konstantarakis-tsunamibodyworks-09-13-10

Business Plan

Contact: Voula KonstantarakisPhone: (702) 596-3333

E-mail: [email protected]

_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission

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Table of Contents

Executive Summary............................................................................................4Use of Funds......................................................................................................5Company Ownership..........................................................................................5Company Location..............................................................................................5Mission...............................................................................................................5

Services................................................................................................................6Product Description............................................................................................6

Market Analysis Summary..................................................................................8Market Segmentation.........................................................................................9Market Needs...................................................................................................10Industry Analysis..............................................................................................11Competitive Comparison..................................................................................11

Strategy and Implementation Summary..........................................................13Competitive Edge.............................................................................................13Marketing Strategy...........................................................................................13

Management Summary.....................................................................................15

Financial Indicators...........................................................................................16

Appendix............................................................................................................26


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Executive SummaryTsunami Body Works, LLC (also referred to as “the Company”) is a start-up business headquartered in Las Vegas, Nevada that is scheduled to begin operations in October 2010. The Company will be a unique online retailer offering a wide selection of high-quality, European-formula body care products designed to help women feel beautiful, bolder, and renewed. The Company will utilize state-of-the-art technology to make superior products that feature all-natural ingredients. With a focus on excellent customer service and affordable, high-quality products, Tsunami Body Works intends to achieve a loyal customer base and expand its product line.

Beauty products make up a large segment of the American consumer economy. Within that large grouping, natural cosmetic products have become some of the highest sellers. Tsunami Body Works will provide the highest quality natural cosmetic products, offering unique formulations that have a large and growing need. The Company will be headquartered in Las Vegas, Nevada, one of the world’s premier tourist destinations, and will conduct the bulk of its business via the Internet. Buying products over the Internet has become the norm in the past decade, with any type of product available and usually for a reduced price. Tsunami Body Works will be able to offer customers across the country the highest quality beauty products without having to cater to a specific area of operation.

In order to take advantage of the high-end salons and spas that accompany some of the world’s most luxurious hotels, Tsunami Body Works will offer its line of beauty products to spas and salons in the Las Vegas area. By catering both directly to consumers and to beauty shops, Tsunami Body Works will be able to establish and build a strong and sustainable brand image. The Company will cater directly to women who earn mid-level salaries and are interested in salon level products that can be used in the privacy of their own homes.

Tsunami Body Works intends to promote its line of body and skin care products to retail salon environments, as well as to consumers, by launching a creative promotional campaign intended to saturate the market with brand awareness. Specific advertising channels will include flyer distribution, use of a website, Internet marketing, networking, and television commercials. In addition, the Company expects growth as a result of positive word of mouth referrals from customers who experience its outstanding European products and competitive prices. Through these proven marketing efforts, Tsunami Body Works will position itself as a leading beauty products supplier in the online marketplace.

Aleksandar Maric and Shannon Cobb will own and operate the Company. Both owners have extensive experience in the beauty and skin care industry, ranging from providing spa services on major cruise lines to serving as a hair stylist for 25 years. For further biographical information on each member of the management team, please refer to the Management Summary.

To achieve the Company’s objectives, Tsunami Body Works, LLC is seeking $150,000 in total funding through bank or Small Business Administration (SBA)-backed lending. The bank or SBA-backed loan will be paid back from the cash flow of the business within seven years, collateralized by the assets of the Company, and backed by the personal integrity, experience, and a contractual guarantee from the owners.


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Use of FundsThe table below outlines the sources and uses of funding:

Loan $150,000

Ow ner Investment $0

Investor $0

Total Sources $150,000

Start-up Expenses

Legal $20,000

Stationery $6,000

Brochures $1,000

Consultants $5,000

Insurance $3,000

Rent $975

R & D $2,000

Other $2,000

Total Start-up Expenses $39,975

Start-up Assets

Working Capital $84,025

Inventory $20,000

Equipment $6,000

Property $0

Other Long-term Assets $0

Total Start-up Assets $110,025

Total Uses $150,000

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SOURCES OF FUNDS

USES OF FUNDS

Company OwnershipTsunami Body Works, LLC will be a Limited Liability Company registered in the state of Nevada.

The Company will be jointly owned by Shannon Cobb (50%) and Aleksandar Maric (50%).

Company LocationTsunami Body Works, LLC will be located at the following address:

8663 W. Sahara AvenueLas Vegas, Nevada 98117

MissionThe Company’s mission statement is as follows:

“At Tsunami Body Works, we are dedicated to helping our clients maximize their individual beauty. By providing superior products sourced from nature’s finest ingredients, we offer a variety of treatments designed to enhance each client’s unique features while ensuring that she has a relaxing and memorable experience.”


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ServicesTsunami Body Works will be an online retailer offering various body care products for women. The Company will combine traditional European beauty formulas with modern technology to create high-quality products made from all natural ingredients. The Company will offer three unique product lines; all of which feature formulations that are designed to nourish and protect the skin, making all women look and feel younger, bolder, and renewed. Tsunami Body Works’ products are as follows:

Tsunami Hot and Cold: Cellulite & Weight Loss

o Tsunami Cellulite Creamo Tsunami Cold Gel

Hand and Foot Careo Tsunami Foot and Nail Cream

Lavendina: Body Care

o Lavendina Body Creamo Lavendina Lotiono Lavendina Shower Gel with Scrub

Hand and Foot Careo Lavendina Hand Creamo Lavendina Foot and Nail Cream

Fabulous Vegas Baby: Body Care

o Vegas Baby Body Creamo Vegas Baby Lotiono Vegas Baby Shower Gel with Scrub

Hand and Foot Careo Vegas Baby Hand Cream

Product DescriptionTsunami Body Works is dedicated to improving the quality and accessibility of body care products for women across the globe. The Company is committed to helping women uncover their natural beauty by providing them with superior products made with the finest, all natural ingredients. Tsunami Body Works’ three product lines are further described below:

Tsunami Hot and Cold:Tsunami Hot and Cold has been scientifically formulated to reduce the appearance of cellulite – a serious problem for most women. Cellulite affects women of all ages, shapes, and sizes and attacks areas such as the buttocks, thighs, and arms. To help women feel more confident about their bodies, the Company has developed Tsunami Hot and Cold, a scientifically formulated line designed to reduce the appearance of cellulite. With continued use, products define, tone, and hydrate the body, improving the appearance of unsightly dimpled skin.


