Community Based Organizations Development Center Inc. BUSINESS PLAN

1 CONTENTS CONFIDENTIALITY STATEMENT ..............................................................................................................................3 SECURITIES STATEMENT ........................................................................................................................................4 1 EXECUTIVE SUMMARY..................................................................................................................................5 1.1 KEYS TO SUCCESS .................................................................................................................................................7 1.2 MISSION STATEMENT............................................................................................................................................8 1.3 OUR VISION ........................................................................................................................................................8 1.4 OBJECTIVES.........................................................................................................................................................8 1.5 BUSINESS MODEL CANVASS ..................................................................................................................................10 2 INDUSTRY RESEARCH.................................................................................................................................. 12 2.1 MARKET OVERVIEW............................................................................................................................................12 2.2 MEDIA MARKET SIZE ...........................................................................................................................................13 2.1.3 Target Population......................................................................................................................................14 2.3 PORTERS’ FIVE FORCES OF PROFITABILITY ...............................................................................................................15 2.3.1 Threats of New entrants......................................................................................................................15 2.3.2 Threat of Substitutes............................................................................................................................16 2.3.3 Competitive Rivalry ..............................................................................................................................16 2.3.4 Bargaining power of Buyers.................................................................................................................16 2.3.5 Bargaining power of suppliers.............................................................................................................16 3 ORGANIZATION DESCRIPTION .................................................................................................................... 17 3.1 ORGANIZATION INFORMATION..............................................................................................................................17 3.2 LOCATION.........................................................................................................................................................17 3.3 CORE VALUES ....................................................................................................................................................17 3.4 SERVICES DESCRIPTION........................................................................................................................................18 3.5 COMPETITORS ANALYSIS......................................................................................................................................19 3.6 PRICING STRATEGY .............................................................................................................................................20 3.7 REGULATORY REQUIREMENTS...............................................................................................................................20 4 STRATEGIES AND IMPLEMENTATION.......................................................................................................... 20 4.1 MANAGEMENT TEAM .........................................................................................................................................20 4.1.1 Organizational Structure......................................................................................................................22 4.2 GROWTH PLAN..................................................................................................................................................23

2 5 MARKETING PLAN ...................................................................................................................................... 24 5.1.1 Objectives.............................................................................................................................................24 5.2 MARKETING STRATEGIES......................................................................................................................................24 5.3 TARGET MARKET SEGMENT STRATEGY ...................................................................................................................27 6 FINANCIAL PLAN......................................................................................................................................... 28 6.1 STARTUP ANALYSIS .............................................................................................................................................28 6.2 FINANCIAL OVERVIEW .........................................................................................................................................29 6.3 PROFIT AND LOSS ...............................................................................................................................................30 6.4 BALANCE SHEET .................................................................................................................................................36 6.5 BREAK EVEN ANALYSIS ........................................................................................................................................39

3 Confidentiality Statement This document contains confidential information proprietary to Community Based Organizations Development Center Inc. This information and related conversations are submitted solely to introduce selected parties to Community Based Organizations Development Center Inc. Business Plan. Community Based Organizations Development Center Inc. disclosure of information contained herein and in related conversations does not constitute any subscription or authorization to use the information, ideas, or concepts presented, or to disclose any information to other parties. Community Based Organizations Development Center Inc. retains ownership of this plan, and the concepts, and ideas described herein. Each recipient of this document agrees to treat it in a strictly confidential manner. The recipient may not disclose, directly or indirectly, or permit any agent or affiliate to disclose any of the information contained herein or reproduce this document in whole or part without the prior written consent of the organization. Any party who accepts delivery of this Plan or any other document or verbal communication of confidential information from Community Based Organizations Development Center Inc. agrees to be bound by the terms of this Confidentiality Statement and further agrees to return documents to the organization upon request promptly.

