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Business Plan

The work in progress can be found on Google Docs.

The general outline is taken from: http://web.sba.gov/busplantemplate/BizPlanStart.cfm

Further material was taken from the MakeIt Labs business plan at http://www.wpi.edu/Pubs/E-project/Available/E-project-122210-154836/unrestricted/Founding_a_Hackerspace.pdf with the author's permission.

I'm the author of the business plan portion of the paper. You're free to copy material from it, but you should also be aware it was done before the founding of the space, and I consider it to be woefully out of date. If you'd like to talk sometime, I'd be more than happy to fill you in. Good luck! — Joseph Schlesinger

Executive Summary

This section should:

  • Be written last.
  • Provide an enthusiastic snapshot of your company, explaining who you are, what you do and why.
  • Be less than 2 pages in length.

After reviewing this section the reader should:

  • Want to learn more about your business.
  • Have a basic understanding about your company.

Draft:

Business Description and Vision

This section should include:

  • Mission statement (business purpose).
  • Company vision (statement about company growth).
  • Business goals and objectives.
  • Brief history of the business.
  • List of key company principals.

After reviewing this section the reader should know:

  • Who the business is and what it stands for.
  • Your perception of the company’s growth & potential.
  • Specific goals and objectives of the business.
  • Background information about the company.

Draft:

Definition of the Market

This section should:

  • Describe your business industry and outlook.
  • Define the critical needs of your perceived or existing market.
  • Identify your target market.
  • Provide a general profile of your targeted clients.
  • Describe what share of the market you currently have and/or anticipate.

After reviewing this section the reader should know:

  • Basic information about the industry you operate in and the customer needs you are fulfilling.
  • The scope and share of your business market, as well as who your target customers are.

Draft:

Description of Products and Services

This section should:

  • Specifically describe all of your products and services.
  • Explain how your products and services are competitive.
  • If applicable, reference a picture or brochure of your products, which would be included in the plan’s appendix.

After reviewing this section the reader should know:

  • Why you are in business.
  • What your products and services are and how much they sell for.
  • How and why your products & services are competitive.

Draft:

Organization and Management

This section should:

  • Provide a description of how your company is organized as well as an organization chart, if available.
  • Describe the legal structure of your business (proprietorship, partnership, corporation, etc.).
  • Identify necessary or special licenses and/or permits your business operates with.
  • Provide a brief bio description of key managers within the company.

After reviewing this section the reader should know:

  • The legal form of ownership for your business.
  • Who the leaders are in your business as well as their roles.
  • The general flow of operations within the firm.

Draft:

Marketing and Sales Strategy

This section should:

  • Identify and describe your market – who your customers are and what the demand is for your products & services.
  • Describe your channels of distribution.
  • Explain your sales strategy, specific to pricing, promotion, products and place (4Ps).

After reviewing this section the reader should know:

  • Who your market is and how you will reach it.
  • How your company will apply pricing, promotion, product diversification and channel distribution to sell your products and services competitively.

Draft:

Financial Management

This section should include:

  • For a New Business
    • Estimate of start-up costs.
    • Projected balance sheet (1 year forward).
    • Projected income statement (1 year forward).
    • Projected cash flow statement (12 months forward).
  • For an Existing Business
    • Balance sheets (last 3 years).
    • Income statements (last 3 years).
    • Cash flow statement (12 months).
  • If Applying for a Loan (in addition to the above)
    • Current personal financial statement on each principal.
    • Federal tax return for prior year.

After reviewing this section the reader should:

  • Have a good understanding regarding the financial capacity and/or projections for your company.

Draft:

Draft Business Plan Starting From MakeIt Labs

Executive Summary

MakeIt Labs LLC. is an open-access workshop that will serve people in the North Boston/Merrimack Valley area. We will provide the equipment, classes and personal help to a membership community that allows them to prototype and develop any idea they can imagine. We are targeting people who have an interest in hands-on skills in a variety of design and manufacturing areas. We focus on developing and fostering a creative community of hands-on individuals, and providing them with the tools they need to succeed. The location will have equipment for welding, metalworking, woodworking, plastic-working, electronics, programming and many other skill sets. There will be regular classes over these areas that will train people to safely work with this equipment and how it can be used to realize their ideas. Owner Joseph Schlesinger is a Systems and Electrical Engineer with a long history of invention and self- started entrepreneurship. He has personal skills in machining, welding, electronics design and programming which he has used to complete numerous cross-disciplinary projects. He has started and run a Convenience store, businesses in Web Design, Defense/Aerospace Communications and Online Alternative Currency Trading. Invention, prototyping and teaching has been a life-long passion of the owner, and this business will allow him to utilize his skill set and passions into a successful venture. There will be a heavy focus on community. It is the belief and experience of the owner that a strong, active community fosters excitement, passion and innovation that drives members to both stay with the business and come out satisfied with continual completion of projects. Funding will come primarily from membership fees collected by those interested, and from classes held on various topics. Continual investment from the owner to make up initial revenue shortfalls. The business will eventually seek non-profit status and then donations from area business and equipment comes largely from the existing stock of the owner and initial generous members.

