Anzah Mustafa

Table of Contents I. II. Statement of Confidentiality & Non-Disclosure .................................................. 2 Executive Summary ............................................................................................... 3 Quick Facts Background Mission Statement III. Description of Business......................................................................................... 6 Location Hours of Operation 3D Rendered Design Layout Products and Services Sample Brochure and Pamphlet IV. V. Management and Company Structure ................................................................. 15 Industry Information ............................................................................................ 16 Consumer Trends/Demographics and Industry Overview Competition Seasonal Factors VI. Marketing Plan .................................................................................................... 20 Target Market Pricing Strategy and Payment Structure Advertising VII. Recognition of Risks ............................................................................................ 21 VIII. Financial Snapshot .............................................................................................. 22 Breakdown of Project Financing Key Financial Metrics and Assumptions IX. Appendix.............................................................................................................. 25 Balance Sheet Projected Income Statement- Year 1 Projected Income Statement- Year 2 Statement of Confidentiality & Non-Disclosure This document contains proprietary and confidential information. All data submitted to the receiving party is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with you. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document’s content of its confidential nature. The recipient agrees to instruct each employee that they cannot disclose any information concerning this document to others except to the extent that such matters are generally known to, and are available for use by the public. The recipient also agrees not to duplicate, distribute, or permit others to duplicate or distribute any material contained herein without the express written consent of- Ontario Inc. O/A Paradise Eden Spa & Salon- Ontario Inc. O/A Paradise Eden Spa & Salon retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia. BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 2 Executive Summary Dear Sir/Madam, I am pleased to inform you that I am opening a new spa business,- Ontario Inc. O/A Paradise Eden Spa & Salon. This business will specialize in providing a variety of spa and esthetician services for the local Markham community, using exemplary products and providing exceptional customer service. With the growing emphasis on healthy living and individual wellness, spas and our customizable services continue to be in-demand, making our business a value add in this community. We are confident that our excellent spa services, trained staff, and exemplary products will be in-demand in this local community. I, Ms. Lai Yin Tsang, am an experienced entrepreneur and business professional. I am a confident leader with extensive successful management experience, and am a strong forerunner with excellent business acumen. I have over 15 years of health and wellness industry-related experience and am the current manager of Paradise Spa in Richmond Hill, Ontario. Prior to this, I worked for 7 years as an esthetician, giving me both hands-on and administrative experience. My extensive business experience has developed and honed my communication and interpersonal skills, such that I am confident that I will be able to build this business into a reputable spa with a steady customer base. I am a confident entrepreneur with an extensive and comprehensive skillset that will benefit me in this new endeavor. My extensive understanding of best business practices will ensure that I am able to deliver excellent customer service, while my commitment to spa services and quality wellness products, paired with my desire to ensure financial profitability, will continue to give me the necessary drive and ambition to run this business successfully. My goal is to establish- Ontario Inc. O/A Paradise Eden Spa & Salon as a major player of spa service providers in the Town of Markham. I am currently seeking a government loan for the amount of $350,000 inclusive of registration fees to finance leasehold improvements and the purchase of necessary equipment for this new location from The Royal Bank of Canada. I am also seeking a $10,000 business credit card for everyday business expenses and a $5,000 overdraft protection for any unforeseen cash flow shortages. As per the opening balance sheet provided, I have injected over $472,000 of my own funds into starting up this new business. I appreciate your consideration in reviewing my business needs, and hope that it will lead to the development of a long-term business relationship with The Royal Bank of Canada- ONTARIO INC. O/A PARADISE