4 Securities Statement This Business Plan does not constitute an offer to sell or the solicitation of an offer to buy any securities or an offer to sell or the solicitation of an offer to buy such securities in any circumstances in which such offer or solicitation is unlawful. Neither the delivery of this memorandum nor any sale of the organization’s securities shall, under any circumstances, create any implication that there has been no change in the affairs of the organization since the date hereof or that information contained herein is correct as of any time after its date. The market analysis and projections presented in this document represent management’s subjective views of the business and information gathered from reliable industry sources. The financial projections are based on management’s best judgment and reasonable assumptions of future events and circumstances. There can be no assurance that management’s assumptions and expectations will be realized or that its perceptions are accurate. Industry experts may disagree with management’s view of the market. No representations or warranties of future organization performance or market trends are intended, and such are expressly disclaimed. Copy Number: ___________________________________ Provided to: ______________________________________ Date: ___________________________________________

5 1 Executive Summary Poor people in developing countries share the same goals as all people -- economic security for themselves, their families, and future generations. The main difference is that they have fewer resources and opportunities. Most live in high-risk and unpredictable environments. And, compared to others, they don’t have much money. Volunteering your time, money, or energy to help others doesn’t just make the world better—it also makes you better. Community outreach programs are avenues to bring growth to society and the people around us, raise social awareness on sensitive matters, and become a means of providing new, innovative solutions to health, and socio-economic challenges that plague our world today. The smiles of the beneficiaries of a community outreach program and the positive impact that is left behind are valid reasons why community outreach programs should become a regular part of society. Furthermore, housing plays a critical role in providing stability to poor families. When families lack it, there are terrible consequences. Research1 shows that eviction can have enduring effects on families’ ability to obtain basic necessities (e.g., food, clothing, and medicine) and can cause depression among mothers, and a strong body of evidence links inadequate housing and homelessness to child abuse and neglect. Housing instability can lead to frequent school moves, high rates of absenteeism, and low test scores among children. Housing affects almost everything. No person should be homeless if there are public structures and policies that allow people to have homes and food and lead a dignified life in the US. Unfortunately, homelessness statistics reveal that there is still much work to be done. Homelessness is not a novelty in the US. It has become a source of concern as early as the 19th century as urbanization projects exposed those most vulnerable. Approximately 17 people per 1 https://www.penguinrandomhouse.com/books/247816/evicted-by-matthew-desmond/9780553447439/

6 10,000 experience homelessness each day. The number of homeless in the US is estimated at 552,830.2 With around half a million individuals living in a state of homelessness, things are not looking great. Approximately 2.4% of homeless persons die yearly — about 13,000 out of half a million. When you think about it, homelessness is a significant health risk for individuals. Having a roof above your head becomes a matter of life and death.3 This is why we are around to cater to the needs of the target population. Community Based Organizations Development Center Inc. is a nonprofit organization that provides community and economic development services to homeless, low-income families, and other individuals on how to ―Step Up‖ from their current living situation. Through our musical "Fresh Start Concert Series" both at local and global levels we can access, develop, and provide a wide range of social services like collecting donated food, clothing, and personal care items. We solicit temporary housing and its funding through sponsor dollars. Through the information provided by the representatives of key social organizations, these concerts are conduits to provide access and awareness to the various causes and social needs available on the local and international levels. We are establishing an online music, radio, and live stream format to secure branding and global access. Stephen J Knight is the founder of Community Based Organizations Development Center Inc. He has relevant experience in the industry and is confident about the success of the organization. Also, Community Based Organizations Development Center Inc. has other board members and will hire skilled employees to offer necessary support in achieving its goals. We will penetrate the market and build strong brand visibility through social media and email marketing, among others. We will also set up a website for prospective beneficiaries to browse our services. As a strategy to increase the beneficiary base, we will offer a variety of programs and become the conduit of resources designed to meet the unique needs of each individual we serve with dignity. These include emergency shelter, food and clothing assistance, case management services, job training, placement assistance, and much more. We will play favorably in the competitive environment with our excellent technical know-how and constant 2 https://policyadvice.net/insurance/insights/homelessness-statistics/ 3 https://policyadvice.net/insurance/insights/homelessness-statistics/

