Reacel Trading Feasibility Study

8/20/2019 Reacel Trading Feasibility Study

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Table of Contents

&.' (xecutive !ummary.....................................................................................................................1&.& )b*ectives....................................................................................................................................1

&.+ ission...........................................................................................................................................1&.- eys to !uccess.........................................................................................................................2

+.' /ompany !ummary......................................................................................................................2+.& /ompany 0ocation 1 2acilities..............................................................................................2

+.+ /ompany )wnership................................................................................................................2+.- !tart3up !ummary....................................................................................................................2

Table4 !tart3up...............................................................................................................................2

Table4 !tart3up 2unding..............................................................................................................3-.' 5roducts............................................................................................................................................4

-.& 5roduct 1 !ervice %escription..............................................................................................4

-.+ /ompetitive (dge......................................................................................................................5

-.- !ales 0iterature..........................................................................................................................5

-.6 !ourcing........................................................................................................................................5

-.7 Technology...................................................................................................................................5

-.8 2uture 5roducts and !ervices...............................................................................................6

6.' arket 9nalysis !ummary.........................................................................................................6

6.& arket !egmentation..............................................................................................................6

Table4 arket 9nalysis................................................................................................................6

6.+ Target arket !egment !trategy........................................................................................76.- arket :rowth............................................................................................................................7

6.6 Industry 9nalysis.......................................................................................................................76.7 Industry 5articipants................................................................................................................7

6.8 %istribution 5atterns................................................................................................................6. /ompetition 1


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Table of Contents

.7 5ro*ected


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&.' (xecutive !ummary

>(9/(0 T>9%I": is a new business providing high3uality, full service distribution of coffee, specialty beverages and beverage3related

supplies to coffee houses and espresso stands.

The principal owner is >eal >. ape, whose combined experience brings office management, high levels of customer service and sales

management. 9t this time we are seeking additional euity capital to complement our own investment and are seeking to arrange a loanfor inventory and receivables financing. ?e have firm commitments to distribute several high3uality new age beverage products, andhave verbal commitments from independent retailers. ?e plan to distribute our first products within -'38' days of finali=ing financialarrangements.

!ales pro*ections for >(9/(0 T>9%I": are estimated to begin at approximately 5hp+,++@,''' the first year, increasing to approximately5hp+,77A,''' in Bear + and approximately 5hp+,@-8,''' in Bear -. )ur net profit is pro*ected at approximately 5hp+A-,''' the first year,

increasing to 5hp6'8,''' by the end of the third year of operation.

%istinguishing characteristics of our business will be the combination of management experience, sales and distribution experience, high3uality, innovative products and exceptional customer service. In particular, what really sets up apart is that we are the )"0B full service

distribution company servicing the coffee and specialty beverage industry in the !pokaneC"orthern Idaho market. In addition, >(9/(0T>9%I": has an exclusive contract to distribute a new, groundbreaking product that would enable us to gain immediate access to ama*ority of the potential customer base.

&.& )b*ectives

• To open and operate a successful coffee and new age beverage, employing three to five employees the first year.

• To obtain a minimum of &'' regular customers in the first year of operation.

• 9chieve first year sales of 5hp+,''','''.

• aintain an average gross margin of +7 percent.

• To produce a net profit of at least 5hp6'',''' by the end of the third year of operation.

&.+ ission

>(9/(0 T>9%I": intends to become a recogni=ed distributor of specialty beverages and beverage3related supplies and services to coffee

houses and espresso stands.

>(9/(0 T>9%I": plans to develop strong relationships with key customers so we will be viewed as indispensable partners, rather than

*ust another supplier. ?e will work closely with each customer to recommend product assortment uniue for their retail base, appropriatestocking levels, pricing and display assortments, as well as promotional ideas and material to increase sales. >(9/(0 T>9%I": will seek

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out and work with the manufacturers we represent to deliver the most innovative and exciting products possible to the customers weserve. ?e are not only selling product, we are selling service.

&.- eys to !uccess

• Innovative uality products.

• Individuali=ed customer service 3 providing our customers with what they want, when and how they want it.

• )nly full service distribution company.

• 2ully integrated programs to help customers increase sales through menu development, creative promotions, advertising, and custom

marketing material.

• (xclusive distribution rights to ground3breaking products not currently available in our market.

• The combined experience of the principal owner bring upper office management skills, high levels of customer service, and sales

management.

+.' /ompany !ummary

>(9/(0 T>9%I": is a new sole proprietorship company duly registered with the %epartment of Trade and Industry will be established

based on the details of the plan.

