Appollonia business plan

Apollonia Contracting Inc.

2015 Business Plan

Apollonia Contracting Inc.

B-303,9605 – 165 Street Edmonton AB T5P 3S5

Ph1. 587-938-1229 Ph2. 780-288-4317

spahiu@hotmail.gr fierez.dumani@gmail.com

Apollonia Contracting Inc.

Business Plan Highlights Name of the Company Apollonia Contracting Inc. Business of the Company Renovation and construction NAICS Code

236110 construction or remodelling and renovation of single-family and multi-family residential buildings.

Place of Business Edmonton, Alberta, Canada Business Model       

additions, alterations and renovations, residential buildings apartment building, construction construction management cottages construction fire and flood restoration of residential homes, by general contractors handyman construction services, residential buildings modular housing assembly and installation on site, construction

Market Opportunity Construction in Canada is a strong indicator of the country's economic strength. It is a $171 billion industry that employs 1.24 million, and consumes 40 % of the country's energy and 50 % of its primary resources1.

Alberta Construction

The renovation market 4,100 jobs from 2015 + 10 years2. Through the first four months of 2015, total housing starts were up 90 per cent year-over year, rising from 3,570 in the same period of 2014 to 6,791.

Capital Requirement $4,400 License & Permits, Web Development, Tools & Supplies, WCB, Insurance, Bond Insurance, Errors and Emission Policy Year 1: $772,680; Year 2: $811,314; Year 3: $3,922,132; Year 4: Year 5: Revenues & ROI Year 6.

Use of Proceeds

1 2

National Research Council of Canada http://www.nrc-cnrc.gc.ca/eng/rd/construction/index.html Build Force Canada, Construction and Maintenance Looking Forward Alberta, 2015-2024 Key Highlights.

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Apollonia Contracting Inc.

Table of Contents 1 Executive Summary ............................................................................................ 4 1.1

Company Description ............................................................................................................................. 4

1.2

Management ............................................................................................................................................. 4

1.3

Future Plans.............................................................................................................................................. 4

1.4

Services ...................................................................................................................................................... 5

1.5

Market Analysis........................................................................................................................................ 6

1.5.1

The Real Estate Market in Alberta ................................................................................................................. 6

1.5.2

Residential Average Price in Alberta to May 2015 ....................................................................................... 7

1.6

Alberta Labor Requirements 2015 - 2024 ........................................................................................... 9

1.7

Demographic Trends ............................................................................................................................ 10

1.8

Client Profiles ......................................................................................................................................... 10

2 About Apollonia ................................................................................................... 11 2.1

Status and Skills of the Shareholders in Canada ............................................................................ 11

2.1.1

Fierez Dumani ................................................................................................................................................ 11

2.1.2

Afrim Spahiu ................................................................................................................................................... 11

2.2

Corporate Objectives at the starting point ..................................................................................... 11

2.3

Future Corporate Objectives .............................................................................................................. 12

2.4

Goal Attainment.................................................................................................................................... 12

3 Services of the Company ..................................................................................... 13 3.1

Estimating Jobs...................................................................................................................................... 13

3.2

Competitive Advantage ....................................................................................................................... 13

3.3

Growing the Scope of Projects .......................................................................................................... 14

4 Marketing Strategies ............................................................................................ 15 4.1

Marketing strategies that the company will follow ....................................................................... 15

4.2

Target clients at Launch ...................................................................................................................... 15

4.3

Attracting Clients .................................................................................................................................. 15

4.4

Attracting Clients in the Future ......................................................................................................... 16

4.5

Marketing Effectiveness ...................................................................................................................... 16

5 Appendix ............................................................................................................. 17

2

5.1

Assumptions .......................................................................................................................................... 17

5.2

Startup Expenses .................................................................................................................................. 18 2015 BUSINESS PLAN - JULY 2015

Apollonia Contracting Inc.