Company Summary

MakeIt Labs is an Open-Access workshop opening in Lowell, MA. MakeIt Labs is founded on the idea that designing and building your own ideas provides a level of satisfaction unmatched by many consumer activities. MakeIt Labs seeks to capitalize upon this by offering its members the equipment, facilities and knowledge necessary to build their ideas and projects of interest.

Keys to Success:

1.1 Competitive Advantage

The lack of similar locations in an area of the country known for its creative and inventive spirit offers a large, pent up demand for this service. Centralized control offers key competitive advantages over other similar spaces. Almost all similar businesses in this field are structured through a communal, non-profit structure. While the idea is to keep the space as free and creativity-fostering as possible, this structure slows capital acquisition, misallocates resources, breeds political infighting and leads to long reaction times to problems that arise. Because MakeIt Labs is structured as a business, and not a communally-organized space, there will be a greater emphasis on increasing revenue. Where research shows that many locations with a similar purpose shy away from increasing revenue for ideological reasons, and to avoid the political infighting that comes with money, the business-organized ownership of MakeIt Labs uses this to its advantage. This income can be effectively re-invested into the kinds of higher-cost, high-value equipment that attracts users. Our main keys to success include:

  • Creation and maintenance of a strong, vibrant community
  • Utilize existing online communities for marketing
  • Variety of high-value tools otherwise inaccessible to customers
  • Availability of proper training
  • Flexible access and use of facilities
  • Providing a work area free from intellectual property demands

1.2 Mission

MakeIt Labs offers a productive environment that nurtures innovation. MakeIt Labs will provide the equipment, space and knowledge to attract the area's leading inventors, citizen scientists and general innovators. We offer classes and events that entice new members, while expanding into new areas to keep experienced members coming back, all while fostering a community that cements members into long-term bonds centered on MakeIt Labs.

1.3 Objectives

The objectives of MakeIt Labs are the following:

  • Achieve self-sustaining status within the first 6 months
  • Provide a rich community of innovation
  • Encourage collaboration among local innovators

Operational Strategy

2.1 Company Ownership

MakeIt Labs is a privately owned limited liability corporation operated by and under the sole ownership of Joseph Schlesinger.

2.2 Management Team

MakeIt Labs is run solely by Joseph Schlesinger, its founder. Joseph is a life-long hobbyist and maker who has long identified strongly with the culture to which MakeIt Labs will be targeting. The creation of MakeIt Labs comes after Joseph searched for a similar space in the area, asking many of the people that would be interested in such a space, and found no such thing. Also being a life-long entrepreneur with several ventures under his belt, he decided to start MakeIt Labs to satisfy both his own personal need for a workshop, and to provide a way to share his passion for creation. His C.V is listed in the appendix.

2.3 Services and Activities

MakeIt Labs will offer services to entice both existing and potential area innovators. MakeIt Labs will provide design, engineering and fabrication instruction in addition to the use of its facilities.

2.3.1 Membership

Membership offers people the chance to have 24/7 access to the MakeIt Labs facilities. Members will receive discounts on all classes, have the ability to store their projects in on-site lockers and be allowed to come relax with other members at MakeIt Labs. Membership allows people who do not have the tools, space or support to come anytime and be involved in an active community of innovators. No formal qualifications are necessary, beyond a mandatory liability waiver and payment of membership. There will be two tiers of membership: regular and student/out-of-work. The idea is that students and those who are currently out of work, while able to contribute a great deal of enthusiasm and time to the MakeIt community, aren’t able to provide the financial contributions that full members would be, and should be given lenience, as well as the fact that a reduced membership provides more income than no membership whatsoever.