+.& /ompany 0ocation 1 2acilities

>(9/(0 T>9%I": will be located in >oom -'7 0


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Start-up

Requirements

Start-up Expenses

Legal Business Formation Php220Business Plan Php90Warehouse Lease Deposit Php2,00

!nsuran"e #$irst month% Php&00'tilities #$irst month% Php(&0Resear"h ) De*elopment Php+,200areting Php+,200 ./*ertising Php2&0Personnel Php2,00Business1$$i"e Supplies Php+,&&03omputer S4stems Php(,00Phone S4stem Php&03ommuni"ation Lines Php(005ra/e Sho617ran/ pening Php2,2005otal Start-up Expenses Php+,8&0

Start-up .ssets

3ash Require/ Php9,00

Start-up !n*entor4 Php&,000ther 3urrent .ssets Php+,&0Long-term .ssets Php05otal .ssets Php+0(,&&0

Total Requirements Php+20,000

Table4 !tart3up 2unding

Start-up Funding

Start-up Expenses to Fun/ Php+,8&0Start-up .ssets to Fun/ Php+0(,&&05otal Fun/ing Require/ Php+20,000

.ssets

:on-"ash .ssets $rom Start-up Php9(,&03ash Requirements $rom Start-up Php9,00 .//itional 3ash Raise/ Php03ash Balan"e on Starting Date Php9,005otal .ssets Php+0(,&&0

Lia;ilities an/ 3apital

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Lia;ilities

3urrent Borro6ing Php9&,000Long-term Lia;ilities Php0 .""ounts Pa4a;le #utstan/ing Bills% Php0ther 3urrent Lia;ilities #interest-$ree% Php05otal Lia;ilities Php9&,000

3apital

Planne/ !n*estment

!n*estor + Php2&,000ther Php0 .//itional !n*estment Requirement Php05otal Planne/ !n*estment Php2&,000

Loss at Start-up #Start-up Expenses% #Php+,8&0%5otal 3apital Php,&&0

5otal 3apital an/ Lia;ilities Php+0(,&&0

Total Funding Php+20,000

-.' 5roducts

>(9/(0 T>9%I": will provide a first3class delivery service of uality hot and cold beverage related supplies, including whole bean orground coffee, flavor syrups, *et teas, fruit smoothies, bubble teas, concentrated milk, fresh baked goods and assorted paper supplies. )urservices will include invaluable trade resources, effective promotional programs, custom3designed marketing material, informative monthlynewsletters, training and product demonstrations, as well as information on the latest market trends in the coffeeCspecialty beverage

industry.

-.& 5roduct 1 !ervice %escription

5>)%U/T %(!/>I5TI)">(9/(0 T>9%I": will carry a variety of uality products that will enable us to provide full service delivery to espresso stands and coffee

houses. )ur underlying philosophy in selecting products is to choose lines that will bring consistent uality, competitive prices, and productsatisfaction to our customers.

9t this time, the ma*ority of these products are only available to customers through wholesale vendors therefore it is the customerDsresponsibility to acuire these products by their own means. >(9/(0 T>9%I": will make these same products available through our highuality, full service delivery 3 bringing these products directly to their doorstep at a competitive price.

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!(>EI/( %(!/>I5TI)"9n important component of our business is not *ust our products, but our service. In addition to our full service delivery, the following are

other important service elements that we will offer to our customers4

• Ideas to help our customers increase sales through menu development, creative promotions, co3op advertising, and much more.

• /ustom designed marketing material such as printed banners, promotional posters, punch cards, pre3purchased beverage cards,

reader boards, etc.

• %istribute a monthly newsletter featuring the latest coffee trends, new industry euipment, breaking trade news, promotional ideas,

new creative recipes, and upcoming events.

• !amples of the latest product releases 3 with eye3catching point3of3sale to advertise new items to the end consumer.

• >outine euipment maintenance and training.

-.+ /ompetitive (dge

(B /)5(TITIE( !T>(":TF!"o other wholesaler in the market offers full service delivery with the variety of product we feature. ?e are better positioned than ourmain competitors to take advantage of the increasing demands of coffee and specialty beverage supplies because we focus exclusively on

high3uality distribution and customer service.

(B /)5(TITIE( ?(9"(!!(!

)ur primary weakness is that we are a new business competing largely against established suppliers. To significantly build sales, we mustnot *ust find new customers 3 we must take customers away from existing suppliers. Fowever by offering a superior selection of supplies,new groundbreaking products to the market, and focusing on high3uality service and full service delivery, we feel will can uicklyestablish accounts and build strong relationships.

-.- !ales 0iterature

!ales literature to be distributed to both current and potential customers will include brochures, fliers, newsletters, as well as other printmedia such as print advertisements.

-.6 !ourcing

>(9/(0 T>9%I": will purchase product directly from manufacturers, as well as master distributors.


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-.7 Technology

To streamline the efficiency of our distribution methods, >(9/(0 T>9%I": plans to use the latest in cutting edge technology 3 not only in

the warehouse 3 but also in the trade.

-.8 2uture 5roducts and !ervices

?ithin the first year of business, >(9/(0 T>9%I": intends to open a retailCwholesale store and high3uality showroom. 5roducts will beavailable for purchase by both our wholesale customers who may need product between delivery days, as well as retail consumers

interested in purchasing product for their home use. ?e will also offer a showroom that will feature euipment, supplies, trade resources,and information on marketing services with examples of marketing and promotional material available to customers.

