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ACME BUILDERS, INC. BUSINESS PLAN 2009

Acme Builders, Inc.

John Smith

Phone 555-555-5555

3025 Cranberry Road

Any Town, UT 80000

Email: [email protected]

mailto:[email protected]


Confidentiality Agreement

The undersigned reader acknowledges that the information provided by Acme Builders, Inc. in this

business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Acme Builders, Inc.

It is acknowledged by reader that information to be furnished in this business plan is in all respects

confidential in nature, other than information which is in the public domain through other means

and that any disclosure or use of same by reader may cause serious harm or damage to Acme Builders, Inc.

Upon request, this document is to be immediately returned to Acme Builders, Inc.

___________________ Signature

___________________ Name (typed or printed)

___________________

Date

This is a business plan. It does not imply an offering of securities.

Table of Contents

Page 1

1.0 Executive Summary .................................................................................................................... 1

Chart: Highlights .......................................................................................................................... 1

1.1 Objectives .................................................................................................................................... 2

1.2 Mission .......................................................................................................................................... 2

1.3 Keys to Success ........................................................................................................................ 2

2.0 Company Summary ..................................................................................................................... 2

2.1 Company Ownership ............................................................................................................... 3

2.2 Company History ...................................................................................................................... 3

Table: Past Performance ........................................................................................................... 3

Chart: Past Performance ........................................................................................................... 5

3.0 Products ........................................................................................................................................... 5

Who uses LEED? ............................................................................................................................... 6

4.0 Market Analysis Summary ........................................................................................................ 6

4.1 Market Segmentation ............................................................................................................. 7

Household income in the United States .................................................................................. 7

Table: Market Analysis ............................................................................................................... 8

Chart: Market Analysis (Pie) .................................................................................................... 8

4.2 Target Market Segment Strategy ...................................................................................... 9

4.3 Industry Analysis ...................................................................................................................... 9

4.3.1 Competition and Buying Patterns .............................................................................. 9

5.0 Web Plan Summary ................................................................................................................... 10

5.1 Website Marketing Strategy ............................................................................................... 10

5.2 Development Requirements ............................................................................................... 10

6.0 Strategy and Implementation Summary .......................................................................... 11

6.1 SWOT Analysis ........................................................................................................................ 11

6.1.1 Strengths ........................................................................................................................... 11

6.1.2 Weaknesses ...................................................................................................................... 11

6.1.3 Opportunities ................................................................................................................... 11

6.1.4 Threats ............................................................................................................................... 12

6.2 Competitive Edge ................................................................................................................... 12

6.3 Marketing Strategy ................................................................................................................ 12

6.4 Sales Strategy ......................................................................................................................... 12

6.4.1 Sales Forecast.................................................................................................................. 13

Table of Contents

Page 2

Table: Sales Forecast ........................................................................................................... 13

Chart: Sales Monthly ............................................................................................................ 14

Chart: Sales by Year ............................................................................................................. 14

6.5 Milestones.................................................................................................................................. 15

Table: Milestones ....................................................................................................................... 15

7.0 Management Summary ............................................................................................................ 15

Table: Personnel ......................................................................................................................... 15

8.0 Financial Plan ............................................................................................................................... 16

8.1 Important Assumptions ....................................................................................................... 16

8.2 Break-even Analysis .............................................................................................................. 16

Table: Break-even Analysis .................................................................................................... 16

Chart: Break-even Analysis ................................................................................................... 17

8.3 Projected Profit and Loss ..................................................................................................... 18

Table: Profit and Loss ............................................................................................................... 18

Chart: Profit Monthly ................................................................................................................ 19

Chart: Profit Yearly .................................................................................................................... 19

Chart: Gross Margin Monthly ................................................................................................. 20

8.4 Projected Cash Flow .............................................................................................................. 21

Cash Received ................................................................................................................................. 21

Expenditures .................................................................................................................................... 22

Table: Cash Flow ........................................................................................................................ 23

Chart: Cash .................................................................................................................................. 23

Chart: Gross Margin Yearly .................................................................................................... 24

8.5 Projected Balance Sheet ...................................................................................................... 24

Table: Balance Sheet ................................................................................................................ 24

8.6 Business Ratios ....................................................................................................................... 25

Table: Ratios ................................................................................................................................ 25

Solar Hot Water System Proposal ............................................................................................... 28

5.4kW Solar Electric Grid-Tied Photovoltaic System ............................................................ 29

Wasatch Energy Engineering Home Energy Rating Certificate ........................................ 30

Wasatch Energy Engineering Energy Analysis – Strong’s Court ..................................... 31

Comfort Tech Budget Prices for Strong’s Court ..................................................................... 32

Table: Sales Forecast ....................................................................................................................... 33

Table of Contents

Page 3

Table: Profit and Loss ....................................................................................................................... 34

Table: Profit and Loss ....................................................................................................................... 34

Table: Cash Flow ................................................................................................................................ 35

Cash Received ................................................................................................................................. 35

Expenditures from Operations .................................................................................................. 36

Table: Balance Sheet ........................................................................................................................ 37

Assets .................................................................................................................................................. 37

Liabilities and Capital .................................................................................................................... 38

Table of Contents

Page 1


John Smith 555-555-5555 | 1.0 Executive Summary 1

1.0 Executive Summary

Acme Builders, Inc. is located at 3025 Cranberry Road, Any Town, UT 80000.

Acme Builders, Inc.'s primary function and the purpose of this plan is to build one of the first

Platinum LEED certified homes in Any Town, UT. John Smith is the owner and manager of the

Company and has over 15 years of high end remodeling experience as a General Contractor.