2.3.2 Classes

MakeIt Labs will offer classes in large number of areas. Classes will be offered to both members (at a discount) and non-members (to draw interested people into membership). Instructors will be chosen on a class-by-class basis both from the member pool and the surrounding area based on their knowledge of the subject matter, experience in the field and ability to effectively teach. MakeIt Labs will focus on teaching the needed information in a casual, hands-on environment that adheres to its culture of strict safety. Classes will be offered both on a regularly scheduled group basis and special individual cases. These classes may or may not require material use charges. Fees for the classes will be based on a combination space usage, instructor, and material fees. Base cost of a class is $20 per session per person. This serves as a base level of income for MakeIt, to recuperate costs for running the event in the facility. This cost will be waived for members, as an incentive for membership. The rest of a cost of a class goes towards covering paying an instructor and/or any consumables used in the process of a class. Classes will be chosen based on the expected level of interest. The courses taught can be broken down into three basic types:

2.3.2.1 Design/Engineering

Design and engineering courses will focus on the planning and theoretical aspect of making things. These courses will provide the overarching concepts that will aid the attendees in analyzing how best to realize their projects, while practicing these skills with free-form hands-on exercises. They may either be short one-session classes, or multiple-session, multi-week courses depending on the complexity of the material. An example of this type of class would be Introduction to Micro-controllers

2.3.2.2 Safety

Because of the inherently dangerous nature of some of equipment at MakeIt Labs, some will require mandatory safety courses before use is allowed. These courses will be short, one-session introductory courses that focus on proper operation, cleaning and maintenance on either individual pieces or groups of equipment. They will require people knowledgeable in the field. Those who take these courses should at their end feel confident that they can safely begin to use the equipment for their projects. An example of this type of class would be Basics of Arc Welding. While no safety ‘course’ will be required for general membership, a brief overview of the safety policy of the lab will be given upon attaining membership.

2.3.2.3 Fabrication

Fabrication courses will offer advanced hands-on techniques and skills that go beyond the minimal level of operation taught by safety courses. These will require a master of the field to teach. They will allow members to begin to fully realize the potential that the area of the course offers. These courses will usually run multiple sessions over the span of several weeks. Students should feel increased confidence at the end of the course that they can use their new skills to tackle a wider variety of projects. An example of this type of class would be TIG Welding for Bicycles.

Market Analysis Summary

MakeIt Labs provides a service that is critically lacking in an area with large, pent-up demand. An initial small advertising campaign attracted dozens of potential customers in days. Completing projects is a satisfying experience, as any do-it-yourselfer can attest. Today's typical consumer lifestyle leaves many without much realization of this joy. Local innovators with projects that lack the proper equipment or space are often forced to either make due, leading to lack-luster results, or put off projects till 'some day'. The most many people can do is dream. There is no doubt that innovative types would flock at the chance to work on interesting projects, learn valuable new skills and collaborate with like-minded people.

3.1 Market Segmentation

MakeIt Labs has determined that a large portion of potential members will come within a one hour travel time, estimating that 80% will come from within a 30- minutes travel time. The majority of interested people are expected to be people in the engineering profession. We will target engineers, students, artists and people in hands-on fields within 30-minutes of travel. We do not expect people to travel more than an hour to work on projects or take classes. Research into other hackerspaces shows that these are the most prevalent audiences. Age and gender vary wildly, with most coming from an engineering or artistic background. The area is host to an enormous engineering base. Major engineering employers within a 30 minute radius include, but not limited to: IBM, iRobot, Sun, Cisco, Intel, Adobe, Oracle, MIT Lincoln Labs and MITRE. Any one of these is filled with engineers without the multi-disciplinary facilities or freedom to create. Lowell is also home to a major engineering college, UMass Lowell. Lowell is also the center of a thriving art community that would enjoy exploring and creating with the equipment and skills that MakeIt Labs offers. Querying online social networking websites for users with related interests within this travel distance reveals 70,000+ people in the target market.

3.2 Service Business Analysis

MakeIt Labs was started because the founder attempted to find something similar and couldn't find anything like it. There is no business in the area that offers a wide variety of hands-on classes in a casual environment, or offers the space and/or equipment to work on projects, let alone on a 24/7 basis. While there are clubs for specific interests (Ham Radio, RC models), there is no place in the area for general inventors and innovators to collaborate and create together.