5.3

Revenue Summary................................................................................................................................ 19

5.4

Income Statement ................................................................................................................................. 20

5.5

Total Revenues and Operating Income ............................................................................................. 21

5.6

Gross Revenues and Net Income ....................................................................................................... 21

5.7

Balance Sheet ......................................................................................................................................... 22

5.8

Cash Flow Statement ............................................................................................................................ 23

5.9

Benchmarks and Break Even Analysis............................................................................................... 24

6 Appendix ........................................................................................................... 25 6.1

Resume of Fierez Dumani ................................................................................................................... 25

6.2

Resume of Afrim Spahiu ...................................................................................................................... 26

6.3

Reference Letter for Afrim Spahiu ..................................................................................................... 27

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1 Executive Summary 1.1 Company Description Apollonia Contracting Inc. is a contractor corporation that will provide renovation services in Edmonton, Alberta and the surrounding areas. The company is a contracting firm that provides renovation services such as:    

kitchen renovation bathroom renovation basement renovation property maintenance

1.2 Management The company is owned by two shareholders: Fierez Dumani and Afrim Spahiu (Please refer to the CV of Fierez Dumani and Afrim Spahiu in the Appendix). Fierez Dumani is a building engineer graduate from Montreal and has work experience as a structural engineer in Alberta. Afrim Spahiu has been part of the construction industry as a skilled worker for the last 23 years. Both shareholders, have enough experience in the construction industry and have taken a step forward in their career by launching Apollonia Contracting Inc. The renovation business has a stable market in Alberta, with Edmonton providing $ 1.4 Billion in wages in this sector.

1.3 Future Plans The company management has plans to become general contractors, building projects such as commercial retail units, new houses for owners, new townhomes and warehouses. In this way Apollonia, will hire all the sub trades required for the job such as excavation, concrete placement, concrete formwork, and interior designers.

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The company will eventually become part of the real estate business. It will purchase houses or buildings that need renovation and will sell it at a market price maximizing its profits. The company value will increase in the near future with both shareholders profiting from the business.

1.4 Services 

Home renovation and interior re-modelling



House extensions / additions



New kitchens and bathrooms



Framing



Leaky home modifications



Decks and outside rooms



Light commercial building



Retail and hospitality fit-outs and construction



Plumbing repairs



Drywall/Painting



Floor tiles/Ceiling tiles



Handyman service



Door/Window repairs and installation



Screen & Storm Door Installation



Insulation



Concrete work



Wood Rot Repair



Power Washing

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1.5 Market Analysis 1.5.1 The Real Estate Market in Alberta Alberta Monthly Summary

6

May 2015

Residential Dollar Volume

Total Dollar Volume

Residential Average Price

Alberta West

$44,464,004

$47,404,429

$342,031

Calgary

$1,280,405,165

$1,378,056,715

$465,941

Central Alberta

$167,451,921

$176,379,921

$330,933

Edmonton (Total Board)

$770,001,259

$873,952,083

$376,161

Fort McMurray

$69,242,962

$70,267,962

$602,113

Grande Prairie

$90,484,200

$103,399,530

$330,234

Lethbridge

$74,296,154

$84,959,654

$271,154

Lloydminster

$30,396,749

$30,846,749

$357,609

Medicine Hat

$34,812,783

$37,419,283

$269,867

South Central Alberta

$6,000,050

$6,465,050

$200,002

Alberta

$2,567,555,247

$2,809,151,376

$405,105

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1.6 Residential Average Price in Alberta to May 2015 Housing starts in the Edmonton CMA (Canadian Mortgage Association) moved slightly higher in April totaling 1,286 units, up from 1,255 in the same month of 2014. Through the first four months of 2015, total housing starts were up 90 per cent year-over year, rising from 3,570 in the same period of 2014 to 6,7913.

The average single-detached absorbed price in the Edmonton CMA was $665,523 in April 2015, up 20.2 per cent from the same month of 2014.

The increase was attributable to a higher proportion of more expensive homes being sold. Homes priced above $700,000 accounted for 21 per cent of absorptions, up from 13 per cent in the same period one year prior. After four months of 2015, the average absorbed price for a single-detached home was $607,032, up from $561,139 in the same period of 2014.

Multi-family starts in the Edmonton CMA, which include semi-detached, row, and apartment units, increased 10 per cent in April to 780, up from 711 starts in the same month of 2014. Higher apartment

3

Housing Now, Edmonton CMA May 2015.

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starts drove the increase, as both semi-detached and row starts moved lower. On a year-to-date basis, multi-family starts totaled 4,863 units, up from 1,717 in the same period of 2014.