The Company is a Certified Green Builder with the United States Green Building Council

(USGBC). It has a 15 year relationship with Pella Window and Doors many view to be a very

green window company and the Company is a certified Pella Contractor, which is an integral

component of Green sustainable building.

Acme Builder Inc.'s is seeking grant funding in the amount of $121,000 to help build its

first LEED Certified Green home. Current borrowing of $200,000 in 2010 and $115,000 for

2011 will be required. Long term liability will be incurred during 2010 in the amount of

$250,000 using the land and home as collateral. The home will be used as a model to help

offset its operating costs and promotional purposes.

Acme Builders, Inc. is assuming the estimated monthly fixed cost will be $1,275, for the next

24 month period during the building and sale of its first LEED Certified Green home. Monthly

expenses are low due to the Company being run from the Builder's home office and the

monthly revenue needed to break-even is expected to be $6,377. No sales of Green homes are

expected to be recorded or built in 2009. Beginning with 2010 one Green Home is expected to

be built during this period. During 2011, two Green homes are forecast to be sold with one of

them completed and a 1/3rd deposit to build another but built in 2012. The Company becomes

profitable from sales and building of LEED Certified Green homes in 2012.

Chart: Highlights


John Smith 555-555-5555 | 2.0 Company Summary 2

1.1 Objectives

Acme Builders, Inc.'s primary function and the objective of this plan is to build one of the first

Platinum LEED certified homes in Any Town, UT. The Company will bring a needed service to

changing demographics, while promoting sustainable business and building practices together.

1.2 Mission

Acme Builders, Inc.'s Mission is to meet the needs of present home owners without

compromising the ability of future generations to meet their own needs for healthy, sustainable homes.

1.3 Keys to Success

Acme Builders, Inc.'s keys to success are:

Being a Certified Green Builder by the United States Green Building Council.

Owning an urban infill building lot to develop in a phenomenal location of down town Any

Town.

Having 15 years experience building and successfully running a high end remodeling building company.

2.0 Company Summary

Acme Builders, Inc. is located in Salt Lake, UT area and has been in the remodeling business for

15 years. We started as a remodeling Company with high income clientele. The following is

the Company's contact information:

Acme Builders, Inc.

John Smith

Phone 555-555-5555

3025 Cranberry Road

Any Town, UT 80000

Email: [email protected]

The primary function of the Company is to build one of the first Platinum LEED certified homes in Any Town.

mailto:[email protected]



2.1 Company Ownership

The Company is set up as an S-Corporation since 1995 and run out of a home office. John

Smith is the owner and manager of the Company with over 15 years of high end remodeling experience as a General Contractor.

2.2 Company History

The Company is a start up operation. Its history is from John Smith having over 15 years of

high end remodeling experience as a General Contractor - License # Dopl Utah. The Company

has been making preparations to build one of the first Platinum LEED certified homes in Any

Town.

The Company has a history of being a Certified Green Builder with the United States Green

Building Council (USGBC). It has a 15 year relationship with Pella Window and Doors; many

view to be a very green window company and the Company is a certified Pella Contractor,

which is an integral component of Green sustainable building.

Table: Past Performance

Past Performance

2006 2007 2008

Sales $263,772 $284,731 $160,555

Gross Margin $178,674 $195,127 $99,458

Gross Margin % 67.74% 68.53% 61.95%

Operating Expenses $121,963 $151,262 $122,927

Collection Period (days) 0 0 0



Balance Sheet

2006 2007 2008

Current Assets

Cash $4,190 $8,818 $18,342

Accounts Receivable $0 $0 $0

Other Current Assets $0 $6,626 $0

Total Current Assets $4,190 $15,444 $18,342

Long-term Assets

Long-term Assets $72,210 $72,210 $72,210

Accumulated Depreciation $23,642 $31,292 $33,167

Total Long-term Assets $48,568 $40,918 $39,043

Total Assets $52,758 $56,362 $57,385

Current Liabilities

Accounts Payable $0 $0 $0

Current Borrowing $0 $0 $0

Other Current Liabilities (interest

free)

$3,224 $20,128 $13,082

Total Current Liabilities $3,224 $20,128 $13,082

Long-term Liabilities $45,897 $36,234 $38,982

Total Liabilities $49,121 $56,362 $52,064

Paid-in Capital $0 $0 $0

Retained Earnings ($53,074) ($43,865) ($32,849)

Earnings $56,711 $43,865 $38,170

Total Capital $3,637 $0 $5,321

Total Capital and Liabilities $52,758 $56,362 $57,385


John Smith 555-555-5555 | 3.0 Products 5

Chart: Past Performance

3.0 Products

Acme Builders, Inc. history includes full house remodeling from foundation to turn-key. The

Company has also been doing Pella window installations from referrals through their retail

department.

Acme Builders, Inc. owns a prime building lot in the downtown area of Any Town, UT. It is a

few hundred feet from the Trax station which goes to the University Hospital and the University

of Utah, downtown Main Street, and out to South Valley with connecting buses; and soon to the

Salt Lake International Airport. There is walking distance to a large mixed variety of shops and

entertainment and a residential mix, which is the perfect location for the Company's proposed

services.

The Leadership in Energy and Environmental Design (LEED) is a registered

trademark of the U.S Green Building Council. The LEED Green Building Rating

System encourages and accelerates global adoption of sustainable green

building and development practices through the creation and implementation of

universally understood and accepted tools and performance criteria.

During the first three quarters of 2009, $15,000 was spent designing and developing building

plans for platinum LEED certified home on the Company's own building lot. The Company

plans, designs, and constructs a multi-use LEED platinum home. The first one will be a short

term vacation rental to generate income and pay for the cost to construct it, approximately

40% use. It will be a model show home and test home for prospective buyers of urban infill

green homes.