7 reliable resources to enhance beneficiary experience and increase productivity, offering good services with our experienced in-house workforce, and so on. 1.1 KEYS TO SUCCESS Automation: Community Based Organizations Development Center Inc. will offer step-up training for the needy and manage donations through advanced technological solutions to increase productivity. We will operate an online platform for easy accessibility by the beneficiaries; orders and requests by beneficiaries will be track-able, and reports will be generated automatically without hassle. Market Research: We will make necessary research on how to innovate and increase our beneficiary base. Ample experience: The experiences garnered in relevant industries will pull a pool of opportunities for scalability. Adaptability: We will not only survive as a non-profit organization, but we will also thrive. We will adopt proactive measures and ingenious strategies to enhance adaptability in the face of external factors that may hamper our sustainability. Beneficiary Service: Community Based Organizations Development Center Inc.’s beneficiary service will be topnotch; we will respectably treat our beneficiaries and also get beneficiary reviews to help us serve them.

8 1.2 MISSION STATEMENT Our mission is to offer a variety of programs and become the conduit of resources designed to meet the unique needs of each individual we serve with dignity. We are committed to consistently delivering exceptional results while leaving a lasting impact within our community. 1.3 OUR VISION We visualize placing programs and services that will serve people and support community growth, and where impoverishment is replaced with empowerment. We anticipate on rebuilding a fair, habitable, safe, productive, and thriving community; one that inspires its residents, entrepreneurs, and visitors. 1.4 OBJECTIVES To help teach individuals fundamentals of growth skills by helping with their finances, housing, and reaching personal goals that can be accomplished through learning better life choices to get there. To make a difference in people's lives by providing them with food and shelter. To help improve people's lives by giving them access to food and shelter. To foster an inclusive culture and environment. To make a difference by providing homeless individuals with quality services To humbly and honorably assist our homeless community. To build communities. To provide quality humanitarian services To make life worth living for the underprivileged while upholding high ethical and moral standards To create opportunities for growth and development for the underprivileged populace.

9 To stand up to social responsibility. To ensure beneficiary satisfaction.

10 1.5 BUSINESS MODEL CANVASS Key Partners Donors Investors Grant awarding agencies Key Activities Providing humanitarian services for people Provision of relief materials Advertising and marketing activities with relevant agencies . Value Proposition Quality outreach services for the homeless Quality entertainment services Quality classes Provision for the needy Polite and very friendly beneficiary service Qualified and experienced founder Beneficiary Relationship Our location in Atlanta Social networks: Facebook, Twitter, Instagram, YouTube, etc. Beneficiary Segments Homeless individuals in Atlanta, Georgia, and Florida. Key Resources Human resources: Stephen J Knight Technological Resources: Computer System Mobile Phone Channels Organization’ s facility Organization’ s website Cost Structure Revenue Streams

11 Facility (mid-level budget) Show (High-Level budget) Equipment (High-level Budget) Supplies (High-level budget) Money realized from donors. Money realized from music concerts

12 2 Industry Research Community Based Organizations Development Center Inc. is ready to set the standard and raise the bar of quality service delivery in the community services and media services market in the United States. Great satisfaction in the industry is determined by quality service delivery and we are ready to provide an excellent experience for our beneficiaries, providing them with quality services and befitting donations, free of charge. 2.1 MARKET OVERVIEW The global community and individual services market is expected to grow from $1014.8 billion in 2020 to $1135.44 billion in 2021 at a compound annual growth rate (CAGR) of 11.9%. Major companies in the community and individual services market include UNICEF; CARE International; Medecins Sans Frontieres; World Food Programme and Feeding America. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $1543.34 billion in 2025 at a CAGR of 8%. Western Europe was the largest region in the global community and individual services market, accounting for 44% of the market in 2020. Asia Pacific was the second largest region accounting for 29% of the global community and individual services market. Middle East was the smallest region in the global community and individual services market. Community and individual services providers are increasingly using >[email protected] Website Domain: www.communitybcenter.org Phone: 877-960-3730 / 707-2356776 Legal Status: 501©(3) 3.2 LOCATION The organization is located in Atlanta, United States. Our secondary is our Florida office in Bradenton, Florida, which provides the needs of the surrounding areas such as Tampa, Florida. As we grow, more spaces will be sourced out for managerial and administrative purposes. 3.3 CORE VALUES To continually provide an excellent service, Community Based Organizations Development Center Inc. will uphold the following core values in the running of the organization: Sustainable Innovation Inclusion Excellent and beneficiary-focused delivery Quality beneficiary relations Improved Industry Knowledge Accountability Efficient Solutions Honesty and Integrity