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Lavendina:For many centuries, lavender has been used to soothe and calm the mind and promote restful sleep. The Lavendina product line will feature the essence of lavender to help women experience serenity and tranquility. By combining natural ingredients and essential oils, skin will be left clean, soft, and well-hydrated after using Lavendina products.

Fabulous Vegas Baby:The Fabulous Vegas Baby line is designed to quench and hydrate parched, damaged skin. Products will be made from finest emollient ingredients such as avocado oil, Shea butter, and grapeseed oil. Avocado oil is rich in vitamins A, C, and E, as well as protein and amino acids, and softens and conditions dry, flaky skin, while Shea Butter is known to reduce wrinkles and protect skin against environmental aging. Additionally, grape seed oil, rich in essential fatty acids, helps protect and soothe dry, overworked skin.


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Market Analysis SummaryTsunami Body Works’ location in Las Vegas, Nevada (Clark County) places it in one of the world’s most popular tourist destinations. The Company’s chosen location will maximize the business’s ability to tap into a steady stream of consumer traffic. The following table provides the most current U.S. Census data with regard to the population growth of Clark County.

Clark County, Nevada – Population & Growth1

Population, 2009 estimate 1,902,834Population, percent change, April 1, 2000 to July 1, 2009 38.3%Population, 2000 1,375,738

Tsunami Body Works will primarily provide its products through Internet based sales. The Company will also target high-end beauty salons in the city of Las Vegas as a way to build a brand image and grow its market share. The following table provides pertinent figures for the populations of Las Vegas, the state of Nevada, and the United States as a whole. This data is provided by ESRI, a market research firm.2

Full Demographic Report Las Vegas – Nevada – United States – Side-by-side analysis

Las Vegas NevadaUnited States

2010 Total Population 580,369 2,748,294 311,212,8632015 Total Population 613,886 2,999,160 323,209,391 2010 - 2015 Annual Rate 1.13% 1.76% 0.76%

2010 Households 210,301 1,025,511 116,761,140 2010 Average Household Size 2.72 2.65 2.592010 Families 136,623 672,641 78,333,359 2010 Average Family Size 3.27 3.17 3.16

Median Household Income 2000 $44,181 $44,614 $42,164 2010 $54,367 $57,546 $54,442 2015 $62,871 $65,787 $61,189

Per Capita Income 2000 $22,060 $132,514 $21,587 2010 $25,773 $150,341 $26,739 2015 $29,836 $161,659 $30,241

Median Age 2000 34.5 35.0 35.3 2010 35.8 37.0 37.0 2015 35.7 37.2 37.3

2010 Households by IncomeHousehold Income Base 210,301 1,025,496 116,759,989 < $15,000 10.1% 8.8% 11.4% $15,000 - $24,999 9.1% 8.1% 9.4% $25,000 - $34,999 10.6% 9.7% 9.7%

1 U.S. Census Bureau. Obtained at: http://www.census.gov/ September 20102 Business Analyst Online. Obtained at: http://bao.esri.com/esribis. September 2010_______________________________________________________________________________

CONFIDENTIAL – Do Not Distribute Without Permission8

$35,000 - $49,999 15.8% 15.9% 15.0% $50,000 - $74,999 21.9% 23.3% 21.6% $75,000 - $99,999 14.4% 15.3% 14.1% $100,000 - $149,999 12.2% 12.8% 11.9% $150,000 - $199,999 2.5% 2.8% 3.4% $200,000 + 3.4% 3.2% 3.5%Average Household Income $69,210 $71,330 $70,173

2010 Population by AgeTotal 580,372 2,748,294 311,212,863 0 - 4 7.9% 7.3% 6.8% 5 - 9 7.2% 6.8% 6.7% 10 - 14 6.6% 6.4% 6.5% 15 - 19 6.6% 6.5% 7.0% 20 - 24 6.4% 6.4% 6.9% 25 - 34 14.1% 13.9% 13.3% 35 - 44 14.5% 13.9% 13.4% 45 - 54 13.7% 14.4% 14.6% 55 - 64 10.4% 11.8% 11.7% 65 - 74 7.0% 7.3% 6.8% 75 - 84 4.2% 4.0% 4.3% 85+ 1.3% 1.4% 2.0% 18+ 74.3% 75.6% 75.8%

2010 Population by Sex Males 50.4% 50.3% 49.2% Females 49.6% 49.7% 50.8%

2010 Population 25+ by Educational AttainmentTotal 378,856 1,831,539 205,370,648 Less than 9th Grade 8.9% 7.1% 6.3% 9th - 12th Grade, No Diploma 9.9% 9.1% 8.5% High School Graduate 29.4% 29.8% 29.6% Some College, No Degree 22.7% 23.8% 19.9% Associate Degree 7.1% 7.7% 7.7% Bachelor's Degree 14.2% 14.8% 17.7% Master's/Prof/Doctorate Degree 7.7% 7.6% 10.4%

Market SegmentationCosmetics and other beauty products are a large and growing industry, providing salon- and sp-a level products for home use. Tsunami Body Works is interested in catering to a large segment of the population. The Company will focus on tailoring its products to following types of consumers:

Mid level annual income Between the ages of 21-50 College educated Female

Tsunami Body Works will address a large market with a significant portion of its budget already allocated to cosmetics and other beauty products. Tsunami Body Works’ line of products will be derived from natural ingredients from the highest quality sources. The Company will place strong emphasis on this aspect of its product line. A large number of consumers are becoming aware of the _______________________________________________________________________________


need to purchase products that are created with the overall health of the planet in mind. The benefits of natural and earth-healthy products are two-fold. Natural products are better for the welfare of the planet, and are of higher-quality than their synthetic relatives.

Tsunami Body Works’ line of beauty products and cosmetics will provide women with the freshest and best natural beauty products, allowing the Company’s target customers to enjoy healthy skin without damaging their skin or the planet as a whole.

Tsunami Body Works will also target its line of products to spas and salons in the Las Vegas area. Las Vegas, Nevada is home to some of the world’s most luxurious hotels and spas. By pursuing local spas with its products, the Company will tap into one of the largest and most stable consumer spending streams in the world. Having products available in Las Vegas spas will also help the Company build and sustain its brand image. Market NeedsAccording to an article provided by the online service Market Research World, demand for cosmetics has been stagnating in developed markets such as the United States during the last five years. In an effort to improve sales, manufacturers have capitalized on the growing consumer interest in health and wellness by investing in cosmetic products containing natural ingredients.3 By providing the finest quality of naturally-derived beauty products, Tsunami Body Works will help meet the growing need for natural cosmetic products that is sweeping the cosmetic and beauty product industry.

