Out of the Box by Ashley Himpel

The Team

Ashley Himpel FASM

Pauline Sheets Fibers

Nicole Cummings FASM

Gillian Ware FASM

Nina Monlia FASM

Our Solution Overview Out of the Box Austin, Texas We are an on demand meal kit service. This means no subscriptions, no waiting and no commitments. We also offer customizable solutions where you can pick the number of servings to most accurately meet the needs of your family. Stop by or drive-thru today

Non-Subscription Based

Customizable Portions

Locally Sourced by Farmers

Design Challenge

Physical Fights Back At the start of this quarter we were given a business design challenge. This challenge was based on looking into different industries and trends. For the past five years, design services have been dictated and limited by the touch-points that were available to us via PC, mobile and analog. The future of service design is about blending physical and digital and various design specialists are responding. Our design challenge was to find an oďŹ&#x20AC;er or experience that is currently delivered primarily via digital, and develop a competing product or service that enhances the digital with the physical in order to augment the value for consumers. After receiving this challenge we closely examined different industries in search of potential business opportunities and came up with three possible industries to focus on.

Initial Opportunity Considered

Fitness Industry Rise in consumers focusing on health and wellness. Consumers wanting to incorporate fitness in their everyday lives. Example of current trend: FabFit

Social Networking Industry

Food & Beverages Industry

Businesses are already experimenting with service centers to help connect people together.

Always room for new businesses

People are always looking for jobs and looking to network.

Shift of focus on food and health

Example of current trend: Linkdin

Growing Market

Example of current trend: Meal Kits

INSIGHTS: The only room we saw within the fitness industry was in the retail industry such as a FabFit brick and mortar. One stipulation of this challenge was no retail so that got vetoed. Although social networking in real life would be interesting, we did not see how any solution we developed would be different from working with coops or job placement centers and these already exist. Within the food and beverage industry, there are many digital solutions currently such as meal kits, online grocery shopping, and UberEats. Many of these services have remained either very digital or physical. Not many companies apart from Amazon and Whole Foods have started to integrate both the digital and the physical. With that being said, our team thought it would be a perfect opportunity to explore the food and beverage industry further.

Industry Chosen Our group was very focused as soon as we settled on the food and beverages industry on the idea of online meal kit services such as HelloFresh and Blue Apron. People order kits online through a subscription based program and ingredients are sent to their home. We quickly noticed these companies were trying to get customers through signing up for discounts. This led us to believe that customers did not see enough value in this solution alone. We saw this as window and begun to deeper explore the industry to see how this solution was not meeting customer needs.

INSIGHTS: We decided to focus on the food and beverage industry. Meal kits are a trending matter, and we noticed there were a lot of problems that needed a solution. This raised questions as to why people are turning away from meal kits only after a few months. Rise of the grocery industry and delivery meal services

Industry Focus

INSIGHTS: There is a gap here because services are making money. Customers are finding some value but not enough to stay. Uber Eats is a trusted brand that people recognize and the service is very convenient. It is close to pizza delivery with more options where you can decide on the time you want dinner.

INSIGHTS: After having our point proven that the customer retention rates of meal kits was low, we took a look to see how sustainable the two trends were that made meal kits appealing. This includes health and wellness, on-the-go lifestyles, as well as the food and beverage industry.

INSIGHTS: Consumers are invested in health and wellness. The global nutrition market takes up almost half of the population. These trends indicate that consumers are already interested in changing their behaviors and looking for solutions.

Major Forces

Regulatory Trends:

Macro-Economic Forces:

Governments are implementing more regulations on consumer goods. Some countries have begun to raise taxes on unhealthy foods and drinks.

• Unemployment rate is 4.1% • GDP has expanded 2.7% in 2018 • 1.5 million employees in the food and beverages industry • Demand for natural resources is likely to pick up with economic recovery.

Key Trends:

Social & Cultural- Changing customer preferences.

Technology- Amazon droids are delivering packages directly to their doorstep.

On-the-go.

Whole Foods and Amazon partnered up and they now serve kiosks to store your food, while you order your meals for online pick-up.

Customers emphasizing sustainability and gravitating towards brands they share the same value with. Convenient packaging.

Health and wellness.

Need/Problem After researching the issues and trends within the food and beverage industry that the population has identified with, our team discovered that people are currently looking for convenient, healthy, in-home meal options. However, this is not the true core of the problem. The true problem is that the solutions that exist in the market are not meeting customer needs. Only 12% of meal kit subscribers stay with that specific company, and 66% of meal kit users are overall very satisfied with the solution.

Customer Reviews

INSIGHTS: The major insights customer Reviews gave us was that people liked meal kits but the issues they had with the existing form of the solution was too much packaging, especially from kits having to be transported via mail and kept fresh. There is not enough variety of meals and they didnâ&#x20AC;&#x2122;t like being locked into a subscription program. The major issues are that people are very cautious of waste, not only of the food they didnâ&#x20AC;&#x2122;t finish, but the abundance of ice packs which have no direction as to properly dispose.

Potential Problems/Buying Obstacles

Cost per serving

$9.99

$11.95

$25+

Nut-free options? Vegan options? Dairy-free options? Average calories per meal

687 cal

780 cal

704 cal

608 cal

Average prep+ cook time

35 min

40 min

55 min

INSIGHTS: To compare competition side by side, we created this chart. The insights gained from this were these current options donâ&#x20AC;&#x2122;t offer a lot of room for people who have special eating needs. Most meal kit services are recognizing that people find value in speedy solutions.

Competitive Analysis DIRECT COMPETITION Hello Fresh Blue Apron Plated Peach Dish Amazon x Whole INDIRECT COMPETITION UberEats Whole Foods hot line Frozen Dinners Local Restaurants

INSIGHTS: • When people say something is too expensive, what they are really saying is they aren’t getting enough value for the price. Clearly the issues aren’t that people do not like the food, or the amount of time it takes to cook, nor is it the amount of food. • People are more likely to pay for solutions that are instantly gratifying such as pizza for example. • The question we had to address was, ‘Can we make a meal kit option that is just as convenient? Will this add enough value to make our solution more desired?’

Potential Customer Segments

Dual Income Families

Young Professionals

Both parents workThey divide responsibilities

On-the-go

Run out of dinner ideas for their kids and themselves

Not educated or motivated to cook

Wants to instill good health practices in their children

Prefers take-out

College Students Recently moved from home Limited time or experience Interested in healthy eating but not a major priority

INSIGHTS: Dual families are the most financially liquid Family options for meal kits donâ&#x20AC;&#x2122;t serve more than three to four people

Single Parent Difficult juggling kids, work, and cooking Aim to find healthier options for the kids and themselves, but kids are picky Not a lot of spare time or extra income

Retirees Not as mobilephysically Potential widowed spouse Needs easy meals to prepare that take limited time

College students donâ&#x20AC;&#x2122;t have enough money to spend on meal kits Young professionals like meal kits because they are easy to use with their busy schedules Retirees have a harder time accessing meal kits

Target Market

Dual Income Families +35

INSIGHTS:

Single Parents +35

• Half of consumers are willing to spend from 30 minutes to an hour on cooking. • 53% are 35 years old and above, which is within our target market. • 26% of them cook because it’s a healthier option versus eating out. • Dual income families have more time to spend on cooking.

INSIGHTS: • Millennial and Generation X make up the majority of the digital meal order and delivery services at 46% and 42%. • These two segments are who we are trying to reach. • Targeting newer and younger families with small children. • These consumers are more likely to purchase a meal kit and use meal delivery services.

