Real Estate Brokerage Business Plan Executive Summary RJ Wagner & Associates Realty, Inc.

, is an S corporation domiciled in the state of Texas. This corporation is capitalized by one single stoc holder and one principal in!estor, Regina Wagner. Regina Wagner is a licensed bro er and the sponsoring bro er for this firm. The licensed bro er of this firm "ill sponsor licensed real estate agents #independent contractors$ in the state of Texas. This corporation "ill formalize the real estate ser!ices offered. RJ Wagner & Associates Realty, Inc., "ill open its doors for operation in J%ly. The office is located in &o%ston, Texas #'hampions area$ in the (reen"ood S)%are Shopping 'enter, to pro!ide ser!ices to the higher income section of *etropolitan &o%ston. 'redibility and rep%tation excel "ith the bro er of this firm, "ith a p%blished real estate boo and real estate organizational programs placed in the &o%ston Association of Realtors and the +allas Association of Realtors boo stores and s%perstores. ,or the past year no!ice licensed agents ha!e en-oyed the organizational tools and g%idance offered in the boo Texas Real .state/The *obile *entor. 1.1 Objectives The primary ob-ecti!es of o%r organization are to0 1ecome a profitable organization allo"ing %s the freedom of ta ing ad!antage of other real estate in!estment opport%nities as they become a!ailable. Recr%it and hire self2moti!ated, s%ccess2oriented, and hard"or ing sales agents. *aintain an office of at least 34 sales agents "ho meet the pre!io%s re)%irements. +e!elop a solid, corporate identity in o%r specified targeted mar et area. To establish good "or ing relationships and begin "or ing as a team, promoting comm%nication and s%ggestions from all participants. 1ecome one of the top bro erage firms in operation in the 'hampion area by o%r third year of operation, or before. Realize a positi!e ret%rn on in!estment "ithin the first 35 months. We belie!e the abo!e2mentioned ob-ecti!es are obtainable beca%se of the professionalism of the manager and sales associates this corporation "ill hold. Indi!id%als gaining a real estate license lea!e school "ith the no"ledge of the real estate la"s and proced%res. The t%rno!er rate in this b%siness is high since agents ha!e no training o%tside the la"s and reg%lations of the b%siness itself. 6nce they ha!e a license, only then, they may obtain the sales and mar eting training that is needed %pon entering the profession. This training is a!ailable at a high price to the agent. When starting o%t, most agents are not able to obtain this training at the high prices set forth, and "itho%t the proper training the a!erage earnings of a beginning real estate agent is !ery lo" in comparison to ind%stry standards. The office en!ironment "e "ill be pro!iding "ill be prod%cti!ely arranged yet in!iting to the agent as "ell as the client. There "ill be a location in the office each day "ith a daily mar eting ro%tine/sched%le to follo". Agents ha!e the opport%nity to be g%ided each day thro%gh a mar eting plan to gain clients. They may choose to follo" the g%idelines and training pro!ided or they may follo" their o"n daily ro%tines. We "ill be s%pplying a program allo"ing the ne" agents to earn more than the a!erage real estate agent by pro!iding g%idance and stability. If an agent "ith o%r company sets a goal to obtain only one seller and one b%yer for the month, on an a!erage of 7348,888 sale on each side, "o%ld earn the agent 79,:48 per month

; 35 months < 7=3,888 per year. Regina>s goal as the bro er is to assist each agent in con)%ering this goal. The same sales as noted abo!e "o%ld profit the corporation 75,548 per month ; 35 months < 75:,888 for the year ; 34 agents < 7?84,888. This is not incl%ding sales from the acti!e bro er of this corporation "hich "o%ld be 7?,488 commission from each side to total 7@,888 #388A$ to the corporation. The bro er "ill recei!e a salary from the corporation. 1.2 Mission This plan is "ritten as a g%ide for starting and managing this ne" b%siness, and "ill also ser!e as the basis for a separate, detailed mar eting plan. ,ollo"ing is a s%mmary of the main points of this plan. The ob-ecti!es of RJ Wagner & Associates Realty, Inc., are to generate a profit, gro" at a challenging and manageable rate, and to li!e %p to the ethical codes set forth by the Texas Real .state 'ommission.

The first mission of RJ Wagner & Associates Realty, Inc., is to first recr%it Texas real estate agents. The agents choosing this firm "ill recei!e top commission allo"ing them more financial ad!antage for ad!ertising in order to gain more b%siness.

The ongoing mission "ill be to assist both homeo"ners selling their homes, as "ell as homeb%yers p%rchasing the home of their f%t%re, by pro!iding professional and personal assistance. .ns%ring c%stomer>s best interest are al"ays of the %tmost importance.

The eys to s%ccess for RJ Wagner & Associates Realty, Inc., are mar eting and net"or ing, responsi!eness and )%ality of c%stomer ser!ice and generating repeat c%stomers.

We "ish to establish a s%ccessf%l partnership "ith o%r clients, o%r staff members, and o%r title companies, that respect the interests and goals of each party.

The local mar et for this b%siness, "hile not ne", is "ide open for ne" and expanding bro erage firms.

An initial financial analysis of the !iability of this !ent%re sho"s o%tstanding promise and res%lts. Se!eral so%rces note that the real estate b%siness has pro!en to be )%ite l%crati!e in today>s fast2paced "orld. While so doing, the company "ill al"ays contin%e to strengthen its position in the target mar et area by pro!iding s%perior c%stomer ser!ice to clients and to sales associates. In concl%sion, as sho"n in the highlights chart to follo", this plan pro-ects rapid gro"th, as additional agents -oin, and high net profits o!er the next three years. Implementing this plan, in con-%nction "ith a comprehensi!e and detailed mar eting plan, "ill ens%re that

RJ Wagner & Associates Realty, Inc., rapidly becomes a profitable !ent%re for the o"ner as "ell as for the contracting agents.

Com any Summary RJ Wagner & Associates Realty, Inc., is a ne" company that pro!ides high2le!el expertise in real estate sales in the state of Texas. It "ill foc%s initially on homesellers and homeb%yers, as "ell as in2ho%se sales agents. 6%r c%stomer ser!ice philosophy is %ni)%e. In a philosophic sense, RJ Wagner & Associates Realty, Inc., has three distinct c%stomer gro%ps0 sellers, b%yers, and agents. Sellers of real property are o%r first c%stomers. Bisters of properties #sellers$ pay commissions from the sale of their property and are the direct clients of the real estate bro ers. We "ill ne!er lose o%r foc%s that clients "ho ha!e retained RJ Wagner & Associates Realty, Inc., to list and sell their properties are o%r first obligation. 6%r second real c%stomer is the b%yer of residential real estate. We "ill pro!ide s%perior personal ser!ices to b%yers. 6%r third real c%stomer is the licensed real estate sales agent. It is the agent>s -ob to pro!ide a professional ser!ice to both sellers and b%yers, specifically in this order. Therefore, it is the direct responsibility of RJ Wagner & Associates Realty, Inc., to pro!ide ser!ice to o%r sales agents. As it gro"s, it "ill ta e on ne" agents pro!iding them "ith a highly competiti!e commission earnings, as "ell as pro!iding them "ith a s%pport ser!ice that "ill allo" for more prod%cti!e time in order to gain clients at a faster pace. &ence moti!ating prod%cti!e licensed agents in the real estate arena. As it gro"s, it "ill loo for additional mar eting techni)%es to offer clientele and ser!e the p%blic in the high standards handed do"n by the Texas Real .state 'ommission. 2.1 Com any O!ners"i RJ Wagner & Associates Realty, Inc., has been formed as an S corporation domiciled in the state of Texas. This corporation is capitalized by one single stoc holder and one principal in!estor, the o"ner and bro er of this firm, Regina J. Wagner. 2.2 Start#u Summary 6%r start2%p costs are o%tlined in the follo"ing chart. Said start2%p costs deri!e from "ebsite design, office e)%ipment, main comp%ter station #complete "ith all realtor information for agent %sage$, stationery, legal costs, f%rnishings, office ad!ertising and ser!ices, and expenses associated "ith opening o%r first office. The start2%p costs are to be financed by direct o"ner in!estment and credit. The ass%mptions are sho"n in the follo"ing table and chart. Bease office space a!erages 73.38 2 3.98 per s)%are foot to e)%al an approximate of 73,488 per month, pl%s %tilities, for efficient leased office space. 'ommercial lease "ill be for a three to fi!e year agreement "ith the first month and a sec%rity deposit e)%al to the monthly lease rate payable at the time of lease start date.