The Company will meet and address consumer needs on a second level as well, beyond just satisfying the needs of customers for natural based beauty products. Women of all kinds have a need for salon and spa quality beauty products outside of the salon and spa. Tsunami Body Works will provide the types of products usually found only in high-end salons and spas for women around the country to take home and use in their own bathrooms and houses. By catering its product line to both women and salons, Tsunami Body Works will cover the needs of customers both in the salon and at home. The following chart shows the age-by-sex breakdown of the population of the United States.

U.S. Population Age-by-Sex breakdown

3 Market Research World. “Natural Ingredients Drive Growth in Cosmetics and Toiletries,” Obtained at: http://tinyurl.com/2uj4fgo September 2010_______________________________________________________________________________


Tsunami Body Works will sell its product line via the Internet, allowing the Company to have unlimited access to the entire population of the United States. The Company will primarily target women, and, as the above chart shows women are a large percentage of the population.

Industry AnalysisTsunami Body Works will operate within the Drugs, Proprietaries, and Sundries industry (Standard Industrial Classification 5122). The table below shows Dun & Bradstreet data regarding the performance of the businesses in this industry on a national, state, and local level. The Company will also operate in the industry subsets of Cosmetics, Perfumes, and Hair Products and Cosmetics. Industry subset data is measured on a national scale only.4

Industry: Drugs, Proprietaries, and Sundries (5122)Establishments primarily engaged in the wholesale distribution of prescription drugs, proprietary drugs, druggists' sundries, and toiletries.Market Size Statistics Estimated number of U.S. establishments: 11,338Number of people employed in this industry: 141,603Total annual sales in this industry: $317.3 billionAverage number of employees per establishment: 13Average sales per establishment (unknown values are excluded from the average): $34.1 millionMarket Analysis by State and Metropolitan Area

State/Metro No Bus. % TotalTotal

EmployeesTotalSales

AverageEmployees

AverageSales

Nevada 119 1 1,003 $122.8 million 9 $1.3 millionLas Vegas, NV 82 0.7 680 $79.6 million 9 $1.2 million

Market Analysis by Specialty (8-digit SIC Code)

SIC Code SIC Description No Bus. % TotalTotal

EmployeesTotalSales

AverageEmployees

AverageSales

5122-0100 Cosmetics, perfumes, and hair products 1,346 11.9 7,805 $1.6 billion 6 $1.3 M5122-0101 Cosmetics 1,923 17 15,355 $1.8 billion 8 $1 M

Competitive ComparisonOnline shopping is quickly becoming one of the most common purchasing methods in the United States. Many high-end retailers carry their full product lists online, often times offering deals on shipping and handling when items are purchased through their Internet retail outlets. Tsunami Body Works, with its intention of its business over the Internet, will face competition from a variety of types of businesses. These businesses include large retail outlets with well established retail locations nationwide, wholesalers, and individual cosmetics companies that sell their products direct to consumers via their websites. Tsunami Body Works is aware of the need to evaluate its competitors. A detailed analysis of the competitive landscape will prepare the Company for any potential market variables that may arise. A description of Tsunami Body Works’ competition is as follows:

Sephorawww.sephora.com

Overview: Sephora is a chain of cosmetics stores founded in 1969 in France. The Sephora chain includes more than 750 stores in 21 countries.

4 Dun & Bradstreet, Industry Data for SIC 5122-0000; obtained September 2010 _______________________________________________________________________________


Advantages: Sephora offers a wide range of cosmetic products in a selection of categories, including makeup, skincare, fragrance, bath and body, hair, tools, men, and natural and organic. Sephora also sells all of its products online.

Disadvantages: Sephora offers a selection of natural and organic products, but does not specialize in that type of product.

The Body Shopwww.thebodyshop-usa.com

Overview: The Body Shop is a cosmetics company founded in 1976 in England. There are currently 2,400 in 61 countries, making The Body Shop the second largest cosmetic franchise in the world.

Advantages: The Body Shop specializes in natural cosmetics products and is active in many social services and charity programs around the world.

Disadvantages: The Body Shop sells products only in its own retail stores, and does not sell products to salons and spas.

Saffron Rougewww.saffronrouge.com

Overview: Saffron Rouge is the first beauty retailer in the world to focus exclusively on organics. Offering over 1,000 of the world’s finest organic beauty and aromatherapy products, Saffron Rouge is North America’s number-one online retailer of organic skin care and cosmetic products.

Advantages: Saffron Rouge offers only products that have at least one of the organic body care certifications, or provide evidence that certified organic content is being used as much as possible. Saffron Rouge offers almost 30 organic cosmetic brands.

Disadvantages: Saffron Rouge is only an online retail outlet, selling products provided by other companies and nothing of its own design.

For more information regarding the Company’s competitive advantages, see Competitive Edge.


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Strategy and Implementation Summary“The European Secret to Beauty and Wellness™”Tsunami Body Works will develop a brand that encompasses quality and availability in its provision of body care products to the Las Vegas marketplace. To increase brand awareness, the Company has developed a memorable brand logo, as well as multiple product logos, that it will use throughout its promotional strategy and within its various marketing materials.

With its guiding principles established, Tsunami Body Works will send a clear message about the key benefits of its solutions-based products, indicating its functionality beyond skin care and more towards overall health and vitality of the body. The Company will illustrate this message with a diverse marketing campaign involving a number of modern and conventional techniques to bolster awareness at the street level as well as online. This approach intends to help Tsunami Body Works achieve the following objectives:

Establish a strong brand name and reputation Fuel growth through positive word of mouth referrals Earn enough revenue to expand operations

To reach these operational benchmarks, the Company will build on its strengths and advantages as outlined in the following section.

Competitive EdgeTsunami Body Works intends to capitalize on its core strengths in order to establish itself as a leading supplier of spa and beauty products to the Las Vegas marketplace. These competitive advantages are outlined in greater detail below.