Elements of a Solution

Located near grocery store

Customizable Portions

Sustainable and Ethical Practices

Stable Retention Rate

Set Menu & Variety of Foods

30 min-1 hour cook time

Value Proposition

Create a unique experience that significantly raises the customer retention rate. We plan to do this by eliminating subscription services which allows customers to get a meal kit at the last minute. We plan on implementing technology by creating a mobile app and having a website that makes it easy to order meal kits and connect with customers and creating a cost effective solution to the pricing of meal kits.

MODEL #1

• Chef ’s • Nutritionists/ Health Experts • Vendors

• Workshops where parents can learn cooking skills • Operation of store front • Partnering with vendors for produce

• Money • App

• Costs associated with operations, the physical location, employees and equipment

• Personalized family cooking classes taught by chef ’s and health experts • Offering the ability to pick up that day of and not have to wait for it to be delivered

• Develop a personal relationship with on site nutritionists and

• Social Media: Facebook • Blogs • Advertisements • App

• Cooking classes • Meal kits available on site • Ordering meal kit via app

• • • •

20-40 Families Single Parents Cooking to bond with their children • Practice good healthy eating habits

INSIGHTS/ANALYSIS: • Started with wanting to provide meal kits along with offering cooking classes, and onsite nutritionists. • Instead of delivery services like our competitors, we wanted to offer same-day pick up. • Targeting an age between 20-40 • We wanted our customers to have a personal relationship with the trainers and nutritionists so they feel their healthiest.

MODEL #2

• Meal Kit Companies • Grocery Stores

• Connecting meal kit company with customers

• Relationships with meal kit companies • Relationships with grocery stores

• Buying Kiosks

• Ability to pick and choose meals that work for you • • Convenience of grocery store

• B to C relationship

• Dual-Income Families • Single Parent • Young Professionals • Married couples-no kids

• Web Presence • Physical Kiosk • Mail Distribution

• Cut of profit from transaction • Kiosk rental (grocery store) • Training for grocery store employees

INSIGHTS/ANALYSIS: • We wanted to break away from partnering with meal kits, and focus on being our own, independent company. • We wanted to partner with a grocery store and offer our own service. • The thought process behind this idea was to put a kiosk in the grocery store, where customers can pick it up at their convenience.

Final Business Model

• Local Farmers • Eco-Friendly and sustainable company for packaging • Investors • Transportation service

• • • •

Sourcing Recipes Package Design Platform Sourcing ingredients • Interactions with the customers

• Renting a physical space • Employees • Financial resources • Brand resources

• • • •

Rent Utilities Purchasing bags Buying food

• • • •

Building platforms Employees/Training Appliances/Equipment Marketing

• Not subscription based • Customized meal kits • Sustainable and ethically sourced products • On demand meal kits

• Business to consumer • Co-Creation with consumers • Reliable and convenient services

• Physical store • App • Online web channel

• Meal-Kit Sales • In store • Online • Re-usable grocery bags and box

• Families-persons between 3 or 5 • Single Parents

INSIGHTS/ANALYSIS: • Partnering with a local grocery store in Austin, Texas. • Making sure that we aren’t going to be a subscription based company • It is easier for people to pick up their food, and it gives them the option to even go in. • We want to make sure the meal are customizable that gives bigger and smaller families more options. • We are giving our customers options to either order online or through our app, and to come in our physical location.

Customer Profiles

Adam 40 Single Contractor/Flips Houses $100,000 income Resides in Texas Enjoys outdoor activities Baseball fan 2 picky daughters, Megan, 6 and Sarah, 9. Struggles to find time to meal prep.

Michelle, 38 Nurse $60,000 income

Tony, 42 Tech Entrepreneur $75,000 income

Michelle and Tony work 40+ hours per week. They each take turns cooking/preparing dinner. Kids have extra-curricular activities. Healthy eating is important to the family.

Customer Empathy Map Dual Family THINK/FEEL:

SEE

• Worried that their kids aren’t getting enough healthy options. • Overwhelmed with busy work schedules.

• Their friends are able to provide for their kids. • They need to start teaching their kids how to eat healthy. • They see their kids not getting the nutrition that they need.

SAY AND DO

HEAR

• They say they’re going to start making an effort to meal prep more. • They say they’re going to provide healthier meals. • They start a meal kit service, but don’t still with it due to pricing and time consumption.

• They hear their friends and influencer’s talk about meal kits. • They hear their friends talk about meal prepping and planning ever Sunday. • They hear their kids complain about meals being boring and repetitive.

PAINS:

GAINS:

Stressed that they don’t have enough time to meal plan throughout the week, and are tired of the same go to recipes.

Able to teach kids how to cook healthy and easy meals.

Kids are picky, and always complaining about the repetition. Other families are able to find time To cook.

They get to have fun together picking out what to eat for the week. They get to have leftovers, and new recipe ideas.

INSIGHTS: • After breaking down the dual income family even more, we feel that they are the right segment for us. • We can see that they’re struggling to find time to provide healthy and nutritional meals for their family due to a busy work schedule. • They’re in need of a quick and easy healthy meal for the week that works well for everyone.

Single Dad THINK/FEEL

SEE

• Limited time • Workaholic but wants more time with kids • Feels pressure to provide healthy foods • Overwhelmed and stressed • Wants to teach kids healthy eating practices

• Sees friends occasionally • Dad is busy working long hours • Other parents are more health conscious • Daughters are growing up fast and need nutritional value

SAY AND DO

HEAR

• Doesn’t like grocery shopping • Not the best cook • Dad is active and likes to take his daughters to do outdoor activities

• Friends are pressuring him about being more health conscious • “But we just had that for dinner last night” -daughters

PAINS:

GAINS:

Stressed about being single parent.

Learns how to prepare meals that are healthy and tasty.

Frustrated because there is a lack Of knowledge when cooking. Running out of dinner ideas.

Leftovers Able to give daughters a healthy lifestyle.

INSIGHTS: • A single dad is certainly in need of an easier way to provide his children healthy and nutritional meals. • He doesn’t have time to plan each meal, and go out to find something. Ordering and picking up the meals kits for the week would be most beneficial. • He’s wanting more time with kids, and the meal kits can be an exciting way to have those 30 minutes together cooking.

Percentage of U.S. Households Purchasing Organic Products 89% 88%

92% 85%

86% 79%

91% 88%

83% 78%

71%

75% 90%

80% 89%

82%

78%

69% 90%

85%

78% 79%

90%

79%

76%

78%

75% 83%

72%

83%

71%

75% 85%

82%

National Average:

73% 82%

Data not available for AK + HI

82%

74%

73% 70%

87%

85% 88% 87%

77%

78% 90%

80%

82%

Source: Nielsen UPC Scan Data of 100,000 households, 2016 Learn More: OTA.com

AUSTIN, TEXAS

• • • • • •

Strongest metropolitan economy in the nation Diversified economy One of the leading exports of agricultural commodities Known for sustainable living advocates High-tech, consumer driven environment 87% of the state purchases organic products

Travis

Age 0--9 Population Concentrations Austin, Texas

Census 2010 Data

Percentage of Total Population Age 0 to 9 Less than 2.5% 2.5% to 5% 5% to 10% 10% to 15% 15% Plus

1 V U

35 § ¨ ¦

183 £ ¤

Williamson County

Lake Travis 360 U V 1 V U

Georgetown 35 § ¨ ¦

290 £ ¤

U V 360

Leander 1 V U

Taylor

183 £ ¤

Travis County 35 § ¨ ¦

U V

Round Rock

Decker Lake

130 U V

360

Cedar Park 290 £ ¤

Map produced by Ryan Robinson, City Demographer, Department of Planning, City of Austin. July 2011.