3.3 Competition

Little competition exists for this market in the target area. Vocational schools in the area serve at the secondary-education level and don't offer full use of their facilities. Colleges are limited to a narrow band of students, and don't make their equipment or facilities available. While local technical colleges offer the classes for the skills some may require, they are often targeted at employment. With this, the focus is on teaching certification rather than necessarily then focusing on practical skills. Those purely interested in the creative process are often dissuaded by the high cost and certification-focus of these classes. Employers often discourage working on personal projects at work in order to avoid liability issues. Even when employers allow this kind of activity, employees will often avoid using their facilities to avoid potential intellectual property issues down the line. Within our target market area of 30-minutes of travel time, no other direct competitors exist. The nearest competition is located in Boston, MA, nearly an hour away. For an active hobbyist, it is expected that this travel time is considered too much for a membership. The largest threat would result from a competing hackerspace opening in the nearby area. Because of the potency of bandwagon effect when it comes to hackerspace communities, the strategy is to firmly cement a strong MakeIt Labs-centric community.

3.4 Marketing Strategy

We will use established networks and organizations to spread the word, including but not limited to professional engineering organizations such as IEEE and ASME, hobbyist clubs such as RC and Ham radio clubs, online inventors, 'Maker', 'DIY' and 'hackerspace' communities, both online and offline. The use of the label ‘hackerspace’ however, should be handled with care. While there is a strong community built up around the use of the term, the prefix of ‘hacker’ can give negative connotations to those who aren’t aware of its meaning. Therefore, the term should be used thoughtfully and selectively when advertising the purpose of the space.

3.4.1 Online Social Networks

Marketing will focus on targeting these communities as tightly as possible. Online advertising will be a key component. Using online social networks, advertisements can be delivered directly to people who already express interest in these types of activities. A brief, tightly-budgeted, limited-focus 3-day ad campaign on the social networking site Facebook.com attracted over two dozen interested people, 2 of which signed up almost immediately. It is believed that with a mildly expanded budget, better chosen interests, and a longer-running campaign, as well as advertising on a number of other targeted platforms, the results could be drastically improved. Initial results show that an effective initial campaign can be run on the order of $100/month. This can be achieved by focusing on only the most likely potential members, those with highly-aligned interests such as ‘hacking’ or ‘making’. As this pool becomes saturated, and revenue increases, the advertising target can be widened to less-aligned targets such as ‘welding’ or ‘programming’. Potential customers can also be advertised to via the websites they visit. Several online websites are particularly popular with people with the perquisite interests, including makezine.com, instructables.com and hackaday.com. However, these websites target a very large market geographically, unsuitable to a location-driven business. Their most effective use would be to create projects that would get posted on these sites, getting MakeIt free advertising.

3.4.2 Affiliate Program

Once sufficient interest has been generated from online advertising, and a broad enough network of customers has been established, affiliate programs can be started to recruit members. Members will be encouraged to recruit their friends by means of cash handouts upon recruitment (and payment of membership by) people they bring in. Payment will be proportional to the level of membership recruited. i.e. more paid for full members than student members.

3.4.3 Media Publicity

The idea of garage-style innovation easily captures media attention, especially when combined with demonstrable projects/inventions. Members will be actively encouraged to post the progress of their work online via the MakeIt Labs website (http://makeitlabs.com). Particularly interesting projects, especially those of media interest (green energy, etc) will have MakeIt Labs help in disseminating to the local press, whether it be newspapers, tv news, bloggers, special interest sites, etc.

3.4.4 Open Houses

MakeIt Labs will hold monthly open-house sessions where potential members will be encouraged to visit. While potential members will be encouraged to visit anytime, providing a set date for visits provides a no-stress atmosphere for people that would just want to “stop by” without having to announce beforehand. These open houses will be of a casual nature, and not require extensive planning, preparation or cost. They merely serve as an opportunity for people interested to satisfy their curiosity. These open houses will also provide a platform for members to show off their latest projects, providing the deadline that some members will need to motivate themselves.