EDEN SPA & SALON 3 Quick Facts Business Name:- Ontario Inc. O/A Paradise Eden Spa & Salon Business Owner(s): Ms. Lai Yin Tsang Business Type: Corporation (100% - Ms. Lai Yin Tsang) Registered Mailing Address: 20 Main Street North, Markham, Ontario, L3P 1X2 E-mail:-Telephone:- Background Ms. Lai Yin Tsang is an experienced spa professional with 15 years of background in the health and wellness industry. She is a graduate of Queen’s University, a prestigious and wellknown Canadian post-secondary institution. Prior to this, she was certified as a gemologist by the Gemological Institute of America, and prior to entering the health and wellness industry, she worked at EGL, as a first colour diamond grader. In this capacity, she developed comprehensive organizational skills and an understanding of quality control. In 1990 she entered the spa and wellness business, working as an esthetician for Venezia Ladies Club in Markham, Ontario for 7 years. In this role, she provided a variety of esthetician services for clients of all backgrounds, honing her services and refining her related skills. In addition, for 17 years she has worked at the Paradise Spa in Richmond Hill, Ontario – for the last 14 of those years she has been the manager of this location. She is an exemplary manager, with excellent leadership and organizational skills that will continue to support her in this new business venture. In addition, her close work with customers has developed her customer service and communication skills, ensuring that she will continue to use these skills effectively in this new business endeavour. In addition, she has worked in other similar businesses, including: Paradise Wellness, Your Health Centre, Your Complete Wellness, Healthy Spine Walk-In Clinic and Sante Walk-In Clinic. In these various roles, she has developed a keen business acumen and an understanding of the requirements of running such a business. Ms. Tsang is a motivated and driven individual who has the necessary confidence and background to benefit her and ensure her success in this new business venture. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 4 Mission Statement- Ontario Inc. O/A Paradise Eden Spa & Salon is committed to building a successful spa in the Main Street area of the Town of Markham. We will provide our clients with a soothing atmosphere in which to recuperate and revitalize themselves, contributing to their mental, emotional, and physical well-being. We will provide customizable treatments and services to relax and rejuvenate our clients, leaving them rested and ready to rejoin the world. Our goal is to build-up our business and establish a loyal clientele, making us a mainstay in the Town of Markham spa and wellness community. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 5 Description of Business- Ontario Inc. O/A Paradise Eden Spa & Salon is a new spa business that will provide a comprehensive array of treatments and services for men and women, specializing in customization and overall wellness. We will be leasing a 4,500 square foot commercial property in the Town of Markham, in the Province of Ontario. This location will have a front counter, which will include items for retail sale and a waiting area, changerooms/bathrooms, a nail service area, as well as specialty rooms for private spa services. Our venture is a highly desirable and in-demand service-based business, that caters towards mental, physical, and emotional well-being, which is currently a major trend in the greater Canadian community and global community as a whole. We will serve as an oasis in which both men and women are able to indulge is well-deserved pampering and grooming services. In addition, we have a skilled team of health and wellness professionals who will provide skilled services to ensure full customer satisfaction. The business is structured as a corporation solely owned by Ms. Lai Yin Tsang (100% share), who brings over 15 years of esthetician and spa management experience to this new business, as well as a passion for wellness and entrepreneurship. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 6 Location- Ontario Inc. O/A Paradise Eden Spa & Salon has leased a 4,500 square foot commercial space at 20 Main Street North in the Town of Markham, in the Province of Ontario. The space will serve as both a commercial retail space through which we will sell spa related products, as well as a service-based spaced through which we will offer a variety of spa services. It is located in the popular Main Street area of Markham, which is an extension of Markham Road, running north of Highway 7. Both of these streets are major thoroughfares, with Highway 7 running east-west across the Town of Markham and into neighbouring regions. Markham Road provides easy access to Highway 407 to the nearsouth, which provides ease of accessibility for both local and out of area clients. The area of Main Street is a picturesque and quaint local commercial area that is popular with both locals and tourists. It is surrounded by a highly populated residential area, and is highly accessible to both drivers and pedestrians. We are confident that this attractive and unique area will be an added draw for the needs of our customers, further increasing our overall customer base. Hours of Operation The hours of operation have been designed to ensure that the maximum level of customer service is offered to clients. We will be open 7 days a week, from 9:00am to 8:00pm each day. Due to the personalized nature of our services, and the fact that we need to cater to the varying schedules of our clients, it is essential that we maintain such hours of operation to ensure our competitiveness in the local wellness and beauty community, as well as to ensure we meet the time constraints and needs of our customers. