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Egger's Cofee Roasters

Business Plan

Invest $800,000 cash savings for capital equipment and "working capital.

Bu! apital %qupment &oasting 'achines# for $()0,000 during organi*inBu! +reen unroasted# oee Beans for cash on deliver! - $/pound afte

dditional variale cost per pound roasted for fuel, laor, packaging, tran

verage time from order to deliver! is 1 month

&ent, 2tilities, Insurance, Bookkeeping, etc 34ed costs# - $10,000/month

7ell roasted, packaged, and delivered eans to retailer for $/pound

verage time from deliver! until when retailer pa!s is months 9!pical "

Sounds like a no-lose proposition!

Scenario 1- Assume steady orders & sales of $25,000 pounds per month

Prot & Loss (P&L) Statement [Simplied]

2nit 7ales in pounds#

7ales &evenue

+eneral ; dministrative +;# %4pense

!ears straight line on $()0,000 roasting equipment#

:et Pro3t calculated monthl!#

ggregate Pro3t

:ote that the usiness is pro3tale from the 3rst month

5irst !ear?s pro3ts are $00,000 - an outstanding return on m! $800,000 i

Statement o Cash Flos [Simplied]

2nit 7ales in pounds#

ash &eceived

apital Purchases

+eneral ; dministrative 5i4ed# %4pense

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(0,000 pounds per month for months )-

100,000 pounds per month for months E-F

00,000 pounds per month for months 10-1

and so onG

Prot & Loss (P&L) Statement [Simplied]

2nit 7ales in pounds#

7ales &evenue -- matched to when order con3rmed

+eneral ; dministrative %4pense

!ears Aat line on $()0,000 roasting equipment

:et Pro3t calculated monthl!#

ggregate Pro3t

2nder this scenario, total orders equal $.E( million

Statement o Cash Flos [Simplied]

2nit 7ales in pounds#

ash &eceived

apital Purchases

and total pro3ts equal $1.F( million. hat a "reat #usiness, ri"ht

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+eneral ; dministrative 5i4ed# %4pense

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" In an emergenc!, I can orrow up to another $800,000 from friends and famil!

period for usinessr receiving ulk order for roast eans "variale cost" as depends on numer of

portation, etc to deliver eans to retailer is $/pound

- $10,000 per !ear"5i4ed ost" alled a "34ed cost" ecause it doesn6t depend

:et 0" Pa!ment 9erms#

Scenario 1- Assume steady unit sales of 25,0

3rst order placed in J

Scenario 1 - %rot and 'oss Statement - (alculate

Krgani*ing Period Januar! 5eruar! 'arch

(,000 (,000 (,000

0 $1(0,000 $1(0,000 $1(0,000

0 $10,000# $10,000# $10,000#

0 $100,000# $100,000# $100,000#

0 $1(,000# $1(,000# $1(,000#

0 $(,000 $(,000 $(,000

0 $(,000 $(0,000 $E(,000

vestment@

Scenario 1 - (ash *lo Statement - (alculated )oKrgani*ing Period Januar! 5eruar! 'arch

(,000 (,000 (,000

$800,000

$()0,000#

$10,000# $10,000# $10,000#

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$100,000# $100,000# $100,000#

$0,000 $110,000.00# $110,000.00# $110,000.00#

$()0,000# $(0,000.00# $E0,000.00# $8E0,000.00#

+)arch - %oint of )a

$0,000 $1(0,000.00 $)0,000.00 $E0,000.00#

%ut it on my credit ca

$(,000 of m! original $800,000 still in the ank.

d.