There were 12,363 multi-family units under construction in April, up 32 per cent from the same month of 2014. Completions of multi-family units also moved higher, rising 65 per cent year-over-year to 1,127 units.

Estimates and forecasts are based on the opinion of independent RE/MAX broker/owners and affiliates. 2015 Housing Market Outlook Report.

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1.7 Alberta Labor Requirements 2015 - 2024 

While new investment slows, maintaining current production requires a steady flow of capital and maintenance investment that employs a rising proportion of the construction workforce.



Across the scenario period, sustaining capital investment demands a large and growing workforce.



Replacement demands related to retirements add to long-term labour requirements.



These features create rising labour requirements for the construction industry – in spite of the current cycle.



Recruiting to fill these jobs will continue to focus the industry on immigration and inter-provincial mobility as growth resumes over the long term.



Another group of trades and occupations that is more concentrated in ICI follow a mild cycle to 2015 and see above-average job gains to 2024 o

carpenters

o

elevator constructors and mechanics

o

floor covering installers

o

glaziers

o

painters

o

plasterers, drywall installers and finishers

The oil price decline sets off a new cycle that drives employment down 18 percent from 2015 to 2018.

While cyclical changes are concentrated in new housing, renovation employment grows 12 percent, making up for the losses in new housing so that residential construction employment continues to climb.

Source: BuildForce Canada 2015

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Apollonia Contracting Inc.

1.8 Demographic Trends Province-wide demographic trends from 2015 to 2024 indicate4: 

Alberta’s population will grow by 827,000 people across the decade.



The province’s relatively young population translates into natural population growth of 312,000 people from 2015 to 2024, as births exceed deaths.



Across the scenario period, net in-migration is estimated at 515,000 people.



The total provincial labour force (all industries) is estimated to rise by 380,000 workers across the outlook period to 2024.

1.9 Client Profiles The clients that the company will target will be home owners in developed areas around Edmonton. Home owners in these particular areas are always looking to update the look of their home or add more square feet by changing the plan’s layout. In this way, they can rent extra rooms to tenants or, there are homeowners who are looking to increase the house functionality and look. By doing renovations, they can increase the value of their house.

4

BuildForce Canada Construction and Maintenance Looking Forward, Alberta 2015-2024 Key Highlights.

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2 About Apollonia Apollonia Contracting Inc., is a contractor company registered in Edmonton, Alberta by two shareholders including: Fierez Dumani and Afrim Spahiu. The company will provide renovation services and it will operate in Edmonton and the surrounding areas.

2.1 Status and Skills of the Shareholders in Canada 2.1.1 Fierez Dumani Fierez Dumani is Canadian Citizen and a building engineer graduate from Montreal. He is a resident of Edmonton and has worked in the area as a structural engineer and a project manager. His experience and education will help to launch the credibility and reputation of Apollonia Contracting to potential clients.

Mr. Dumani is trained to find solutions to problems that rise during a construction project and he is familiar with Building Codes Standards. His experience in the construction industry will help him avoid any circumstances that might rise by failing to meet building codes standards regarding cost, schedule and liabilities. In addition, Fierez Dumani is in contact with other engineers such as friends and colleagues who will provide professional guidance during his career as a director of Apollonia Contracting Inc. Please refer to Fierez Dumani’s resume in Section 6.1 and his references.

2.1.2 Afrim Spahiu Afrim Spahiu is temporary foreign worker in Canada and brings a background as an experienced entrepreneur. He used to operate his own firm in Greece and knows every step on how to approach, deal and satisfy new clients who require renovation services. He is a skilled construction worker with 23 years of experience in the renovation industry.

Mr. Spahiu is currently working in Edmonton, Alberta as a Machinist for Fero Corporation where he is well adjusted to Canadian Working System. He has created good relationships with his co-workers and been exposed to the Canadian multicultural society. This will be helpful when approaching clients with different nationalities that currently live in Edmonton. Please refer to Afrim Spahiu’s resume in Section 6.2 and a reference letter in Section 6.3.