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 7 3D Rendered Design Layout Double Massage Spa Room # 1 Double Massage Spa Room #- ONTARIO INC. O/A PARADISE EDEN SPA & SALON 8 Additional Sample Massage Spa Room Toilet- ONTARIO INC. O/A PARADISE EDEN SPA & SALON 9 Products and Services The health and wellness industry is a diverse one, composed of a wide array of businesses with varying services and procedures offered. Due to the nature of our local competition, as well as our understanding of this sector, we have designed a comprehensive “menu” of services, that will attract a variety of clients, meeting their varying but highly specific needs. With regards to nail treatments, our trained nail stylists will offer quality manicures and pedicures that include light massage, choice of colour, and exfoliation. In addition, we have trained professionals who are able to customize nail treatments with diamonds and/or nail designs that heighten the final product. For those looking for gel nails and shellac, we are able to provide them with a quality and lasting end product, customizable for their specific needs. Manicures Massages Facials Body Therapies - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 10 - Ontario Inc. O/A Paradise Eden Spa & Salon will also have hair and make-up services, comparable to the highest standards set in the finest salons. Our stylists will offer haircuts, blow dry’s, and styling for both men and women. In addition, a variety of colour, toner, highlights, and perm options are available. For those looking for services catered to special occasions, our master hair stylists offer updo’s and coordinating make-up, which will appeal to the local community for major events and bridal services. For hair removal, our qualified estheticians offer removal for all body parts for men and women, including men’s back hair, women’s bikini lines, and all other typical hair removal services. In addition, services such as eye lash extensions will be an added draw for customizing one’s overall experience. In terms of full body and relaxation services, our trained professionals will cater to the varying needs of our clientele. We offer several forms of massage including Swedish, hot stone, Thai, and RMT. For those looking for more specialized treatment forms, this may be complimented by cupping or reflexology, amongst our many offerings. Our facial treatments are designed to be deep cleansing, improving the overall quality of the clients’ skin. For those looking for more specified treatments, we offer a variety of in-demand services including body toning, polishes, body scrubs, high radio frequency slimming, acne treatments, and a variety of other services. Our goal is to make our client feel like a better person, and when they leave us, they should have increased confidence and an overall feeling of well-being. We are confident that our extensive and comprehensive line of services will be a huge draw in the spa and wellness community of the Town of Markham. Hair Removal Nails Please see next pages to discover a full list of our products and services - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 11 Sample Brochure and Pamphlet - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 12 - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 13 - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 14 Management and Company Structure Currently, our management and company structure includes the following team members: Management and Owners: Ms. Lai Yin Tsang: Affiliates: Employment: Full-time Full-time Part-time Part-time Part-time President, Director and Owner (100% share) Position Esthetician (6) Hair Dresser (1) Hair Stylist (1) Nail Technician (1) Massage Therapist (3) Wage per Hour: $11.25 $11.25 Commission Only Commission Only Commission Only Hours/week:- The total wages payable on a monthly basis is currently at $26,328.98 and is reflected in the two years projected income statement provided. These projections are based on initial operations – based on on-going growth and demand, we will reevaluate these positions at a future date to be determined in order to determine whether additional staff is required. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 15 Industry Information Consumer Trends/Demographics and Industry Overview- Ontario Inc. O/A Paradise Eden Spa & Salon will be opening in the Main Street area of the Town of Markham, which is located in the Province of Ontario. This region lies at the heart of the North American Free Trade area, which has a combined population of 460 million people and a combined GDP of $18 trillion. In addition, according to the Government of Ontario, “in 2011, more than C$1.4 billion crossed the Canada-U.S. border each day and Ontario-US trade accounted for approximately C$716 million of that amount.”1 Furthermore, 37% of the Canadian national GDP is generated in this province, which is reflective of the purchasing power of the 13.5 million residents living in a geographic area encompassing over 415,000 miles2. The majority of these residents live in the area known as the “Golden Horseshoe”, which is located on the shores of Lake Ontario and includes “the Greater Toronto Area, Hamilton, St. Catharines and Niagara Falls.”2 As such, with the population and wealth to support a variety of organizations, franchises and businesses, the Province of Ontario is an economic hub of Canada, which is an asset to any business looking to establish a meaningful foothold in this part of the country. 1 2 About Ontario. Government of Ontario. https://www.ontario.ca/page/about-ontario (08/08/16). Same as #2. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 16 According to Statistics Canada, the population of the Town of Markham was 301,709 people based on data collected by the 2011 census data. This was up 15.3% from previous 2006 data, in comparison to the 5.9% rate of growth seen nationally. In addition, the Town of Markham is approximately 212.58 square kilometres with 90,534 private dwellings. Furthermore, it is considered to be part of the census metropolitan area of Toronto. 3 From the same source of data, it should be noted that in 2011, there were 109,085 females aged 15 to 64 (14.4% higher than 2006), which is important since females tend to use a higher number of spa services than men- Ontario Inc. O/A Paradise Eden Spa & Salon is more specifically located in Ward 4 of the Town of Markham. According to a demographic profile of the ward compiled by the Town of Markham, is has a population of 39,350 people based on 2011 census data, of whom 43% are visible minorities, with the top 3 backgrounds being Chinese (22%), South Asian (9%), and Black (2%). In addition, 23% of households had an average household income higher than $150,000 in this ward, and 60% had completed some type of 3 Focus of Geography Series, 2011 Census: Census subdivision of Markham, T – Ontario. Statistics Canada. https://www12.statcan.gc.ca/census-recensement/2011/as-sa/fogs-spg/Facts-csdeng.cfm?LANG=Eng&GK=CSD&GC=- (modified 07/01/16)- ONTARIO INC. O/A PARADISE EDEN SPA & SALON 17 postsecondary education.4 This is significant since the higher income levels will contribute to people having a higher disposable income through which to indulge in our varying and attractive spa services. Spa businesses such as this fall under the Personal Care Services (NAICS 8121) industry, which according to the Government of Canada has 15,666 businesses in the Province of Ontario and holds 36.0% of the Canadian market share. Of these, only 6,888 fall under the class of being employers and thereby having other employees working for them. 5 According to Statista, the beauty and anti-aging industry is worth a staggering $1.025 trillion dollars worldwide, and the revenues collected in the United States by the spa industry is valued at $14 billion dollars.6 As such, this highly valued industry continues to grow, especially with the rising emphasis put on health, wellness and overall well-being. As such, we are confident in the success of our new spa business. Competition- Ontario Inc. O/A Paradise Eden Spa & Salon has a variety of competitors in the health, spa and beauty industry. In the Main Street area of the Town of Markham, there are a variety of businesses that provide a variety of comparable services. These include: Asana Day Spa and Yoga Studio, Mar Skin Care Spa, Svengali Spa, RelaxZone Massage Therapy and Wellness Centre, and Beauty by Nature, amongst other such businesses. It is important to note that while each of these businesses provides services found in our business, none offer the comprehensive and extensive “spa menu” that our business serves to provide our customers. In addition, our extensive operating hours provide an added level of appeal to our customers, along with our highly trained and agreeable staff who contribute to ensuring each of our clients receives a quality and special overall experience. Therefore, while we could list the pros and cons of each competitor, as experienced business professionals we are confident that we will outperform our competitors in all areas. Our years of growth and business success in our previous and current work experiences are evidence of this, and the ambition and drive of our management team, our competitive prices, and our quality services 4 Markham, Ward 4 Demographics 2011: Quick Facts. The Corporation of the City of Markham. https://www.markham.ca/wps/wcm/connect/markhampublic/dff0aafe-6994-4b7c-8af02d24d-/Demographics+Fact+Sheet+Markham++Ward+4.pdf?MOD=AJPERES&CACHEID=dff0aafe-6994-4b7c-8af0-2d24d- (accessed 17/08/16). 