Scenario 2 - Assume Rapid Increases in Sales

Scenario 2 - %rot and 'oss Statement - (alculateKrgani*ing Period Januar! 5eruar! 'arch

(,000 (,000 (,000

0 $1(0,000 $1(0,000 $1(0,000

0 $10,000# $10,000# $10,000#

0 $100,000# $100,000# $100,000#

0 $1(,000# $1(,000# $1(,000#

0 $(,000 $(,000 $(,000

0 $(,000 $(0,000 $E(,000

Scenario 2 - (ash *lo Statement - (alculated )oKrgani*ing Period Januar! 5eruar! 'arch

(,000 (,000 (,000

$800,000

$()0,000#

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$10,000# $10,000# $10,000#

$100,000# $100,000# $100,000#

$0,000 $110,000.00# $110,000.00# $110,000.00#

$()0,000#

$0,000 $1(0,000.00 $)0,000.00 $E0,000.00#

Start to /orro from

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ounds roasted#

n amount of eans roasted#

0 pounds per month

nuar!, 3rst product delivered in 5eruar!, 3rst cash pa!ment received

)onthly

pril 'a! June Jul!

(,000 (,000 (,000 (,000

$1(0,000 $1(0,000 $1(0,000 $1(0,000

$10,000# $10,000# $10,000# $10,000#

$100,000# $100,000# $100,000# $100,000#

$1(,000# $1(,000# $1(,000# $1(,000#

$(,000 $(,000 $(,000 $(,000

$100,000 $1(,000 $1(0,000 $1E(,000

thlypril 'a! June Jul!

(,000 (,000 (,000 (,000

$1(0,000 $1(0,000 $1(0,000 $1(0,000

$10,000# $10,000# $10,000# $10,000#

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$100,000# $100,000# $100,000# $100,000#

+April - %oint of (ash *lo /reakeen.

$)0,000.00 $)0,000.00 $)0,000.00 $)0,000.00

$8>0,000.00# $EF0,000.00# $E(0,000.00# $E10,000.00#

imum Total (ash radon.

$>0,000.00# $10,000.00 $(0,000.00 $F0,000.00

rd!

)onthlypril 'a! June Jul!

(0,000 (0,000 (0,000 100,000

$>00,000 $>00,000 $>00,000 $00,000

$10,000# $10,000# $10,000# $10,000#

$00,000# $00,000# $00,000# $)00,000#

$1(,000# $1(,000# $1(,000# $1(,000#

$E(,000 $E(,000 $E(,000 $1E(,000

$1(0,000 $(,000 $>00,000 $)E(,000

thlypril 'a! June Jul!

(0,000 (0,000 (0,000 100,000

$1(0,000 $1(0,000 $1(0,000 $>00,000

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$10,000# $10,000# $10,000# $10,000#

$00,000# $00,000# $00,000# $)00,000#

$0,000.00# $0,000.00# $0,000.00# $110,000.00#

$1>0,000.00# $1F0,000.00# $(0,000.00# $>0,000.00#

mer"ency sources - friends & family

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in pril

ugust 7eptemer Kctoer

(,000 (,000 (,000

$1(0,000 $1(0,000 $1(0,000

$10,000# $10,000# $10,000#

$100,000# $100,000# $100,000#

$1(,000# $1(,000# $1(,000#

$(,000 $(,000 $(,000

$00,000 $(,000 $(0,000

ugust 7eptemer Kctoer

(,000 (,000 (,000

$1(0,000 $1(0,000 $1(0,000

$10,000# $10,000# $10,000#

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$100,000# $100,000# $100,000#