18 3.4 SERVICES DESCRIPTION Community Based Organizations Development Center Inc. is an organization striving to bring food provision and shelter to the homeless. We access, develop, and provide social services to individuals through our musical "Fresh Start Concert Series," both at local and global levels. We collect donated food, clothing, and personal care items. We solicit temporary housing and its funding through sponsor dollars. Through the information provided by the representatives of key social organizations, these concerts are conduits to provide access and awareness to the various causes and social needs available on the local and international levels. We are establishing an online music, radio, and live stream format to secure branding and global access. At Community Based Organizations Development Center Inc., our goal is to promote an atmosphere and environment of inclusiveness. Stephen James Knight is the CEO of Community Based Organizations Development Center, Inc. He was born in the Bushwick/Bedford Stuyvesant Section of Brooklyn, New York. He graduated from Pace University in New York, majoring in accounting and finance, business law, and business economics. He did postgraduate work at Pace University, NY, and Golden Gate University, San Francisco, CA, majoring in advanced business income taxation and business management. Mr. Knight has over 45 years of employment experience in the private and public sectors combined, including over 27 years with the City of Oakland, California, Housing Authority, where he was initially employed as an accountant and rose to the position of Director of Finance in 1999. As the Director of Finance, he had the total financial responsibility of overseeing the various public housing administration programs and property development budgets exceeding dollars. While residing in California, he and his wife formed and operated transitional homes for adults released from the federal prison system as well as for youth under the control of the juvenile justice court system. These homes were operated under an 18-month program that provided tracks in basic life skills, education platforms, speech and writing enhancement, job training skills, and money management. The organization’s staff includes; Miguel Paul: Ways and Means Advisor/ Entertainment

19 Serapis Neith Maat: Executive Secretary With our main beneficiaries being the homeless, it’s going to be very important to have an online presence. The online market is growing and expanding to all ages, making it easier to reach all markets. We will create a social media marketing plan as well to reach our target population. This will include pages on Facebook, Instagram, and LinkedIn. 3.5 COMPETITORS ANALYSIS The competitors of Community Based Organizations Development Center Inc. are other established and upcoming non-profit organizations that cater to the needs of the needy in and around us in Atlanta, Florida, the United States, and on the internet. Some of these organizations have established a reputation and positive service representation over the years. They have been in the industry before us and may be regarded as one of the leading organizations in our operation line. However, we have been able to identify that to choose between competitors, factors considered by beneficiaries include: The reputation of the founder Quality of services Beneficiary service Recommendation Social experience Testimonials We have then taken all of these into proper consideration. We have observed that the individual’s satisfaction with her decision and with our quality community development services and the function of timeliness of our service and the service they experience. Everyone associated with our organization will do everything possible to ensure that all our beneficiaries get satisfactory services with us, so that future business and future referrals are not at risk. Marketing strategies will build on this model, taking advantage of precipitating events, fostering word-of-mouth recommendations, and creating satisfaction by interacting with the future and present beneficiaries.