Fierez Dumani and Afrim Spahiu are both Albanians who have been working in Canada. They are well adjusted to the working environment in Canada. They share the same cultural heritage which will help in their understanding and management of Apollonia. They trust each other as friends and partners which is an important factor related to the company’s stability and its focus to meet objectives.

2.2 Corporate Objectives at the starting point The objective of the company at the starting point is to get small projects such as: bathroom remodels, old carpet removal, and dry wall installation. These projects are easy to get using marketing strategies 2015 BUSINESS PLAN - JULY 2015

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Apollonia Contracting Inc.

detailed in the marketing section. Furthermore, small projects are easy to estimate, schedule and achieve client expectations.

2.3 Future Corporate Objectives The shareholders will try to make the company part of the real estate business in the future. They will purchase houses that need renovation at low prices, renovate them and sell them at a higher price. In this way, profits will be generated and the company value will increase.

Another approach will be to purchase old buildings, renovate them and rent them to tenants.

Consequently, the company will possess assets that will increase its value in the near future. The real estate business has been growing in Alberta since 2011 and guarantees a stable market in the future as per Canadian Home Mortgage Corporation (CMHC) on Jun 1st, 2015 “Realtors Association of Edmonton�.

2.4 Goal Attainment Apollonia Contacting Inc., will be successful and different from the other similar corporations in the market. Management believes that the experience of the shareholders, their financial support and their motivation will determine the success of the company moving forward.

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3 Services of the Company Apollonia Contracting Inc., will be a contracting firm that will provide several services such as: kitchen renovation, bathroom renovation, basement renovation, decks and fencing, maintenance of residential and commercial units, landscape services, swimming pool services and roofing services.

3.1 Estimating Jobs The price of the service will be based on material cost from suppliers such as Home Depot, equipment rent cost and working hours required for the job to be completed. The experience of Afrim as a skilled labor and the experience of Fierez as an estimator will help in determining the exact hours required to complete the job. Fierez Dumani and Afrim Spahiu will charge 25-30 $/hour/each as general labor which is very competitive in the market.

3.2 Competitive Advantage Their competitors charge 30-35 $ /hour/employee for similar services. Also, other companies will not be able to perform service at any time of the day and any day of the week because they have to coordinate between employees and ongoing services. At Apollonia, Fierez and Afrim will both be available to work at any day of the week and any hours of the day due to their dedication to completing projects economically 2015 BUSINESS PLAN - JULY 2015

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and in a timely fashion. In this way, they will complete the job according to client schedule and at a lower cost and offer advantages to their clients.

3.3 Growing the Scope of Projects Changing the layout plans of a house due to room additions or increasing the house functionality is called a big project. In a big project, the scope of work includes changing the existing framing, demolition, removal of old materials, new electric system, new plumbing system and consultation with professionals.

Sub-trades will also be included in the project in order to complete the job.

Dealing with big projects requires knowledge, experience, responsibilities, liabilities, detailed estimation, and management skills. Fierez Dumani has experience in project bidding process and he has a clear picture of the paperwork required from the first stage of bidding for the project to issuing schedule C to the client.

Afrim Spahiu will be a site supervisor for big projects since he has experience making sure that all the details of the project are completed.

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4 Marketing Strategies 4.1 Marketing strategies that the company will follow Apollonia Contracting Inc., marketing strategy will be by flyers, free online advertisement such as Angie’s List, Kijiji and Craigslist and being part of Edmonton Renovation show and company’s web site.

4.2 Target clients at Launch Apollonia will target home owners in developed areas in or near Edmonton. In these areas, home owners are looking for alterations to the design of their homes, room additions so they can rent out space or an increase the square feet of the house to increase its value.

4.3 Attracting Clients In order to attract clients in developed areas, Apollonia Contracting Inc. will use flyers in the areas in and near to Edmonton. The company will also advertise on Angie’s List, Kijiji and Craigslist at no cost. Both Fierez Dumani and Afrim Spahiu will have a chance to have face to face interaction with clients. This aspect, will help both directors to know how clients will react towards their services and improve their marketing strategies based on client’s reaction. Moreover, the free advertising about Apollonia Contracting Inc., will also help in attracting clients.

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Apollonia Contracting Inc.