3.5 Location

The location of the facility was chosen based on access to necessary services and economy. A loading bay door was considered essential for means of carrying in/out heavy equipment and supplies. A door which could have an electronic access lock attached was also considered mandatory. While the preferred layout would have had two separate locations, one for office/electronics/computer work and another for dirtier metal/carpentry/plastics work, for reasons of economy this was not possible in the first location. It was considered more important to have a location that could accommodate the ‘dirtier’ activities, as this is what most people lack in their own condos, apartment, etc. As far as nearby services, it was essential that the location be located nearby to hardware, general and food stores. The current location is down the street from a Target, less than a mile from a Lowes and has a 24/7 Walgreens and a dozen or so restaurants in the area, many open late at night for those night-owl inventors. It is also a quarter mile from the Route 3 Lowell Connector, the major thoroughfare in and out of the city. The street is in the industrial heart of Lowell, and boasts a steel foundry, rapid prototyping business, scrap yard, sheet metal fabrication show, and several automotive and welding businesses, opening up potential teaching and partnership opportunities.

3.6 Competitive Edge

Targeted customers currently spend their time in their making-centric hobbies and projects. What MakeIt Labs provides them, beyond equipment and a knowledge base, is the ability to hang out and interact with other people with similar interests. The key to locking in a customer base will be focusing on establishing a strong MakeIt Labs-centric community. Bandwagon effect applies strongly to hackerspaces. Interesting people producing interesting projects attracts more people of the same type. Being the first open-access workshop in the area provides a firm foundation that potential competition will find hard to overcome. MakeIt Labs will achieve this by focusing on providing the infrastructure for projects and collaboration. Research of other similar ‘hackerspaces’ reveals that projects are largely self-formed by the members. Therefore, MakeIt Labs will focus on providing the proper environment. Collaboration area will set up with a couch, whiteboards, computers, projector, snacks and drinks and high-speed wireless internet access. The goal will be to make MakeIt Labs centric part of the creation experience to its members. All of these items are already owned by the owner, and will be transferred to MakeIt as part of the setup process, minimizing startup cost. Additional equipment, along with replacements for broken or damaged equipment,

3.7 Risk Factors

This business poses certain risk factors:

  • Sole Ownership
  • Liability and Safety Issues
  • Membership collection hassles

We can minimize certain risk factors by:

  • Delegating tasks to the established community
  • Fostering a culture of safety
  • Authoritative control of facilities
  • Carrying adequate insurance
  • Minimize collection costs through automated membership system
3.7.1 Sole ownership

The fact that MakeIt Labs is run by a single individual is both a key strength and a weakness. The singular point of contact and decision making leads to quick decision uniform to the overall strategy of MakeIt Labs, but leaves the business vulnerable if for some reason the owner is unavailable. Security and financial transactions are largely automated through the use of online billing and bill payment tools. This is to ensure that in the event of absence of the owner for a period of time, the space can continue to run smoothly with minimal intervention. As time progresses with MakeIt Labs, responsibilities for day-to-day operation will be delegated out amongst the more active members of the established community, either through direct election of positions by the owner, or by a more democratic process if deemed appropriate. This will help to further the sense of community within MakeIt Labs. Sole ownership will still be retained for the sake of being able to have swift, final decision making should the need arise, and to address liability/business concerns.

3.7.2 Liability and Safety Issues

MakeIt Labs possesses equipment that makes safety a key concern. Among the collection of equipment in the facility, there will be dangerous equipment that could pose a safety risk to people without the knowledge of how to use them properly. A focus will be on embedding the need for safety in the community. There will be constant reminders in all events/activities that safety is a top priority at MakeIt Labs. It will be made clear to members at multiple levels that this equipment will be off limits to those who cannot demonstrate the required safety knowledge. Safety courses will be provided by knowledgeable professionals to allow members to access this equipment. As part of the MakeIt Labs security system, multiple cameras will be in place, and gone over from time to time. It will be known to the membership that MakeIt Labs policy that anyone caught using equipment in an unauthorized or unsafe manner will be ejected from the premises and not allowed to return. This practice will be enforced by the owner. The membership will be made aware of the transgression, and new codes can be changed as soon as an issue occurs so the member will not be permitted access. These systems are part of the initial setup cost, and require no further purchases beyond routine repair and replacement The aspect that will most influence safety at MakeIt will be establishing a culture of safety. Members will be reminded from the beginning that safety takes priority over everything at MakeIt. Warnings will be posted around dangerous equipment reminded members of their needs for proper knowledge and caution before and during operation. Beyond this, liability waivers and insurance will be a key component to protecting MakeIt Labs from litigation should an accident occur. All members will be required to sign a statement understanding the MakeIt Labs safety policy, and disavowing MakeIt Labs of any and all liability from any harm to one’s self or property while performing MakeIt-related actions.