Need actual charts? We recommend %sing Bi!eClan as the easiest "ay to create graphs for yo%r o"n b%siness plan. Start#u $un%ing Start2%p .xpenses to ,%nd Start2%p Assets to ,%nd &otal $un%ing Re'uire% ,ssets Eon2cash Assets from Start2%p 'ash Re)%irements from Start2%p Additional 'ash Raised 'ash 1alance on Starting +ate &otal ,ssets 0iabilities an% Ca ital Biabilities '%rrent 1orro"ing Bong2term Biabilities Acco%nts Cayable #6%tstanding 1ills$ 78 78 738,888 75:,888 7@,:49 78 7@,:49 (-)+./) 75D,5?? 7D9,:49 ()*+***

6ther '%rrent Biabilities #interest2free$ &otal 0iabilities 'apital Clanned In!estment In!estor 3 In!estor 5 6ther Additional In!estment Re)%irement &otal Planne% 1nvestment Boss at Start2%p #Start2%p .xpenses$ &otal Ca ital &otal Ca ital an% 0iabilities &otal $un%ing

78 (1*+***

758,888 758,888 738,888 78 (/*+*** #75D,5??$ (2)+./) (-)+./) ()*+***

Need real financials? We recommend %sing Bi!eClan as the easiest "ay to create a%tomatic financials for yo%r o"n b%siness plan. Start#u Re'uirements Start#u Ex enses Begal/Incorporating 1etter 1%siness 1%rea% ,ee Stationery etc. 1roch%res *ailings/Costal Ad!ertising 'ompany Fard Signs 7@D8 7D@@ 75,888 73,888 73,888 75,488 73,D88

Ins%rance Ans"ering Ser!ice Website +esign Gtilities Start Gp Rent .xpensed e)%ipment/'omp%ter/'opier 6ffice ,%rnishings/Bease or Gsed 6ffice S%pplies 6ther/*iscellaneo%s 1%siness Soft"are &otal Start#u Ex enses Start#u ,ssets 'ash Re)%ired 6ther '%rrent Assets Bong2term Assets &otal ,ssets &otal Re'uirements

7554 7588 7??8 7548 7D,888 7D,888 7?,888 73,888 73,888 73,888 (2-+222

7@,:49 758,888 7:,888 (-)+./) ()*+***

Services At RJ Wagner & Associates Realty, Inc., o%r principal ser!ice consists of selling residential real estate in a targeted mar et area. 6%r ser!ices pro!ide o%r clients "ith an international net"or of b%yers and sellers thro%gh the m%ltiple listing ser!ice #*BS$. 1eca%se of o%r capabilities to net"or "ith other bro ers, "e "ill sell homes faster than o%r clients co%ld if they tried to mar et their home "itho%t the assistance of a licensed real estate agent. In addition, o%r c%stomers "ill list their homes "ith o%r agency beca%se of o%r aggressi!e and highly2s illed professionals. We "ill contin%o%sly ha!e an abo!e2a!erage sales force to generate and close residential listings. The o"ner and bro er of RJ Wagner & Associates Realty, Inc., is committed to s%ccess in the real estate mar et and adheres to the strict r%les handed do"n by the Texas Real .state 'ommission. 6%r high le!el of commitment "ill enable the company to attract top professionals as sales associates and clients loo ing to b%y and sell residential real estate. ,gents !it" t"is 3irm !ill be rovi%e% !it" t"e 3ollo!ing services4

Top commissions. 5?/: ho%r office access. 6"n Web page. *ar eting/sales g%idelines to follo" each day. Cersonal goal setting training Crofessional/commercial office setting in a highly !isible and rep%table location in the city of &o%ston. 5?2ho%r ans"ering ser!ice. ,ree inside/o%tside panoramic photography of each property listing. All photos are placed on &AR/*BS #*%ltiple Bisting Ser!ice$ and to the Internet realty sites. ,%ll bro er s%pport. Crofessional flyer "ill be f%rnished complete "ith property photos for ad!ertisement. Fard signs "ill be s%pplied and installed for the agent. ,lyer distrib%tion to other bro er sites/agents. Sellers !ill be rovi%e% !it" t"e 3ollo!ing services4 ,ree '*A #'omparati!e *ar et Analysis$. Inside/o%tside photos in panoramic !ie" placed on *BS #*%ltiple Bisting System$ and real estate Internet sites. This allo"s potential b%yers to !ie" o%r seller>s property online. Ad!ertising in local real estate p%blications. We design an attracti!e pamphlet "ith all property information, room dimensions, tax information, a letter from the seller, and a complete history of the home for potential b%yers to read "hile !ie"ing the property. This pamphlet is for the seller to eep or to gi!e to the ne" o"ner "hen the home sells. Attracti!e yard signs "ith flyer t%bes attached for potential b%yers dri!ing by. HJ%st Bisted Cost 'ardsH mailed to s%rro%nding neighborhoods. Bisting flyers distrib%ted to other bro er sites. 'irc%lated open ho%se in!itations #per seller appro!al$. S%pra System 'omp%terized Boc boxes #"e no" "hen and "ho entered premises at all times$. .xcellent follo"2%p system on each sho"ing. If no contract is s%bmitted "ithin the first listed month, "e re2analyze o%r f%t%re mar eting proced%res "ith the seller. Buyers !ill be rovi%e% !it" t"e 3ollo!ing services4 We match b%yers to homes. We ha!e an extensi!e )%estionnaire for o%r b%yers to list their "ants and needs. We then ta e this )%estionnaire and p%t the s%pplied information into o%r Cassport program to match b%yers to the homes matching their criteria. #Cassport is the latest soft"are a!ailable to licensed real estate agents and bro ers in the state of Texas.$

We go a step f%rther "ith o%r b%yers and "e go on2site for them. We !isit the homes of their choice and ta e inside and o%tside panoramic photos for their !ie"ing. We can email the photos or ha!e a face to face sho"ing "ith the b%yer. The b%yer does not ha!e to go on2 site %nless they choose to. We bring the home to them.

We present their offers and comply "ith all negotiating for them.