?ith the addition of the product showroom, >(9/(0 T>9%I": will offer customers uarterly product and training demonstrations that willbe presented by trained beverage experts from the industry.

6.' arket 9nalysis !ummary

/offee is the second largest commodity market next to oil, and growth is expected to continue at a strong pace for the foreseeable future.The specialty beverage industry is growing at an eually strong pace, with sales growth in some categories pro*ected to grow at rates of6'H per year.

This growth offers excellent opportunities for new companies to enter this market, and we are excited about the possibilities of what>(9/(0 T>9%I": can accomplish in the market.

6.& arket !egmentation

The gourmet coffee and specialty beverage industry is divided into several segments. /onsumers who en*oy these products purchasedrinks at restaurants, coffee houses, sports venues, drive3thru espresso stands, and even inside other retail establishments that mightfeature an independent beverage stand.

Table4 arket 9nalysis

Market Analysis


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Total (>9= ((0 (8( (& (9 (( (>9=

6.+ Target arket !egment !trategy

?hile the market is already si=eable, this industry continues to grow. "ew espresso stands open their doors to the public on a monthlybasis in our market, and it isnDt uncommon to see numerous espresso stands within a one or two mile radius. The article below, published

by a national coffee retail maga=ine, discusses our marketDs uniue drive3thru espresso industry. The sales potential in this market isunlimited.

>(9/(0 T>9%I": initially plans to target these drive3thru espresso stands, as well as all inner3retail espresso stands within our designatedmarket. It is this segment that is most in need of the services we are planning to offer. (ssential needs include4 uality products atcompetitive prices, first class service, and strong sales support. It is most often these small owner3operated businesses that are neglectedby larger suppliers and are forced to service themselves. It is also these smaller businesses who could most greatly benefit from

marketing services, sales support, and full service product delivery. 5roviding the same high3uality service, within the first six months ofoperation, >(9/(0 T>9%I": plans to expand our target into formal coffee houses and cafes, and as business grows and stabili=es,eventually evaluate the needs of potential customers in the restaurants and bar industry.

6.- arket :rowth

/offee has been a growing industry for the past several years. In the gourmetCspecialty coffee industry alone, the figures show animpressive rate of growth.

The new age beverage industry is growing at an eually strong pace. !ales growth in the tea category alone is estimated to be 7'Hhistorically, with pro*ected growth rates of 6'H per year.

6.6 Industry 9nalysis

The coffee and specialty beverage industry is pulveri=ed, with hundreds of manufacturers, brokers, suppliers and retailers. In an open

industry growing at such a strong rate, >(9/(0 T>9%I": is in position to capitali=e on the customerDs need for uality product,exceptional service, and an effective partner to success.

6.7 Industry 5articipants

?ith the rate of growth in the gourmet coffee market, the industry is comprised of many small participants, each focusing on only a fewspecific items or brands at a time. 9s the markets evolve, we expect the industry to consolidate with larger distributors representing moreof a vast selection of products in each market.

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/urrently in our segment of the industry, there are no large national chains with market control. There are also few products that areoffered with exclusive rights to one market. ?hile this is the case with many products, >(9/(0 T>9%I": is working with manufacturers

to change that practice, and not only represent a larger variety of product than others in our industry, but also acuire exclusive rights tomany of the products in our portfolio.

6.8 %istribution 5atterns

!everal manufacturers are represented by master distributors andCor brokers who in turn provide the product to direct distributors andother wholesale suppliers. )ther manufacturers allow distributors and suppliers to purchase product direct 3 depending on the uantity ofproduct being purchased. 5roduct is then distributed or sold through cash and carry wholesale stores to retail businesses as illustratedbelow.

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7.& arketing !trategy

)ur basic marketing strategy is to work with customers on a one3to3one basis to ensure their supply needs are being met and help

develop uniue marketing programs for each of them. ?e intend to prioriti=e customer service and make it a key component of ourmarketing programs. ?e believe that providing our customers with what they want, when and how they want it, is the key to repeatbusiness and positive word3of3mouth advertising. (9/(0 T>9%I":G and emphasi=e to customers the high3ualityservice that is behind this name.

To support our marketing initiatives and product knowledge, we will attend as many area conventions and trade shows as possible toensure we are offering the most up3to3date market trend information.

7.+ 5romotion !trategy

>elationships are the key to success in the distribution business. 5ersonal selling will remain our most important means of promotion. >eal>. ape will lead this effort, with his skill and experience in sales and distribution, and in customer service and relations. In addition topersonal selling, >(9/(0 T>9%I": has identified several other means of advertising and publicity.

>(9/(0 T>9%I": will send news releases to local media and press, as well as trade maga=ines to try to get product and company featurecoverage in front of the eyes of our customers 3 as well as the end consumer.