3.7.3 Membership Dues Collection

One of the issues with running a membership-based income model is the time-consuming process of collecting membership fees. Once membership is initially approved, the system will be entirely automated. Membership fees will be collected by a 3rd party online payment collection and the results transmitted to the MakeIt Labs security computer system. Access to the building is controlled by an electronic lock, also controlled by the same computer system. When membership expires, the code used by the member will cease working, requiring them to pay to re-activate it.

Financial Plan

4.1 Start-up Funding

The start-up expenses for MakeIt Labs are minimal. A number of tools are already largely owned by the founder, and tools from interested parties have been offered for use free of cost to MakeIt Labs. Both initial capital expenses and monthly deficits will be covered by the founder until break-even has been achieved.

4.2 Important Assumptions

An important aspect of the operating model is that costs are highly scaled to membership levels. The two largest cost factors, leasing and energy consumption, are directly proportional to membership levels. Long-term capital investment is almost non-dependent on the membership size targeted for the initial growth period. This flexibility allows the business to scale its costs dynamically as membership revenue fluctuates, providing a resilient business model. As the shop and its use is the primary interest of the owner, funds will be directed towards growth and expansion of the shop. After the initial break-even period, there is no foreseeable need for outside funding. Additionally, while it is believed that the business is ripe for franchising opportunities, this is not part of the initial business plan. Effort will be instead be focused on creating a successful enterprise and lab space for the founder. The reasoning for having it remain for profit is two-fold: control and options. The eventual goal of is for it to later service as an incubation chamber for later business ideas and projects of the founder, as well as any that may crop up as a result of the community established.

To keep operating costs low, accounting will be handled largely by the owner. This is also another reason why an LLC was chosen. Its simplified tax structure makes it easy for the owner to do his own accounting, keeping the costs of outside accounting minimal. Little to no legal expenses are anticipated beyond the initial setup fees. Because of this, the monthly budget for legal and accounting fees will be carried from month-to-month creating a slush fund for unforeseen needs, and will accumulate for a time when it is needed. Given the size of the facility, the need for other 3rd party services such as janitorial are eliminated.

4.4 Breakdown of Monthly Expenses

Rent – Covers the cost of leasing the facilities. Includes ‘triple net’ real estate costs such as grounds maintenance, essential repairs to the building, plowing, etc. Does not cover infrastructure improvements. Internet – Cover the cost of internet service. Does not cover phone or television (not needed). Utilities – Covers the cost of electricity (including that involved in cooling) and heating. Costs are projected based on talks with other tenants in nearby units. Equipment Purchase – Covers the cost of both purchasing new equipment and replacing or repairing damaged equipment and infrastructure upgrades. Insurance – Covers the cost of insuring the business from property lost due to theft, and liability coverage against members. Legal/Accounting/Etc – Covers the needed end-of-year accounting assistance, Also covers unforeseen legal needs. Monthly budget for legal and accounting fees will be carried from month-to-month creating a slush fund for unforeseen needs, and larger expenses like the end-of-year tax preparation. Maintenance – Covers miscellaneous unforeseen expenses related to keeping the place running. Advertising – Covers the cost of advertising the business. Funds will initially mostly be consumed by online advertising, but maybe later include publicity stunts, contests and travel to relevant events/conferences.

Appendix A. – Startup Costs

Provided by Owner Value Cost Couch 400 0 Drill Press 200 0 Desks 300 0 Oscilloscope 300 0 Function Generator 200 0 Power supply 200 0 Mini-Fridge 150 0 Computers 500 0 Monitors 500 0 Shelving 160 0 Workbench 100 0 Chairs 50 0 Small Tables 20 0 Printer 100 0 Total 3180 0

Acquired for Free Value Cost Welder 200 0 Drill Press 300 0 Microwaves 200 0 Workbenches 300 0 Chairs 150 0 Air Conditioner 250 0 Stereo 50 0 Total 1450 0

Purchased Value Cost Shelving 300 300 Paint 100 100 Painting supplies 75 75 Toiletries 20 20 Cleaning supplies 30 30 Metal lockers 20 20 Air Conditioner Installation 250 250 Safety/Surveillance 300 300 Legal Setup 800 800 Total 1895 1895

Grand Total Value Cost 6525 1895

Appendix B. – Cash Flow Analysis

Appendix C. - Projected Operational Earnings

Appendix D. – Sensitivity Analysis - Projected Worst-Case Operational Earnings