Market ,nalysis Summary RJ Wagner & Associates Realty, Inc., "ill be foc%sing on s%pplying homeb%yers and homesellers professionalism and expertise in reaching a s%ccessf%l sale and/or p%rchase in their real estate needs. 6%r concentration also lies "ith o%r in2ho%se agents. We feel by pro!iding o%r in2ho%se agents the s%pport program they need o%r prod%cti!ity sho%ld excel at a rapid pace. +%e to the strengthening of the economy in &o%ston area, more homeb%yers today are loo ing to p%rchase homes. These changes in attit%des of homeb%yers are a tremendo%s boost to real estate firms. We are poised to ta e ad!antage of these changes, and expect to become a recognized name and profitable entity in the &o%ston real estate mar et. We chose to locate o%r office in the area of most re!en%e potential. 6%r targeted mar et area, the 'hampions area, sho"s stability and gro"th. We ha!e a bea%tif%l office, centered in the 'hampions area. This location "ill enable o%r sales associates to "or in an area that "ill allo" them to ma e more money in a shorter period of time. The first )%arter home !al%es "ere %p =.=A from the same period in 5888, the 6ffice of ,ederal &o%sing .nterprise 6!ersight says. The gain reflects an increase from the pre!io%s )%arter, "hen residential real estate !al%es sa" year2o!er2year gro"th of =.3A. As stated in the 6b-ecti!es section22"e o%tline the profits to be gained "ith each agent stri!ing for one seller and one b%yer each month. We also state the extensi!e mar eting plans, goal setting and training pro!ided by this corporation to assist each agent in reaching this goal. As stated in the Ser!ices section22"e o%tline the ser!ices "e "ill be s%pplying to the agents, sellers and b%yers #all of "hich this corporation considers to be o%r c%stomer$. As the o%tline follo"ing "ill indicate22o%r agents "ill earn top commissions, be s%pplied "ith the latest in mar eting and ad!ertising assistance, and ha!e on2site bro er assistance at all times. This co%pled "ith the team"or and excellent mar eting programs pro!ided, "e feel "e ha!e a recipe for s%ccess. 2.1 Market Segmentation 3. 6%r most important mar et segment is the homeseller. The seller "ill be calling %pon RJ Wagner & Associates Realty, Inc., for o%r excellent mar eting strategies and techni)%es, and o%r ability to deli!er personal cons%lting, professionalism and a follo" %p system.

5. As important "o%ld be the homeb%yer. These b%yers "ill be calling on RJ Wagner & Associates Realty, Inc., to HmatchH their criteria selections. This corporation "ill be pre!ie"ing matching criteria homes for the b%yer, th%s pro!iding the b%yer "ith on2site !ie"ing capabilities "itho%t act%ally !isiting the home site.

D. Indi!id%als desiring to lease "ill also be g%ided to lease properties of their matching criteria needs.

?. When referring a client o%tside o%r expertise range, "e "o%ld search for a rep%table and no"ledgeable agent to assist them at their destination. When this corporation is the recipient of a referral22"e "o%ld match the b%yer to homes meeting his/her criteria specifications.

4. Bast, b%t not least, "o%ld be the corporation in2ho%se agents. We !ie" each one as a c%stomer and are sensiti!e to their needs. Tools, training, mar eting techni)%es and strategies, and g%idance needed is a!ailable at all times. .ach agent "ill ha!e the opport%nity to be assisted in designing a "or sched%le that adheres to their "or style, hence allo"ing greater prod%cti!ity. All agents "ill recei!e on2site g%idance in all areas needed.

Need actual charts? We recommend %sing Bi!eClan as the easiest "ay to create graphs for yo%r o"n b%siness plan. Market ,nalysis 5 ear 1 Potential 6 Customers ro!t" &ome Sellers &ome 1%yers D A D A 4,?35 D,=3@ 3? @,::? 34 =,?D? 3? ?,59: 34 D,3=: 34 =,=@4 39 =,8=D 34 D,995 39 D,354 39 A 3: A D.88 ear 2 5 ear 5 ear 2 5 ear / C, 6R D.88 5

Croperty Chotography A &otal **7

D ,DD? -. .+/)/

?= ,:=? -2 .+882

?@ ,5:= -/ 9+.-2

43 ,=39 -) 8+.82

45 ,?88 -. 1+19.

4? A -8 7

D.88 -.**

Need real financials? We recommend %sing Bi!eClan as the easiest "ay to create a%tomatic financials for yo%r o"n b%siness plan. 2.2 &arget Market Segment Strategy We cannot s%r!i!e -%st "aiting for the c%stomer to come to %s. Instead, "e m%st get better at foc%sing on the specific mar et segments "hose needs match o%r offerings. ,oc%sing on targeted segments is the ey to o%r f%t%re. Therefore, "e need to foc%s o%r mar eting message and o%r ser!ices offered. We need to de!elop o%r message, comm%nicate it, and ma e good on it.

Strategy an% 1m lementation Summary RJ Wagner & Associates Realty, Inc., "ill foc%s on the real estate needs in the &o%ston and s%rro%nding areas. 6%r target c%stomer "ill be, and o%r concentration "ill foc%s on the representation of, homesellers, homeb%yers, relocation clientele. To be the s%ccess "e are stri!ing to become this corporation realizes it m%st place a tremendo%s concentration on its in2ho%se licensed agents. The agents "ith this firm "ill be s%pported and assisted to the best of o%r ability. /.1 Com etitive E%ge The corporate bro er of this firm has a p%blished real estate boo #Texas Real .state/The *obile *entor$. This boo and the accompanying organizational programs, are distrib%ted thro%gho%t the state of Texas in real estate boo stores and associations. This boo "as "ritten for the no!ice agent "hich "ill be pro!ided to oncoming agents as a reference tool, therefore, allo"ing a fast start program. This firm allo"s HTop 'ommissionsH to the agents allo"ing for more agent ad!ertising and mar eting promotions. This firm is highly s%pporti!e to the agent it sponsors in the respect of compliance "ith agent listing tas s. All of "hich free the agent>s time to do "hat the agent is trained to do and that is to sell and gain clients. This firm has a mar eting plan in place for agents to %tilize. The company "ill be assisting all agents in goal setting/planning and in their mar eting techni)%es/strategies. .!en tho%gh the agents are independent contractors, this firm "ill r%n as a team. The open door policy "ill be in place at all times in!iting ne" ideas and s%ggestions. In addition, please reference the Ser!ices section for an o%tline of o%r ser!ices offered to in2ho%se agents, o%r sellers and o%r b%yers. All ser!ices offered to each pro!ide this corporation "ith a competiti!e edge, for "e no" of no other firm offering the extensi!e ser!ices "e pro!ide. /.2 Sales Strategy Sales in o%r b%siness is gaining property listings and %tilizing a mar eting plan that "or s best for the client. We locate and match homes to b%yers according to the criteria s%bmitted by the b%yer.

We assist in relocating clients to their ne" destinations and/or assist clients relocating to o%r area in their home search. We offer an excellent referral ser!ice any"here in the Gnited States. We search for lease properties for indi!id%als "ishing to lease !ers%s p%rchasing. We allo" abo!e2standard commission percentage rates, then pro!ide excellent mar eting and ad!ertising programs. We pro!ide o%r selling agents "ith an excellent s%pport program as "ell as g%idance. .ach potential seller listing or b%yer representation "e recei!e sho%ld be treated as an indi!id%al mission. .ach client and client property m%st be analyzed to ens%re o%r mar eting program s%pplied fits their partic%lar property and promotes it in the best possible "ay. 4.5.3 Sales ,orecast The follo"ing table and chart gi!e a r%n2do"n on forecasted sales. We expect sales to be slo"est d%ring September thro%gh +ecember, b%ilding bet"een Jan%ary thro%gh *arch and the most gro"th d%ring the months of *arch thro%gh A%g%st.