7.- %istribution !trategy

To begin, >(9/(0 T>9%I": will operate deliveries between scheduled delivery days. %eliveries will be made onday through 2riday, andwill be strategically routed to minimi=e travel time and fuel costs 3 while maximi=ing production. )n average, we will service +'3-'

accounts per day, with deliveries to each account twice a week. 9s the number of accounts increase, the need for additional delivery willcontinue to be evaluated.

7.6 !ales !trategy

%istribution sales are dependent on repeat business, therefore the sales strategy for >(9/(0 T>9%I": is based on personal, consistentsales contact, with a high emphasis on customer service and relations.


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>(9/(0 T>9%I": will begin operations with two full3time deliveryCsales representatives, who will be responsible for providing full serviceand delivery to current customers, but also make sales calls for potential new business. This deliveryCsales representatives will receive a

base salary, with commission on ualified sales, as well as bonuses for new acuired business. /ustomers will be scheduled for a pre3arranged delivery day once or twice a week, depending on the uantity and timeline of product needed. 5roduct orders can be placed in anumber of ways to help facilitate the process4

• 5honed )rders4 /ustomers can easily phone orders into our office, up until +4-' p.m. of the afternoon prior to their scheduled delivery

day.

• 2axed )rders4 /ustomers can fax in a completed product order sheet, with the same deadline as phoned orders.

• Tel3!ell4 /ustomers may choose to have a representative from the office call them the day prior to their scheduled delivery to check

product uantities and assist them in placing their order.

?e understand the hectic schedule of a small business, so if a customer fails to call or fax their weekly order, they will receive a courtesycall from our office to verify that an order is not needed.

7.7 !ales 2orecast

9s indicated in the table, our sales are forecasted to increase rapidly, with an annual growth rate of approximately -'H.

Table4 !ales 2orecast

Sales Forecast


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Subtotal Direct Cost of Sales Php+,&8,&&0 Php2,0+2,( Php2,(09,2(0

5.6 Milestones

The following table and chart are the important milestones for >(9/(0 T>9%I":.

Milestones

ilestone Bu/get anager Department

aret15ra/e Resear"h Php+&0 SDS 1 @LS areting

Logo Design1areting Php+,(00 @LS areting

3omplete Business Plan Php90 @LS areting

Pro/u"t1Pri"ing 3omparison Php+&0 SDS 1 @LS areting

FinaliAe Potential 3lient List Php0 @LS areting

Li"ensing1!n"orporation Php200 @LS areting

Se"ure Pro/u"t Line Php0 @LS areting

Resear"h1Se"ure Finan"ing Php0 SDS 1 @LS areting

Warehouse Sele"tion1Buil/out Php0 SDS 1 @LS areting

Leasehol/ !mpro*ements Php&,000 SDS 1 @LS We;

Deli*er4 ehi"le Sele"tion Php0 SDS We;

De*elop Routing Php+00 SDS Department

?ire Deli*er41Sales Personnel Php+00 SDS Department

$$i"e Equipment13omputer1Supplies Php&,000 @LS Department

r/er Beginning !n*entor4 Php20,000 SDS 1 @LS Department

Press Releases1./*ertising Php2&0 @LS Department

rganiAe 7ran/ pening 5ra/e Sho6 Php(,000 @LS Department

Totals Php(&,(80

8.' anagement !ummary

>(9/(0 T>9%I": will be owned and operated by its proprietor, initially working with a small employee base that will cover sales and

delivery. anagement and personnel plans are covered in more detail in the topics to follow.

8.& )rgani=ational !tructure

>(9/(0 T>9%I": will be managed by the proprietor, whose individual areas of expertise cover many of the functional aspects of thebusiness.

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The organi=ational structure is very simple. >eal ape will be responsible for the routing, distribution management and delivery systems,for customer service, accounting, shipping and the general administration of the business. Together they will be responsible for product

selection and sales and marketing.

The support staff at the office and warehouse, as well as the delivery personnel will report to >eal. eal isout of the office, he will be in constant contact via computer or phone.

The goal of >(9/(0 T>9%I": is to have a team of committed associates who empower each other so that the customerDs expectations canbe exceeded. )ur goal is to offer career opportunities, advancement opportunities and a level of income and benefits that is competitivewithin the region and *ob classification. It is our long3term goal to be the preferred employer within our niche of the beverage distributionindustry.

8.+ anagement Team

>eal >. ape

!teve has a long history of experience in sales and distribution management, specifically in the beverage industry. 9s the sales anddistribution manager for the largest beverage distributorship in the state, he currently manages ten sales representatives and twenty four

merchandisers. %uring this time as sales manager, he has helped increase market share from +7 to 6'H.

)ver the last twenty years, >eal has successfully built and maintained rapport with buyers in the cityDs largest key accounts, and hasstrategically routed sales throughout the city.

>eal has many lead industry contacts and an in3depth knowledge of the market.

8.- 5ersonnel 5lan

5(>!)""(0 :("(>90Initially we expect to be able to handle business needs, one administrative assistant, and two product deliveryCsales personnel. 9s

business continues to grow, we intend to hire additional employees one at a time and pay premium, over market labor rates to attract andretain uality help.

