As for the sales forecast, after acquiring Two Businesses with Debt of $150,000

25% Profit Earned per Month of the Client Sales

Considering a Hypothetical Business Profile: Out of Each business $50,000 debt will be paid after the sighing of the contract.

5. Business Revenue is $1,000,000 a year
6. COGS $750,000 (At average Markup of 25%)
7. Expenditure - $75,000
8. Profit - $175,000
9. Net Profit $131,250

Our Share of Profit = $43,750 Profit will be Divided into Two parts

Fixed Income 60% - $26,250

Liquid Income 40% - $17,500 to be Traded furthermore until it reaches Six times its value within 3 to 6 months of timeframe - $105,000 (6*But Profit multiple of 4 times is very well acceptable)

6X Trading Profit $105,000

Out of which 28.6% would be reinvested into the Client Business in the form of direct debt payoff, which is $30,000

Our Trading Profit $75,000

Now If our Firm has Three such business Clients, the income or to say sales forecast looks like this.

Everything is Multiplied by 3, because the forecast is shown for two business clients together with same business profiles.

1-year Forecast for profit with 3 Clients.

Month	Fixed Income	Trading Income	Client-Business Re-investment
M1	$6,562.50	$18,750	$7,500
M2	$6,562.50	$18,750	$7,500
M3	$6,562.50	$18,750	$7,500
M4	$6,562.50	$18,750	$7,500
M5	$6,562.50	$18,750	$7,500
M6	$6,562.50	$18,750	$7,500
M7	$6,562.50	$18,750	$7,500
M8	$6,562.50	$18,750	$7,500
M9	$6,562.50	$18,750	$7,500
M10	$6,562.50	$18,750	$7,500
M11	$6,562.50	$18,750	$7,500
M12	$6,562.50	$18,750	$7,500
Total	$78,750	$225,000	$90,000

Total Revenue - $393,750 - $90,000 = $303,750

Fixed Expenditure - $35,000

Profit - $268,750

Net Profit Per Partner - $67,187.50

5-Year Forecast (Until the debt is paid off for our Clients)

Year	Fixed Income	Trading Income	Client Debt Payoff & Reinvenstments
1	$78,750	$225,000	$90,000
2	$78,750	$225,000	$90,000
3	$78,750	$225,000	$90,000
4	$78,750	$225,000	$90,000
5	$78,750	$225,000	$90,000
Total	$393,750	$1,125,000	$450,000

Total Revenue - $1,968,750 - $450,000 = $1,518,750

Fixed Expenditure - $175,000

Profit - $1,343,750

Net Profit Per Partner - $335,937.50

This was a theoretical forecast based on secondary research data, real life forecast would be much more stable due to the contract agreements based with the clients.

The Hypothetical business was just a logical representation of the forecast system, real life data can not be obtained or speculated, because such data is either highly classified or is too extensive to understand.

• These were Debt Management Client Forecast and Now comes Management Client Services Forecast.

Management Services Fee Structure: HR professional and General Manager Fee Varies.

• Hourly Fee - $30 / Hour (start at $30)
• One Month Hire $2,000 (6hrs, 3days a week)
• Three Month Hire - $13,500 (Full Time)

Let assume we have 12 clients in Toronto with Ten having One Month Hire, and 2 Clients with Three Months Hire.

Month	One Month Hire	Three Month Hire
m1	$2100
m2	$2100
m3	$2100
m4	$2100
m5	$2100
m6	$2100
m7		$13,500
m8	$2100
m9	$2100
m10	$2100
m11	$2100	$13,500
m12
Total	$21,000	$27,000

Total Revenue - $48,000

Salary Expense at Hourly rate of $22.50 - $37,800 (Total 1680Hours)

Profit - $10,200

There are many Optional Services to be included, which increases the profit spectrum, but most of the services are at genuine rate, new contract managers would be included as doe the demands seem forfeit.

Part 1

• Are these considerations feasible? Would you change or add any considerations?
• As a lender (someone lends a sum of money to the company which in exchange commits to pay the lender interest and to repay the principal based on an agreed schedule) to this company, what are some numbers you want this entrepreneur to show you before you make your decision to give them money?