Biodiesel Business Financial Plan

l pabiodiesel financial plan Start-up Expenses| Â  | Land to buy| Â  | Office to buy| Â  | Renovation expenses| Â  | Design works| $10 000 | Assembly operations| $200 000 | Placing into operation| $53 000 | Oil processing equipment (incl. storage and loading)| $100 000 | Seed storage equipment (incl. installation)| $350 000 | Glycerol purification equipment (including installation)| $0 000 | Tanks| $100 000 | Biodiesel production equipment (incl. delivery and installation )| $250 000 | Utility network| $000 |Advertising/Promotion| $5 000 | Land leasing| $0 | Raw materials (1 quarter of operations)| $660 000 | Salaries| $353 000 | Biodiesel production costs (chemicals, utilities, maintenance for 1 quarter) | $84 000 | Rent | $0 | Total Start-up Expenses| $000 | | Â  | Start-up Assets Needed| Â  | Cash Balance on Starting Date| Â  | Start-up Inventory| $0 | Other Current Assets| $0 | Total Current Assets| $0 | Long-term Assets| $0 | Total Assets| $0 | Total Requirements| $3 095 000 | Sales Forecast|Sales| 2007| Â  | 2008| Â  | 2009| Â  | 2010| Â  | 2011| Â  | Price per ton| Sum| Price per ton| Sum| Price per ton| Sum| Price per ton| Sum| Price per ton| Sum| Biodiesel| Â  | $2 800 000 | $700 | Â  | Â  | $2 800 000 | Â  | $2 800 000 | $700 | $ | Glycerol| Â  | $280 000 | $700 | $280 000 | $700 | $280 000 | Â  | $280 000 | $0 | $280 000 | Seeds| Â  | $0 | $220 | Â  | $220 | $0 | Â  | $0 | $220 | $0 | Press cake| $180 | $1 440 000 | $180 | $1 440 000 | $180 | $1 440 000 | $180 | $1 440 000 | $180 | $1 440 000 | Total Sales| Â  | $4 520 000 | Â  | $4 520 000 | Â  | $4 520 000 | Â  | $4 520 000 | Â  | $4 520 000 | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  |Direct Cost of Sales| Â  | 2006| Â  | 2007| Â  | 2008| Â  | 2009| Â  | 2010| Seeds| $220 | $2 640 000 | $220 | Â  | $220 | $2 640 000 | $220 | Â  | Â  | Â  | Oil| $600 | $0 | $600 | $0 | $600 | $0 | $600 | $0 | 600 | $0 | Subtotal Direct Cost of Sales| Â  | $2 640 000 | Â  | $2 640 000 | Â  | $2 640 000 | Â  | $2 640 000 | Â  | $2 640 000 | Sales and costs in tons| Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Biodiesel| Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Â  | Glycerol| $700 | 400| $700 | 400| $700 | 400| $700 | 400| $700 | 400| Seeds from own farm| $220 | Â  | $220 | Â  | $220 | Â  | $220 | Â  | $220 | Â  | Press cake| $180 | Â  | $180 | 8 000| $180 | 8 000| $180 | 8 000| $180 | 8 000| Total sales, ton| Â  | Â  | Â  | 12 400| Â  | 12 400| Â  | 12 400| Â  | 12 400| Procurement of raw materials| Â  | Â  | Â  | Â  | Â  | Â  | 0| Â  | 0| Â  | Seeds| $220 | 12 000| $220 | 12 000| $220 | Â  | $220 | 12 000| $220 | 12 000| Oil| $600 | Â  | $600 | Â  | $600 | Â  | $600 | Â  | $600 | Â  | Total, raw materials, ton| Â  | Â  | Â  | 12 000| Â  | Â  | Â  | 12 000| Â  | 12 000| Personnel Plan| Daily wage| 2007| 2008| 2009| 2010| 2011| Director general| $100 | $24 000 | $24 000 | $ 24 000 | $24 000 | $24 000 | Production and procurement director| Â  | Â  | $24 000 | $24 000 | $24 000 | Â  | Farm supervisor| Â  | Â  | $24 000 | $24 000 | $24 000 | Â  | Sales manager| Â  | Â  | Â  | Â  | Â  | Â  | Controller| Â  | Â  | Â  | Â  | Â  | Â  | Chief Technologist| $80 | Â  | $19 200 | $19 200 | Â  | Â  | Secretary| $56 | Â  | $13 440 | $13 440 | Â  | Â  | Operators, production, 5 employees | $56 | $67 200 | $67 200 | $67 200 $67 200 | Â  | Laboratory technician, 1 employee | Â  | $13 440 | $13 440 | $13 440 | $13 440 | $13 440 | Farming, 5 employee| Â  | $67 200 | Â  | $67 200 | $67 200 | $67 200 | Drivers, 2 employee| $56 | $26 880 | Â  | $26 880 | $26 880 | $26 880 | Electrical fitter| $56 | $13 440 | Â  | $13 440 | $13 440 | $13 440 | Storeman, 2 employee| $56 | $26 880 | $26 880 | $26 880 | $26 880 | $26 880 | Total Payroll| Â  | $353 000 | $353 000 | $353 000 | $353 000 | $353 000 | Production headcount| Â  | 5| 5| 5| 5| 5| ROI Ana lysis| 2007| 2008| 2009| 2010| 2011| Sales| $4 520 000 | $4 520 000 | $4 520 000 | $4 520 000 | $4 520 000 | Cost of Sales| Â  | Â  | $3 326 000 | $3 326 000 | $3 326 000 | Gross Margin| $1 186 000 | $1 194 000 | $1 194 000 | $1 194 000 | $1 194 000 | Gross Margin %| 26. 24%| 26. 42%| 26. 42%| 26. 42%| 26. 2%| Operating Expenses| $434 667 | $101 667 | $101 667 | $101 667 | $121 667 | Operating Income| $751 333 | Â  | Â  | $1 092 333 | $1 072 333 | Net Income| $470 283 | Â  | Â  | $708 983 | $750 633 | Net Income to investor| $244 639 | $368 809 | $368 809 | Â  | Â  | Current Assets| $3 029 283 | $3 804 933 | $4 339 917 | $5 115 567 | $5 137 867 | Long-term Assets| $843 333 | $776 667 | $710 000 | $643 333 | $576 667 | Long-term Liabilities| $795 000 | $795 000 | $795 000 | $795 000 | $0 | Equity| $3 077 617 | $3 786 600 | $4 254 917 | $4 963 900 | $5 714 533 | ROE| 0. 15| 0. 19| 0. 17| 0. 14| 0. 13| ROI| 0. 11| 0. 16| 0. 16| 0. 16| 0. 17| Shares offered to investor| 52. 2%| Â  | Â  | Â  | Â  | Investor financing| 74. 31%| Â  | Â  | Â  | Â  | Loan financing| 25. 69%| Â  | Â  | Â  | Â  | Pro Forma Profit and Loss| | 2007| 2008| 2009| 2010| 2011| Sales| $4 520 000 | $4 520 000 | $4 520 000 | $4 520 000 | $4 520 000 | Cost of raw materials| $2 640 000 | Â  | Â  | $2 640 000 | $2 640 000 | Farm maintenance (fuel, fertilizer, etc)| $5 000 | $5 000 | $5 000 | $5 000 | $5 000 | Production Payroll| $353 000 | $353 000 | $353 000 | $353 000 | $353 000 | Methanol| Â  | Â  | Â  | Â  | Â  | Potassium hydroxide| $8 000 | $8 000 | $8 000 | Â  | $8 000 | Utilities| $80 000 | $80 000 | $80 000 | Â  | $80 000 | Equipment Maintenance| $8 000 | $0 | $0 | Â  | $0 |Cost of Goods Sold| $3 334 000 | $3 326 000 | $3 326 000 | $3 326 000 | $3 326 000 | Gross Margin| $1 186 000 | $1 194 000 | $1 194 000 | $1 194 000 | $1 194 000 | Gross Margin %| 26. 24%| 26. 42%| 26. 42%| 26. 42%| 26. 