"ot only will we train our employees to deliver excellent service, we will give them the flexibility to respond creatively to client reuests. In

addition, we will continually monitor our clientsD level of satisfaction with our service through surveys and other convenient feedbackopportunities.

To ensure our personnel are meeting our expectations, we will hold a minimum of uarterly meetings with all employees so that resultscan be reviewed and future plans can be discussed. 9t least twice a year, a refresher course will be reuired on product knowledge andhow to exceed our customerDs expectations.

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!90(! 9"% %(0IE(>BIn order to deliver high uality, personali=ed service we will carefully select all employees 3 with extra attention given to sales reps and

delivery personnel who will deal directly with customers. ?e will carefully review references not *ust from past employers ormanufacturers, but also from retailers whom these sales reps have served. ?e will also make sure that each employee understands ourway of delivering uality service to each customer. ?e will have immediate back3up support available by phone from our office for moredifficult service issues. ?e will also give employees enough latitude so that they can respond immediately to almost any customer reuest

or complaint 3 which in this industry usually means granting immediate credit for damaged merchandise, and adding additional

merchandise to an order.

Table4 5ersonnel

Personnel Plan


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.+


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Pro$it Be$ore !nterest an/ 5axes Php2(,+ Php(8+,( Php809,22EB!5D. Php2(,+ Php(8+,( Php809,22!nterest Expense Php,&0 Php8,20 Php2,005axes !n"urre/ Php9,(&8 Php8,+ Php+0(,(+2

ther !n"ome

!nterest !n"ome Php0 Php0 Php0ther !n"ome .""ount :ame Php0 Php0 Php05otal ther !n"ome Php0 Php0 Php0

ther Expense

.""ount :ame Php0 Php0 Php0ther Expense .""ount :ame Php0 Php0 Php05otal ther Expense Php0 Php0 Php0

:et ther !n"ome Php0 Php0 Php0:et Pro$it Php20,2+ Php2&2,&00 Php(0(,+0

et Profit!Sales 9>(0= 9>= +0>((=

.6 5ro*ected /ash 2low

The following table shows cash flow for the three years, and the chart illustrates monthly cash flow in the first year. onthly cash flow

pro*ections are included in the appendix.

Pro Forma Cash Flo


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Su;total Spent on perations Php+,9+9,&+ Php2,(,+0 Php2,2(,(9

.//itional 3ash Spent

:on perating #ther% Expense Php0 Php0 Php0Sales 5ax, .5, ?S517S5 Pai/ ut Php0 Php0 Php0Prin"ipal Repa4ment o$ 3urrent Borro6ing Php28,000 Php28,000 Php28,000ther Lia;ilities Prin"ipal Repa4ment Php0 Php0 Php0Long-term Lia;ilities Prin"ipal Repa4ment Php0 Php0 Php0Pur"hase ther 3urrent .ssets Php0 Php0 Php0Pur"hase Long-term .ssets Php0 Php0 Php0Di*i/en/s Php0 Php0 Php0Su;total 3ash Spent Php+,98(,&+ Php2,800,+0 Php2,8,(9

:et 3ash Flo6 Php2&,0+ Php+&,8+( Php2,&

Cash "alance Php29&,0+ Php8&8,0+8 Php82,2

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!atio Analysis

&= +8>= 0>00=

Per"ent o$ 5otal .ssets

!n*entor4 &(>2= (0>9(= 28>+= 0>00=ther 3urrent .ssets 2>9= 2>8= +>= +00>00=5otal 3urrent .ssets +00>00= +00>00= +00>00= +00>00=Long-term .ssets 0>00= 0>00= 0>00= 0>00=5otal .ssets +00>00= +00>00= +00>00= +00>00=

3urrent Lia;ilities >9+= (+>&= 2(>+9= 0>00=Long-term Lia;ilities 0>00= 0>00= 0>00= 0>00=5otal Lia;ilities >9+= (+>&= 2(>+9= 0>00=:et Worth (2>09= >82= >+= +00>00=

Per"ent o$ Sales

Sales +00>00= +00>00= +00>00= +00>00=7ross argin 2+>(+= 2+>((= 2+>(&= 0>00=Selling, 7eneral ) ./ministrati*e Expenses >+= >+= >&+= 0>00= ./*ertising Expenses 0>00= 0>00= 0>00= 0>00=Pro$it Be$ore !nterest an/ 5axes +2>0= +(>(8= +(>98= 0>00=

ain Ratios

3urrent +>8 (>+ 8>(+ 0>00ui" 0>9 2>+9 (>2 0>005otal De;t to 5otal .ssets >9+= (+>&= 2(>+9= 0>00=Pre-tax Return on :et Worth +2>+= +>9= &2>9= 0>00=Pre-tax Return on .ssets 8+>+(= 89>+9= 80>8= 0>00=