John Smith 555-555-5555 | 4.0 Market Analysis Summary 6

Approximately 15% of the model's use will be to provide a case study home for educational and training at no cost as a non-profit.

LEED is a third-party certification program and the nationally accepted benchmark for the

design, construction and operation of high performance green buildings. LEED gives building

owners and operators the tools they need to have an immediate and measurable impact on

their buildings' performance. LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health:

sustainable site development

water savings

energy efficiency

materials selection indoor environmental quality

Who uses LEED?

Architects, real estate professionals, facility managers, engineers, interior designers, landscape

architects, construction managers, lenders and government officials all use LEED to help

transform the built environment to sustainability. State and local governments across the

country are adopting LEED for public-owned and public-funded buildings; there are LEED

initiatives in federal agencies, including the Departments of Defense, Agriculture, Energy, and

State; and LEED projects are in progress in 41 different countries, including Canada, Brazil, Mexico and India.

The U.S. Green Building Council (USGBC), founded in 1993, is a non-profit trade organization

that promotes sustainability in how buildings are designed, built and operated. The USGBC is

best known for the development of the Leadership in Energy and Environmental Design (LEED)

rating system and Greenbuild, a green building conference that promotes the green building

industry, including environmentally responsible materials, sustainable architecture techniques

and public policy.

USGBC has more than 15,000 member organizations from every sector of the building industry

and works to promote buildings that are environmentally responsible, profitable and healthy

places to live and work. To achieve this it has developed a variety of programs and services,

and works closely with key industry and research organizations and federal, state and local

government agencies.

4.0 Market Analysis Summary

Acme Builders, Inc. is in the business of offering a luxury home in an urban infill lot with

smaller square footage than a large luxury suburban home, but with all the amenities. The

home is built ultra green; reducing their carbon footprint and providing for the baby

boomer market that is ready to down size but still want similar amenities and does not want to

move far away from family and friends. It's been common knowledge for quite some time the

future needs of such a large future segment. Add the growing legitimacy of global warming

spurring a brand new life enhancing market called Green Building. It is for the affluent, ready

for a life change. This is a new market with great potential. It's such a new market segment

that there is no advance competition or new market research.



4.1 Market Segmentation

Factors changing the market and business philosophy are the unstableness of the commodities

market driving the US energy needs; primarily oil and coal which are not sustainable and very polluting, damaging industries.

Developing trends are for non-polluting sustainable energies such as solar, which include

photovoltaic geothermal that perform cooling and heating; and solar water, heat pumps,

enhanced sealing and insulating techniques, and superior design and indoor air quality through mechanical and passive design. All of the above are not dependent on foreign commodities.

Also affecting market trends are the bursting bubble of the real estate market. it is creating a

need for cheaper, denser homes. A growing realization of the falling real estate prices is a need

for smaller, denser and more efficient homes. Homes that are cheaper to maintain and not

subjected to sudden unpredictable spikes in energy cost. The Company will be providing a low

cost predictable, stable energy cost home that is close to entertainment, restaurants and work.

It will be a more stable controlled home built on tangible benefits like comfort location. This reasoning will prove green building growth in the future.

Household income in the United States

From Wikipedia, the free encyclopedia

Household income is a measure of current private income commonly used by the United States

government and private institutions. To measure the income of a household, the pre-tax money

receipts of all residents over the age of 18 over a single year are combined. Most of these

receipts are in the form of wages and salaries, but many other forms of income, such as

unemployment insurance, disability, child support, periodic investment income, etc., are

included as well. The residents of the household do not have to be related to the householder

for their earnings to be considered part of the household's income. As households tend to

share a common economic fate, the use of household income remains among the most far and

widely accepted measures of income. However, the size of a household, which is commonly not

considered, creates significant distortions which offset gains or decreases in household income

and makes direct comparisons between quintiles impossible.

In 2007, the median annual household income rose 1.3% to $50,233.00 according to the

Census Bureau. The real median earnings of men who worked full time, year-round climbed

between 2006 and 2007, from $43,460 to $45,113. For women, the corresponding increase

was from $33,437 to $35,102. The median income per household member (including all

working and non-working members above the age of 14) was $26,036 in 2006. In 2006, there

were approximately 116,011,000 households in the United States. 1.93% of all households had

annual incomes exceeding $250,000. 12.3% fell below the federal poverty threshold and the

bottom 20% earned less than $19,178. The aggregate income distribution is highly

concentrated towards the top, with the top 6.37% earning roughly one third of all income, and

those with upper-middle incomes control a large though declining share of the total earned

income. Income inequality in the United States, which had decreased slowly after World War II

until 1970, began to increase in the 1970s until reaching a peak in 2006. It declined a little in

2007. Households in the top quintile, 77% of which had two or more income earners, had

incomes exceeding $91,705. Households in the mid quintile, with a mean of approximately one

income earner per household had incomes between $36,000 and $57,657. Households in the lowest quintile had incomes less than $19,178 and the majority had no income earner.

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Income

http://en.wikipedia.org/wiki/Household

http://en.wikipedia.org/wiki/Child_support

http://en.wikipedia.org/wiki/Median

http://en.wikipedia.org/wiki/United_States_Census_Bureau

http://en.wikipedia.org/wiki/Poverty_in_the_United_States

http://en.wikipedia.org/wiki/Income_inequality_in_the_United_States

http://en.wikipedia.org/wiki/World_War_II

http://en.wikipedia.org/wiki/Quintile



The following chart is shown to represent the potential market for Green homes, which is

anyone in the Fourth Fifth quadrant or above. This represents about 4/5 of the overall

population wealth that is able to afford a Green home.