Need actual charts? We recommend %sing Bi!eClan as the easiest "ay to create graphs for yo%r o"n b%siness plan.

Need actual charts? We recommend %sing Bi!eClan as the easiest "ay to create graphs for yo%r o"n b%siness plan.

Sales $orecast 5ear 1 Sales Agent 'ompany Sales 2 54A To 4 7??,5? 8 74,5=8 75,5?? (1-/+&otal Sales :irect Cost o3 Sales Agent 'ompany Sales 2 54A To 7=,D9D 8 738,=D 7?8,48 82 5ear 1 1* 5ear 2 79:,94 8 7?8,488 74,:98 7D,:48 (2/8+/ * 5ear 73=:,48 7=D,95 88 7?4,88 7?4,888 74,:98 7D,:48 (2/8+/1 7584,8 8 7?84,88 5ear 2 5ear -

1ro er Sales 2 388A To 'ompany 4 Choto Ser!ice 2 388A To 'ompany Referrals 2 54A Agent/54A 'ompany

1ro er Sales 2 388A To

'ompany Choto Ser!ice 2 388A To 'ompany Referrals 2 54A Agent/54A 'ompany

: 7??8 7DD8 (18+8.

8 7??8 7?88 (1*9+8 8* * 7??8 7?88 (229+92

Subtotal :irect Cost o3 Sales *

Need real financials? We recommend %sing Bi!eClan as the easiest "ay to create a%tomatic financials for yo%r o"n b%siness plan. 4.D *ilestones The accompanying table lists important program milestones, "ith dates and managers in charge, and b%dgets for each. The milestone sched%le indicates o%r emphasis on planning for implementation. What the table doesn>t sho" is the commitment behind it. 6%r b%siness plan incl%des complete pro!isions for plan2!s.2act%al analysis, and "e "ill hold monthly follo"2%p meetings to disc%ss the !ariance and co%rse corrections. Milestones Milestone 1%siness Clan Bogo +esign Website +esign/Clacement 'ompany Stationary +esign/Crint 'o.+ocs Rom/+is $ +istrib%tion 'ompany Signs/Ad!ertising #'+2 Agent 5883 4/34 /5883 5883 Star En% B Ma :e art t :ate :ate u%get nager ment 9/3/ 5883 9/3/ 5883 9/3/ 5883 9/3/ 5883 9/3/ 5883 9/34/ ,D88 5883 9/34/ 88 73 W 5883 9/34/ ,888 74 W RJ 6"ner 5883 9/34/ 88 75 W RJ 6"ner 5883 9/34/ 88 74 W RJ 6"ner 9/34/ ,888 74 W RJ 6"ner 75 W RJ 6"ner RJ 6"ner

111 *embership/Fearly

3/3/ 5883 5883

9/34/ @8

7D W 75 W 7@ D8 7D W 7D W W

RJ 6"ner RJ 6"ner RJ 6"ner RJ 6"ner RJ 6"ner RJ 6"ner RJ W RJ 6"ner A1 ' ment RJ W 6"ner A1 ' ment A1 ' ment RJ W 6"ner +epart +epart +epart 6"ner

Choto *erchant 4/34 9/34/ Acco%nt 'harge /5883 5883 88 Incorporating 'harges D/34 /5883 5883 9/34/

Eat>l Realtor Assoc. 3/3/ 35/D3 *embership/Fearly 5883 /5885 88 T; Realtor Assoc. 3/3/ 35/D3 *embership/Fearly 5883 /5885 88

&o%ston 3/3/ 35/D3 73 Assoc.'orp. *BS/Fearly 5883 /5885 ,8=8 W *ontgomery Assoc. *embership/Fearly 3/3/ 5883 /5883 35/D3 88 7D

C%rchased 6ffice 4/D8 :/3/5 7D .)%ipment/'omp%ter,etc. /5883 883 ,888 W 9/34 6ffice Gtilities 'ommercial 6ffice Bease /5883 9/34 Ans"ering Ser!ice /5883 'ommercial Chone Bease Bease *achines &otals 'opy /5883 /5883 9/34 5883 9/34 5883 :/D8/ ,348 (1 9+*/* 5883 :/D8/ 88 73 /5883 9/34 5883 :/D8/ 88 75 5883 :/D8/ ,888 75 :/D8/ 88 7D 75

Management Summary The initial management team is the o"ner/licensed bro er. The bro er of this firm has the only a%thority to sponsor oncoming licensed real estate agents %nder the corporate bro er license. Gpon -oining this firm agents "ill recei!e a complete training program to incl%de the bro er>s p%blished boo , Texas Real .state0 The *obile *entor, a complete library to incl%de all company doc%ments and mar eting correspondence f%rnished on '+2RW and/or +is ette, free inside/o%tside photography of all listings, mar eting plan/goal setting g%idance and co%nseling. This firm and their agents "ill experience on2site bro er g%idance and on2site mortgage ad!isory at all times. At this time, this bro er is an acti!e listing bro er. Recr%iting licensed agents is no" in process in the &o%ston and s%rro%nding areas. This firm estimates to add a total of three licensed agents in 5883, "ith a minim%m of 35 agents to be added thro%gho%t the year of 5885. #A minim%m of one agent per month gain in 5885$. This firm stri!es to obtain a minim%m total of 34 licensed real estate agents contracting %nder this sponsored bro er. Agents "ith this firm ha!e the option to "or in2ho%se or o%t of a home2based office. In addition to the real estate ser!ices pro!ided by this corporation to homesellers and to homeb%yers, this firm offers inside/o%tside photography ser!ices in2ho%se as "ell as to other bro er firms. This ser!ice is free to in2ho%se agents and a ser!ice fee is charged to other bro er sites and agents %tilizing this ser!ice. As RJ Wagner is a sole proprietorship, the principal>s personal net "orth is gi!en belo". Personal ;et <ort" ,ssets '%rrent Assets 'hec ing Sa!ings In!estment &o%sehold (oods A%to A%to All 6ther &otal Current ,ssets Bong2term Assets *ain Residence Impro!ements 7348,888 78 Eotes0 1alance 73,488 79,888 74=,888 75?,888 79,D88 78 78 (8/+9**

Acco%nt All 6ther &otal 0ong#term ,ssets &otal ,ssets 0iabilities '%rrent 1orro"ing 'redit 'ard 'redit 'ard 'redit 'ard A%to Boan 6ther '%rrent +ebt 6ther '%rrent +ebt All 6ther Subtotal Borro!ing Current

78 758,888 (1.*+*** (2)/+9**

1alance 7D,888 7D48 74= 7D,9=3 73,488 78 78 (9+/98

Bong2term 1orro"ing *ortgage 6ther Bong2term Boans All 6ther Subtotal Borro!ing &otal 0iabilities ;et <ort" 0ong#term ()2+*** (.2+/98 (18-+211 79?,888 78 78

Need real financials? We recommend %sing Bi!eClan as the easiest "ay to create a%tomatic financials for yo%r o"n b%siness plan. ).1 Personnel Plan This firm "ill not ha!e employees b%t rather independent contractors. Therefore, the firm "ill not be iss%ing payroll to employees. Cayroll "ill be iss%ed to the bro er of the

corporation alone. All reception/secretarial needs "ill be complied "ith by the on2site/on d%ty agents on any gi!en day. There "ill be t"o licensed agents on d%ty at all times. Bicensed agents "ill recei!e DA commission on HoneH side #seller or b%yer side$ of the sale spectr%m. 6f that DA commission earned, 54A is a"arded to the company. If an agent performs the act of the selling agent and also the b%yer agent of the same property sale, then this agent "o%ld gain the f%ll 9A commission #both sides of the agency$, therefore, the corporation "o%ld be a"arded 54A from each agency side. We belie!e this plan is a fair compromise bet"een fairness and expedience, and meets the commitment of o%r mission statement. The detailed monthly personnel plan for the first year is incl%ded in the appendix.