.//itional Ratios ((= n>aReturn on Equit4 9>08= &(>92= (9>(0= n>a

."ti*it4 Ratios

!n*entor4 5urno*er +0>9+ >0 +0>+ n>a .""ounts Pa4a;le 5urno*er &>( +2>+ +2>+ n>a

Pa4ment Da4s 2 89 2 n>a5otal .sset 5urno*er (>(2 (>8 2>92 n>a

De;t Ratios

De;t to :et Worth 2>+2 0>8 0>(0 n>a3urrent Lia;> to Lia;> +>00 +>00 +>00 n>a

Liqui/it4 Ratios

:et Woring 3apital Php2+&,2+ Php8,(2+ Php+,82 n>a!nterest 3o*erage 8(>+ 2>(( +8>+ n>a

.//itional Ratios

.ssets to Sales 0>(0 0>2 0>(8 n>a

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3urrent De;t15otal .ssets = (2= 2(= n>a ."i/ 5est 0>9 2>+9 (>2 n>aSales1:et Worth +0>(( &>8 (>+ n>a

Di$idend Payout 0>00 0>00 0>00 n>a

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 12Sales

E spr es so Sy ru ps 0% Ph p14, 322 P hp 16, 470 P hp18, 941 P hp 21, 782 P hp25, 04 9 Ph p28, 80 7 Php33, 12 8 Php38, 097 P hp43 ,811 P hp50, 383 P hp57 ,940 P hp66 ,632Chocolate Cara!el Sauces 0% Php10,465 Php12,034 Php13,839 Php15,915 Php18,303 Php21,048 Php21,048 Php24,205 Php27,836 Php32,011 Php36,813 Php42,335Spec"al ty #e$erae M"&es 0% Php8,626 Php6,363 Php3,759 Php4,006 Php4,242 Php4,732 Php7,887 Php10,498 Php21,167 Php30,347 Php34,899 Php40,134Enery 'r"n(s 0% Php1,530 Php1,760 Php2,023 Php2,327 Php2,676 Php3,077 Php3,539 Php4,070 Php4,680 Php5, 382 Php6,190 P hp7,118Co ncen tra te) M" l( 0% P hp1 ,530 Ph p2, 924 Php 3, 520 P hp4, 24 5 P hp5, 12 8 P hp6, 36 0 P hp7, 914 P hp9, 882 P hp12, 379 P hp15, 556 P hp19 ,604 P hp24 ,774P aper S uppl "es 0% Ph p51, 400 Php 47, 414 P hp43 ,114 Php 45, 849 Ph p51, 37 8 P hp58, 07 5 P hp68, 50 6 P hp85, 766 Ph p123, 777 P hp177, 815 P hp202, 120 P hp230 ,071Mar(et"n 0% Php700 Php805 Php910 Php1,015 Php1,155 Php1,295 Php1,470 Php1,680 Php1,890 Php2,170 Php2,450 Php2,765*otal Sales Php88,573 Php87,770 Php86,106 Php95,139 Php107,931 Php123,394 Php143,492 Php174,198 Php235,540 Php313,664 Php360, 016 Php413,829

'"rect Cost o+ Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

E spr es so Sy ru ps P hp11 ,908 Php 13, 694 Php15, 748 Php18, 110 Ph p20, 82 7 Ph p23, 95 1 P hp27, 54 4 P hp31, 675 Php36, 426 Php41, 890 Php48 ,174 Php55 ,400

Choco la te Cara!el Sauces Php8,441 Php9,707 Php11 ,163 Php12 ,837 Php14 ,763 Php16 ,977 Php19 ,524 Php22 ,453 Php25 ,821 Php29 ,694 Php34 ,148 Php39 ,270

S pec "al ty #e$ er ae M "&es P hp6 ,496 Ph p4, 866 Php 2, 981 P hp3, 19 2 P hp3, 40 1 P hp3, 80 2 P hp6, 168 P hp8, 145 P hp16, 035 P hp22, 852 P hp26 ,280 P hp30 ,222

Enery 'r"n(s Php1,260 Php1,449 Php1,666 P hp1,916 P hp2,204 P hp2,534 P hp2,914 P hp3,352 P hp3,854 P hp4,433 P hp5,097 P hp5,862

Concentrate) M"l ( Php1,308 Php2,509 Php3,022 Php3,646 Php4,405 Php5,465 Php6,804 Php8,499 Php10,651 Php13, 389 Php16,880 Php21,339

Paper Suppl "es Php38,550 Php35,560 Php32,335 Php34,387 Php38,534 Php43,556 Php51,379 Php64,325 Php92,833 Php133,361 Php151, 590 Php172,554

Mar(et"n Php250 Php288 Php325 Php363 Php413 Php463 Php525 Php600 Php675 Php775 Php875 Php988

Subtotal Direct Cost of Sales Php68,213 Php68,073 Php67,240 Php74,451 Php84,546 Php96,749 Php114,858 Php139,049 Php186,297 Php246,395 Php283,045 Php325,635