183 £ ¤

71 V U 1 V U

Pflugerville Lake Travis

71 V U

V U 45

Manor

Lakeway

Travis

35 § ¨ ¦

Inset: central metropolitan Austin West Lake Hills

Del Valle

Hays County

Bastrop County

Dripping Springs

Age 10--17 Population Concentrations

130 U V

Median Family Income, by tract

Austin, Texas

Census 2010 Data

No Households Less than $20,000

Bastrop

$20,000 to $30,000 Smithville

Percentage of Total Population Age 10 to 17

$30,000 to $40,000 $40,000 to $50,000

San Marcos

Lockhart

Caldwell County

Rosanky

Austin--

Round Rock MSA, 2015

Data source: American Community Survey, 2011--15 5-year composite dataset, Table B19113, census tracts. US Census Bureau. Map produced by Ryan Robinson, City Demographer, Department of Planning, City of Austin. August 2017.

Less than 2.5% 2.5% to 5% 5% to 10% 10% to 15% 15% Plus

$50,000 to $60,000 $60,000 to $75,000 $75,000 to $100,000 $100,000 to $125,000 $125,000 to $150,000 $150,000 Plus Map produced by Ryan Robinson, City Demographer, Department of Planning, City of Austin. July 2011.

Age 25--34 Population Concentrations Austin, Texas

Census 2010 Data

Percentage of Total Population Age 25 to 34 Less than 2.5% 2.5% to 5% 5% to 10% 10% to 15% 15% Plus

Map produced by Ryan Robinson, City Demographer, Department of Planning, City of Austin. July 2011.

Age 35--44 Population Concentrations Austin, Texas

Census 2010 Data

Percentage of Total Population Age 35 to 44 Less than 2.5% 2.5% to 5% 5% to 10% 10% to 15% 15% Plus

Map produced by Ryan Robinson, City Demographer, Department of Planning, City of Austin. July 2011.

INSIGHTS: After settling on Austin, Texas, we understood that we wanted to have a physical location. We had to decide what neighborhood would be best to start out in. In doing so, we looked at demographic population distributions based on age and income in Northern Texas. On the next page you can see where we applied statistics about how many people would purchase meal kits in six months and how many have already purchased meal kits in order to better understand the sizing of those areas. We also expect to get traffic from other neighborhoods as they drive home from work.

Preliminary Sizing Northern Austin 5,323 Families Georgian Acres: 1,141 North Austin: 3,371 North Lamer: 880 Heritage Hills: 811 479 purchased meal kit 1330 would within 6 months Families Averaging 16 servings per week

Customer Segments Key Resources • Our resources will be through our physical space. We are relying on our space to work, and bring in revenue. • We are counting on our employees to execute our solution well. We made sure they were trained and educated highly.

• After primary research into our target market, we narrowed it down into two segments. • We found that families of 3 or 5 would be ideal for our service, along with single parents who struggle even more to find time to cook.

Customer Relationships • We want to make sure build a relationship with our customer that gives them trust. • We want to make sure were the easy reliable source to go in need of a quick meal for the family.

Value Propositions • After doing primary research, and conducting surveys, we realized their was a low retention rate due to being locked into subscriptions. We want to be a non subscription based company. • We also saw complaints of meal kits not being customizable, because these families can vary from larger to smaller appetites. • We want to make sure our services are on demand, an easily accessible.

Channels • After doing primary research we figured that along with our physical store, customers can easily access our service digitally. • Customers can order ahead online or through our app and pick it up in store, or through our drive thru services. • Create mobile app that allows customers to order their meal kits ahead of time, put their customizable order in and have access to be more connected with our company.

Key Partners Suppliers & Vendors Farm to Table Local vendor that allows consumers to get the foods when theyâ&#x20AC;&#x2122;re at itâ&#x20AC;&#x2122;s freshest. Fruits, vegetables, cage-free eggs, herbs, cheese, and pork all raised without hormones or antibiotics. Distributes locally grown farm products to restaurants, commercial kitchens, cafeterias, and independent grocery stores. Farm to Table practices sustainability and the farmers have various means to use non-renewable resources. Paper Mart Sustainable company Internet based out of the United States Recyclable

Distributes over 26,000 products

Cost Structure

• We took a good look at our costs, and what we will be needing to pay frequently. • We know that we will need to pay for rent and utilities, along with having to pay our employees, along with making sure their getting the best training. • We want to make sure we have the right marketing tactics, along with the correct appliances and equipments. • We need to make sure our food is bought in time to be at its freshest for our consumers.

Revenue Streams • We will be collecting our revenue through our services in-store, and online. • We will be selling re-usable grocery bags to reduce waste, and to give our customers their own shopping bag.

Financial

In the beginning we started with a slow growth. In our “conservative scenario we grew to 5% of our target market buying one meal kit a week by September of the first year. By the next September, 9% are expected to buy one meal kit a week and by September year three, we are selling one meal kit a week to 20% of households. In our “aggressive” scenario, we had reached 9% of families in our area by September year one, 24% by September of year two and 33% by year three. All of our numbers are based on each family in these present ages buying on meal kit a week to account for some of them buying more frequently. We expect September to be a spike for us each year due to school starting and families getting busier.

Out of the Box

Twelve Month

PROFIT & LOSS PROJECTION

FISCAL YEAR BEGINS:

JAN-18

FEB-18

MEAL KIT SALES

$ 12,000

$ 18,000

TOTAL SALES

$ 12,000

$ 18,000

REVENUES (SALES)

MAR-18

SEP-18

OCT-18

NOV-18

DEC-18

YEARLY

IND %

JAN % FEB % MAR % APR % MAY % JUN % JUL % AUG %

SEP %

OCT %

NOV %

APR-18

MAY-18

JUN-18

JUL-18

AUG-18

24,000

$ 30,000

$ 42,000

$ 51,840

$ 54,000

72,000

66,000

$ 66,000

66,000

553,680

100%

24,000

$ 30,000

$ 42,000

$ 51,840

$ 54,000

72,000

66,000

$ 66,000

66,000

553,680

100%

YEAR %

Out of the Box

PROFIT & LOSS PROJECTION JAN-18

FISCAL YEAR :

FEB-18

MAR-18

APR-18

MAY-18

JUN-18

JUL-18

AUG-18

SEP-18

OCT-18

NOV-18

DEC-18

YEARLY

IND %

JAN

JAN % FEB % MAR % APR % MAY % JUN % JUL % AUG % SEP % OCT % NOV % DEC %

2018 YEAR %

TREND

Meal Kits Supplies (not in COGS)

7,560

116

TOTAL COST OF SALES

7,676

Gross Profit

4,324

$ 11,340

$ 15,120

18,900

26,460

116

$ 11,340

$ 15,120

18,900

$ 6,660

$ 8,880

11,100

$ 32,400

32,400

34,020

26,576

$ 32,400

32,400

34,020

15,424

$ 19,440

19,440

19,980

$ 45,360

$ 41,580

41,580

$ 45,476

$ 41,580

$ 26,524

$ 24,420

116

$ 41,580

348,300

50%

98%

100%

348

50%

41,580

$ 41,580

348,648

100%

24,420

$ 24,420

205,032

10%

13%

12%

Out of the Box

Twelve Month

PROFIT & LOSS PROJECTION JAN-18

EXPENSES

DEC %

2018

TREND

Twelve Month

COST OF SALES

JAN

FISCAL YEAR : FEB-18

MAR-18

APR-18

MAY-18

JUN-18

JUL-18

AUG-18

SEP-18

OCT-18

NOV-18

DEC-18

YEARLY

IND %

JAN

JAN % FEB % MAR % APR % MAY % JUN % JUL % AUG % SEP % OCT % NOV % DEC %

2018 YEAR %

TREND

Column2

Advertising

1,000

Contract labor Insurance (other than health)