4.4 Attracting Clients in the Future Apollonia Contracting Inc. will develop a website and business cards. Fierez Dumani completed several marketing projects during his study towards a bachelor degree and is competent in web designing. He will develop the company’s website page. On the website page, there will be posts from client reviews for the performed work regarding quality, time and cost efficiency. Also, the company will be part of the Edmonton Renovation Show where the company will provides its services to clients in need.

4.5 Marketing Effectiveness The marketing strategies will work because the renovation industry is important in Edmonton. According to Canadian Home Builder Association, regarding Edmonton region, the renovation industry provides 20,800 jobs in home renovation and repair, generates $1.4 Billion in wages and $2.7 Billion in investment value. Edmonton is a growing city which provides potential business growth for renovation services.

Fierez Dumani and Afrim Spahiu are dedicated and both believe that they will grow their business and provide excellent service to their clients.

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5 Appendix 5.1

Assumptions Revenue Assumptions Pre Opening FY 2015 FY 2016

Projected Units Sold Bathroom Reno Carpet Removal Carpet Install Tile Install Laminate Floor CRU Warehouse House

Selling Price $ 6,380 $ 3,000 $ 3,575 $ 5,995 $ 5,530 $ 788,084 $ 1,576,168 $ 353,000

Cost of Revenue Bathroom Reno Carpet Removal Carpet Install Tile Install Laminate Floor CRU Warehouse House

Cost/Unit $ 2,600 cost $ cost $ 500 cost $ 1,300 cost $ 2,200 cost $ 685,084 cost $ 1,370,168 cost $ 307,000 cost

-

of of of of of of of of

36 30 30 30 30 156

38 32 32 32 32 164

FY 2017

FY 2018

FY 2019

40 33 33 33 33 1 1 2 176

42 35 35 35 35 2 2 3 188

44 36 36 36 36 3 3 4 200

materials materials materials materials materials materials + subcontractors materials + subcontractors materials + subcontractors

Projected Sales Bathroom Reno Carpet Removal Carpet Install Tile Install Laminate Floor CRU Warehouse House Total Sales

$ $ $ $ $ $ $ $ $

-

$ 229,680 $ 90,000 $ 107,250 $ 179,850 $ 165,900 $ $ $ $ 772,680

$ 241,164 $ 94,500 $ 112,613 $ 188,843 $ 174,195 $ $ $ $ 811,314

$ 253,222 $ 99,225 $ 118,243 $ 198,285 $ 182,905 $ 788,084 $ 1,576,168 $ 706,000 $ 3,922,132

$ 265,883 $ 104,186 $ 124,155 $ 208,199 $ 192,050 $ 1,576,168 $ 3,152,336 $ 1,059,000 $ 6,681,978

$ 279,177 $ 109,396 $ 130,363 $ 218,609 $ 201,652 $ 2,364,252 $ 4,728,504 $ 1,412,000 $ 9,443,953

Cost of Goods Sold Bathroom Reno Carpet Install Tile Install Laminate Floor CRU Warehouse House Total Cost of Goods Sold Gross Margin

$ $ $ $ $ $ $ $ $

-

$ 93,600 $ 15,000 $ 39,000 $ 66,000 $ $ $ $ 213,600 $ 559,080

$ 98,280 $ 15,750 $ 40,950 $ 69,300 $ $ $ $ 224,280 $ 587,034

$ 103,194 $ 16,538 $ 42,998 $ 72,765 $ 685,084 $ 1,370,168 $ 614,000 $ 2,904,746 $ 1,017,386

$ 108,354 $ 17,364 $ 45,147 $ 76,403 $ 1,370,168 $ 2,740,336 $ 921,000 $ 5,278,773 $ 1,403,205

$ 113,771 $ 18,233 $ 47,405 $ 80,223 $ 2,055,252 $ 4,110,504 $ 1,228,000 $ 7,653,388 $ 1,790,565

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5.2 Startup Expenses Apollonia Contracting Startup Expenses Financing Structure Phase 1 Financing FINANCIAL HIGHLIGHTS

$4,400

Fiscal Year Ends:

31-Dec

Tax rate

34.00%

FINANCING STRUCTURE

Initial Financing

$4,400

Use of Proceeds License & Permits Web Development Tools & Supplies WCB Business Insurance Bond Insurance Errors and Emission Policy Startup Investment