Table4 5ersonnel

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

eal Mape 0% Php2,500 P hp2,500 P hp2,500 P hp2,500 P hp2,500 P hp2,500 P hp2,500 P hp2,500 P hp2,500 P hp2,500 P hp2,500 P hp2,500S ales -'e l" $er y . Salar y/ 0% Php 1, 700 P hp1 ,700 P hp1, 700 P hp1, 70 0 Ph p1, 700 P hp 1, 700 P hp1 ,700 P hp1, 700 P hp1, 70 0 Ph p1, 700 P hp 1, 700 P hp1 ,700Sales-'el"$ery .Co!!"ss" on/ 0% Php170 Php192 Php216 Php240 Php268 Php300 Php336 Php379 Php429 Php493 Php565 Php649'el "$ery-arehouse Personnel 0% Php1,700 Php1,700 Php1,700 Php1,700 Php1,700 Php1,700 Php1,700 Php1,700 Php1,700 Php1,700 Php1,700 Php1,700)!"n"strat"on 0% Php1,560 Php1,560 Php1,560 Php1,560 Php1,560 Php1,560 Php1,560 Php1,560 Php1,560 Php1,560 Php1,560 Php1,560*otal People 4 4 4 4 4 4 4 4 4 4 4 4

Total Payroll Php7,630 Php7,652 Php7,676 Php7,700 Php7,728 Php7,760 Php7,796 Php7,839 Php7,889 Php7,953 Php8,025 Php8,109

#age 1!


23/26

$ppendi%

Table4 :eneral 9ssumptions

General Assumptions


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

Current nterest ate 800% 800% 800% 800% 800% 800% 800% 800% 800% 800% 800% 800%

onter! nterest ate 800% 800% 800% 800% 800% 800% 800% 800% 800% 800% 800% 800%*a& ate 3000% 2500% 2500% 2 500% 2 500% 2 500% 2 500% 2 500% 2 500% 2 500% 2 500% 2 500%

Other 0 0 0 0 0 0 0 0 0 0 0 0

Table4 5rofit and 0oss

Pro Forma Profit and Loss


Sales Php88,573 Php87,770 Php86,106 Php95,139 Php107,931 Php123,394 Php143,492 Php174,198 Php235,540 Php313,664 Php360,016 Php413,829

'"rec t Cos t o + Sales Php68 ,213 Php68 ,073 Php67 ,240 Php74 ,451 Php84 ,546 Php96 ,749 Php114,858 Php139,049 Php186,297 Php246,395 Php283,045 Php325,635

"))en o Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

*o ta l Cos t o + Sales Php68 ,213 Php68 ,073 Php67 ,240 Php74 ,451 Php84 ,546 Php96 ,749 Php114,858 Php139,049 Php186,297 Php246,395 Php283,045 Php325,635

ro ss Ma r "n P hp20 ,360 P hp 19, 697 P hp18, 866 P hp20 ,688 P hp23, 385 P hp26, 645 Ph p28, 63 4 P hp35, 14 9 P hp 49, 243 P hp6 7, 269 P hp7 6, 971 P hp88 ,194

ross Mar"n % 2299% 2244% 2191% 2174% 2167% 2159% 1996% 2018% 2091% 2145% 2138% 2131%

E&penses

Payroll Php7,630 Php7,652 Php7,676 Php7,700 Php7,728 Php7,760 Php7,796 Php7,839 Php7,889 Php7,953 Php8,025 Php8,109

ther Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

'eprec"at"on Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

ent Php2,758 Php2,758 Php2,758 Php2,758 Php2,758 Php2,758 Php2,758 Php2,758 Php2,758 Php2,758 Php2,758 Php2,758

:t "l" t"es an) Phone Php600 Php600 Php600 Php600 Php600 Php600 Php600 Php600 Php600 Php600 Php600 Php600

nsurance Php500 Php500 Php500 Php500 Php500 Php500 Php500 Php500 Php500 Php500 Php500 Php500

P ayr ol l # ur )en 15% P hp1 ,145 Ph p1, 148 P hp1, 151 P hp1 ,155 P hp1, 159 P hp1, 164 P hp1, 169 P hp1, 17 6 P hp1, 183 Ph p1, 193 Php 1, 204 P hp1 ,216ease) E;u"p!ent .'el"$ery


24/26

$ppendi%

*otal perat"n E&penses Php15,783 Php15,808 Php15,835 Php15,863 Php15,895 Php15,932 Php15,973 Php16,023 Php16,080 Php16,154 Php16,237 Php16,333

Pro+"t #e+ore nterest an) *a&es Php4,578 Php3,889 Php3,030 Php4,825 Php7,490 Php10,713 Php12,661 Php19,126 Php33,163 Php51,116 Php60,735 Php71,861

E#*' Php4,578 Php3,889 Php3,030 Php4,825 P hp7, 490 Php10,713 Php12,661 Php19,126 Php33,163 Php51,116 Php60,735 Php71,861

nterest E&pense Php620 Php607 Php593 Php580 Php567 Php553 Php540 Php527 Php513 Php500 Php487 Php473

