should involve 3-5 partners, 1-3 consultants, 1 strong editorial/graphic person with good staff support, 1 strong marketing person, an office manager, and a secretary. Later we add more partners, consultants and sales staff. Founders' resumes are included as an additional attachment to this plan. 6. 3 Personnel Plan The detailed monthly personnel plan for the first year is included in the appendices. The annual personal estimates are included here as Table 5. Personnel Plan 1995 1996 1997 _________________________________________________________________ Partners $144,000 $175,000 $200,000 Consultants $0 $50,000 $63,000 Editorial/graphic $18,000 $22,000 $26,000 VP Marketing $20,000 $50,000 $55,000 Sales people $0 $30,000 $33,000 Office Manager $7,500 $30,000 $33,000 Secretarial $5,250 $20,000 $22,000 Other $0 $0 $0 Subtotal $194,750 $377,000 $432,000 7. 0 Financial Plan We will maintain a conservative financial strategy, based on developing capital for future growth. 7. 1 Important Assumptions The table in this section summarizes key financial assumptions, including 45-day average collection days, sales entirely on invoice basis, expenses mainly on net 30 basis, 35 days on average for payment of invoices, and present-day interest rates. General Assumptions 1995 1996 1997 _________________________________________________________________________ Collection days 43 45 45 Payment Days 35 35 35 1995 1996 1997 _________________________________________________________________________ Short Term Interest Rate 8.00% 8.00% 8.00% Long Term Interest Rate 10.00% 10.00% 10.00% Payment days 35 35 35 Tax Rate Percent 0.00% 0.00% 0.00% Expenses in cash% 25.00% 25.00% 25.00% Sales on credit 100.00% 100.00% 100.00% Personnel Burden % 14.00% 14.00% 14.00% 7.2 Key Financial Indicators The chart summarizes key financial benchmarks. Unfortunately, as we increase sales we will have to show a decline in performance of collection days and gross margin. 7. 3 Brea...