Personnel Plan 5ear 1 7D9,8 Wagner 6ther &otal Peo le &otal Payroll ** 88 78 * (-)+* ** 88 78 * ()*+* * 2 798,8 8 78 * (1**+** 5ear 5ear 7388,88

$inancial Plan
We "ant to finance gro"th mainly thro%gh cash flo". We recognize that this means "e "ill ha!e to gro" more slo"ly than "e might li e.

The most important factor for R.J. Wagner & Associates Realty is the closing sales days. These dates "ill be determined %ltimately by the seller and the b%yer and a mo!e o%t/mo!e in sched%le "ill be complied "ith. Immediately follo"ing the closing sale commission "ill be disb%rsed by the title company cond%cting the closing.

..1 1m ortant ,ssum tions

The financial plan depends on important ass%mptions, most of "hich are sho"n in the follo"ing table as ann%al ass%mptions. The monthly ass%mptions are incl%ded in the appendix. ,rom the beginning, "e recognize that collection days are critical, b%t not a factor "e can infl%ence easily. At least "e are planning on the problem, and dealing "ith it. Interest rates, tax rates, and personnel b%rden are based on conser!ati!e ass%mptions.

Some of the more important %nderlying ass%mptions are0 We ass%me a strong economy, "itho%t ma-or recession. We ass%me that there are no %nforeseen changes in the economy that "o%ld change o%r estimations.

6eneral ,ssum tions 5ear 1 Clan *onth '%rrent Interest Rate Bong2term Interest Rate Tax Rate Ot"er 3 38.88A 38.88A 54.?5A * 5ear 2 5 38.88A 38.88A 54.88A * 5ear D 38.88A 38.88A 54.?5A *

Need real financials? We recommend %sing Bi!eClan as the easiest "ay to create a%tomatic financials for yo%r o"n b%siness plan.

..2 Projecte% Pro3it an% 0oss

6%r pro-ected profit and loss is sho"n in the follo"ing table. As "ith the brea 2e!en, "e are pro-ecting !ery conser!ati!ely regarding cost of sales and gross margin. Initially, "e "ill depend on o%r associates for most f%lfillment, "hich is "hy costs sho%ld be lo"er than sho"n. We prefer to pro-ect conser!ati!ely so that "e ma e s%re "e ha!e eno%gh cash. We are spending less on mar eting expenses d%e to o%r paid memberships "ith the associations. This bro er has a p%blished real estate boo and organizational programs placed in the &o%ston Association of Realtors and also the +allas Association of Realtors. The associations ad!ertise these mar eting tools free to this bro er. The detailed monthly pro-ections are incl%ded in the appendix.

Need actual charts? We recommend %sing Bi!eClan as the easiest "ay to create graphs for yo%r o"n b%siness plan.

Need actual charts? We recommend %sing Bi!eClan as the easiest "ay to create graphs for yo%r o"n b%siness plan. Pro $orma Pro3it an% 0oss 5ear 1 (1-/+-8 Sales 2 * 5ear 2 (2/8+/1 (2/8+/1* 5ear -

738=,@@ +irect 'ost of Sales 6ther &otal Cost o3 Sales (ross *argin (ross *argin A Ex enses Cayroll *ar eting/Cromotion +epreciation Gtilities Rent Ins%rance 6ffice S%pplies 1%siness Soft"are Beased .)%ipment Cayroll Taxes 6ther &otal O erating Ex enses Crofit 1efore Interest and Taxes .1IT+A Interest .xpense Taxes Inc%rred ;et Pro3it ;et Pro3it=Sales 7D9,888 7=,388 73,5:8 73,=88 734,988 73,=88 7D,888 73,888 7D,888 78 78 (.1+/.* 7?D,=44 7?4,354 7D54 738,::@ (-2+./* 22.187 798,888 73,888 7@:8 73,@48 734,988 73,=88 7D,588 73,888 7D,888 78 78 (99+/2* 795,888 795,@:8 7=D3 734,5@5 (2/+9.. 1..)97 7388,888 73,888 7@:8 73,@48 734,988 73,=88 7D,588 73,888 7D,888 78 78 (129+/2* 7385,348 738D,358 73,558 754,94D (./+2.. 1).-97 4 =4.54A 73@,@:8 8 78 (18+8.* * 7334,?5 8 4=.88A 7348,45 75D8,9:8 48.58A 78 (1*9+88 (229+92* 755=,=?8 78

..- Break#even ,nalysis

The follo"ing table and chart "ill s%mmarize o%r brea 2e!en analysis. *ost of o%r cost of f%lfillment is act%ally the sales of the agents as "ell as the sales of the acti!e bro er. We don>t expect to reach brea 2e!en %ntil a fe" months into the b%siness operation.

Need actual charts? We recommend %sing Bi!eClan as the easiest "ay to create graphs for yo%r o"n b%siness plan. Break#even ,nalysis *onthly Re!en%e 1rea 2e!en ,ssum tions4 A!erage Cercent Iariable 'ost Estimate% Mont"ly $ixe% Cost 34A (/+8)2 79,@@9

..2 Projecte% Cas" $lo!

'ash flo" pro-ections are critical to o%r s%ccess. The monthly cash flo" is sho"n in the ill%stration, "ith one bar representing the cash flo" per month, and the other the monthly balance. The ann%al cash flo" fig%res are incl%ded here and the more important detailed monthly n%mbers are incl%ded in the appendix.

Need actual charts? We recommend %sing Bi!eClan as the easiest "ay to create graphs for yo%r o"n b%siness plan. Pro $orma Cas" $lo! 5ear 1 Cas" Receive% 'ash from 6perations 7353,= 'ash Sales 'ash from Recei!ables Subtotal O erations Cas" 3rom -9 44 4@ 753,:: 7=,@=D ? (1-*+9 -(2//+* 7D@,553 (2/2+.9 75DD,4 @ 7?3D,44 5ear 2 5ear -

Additional 'ash Recei!ed Sales Tax, IAT, &ST/(ST Recei!ed Ee" '%rrent 1orro"ing Ee" 6ther Biabilities #interest2 free$ Ee" Bong2term Biabilities 78 78 78 78 78 78 78 79,888 78 7?,958 78 7D,348

Sales of 6ther '%rrent Assets Sales of Bong2term Assets Ee" In!estment Recei!ed Subtotal Cas" Receive% Ex en%itures .xpendit%res from 6perations -9

78 78 78 (1-)+9 /5ear 1

78 78 78 (2/8+8 * 5ear 2

78 78 78 (2//+85ear -

7D9,88 'ash Spending 1ill Cayments 8 799,8@ 3 (1*2+* Subtotal S ent on O erations 81 Additional 'ash Spent Sales Tax, IAT, &ST/(ST Caid 6%t Crincipal Repayment of '%rrent 1orro"ing 6ther Repayment Biabilities Crincipal 78 78 78 78 78 (1*2+* Subtotal Cas" S ent ;et Cas" $lo! Cas" Balance 81 (-2+.2 . (22+/* / 89 78 78 89 @= 8