5 Personal Care Services (NAICS 8121): Establishments. Government of Canada. https://strategis.ic.gc.ca/app/scr/sbms/sbb/cis/establishments.html?code=8121&lang=eng (20/04/16). 6 “Statistics and facts on the wellness and spa industry.” Statista. http://www.statista.com/topics/1336/wellness-and-spa/ (accessed 17/08/16)- ONTARIO INC. O/A PARADISE EDEN SPA & SALON 18 are evidence of the strength of our business model and its potential success in this industry. We are confident that we will be able to outperform our competitors due to these reasons, as well as the extensive experience and professionalism of our management team and employees. Seasonal Factors This industry is cyclical and is moderately exposed to the effects of seasonality. The beauty industry is dependent on clients who are in need of nail, massage and esthetic care, amongst other services. As per the projected income statement I have provided, I have accounted for an approximate 15%/month decrease in revenues during the winter season between the months of January and February attributed to mainly cold weather. Revenues tend to grow by 10%/month between March and June, recovering due to the approaching spring and summer season. Revenues may experience a slowdown of approximately 5% and decrease at a rate of 5%/month during the summer months of July and August, which might be attributed to clients being on vacation. Revenues tend to stay consistent between September and October. Revenues are estimated to decrease by 5% in the month of November. In addition, there would be growth of approximately 15% in December, attributed to a need for more professional grooming services, due to increased holiday function, both office and personal-related and the opportunity to sell gift cards. Based on experience, these trends hold their consistency based on industry trends. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 19 Marketing Plan Target Market As experienced business professionals,- Ontario Inc. O/A Paradise Eden Spa & Salon is committed to providing our services to a wide target market. While stereotypes hold that spa services are typically used by women between the ages of 16 to 60, we recognize that these stereotypes do not necessarily hold true and spa services and product lines are enjoyed by men and women aged 16 and up. As such, we have designed our “menu” of products and services to appeal to both genders, recognizing the need to provide quality services for an expansive range of clients of all ages and genders. Pricing Strategy and Payment Structure Pricing is designed to be competitive and in-line with current market rates and expectations. Pricing:  The average person spends between $100 and $1,000, depending on chosen treatment and the number of treatments indulged in. This is also impacted by whether or not they purchase related products used for treatments, which is common amongst spa clientele who look to continue the well-being in their own homes. Payment Structure, Average Length of Contracts & Terms (Working Capital Cycle):  Typically, customers pay up-front upon completion of services in the manner of a retail storefront  If customers need to accommodate a multi-payment structure, than they will accept a deposit of 15%, with the remaining due in multiple payments depending on the extent of the treatments being done  Payment is in cash, payable by cash, debit or credit card  Estimate cost of goods sold is 30%  Customers typically pay for services and any additional goods purchased (e.g. Paradise custom branded nail polish)  Cost of goods sold = acetone, manicures, nail filing, alcohol, massage oil, towels, medical grade tips, cleansers, toners, exfoliators, gels, etc. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 20 Advertising- Ontario Inc. O/A Paradise Eden Spa & Salon is aware of the importance of advertising in our business and of establishing ourselves in this highly specialized niche market. Our most important advertising is through positive word-of-mouth, since in this highly specialized customer service business, positive client reviews are essential for building up our overall population base, as clients share their positive experiences with friends, family, and colleagues. In addition, we are in the process of developing our corporate website, Facebook, and Instagram accounts, which will be interlinked in order to digitally interact with clients, allowing them to contact us directly, plan their spa services, book appointments, and share their experiences over popular social media networks. We will also invest in advertising via online bloggers who will build up positive reviews and expand our online presence, in addition to utilizing such sites as We Chat. We are confident that through a successful and motivated advertising plan, we will be able to establish our business and grow its client-base. Recognition of Risks This business plan represents my best estimate regarding the future performance and potential of this business venture. It should be recognized that not all major risks can be accurately predicted or otherwise avoided. I can confidently say that based on my current extensive experience, company structure and motivation, I will run this business successfully. I am ambitious, hardworking, and will grow and expand our business, allowing me to achieve financial success. A management salary of $6,000/month will commence starting November 2016. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 21 Financial Snapshot Breakdown of Project Financing I am currently seeking a government loan in the amount of $350,000 inclusive of registration fees to finance the recent purchase of major equipment from The Royal Bank of Canada. I am also seeking a $10,000 business credit card for everyday business expenses and a $5,000 overdraft protection for any unforeseen cash flow. As per our opening balance sheet provided, I have injected over $472,000 of my own funds into starting up this new business. - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 22 Key Financial Metrics and Assumptions - - - - - - Cost of Goods Sold represents 30.0% of estimated projected revenues including all supplies including acetone, manicures, nail filing, alcohol, massage oil, towels, etc. The follow sales trends have been used in projecting the income statement: o An estimated growth rate of 10%/month has been used between the months of March-July o It is estimated that revenues will grow by 5% in the months of July and August o It is estimated that revenues will stay consistent between SeptemberOctober o Revenues will go down by approximately 5% in the month of November o Revenues will grow by 15% in the month of December due to holiday and corporate functions encompassing the need for personal care services. Also an opportunity to sell gift cards. o Revenues will go down by 15%/month decrease between the months of January-February. Mainly attributed to cold weather and effects of seasonality The starting point of revenues is $151,666.67 and was calculated as follows: o Based on a minimum spend of $100/person * 50 people/day = $5,000/day revenue * 7 days/week*52 weeks/year/12 months = $151,666.67 starting revenue point which is very conservative in nature As the owner is self-sufficient and has started this business using a portion of his own funds, a conservative management salary of $6,000/month will commence starting in November 2016 Salaries are estimated to be based and comprised of the following components: o It is estimated that the total fixed salaries will amount to $18,000/month conservatively o It is estimated that on a monthly basis that commissions paid out will be approx. 40% of total revenues and this is reflected in the attached projections Office supplies represents on average $100/month including office and stationary Depreciation – Calculated using Straight Line Method- estimated useful life for equipment’s is 20 years and 30 years for leasehold improvements. Business insurance costs roughly $2,500/month based on property and liability insurance required to operate the business Telephone and internet are estimated to be $120/month - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 23 - Utilities are estimated to be $2,000/month including hydro, gas, etc. - Rent is estimated to be $7,345 (including all applicable taxes, maintenance and insurance) - Advertising and marketing is estimated to be $750/month including expenses allocated to flyers, marketing materials and similar advertising methods currently in place at the existing spa building on its brand - Travel represents a monthly expense of $50/month - Bank charges represent a monthly expense of - Estimated fixed costs in the 1st year will exceed $160,000 NOTE: PROJECTIONS ARE CONSERVATIVE IN NATURE BASED ON INDUSTRY RELATED EXPERIENCE - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 24 Appendix Balance Sheet 01-Nov-16 Assets Current Assets Cash Accounts receivable Inventory Prepaid expenses Short-term investments 178,000 30,000 13,000 Total current assets Fixed (Long-Term) Assets Equipments Lease hold improvement 221,000 - 150,000 450,000 Furniture Goodwill Total Fixed (Long-Term) Assets 600,000 - Total Other Assets 1,050 1,050 - 822,050 - Other Assets Incorporation Cost Franchise Fee Total Assets Liabilities and Owner's Equity Current Liabilities Accounts payable Short-term loans Income taxes payable Accrued salaries and wages Unearned revenue Current portion of long-term debt (CSBFL Loan) Long-Term Liabilities Long-term debt Bank Loan (CSBFL Loan) 50,000 50,000 - 300,000 Total long-term liabilities Total Liabilities Owner's Equity Stock Retained earnings Shareholder loan Total owner's equity Total Liabilities and Owner's Equity Assumptions: Prepaids = 1st + last months rent CSBFL Loan is assumed to be amortized over 6 years 2% set-up- included in total financing