7,500

Office expense

Rent or lease Rent or lease: vehicles, equipment Repairs and maintenance

880

3,375

1,700

100

Taxes and licenses

1,010

Utilities Wages (less emp. credits)

3,125

37,500

12%

19%

6,886

82,632

15%

26%

42%

Website

1,152

TOTAL EXPENSES

26,758

16,216

$ 16,476

16,216

16,476

16,216

16,476

16,216

16,476

16,216

16,476

16,216

206,434

100%

Net Profit

(1,052) $

3,224

2,964

3,764

10,048

8,204

7,944

8,204

(22,434) $

1,000

260

(9,556) $

1,000

260

(7,596) $

(5,116) $

1,000

12,000

14%

260

7,500

11%

28%

360

2,180

40,500

17%

13%

21%

20%

21%

20%

21%

20%

21%

20%

21%

20,400

14%

10%

1,200

10%

1,010

19%

18%

42%

40%

100%

(1,402)

#####

682%

542%

365%

20%

21%

20%

10%

75%

-230%

-211%

-268%

-717%

-585%

-567%

-585%

100%

Small Business Cash Flow Projection Out of the Box: FIRST YEAR

Starting date Cash balance alert minimum Cash on hand (beginning of month) CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available CASH PAID OUT Advertising Contract labor Insurance (other than health) Meals Office expense Rent or lease Rent or lease: vehicles, equipment Repairs and maintenance Supplies (not in COGS) Taxes and licenses Utilities Wages (less emp. credits) Website SUBTOTAL Loan principal payment Capital purchases Other startup costs To reserve and/or escrow Owners' withdrawal TOTAL CASH PAID OUT Cash on hand (end of month)

Jan-18

Beginning

$50,000

50,000

Jan-18

$50,000

Feb-18

$27,566

Mar-18

$18,010

Apr-18

$10,414

May-18

$5,298

Jun-18

$4,246

Jul-18

$7,470

Aug-18

$10,434

Sep-18

$14,198

Oct-18

$24,246

Nov-18

$32,450

Dec-18

$40,394

12,000

18,000

24,000

30,000

42,000

51,840

54,000

72,000

66,000

12,000 62,000

18,000 45,566

24,000 42,010

30,000 40,414

42,000 47,298

51,840 56,086

51,840 59,310

54,000 64,434

72,000 86,198

66,000 90,246

66,000 98,450

66,000 106,394

1,000 7,500 30 7,560 880 3,375 1,700 100 116 1,010 3,125.00 6,886 1,152 34,434

1,000 0 30 11,340 0 3,375 1,700 100

1,000 0 30 15,120 260 3,375 1,700 100

1,000 0 30 18,900 0 3,375 1,700 100

1,000 0 30 32,400 0 3,375 1,700 100

1,000 0 30 32,400 260 3,375 1,700 100

1,000 0 30 34,020 0 3,375 1,700 100

1,000 0 30 41,580 260 3,375 1,700 100

1,000 0 30 41,580 0 3,375 1,700 100

0 3,125.00 6,886 0 31,596

0 3,125.00 6,886 0 35,116

0 3,125.00 6,886 0 48,616

0 3,125.00 6,886 0 48,876

0 3,125.00 6,886 0 50,236

1,000 0 30 45,360 260 3,375 1,700 100 116 0 3,125.00 6,886 0 61,952

1,000 0 30 41,580 0 3,375 1,700 100

0 3,125.00 6,886 0 27,556

1,000 0 30 26,460 260 3,375 1,700 100 116 0 3,125.00 6,886 0 43,052

0 3,125.00 6,886 0 57,796

0 3,125.00 6,886 0 58,056

0 3,125.00 6,886 0 57,796

0 27,566

0 18,010

0 10,414

0 5,298

0 4,246

0 7,470

0 10,434

0 14,198

0 24,246

0 32,450

0 40,394

0 48,598

Total

294,726

553,680 0 0 0 0 0 553,680

12,000 7,500 360 348,300 2,180 40,500 20,400 1,200 348 1,010 37,500 82,632 1,152 555,082 0 0 0 0 555,082

Small Business Cash Flow Projection Out of the Box: FIRST YEAR Base-Line

Starting date Cash balance alert minimum Cash on hand (beginning of month)

Jan-18

Beginning

$50,000

CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available

50,000

CASH PAID OUT Advertising Contract labor Insurance (other than health) Meals Office expense Rent or lease Rent or lease: vehicles, equipment Repairs and maintenance Supplies (not in COGS) Taxes and licenses Utilities Wages (less emp. credits) Website SUBTOTAL Loan principal payment Capital purchases Other startup costs To reserve and/or escrow Owners' withdrawal TOTAL CASH PAID OUT Cash on hand (end of month)

50,000

kits price to build customer cost build per month sales per month

Jan-18

$50,000

Feb-18

$28,454

Mar-18

$19,342

Apr-18

$11,746

May-18

$6,186

Jun-18

$2,026

Jul-18

$18

Aug-18

$26

Sep-18

$2,707

Oct-18

$7,427

Nov-18

$12,523

Dec-18

$15,583

14,400

19,200

24,000

28,800

33,600

38,400

43,200

51,072

57,600

52,800

14,400 64,400

19,200 47,654

24,000 43,342

28,800 40,546

33,600 39,786

38,400 40,426

500 43,700 43,718

51,072 51,098

57,600 60,307

57,600 65,027

52,800 65,323

52,800 68,383

1,000 7,500 30 9,072 880 3,375 1,700 100 116 1,010 3,125.00 6,886 1,152 35,946

1,000 0 30 12,096 0 3,375 1,700 100

1,000 0 30 15,120 260 3,375 1,700 100

1,000 0 30 18,144 0 3,375 1,700 100

1,000 0 30 24,192 0 3,375 1,700 100

1,000 0 30 27,216 260 3,375 1,700 100

1,000 0 30 32,175 0 3,375 1,700 100

1,000 0 30 33,264 260 3,375 1,700 100

1,000 0 30 33,264 0 3,375 1,700 100

0 3,125.00 6,886 0 31,596

0 3,125.00 6,886 0 34,360

0 3,125.00 6,886 0 40,408

0 3,125.00 6,886 0 43,692

0 3,125.00 6,886 0 48,391

1,000 0 30 36,288 260 3,375 1,700 100 116 0 3,125.00 6,886 0 52,880

1,000 0 30 36,288 0 3,375 1,700 100

0 3,125.00 6,886 0 28,312

1,000 0 30 21,168 260 3,375 1,700 100 116 0 3,125.00 6,886 0 37,760

0 3,125.00 6,886 0 52,504

0 3,125.00 6,886 0 49,740

0 3,125.00 6,886 0 49,480

0 28,454

0 19,342

0 11,746

0 6,186

0 2,026

0 18

0 26

0 2,707

0 7,427

0 12,523

0 15,583

0 18,903

300 30.24 48 9072 14400

400 30.24 48 12096 19200

500 30.24 48 15120 24000

600 30.24 48 18144 28800

700 30.24 48 21168 33600

800 30.24 48 24192 38400

900 30.24 48 27216 43200

1064 30.24 48 32175.36 51072

1200 30.24 48 36288 57600

1100 30.24 48 33264 52800

#NAME?