18

$ $ $ $ $ $ $ $

800 500 1,000 200 750 350 800 4,400

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5.3 Revenue Summary Revenue Summary FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Revenues: Bathroom Reno

$

229,680 $

241,164 $

253,222 $

265,883 $

279,177

Carpet Removal

$

90,000 $

94,500 $

99,225 $

104,186 $

109,396

Carpet Install

$

107,250 $

112,613 $

118,243 $

124,155 $

130,363

Tile Install

$

179,850 $

188,843 $

198,285 $

208,199 $

218,609

Laminate Floor

$

165,900 $

174,195 $

182,905 $

192,050 $

201,652

CRU

$

-

$

-

$

788,084 $

1,576,168 $

2,364,252

Warehouse

$

-

$

-

$ 1,576,168 $

3,152,336 $

4,728,504

House

$

-

$

-

$

706,000 $

1,059,000 $

1,412,000

$

772,680 $

811,314 $ 3,922,132 $

6,681,978 $

9,443,953

Total Revenues

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5.4 Income Statement Income Statement FY 2019

FY 2018

FY 2017

FY 2016

FY 2015 Revenues Bathroom Reno

229,680

241,164

253,222

265,883

279,177

Carpet Removal

90,000

94,500

99,225

104,186

109,396

Carpet Install

107,250

112,613

118,243

124,155

130,363

Tile Install

179,850

188,843

198,285

208,199

218,609

Laminate Floor

165,900

174,195

182,905

192,050

201,652

CRU

-

-

788,084

1,576,168

2,364,252

Warehouse

-

-

1,576,168

3,152,336

4,728,504

House

-

-

706,000

1,059,000

Gross Revenues

$

772,680

$

811,314

$

3,922,132

$

6,681,978

1,412,000 $

9,443,953

Cost of Goods Sold Bathroom Reno

93,600

98,280

103,194

108,354

113,771

Carpet Install

15,000

15,750

16,538

17,364

18,233

Tile Install

39,000

40,950

42,998

45,147

47,405

Laminate Floor

66,000

69,300

72,765

76,403

80,223

CRU

-

-

685,084

1,370,168

2,055,252

Warehouse

-

-

1,370,168

2,740,336

4,110,504

House

-

-

614,000

921,000

Total Cost of Goods Sold

$

213,600

$

224,280

$

2,904,746

$

5,278,773

1,228,000 $

7,653,388

Operating Expenses 500

600

720

864

1,037

202,000

262,600

341,380

443,794

576,932

18,000

21,600

25,920

31,104

37,325

Utilities

600

600

2,000

2,000

30,000

Business Insurance

750

750

750

750

800

Supplies

3,000

3,500

5,000

5,000

7,000

Repairs

2,000

2,000

2,500

3,000

3,500

Travel

1,500

2,500

5,000

5,000

10,000

15,000

20,000

40,000

50,000

70,000

600

800

1,200

1,500

1,600

Inspections

10,800

13,000

15,000

20,000

50,000

Permits

10,800

13,000

15,000

20,000

50,000

Fierez car insurance

1,740

1,827

1,918

2,014

2,115

Afrim car insurance

1,200

1,260

1,323

1,389

1,459

Bond Insurance

350

350

350

350

400

Errors and Emission Policy

800

800

800

800

1,000

WCB

200

300

500

600

800

Marketing Salaries Rent

Professional Services Telephone

Total Operating Expenses $

$

345,487

$

459,361

$

588,165

$

843,967

Operating Income / (Loss)

$289,240

$241,547

$558,024

$815,040

$946,598

Provision for Income Tax

98,342

82,126

189,728

277,113

321,843

$190,898

$159,421

$368,296

$537,926

$624,755

Net Income

20

269,840

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5.5 Total Revenues and Operating Income

5.6 Gross Revenues and Net Income

Gross Revenues & Net Income $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000

Gross Revenues

$4,000,000

Net Income

$3,000,000 $2,000,000 $1,000,000 $FY 2015

FY 2016

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FY 2017

FY 2018

FY 2019

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5.7 Balance Sheet Balance Sheet Pre-Launch FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Cash