Households are often divided into quintiles according to their gross income. Each quintile

represents 20%, or one fifth, of all households. Each of the quintiles represent a household

base of 22,629,000 with the exception of the 5% group who represent 5,695,000 households.

We did not show the "Lowest Fifth" group as they have no income. The total households as a

group are 113,146,000.

Table: Market Analysis

Market Analysis

2009 2010 2011 2012 2013

Potential Customers CAGR

2nd Fifth 18,500 19,055 19,627 20,216 20,822 3.00%

Middle Fifth 34,738 35,433 36,142 36,865 37,602 2.00%

Fourth Firth 55,331 55,884 56,443 57,007 57,577 1.00%

Highest Fifth 88,030 91,551 95,213 99,022 102,983 4.00%

Top 5% 157,176 161,891 166,748 171,750 176,903 3.00%

Total 353,775 363,814 374,173 384,860 395,887 2.85%

Chart: Market Analysis (Pie)


John Smith 555-555-5555 | 5.0 Web Plan Summary 9

4.2 Target Market Segment Strategy

All aspects of Acme Builders, Inc.'s plan provide a service for a change in aging demographics.

We will price competitively in the prospective markets; offering them future saving in

maintaining a healthy comfortable home for less. Effectively, we provide a Green vacation

home that is close to outdoor recreation for a conscious minded customer.

Our future services will be to design and build custom green homes on urban infill lots; and build and market green vacation homes.

4.3 Industry Analysis

Acme Builders, Inc. is in the business of remodeling homes with an emphasis on clean energy,

and sustainable building materials and practices. We build custom green homes on urban infill lots in the downtown Any Town area.

4.3.1 Competition and Buying Patterns

Since early 2008 the construction industry has been in a severe depression and the market

devastated many small and even large companies. Green building is one of the only

construction segments improving. New companies are forming and trying to distinguish their

self as experts in sustainable building. Acme Builders, Inc.'s competitors are new small custom

businesses who maybe do two or three homes a year.

Green building is a new concept and the business models are changing. A smaller more custom

approach works with changing and more diverse customer groups, especially in the upper

market when marketing to out-of-state customers.

Acme Builders, Inc. will have an internet presence with a strong informational web portal that

will help it compete.

Features and reputation will help set the Company apart from its competition.

Word of mouth also is very important for the Company's type of business and satisfied customers are a key ingredient to the Company’s success.

Acme Builders, Inc.'s Main Competitors are:

• Architectures

• Small custom builders

• Other new Green Builders

• Price, while maintaining a high level of service

The Company will be diligent in understanding and employing continuous changing technologies to lift its level of service while keeping costs down.


John Smith 555-555-5555 | 5.0 Web Plan Summary 10

5.0 Web Plan Summary

Acme Builders, Inc. will have a web portal built that will provide Energy saving tips, links to

credited energy saving company and other URLs that hold the same vision as Acme Builders,

Inc. The Company will link to other out-of-state green home customers and share their

experience with the Company's customer.

The web site will allow the Company to share and promote its green philosophy and attract new

funding sources, volunteers and customers through its website. Digital video will be added to the site for various promotional aspects of the Company's programs.

The website will also include:

Pictures and video of satisfied customers living in other green homes

Statements/testimonials from happy customers of other green homes

Links to local businesses who have given positive statements and referrals

Banner ads Link for visitors to opt in to the Acme Builders, Inc.'s email list

5.1 Website Marketing Strategy

Acme Builders, Inc. plans to use cost effective email marketing campaigns for its outreach to

prospective customers. Economical technology is available that incorporates video with email

and offers very powerful, robust and dynamic features. Another benefit is in communicating

through the use of streaming video embedded within the email. Management believes that the

use of this technology will give the Business a strong competitive edge.

5.2 Development Requirements

Acme Builders, Inc. will use a web development company to consult with and build the site.

The Company expects to spend about $1,500 to $2,000 developing a web site.

Development requirements for Acme Builders, Inc.'s enhanced Internet presence and email

campaign marketing system will incorporate an email drip campaign with video into its

marketing efforts. This technology will more effectively market to its customer and potential

customer base. The built-in analytics provide immediate feedback as to the campaigns

effectiveness and who actually viewed the message. Auto responders with a specific message can be utilized as an immediate follow-up tool.

The Business will be able to create web pages that Acme Builders, Inc.'s hosted web site simply

points to. The created web pages are easily constructed with easy to use templates. Once an

email is entered into the system, they will receive Acme Builders, Inc.'s standard welcome

email and automatically receive periodic emails that are constructed for specific marketing email drip campaigns.

This new technology (released in June of 2009) will position the organization to achieve name

recognition in front of their current market. The first thing most of us do every day is check our in box.


John Smith 555-555-5555 | 6.0 Strategy and Implementation Summary 11

6.0 Strategy and Implementation Summary

Sales strategy for Acme Builders, Inc. will be to build credibility by partnering with education

and industry to bring sustainable home comfort by building an ultra green home and providing

a place for case studies and research. The strategy will also be to use the new Green home as

a model home and potential short term rentals.

Acme Builders, Inc. will employ a strategy of developing and taking advantage of technology; developing a database of green building, potential customers and the media.

6.1 SWOT Analysis

Acme Builder Inc.'s owns an infill urban building lot in downtown Any Town with preliminary

approvals for building permits and a complete set of custom building plans to Leed specifications.

John Smith has 15 years experience owning and working his building Company with an

impressive list of high-end satisfied customers. Although the Company currently has limited

resources and the economy is weak, it has a good opportunity in green building demonstrating

to be the only growth in construction during the recent downturn. There is also positive perception of green building throughout the nation as having real and positive benefits.