Total

206,037

473,472 0 0 0 0 500 473,972

12,000 7,500 360 298,287 2,180 40,500 20,400 1,200 348 1,010 37,500 82,632 1,152 505,069 0 0 0 0 505,069

Small Business Cash Flow Projection Out of the Box: FIRST YEAR CONSERVATIVE

Starting date Cash balance alert minimum Cash on hand (beginning of month)

Jan-18

Beginning

$50,000

CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available

50,000

kits price to build customer cost build per month sales per month

Jan-18

$50,000

Feb-18

$28,454

Mar-18

$19,342

Apr-18

$11,746

May-18

$6,186

Jun-18

$2,026

Jul-18

$18

Aug-18

$26

Sep-18

$2,707

Oct-18

$7,427

Nov-18

$12,523

Dec-18

$15,583

14,400

19,200

24,000

28,800

33,600

38,400

43,200

51,072

57,600

52,800

14,400 64,400

19,200 47,654

24,000 43,342

28,800 40,546

33,600 39,786

38,400 40,426

500 43,700 43,718

51,072 51,098

57,600 60,307

57,600 65,027

52,800 65,323

52,800 68,383

1,000 7,500 30 9,072 880 3,375 1,700 100 116 1,010 3,125.00 6,886 1,152 35,946

1,000 0 30 12,096 0 3,375 1,700 100

1,000 0 30 15,120 260 3,375 1,700 100

1,000 0 30 18,144 0 3,375 1,700 100

1,000 0 30 24,192 0 3,375 1,700 100

1,000 0 30 27,216 260 3,375 1,700 100

1,000 0 30 32,175 0 3,375 1,700 100

1,000 0 30 33,264 260 3,375 1,700 100

1,000 0 30 33,264 0 3,375 1,700 100

0 3,125.00 6,886 0 31,596

0 3,125.00 6,886 0 34,360

0 3,125.00 6,886 0 40,408

0 3,125.00 6,886 0 43,692

0 3,125.00 6,886 0 48,391

1,000 0 30 36,288 260 3,375 1,700 100 116 0 3,125.00 6,886 0 52,880

1,000 0 30 36,288 0 3,375 1,700 100

0 3,125.00 6,886 0 28,312

1,000 0 30 21,168 260 3,375 1,700 100 116 0 3,125.00 6,886 0 37,760

0 3,125.00 6,886 0 52,504

0 3,125.00 6,886 0 49,740

0 3,125.00 6,886 0 49,480

0 28,454

0 19,342

0 11,746

0 6,186

0 2,026

0 18

0 26

0 2,707

0 7,427

0 12,523

0 15,583

0 18,903

300 30.24 48 9072 14400

400 30.24 48 12096 19200

500 30.24 48 15120 24000

600 30.24 48 18144 28800

700 30.24 48 21168 33600

800 30.24 48 24192 38400

900 30.24 48 27216 43200

1064 30.24 48 32175.36 51072

1200 30.24 48 36288 57600

1100 30.24 48 33264 52800

#NAME?

Total

206,037

473,472 0 0 0 0 500 473,972

12,000 7,500 360 298,287 2,180 40,500 20,400 1,200 348 1,010 37,500 82,632 1,152 505,069 0 0 0 0 505,069

Small Business Cash Flow Projection Out of the Box: FIRST YEAR AGGRESSIVE

Starting date Cash balance alert minimum Cash on hand (beginning of month)

Jan-18

Beginning

$50,000

CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available

50,000

kits price to build customer cost build per month sales per month

Jan-18

$50,000

Feb-18

$28,738

Mar-18

$21,686

Apr-18

$17,926

May-18

$17,979

Jun-18

$21,207

Jul-18

$28,363

Aug-18

$38,811

Sep-18

$53,071

Oct-18

$70,507

Nov-18

$84,768

Dec-18

$96,992

15,168

24,768

34,368

43,968

53,568

63,168

72,768

82,368

91,968

82,368

77,568

15,168 65,168

24,768 53,506

34,368 56,054

43,968 61,894

53,568 71,547

63,168 84,375

72,768 101,131

82,368 121,179

91,968 145,039

82,368 152,875

77,568 162,336

77,568 174,560

1,000 7,500 30 9,556 880 3,375 1,700 100 116 1,010 3,125.00 6,886 1,152 36,430

1,000 0 30 15,604 0 3,375 1,700 100

1,000 0 30 21,652 260 3,375 1,700 100

1,000 0 30 27,700 0 3,375 1,700 100

1,000 0 30 39,796 0 3,375 1,700 100

1,000 0 30 45,844 260 3,375 1,700 100

1,000 0 30 51,892 0 3,375 1,700 100

1,000 0 30 48,868 260 3,375 1,700 100

1,000 0 30 48,868 0 3,375 1,700 100

0 3,125.00 6,886 0 38,128

0 3,125.00 6,886 0 43,916

0 3,125.00 6,886 0 56,012

0 3,125.00 6,886 0 62,320

0 3,125.00 6,886 0 68,108

1,000 0 30 57,940 260 3,375 1,700 100 116 0 3,125.00 6,886 0 74,532

1,000 0 30 51,892 0 3,375 1,700 100

0 3,125.00 6,886 0 31,820

1,000 0 30 33,748 260 3,375 1,700 100 116 0 3,125.00 6,886 0 50,340

0 3,125.00 6,886 0 68,108

0 3,125.00 6,886 0 65,344

0 3,125.00 6,886 0 65,084

0 28,738

0 21,686

0 17,926

0 17,979

0 21,207

0 28,363

0 38,811

0 53,071

0 70,507

0 84,768

0 96,992

0 109,476

316 30.24 48 9555.84 15168

516 30.24 48 15603.84 24768

716 30.24 48 21651.84 34368

916 30.24 48 27699.84 43968

1116 30.24 48 33747.84 53568

1316 30.24 48 39795.84 63168

1516 30.24 48 45843.84 72768

1716 30.24 48 51891.84 82368

1916 30.24 48 57939.84 91968

1716 30.24 48 51891.84 82368

1616 30.24 48 48867.84 77568

#NAME?

Starting date Cash balance alert minimum Cash on hand (beginning of month) CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available CASH PAID OUT Advertising Contract labor Insurance (other than health) Meals Office expense Rent or lease Rent or lease: vehicles, equipment Repairs and maintenance Supplies (not in COGS) Taxes and licenses Utilities Wages (less emp. credits) App and Website Createscape (monthly fee) SUBTOTAL Loan principal payment Capital purchases Other startup costs To reserve and/or escrow Owners' withdrawal TOTAL CASH PAID OUT Cash on hand (end of month)