798,88 8 73?@,D = (2*8+9

7388,88 75:5,45 (-.2+/2

78 78 78 78 78 78 78 (2*8+9 (/*+//

78 78 78 78 78 78 78 (-.2+/2

Bong2term Biabilities Crincipal Repayment C%rchase 6ther '%rrent Assets C%rchase Bong2term Assets +i!idends

(9-+2*1 (8/+*/ (1.9+2/

../ Projecte% Balance S"eet

The balance sheet in the follo"ing table sho"s managed b%t s%fficient gro"th of net "orth, and a s%fficiently healthy financial position. The monthly estimates are incl%ded in the appendix. Pro $orma Balance S"eet 5ear 1 ,ssets '%rrent Assets 7??,48 'ash Acco%nts Recei!able 6ther '%rrent Assets &otal Current ,ssets Bong2term Assets Bong2term Assets Acc%m%lated +epreciation &otal 0ong#term ,ssets &otal ,ssets 0iabilities an% Ca ital '%rrent Biabilities 735,4? Acco%nts Cayable '%rrent 1orro"ing 6ther '%rrent Biabilities 7@,5=5 = 738,95 79,888 8 78 78 73D,::8 78 75D,5=5 8 5ear 1 7:,888 73,5:8 (/+.-* (.2+.9 /1 5ear 2 7:,888 75,5?8 (2+.)* (129+/ (21.+.12 5ear 7:,888 7D,538 (-+.8* 8 ()8+*/ 8 81 D 7?,449 758,88 8 (12-+. (21-+822 = 7=,:DD 758,88 758,888 7@4,84 73:=,?4@ 734,?9D 5ear 2 5ear -

Subtotal 0iabilities

Current 2

(1/+29 9 78 (1/+29 2 748,88 8 #75D,5? ?$ 7D5,:4 8 (/8+/* ) : 9

(2-+1) (-.+*/2 78 (2-+1) (-.+*/2 748,88 8 7@,489 7?4,=: 7:4,5:: (1*/+9(19*+))1 (129+/ /1 (21.+.12 (1*/+9(19*+))1 748,888 744,D=D 78

Bong2term Biabilities &otal 0iabilities Caid2in 'apital Retained .arnings .arnings &otal Ca ital &otal Ca ital 0iabilities an% 8

(.2+.9 (/8+/*

;et <ort"

Need real financials? We recommend %sing Bi!eClan as the easiest "ay to create a%tomatic financials for yo%r o"n b%siness plan.

..) Business Ratios

The follo"ing table o%tlines some of the more important ratios from the 6ffices of Real .state Agents and 1ro ers ind%stry. The final col%mn, Ind%stry Crofile, details specific ratios based on the ind%stry as it is classified by the Standard Ind%stry 'lassification #SI'$ code, 94D3.

Ratio ,nalysis 5ea r1 8.88 Sales (ro"th Percent o3 &otal ,ssets Acco%nts Recei!able 9.8@ 9.:@ :.38 9.=?A A :A r2 @3.9 :A 5ea r::.8 23.@8A 5ea 1n%ustr y Pro3ile

A 59.: 6ther '%rrent Assets Total '%rrent Assets Bong2term Assets &otal ,ssets '%rrent Biabilities Bong2term Biabilities Total Biabilities ;et <ort" Percent o3 Sales 388. Sales (ross *argin Selling, (eneral Administrati!e .xpenses Ad!ertising .xpenses & @A D.?: A D5.D 88A =4.5 4A 98.8 ?A @5.D ?A :.99 A 1**. **7 58.? DA 8.88 A 58.? DA .8./ .7

A 34.4 9A @9.D 8A D.:8 A 1**. **7 3=.8 5A 8.88 A 3=.8 5A 91.8 97

A @.3@ A @=.5 9A 3.:? A 1**. **7 3:.8 5A 8.88 A 3:.8 5A 92.8 97 )1./87 D=.?3A 55.D8A 39.33A 7 D3.4@A 1**.** 9=.?3A 93.??A

388. 88A 4=.8 8A D@.= 8A 8.88 A 5D.= @A DA A DA 8A 88A

388. A 48.5 A DD.?

388.88 388.88

:8.D:A 8.88 D.=9A 55.5 5.5=A

Crofit 1efore Interest and Taxes @A Main Ratios '%rrent J%ic

?.45 ?.45

4.D? 4.D?

4.:: 4.::

5.3= 3.5?

58.? Total +ebt to Total Assets DA Cre2tax Ret%rn on Eet Worth 4A Cre2tax Ret%rn on Assets 8A 5ea ,%%itional Ratios Eet Crofit *argin Ret%rn on .)%ity ,ctivity Ratios Acco%nts T%rno!er Recei!able 5.@: 44 Cayable :.8? : D3 3.=3 r1 5?.3 @A 44.8 ?A DA =A r2 :D.3 ?A 4=.5 =A 5A

3=.8 5A 4=.8 :A ?:.4 9A 5ea r3:.9 =A ?D.4 :A

3:.8 4=.88A 44.= 5.49A ?9.D 9.33A 5ea 39.D n.a ?3.9 n.a

5.@: @D 35.3 : 59 5.85

5.@: @9 35.3

n.a n.a n.a

'ollection +ays Acco%nts T%rno!er Cayment +ays Total Asset T%rno!er :ebt Ratios +ebt to Eet Worth '%rrent Biab. to Biab. 0i'ui%ity Ratios

5D 5.33

n.a n.a

8.59 3.88

8.55 3.88

8.53 3.88

n.a n.a

74D, Eet Wor ing 'apital Interest 'o!erage ,%%itional Ratios Assets to Sales 8.44 ::9 3D?. @? 3 8,95D

738 9,=:3 :?.9 9

73: n.a =D.: n.a

8.48

8.?:

n.a

'%rrent +ebt/Total Assets Acid Test Sales/Eet Worth :ivi%en% Payout

58A ?.55 5.5= *.**

3=A ?.@: 5.?9 *.**

3:A 4.D9 5.4? *.**

n.a n.a n.a n.a

en%ix

Sales $orecast
Mont" Mont" Mont" Mont" Mont" Mont" Mont" Mont" Mont" 1 2 Mont" - Mont" 2 / ) . 9 8 1* 11 Sales Agent Sales 2 54A To 'ompany 1ro er Sales 2 388A To 'ompany Choto Ser!ice 2 388A To 'ompany Referrals 2 54A Agent/54A 'ompany &otal Sales Mont" 12

8A

78 75,D:4

7=,354 733,548 7?,488 7?,488 7?,488 7D,D:4 7D,D:4 735,D:4 73?,954

73?,954

8A 7D,D=@ 7D,:D3

79,:48

78 7D,D:4 7D,D:4 7D,D:4

78

78

7?,488

7:,=:4

7:,=:4

8A

78

7?=8

7?=8

7?=8

7?=8

7?=8

7?=8

7?=8

7?=8

7?=8

7?=8

7?=8

8A

73=:

73=:

73=:

73=:

73=:

73=:

73=:

73=:

73=:

73=:

73=:

73=: (2-+1).