Acme Builder Inc.'s early entry into the green market and being certified by the USGBC as a

green builder gives the Company its competitive edge. Acme Builder Inc. is also certified by

Pella Window and Door Company; one of the oldest and most respected window companies.

6.1.1 Strengths

Acme Builder Inc.'s strength is in owning a phenomenal infill urban building lot in downtown

Any Town and already having preliminary approvals for building permits. The Company has a

complete set of custom building plans to Leed specifications and fifteen years owning John Smith's own building Company with an impressive list of high-end satisfied customers.

6.1.2 Weaknesses

The only weakness Acme Builder Inc. has is a limited financial resource to benefit from the changing market.

6.1.3 Opportunities

Market growth in green building is the only growth in construction during this

economic downturn. The opportunity lies in lifestyle changes due to unstable energy prices.

There is a move back to urban areas eliminating longer commutes and a search for more

quality time. There is also a positive perception of green building in that it provides real and



positive benefits. With construction's recent problems, having a dual business plan with two

sets of potential customers, the Company has a second option because of its location and a

unique green home. It makes sense to seek out a short term mixed use and rental income by

utilizing the LEED Certified Green Home and also as a marketing tool for the Company's green development business.

6.1.4 Threats

The only threat that could cause problems is the economy.

6.2 Competitive Edge

Acme Builder Inc.'s competitive edge is from early entry into the green market. Its edge is also

getting certified by USGBC as a green builder. It is also certified by Pella Window and Door

Company, one of the oldest and most respected window companies.

6.3 Marketing Strategy

Due to such a small volume of customers recognizing the benefits of sustainable building,

maybe 2 or 3 homes a year will be sold by marketing through word of mouth and reputation.

Realtors would be a good alliance and a top notch web site advertised in a newspaper directing

to web sites would be a good strategy. However, one of the most cost effective ways to

advertise is through the use of email marketing campaigns. By collecting email addresses of

those who are interested in Green homes, the Company can keep them aware of its promotions

and other opportunities. Separate lists for different Groups of Realtors, potential purchasers of

Green homes and the media can be maintained and used with auto responders that convey special or unique messages to the Company's target group.

We plan to establish alliances with well trusted sub contractors, Realtors, USGBC, Pella

Windows & Doors Company, and the University Architecture Department. Email campaigns will

allow us to effectively communicate and stay in touch with our prospective market.

6.4 Sales Strategy

Acme Builders, Inc. plan aligns with older small construction companies; usually an owner

general contractor who typically owns the Dopl license and has fewer than 5 employees. The

Company also uses its developed long term relationships with subcontractors; providing

builders with services such as electric, Hvac, concrete, plumbing, roofing, painting, drywall masonry, tile and in house management carpentry, finish and framing, and labor.



6.4.1 Sales Forecast

We expect that 2010 and 2011 will be a transition for the Company with no profits. Acme

Builders, Inc. plan to spend most all of our time in 2010 building a model that will be a multi

use LEED Certified Green Home for a mix of non-profit and profit plans and funded through a

variety of funds; Personal, grants (Private and Public) and possible bank funding. The

Company expects to receive about $12,000 in revenue from small General Contracting jobs

during 2010.

Two apprentices will be utilized in the construction of its first LEED Certified Green home during

2010 at an additional expense of $72,800. This salary expense is built into the direct cost of

construction. The same apprentices will be utilized for 2011 and paid the same salary.

During 2011 we expect to have two sales of our LEED Certified Green Home. One will be a

completed and delivered sale for $500,000 and the other sale will consist of a 1/3 deposit

($166,667) to build a $500,000 LEED Certified Green Home. The balance of the revenue

($333,334) is expected to be received upon completion of the 2nd home in 2012.

Table: Sales Forecast

Sales Forecast

2009 2010 2011

Sales

General Contracting $15,031 $12,000

Sales of Green Homes $0 $0 $666,667

Total Sales $15,031 $12,000 $666,667

Direct Cost of Sales 2009 2010 2011

Materials $10,822 $368,640 $480,000

Other $1,202 $40,960 $53,333

Subtotal Direct Cost of Sales $12,025 $409,600 $533,333



Chart: Sales Monthly

Chart: Sales by Year


John Smith 555-555-5555 | 7.0 Management Summary 15

6.5 Milestones

Acme Builders, Inc. plan to spend all of our time in 2010 building a model that will be a multi use Certified Green Home for a mix of non-profit and profit plans.

Build Ultra Leed Green Home.

Beginning 2010 and ending 2010.

Budget $400,000.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager

Build Ultra Leed

Green Home

1/4/2010 12/15/2010 $400,000 John Smith

Web Site 10/30/2009 1/20/2010 $2,000 John Smith

Totals $402,000

7.0 Management Summary

John Smith is the founder, owner and manager of Acme Builders, Inc. He has over 15 years of

high end remodeling experience as a General Contractor.

Two apprentices will be utilized in the construction of its first LEED Certified Green home during

2010 at an additional expense of $72,800. This salary expense is built into the direct cost of

construction.

Table: Personnel

Personnel Plan

2009 2010 2011

Owner Salary $0 $0 $50,000

Apprentice $0 $72,800 $72,800

Total People 0 3 3

Total Payroll $0 $72,800 $122,800


John Smith 555-555-5555 | 16

8.0 Financial Plan

Acme Builder Inc.'s is anticipating grant funding in the amount of $121,000 to help build its

first LEED Certified Green home. Current borrowing of $200,000 in 2010 and $115,000 for

2011 will be required. Long term liability will be incurred during 2010 in the amount of

$250,000 using the land and home as collateral. The home will be used as a model to help

offset its operating costs and promotional purposes.