20 3.6 PRICING STRATEGY Our services are free of charge as it is our duty to help those in need and develop communities. 3.7 REGULATORY REQUIREMENTS In the US, some compulsory licenses and permits are required to handle the different aspects of our organization. Community Based Organizations Development Center Inc. will apply and obtain the necessary licenses and certificates required to carry out our operations to ensure that we comply with the relevant regulations in the United States. 4 Strategies and Implementation 4.1 MANAGEMENT TEAM Stephen J Knight is the founder of Community Based Organizations Development Center Inc. He has relevant experience in the industry and will channel his experience to steer the wheel of the organization to an enviable height. He will be saddled with the responsibility of making executive and administrative decisions regarding the organization's operations and functionality. He is very creative, forward-thinking, and strong, hands-on team leader, highly efficient and results-oriented with exceptional management and organizational skills. He also has exceptional interpersonal skills combined with a proven ability to drive profitability, manage and nurture talent, deliver operational growth, form strategic partnerships, and successfully implement challenging projects. He is an expert in executing team-driven process improvements to increase growth, operational efficiency, and excellent stewardship. He also has a strong beneficiary service orientation to work effectively with employees, the leadership of donor companies, and others. His responsibility is to oversee and decide what goes on in the organization, which is in line with the stated goals and objectives. He will be in full operation devising all means and strategies, putting his entrepreneurship skills and experience in the business world to help Community

21 Based Organizations Development Center Inc. achieves its development purpose, achieve its best standard, and become people’s first choice.

22 4.1.1 ORGANIZATIONAL STRUCTURE Community Based Organizations Development Center Inc. will employ a staff of different categories to handle the different operations. We will ensure we hire qualified, hardworking, creative, and beneficiary-friendly staff and associates that are committed to building a prosperous organization.

23 4.2 GROWTH PLAN Activity Description Time line Strategies Target Market Service Development Acquire the required license to operate Operate on a lean model Year 1 Get all the necessary equipment and supplies to grow the organization Conduct effective marketing strategies Improve online presence Develop a well-optimized and localized website and portal Take professional courses and exams required to obtain the needed license Keep overhead low by recruiting a few employees Atlanta Atlanta United States Service Expansion Improve the quality and delivery of service Improve efficiency by employing more people Increase our beneficiary segment Expand operations to other regions in the United States Year 2 Improve existing processes Recruit more experienced staff Gain a remarkable market presence through aggressive marketing strategies Atlanta United States Diversificatio n Maintain a positive cash flow for expansion and growth Introduce new service offerings Year 3 - UP Conduct market research to determine the market needs Expand our service deliverables United States

24 5 MARKETING PLAN Our marketing plan includes strategies that we will currently put into full operation and will be reviewed with changes in the environment and the market. We will focus on online marketing channels which are the primaries marketing strategies used in the industry as it reaches a broader range of its target audience. 5.1.1 OBJECTIVES To effectively communicate our brand’s value and our services to our target audience To accomplish our objectives and work towards our growth plan within the expected year Expand our presence in the markets locally. 5.2 MARKETING STRATEGIES 5.2.1.1 ONLINE STRATEGY ACTIVITIES EXPECTATION WEBSITE DEVELOPMENT Create an active and user-friendly website The website will be registered on domain names specific to the site Maintaining a well-designed fast and responsive website that will include the organization’s phone number, email address, and listings which will be updated regularly An online portal that will be used to enhance property listing will be linked with the website. Make the website mobile-friendly Look into reviews, feedbacks, and recommendations Increased web traffic, visibility, and client base Wider reach of the target market Optimization of services SEO & ADS Creating vibrant and relevant content with popular and local keywords to attract users to our website and social media platforms Top position on related Google search Increased chance of getting a click from

25 Pay for ads campaigns on Google and Bing to publicize the organization Use the geotag feature that targets ads based on a beneficiary’s location Launch relevant and unique ads such as Facebook ads, Amazon ads, Google ads, online banner ads which reflect our service offerings being top-listed on pages Less difficulty for potential beneficiaries in checking our website out. SOCIAL MEDIA MARKETING Create and maintain an active social media account across all platforms, engage with the target audience Interact with followers consistently with fresh and attractive content, which will promote real estate properties. Include the link to our website on our social media page Paid social media advertisement Enormous potential reach across Atlanta and the United States Brand awareness and recognition Increased number of beneficiaries. Direct communication with potential beneficiaries With paid ads, contents will be narrowed down to the specific demographics EMAIL MARKETING Gathering the email database of our target market from websites, local outreach, and email listings Send subscribers personalized, professional, relevant, and useful updates Integrating social sharing buttons into emails Include images and links of listings, a video walkthrough of property or virtual staging to give beneficiaries a better feel Reinforced credibility Wider target market reach Improved engagements