Unmatched customer service All-natural European products Solutions-based to help firm and smooth the skin Competitive pricing structure Ownership experienced in salon atmospheres Consistency in product availability Aggressive marketing campaign

Marketing StrategyThe Company will generate interest in its beauty products by utilizing a variety of advertising channels to increase Tsunami Body Works’ exposure among its target demographic. Specific channels will include the following:

Television advertising: The Company recognizes that television advertising is still an effective means of reaching a large target population. For this reason the Company will create commercials to be aired on home shopping networks such as QVC.

Flyers: Tsunami Body Works will create colorful and informative flyers that will display the Company’s range of products. These will be distributed within a considerable radius of the Company’s proximity to businesses and residences, allowing for increased brand exposure.


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Website: The Company will capitalize on its existing website (www.tsunamibodyworks.com) to generate interest in its beauty products. This website will be search engine optimized and contain a number of features including: product information, testimonials, photo gallery, company profile, location, and list of services.

**suggestion** Internet advertising: Tsunami Body Works will benefit from using a combination of Internet advertising including Cost-per-Click, Google AdWords, Tags, and banner ads. This effort will help generate interest in the Company from the online community and general public.

**suggestion** Networking: As with any relationship-based business, the Company will benefit from participating in a number of networking opportunities that have the potential to yield new business contacts as well as nourish existing ones. Tsunami Body Works will attend a variety of events that draw substantial numbers of prospective customers. Events may include seminars, mixers, and luncheons which provide opportunities to speak to and associate with larger audiences. This will create a positive business environment that encourages discourse among the Company and its target market.

**suggestion** Print media: Tsunami Body Works will place ads in national print publications. These advertisements will include the Company’s location and will also offer limited time discounts or other promotions.

**suggestion** Word of mouth: Word travels quickly between family members, peers, and colleagues who are pleased with their experiences with a particular business. The Company will rely on this effective and inexpensive resource to generate interest in its beauty products. According to research conducted by Forrester, there were “256 billion influence impressions occurring per year [in 2009]. Influence posts were numbered at 1.64 billion per year, which accounted for generating another 250 billion impressions. In other words, people are making 500 billion influence impressions on one another about products and services every year.”5

5 Dybwad, Barb. Mashable: the Social Media Guide. “The State of Online Word of Mouth Marketing [Stats].” Obtained at: http://mashable.com/2010/04/25/word-of-mouth-marketing-stats/_______________________________________________________________________________


Management SummaryShannon Cobb, OwnerMs. Cobb is an entrepreneur at heart, and has devoted her entire professional career as a stylist. For the last 25 years, she has owned and operated her salon Hair at the Lakes, performing hairdressing for a devoted, long-term clientele.

Aleksandar Maric, OwnerMr. Maric is a Serbian immigrant who has spent only the last five years in the United States. His professional expertise includes providing concierge-level service among cruise lines, serving as a massage therapist for domestic and international clients.


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Financial IndicatorsThe following table and graph illustrate the financial goals of the Company during the next three years:

Year 1 Year 2 Year 3

Revenue $437,427 $656,141 $885,790

Gross Margin $368,279 $552,418 $745,764

Operating Expenses $429,293 $498,010 $542,549

EBITDA* ($60,614) $54,808 $203,615

Net Profit ($70,969) $45,698 $195,838

Profitability Ratios

Gross Margin/Revenue 84% 84% 84%

EBITDA/Revenue -14% 8% 23%

Net Profit/Revenue -16% 7% 22%

Debt Ratios

Debt Ratio (Total Debt/Total Assets) 352.11% 188.71% 48.73%

Interest Coverage Ratio -6.09 6.29 27.60

Debt Service Coverage Ratio -2.23 2.02 7.49

Net Cash Flow ($65,619) $29,941 $181,565

Cash Balance - Ending $18,406 $48,346 $229,911

*Earnings before interest, taxes, depreciation & amortization

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($200,000)

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$200,000

$400,000

$600,000

$800,000

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Revenue

Direct Costs

Operating Expenses

Net Profit


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The following is a three-year revenue forecast. Direct costs include all costs which can be directly tied to revenue and include “cost of goods.”


Revenue

Tsunami Hot 4 oz. $51,300 $76,950 $103,883

Tsunami Hot 6 oz. $52,920 $79,380 $107,163

Tsunami Cool 4 oz. $32,250 $48,375 $65,306

Tsunami Cool 6 oz. $29,925 $44,888 $60,598

Vegas Baby Body Cream 4 oz. $15,540 $23,310 $31,469


Vegas Baby Body Lotion 4 oz. $10,194 $15,291 $20,643


Vegas Baby Show er Gel & Scrub 4 oz. $11,394 $17,091 $23,073


Vegas Baby Hand Cream 2 oz. $35,970 $53,955 $72,839

Vegas Baby Balm 4 oz. $14,394 $21,591 $29,148

Lavendina Body Cream 4 oz. $18,720 $28,080 $37,908


Lavendina Body Lotion 4 oz. $13,194 $19,791 $26,718


Lavendina Show er Gel & Scrub 4 oz. $13,380 $20,070 $27,095


Lavendina Hand Cream 2 oz. $44,970 $67,455 $91,064

Lavendina Balm 4 oz. $17,100 $25,650 $34,628

Total Revenue $437,427 $656,141 $885,790

Direct Cost of Revenue

Tsunami Hot 4 oz. $7,776 $11,664 $15,746

Tsunami Hot 6 oz. $8,019 $12,029 $16,238

Tsunami Cool 4 oz. $4,830 $7,245 $9,781

Tsunami Cool 6 oz. $4,484 $6,725 $9,079







Vegas Baby Hand Cream 2 oz. $6,810 $10,215 $13,790

Vegas Baby Balm 4 oz. $2,580 $3,870 $5,225







Lavendina Hand Cream 2 oz. $6,810 $10,215 $13,790

Lavendina Balm 4 oz. $2,580 $3,870 $5,225

Subtotal Cost of Revenue $69,149 $103,723 $140,026

Other Direct Costs $0 $0 $0

Total Direct Costs $69,149 $103,723 $140,026

Gross Margin $368,279 $552,418 $745,764Gross Margin % 84% 84% 84%

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The table below shows the units and pricing assumptions underlying the revenue forecast:


