startup Expenses $20,058
Startup Assets
Cash Required $12,185
Other Current Assets $12,757
Long-term Assets $0
Total Assets $24,942
Total Requirements $45,000
Chart: Startup
2.3 Company Locations and Facilities
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3.0 Products
Enterslice LLPEtc. plans to carry special occasion gifts and merchandise from the San Francisco
Music Box Company, Swarovski crystal, Lennox crystal, Outback Chair Company, Traditions
Artglass Company, children's books from Harvest House and other suppliers who display their
products at the Atlanta International Gift Market or the Columbus Marketplace for Gift, Garden
and Home.
We will also purchase merchandise from the most well-known collectible doll manufacturers and
suppliers in the United States, including Steiff, Madame Alexander, Turner Dolls, Lee Middleton,
Wendy Lawton, Susan Wakeen, Kish Dolls, Lloyd Middleton and others that provide the quality
products that our customers wish to purchase.
3.1 Product Description
3.2 Competitive Comparison
3.3 Sales Literature
3.4 Sourcing
3.5 Technology
3.6 Future Products
4.0 Market Analysis Summary
According to Pam Danziger, President of Unity Marketing, the collectible doll industry generated
$3 billion in retail sales in 2000. The gift industry, which includes general gifts, collectibles,
stationery and greeting cards, generated $54 billion in sales in 2002. As predicted by Unity
Marketing, "the future of the gifts and home accents market is positive for the next several
years." Source:Unity Marketing, The Home Report 2001:The Market, The Competitors, The
Trends
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4.1 Market Segmentation
The ideal customer we expect to serve is:
Middle to Upper Class
Primarily Female
30-75 Years of Age
Educated
Homeowner
Quality Conscious
Value Conscious
Family Oriented
We will attract these customers by offering unique and uncommon product selections not found
in the mass-market retail stores.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Recreational Artists 15% 5,000 5,750 6,613 7,605 8,746 15.00%
Serious Artists 10% 2,000 2,200 2,420 2,662 2,928 10.00%
Total 13.64% 7,000 7,950 9,033 10,267 11,674 13.64%
Chart: Market Analysis (Pie)
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4.2 Target Market Segment Strategy
4.2.1 Market Needs
4.2.2 Market Trends
4.2.3 Market Growth
4.3 Industry Analysis
More and more consumers are seeking independent retailers that offer them the feel of
home with a more personalized shopping experience.
As consumers become more time-deprived, they are looking to shop at stores whose service
offerings are as equal in quality and value to their products.
4.3.1 Industry Participants
4.3.2 Distribution Patterns
4.3.3 Competition and Buying Patterns
Brand name products sell well in stores that maintain a good selection, good location, and
knowledgeable, friendly employees. These are the most important factors when selling
collectibles and gifts.
There is only one store in the Lexington area that carries a wide variety of collectible dolls.
However, the doll inventory only makes up about 25% of the total inventory. We do not
consider this store serious competition because their lease for the 4800 sq. ft. store expires in
March, 2004, and it is rumored the business will not renew the lease.
Other stores in the Central Kentucky area carry one or two lines of dolls but do not offer a wide
variety of collectible doll lines. We intend to offer many different doll lines, doll accessories,
personalized knowledgeable service, and a variety of other unique gift merchandise.
The Internet offers dolls at discount prices. However, most of the merchandise is retired or
discontinued lines that the manufacturers sell in bulk at discount wholesale prices. These are
not the products we intend to carry in Enterslice LLPEtc.
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We intend to develop a web page at some point, probably in year three to market
our merchandise on the Internet.
4.3.4 Main Competitors
5.0 Web Plan Summary
5.1 Website Marketing Strategy
5.2 Development Requirements
6.0 Strategy and Imlpementation Summary
Enterslice LLPEtc. will develop product offerings and marketing strategy to increase its
customer base while driving sales and profit. The following sections review the various
strategies that will support this effort.
6.1 SWOT Analysis
6.1.1 Strengths
6.1.2 Weaknesses
6.1.3 Opportunities
6.1.4 Threats
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6.2 Strategy Pyramid
6.3 Value Proposition
6.4 Competitive Edge
Enterslice LLPEtc. will establish itself competitively as a unique retail environment through
product offering and friendly, personal customer service. With St. Joseph Hospital, medical
offices, the Kentucky Inn, the University of Kentucky and the Campbell House all located within
1/2 mile of the proposed site, we will attempt to offer items that appeal to this diverse
population as well as the doll collector.
6.5 Marketing Strategy
Enterslice LLPEtc. will focus its marketing efforts by advertising in the Lexington Herald-Leader
and Insight Media Advertising on cable TV.
