The Business plan financials and Financial section of the business plan

1. Sources and use of funds

Source of Funds:

Padma’s Lotus Water Company commenced on January 27, 2020. My start-up funding is

$100,000. Padma’s Lotus Water has been financed by the principal owner, myself, from my

personal savings. I am currently seeking additional funding in the form of a Small Business

Administration Loan. Future investors will know that I am serious and dedicated to the

success of my business as a result of the full start-up costs are coming from my personal

savings.

Use of Funds:

Capital Expenditures

Building-Rent $3,000

Plant Equipment $15,000

Blenders $50

Total Capital Expenditures $18,050

Working Capital

Purchase of Inventory $3,030

Marketing Budget $1,450

Total Working Capital $4,480

2. Plan assumptions

Sales 2020 2021 2022 Annual Growth

Product Line $Units $Units $Units Rate %

Flavored Water 2/40236 2.05/51029 2.10/64718 44.0% (2020-2021)

22.0% (2021-2022)

3. Break-even Point:

Year 1 (2020) monthly average break-even number for Padma’s Lotus Water Company is

$2,754.

Year 2 (2021) monthly average break-even number for Padma’s Lotus Water Company is

$2,754.

Year 3 (2022) quarterly average break-even number for Padma’s Lotus Water Company

is $8,261.

Year 4 (2023) quarterly average break-even number for Padma’s Lotus Water Company

is $8,238.

Year 5 (2024) yearly average break-even number for Padma’s Lotus Water Company is

$32,917.