Units

Tsunami Hot 4 oz. 1,800 2,700 3,645

Tsunami Hot 6 oz. 1,350 2,025 2,734

Tsunami Cool 4 oz. 1,500 2,250 3,038

Tsunami Cool 6 oz. 1,050 1,575 2,126

Vegas Baby Body Cream 4 oz. 600 900 1,215

Vegas Baby Body Cream 6 oz. 450 675 911

Vegas Baby Body Lotion 4 oz. 600 900 1,215

Vegas Baby Body Lotion 6 oz. 450 675 911

Vegas Baby Show er Gel & Scrub 4 oz. 600 900 1,215

Vegas Baby Show er Gel & Scrub 6 oz. 450 675 911

Vegas Baby Hand Cream 2 oz. 3,000 4,500 6,075

Vegas Baby Balm 4 oz. 600 900 1,215

Lavendina Body Cream 4 oz. 600 900 1,215

Lavendina Body Cream 6 oz. 450 675 911

Lavendina Body Lotion 4 oz. 600 900 1,215

Lavendina Body Lotion 6 oz. 450 675 911

Lavendina Show er Gel & Scrub 4 oz. 600 900 1,215

Lavendina Show er Gel & Scrub 6 oz. 450 675 911

Lavendina Hand Cream 2 oz. 3,000 4,500 6,075

Lavendina Balm 4 oz. 600 900 1,215

Total Units 19,200 28,800 38,880

Unit Price

Tsunami Hot 4 oz. $28.50 $28.50 $28.50

Tsunami Hot 6 oz. $39.20 $39.20 $39.20

Tsunami Cool 4 oz. $21.50 $21.50 $21.50

Tsunami Cool 6 oz. $28.50 $28.50 $28.50

Vegas Baby Body Cream 4 oz. $25.90 $25.90 $25.90

Vegas Baby Body Cream 6 oz. $31.45 $31.45 $31.45

Vegas Baby Body Lotion 4 oz. $16.99 $16.99 $16.99

Vegas Baby Body Lotion 6 oz. $22.00 $22.00 $22.00

Vegas Baby Show er Gel & Scrub 4 oz. $18.99 $18.99 $18.99

Vegas Baby Show er Gel & Scrub 6 oz. $23.50 $23.50 $23.50

Vegas Baby Hand Cream 2 oz. $11.99 $11.99 $11.99

Vegas Baby Balm 4 oz. $23.99 $23.99 $23.99

Lavendina Body Cream 4 oz. $31.20 $31.20 $31.20

Lavendina Body Cream 6 oz. $36.33 $36.33 $36.33

Lavendina Body Lotion 4 oz. $21.99 $21.99 $21.99


Lavendina Show er Gel & Scrub 4 oz. $22.30 $22.30 $22.30


Lavendina Hand Cream 2 oz. $14.99 $14.99 $14.99

Lavendina Balm 4 oz. $28.50 $28.50 $28.50

Direct Unit Cost

Tsunami Hot 4 oz. $4.32 $4.32 $4.32

Tsunami Hot 6 oz. $5.94 $5.94 $5.94Tsunami Cool 4 oz. $3.22 $3.22 $3.22Tsunami Cool 6 oz. $4.27 $4.27 $4.27Vegas Baby Body Cream 4 oz. $4.24 $4.24 $4.24

Vegas Baby Body Cream 6 oz. $5.80 $5.80 $5.80Vegas Baby Body Lotion 4 oz. $2.87 $2.87 $2.87Vegas Baby Body Lotion 6 oz. $3.76 $3.76 $3.76Vegas Baby Show er Gel & Scrub 4 oz. $3.38 $3.38 $3.38Vegas Baby Show er Gel & Scrub 6 oz. $4.54 $4.54 $4.54Vegas Baby Hand Cream 2 oz. $2.27 $2.27 $2.27Vegas Baby Balm 4 oz. $4.30 $4.30 $4.30Lavendina Body Cream 4 oz. $4.24 $4.24 $4.24Lavendina Body Cream 6 oz. $5.80 $5.80 $5.80Lavendina Body Lotion 4 oz. $2.87 $2.87 $2.87




Lavendina Hand Cream 2 oz. $2.27 $2.27 $2.27

Lavendina Balm 4 oz. $4.30 $4.30 $4.30

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Year 1 Revenue Monthly

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th 8

Mon

th 9

Mon

th 1

0

Mon

th 1

1

Mon

th 1

2

Lavendina

Vegas Baby

Tsunami

Revenue By Year

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000


Lavendina

Vegas Baby

Tsunami


19

The Company’s personnel forecast is outlined below. Personnel wages indicate the average wage per position and personnel costs are total wages for each position.


Personnel Count

Manager/Partner 2 2 2

Director pf Operations 1 1 1

Marketing Manager/Executive Assistant 1 1 1

Sales 1 2 3

Assistant/Receptionist 0 1 1

Total Personnel 5 7 8

Personnel Wage

Manager/Partner $70,000 $73,500 $77,175

Director pf Operations $65,000 $68,250 $71,663

Marketing Manager/Executive Assistant $60,000 $63,000 $66,150

Sales $0 $0 $0

Assistant/Receptionist $0 $23,920 $25,116

Personnel Costs

Manager/Partner $140,000 $147,000 $154,350

Director pf Operations $65,000 $68,250 $71,663

Marketing Manager/Executive Assistant $60,000 $63,000 $66,150

Sales $0 $0 $0

Assistant/Receptionist $0 $23,920 $25,116

Total Payroll $265,000 $302,170 $317,279

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The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Loss table below, gross margin equals revenue minus direct costs. The “bottom line” or profit (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses.


Revenue $437,427 $656,141 $885,790

Total Cost of Revenue $69,149 $103,723 $140,026

Gross Margin $368,279 $552,418 $745,764


Expenses

Rent $11,700 $12,300 $12,900

Insurance $12,000 $12,600 $13,200

Marketing $21,900 $23,000 $24,200

Commission $43,743 $65,614 $88,579

Utilities $15,000 $15,800 $16,600

Phone/Internet $6,000 $6,300 $6,600

Office Supplies $1,800 $1,900 $2,000

Other/Misc. $12,000 $12,600 $13,200

Depreciation $400 $400 $400

Payroll Taxes & Benefits $39,750 $45,326 $47,592

Total Personnel $265,000 $302,170 $317,279

Total Op. Expenses $429,293 $498,010 $542,549

Profit Before Interest and Taxes ($61,014) $54,408 $203,215

EBITDA ($60,614) $54,808 $203,615

Interest Expense $9,955 $8,710 $7,376

Taxes Incurred $0 $0 $0

Net Profit ($70,969) $45,698 $195,838

Net Profit/Revenue -16.2% 7.0% 22.1%

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The charts below demonstrate when the Company is expected to become profitable. Break-even occurs when revenue exceeds expenses.