Small Business Cash Flow Projection Out of the Box: SECOND YEAR BASELINE Jan-19

Beginning

40,394

Jan-19

40,394

42,918

Mar-19

44,922

Apr-19

46,666

May-19

48,554

Jun-19

50,182

Jul-19

52,186

Aug-19

54,190

Sep-19

65,142

Oct-19

76,470

Nov-19

84,430

Dec-19

92,650

92,400

84,000

109,200

100,800

92,400 132,794

84,000 126,918

84,000 128,922

84,000 130,666

84,000 132,554

84,000 134,182

84,000 136,186

109,200 163,390

109,200 174,342

100,800 177,270

100,800 185,230

100,800 193,450

Jan-19

1,000 0 30 58,212 260 3,375 0 100 116 1,060 3,125.00 21,286 1,152 160 89,876

40,394

Feb-19

89,876 42,918

Feb-19

1,000 0 30 52,920 0 3,375 0 100 0 0 3,125.00 21,286 0 160 81,996

81,996 44,922

Mar-19

1,000 0 30 52,920 260 3,375 0 100 0 0 3,125.00 21,286 0 160 82,256

82,256 46,666

Apr-19

1,000 0 30 52,920 0 3,375 0 100 116 0 3,125.00 21,286 0 160 82,112

82,112 48,554

May-19

1,000 0 30 52,920 260 3,375 0 100 116 0 3,125.00 21,286 0 160 82,372

82,372 50,182

Jun-19

1,000 0 30 52,920 0 3,375 0 100 0 0 3,125.00 21,286 0 160 81,996

81,996 52,186

Jul-19

1,000 0 30 52,920 0 3,375 0 100 0 0 3,125.00 21,286 0 160 81,996

81,996 54,190

Aug-19

1,000 0 30 68,796 260 3,375 0 100 116 0 3,125.00 21,286 0 160 98,248

98,248 65,142

Sep-19

1,000 0 30 68,796 0 3,375 0 100 0 0 3,125.00 21,286 0 160 97,872

97,872 76,470

Oct-19

1,000 0 30 63,504 260 3,375 0 100 0 0 3,125.00 21,286 0 160 92,840

92,840 84,430

Nov-19

1,000 0 30 63,504 0 3,375 0 100 0 0 3,125.00 21,286 0 160 92,580

92,580 92,650

Dec-19

1,000 0 30 63,504 0 3,375 0 100 0 0 3,125.00 21,286 0 160 92,580

92,580 100,870

Total

1,117,200 0 0 0 0 0 1,117,200

12,000 0 360 703,836 1,300 40,500 0 1,200 464 1,060 37,500 255,432 1,152 1,920 1,056,724 0 0 0 0 0 1,056,724

Small Business Cash Flow Projection Out of the Box: SECOND YEAR CONSERVATIVE

Starting date Cash balance alert minimum Cash on hand (beginning of month)

Jan-18

Beginning

$15,583

CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available

15,583

kits price to build customer cost build per month sales per month

Jan-18

$15,583

Feb-18

$19,297

Mar-18

$26,169

Apr-18

$34,557

May-18

$44,981

Jun-18

$56,805

Jul-18

$70,781

Aug-18

$86,773

Sep-18

$104,585

Oct-18

$128,841

Nov-18

$151,697

Dec-18

$176,069

62,400

67,200

72,000

76,800

81,600

86,400

91,968

110,400

105,600

110,400

105,600

62,400 77,983

62,400 81,697

67,200 93,369

72,000 106,557

76,800 121,781

81,600 138,405

500 86,900 157,681

91,968 178,741

110,400 214,985

105,600 234,441

110,400 262,097

105,600 281,669

1,000 30 39,312 880 3,375 1,700 100 116 1,010 3,125.00 6,886 1,152 58,686

1,000 0 30 39,312 0 3,375 1,700 100

1,000 0 30 42,336 260 3,375 1,700 100

1,000 0 30 45,360 0 3,375 1,700 100

1,000 0 30 51,408 0 3,375 1,700 100

1,000 0 30 54,432 260 3,375 1,700 100

1,000 0 30 57,940 0 3,375 1,700 100

1,000 0 30 69,552 260 3,375 1,700 100

1,000 0 30 66,528 0 3,375 1,700 100

0 3,125.00 6,886 0 58,812

0 3,125.00 6,886 0 61,576

0 3,125.00 6,886 0 67,624

0 3,125.00 6,886 0 70,908

0 3,125.00 6,886 0 74,156

1,000 0 30 69,552 260 3,375 1,700 100 116 0 3,125.00 6,886 0 86,144

1,000 0 30 66,528 0 3,375 1,700 100

0 3,125.00 6,886 0 55,528

1,000 0 30 48,384 260 3,375 1,700 100 116 0 3,125.00 6,886 0 64,976

0 3,125.00 6,886 0 82,744

0 3,125.00 6,886 0 86,028

0 3,125.00 6,886 0 82,744

0 19,297

0 26,169

0 34,557

0 44,981

0 56,805

0 70,781

0 86,773

0 104,585

0 128,841

0 151,697

0 176,069

0 198,925

1300 30.24 48 39312 62400

1400 30.24 48 42336 67200

1500 30.24 48 45360 72000

1600 30.24 48 48384 76800

1700 30.24 48 51408 81600

1800 30.24 48 54432 86400

1916 30.24 48 57939.84 91968

2300 30.24 48 69552 110400

2200 30.24 48 66528 105600

2300 30.24 48 69552 110400

2200 30.24 48 66528 105600

#NAME?

Small Business Cash Flow Projection Out of the Box: SECOND YEAR AGGRESSIVE

Starting date Cash balance alert minimum Cash on hand (beginning of month)

Jan-18

Beginning

$50,000

CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available

50,000

kits price to build customer cost build per month sales per month

Jan-18

$50,000

Feb-18

$58,646

Mar-18

$79,726

Apr-18

$107,650

May-18

$144,714

Jun-18

$190,282

Jul-18

$245,106

Aug-18

$308,550

Sep-18

$381,134

Oct-18

$459,025

Nov-18

$531,609

Dec-18

$602,157

96,000

100,800

120,000

144,000

168,000

192,000

216,000

240,000

255,360

240,000

235,200

96,000 146,000

100,800 159,446

120,000 199,726

144,000 251,650

168,000 312,714

192,000 382,282

216,000 461,106

240,000 548,550

255,360 636,494

240,000 699,025

235,200 766,809

235,200 837,357

1,000 7,500 30 60,480 880 3,375 1,700 100 116 1,010 3,125.00 6,886 1,152 87,354

1,000 0 30 63,504 0 3,375 1,700 100

1,000 0 30 75,600 260 3,375 1,700 100

1,000 0 30 90,720 0 3,375 1,700 100

1,000 0 30 120,960 0 3,375 1,700 100

1,000 0 30 136,080 260 3,375 1,700 100

1,000 0 30 151,200 0 3,375 1,700 100

1,000 0 30 148,176 260 3,375 1,700 100

1,000 0 30 148,176 0 3,375 1,700 100

0 3,125.00 6,886 0 92,076

0 3,125.00 6,886 0 106,936

0 3,125.00 6,886 0 137,176

0 3,125.00 6,886 0 152,556

0 3,125.00 6,886 0 167,416

1,000 0 30 160,877 260 3,375 1,700 100 116 0 3,125.00 6,886 0 177,469

1,000 0 30 151,200 0 3,375 1,700 100

0 3,125.00 6,886 0 79,720

1,000 0 30 105,840 260 3,375 1,700 100 116 0 3,125.00 6,886 0 122,432

0 3,125.00 6,886 0 167,416

0 3,125.00 6,886 0 164,652

0 3,125.00 6,886 0 164,392

0 58,646

0 79,726

0 107,650

0 144,714

0 190,282

0 245,106

0 308,550

0 381,134

0 459,025

0 531,609

0 602,157

0 672,965

2000 30.24 48 60480 96000

2100 30.24 48 63504 100800

2500 30.24 48 75600 120000

3000 30.24 48 90720 144000

3500 30.24 48 105840 168000

4000 30.24 48 120960 192000

4500 30.24 48 136080 216000

5000 30.24 48 151200 240000

5320 30.24 48 160876.8 255360

5000 30.24 48 151200 240000

4900 30.24 48 148176 235200

#NAME?