26 5.2.1.2 OFFLINE STRATEGY ACTIVITIES EXPECTATIONS Words of mouth marketing (WOMM) Keep beneficiaries satisfied and happy by providing exceptional and satisfying service. Providing quality service from highly experienced and dedicated staff. Provide incentives, i.e., referral bonuses to beneficiaries who refer new beneficiaries Increased number of returning beneficiaries and new beneficiaries from referrals BUILD PARTNERSHIPS Partner with online property platforms to showcase our prospects. Form affiliations with local business or property owners Increased brand awareness COMMERCIAL ADVERTISEMENT Pay for adverts on billboards placed at strategic locations to attract the target market Publish weekly or monthly newsletter with updates on real estate laws, benefits of homeownership, development of real estate service portfolio, etc. Advertise our services in magazines and popular real estate journals High brand awareness Increased number of beneficiaries. Increased public enlightenment and education CONFERENCES AND SEMINARS Attend real estate conventions and seminars where we can pitch your service to potential beneficiaries Increase our networking opportunities Ability to pitch our service to our specific target audience

27 5.3 TARGET MARKET SEGMENT STRATEGY This business targets homeless individuals. The myriads of opportunity that flood the cloud with the introduction of the internet are added advantage to our organization. Apart from the fact that promotional activities will be carried out on our website, we will equally embrace other options like mouth-to-mouth advertisement, local advertisement strategies, and reviews from beneficiaries, referrals, and others. Community Based Organizations Development Center Inc. will also embrace social media as an essential tool of business engagement and encourage its beneficiaries to use social media to reach out and connect with the organization and share our good news with friends, beneficiaries, and communities – both old and new. Examples of social media platforms that we will utilize include but are not limited to: Social networking sites (Facebook, Instagram, LinkedIn) Micro-blogging sites (Twitter) Blogs (including organization and personal blogs as well as comments) Video and photo sharing websites (Flickr, YouTube) Forums and discussion boards (Google Groups, Yahoo! Groups) Online Encyclopedias (Wikipedia) Our strategy is to grow the organization by nurturing beneficiaries, differentiating the general service offering from our competitors, mainly through solid business ethics. All criteria from beneficiary satisfaction, excellent beneficiary approach, and price competitiveness will be looked at thoroughly in the initial stages as areas for improvement. Strategies will be developed aimed at capturing all the beneficiaries in our location. Researches will be conducted regularly to ensure that our services fully meet beneficiary expectations.

28 6 FINANCIAL PLAN The following section contains the financial information for Community Based Organization Development Center Inc. Tables and charts show annual projections for the first five business years. 6.1 STARTUP ANALYSIS Community Based Organization Development Center Inc. Startup Expenses Capital Expenditure Cost Land purchase $ 500,000.00 Startup farm $ 390,000.00 Legal $ 1,620.00 Stationery $ 200.00 Computer $ 3,000.00 Other Micro-greens setup $ 8,000.00 Total Startup Expenses $ 902,820.00 Owner's Investment $ - Loan $ 890,000.00 Equity Investment $ 500,000.00

29 6.2 FINANCIAL OVERVIEW Below is the financial overview showing the profitability of the business as the sales increases with little change in the cost. The profit is seen to increase with sales. Financial Overview Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenue $ 1,000,000 $ 1,300,000 $ 1,690,000 $ 2,197,000 $ 2,856,100 Total Expenses $ 379,880 $ 441,845 $ 521,908 $ 625,475 $ 759,569 Net Profit $ 495,163 $ 719,511 $ 1,011,626 $ 1,391,863 $ 1,886,680 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 1 2 3 4 5 Year Financial Overview Total Revenue Total Expenses Net Profit