We will also increase consumer awareness, retain the existing customer base and promote
sales via seasonal postcard and newsletter mailings. The mailings will announce special events
or holiday specials during the year. These events will be used to sell slow-moving products and
vendor special promotions. This means our marketing resources will be centered around both
sales promotions (events, displays) and personal sales (customer service, friendly atmosphere).
Enterslice LLPEtc. will offer $5 coupons for every $100 spent. The coupon can be used by the
customer on future visits to the store.
6.5.1 Positioning Statement
6.5.2 Pricing Strategy
6.5.3 Promotion Strategy
6.5.4 Distribution Strategy
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6.5.5 Marketing Programs
6.6 Sales Strategy
Enterslice LLPEtc. will approach sales from a salesperson-customer relationship basis. All
customers will be assisted in a very personal manner. Gathering key customer information and
seeking performance feedback on the products and services offered will assist us in the
following ways:
Targeting our marketing efforts more effectively.
Developing product offers and merchandising formats that will increase sales.
Developing services that enhance the shopping experience.
Increase awareness of Enterslice LLPEtc. within the retail consumer marketplace.
Develop future sales opportunities that allow for continued growth of the business.
6.6.1 Sales Forecast
Sales in the retail gift and collectible doll industry is enhanced by seasonal holidays and special
gift giving occasions. The following sales forecast is from direct retail sales and does not include
miscellaneous income. The figures also include dips in sales for those slow periods the business
usually experiences in the summer months.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Dolls & Accessories $72,105 $80,758 $90,449
Gifts $71,405 $79,974 $89,570
Total Sales $143,510 $160,731 $180,019
Direct Cost of Sales Year 1 Year 2 Year 3
Dolls & Accessories $40,871 $42,915 $45,060
Gifts $40,885 $42,929 $45,076
Subtotal Direct Cost of Sales $81,756 $85,844 $90,136
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6.7 Strategic Alliances
6.8 Milestones
The following table lists important milestone dates.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 01-11-2003 18-11-2003 $0 Charles Department
Secure Funding 18-11-2003 31-12-2003 $0 Charles Department
Negotiate and Sign Lease 18-11-2003 31-12-2003 $0 Charles Department
Business Setup 18-11-2003 31-12-2003 $0 Charles Department
Leasehold Improvements 18-11-2003 31-12-2003 $0 Charles Department
Purchase Start-up
Equipment
18-11-2003 31-12-2003 $0 Charles Department
Advertising Developed 01-01-2004 01-02-2004 $0 Charles/Brenda Department
Store Open For Business 01-02-2004 02-02-2004 $0 Charles/Brenda Department
Totals $0
Chart: Milestones
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7.0 Management Summary
Enterslice LLPEtc. will be managed and operated on a daily basis by Brenda and Charles Gajdik,
a husband and wife team.
Brenda will manage merchandising, sales, customer relations, and all part-time staff. She will
also provide the information necessary to develop a marketing plan to attract repeat customers.
Brenda has been employed for three years at Schwab's Collectibles, a retail collectible and gift
store in Lexington. She is currently the assistant store manager which she has held for two
years. Some of her management duties include shipping and receiving, merchandising, and
sales. She has always served the public in most every position she has previously held. She
understands what customer service is and has a loyal following of repeat customers.
Charles will manage the finances and financial records, operations, data processing and assist
in all other areas of the business. Charles has 14 years experience in accounting and nearly 15
years experience in information technology as an Information Systems (IS) Support Specialist.
He also maintains the financial records for a family owned business and has some experience in
retail sales.
7.1 Organizational Structure
Org. Chart: Organizational Chart
7.2 Management Team
7.3 Management Team Gaps
7.4 Personnel Plan
The personnel plan is included in the following table. It shows the owners' salaries along with
one part-time employee used as needed.
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Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
Brenda Owner/Manager-Sales & Merchandising $14,600 $16,000 $16,000
Charles Owner/Manager-Operations & Finance $9,000 $14,000 $14,000
Part-Time as Needed ($7 per hour) $3,120 $4,120 $5,120
Total People 3 3 3
Total Payroll $26,720 $34,120 $35,120
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8.0 Financial Plan
Growth will be moderate.
Costs will be managed and forecasts for future needs will be performed on a regular basis.
Finding the right product, at the right price will enable the business to meet planned
margins and maintain inventory at an acceptable level.