*a&es nc ur re) P hp1 ,187 P hp821 P hp6 09 P hp1 ,061 P hp1, 731 P hp2, 540 P hp3, 030 P hp4, 65 0 Ph p8, 162 P hp1 2, 654 P hp1 5, 062 P hp17 ,847

ther nco!e

nterest nco!e Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

ther nco!e ccount >a!e Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

*otal ther nco!e Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

ther E&pense

ccount >a!e Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

ther E&pense ccount >a!e Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

*otal ther E&pense Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

>et ther nco!e Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

>et Pro+"t Php2,770 Php2,462 Php1,828 Php3,184 Php5, 192 Php7,620 Php9,090 Php13,950 Php24,487 Php37,962 Php45,186 Php53,541

Net Profit/Sales 313% 280% 212% 335% 481% 618% 634% 801% 1040% 1210% 1255% 1294%

Table4 /ash 2low

Pro Forma Cash Flow


Cash ece"$e)

Cash +ro! perat"ons

Cash Sal es Php88,573 Php87,770 Php86,106 Php95,139 Php107,931 Php123,394 Php143,492 Php174,198 Php235,540 Php313,664 Php360,016 Php413,829

Su?total Cash +ro! perat"ons Php88,573 Php87,770 Php86,106 Php95,139 Php107,931 Php123,394 Php143,492 Php174,198 Php235,540 Php313,664 Php360,016 Php413,829

))"t"onal Cash ece"$e)

>on perat"n .ther/ nco!e Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

Sales *a&, e ther "a?"l"t"es ."nterest+ree/ Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

>e onter! "a?"l"t"es Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

Sales o+ ther Current ssets Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

Sales o+ onter! ssets Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

>e n$est!ent ece"$e) Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

#age 21


25/26

$ppendi%

Su? to ta l Cash ece"$e) Php88 ,573 Php87 ,770 Php86 ,106 Php95 ,139 Php107,931 Php123 ,394 Php143,492 Php174 ,198 Php235,540 Php313 ,664 Php360,016 Php413 ,829

E&pen)"tures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

E&pen)"tures +ro! perat"ons

Cash Spen)"n Php7,630 Php7,652 P hp7,676 Php7,700 P hp7,728 P hp7,760 P hp7,796 P hp7,839 P hp7,889 P hp7,953 P hp8,025 P hp8,109

#"ll Pay!ents Php2,607 Php78,184 Php77,442 Php76,236 Php92,651 Php106,626 Php122,274 Php147,608 Php181,556 Php257,760 Php334,299 Php348,850

Su?total Spent on perat"ons Php10,237 Php85,836 Php85,118 Php83,936 Php100,379 Php114,386 Php130,070 Php155,447 Php189,445 Php265,713 Php342,324 Php356,959

))"t"onal Cash Spent

>on perat"n .ther/ E&pense Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0

Sales *a&,


26/26

$ppendi%

Current "a?"l"t"es

ccounts Paya? le Php0 Php75 ,600 Php74 ,919 Php73 ,163 Php89 ,114 Php102 ,578 Php117,390 Php141 ,641 Php173,052 Php246 ,632 Php322,728 Php335 ,549 Php385,728Current #orro"n Php95,000 Php93,000 Php91,000 Php89,000 Php87,000 Php85,000 Php83,000 Php81,000 Php79,000 Php77,000 Php75,000 Php73,000 Php71,000ther Current "a?"l "t" es Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0Su?total Current "a?"l"t"es Php95,000 Php168,600 Php165,919 Php162,163 Php176,114 Php187,578 Php200,390 Php222,641 Php252,052 Php323,632 Php397,728 Php408,549 Php456,728

onter! "a?"l"t"es Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0 Php0*otal "a?"l"t "es Php95,000 Php168,600 Php165,919 Php162,163 Php176,114 Php187,578 Php200,390 Php222,641 Php252,052 Php323,632 Php397,728 Php408,549 Php456,728

Pa") "n Cap "tal Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000 Php25 ,000eta"ne) Earn"ns .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/ .Php16,450/E ar n"n s Php 0 P hp2, 77 0 P hp5, 232 P hp7 ,060 P hp1 0, 244 Php 15, 436 P hp23, 056 P hp32, 146 P hp4 6, 096 Php 70, 583 Php 108, 54 5 Ph p153, 731 P hp207 ,271*o ta l Cap "tal Php8,550 Php11 ,320 Php13 ,782 Php15 ,610 Php18 ,794 Php23 ,986 Php31 ,606 Php40 ,696 Php54 ,646 Php79 ,133 Php117,095 Php162,281 Php215,821*otal "a?"l"t"es an) Cap"tal Php103,550 Php179,920 Php179,701 Php177,773 Php194,908 Php211,564 Php231,995 Php263,337 Php306,698 Php402,765 Php514,823 Php570,830 Php672,549

Net Worth Php8,550 Php11,320 Php13,7 82 Php15,610 Php18,794 Php23,986 P hp31,606 Php40, 696 Php54,646 Php79,133 Php117,095 Php162,281 Php215,821

#age 23

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Reacel Trading Feasibility Study

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