30 6.3 PROFIT AND LOSS The below table is the profit and loss projection for the first five business years. The sales are seen to increase each year, causing a considerable increase in the net profit too. Profit and Loss Statements Year 1 Year 2 Year 3 Year 4 Year 5 $ $ $ $ $ Total Sales 1,000,000 1,300,000 1,690,000 2,197,000 2,856,100 Total Cost of Sales 200,000 260,000 338,000 439,400 571,220 Gross Margin 800,000 1,040,000 1,352,000 1,757,600 2,284,880 Gross Margin % 80% 80% 80% 80% 80% Operating Expenses Rent 24,000 24,000 24,000 24,000 24,000

31 Phone 1,800 1,890 1,985 2,084 2,188 Website 3,180 3,180 3,180 3,180 3,180 Advertising 30,000 31,500 33,075 34,729 36,465 Office Supply 3,300 3,465 3,638 3,820 4,011 Insurance 22,800 22,800 22,800 22,800 22,800 Principal & Interest 71,544 71,544 71,544 71,544 71,544 Property taxes 17,256 17,256 17,256 17,256 17,256 Utilities 4,200 4,410 4,631 4,862 5,105 Cable 1,800 1,800 1,800 1,800 1,800 Payroll

32 30,000 30,000 30,000 30,000 30,000 Website Development 18,000 18,000 18,000 18,000 18,000 Print & Digital marketing 6,600 6,930 7,277 7,640 8,022 G-suit set up 1,500 1,500 1,500 1,500 1,500 Total Operating Expenses 179,880 181,845 183,908 186,075 188,349 Operating Income 620,120 858,155 1,168,092 1,571,525 2,096,531 Operating Margin 62% 66% 69% 72% 73% EBITDA 620,120 858,155 1,168,092 1,571,525 2,096,531 Depreciation and Amortization 89,300 89,300 89,300 89,300 89,300 Interest Expense 0 0 0 0 0

33 Tax Incurred 35,657 49,344 67,165 90,363 120,551 Net Profit $ 495,163 $ 719,511 $ 1,011,626 $ 1,391,863 $ 1,886,680 Net Profit/Sales % 50% 55% 60% 63% 66% From the above analysis, total revenue of $495,163 was made in the first year of business activities. Every business always aspires to increase its sales. With the marketing strategy adopted, it is assumed that this will yield an increase in the subsequent years of business activities, causing the revenue for each year to increase too. Chart: Profit and Loss $- $500,000 $1,000,000 $1,500,000 $2,000,000 Year 1 Year 2 Year 3 Year 4 Year 5 $495,163 $719,511 $1,011,626 $1,391,863 $1,886,680 Net Profit

34 Cash Flow Statement Below is a cash flow statement projection for five years showing the movement of cash within the business. Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 $ $ $ $ $ Cash From Operations Cash Sales 1,000,000 1,300,000 1,690,000 2,197,000 2,856,100 Subtotal Cash From Operations 1,000,000 1,300,000 1,690,000 2,197,000 2,856,100 Additional Cash Received Owner's Investment 0 0 0 0 0 Investor's Fund 500,000 0 0 0 0 New Long-term Liabilities 890,000 0 0 0 0 Sales of Other Current Assets 0 0 0 0 0 Sales of Long-term Assets 0 0 0 0 0 New Investment Received 0 0 0 0 0 Subtotal Cash Received 2,390,000 1,300,000 1,690,000 2,197,000 2,856,100

35 Expenditures Year 1 Year 2 Year 3 Year 4 Year 5 Expenditures from Operations Total Cost of Sales 200,000 260,000 338,000 439,400 571,220 Total Operating Expenses 179,880 181,845 183,908 186,075 188,349 Interest Expense 0 0 0 0 0 Tax Incurred 35,657 49,344 67,165 90,363 120,551 Subtotal Spent on Operations 415,537 491,189 589,074 715,837 880,120 Additional Cash Spent Other Liabilities Principal Repayment 0 0 0 0 0 Long-term Liabilities Principal Repayment 178,000 178,000 178,000 178,000 178,000 Capital Expenditures 893,000 0 0 0 0 Investors' Dividend 0 0 0 0 0 Owner's Drawing 0 0 0 0 0 Subtotal Cash Spent 1,486,537 669,189 767,074 893,837 1,058,120 Net Cash Flow $ 903,463 $ 630,811 $ 922,926 $ 1,303,163 $ 1,797,980 Cash Balance $ 903,463 $ 1,534,274 $ 2,457,201 $ 3,760,363 $ 5,558,343