(-+/.) ()+..- (1/+/22 (11+81. (9+/22 (9+/22 (9+/22 (2+*22 (2+*22 (1.+/22 (2-+1). Mont" Mont" Mont" Mont" Mont" Mont" Mont" Mont" Mont" 1 2 Mont" - Mont" 2 / ) . 9 8 1* 11

:irect Cost o3 Sales Agent Sales 2 54A To 'ompany 1ro er Sales 2 388A To 'ompany Choto Ser!ice 2 388A To 'ompany Referrals 2 54A Agent/54A 'ompany Subtotal :irect Cost o3 Sales

Mont" 12

78

75D=

7=3D

73,354

7?48

7?48

7?48

7DD=

7DD=

73,5D=

73,?9D

73,?9D

7DD@

7D:D

79:4

73,D48

79:4 73,D48

79:4 73,D48 73,D48

73,D48

79:4

79:4

78

7?8

7?8

7?8

7?8

7?8

7?8

7?8

7?8

7?8

7?8

7?8

78

7D8

7D8

7D8

7D8

7D8

7D8

7D8

7D8

7D8

7D8

7D8

(--8

()91

(1+//9

(2+/2/ (1+18/ (1+9.* (1+18/ (1+./9 (1+./9

(2+)/9

(2+2*9

(2+2*9

Need real financials? We recommend %sing Bi!eClan as the easiest "ay to create a%tomatic financials for yo%r o"n b%siness plan.

Personnel Plan
Mont" Mont" Mont" Mont" Mont" Mont" Mont" Mont" Mont" Mont" Mont" 1 2 2 / ) . 9 8 1* 11 Wagner 6ther &otal Peo le 8A 7D,888 7D,888 7D,888 7D,888 7D,888 7D,888 7D,888 7D,888 7D,888 7D,888 7D,888 8A 78 * 78 * 78 * 78 * 78 * 78 * 78 * 78 * 78 * 78 * 78 * Mont" 12 7D,888 78 *

&otal Payroll

(-+*** (-+*** (-+*** (-+*** (-+*** (-+*** (-+*** (-+*** (-+*** (-+*** (-+***

(-+***

6eneral ,ssum tions

Mont" 1 Mont" 2 Mont" - Mont" 2 Mont" / Mont" ) Mont" . Mont" 9 Mont" 8 Clan *onth '%rrent Interest Rate Bong2term Interest Rate Tax Rate Ot"er 3 5 D ? 4 9 : = @ Mont" 1* 38 Mont" 11 33 Mont" 12 35

38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A

38.88A

38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A 38.88A D8.88A 54.88A 54.88A 54.88A 54.88A 54.88A 54.88A 54.88A 54.88A 54.88A 54.88A * * * * * * * * * * *

38.88A 54.88A *

Pro $orma Pro3it an% 0oss

Mont" 1 Mont" 2 Mont" - Mont" 2 Mont" / Mont" ) Mont" . Mont" 9 Mont" 8 Sales +irect 'ost of Sales 6ther &otal Cost o3 Sales (ross *argin (ross *argin A Ex enses Cayroll *ar eting/Cromotion +epreciation Gtilities Rent Ins%rance 6ffice S%pplies 1%siness Soft"are Beased .)%ipment Cayroll Taxes 6ther &otal O erating Ex enses Crofit 1efore Interest and Taxes .1IT+A 34A 7D,888 7588 7348 7348 73,D88 7348 7388 78 7548 78 78 7D,888 7588 7348 7348 73,D88 7348 7388 78 7548 78 78 7D,888 7988 7348 7348 73,D88 7348 7588 78 7548 78 78 7D,888 7:88 7348 7348 73,D88 7348 7588 78 7548 78 78 7D,888 73,888 7354 7348 73,D88 7348 7D88 78 7548 78 78 7D,888 7:88 7@8 7348 73,D88 7348 7D88 78 7548 78 78 7D,888 7:88 7:4 7348 73,D88 7348 7D88 78 7548 78 78 7D,888 7@88 7:4 7348 73,D88 7348 7D88 78 7548 78 78 7D,888 7:88 7:4 7348 73,D88 7348 7D88 78 7548 78 78 7D,888 7:88 7:4 7348 73,D88 7348 7D88 78 7548 78 78 7D,888 73,888 7:4 7348 73,D88 7348 7D88 78 7548 78 78 7D,888 7:88 7=8 7348 73,D88 7348 7D88 73,888 7548 78 78 (-+/.) 7DD@ 78 (--8 7D,5D: @8.45A ()+..- (1/+/22 (11+81. 79=3 78 ()91 73,44= 78 (1+//9 75,4?4 78 (2+/2/ 7@,D:5 :=.9?A (9+/22 73,3@4 78 (1+18/ 7:,D?: =9.83A (9+/22 73,=:8 78 (1+9.* 79,9:5 :=.33A (9+/22 73,3@4 78 (1+18/ 7:,D?: =9.83A (2+*22 73,:4= 78 (1+./9 75,5=4 49.45A Mont" 1* Mont" 11 Mont" 12 (2-+1). 75,58= 78 (2+2*9 758,@98 @8.?:A

(2+*22 (1.+/22 (2-+1). 73,:4= 78 (1+./9 75,94= 78 (2+)/9 75,58= 78 (2+2*9

79,8@D 73D,@=4 =@.@4A =@.@=A

75,5=4 73?,==4 758,@98 49.45A =?.=4A @8.?:A

(/+-**

(/+-**

(/+9**

(/+8**

()+2./

(/+82*

(/+82/

()+12/

(/+82/

(/+82/

()+22/

()+8-*

#75,89D$ #73,@3D$

7:@D 7@?D

7=,3=4 7=,DD4

7D,?:5 7D,955

73,8:5 73,3@:

7:D5 7=55

73,?55 #7D,=?3$ #7D,9?3$ 73,?@: #7D,:99$ #7D,499$

7=,@98 73?,:D4 7@,8D4 73?,=38

73?,8D8 73?,338

Interest .xpense Taxes Inc%rred ;et Pro3it ;et Pro3it=Sales

7? #7958$ >(1+22.? #2*.2)7

7= 73@9 (/99

73D 75,8?D ()+128

73: 7=9? (2+/82

753 759D (.99 8.2-7

754 73:: (/-*

75@ 7D?=

7DD #7@9=$

7D= #7@58$

7?5 75,55@

7?9 7D,9:5

748 7D,?@4 (1*+29/ 2/.2)7

(1+*2/ >(2+8*/? >(2+./8?

()+)99 (11+*1.

9.)97 -8.227 21../7

).217 12.2-7 #.1.997 #)9.2/7 -9.1-7 2..//7

Pro $orma Cas" $lo!