Total

3,208,600

2,242,560 0 0 0 0 0 2,242,560 kits price to build customer cost build per month 12,000 sales per month 7,500 360 1,412,813 2,180 40,500 20,400 1,200 348 1,010 37,500 82,632 1,152 1,619,595 0 0 0 0 1,619,595

Small Business Cash Flow Projection Out of the Box: YEAR 3 BASE LINE

Jan-18

Beginning

92,650

Jan-18

$92,650

Feb-18

$113,658

Mar-18

$134,320

Apr-18

$154,582

May-18

$175,244

Jun-18

$200,638

Jul-18

$218,192

Aug-18

$235,386

Sep-18

$259,156

Oct-18

$282,366

Nov-18

$303,492

Dec-18

$316,690

142,800

134,400

126,000

142,800

134,864

115,200

142,800 235,450

134,400 248,058

134,400 268,720

134,400 288,982

134,400 309,644

126,000 326,638

126,000 344,192

142,800 378,186

142,800 401,956

134,864 417,230

115,200 418,692

115,200 431,890

1,250 0 30 89,964 300 3,375

1,250 0 30 84,672 0 3,375

1,250 0 30 84,672 300 3,375

1,250 0 30 84,672 0 3,375

1,250 0 30 79,380 260 3,375

1,250 0 30 79,380 0 3,375

1,250 0 30 79,380 260 3,375

1,250 0 30 89,964 0 3,375

1,250 0 30 89,964 260 3,375

1,250 0 30 84,672 0 3,375

1,250 0 30 72,576 260 3,375

1,250 0 30 72,576 0 3,375

0 3,125.00 21,286 0 108,446

0 3,125.00 21,286 0 108,806

0 3,125.00 21,286 0 119,030

100 200 0 3,125.00 21,286 0 119,590

0 3,125.00 21,286 0 113,738

0 3,125.00 21,286 0 102,002

0 3,125.00 21,286 0 101,642

0 218,192

0 235,386

0 259,156

0 282,366

0 303,492

0 316,690

0 330,248

100 200 1,010 3,125.00 21,286 1,152 121,792

100 0 3,125.00 21,286 0 113,738

0 3,125.00 21,286 0 114,138

0 3,125.00 21,286 0 113,738

100 200 0 3,125.00 21,286 0 109,006

0 113,658

0 134,320

0 154,582

0 175,244

0 200,638

100

Total

1,583,264 0 0 0 0 0 1,583,264

15,000 0 360 991,872 1,640 40,500 0 600 600 1,010 37,500 255,432 1,152 1,345,666 0 0 0 0 1,345,666

Small Business Cash Flow Projection THIRD YEAR CONSERVATIVE

Starting date Cash balance alert minimum Cash on hand (beginning of month)

Jan-18

Beginning

$168,569

CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available

168,569

kits price to build customer cost build per month sales per month

Jan-18

$168,569

Feb-18

$189,647

Mar-18

$226,711

Apr-18

$267,067

May-18

$309,459

Jun-18

$353,251

Jul-18

$399,195

Aug-18

$447,155

Sep-18

$506,526

Oct-18

$569,854

Nov-18

$635,334

Dec-18

4,931,233 2,095,488 0 0 0 0 500 2,095,988

129,600

144,000

153,600

158,400

163,200

168,000

172,800

204,288

216,000

220,800

192,000

172,800

129,600 298,169

144,000 333,647

153,600 380,311

158,400 425,467

163,200 472,659

168,000 521,251

500 173,300 572,495

204,288 651,443

216,000 722,526

220,800 790,654

192,000 827,334

172,800 862,698

1,000 7,500 30 81,648 880 3,375 1,700 100 116 1,010 3,125.00 6,886 1,152 108,522

1,000 0 30 90,720 0 3,375 1,700 100

1,000 0 30 96,768 260 3,375 1,700 100

1,000 0 30 99,792 0 3,375 1,700 100

1,000 0 30 105,840 0 3,375 1,700 100

1,000 0 30 108,864 260 3,375 1,700 100

1,000 0 30 128,701 0 3,375 1,700 100

1,000 0 30 120,960 260 3,375 1,700 100

1,000 0 30 108,864 0 3,375 1,700 100

0 3,125.00 6,886 0 113,244

0 3,125.00 6,886 0 116,008

0 3,125.00 6,886 0 122,056

0 3,125.00 6,886 0 125,340

0 3,125.00 6,886 0 144,917

1,000 0 30 136,080 260 3,375 1,700 100 116 0 3,125.00 6,886 0 152,672

1,000 0 30 139,104 0 3,375 1,700 100

0 3,125.00 6,886 0 106,936

1,000 0 30 102,816 260 3,375 1,700 100 116 0 3,125.00 6,886 0 119,408

0 3,125.00 6,886 0 155,320

0 3,125.00 6,886 0 137,436

0 3,125.00 6,886 0 125,080

0 189,647

0 226,711

0 267,067

0 309,459

0 353,251

0 399,195

0 447,155

0 506,526

0 569,854

0 635,334

0 689,898

0 737,618

2700 30.24 48 81648 129600

3000 30.24 48 90720 144000

3200 30.24 48 96768 153600

3300 30.24 48 99792 158400

3400 30.24 48 102816 163200

3500 30.24 48 105840 168000

3600 4256 30.24 30.24 48 48 108864 128701.44 172800 204288

4500 30.24 48 136080 216000

4600 30.24 48 139104 220800

4000 30.24 48 120960 192000

3600 30.24 48 108864 172800

#NAME?

Total

$689,898

12,000 7,500 360 1,320,157 2,180 40,500 20,400 1,200 348 1,010 37,500 82,632 1,152 1,526,939 0 0 0 0 1,526,939

Small Business Cash Flow Projection Out of the Box: THIRD YEAR aggressive

Starting date Cash balance alert minimum Cash on hand (beginning of month)

Jan-18

Beginning

$168,569

CASH RECEIPTS Cash sales Returns and allowances Collections on accounts receivable Interest, other income Loan proceeds Owner contributions TOTAL CASH RECEIPTS Total cash available