Revenue & ExpensesYear 1 Monthly

$0$5,000

$10,000$15,000$20,000$25,000$30,000$35,000$40,000$45,000$50,000

Mo

nth

1

Mo

nth

2

Mo

nth

3

Mo

nth

4

Mo

nth

5

Mo

nth

6

Mo

nth

7

Mo

nth

8

Mo

nth

9

Mo

nth

10

Mo

nth

11

Mo

nth

12

Revenue

Expenses

Revenue & Expenses Years 1 to 3

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000


Revenue

Expenses


22

The following depictions of the Company’s projected cash flow show that the Company expects to maintain sufficient cash balances over the three years of this plan. The “pro forma cash flow” table differs from the “pro forma profit and loss” (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include “non-cash” items and exclude funding and investment illustrations.

Cash Flow

-$100,000

-$50,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000


Net Cash Flow

Cash Balance


Cash Received

Revenue $437,427 $656,141 $885,790

New Current Borrow ing $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sale of Other Current Assets $0 $0 $0

Sale of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $437,427 $656,141 $885,790

Expenditures

Expenditures from Operations

Personnel Expenses $265,000 $302,170 $317,279

Bill Payments $220,834 $305,574 $367,156

Subtotal Spent on Operations $485,834 $607,744 $684,435

Additional Cash Spent

Current Borrow ing Repay. $0 $0 $0

L-T Liabilities Principal Repay. $17,212 $18,456 $19,791

Purchase Inventory $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $503,046 $626,200 $704,225

Net Cash Flow ($65,619) $29,941 $181,565

Cash Balance $18,406 $48,346 $229,911

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The balance sheet below highlights the Company’s projected assets, liabilities, and capital:


Assets

Current Assets

Cash $18,406 $48,346 $229,911

Other Current Assets $20,000 $20,000 $20,000

Total Current Assets $38,406 $68,346 $249,911

Long-term Assets

Long-term Assets $6,000 $6,000 $6,000

Accumulated Depreciation $400 $800 $1,200

Total Long-term Assets $5,600 $5,200 $4,800

Total Assets $44,006 $73,546 $254,711

Liabilities and Capital

Current Liabilities

Accounts Payable $22,162 $24,461 $29,578

Current Borrow ing $0 $0 $0

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $22,162 $24,461 $29,578

Long-term Liabilities $132,788 $114,332 $94,541

Total Liabilities $154,950 $138,793 $124,119

Paid-in Capital $0 $0 $0

Retained Earnings ($39,975) ($110,944) ($65,246)

Earnings ($70,969) $45,698 $195,838

Total Capital ($110,944) ($65,246) $130,592

Total Liabilities and Capital $44,006 $73,546 $254,711

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The sensitivity analysis below assumes that revenues are 15% higher or lower than figures projected earlier in this business plan:


Revenue $503,041 $754,562 $1,018,658

Cost of Goods $79,521 $119,281 $161,030

Gross Margin $423,520 $635,280 $857,629



Net Profit ($15,727) $128,560 $307,703

Net Profit/Revenue -3% 17% 30%

Cash Flow ($10,017) $112,841 $293,512

Cash Balance $74,008 $186,848 $480,361

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REVENUE IS 15% GREATER THAN PROJECTED


Revenue $371,813 $557,719 $752,921

Cost of Goods $58,776 $88,164 $119,022

Gross Margin $313,037 $469,555 $633,899



Net Profit ($126,211) ($37,165) $83,974

Net Profit/Revenue -34% -7% 11%

Cash Flow ($121,221) ($52,960) $69,617

Cash Balance ($37,196) ($90,155) ($20,539)

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

P ersonnel Count

Manager/P artner 2 2 2 2 2 2 2 2 2 2 2 2

Director pf Operations 1 1 1 1 1 1 1 1 1 1 1 1

Marketing Manager/Executive Assistant 1 1 1 1 1 1 1 1 1 1 1 1

Sales 1 1 1 1 1 1 1 1 1 1 1 1

Assistant/Receptionist 0 0 0 0 0 0 0 0 0 0 0 0

Total P ersonnel 5 5 5 5 5 5 5 5 5 5 5 5

P ersonnel Wage

Manager/P artner $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833

Director pf Operations $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417

Marketing Manager/Executive Assistant $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Assistant/Receptionist $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

P ersonnel Costs

Manager/P artner $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667

Director pf Operations $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417

Marketing Manager/Executive Assistant $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Assistant/Receptionist $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total P ayroll $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083

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

Revenue

Tsunami Hot 4 oz. $3,223 $3,384 $3,553 $3,731 $3,918 $4,113 $4,319 $4,535 $4,762 $5,000 $5,250 $5,512

Tsunami Hot 6 oz. $3,325 $3,491 $3,666 $3,849 $4,041 $4,243 $4,455 $4,678 $4,912 $5,158 $5,416 $5,686

Tsunami Cool 4 oz. $2,026 $2,127 $2,234 $2,345 $2,463 $2,586 $2,715 $2,851 $2,994 $3,143 $3,300 $3,465

Tsunami Cool 6 oz. $1,880 $1,974 $2,073 $2,176 $2,285 $2,399 $2,519 $2,645 $2,778 $2,917 $3,062 $3,216

Vegas Baby Body Cream 4 oz. $976 $1,025 $1,076 $1,130 $1,187 $1,246 $1,308 $1,374 $1,442 $1,515 $1,590 $1,670

Vegas Baby Body Cream 6 oz. $889 $934 $980 $1,029 $1,081 $1,135 $1,192 $1,251 $1,314 $1,379 $1,448 $1,521

Vegas Baby Body Lotion 4 oz. $640 $672 $706 $741 $778 $817 $858 $901 $946 $994 $1,043 $1,095

Vegas Baby Body Lotion 6 oz. $622 $653 $686 $720 $756 $794 $834 $875 $919 $965 $1,013 $1,064

Vegas Baby Shower Gel & Scrub 4 oz. $716 $752 $789 $829 $870 $914 $959 $1,007 $1,058 $1,110 $1,166 $1,224

Vegas Baby Shower Gel & Scrub 6 oz. $664 $698 $732 $769 $808 $848 $890 $935 $982 $1,031 $1,082 $1,136