$)0,000.00 $)0,000.00 $)0,000.00

$E0,000.00# $>0,000.00# $(F0,000.00#

$1>0,000.00 $1E0,000.00 $10,000.00

ugust 7eptemer Kctoer

100,000 100,000 00,000

$00,000 $00,000 $1,00,000

$10,000# $10,000# $10,000#

$)00,000# $)00,000# $800,000#

$1(,000# $1(,000# $1(,000#

$1E(,000 $1E(,000 $>E(,000

$(0,000 $8(,000 $1,00,000

ugust 7eptemer Kctoer

100,000 100,000 00,000

$>00,000 $>00,000 $00,000

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$10,000# $10,000# $10,000#

$)00,000# $)00,000# $800,000#

$110,000.00# $110,000.00# $10,000.00#

$)E0,000.00# $(80,000.00# $EF0,000.00#

start to panic ehaust reseres

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:ovemer =ecemer

(,000 (,000

$1(0,000 $1(0,000

$10,000# $10,000#

$100,000# $100,000#

$1(,000# $1(,000#

$(,000 $(,000

$E(,000 !"##$###

:ovemer =ecemer

(,000 (,000

$1(0,000 $1(0,000

$10,000# $10,000#

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$100,000# $100,000#

$)0,000.00 $)0,000.00

$((0,000.00# $(10,000.00#

$(0,000.00 $F0,000.00

:ovemer =ecemer

00,000 00,000

$1,00,000 $1,00,000

$10,000# $10,000#

$800,000# $800,000#

$1(,000# $1(,000#

$>E(,000 $>E(,000

$1,(E(,000 !%$#$###

:ovemer =ecemer

00,000 $00,000

$00,000 $00,000

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$10,000# $10,000#

$800,000# $800,000#

$10,000.00# $10,000.00#

$1,000,000.00# $1,10,000.00#

una#le to pay for #eans deliered - "o #ankrupt!

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ear

Januar! 5eruar! 'arch

$1(0,000 $1(0,000 $1(0,000

$10,000# $10,000# $10,000#

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$100,000# $100,000# $100,000#

$)0,000.00 $)0,000.00 $)0,000.00

$)E0,000.00# $)>0,000.00# $>F0,000.00#

$>>0,000.00 $>E0,000.00 $)10,000.00

ear

Januar! 5eruar! 'arch

$)00,000 $)00,000 $)00,000

$1,00,000 $1,00,000 $1,00,000

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$10,000# $10,000# $10,000#

$1,00,000# $1,00,000# $1,00,000#

$)10,000.00# $)10,000.00# $)10,000.00#

$1,0,000.00# $,0>0,000.00# $,))0,000.00#

oes it "et #etter, eer

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pril 'a! June

$1(0,000 $1(0,000 $1(0,000

$10,000# $10,000# $10,000#

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$100,000# $100,000# $100,000#

$)0,000.00 $)0,000.00 $)0,000.00

$>(0,000.00# $>10,000.00# $E0,000.00#

$)(0,000.00 $)F0,000.00 $(>0,000.00

pril 'a! June

800,000 800,000 800,000

$,)00,000 $,)00,000 $,)00,000

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$10,000# $10,000# $10,000#

$>,00,000# $>,00,000# $>,00,000#

$810,000.00# $810,000.00# $810,000.00#

$>,(0,000.00# $),00,000.00# $),8E0,000.00#

noonly if

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Jul! ugust 7eptemer Kctoer

$1(0,000 $1(0,000 $1(0,000 $1(0,000

$10,000# $10,000# $10,000# $10,000#

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$100,000# $100,000# $100,000# $100,000#

$)0,000.00 $)0,000.00 $)0,000.00 $)0,000.00

$>0,000.00# $1F0,000.00# $1(0,000.00# $110,000.00#

$(E0,000.00 $10,000.00 $(0,000.00 $F0,000.00

Jul! ugust 7eptemer Kctoer

800,000 800,000 800,000 800,000

$),800,000 $),800,000 $),800,000 $),800,000

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$10,000# $10,000# $10,000# $10,000#

$>,00,000# $>,00,000# $>,00,000# $>,00,000#

$1,(F0,000.00 $1,(F0,000.00 $1,(F0,000.00 $1,(F0,000.00

$>,80,000.00# $1,F0,000.00# $100,000.00# $1,)F0,000.00

sales leel o3

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:ovemer =ecemer

$1(0,000 $1(0,000

$10,000# $10,000#

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$100,000# $100,000#

$)0,000.00 $)0,000.00

$E0,000.00# $>0,000.00#

$E>0,000.00 $EE0,000.00

+4eturn of ori"inal (apital inested - anuary 6ear

:ovemer =ecemer

800,000 800,000

$),800,000 $),800,000

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$10,000# $10,000#

$>,00,000# $>,00,000#

$1,(F0,000.00 $1,(F0,000.00

$>,080,000.00 $),E0,000.00

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.

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