Acme Builders, Inc. is assuming the estimated monthly fixed cost will be $1,275, for the next

12 to 16 month period during the building of its first LEED Certified Green home. Monthly

expenses are low due to the Company being run from the Builder's home office and the

monthly revenue needed to break-even is expected to be $6,377. No sales of Green homes are

expected to be recorded or built in 2009. Beginning with 2010, one Green Homes are expected

to be built during this period. During 2011, two Green homes are forecast to be sold of which

one will be built and the second one will be with deposit and construction to begin in the first

quarter of 2012. The Company becomes profitable from the sale and building of LEED Certified

Green homes in 2012.

8.1 Important Assumptions

Acme Builders, Inc. is assuming that the average percent variable cost will be 80% of sales and

the estimated monthly fixed cost will be $1,275, for the next 12 to 16 month period.

8.2 Break-even Analysis

Monthly Revenue needed to break-even is expected to be $6,377. This figure is an average

over the 12 month period and does not take into account the irregularity of income, but is

shown as an average for illustrative purposes.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $6,377

Assumptions:

Average Percent Variable Cost 80%

Estimated Monthly Fixed Cost $1,275


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8.0 Financial Plan

17

Chart: Break-even Analysis


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8.0 Financial Plan

18

8.3 Projected Profit and Loss

Acme Builders, Inc. net income for 2009, 2010, and 2011 is forecast to

be ($15,027), ($504,378), and ($72,809), respectively. The net loss is a result of

$15,031, $12,000, and $666,667 in sales for the same period. No sales of Green

homes recorded or Green homes were built in 2009 and the model home is being built in 2010.

Beginning with 2011, two Green Homes were sold and one is built during this period with a

1/3rd deposit on the one to be built with the balance of revenue received upon completion in

2012.

Table: Profit and Loss

Pro Forma Profit and Loss

2009 2010 2011

Sales $15,031 $12,000 $666,667

Direct Cost of Sales $12,025 $409,600 $533,333

Other Costs of Sales $0 $0 $0

Total Cost of Sales $12,025 $409,600 $533,333

Gross Margin $3,006 ($397,600) $133,333

Gross Margin % 20.00% -3313.33% 20.00%

Expenses

Payroll $0 $72,800 $122,800

Marketing/Promotion $111 $1,200 $3,500

Depreciation $0 $0 $0

Rent $6,331 $6,521 $6,717

Utilities $3,798 $3,912 $4,029

Insurance $5,064 $5,216 $5,372

Payroll Taxes $0 $0 $18,420

Other $0 $12,000

Total Operating Expenses $15,304 $89,649 $172,838

Profit Before Interest and Taxes ($12,298) ($487,249) ($39,505)

EBITDA ($12,298) ($487,249) ($39,505)

Interest Expense $2,729 $17,129 $33,304

Taxes Incurred $0 $0 $0

Net Profit ($15,027) ($504,378) ($72,809)

Net Profit/Sales -99.97% -4,203.15% -10.92%


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8.0 Financial Plan

19

Chart: Profit Monthly

Chart: Profit Yearly


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8.0 Financial Plan

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Chart: Gross Margin Monthly


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8.0 Financial Plan

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8.4 Projected Cash Flow

Cash Received Pro Forma Cash Flow

2009 2010 2011

Cash Received

Cash from Operations

Cash Sales $11,273 $9,000 $500,000

Cash from Receivables $3,758 $3,000 $166,667

Subtotal Cash from Operations $15,031 $12,000 $666,667

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $200,000 $115,000

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $250,000 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $121,000 $0

Subtotal Cash Received $15,031 $583,000 $781,667


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8.0 Financial Plan

22

Expenditures Expenditures 2009 2010 2011

Expenditures from Operations

Cash Spending $0 $72,800 $122,800

Bill Payments $28,442 $408,735 $602,448

Subtotal Spent on Operations $28,442 $481,535 $725,248

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current

Borrowing $0

$50,000

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal

Repayment $0

$10,000 $5,000

Purchase Other Current Assets $0 $25,000 $10,000

Purchase Long-term Assets $0 $60,000

Dividends $0 $0 $0

Subtotal Cash Spent $28,442 $576,535 $790,248

Net Cash Flow ($13,411) $6,465 ($8,581)

Cash Balance $4,931 $11,396 $2,815

The net cash is based upon the assumption the $121,000 grant was received in the first quarter

of 2010. Current borrowing is $200,000 in 2010 and $115,000 for 2011. Long term liability

will be incurred during 2010 in the amount of $250,000. Another assumption is for $1,200,000

in sales for 2011 with resulting revenue of $666,667. Each Green home sold is projected to sell

for $500,000.


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8.0 Financial Plan

23

Table: Cash Flow

Chart: Cash


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8.0 Financial Plan

24

Chart: Gross Margin Yearly

8.5 Projected Balance Sheet

No sales of Green homes are expected in 2009 or 2010 and two are forecast for 2011. During

2010, one home will have been built at a cost of $409,600. Because it is shown as a cost of sale

without a sale taking place, it is not reflected as an asset. The asset value would add another

$409,600 if valued at cost. If the value of the model home was added to the balance sheet, it will

actually give the Company a net worth of $16,517 for 2010 and ($56,292) for 2011.