36 Chart: Cash Flow The graph above shows the upward movement of closing cash balance which indicates that there is an increase in cash balance at the end of every period. 6.4 BALANCE SHEET Below is the financial forecast of the balance sheet for the business. The below table shows the steady growth in the net worth of the organization, this shows that the business is a very profitable one. Table: Balance Sheet Balance Sheet $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 1 2 3 4 5 Year Cash Flow Net Cash Flow Cash Balance

37 Starting Bal. Year 1 Year 2 Year 3 Year 4 Year 5 $ $ $ $ $ $ Assets Current Assets Cash (393,000) 903,463 1,534,274 2,457,201 3,760,363 5,558,343 Other Current Assets 0 0 0 0 0 0 Total Current Assets (393,000) 903,463 1,534,274 2,457,201 3,760,363 5,558,343 Long-term Assets Long-term Assets 893,000 893,000 893,000 893,000 893,000 893,000 Accumulat ed Depreciati on 0 89,300 178,600 267,900 357,200 446,500 Total Long-term Assets 893,000 803,700 714,400 625,100 535,800 446,500 Total Assets 500,000 1,707,163 2,248,674 3,082,301 4,296,163 6,004,843 Liabilities and Capital

38 Current Liabilities Accounts Payable 0 0 0 0 0 0 Current Borrowing 0 0 0 0 0 0 Other Current Liabilities 0 0 0 0 0 0 Subtotal Current Liabilities 0 0 0 0 0 0 Long-term Liabilities 890,000 712,000 534,000 356,000 178,000 0 Total Liabilities 890,000 712,000 534,000 356,000 178,000 0 Paid-in Capital 0 0 0 0 0 0 Retained Earnings 0 495,163 1,214,674 2,226,301 3,618,163 5,504,843 Earning 0 495,163 719,511 1,011,626 1,391,863 1,886,680 Total Capital 0 495,163 1,214,674 2,226,301 3,618,163 5,504,843 Total Liabilities and Capital 890,000 1,207,163 1,748,674 2,582,301 3,796,163 5,504,843 Net Worth (390,000) $ 995,163 $ 1,714,674 $ 2,726,301 $ 4,118,163 $ 6,004,843

39 Chart: Net Worth 6.5 BREAK EVEN ANALYSIS Break-even is the point where the business neither makes profit nor loss. This means that at break even, the business is only able to pay up its expenses both fixed and variable cost without any excess. The essence of break-even is to determine the number of sales that could lead to profitability. Break Even Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Fixed cost $ 179,880 $ 181,845 $ 183,908 $ 186,075 $ 188,349 Variable Cost % 20% 20% 20% 20% 20% Gross Margin % 80% 80% 80% 80% 80% $995,163 $1,714,674 $2,726,301 $4,118,163 $6,004,843 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 1 2 3 4 5 Year Net Worth

40 Break Even Income $ 224,850 $ 227,306 $ 229,885 $ 232,593 $ 235,437 Revenue $ 1,000,000 $ 1,300,000 $ 1,690,000 $ 2,197,000 $ 2,856,100 This means that there must be more than $224,850 worth of sales yearly before any profit can be recorded. The above analysis can be seen in the below graph showing the curve of sales and total cost. Different amount of sales is assumed to show the possibility of an intersection which indicates the breakeven point, beyond which the company starts making a profit. $224,850 $227,306 $229,885 $232,593 $235,437 $1,000,000 $1,300,000 $1,690,000 $2,197,000 $2,856,100 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 1 2 3 4 5 Year Breakeven Curve Break Even Income Revenue