-

190,898

350,319

718,615

1,256,542

1,881,296

Accounts Receivable

-

18,878

19,822

20,813

21,853

22,946

Total Current Assets

-

190,898

350,319

718,615

1,256,542

1,881,296

4,400

4,400

4,400

4,400

4,400

4,400

Total Current Assets

4,400

4,400

4,400

4,400

4,400

4,400

TOTAL ASSETS

4,400

195,298

354,719

723,015

1,260,942

1,885,696

Accounts Payable

-

7,693

8,078

8,482

8,906

9,351

Taxes Payable/(loss carryforward)

-

-

-

-

-

-

Total Current Liabilities

-

-

-

-

-

-

TOTAL LIABILITIES

-

-

-

-

-

-

4,400

4,400

4,400

4,400

4,400

4,400

ASSETS Current Assets

Fixed Assets PP&E

LIABILITIES Current Liabilities

SHAREHOLDER'S EQUITY Common Stock Retained Earnings

-

190,898

350,319

718,615

1,256,542

1,881,296

TOTAL SHAREHOLDER EQUITY

4,400

195,298

354,719

723,015

1,260,942

1,885,696

TOTAL LIABILITIES & EQUITY

$4,400 $195,298 $354,719 $723,015 $1,260,942 $1,885,696

22

2015 BUSINESS PLAN - JULY 2015

Apollonia Contracting Inc.

5.8 Cash Flow Statement Cash Flow Statement Pre-Launch

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

OPERATING ACTIVITIES: Operating Income / (Loss)

$0

$289,240

$241,547

$558,024

$815,040

$946,598

Taxes Payable

$0

-$98,342

-$82,126

-$189,728

-$277,113

-$321,843

Change in receivables

$0

-$18,878

-$944

-$991

-$1,041

-$1,093

Change in payables

$0

$7,693

$385

$404

$424

$445

Net Working Capital

$0

-$98,342

-$82,126

-$189,728

-$277,113

-$321,843

Capital Expenditures

-$4,400

$0

$0

$0

$0

$0

-$4,400

$190,898

$159,421

$368,296

$537,926

$624,755

Proceeds from Financing Activities

$4,400

$0

$0

$0

$0

$0

CASH FLOWS FROM FINANCING

$4,400

$0

$0

$0

$0

$0

$0

$190,898

$159,421

$368,296

$537,926

$624,755

$0 $0

$0 $190,898

$190,898 $350,319

$350,319 $718,615

$718,615 $1,256,542

$1,256,542 $1,881,296

Changes in working capital:

NET CASH OPERATING ACTIVITIES: CASH FLOWS FROM FINANCING

Net change in cash and cash equivalents Cash and cash equivalents at beginning of yr Cash and cash equivalents at end of year

2015 BUSINESS PLAN - JULY 2015

23

Apollonia Contracting Inc.

5.9 Benchmarks and Break Even Analysis Benchmarks & Break Even Analysis FY 2015

FY 2016

FY 2017

$ 588,165

$ 843,967

Average

$ 269,840 $ 345,487

Cost of Goods Sold

$ 213,600 $ 224,280 $

2,904,746 $ 5,278,773 $ 7,653,388 $ 3,254,957

Total Costs

$ 483,440 $ 569,767 $

3,364,107 $ 5,866,938 $ 8,497,356 $ 3,756,322

Total Sales

$ 772,680 $ 811,314 $

3,922,132 $ 6,681,978 $ 9,443,953 $ 4,326,411

Break Even Units Sold

24

459,361

FY 2019

Operating Expenses

Units Sold

$

FY 2018

$

501,364

156

164

176

188

200

177

75

96

79

79

94

83

2015 BUSINESS PLAN - JULY 2015

Apollonia Contracting Inc.

6 Appendix 6.1 Resume of Fierez Dumani

2015 BUSINESS PLAN - JULY 2015

25

Apollonia Contracting Inc.

6.2 Resume of Afrim Spahiu

26

2015 BUSINESS PLAN - JULY 2015

Apollonia Contracting Inc.

6.3 Reference Letter for Afrim Spahiu

2015 BUSINESS PLAN - JULY 2015

27

Apollonia Contracting Inc. Business Plan