Table: Balance Sheet

Pro Forma Balance Sheet

2009 2010 2011

Assets

Current Assets

Cash $4,931 $11,396 $2,815

Accounts Receivable $0 $0 $0

Other Current Assets $0 $25,000 $35,000

Total Current Assets $4,931 $36,396 $37,815

Long-term Assets

Long-term Assets $72,210 $132,210 $132,210

Accumulated Depreciation $33,167 $33,167 $33,167

Total Long-term Assets $39,043 $99,043 $99,043

Total Assets $43,974 $135,439 $136,858


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8.0 Financial Plan

25

Liabilities and Capital 2009 2010 2011

Current Liabilities

Accounts Payable $1,616 $36,458 $50,686

Current Borrowing $0 $200,000 $265,000

Other Current Liabilities $13,082 $13,082 $13,082

Subtotal Current Liabilities $14,698 $249,540 $328,768

Long-term Liabilities $38,982 $278,982 $273,982

Total Liabilities $53,680 $528,522 $602,750

Paid-in Capital $0 $121,000 $121,000

Retained Earnings $5,321 ($9,706) ($514,083)

Earnings ($15,027) ($504,378) ($72,809)

Total Capital ($9,706) ($393,083) ($465,892)

Total Liabilities and Capital $43,974 $135,439 $136,858

Net Worth ($9,706) ($393,083) ($465,892)

8.6 Business Ratios

Acme Builders, Inc. is using the industry, "New Single Family Housing Construction" as its

model to compare ratios.

Table: Ratios

Ratio Analysis

2009 2010 2011 Industry

Profile

Sales Growth -90.64% -20.16% 5455.56% -17.50%

Percent of Total Assets

Accounts Receivable 0.00% 0.00% 0.00% 13.39%

Other Current Assets 0.00% 18.46% 25.57% 48.91%

Total Current Assets 11.21% 26.87% 27.63% 76.50%

Long-term Assets 88.79% 73.13% 72.37% 23.50%

Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 33.42% 184.25% 240.23% 39.45%

Long-term Liabilities 88.65% 205.98% 200.19% 43.40%

Total Liabilities 122.07% 390.23% 440.42% 82.85%

Net Worth -22.07% -290.23% -340.42% 17.15%


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8.0 Financial Plan

26

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin 20.00% -3313.33% 20.00% 31.99%

Selling, General & Administrative

Expenses 119.97%

889.81% 30.92% 10.74%

Advertising Expenses 0.74% 10.00% 0.53% 0.30%

Profit Before Interest and Taxes -81.82% -4060.41% -5.93% 5.37%

Main Ratios

Current 0.34 0.15 0.12 1.61

Quick 0.34 0.15 0.12 1.25

Total Debt to Total Assets 122.07% 390.23% 440.42% 82.85%

Pre-tax Return on Net Worth 154.82% 128.31% 15.63% 160.51%

Pre-tax Return on Assets -34.17% -372.40% -53.20% 27.52%


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8.0 Financial Plan

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Additional Ratios 2009 2010 2011

Net Profit Margin -99.97% -4203.15% -10.92%

Return on Equity 0.00% 0.00% 0.00%

Activity Ratios

Accounts Receivable Turnover 0.00 0.00 0.00

Collection Days 60 0 0

Accounts Payable Turnover 18.60 12.17 12.17

Payment Days 27 16 26

Total Asset Turnover 0.34 0.09 4.87

Debt Ratios

Debt to Net Worth 0.00 0.00 0.00

Current Liab. to Liab. 0.27 0.47 0.55

Liquidity Ratios

Net Working Capital ($9,767) ($213,144) ($290,953)

Interest Coverage -4.51 -28.45 -1.19

Additional Ratios

Assets to Sales 2.93 11.29 0.21

Current Debt/Total Assets 33% 184% 240%

Acid Test 0.34 0.15 0.12

Sales/Net Worth 0.00 0.00 0.00

Dividend Payout 0.00 0.00 0.00


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8.0 Financial Plan

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Solar Hot Water System Proposal


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8.0 Financial Plan

29

5.4kW Solar Electric Grid-Tied Photovoltaic System


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8.0 Financial Plan

30

Wasatch Energy Engineering Home Energy Rating Certificate


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8.0 Financial Plan

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Wasatch Energy Engineering Energy Analysis – Strong’s Court


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8.0 Financial Plan

32

Comfort Tech Budget Prices for Strong’s Court


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Table: Sales Forecast

Sales Forecast

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales

General Contracting $3,500 $2,500 $3,000 $2,000 $1,215 $1,276 $1,540 $0 $0 $0 $0 $0

Sales of Green Homes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $3,500 $2,500 $3,000 $2,000 $1,215 $1,276 $1,540 $0 $0 $0 $0 $0

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Materials 72% $2,520 $1,800 $2,160 $1,440 $875 $919 $1,109 $0 $0 $0 $0 $0

Other 8% $280 $200 $240 $160 $97 $102 $123 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales

$2,800 $2,000 $2,400 $1,600 $972 $1,021 $1,232 $0 $0 $0 $0 $0


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34


Pro Forma Profit and Loss


Sales $3,500 $2,500 $3,000 $2,000 $1,215 $1,276 $1,540 $0 $0 $0 $0 $0

Direct Cost of Sales $2,800 $2,000 $2,400 $1,600 $972 $1,021 $1,232 $0 $0 $0 $0 $0

Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $2,800 $2,000 $2,400 $1,600 $972 $1,021 $1,232 $0 $0 $0 $0 $0

Gross Margin $700 $500 $600 $400 $243 $255 $308 $0 $0 $0 $0 $0

Gross Margin % 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Expenses

Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $111

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $500 $505 $510 $515 $520 $525 $530 $535 $540 $545 $550 $556

Utilities $300 $303 $306 $309 $312 $315 $318 $321 $324 $327 $330 $333

Insurance $400 $404 $408 $412 $416 $420 $424 $428 $432 $436 $440 $444

Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses

$1,200 $1,212 $1,224 $1,236 $1,248 $1,260 $1,272 $1,284 $1,296 $1,308 $1,320 $1,444

Profit Before Interest and Taxes

($500) ($712) ($624) ($836) ($1,005) ($1,005) ($964) ($1,284) ($1,296) ($1,308) ($1,320) ($1,444)