8.1 Startup Funding
Table: Startup Funding
Startup Funding
Startup Expenses to Fund $20,058
Startup Assets to Fund $24,942
Total Funding Required $45,000
Assets
Non-cash Assets from Startup $12,757
Cash Requirements from Startup $12,185
Additional Cash Raised $45,000
Cash Balance on Starting Date $57,185
Total Assets $69,942
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $50,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $50,000
Capital
Planned Investment
Charles & Brenda Gajdik $40,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $40,000
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Loss at Startup (Startup Expenses) ($20,058)
Total Capital $19,942
Total Capital and Liabilities $69,942
Total Funding $90,000
8.2 Important Assumptions
Key assumptions are:
We do not sell anything on credit.
We assume the continued popularity of collectibles.
We assume access to financing sufficient to maintain our financial plan as shown in the
tables.
8.3 Key Financial Indicators
Chart: Benchmarks
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8.4 Break-even Analysis
The following table and chart show our estimated monthly revenue break-even point.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $11,013
Assumptions:
Average Percent Variable Cost 57%
Estimated Monthly Fixed Cost $4,739
Chart: Break-even Analysis
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8.5 Projected Profit and Loss
The following table shows our planned three-year profit and loss estimates. We expect to have
a gross margin percent above 40% our first year, which will continue to grow in years two and
three.
The associated charts show that we will have a negative profit/sales percentage for the first two
years with a positive net profit by year three.
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $143,510 $160,731 $180,019
Direct Cost of Sales $81,756 $85,844 $90,136
Other Costs of Goods $0 $0 $0
Total Cost of Sales $81,756 $85,844 $90,136
Gross Margin $61,754 $74,887 $89,883
Gross Margin % 43.03% 46.59% 49.93%
Expenses
Payroll $26,720 $34,120 $35,120
Sales and Marketing and Other Expenses $600 $1,200 $2,400
Depreciation $0 $0 $0
Rent and CAM Expense $18,150 $18,150 $18,150
Utilities $3,600 $3,600 $3,600
Liability Insurance:Store $0 $2,400 $2,400
Insurance (medical Brenda & Charles) $7,800 $7,150 $7,150
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $56,870 $66,620 $68,820
Profit Before Interest and Taxes $4,884 $8,267 $21,063
EBITDA $4,884 $8,267 $21,063
Interest Expense $3,156 $2,549 $1,915
Taxes Incurred $518 $1,716 $5,745
Net Profit $1,209 $4,003 $13,404
Net Profit/Sales 0.84% 2.49% 7.45%
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8.6 Projected Cash Flow
The following table and chart represents the projected cash flow.
Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $143,510 $160,731 $180,019
Subtotal Cash from Operations $143,510 $160,731 $180,019
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 $143,510 $160,731 $180,019
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $26,720 $34,120 $35,120
Bill Payments $105,306 $122,806 $130,765
Subtotal Spent on Operations $132,026 $156,926 $165,885
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 $9,060 $9,060 $9,060
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $141,086 $165,986 $174,945
Net Cash Flow $2,424 ($5,254) $5,074
Cash Balance $59,609 $54,355 $59,429
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8.7 Projected Balance Sheet
The following table shows our projected Balance Sheet.
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $59,609 $54,355 $59,429
Other Current Assets $12,757 $12,757 $12,757
Total Current Assets $72,366 $67,112 $72,186
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $72,366 $67,112 $72,186
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $10,275 $10,077 $10,808
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $10,275 $10,077 $10,808
Long-term Liabilities $40,940 $31,880 $22,820
Total Liabilities $51,215 $41,957 $33,628
Paid-in Capital $40,000 $40,000 $40,000
Retained Earnings ($20,058) ($18,849) ($14,846)
Earnings $1,209 $4,003 $13,404
Total Capital $21,151 $25,154 $38,558
Total Liabilities and Capital $72,366 $67,112 $72,186
Net Worth $21,151 $25,154 $38,558