Vegas Baby Hand Cream 2 oz. $2,260 $2,373 $2,491 $2,616 $2,747 $2,884 $3,028 $3,180 $3,339 $3,506 $3,681 $3,865

Vegas Baby Balm 4 oz. $904 $950 $997 $1,047 $1,099 $1,154 $1,212 $1,272 $1,336 $1,403 $1,473 $1,547

Lavendina Body Cream 4 oz. $1,176 $1,235 $1,297 $1,361 $1,430 $1,501 $1,576 $1,655 $1,738 $1,825 $1,916 $2,012

Lavendina Body Cream 6 oz. $1,027 $1,078 $1,132 $1,189 $1,248 $1,311 $1,376 $1,445 $1,517 $1,593 $1,673 $1,757

Lavendina Body Lotion 4 oz. $829 $870 $914 $960 $1,008 $1,058 $1,111 $1,166 $1,225 $1,286 $1,350 $1,418

Lavendina Body Lotion 6 oz. $777 $816 $857 $900 $945 $992 $1,042 $1,094 $1,149 $1,206 $1,266 $1,330

Lavendina Shower Gel & Scrub 4 oz. $841 $883 $927 $973 $1,022 $1,073 $1,126 $1,183 $1,242 $1,304 $1,369 $1,438

Lavendina Shower Gel & Scrub 6 oz. $806 $846 $888 $933 $979 $1,028 $1,080 $1,134 $1,190 $1,250 $1,312 $1,378

Lavendina Hand Cream 2 oz. $2,825 $2,967 $3,115 $3,271 $3,434 $3,606 $3,786 $3,975 $4,174 $4,383 $4,602 $4,832

Lavendina Balm 4 oz. $1,074 $1,128 $1,184 $1,244 $1,306 $1,371 $1,440 $1,512 $1,587 $1,667 $1,750 $1,837

Total Revenue $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003

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Direct Cost of Revenue

Tsunami Hot 4 oz. $489 $513 $539 $566 $594 $624 $655 $687 $722 $758 $796 $836

Tsunami Hot 6 oz. $504 $529 $555 $583 $612 $643 $675 $709 $744 $782 $821 $862

Tsunami Cool 4 oz. $303 $319 $335 $351 $369 $387 $407 $427 $448 $471 $494 $519

Tsunami Cool 6 oz. $282 $296 $311 $326 $342 $360 $377 $396 $416 $437 $459 $482

Vegas Baby Body Cream 4 oz. $160 $168 $176 $185 $194 $204 $214 $225 $236 $248 $260 $273

Vegas Baby Body Cream 6 oz. $164 $172 $181 $190 $199 $209 $220 $231 $242 $254 $267 $280

Vegas Baby Body Lotion 4 oz. $108 $114 $119 $125 $131 $138 $145 $152 $160 $168 $176 $185

Vegas Baby Body Lotion 6 oz. $106 $112 $117 $123 $129 $136 $142 $150 $157 $165 $173 $182

Vegas Baby Shower Gel & Scrub 4 oz. $127 $134 $140 $147 $155 $163 $171 $179 $188 $198 $208 $218

Vegas Baby Shower Gel & Scrub 6 oz. $128 $135 $142 $149 $156 $164 $172 $181 $190 $199 $209 $220

Vegas Baby Hand Cream 2 oz. $428 $449 $472 $495 $520 $546 $573 $602 $632 $664 $697 $732

Vegas Baby Balm 4 oz. $162 $170 $179 $188 $197 $207 $217 $228 $239 $251 $264 $277

Lavendina Body Cream 4 oz. $160 $168 $176 $185 $194 $204 $214 $225 $236 $248 $260 $273

Lavendina Body Cream 6 oz. $164 $172 $181 $190 $199 $209 $220 $231 $242 $254 $267 $280

Lavendina Body Lotion 4 oz. $108 $114 $119 $125 $131 $138 $145 $152 $160 $168 $176 $185

Lavendina Body Lotion 6 oz. $106 $112 $117 $123 $129 $136 $142 $150 $157 $165 $173 $182

Lavendina Shower Gel & Scrub 4 oz. $127 $134 $140 $147 $155 $163 $171 $179 $188 $198 $208 $218

Lavendina Shower Gel & Scrub 6 oz. $127 $134 $140 $147 $155 $162 $170 $179 $188 $197 $207 $218

Lavendina Hand Cream 2 oz. $428 $449 $472 $495 $520 $546 $573 $602 $632 $664 $697 $732

Lavendina Balm 4 oz. $162 $170 $179 $188 $197 $207 $217 $228 $239 $251 $264 $277

Subtotal Cost of Revenue $4,344 $4,561 $4,790 $5,029 $5,281 $5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430

Other Direct Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Direct Costs $4,344 $4,561 $4,790 $5,029 $5,281 $5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430

Gross Margin $23,137 $24,294 $25,509 $26,784 $28,123 $29,530 $31,006 $32,556 $34,184 $35,893 $37,688 $39,573

Gross Margin % 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84%

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Units

Tsunami Hot 4 oz. 113 119 125 131 137 144 152 159 167 175 184 193

Tsunami Hot 6 oz. 85 89 94 98 103 108 114 119 125 132 138 145

Tsunami Cool 4 oz. 94 99 104 109 115 120 126 133 139 146 154 161

Tsunami Cool 6 oz. 66 69 73 76 80 84 88 93 97 102 107 113

Vegas Baby Body Cream 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64

Vegas Baby Body Cream 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48

Vegas Baby Body Lotion 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64

Vegas Baby Body Lotion 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48

Vegas Baby Shower Gel & Scrub 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64

Vegas Baby Shower Gel & Scrub 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48

Vegas Baby Hand Cream 2 oz. 188 198 208 218 229 241 253 265 278 292 307 322

Vegas Baby Balm 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64

Lavendina Body Cream 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64

Lavendina Body Cream 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48

Lavendina Body Lotion 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64

Lavendina Body Lotion 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48

Lavendina Shower Gel & Scrub 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64

Lavendina Shower Gel & Scrub 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48

Lavendina Hand Cream 2 oz. 188 198 208 218 229 241 253 265 278 292 307 322

Lavendina Balm 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64

Total Units 1,206 1,267 1,330 1,396 1,466 1,540 1,616 1,697 1,782 1,871 1,965 2,063