EBITDA ($500) ($712) ($624) ($836) ($1,005) ($1,005) ($964) ($1,284) ($1,296) ($1,308) ($1,320) ($1,444)

Interest Expense $227 $227 $227 $227 $227 $227 $227 $227 $227 $227 $227 $227

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($727) ($939) ($851) ($1,063) ($1,232) ($1,232) ($1,191) ($1,511) ($1,523) ($1,535) ($1,547) ($1,671)

Net Profit/Sales -

20.78% -

37.58% -

28.38% -

53.17% -

101.43% -

96.57% -

77.36% 0.00% 0.00% 0.00% 0.00% 0.00%


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Table: Cash Flow

Cash Received

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $2,625 $1,875 $2,250 $1,500 $911 $957 $1,155 $0 $0 $0 $0 $0

Cash from Receivables $0 $29 $867 $629 $742 $493 $304 $321 $372 $0 $0 $0

Subtotal Cash from Operations

$2,625 $1,904 $3,117 $2,129 $1,653 $1,450 $1,459 $321 $372 $0 $0 $0

Additional Cash Received

Sales Tax, VAT,

HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free)

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received

$2,625 $1,904 $3,117 $2,129 $1,653 $1,450 $1,459 $321 $372 $0 $0 $0


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Expenditures from Operations Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Expenditures from Operations

Cash Spending $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Bill Payments $141 $4,201 $3,453 $3,825 $3,043 $2,449 $2,516 $2,691 $1,512 $1,524 $1,536 $1,552

Subtotal Spent on Operations

$141 $4,201 $3,453 $3,825 $3,043 $2,449 $2,516 $2,691 $1,512 $1,524 $1,536 $1,552

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal

Repayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Spent

$141 $4,201 $3,453 $3,825 $3,043 $2,449 $2,516 $2,691 $1,512 $1,524 $1,536 $1,552

Net Cash Flow $2,484 ($2,297) ($336) ($1,696) ($1,390) ($999) ($1,056) ($2,370) ($1,140) ($1,524) ($1,536) ($1,552)

Cash Balance $20,826 $18,529 $18,193 $16,497 $15,107 $14,108 $13,051 $10,682 $9,542 $8,018 $6,483 $4,931


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Table: Balance Sheet

Assets

Pro Forma Balance Sheet


Assets Starting Balances

Current Assets

Cash $18,342 $20,826 $18,529 $18,193 $16,497 $15,107 $14,108 $13,051 $10,682 $9,542 $8,018 $6,483 $4,931

Accounts Receivable

$0 $875 $1,471 $1,354 $1,225 $787 $613 $693 $372 $0 $0 $0 $0

Other Current Assets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets

$18,342 $21,701 $20,000 $19,547 $17,722 $15,894 $14,720 $13,745 $11,054 $9,542 $8,018 $6,483 $4,931

Long-term Assets

Long-term Assets

$72,210 $72,210 $72,210 $72,210 $72,210 $72,210 $72,210 $72,210 $72,210 $72,210 $72,210 $72,210 $72,210

Accumulated Depreciation

$33,167 $33,167 $33,167 $33,167 $33,167 $33,167 $33,167 $33,167 $33,167 $33,167 $33,167 $33,167 $33,167

Total Long-term Assets

$39,043 $39,043 $39,043 $39,043 $39,043 $39,043 $39,043 $39,043 $39,043 $39,043 $39,043 $39,043 $39,043

Total Assets $57,385 $60,744 $59,043 $58,590 $56,765 $54,937 $53,763 $52,788 $50,097 $48,585 $47,061 $45,526 $43,97


John Smith 555-555-5555 | Table: Balance Sheet 38

Liabilities and Capital

Liabilities and Capital


Current Liabilities

Accounts Payable

$0 $4,086 $3,325 $3,723 $2,961 $2,366 $2,425 $2,640 $1,461 $1,473 $1,484 $1,496 $1,616

Current Borrowing

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Liabilities

$13,082 $13,082 $13,082 $13,082 $13,082 $13,082 $13,082 $13,082 $13,082 $13,082 $13,082 $13,082 $13,082

Subtotal Current Liabilities

$13,082 $17,168 $16,407 $16,805 $16,043 $15,448 $15,507 $15,722 $14,543 $14,555 $14,566 $14,578 $14,698

Long-term Liabilities

$38,982 $38,982 $38,982 $38,982 $38,982 $38,982 $38,982 $38,982 $38,982 $38,982 $38,982 $38,982 $38,982

Total Liabilities

$52,064 $56,150 $55,389 $55,787 $55,025 $54,430 $54,489 $54,704 $53,525 $53,537 $53,548 $53,560 $53,680

Paid-in Capital

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Retained Earnings

($32,849) $5,321 $5,321 $5,321 $5,321 $5,321 $5,321 $5,321 $5,321 $5,321 $5,321 $5,321 $5,321

Earnings $38,170 ($727) ($1,667) ($2,518) ($3,582) ($4,814) ($6,046) ($7,238) ($8,749) ($10,272) ($11,808) ($13,355) ($15,027)

Total Capital

$5,321 $4,594 $3,654 $2,803 $1,739 $507 ($725) ($1,917) ($3,428) ($4,951) ($6,487) ($8,034) ($9,706)

Total Liabilities and Capital

$57,385 $60,744 $59,043 $58,590 $56,765 $54,937 $53,763 $52,788 $50,097 $48,585 $47,061 $45,526 $43,974

Net Worth $5,321 $4,594 $3,654 $2,803 $1,739 $507 ($725) ($1,917) ($3,428) ($4,951) ($6,487) ($8,034) ($9,706)

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