168,569

kits price to build customer cost build per month sales per month

Jan-18

$168,569

Feb-18

$189,647

Mar-18

$226,711

Apr-18

$267,067

May-18

$309,459

Jun-18

$353,251

Jul-18

$399,195

Aug-18

$447,155

Sep-18

$506,526

Oct-18

$569,854

Nov-18

$635,334

Dec-18

4,931,233 2,095,488 0 0 0 0 500 2,095,988

129,600

144,000

153,600

158,400

163,200

168,000

172,800

204,288

216,000

220,800

192,000

172,800

129,600 298,169

144,000 333,647

153,600 380,311

158,400 425,467

163,200 472,659

168,000 521,251

500 173,300 572,495

204,288 651,443

216,000 722,526

220,800 790,654

192,000 827,334

172,800 862,698

1,000 7,500 30 81,648 880 3,375 1,700 100 116 1,010 3,125.00 6,886 1,152 108,522

1,000 0 30 90,720 0 3,375 1,700 100

1,000 0 30 96,768 260 3,375 1,700 100

1,000 0 30 99,792 0 3,375 1,700 100

1,000 0 30 105,840 0 3,375 1,700 100

1,000 0 30 108,864 260 3,375 1,700 100

1,000 0 30 128,701 0 3,375 1,700 100

1,000 0 30 120,960 260 3,375 1,700 100

1,000 0 30 108,864 0 3,375 1,700 100

0 3,125.00 6,886 0 113,244

0 3,125.00 6,886 0 116,008

0 3,125.00 6,886 0 122,056

0 3,125.00 6,886 0 125,340

0 3,125.00 6,886 0 144,917

1,000 0 30 136,080 260 3,375 1,700 100 116 0 3,125.00 6,886 0 152,672

1,000 0 30 139,104 0 3,375 1,700 100

0 3,125.00 6,886 0 106,936

1,000 0 30 102,816 260 3,375 1,700 100 116 0 3,125.00 6,886 0 119,408

0 3,125.00 6,886 0 155,320

0 3,125.00 6,886 0 137,436

0 3,125.00 6,886 0 125,080

0 189,647

0 226,711

0 267,067

0 309,459

0 353,251

0 399,195

0 447,155

0 506,526

0 569,854

0 635,334

0 689,898

0 737,618

2700 30.24 48 81648 129600

3000 30.24 48 90720 144000

3200 30.24 48 96768 153600

3300 30.24 48 99792 158400

3400 30.24 48 102816 163200

3500 30.24 48 105840 168000

3600 4256 30.24 30.24 48 48 108864 128701.44 172800 204288

4500 30.24 48 136080 216000

4600 30.24 48 139104 220800

4000 30.24 48 120960 192000

3600 30.24 48 108864 172800

#NAME?

Total

$689,898

12,000 7,500 360 1,320,157 2,180 40,500 20,400 1,200 348 1,010 37,500 82,632 1,152 1,526,939 0 0 0 0 1,526,939

Out of the Box 2018

Income Statement Year 1

Financial Statements in U.S. Dollars

Revenue

Gross Sales Less: Sales Returns and Allowances Net Sales

553680) 553680)

Cost of Goods Sold

Beginning Inventory Add: Purchases Freight-in Direct Labor Indirect Expenses Inventory Available Less: Ending Inventory Cost of Goods Sold

0) 0) 553680)

Gross Profit (Loss)

Expenses

Advertising Amortization Bad Debts Bank Charges Charitable Contributions Commissions Contract Labor Depreciation Dues and Subscriptions Employee Benefit Programs Insurance Interest Legal and Professional Fees Licenses and Fees Miscellaneous Office Expense Payroll Taxes Postage Rent Repairs and Maintenance Supplies Telephone Travel Utilities Vehicle Expenses Wages Total Expenses Net Operating Income

1000)

7500)

360)

2180)

40500) 1200) 348)

37500) 20400) 82632)

193620) 360060)

Other Income

Gain (Loss) on Sale of Assets Interest Income Total Other Income Net Income (Loss)

0) 360060)

Out of The Box [Second Year]

Income Statement

Financial Statements in U.S. Dollars

Revenue

Gross Sales Less: Sales Returns and Allowances Net Sales

Cost of Goods Sold

Beginning Inventory Add: Purchases Freight-in Direct Labor Indirect Expenses Inventory Available Less: Ending Inventory Cost of Goods Sold

1,117,200 $1,117,200

0 703,836 0 255,432 464 959,732 $959,732 $157,468

Gross Profit (Loss)

Expenses Advertising Contract labor Insurance (other than health) Office expense Rent or lease Rent or lease: vehicles, equipment Repairs and maintenance Taxes and licenses Utilities App and Website Createscape (monthly fee)

12,000 0 360 1,300 40,500 0 1,200 1,060 37,500 1,152 1920)

$62,396

Net Operating Income

Other Income

Gain (Loss) on Sale of Assets Interest Income Total Other Income Net Income (Loss)

$95,072

40,394 $40,394 $102,790

Out of The Box [Third Year]

Income Statement

Financial Statements in U.S. Dollars

Revenue

Gross Sales Less: Sales Returns and Allowances Net Sales

Cost of Goods Sold

Beginning Inventory Add: Purchases Freight-in Direct Labor Indirect Expenses Inventory Available Less: Ending Inventory Cost of Goods Sold

1,583,264 $1,583,264

0 991,872 0 255,432 600 1,247,904 $1,247,904 $335,360

Gross Profit (Loss)

15,000 0 360 1,640 40,500 0 600 1,010 37,500 1,152

$237,598

Net Operating Income

Other Income

Gain (Loss) on Sale of Assets Interest Income Total Other Income Net Income (Loss)

$97,762

$92,650 $92,650 $330,248

https://www.blueapron.com/?cvosrc=search-paid.google.GLF-exact-google&gclid=CjwKCAjwrqnYBRB-EiwAthnBFk4RROlvHFGZydHnM-ijSO NrqffSjcGRHR7fVSHevTtqQJS0Jy2RlRoCfYQQAvD_BwE&utm_campaign=GLF-exact-google&utm_medium=search-paid&utm_source=google https://www.hellofresh.com/landing/getcooking2017-sem30-getstarted/?c=NU5P53KTB4PSBGWG4AQZ29ZG&gclid=CjwKCAjwrqnYBRB-Eiw AthnBFnamFN91MGhkkRIBAMcRo1GrsqT6YvkKCvEfoeqsMpONdvHQCmoqmBoCoxEQAvD_BwE http://time.com/money/4856342/best-meal-kits-value/ https://www.buzzfeed.com/hannahloewentheil/meal-kit-subcription-boxes-review http://www.farmtotabletx.com/ https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html https://www.amazon.com/b?ie=UTF8&node=17235386011 Austin,Texas City Information: Maps: Maps produced by: Ryan Robinson, City Demographer, City of Austin, May 2017.Housing Activity within the City of Austin. City Information: Cofield,Aubrey. An Introduction To Urban Farming In Austin, Texas.Culture Trip.August 04, 2016 Elaine Pofeldt.The top start-up mecca in the US is far from Silicon.11 Aug 2016. U.S. Census Bureau, 2010 Census of Population.U.S. Census Bureau QuickFacts: Texas. U.S. Census Bureau, Population Estimates Program (PEP).U.S. Census Bureau QuickFacts: Texas. The Economic Impact of Austin’s Food Sector, Client Assistance Memo 244, Urban Agriculture, November 17, 2010. Banks, Karen (2011). Central Texas Foodshed Assessment. USDA, Agricultural Market Service, Farmers’ Market Survey. Competition Meal Kit Information: Hirsch,Lauren. Albertsons to roll out Plated meal kits to hundreds of its stores by end of year. CNBC. April 05, 2018. Hirsch,Lauren. Walmart pushes its meal-kit business with plans to roll out to 2,000 stores this year. CNBC. March 05, 2018.

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Statista. Health and wellness: U.S. market value 2013-2018. United States; Euromonitor; 2013 to 2018. April 5, 2018. Giammona,Craig. HelloFresh Buys Organic Rival in Bid to Overtake Blue Apron. Bloomberg Quint. March 20, 2018. 4 Major Forces: US Department of Commerce, BEA,. U.S. Bureau of Economic Analysis. April 25, 2018. USDA Agricultural Projections to 2027. Office of the Chief Economist. Long-term Projections Report OCE-2018-1. February 2018. Regulatory Trends in the consumer goods industry. Deloitte United States. March 04, 2015. Cirera,Xavier. Masset,Edoardo. Advances in pediatrics. U.S. National Library of Medicine.September 27, 2010. Swanson,Amy. How Much Are Users Really Willing To Pay For Subscription. AW360. May 01, 2018. Pozin,Ilya. Inc.com. What Customers Really Want: It Might Surprise You. Inc. April 29, 2018.