Mont" 1 Mont" 2 Mont" - Mont" 2 Mont" / Mont" ) Mont" . Mont" 9 Mont" 8 Cas" Receive% 'ash from 6perations 'ash Sales 'ash from Recei!ables Subtotal Cas" 3rom O erations Additional 'ash Recei!ed Sales Tax, IAT, &ST/(ST Recei!ed Ee" '%rrent 1orro"ing Ee" 6ther Biabilities #interest2free$ Ee" Bong2term Biabilities Sales of 6ther '%rrent Assets Sales of Bong2term Assets Ee" In!estment Recei!ed Subtotal Cas" Receive% 7D,53= 78 79,8@9 73D,@== 738,:54 735 7D9= 7:8: 7:,9== 73,4?5 7:,9== 73,3=8 7:,9== 7=4? 7D,9D= 7=4? 7D,9D= 734,:== 758,=48 7=D@ 7?8? 7??@ 758,=48 73,::D Mont" Mont" 1* 11 Mont" 12

(-+219

()+1*9 (12+-/) (11+2-2

(8+2-*

(9+9)9

(9+/22

(2+282

(2+2.. (1)+182 (21+-**

(22+)2-

8.88A

78 7488

78 7488

78 7488

78 7488

78 7488

78 7488

78 7488

78 7488

78 7488

78 7488

78 7488

78 7488

78 78 78 78 78 (-+.19

78 78 78 78 78

78 78 78 78 78

78 78 78 78 78

78 78 78 78 78 (8+.-*

78 78 78 78 78 (8+-)9

78 78 78 78 78 (8+*22

78 78 78 78 78 (2+882

78 78 78 78 78

78 78 78 78 78

78 78 78 78 78

78 78 78 78 78 (2-+12-

()+)*9 (12+9/) (11+8-2

(2+8.. (1)+)82 (21+9** Mont" Mont" 1* 11

Ex en%itures .xpendit%res from 6perations 'ash Spending 1ill Cayments Subtotal S ent on O erations Additional 'ash Spent Sales Tax, IAT, &ST/(ST Caid 6%t Crincipal Repayment of '%rrent 1orro"ing 6ther Biabilities Crincipal Repayment Bong2term Biabilities Crincipal Repayment

Mont" 1 Mont" 2 Mont" - Mont" 2 Mont" / Mont" ) Mont" . Mont" 9 Mont" 8

Mont" 12

7D,888 738,895

7D,888 73,@35

7D,888 7D,3?5

7D,888 79,598

7D,888 79,35?

7D,888 7?,9D=

7D,888 7?,@84

7D,888 7?,?8?

7D,888 7D,=9:

7D,888 7D,=93

7D,888 7:,=55

7D,888 7@,8@D

(1-+*)2

(2+812

()+122

(8+2)*

(8+122

(.+)-9

(.+8*/

(.+2*2

()+9).

()+9)1 (1*+922

(12+*8-

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

78

C%rchase 6ther '%rrent Assets C%rchase Bong2term Assets +i!idends Subtotal Cas" S ent ;et Cas" $lo! Cas" Balance

78 78 78 (1-+*)2 >(8+-22? (212

78 78 78 (2+812 (1+)8)

78 78 78 ()+122 (9+.12

78 78 78 (8+2)* (2+).2

78 78 78 (8+122 ()*)

78 78 78 (.+)-9 (1+.-*

78 78 78 (.+8*/

78 78 78 (.+2*2

78 78 78 ()+9).

78 78 78

78 78 78

78 78 78 (12+*8(11+*-* (22+/*-

()+9)1 (1*+922 (8+9-1 (1*+8.9

(1+1-. >(2+212? >(1+98*?

(2+1*9 (1*+921 (1-+28- (12+*88 (1/+928 (1)+8)) (12+//2 (12+))- (22+28/ (--+2.2

Need real financials? We recommend %sing Bi!eClan as the easiest "ay to create a%tomatic financials for yo%r o"n b%siness plan.

Pro $orma Balance S"eet

Mont" 1 Mont" 2 Mont" - Mont" 2 Mont" / Mont" ) Mont" . Mont" 9 Mont" 8 Mont" 1* Mont" 11 Mont" 12

,ssets

Starting Balances

'%rrent Assets

'ash

7@,:49

7?35

75,38=

738,=53

73D,?@D

73?,8@@

734,=5@

739,@99

73?,44?

735,99D

755,?@4

7DD,?:5

7??,48D

Acco%nts Recei!able

78

7D4=

73,85D

75,58@

75,9@?

75,889

73,9=8

73,9=8

73,5D8

7:@4

75,3?4

7?,835

7?,449

6ther '%rrent Assets

758,888

758,888

758,888

758,888

758,888

758,888

758,888

758,888

758,888

758,888

758,888

758,888

758,888

&otal Current ,ssets

(28+./)

(2*+..*

(2-+1-1

(--+*-*

(-)+19.

(-)+1*/

(-.+/*8

(-9+)2)

(-/+.92

(--+2/9

(22+)2*

(/.+29/

()8+*/8

Bong2term Assets

Bong2term Assets

7:,888

7:,888

7:,888

7:,888

7:,888

7:,888

7:,888

7:,888

7:,888

7:,888

7:,888

7:,888

7:,888

Acc%m%lated +epreciation

78

7348

7D88

7?48

7988

7:54

7=34

7=@8

7@94

73,8?8

73,334

73,3@8

73,5:8

&otal 0ong#term ,ssets

(.+***

()+9/*

()+.**

()+//*

()+2**

()+2./

()+19/

()+11*

()+*-/

(/+8)*

(/+99/

(/+91*

(/+.-*

&otal ,ssets

(-)+./)

(2.+)2*

(28+9-1

(-8+/9*

(22+/9.

(22+-9*

(2-+)82

(22+./)

(21+918

(-8+219

(/*+/2/

()-+28/

(.2+.98

0iabilities an% Ca ital

Mont" 1 Mont" 2 Mont" - Mont" 2 Mont" /

Mont" )

Mont" .

Mont" 9

Mont" 8 Mont" 1* Mont" 11

Mont" 12

'%rrent Biabilities

Acco%nts Cayable

738,888

73,=33

75,@D?

79,84?

74,@:8

7?,?:?

7?,:4=

7?,5:4

7D,:?D

7D,983

7:,43@

7=,::D

7@,5=5

'%rrent 1orro"ing

78

7488

73,888

73,488

75,888

75,488

7D,888

7D,488

7?,888

7?,488

74,888

74,488

79,888

6ther '%rrent Biabilities

78

78

78

78

78

78

78

78

78

78

78

78

78

Subtotal Current 0iabilities

(1*+***

(2+-11

(-+8-2

(.+//2

(.+8.*

()+8.2

(.+./9

(.+../

(.+.2-

(9+1*1

(12+/18

(12+2.-

(1/+292

Bong2term Biabilities

78

78

78

78

78

78

78

78

78

78

78

78

78

&otal 0iabilities

(1*+***

(2+-11

(-+8-2

(.+//2

(.+8.*

()+8.2

(.+./9

(.+../

(.+.2-

(9+1*1

(12+/18

(12+2.-

(1/+292

Caid2in 'apital

748,888

748,888

748,888

748,888

748,888

748,888

748,888

748,888

748,888

748,888

748,888

748,888

748,888

Retained .arnings

#75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$ #75D,5??$

#75D,5??$

.arnings

78

#73,??:$

#7=4@$

74,5:8

7:,=95

7=,948

7@,3=8

738,554

7:,D3@

7?,493

733,5?@

755,599

7D5,:48

&otal Ca ital

(2)+./)

(2/+-*8

(2/+98.

(-2+*2)

(-2+)19

(-/+2*)

(-/+8-)

(-)+891

(-2+*./

(-1+-1.

(-9+**/

(28+*22

(/8+/*)

&otal 0iabilities an% Ca ital

(-)+./)

(2.+)2*

(28+9-1

(-8+/9*

(22+/9.

(22+-9*

(2-+)82

(22+./)

(21+918

(-8+219

(/*+/2/

()-+28/

(.2+.98

;et <ort"

(2)+./)

(2/+-*8

(2/+98.

(-2+*2)

(-2+)19

(-/+2*)

(-/+8-)

(-)+891

(-2+*./

(-1+-1.

(-9+**/

(28+*22

(/8+/*)