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Unit P rice

Tsunami Hot 4 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50

Tsunami Hot 6 oz. $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20

Tsunami Cool 4 oz. $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50

Tsunami Cool 6 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50

Vegas Baby Body Cream 4 oz. $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90


Vegas Baby Body Lotion 4 oz. $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99


Vegas Baby Shower Gel & Scrub 4 oz. $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99


Vegas Baby Hand Cream 2 oz. $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99

Vegas Baby Balm 4 oz. $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99

Lavendina Body Cream 4 oz. $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20


Lavendina Body Lotion 4 oz. $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99


Lavendina Shower Gel & Scrub 4 oz. $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30


Lavendina Hand Cream 2 oz. $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99

Lavendina Balm 4 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50

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Direct Unit Cost

Tsunami Hot 4 oz. $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32

Tsunami Hot 6 oz. $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94

Tsunami Cool 4 oz. $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22

Tsunami Cool 6 oz. $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27







Vegas Baby Hand Cream 2 oz. $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27

Vegas Baby Balm 4 oz. $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30







Lavendina Hand Cream 2 oz. $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27

Lavendina Balm 4 oz. $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30

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Revenue $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003

Total Cost of Revenue $4,344 $4,561 $4,790 $5,029 $5,281 $5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430

Gross Margin $23,137 $24,294 $25,509 $26,784 $28,123 $29,530 $31,006 $32,556 $34,184 $35,893 $37,688 $39,573

Gross Margin/Revenue 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84%

Expenses

Rent $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975

Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Marketing $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825

Commission $2,748 $2,886 $3,030 $3,181 $3,340 $3,507 $3,683 $3,867 $4,060 $4,263 $4,476 $4,700

Utilities $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250

P hone/Internet $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Office Supplies $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Other/M isc. $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Depreciation $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33

P ayroll Taxes & Benefits $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313

Total P ersonnel $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083

Total Op. Expenses $34,877 $35,015 $35,159 $35,310 $35,470 $35,637 $35,812 $35,996 $36,189 $36,392 $36,606 $36,829

P rofit Before Int. and Tax ($11,740) ($10,721) ($9,650) ($8,526) ($7,346) ($6,107) ($4,806) ($3,440) ($2,005) ($499) $1,083 $2,743

EBITDA ($11,707) ($10,687) ($9,617) ($8,493) ($7,313) ($6,074) ($4,772) ($3,406) ($1,972) ($466) $1,116 $2,776

Interest Expense $875 $867 $859 $851 $842 $834 $826 $817 $809 $800 $792 $783

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net P rofit ($12,615) ($11,588) ($10,509) ($9,377) ($8,188) ($6,941) ($5,632) ($4,257) ($2,814) ($1,299) $291 $1,960

Net P rofit/Revenue -45.9% -40.2% -34.7% -29.5% -24.5% -19.8% -15.3% -11.0% -6.9% -3.0% 0.6% 4.2%

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Cash Received

Revenue $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003

New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sale of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sale of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003

Expenditures

Expenditures from Operations

P ersonnel Expenses $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083

Bill P ayments $0 $18,591 $18,339 $18,703 $19,087 $19,490 $19,913 $20,358 $20,826 $21,317 $21,834 $22,376

Subtotal Spent on Operations $22,083 $40,674 $40,422 $40,787 $41,170 $41,573 $41,997 $42,442 $42,909 $43,401 $43,917 $44,459

Additional Cash Spent

Current Borrowing Repay. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

L-T Liabilities P rincipal Repay. $1,389 $1,397 $1,405 $1,413 $1,422 $1,430 $1,438 $1,447 $1,455 $1,464 $1,472 $1,481

P urchase Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

P urchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash Spent $23,472 $42,071 $41,827 $42,200 $42,592 $43,003 $43,435 $43,888 $44,364 $44,864 $45,389 $45,940

Net Cash Flow $4,009 ($13,216) ($11,529) ($10,387) ($9,188) ($7,929) ($6,607) ($5,219) ($3,762) ($2,231) ($625) $1,063

Cash Balance $88,034 $74,819 $63,290 $52,903 $43,715 $35,787 $29,180 $23,961 $20,199 $17,968 $17,343 $18,406

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Current Assets

Cash $88,034 $74,819 $63,290 $52,903 $43,715 $35,787 $29,180 $23,961 $20,199 $17,968 $17,343 $18,406

Other Current Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

Total Current Assets $108,034 $94,819 $83,290 $72,903 $63,715 $55,787 $49,180 $43,961 $40,199 $37,968 $37,343 $38,406

Long-term Assets $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Accum. Depreciation $33 $67 $100 $133 $167 $200 $233 $267 $300 $333 $367 $400

Total Long-term Assets $5,967 $5,933 $5,900 $5,867 $5,833 $5,800 $5,767 $5,733 $5,700 $5,667 $5,633 $5,600

Total Assets $114,001 $100,752 $89,190 $78,770 $69,549 $61,587 $54,946 $49,694 $45,899 $43,635 $42,977 $44,006

Current Liabilities

Accounts P ayable $17,980 $17,716 $18,068 $18,438 $18,827 $19,235 $19,665 $20,116 $20,590 $21,088 $21,612 $22,162

Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Current Liabilities $17,980 $17,716 $18,068 $18,438 $18,827 $19,235 $19,665 $20,116 $20,590 $21,088 $21,612 $22,162

Long-term Liabilities $148,611 $147,214 $145,809 $144,396 $142,974 $141,544 $140,106 $138,659 $137,204 $135,741 $134,269 $132,788

Total Liabilities $166,591 $164,930 $163,877 $162,833 $161,801 $160,779 $159,771 $158,775 $157,794 $156,829 $155,880 $154,950

P aid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Retained Earnings ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975)

Current Retained Earnings ($12,615) ($24,203) ($34,712) ($44,088) ($52,277) ($59,218) ($64,849) ($69,106) ($71,920) ($73,220) ($72,929) ($70,969)

Total Capital ($52,590) ($64,178) ($74,687) ($84,063) ($92,252) ($99,193) ($104,824) ($109,081) ($111,895) ($113,195) ($112,904) ($110,944)

Total Liabilities and Capital $114,001 $100,752 $89,190 $78,770 $69,549 $61,587 $54,946 $49,694 $45,899 $43,635 $42,977 $44,006

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konstantarakis-tsunamibodyworks-09-13-10

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