42%| Other Expenses: | Â  | Â  | Â  | Â  | Â  | Design works| $10 0 00 | $0 | Â  | $0 | $0 | Renovation expenses| $100 000 | Â  | Â  | Â  | $20 000 | Assembly operations| Â  | Â  | $10 000 | $10 000 | $10 000 | Placing into operation| $53 000 | $5 000 | $5 000 | $5 000 | $5 000 | Advertising/Promotion| $5 000 | $20 000 | $20 000 | $20 000 | $20 000 | Depreciation (service life 12 years)| $66 667 | $66 667 | $66 667 | $66 667 | $66 667 | Land leasing| $0 | $0 | $0 | $0 | $0 | Rent| $0 | $0 | $0 | $0 | $0 |Total Other expenses| $434 667 | $101 667 | $101 667 | $101 667 | $121 667 | Profit Before Interest and Taxes| $751 333 | $1 092 333 | $1 092 333 | $1 092 333 | $1 072 333 | Interest Expense| $79 500 | $79 500 | $79 500 | $79 500 | $0 | Taxes Incurred| $201 550 | $303 850 | $303 850 | $303 850 | $321 700 | Other Expense| Â  | Â  | Â  | Â  | Â  | Net Profit| Â  | Â  | $708 983 | $708 983 | $750 633 | Net Profit/Sales| 10. 40%| 15. 69%| 15. 69%| 15. 69%| 16. 61%| Pro Forma Cash Flow| 2007| 2008| 2009| 2010| 2011| Cash from Operations: | à ‚  | Â  | Â  | Â  | Â  | Cash Sales| $3 164 000 | $3 164 000 | Â  | Â  | Â  | Cash from Receivables| $1 356 000 | $1 356 000 | $1 356 000 | $1 356 000 | $1 356 000 | Subtotal Cash from Operations| Â  | Â  | Â  | Â  | $4 520 000 | Additional Cash Received| Â  | Â  | Â  | Â  | Â  | Sales Tax, VAT, HST/GST Received| $0 | $0 | $0 | $0 | $0 | Loan| $795 000 | $0 | $0 | $0 | $0 |New Investment Received| $2 300 000 | $0 | $0 | $0 | $0 | Subtotal Cash Received| $7 615 000 | $4 520 000 | $4 520 000 | $4 520 000 | $4 520 000 | Â  | Â  | Â  | Â  | Â  | Â  | Expenditures| 2007| 2008| 2009| 2010| 2010| Expenditures from Operations:| Â  | Â  | Â  | Â  | Â  | Salaries| Â  | Â  | Â  | Â  | $353 000 | Payment of Accounts Payable| Â  | Â  | Â  | Â  | $2 973 000 | Subtotal Spent on Operations| $3 334 000 | $3 326 000 | $3 326 000 | $3 326 000 | $3 326 000 | Â  | Â  | Â  | Â  | Â  | Â  | Additional Cash Spent| Â  | Â  | Â  | Â  | Â  | Sales Tax Paid Out| Â  | Â  | Â  | Â  | $321 700 | Principal Repayment (loan)| Â  | Â  | Â  | Â  | $795 000 | Design works| $10 000 | $0 | $0 | $0 | Â  | Renovation expenses| Â  | Â  | $0 | $0 | Â  | Assembly operations| Â  | Â  | $10 000 | $10 000 | Â  |Placing into operation| $53 000 | $5 000 | $5 000 | Â  | Â  | Advertising/Promotion| $5 000 | $20 000 | $20 000 | $20 000 | $20 000 | Land leasing| $0 | $0 | $0 | $0 | $0 | Rent| $0 | $0 | $0 | $0 | $0 | Interest Expense| $79 500 | $79 500 | $79 500 | $79 500 | $0 | Purchase Long-term Assets| Â  | Â  | Â  | $0 | $0 | Subtotal Cash Spent| Â  | Â  | Â  | $3 744 350 | $4 497 700 | Â  | Â  | Â  | Â  | Â  | Â  | Net Cash Flow| $2 788 617 | $842 317 | $842 317 | 317 | $88 967 | Cash Balance| $2 788 617 | $3 564 267 | $4 339 917 | $5 115 567 | $5 137 867 | Annual Break-even, Tons| 961. 34| 961. 34| 961. 34| 961. 34| Assumptions:| Â  | Â  | Â  | Â  | Average Per Tone Revenue| Â  | Â  | $1 130. 00 | $1 130. 00 | Average Per Tone Variable Cost| $742. 00 | $742. 00 | $742. 00 | $742. 00 | Estimated Annual Fixed Cost| Â  | Â  | $373 000 | $373 000 |