costs 300,000 350,000 472,050 472,050 - - 822,050 $6,862.75 - ONTARIO INC. O/A PARADISE EDEN SPA & SALON 25 Projected Income Statement- Year 1 Projected Income Statement - 1st Year- 12 Months Paradise Eden Spa & Salon- Period/Month: Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Totals Sales Sales Total Sales $136,500.00 $156,975.00 $133,428.75 $113,414.44 $124,755.88 $137,231.47 $150,954.62 $166,050.08 $157,747.57 $149,860.20 $149,860.20 $149,860.20 $1,726,638.39 $136,500.00 $156,975.00 $133,428.75 $113,414.44 $124,755.88 $137,231.47 $150,954.62 $166,050.08 $157,747.57 $149,860.20 $149,860.20 $149,860.20 $1,726,638.39 Less Cost of Goods Sold Materials $40,950.00 $47,092.50 $40,028.63 $34,024.33 $37,426.76 $41,169.44 $45,286.38 $49,815.02 $47,324.27 $44,958.06 Total Cost of Goods Sold $40,950.00 $47,092.50 $40,028.63 $34,024.33 $37,426.76 $41,169.44 $45,286.38 Gross Profit $95,550.00 $109,882.50 $93,400.13 $79,390.11 $87,329.12 $96,062.03 $105,668.23 $116,235.05 $110,423.30 $104,902.14 $104,902.14 $104,902.14 $1,208,646.87 $49,815.02 $47,324.27 $44,958.06 $44,958.06 $44,958.06 $517,991.52 $44,958.06 $44,958.06 $517,991.52 Operating Expenses Management Salaries $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $48,000.00 $72,600.00 $80,790.00 $71,371.50 $63,365.78 $67,902.35 $72,892.59 $78,381.85 $84,420.03 $81,099.03 $77,944.08 $77,944.08 $77,944.08 $906,655.36 Rent (including TMI) $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $88,140.00 Utlities $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $24,000.00 Insurance $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $30,000.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $600.00 Telephone & Internet $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $1,440.00 Office supplies $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $1,200.00 Salaries and commissions payable Travel Advertising/Marketing $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $9,000.00 Loan Interest and bank charges (Assumed @ 6.00%) $1,950.00 $1,950.00 $1,950.00 $1,950.00 $1,950.00 $1,950.00 $1,950.00 $1,950.00 $1,950.00 $1,950.00 $1,950.00 $1,950.00 $23,400.00 Depreciation $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $39,999.96 Total Operating Expenses Operating Income $94,748.33 $102,938.33 $93,519.83 $85,514.11 $90,050.68 $95,040.92 $100,530.18 $106,568.36 $103,247.36 $100,092.41 $100,092.41 $100,092.41 $1,172,435.32 $801.67 $6,944.17 -$119.71 -$6,124.00 -$2,721.57 - ONTARIO INC. O/A PARADISE EDEN SPA & SALON $1,021.11 $5,138.05 $9,666.69 $7,175.94 $4,809.73 $4,809.73 $4,809.73 $36,211.56 26 Projected Income Statement- Year 2 Projected Income Statement - 2nd Year- 12 Months Paradise Eden Spa & Salon- Period/Month: Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Totals Sales Sales Total Sales $142,367.00 $163,722.05 $139,163.74 $118,289.18 $130,118.10 $143,129.91 $157,442.90 $173,187.19 $164,527.83 $156,301.44 $156,301.44 $156,301.44 $1,800,852.22 $142,367.00 $163,722.05 $139,163.74 $118,289.18 $130,118.10 $143,129.91 $157,442.90 $173,187.19 $164,527.83 $156,301.44 $156,301.44 $156,301.44 $1,800,852.22 Less Cost of Goods Sold Materials $42,710.10 $49,116.62 $41,749.12 $35,486.75 $39,035.43 $42,938.97 $47,232.87 $51,956.16 $49,358.35 $46,890.43 $46,890.43 $46,890.43 $540,255.67 Total Cost of Goods Sold $42,710.10 $49,116.62 $41,749.12 $35,486.75 $39,035.43 $42,938.97 $47,232.87 $51,956.16 $49,358.35 $46,890.43 $46,890.43 $46,890.43 $540,255.67 Gross Profit $99,656.90 $114,605.44 $97,414.62 $82,802.43 $91,082.67 $100,190.94 $110,210.03 $121,231.03 $115,169.48 $109,411.01 $109,411.01 $109,411.01 $1,260,596.55 Operating Expenses Management Salaries Salaries and commissions payable $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $60,000.00 $74,946.80 $83,488.82 $73,665.50 $65,315.67 $70,047.24 $75,251.96 $80,977.16 $87,274.88 $83,811.13 $80,520.58 $80,520.58 $80,520.58 $936,340.89 Rent (including TMI) $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $7,345.00 $88,140.00 Utlities $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $24,000.00 Insurance $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $30,000.00 Travel $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $600.00 Telephone & Internet $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $1,440.00 Office supplies $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $1,200.00 Advertising/Marketing $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $750.00 $9,000.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $1,700.00 $20,400.00 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $3,333.33 $39,999.96 Loan Interest and bank charges (Assumed @ 6.00%) Depreciation Total Operating Expenses Operating Income $97,845.13 $106,387.15 $96,563.83 $88,214.00 $92,945.57 $98,150.29 $103,875.49 $110,173.21 $106,709.46 $103,418.91 $103,418.91 $103,418.91 $1,211,120.85 $1,811.77 $8,218.28 $850.79 -$5,411.58 -$1,862.90 - ONTARIO INC. O/A PARADISE EDEN SPA & SALON $2,040.64 $6,334.54 $11,057.83 $8,460.02 $5,992.10 $5,992.10 $5,992.10 $49,475.71 27