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8.8 Business Ratios
The following table outlines some of the more important ratios from the Gift Shop industry. The
final column, Industry Profile, details specific ratios based on the industry as it is classified by
the Standard Industry Classification (SIC) code 5947.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 12.00% 12.00% 3.34%
Percent of Total Assets
Other Current Assets 17.63% 19.01% 17.67% 23.99%
Total Current Assets 100.00% 100.00% 100.00% 80.29%
Long-term Assets 0.00% 0.00% 0.00% 19.71%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 14.20% 15.02% 14.97% 36.19%
Long-term Liabilities 56.57% 47.50% 31.61% 15.42%
Total Liabilities 70.77% 62.52% 46.58% 51.61%
Net Worth 29.23% 37.48% 53.42% 48.39%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 43.03% 46.59% 49.93% 37.74%
Selling, General & Administrative Expenses 44.22% 47.15% 45.12% 23.72%
Advertising Expenses 0.00% 0.00% 0.00% 2.14%
Profit Before Interest and Taxes 3.40% 5.14% 11.70% 1.65%
Main Ratios
Current 7.04 6.66 6.68 1.98
Quick 7.04 6.66 6.68 0.74
Total Debt to Total Assets 70.77% 62.52% 46.58% 3.65%
Pre-tax Return on Net Worth 8.17% 22.73% 49.66% 58.19%
Pre-tax Return on Assets 2.39% 8.52% 26.53% 8.72%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 0.84% 2.49% 7.45% n.a
Return on Equity 5.72% 15.91% 34.76% n.a
Activity Ratios
Accounts Payable Turnover 11.25 12.17 12.17 n.a
Payment Days 27 30 29 n.a
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Total Asset Turnover 1.98 2.39 2.49 n.a
Debt Ratios
Debt to Net Worth 2.42 1.67 0.87 n.a
Current Liab. to Liab. 0.20 0.24 0.32 n.a
Liquidity Ratios
Net Working Capital $62,091 $57,034 $61,378 n.a
Interest Coverage 1.55 3.24 11.00 n.a
Additional Ratios
Assets to Sales 0.50 0.42 0.40 n.a
Current Debt/Total Assets 14% 15% 15% n.a
Acid Test 7.04 6.66 6.68 n.a
Sales/Net Worth 6.78 6.39 4.67 n.a
Dividend Payout 0.00 0.00 0.00 n.a
8.9 The Investment Offering
Table: Investment Offering
Investment Offering Seed Round 1 Round 2 Exit
Proposed Year: 1 2 3 7
Valuation, Investment, Shares
Investment Amount $0 $0 $0
Equity Share Offering Percentage 0.00% 0.00% 0.00%
Valuation $0 $0 $0 $0
Investor Exit Payout $0 $0 $0
Investor Years Until Exit 6 5 4
Investor IRR 0.00% 0.00% 0.00%
Share Ownership Year 1 Year 2 Year 3 Year 7
Founders' Shares 0 0 0 0
Stock Split Multiple 0 0 0
Stock Options Issued 0 0 0 0
Investor Shares Issued 0 0 0
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Price per share $0.00 $0.00 $0.00 $0.00
Options Holders' Shares 0 0 0 0
Year 1 Investors' Shares 0 0 0 0
Year 2 Investors' Shares 0 0 0
Year 3 Investors' Shares 0 0
Total Shares Outstanding 0 0 0 0
Equity Ownership Percentage Year 1 Year 2 Year 3 Year 7
Founders' Equity 0.00% 0.00% 0.00% 0.00%
Option Holders' Equity 0.00% 0.00% 0.00% 0.00%
Year 1 Investors' Equity 0.00% 0.00% 0.00% 0.00%
Year 2 Investors' Equity 0.00% 0.00% 0.00%
Year 3 Investors' Equity 0.00% 0.00%
Total Equity 0.00% 0.00% 0.00% 0.00%
Investors' Equity 0.00% 0.00% 0.00% 0.00%
Founders' & Employees' Equity 0.00% 0.00% 0.00% 0.00%
8.10 Valuation
Table: Investment Analysis
Investment Analysis
Start Year 1 Year 2 Year 3
Initial Investment
Investment $40,000 $0 $0 $0
Dividends $0 $0 $0 $0
Ending Valuation $0 $0 $0 $126,000
Combination as Income Stream ($40,000) $0 $0 $126,000
Percent Equity Acquired 35%
Net Present Value (NPV) $49,696
Internal Rate of Return (IRR) 47%
Assumptions
Discount Rate 10.00%
Valuation Earnings Multiple 10 10 10
Valuation Sales Multiple 2 2 2
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Investment (calculated) $40,000 $0 $0 $0
Dividends $0 $0 $0
Calculated Earnings-based Valuation $10,000 $40,000 $130,000
Calculated Sales-based Valuation $290,000 $320,000 $360,000
Calculated Average Valuation $150,000 $180,000 $245,000
8.11 Use of Funds
Table: Use of Funds
Use of Funds
Use Amount
Name $0
Name $0
Name $0
Name $0
Total $0
8.12 Payback
Table: Payback
Payback
Projected Payback Calculation
Investment Year 1 Year 2 Year 3 Year 4 Year 5
Investment $500,000
Cash Returns by Year $100,000 $100,000 $100,000 $100,000 $100,000
Combination as Income Stream ($500,000) $100,000 $100,000 $100,000 $100,000 $100,000
Cumulative Net Cash Flow to
Investors
($500,000) ($400,000) ($300,000) ($200,000) ($100,000) $0