Financial Requirements

Refer to the Pro Forma Income Statements and Cash Flow projections.

The design of the Light-Guard product has been completely financed to date from personal resources by Mr. Bright and Mr. Howe.

The total investment to date has exceeded $ 50,000 not including the Principals time.

Additional financing in the amount of $ 310,000 is required to complete the product development, to set up production and establish a marketing program.

The following is a summary of the projected first year total costs.

The above costs include all operating expenses, manufacturing labour, materials and capital equipment for engineering and production. The difference of $ 390,000 between the total costs ($700,000) and the additional financing required ($ 310,000) will be covered by revenue generated from the sale of the product in the first year.

The Light-Guard Manufacturing operations will be self-sustaining by the end of the first year.

Return to Sample Business Plan Table of Contents