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Free Gold Mine Business Plan
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1.0 Executive Summary
The purpose of this business plan is to raise $600,000 for the development of a private gold mining
business while showcasing the expected financials and operations over the next three years. Gold Mine,
Inc. (“the Company”) is a New York based corporation that will excavate gold from leased mines within
United States. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the Company intends to acquire land leases on properties known to have gold
deposits. The business will then develop gold mines on these properties with the intent to extract, smelt,
and package the gold into bars for sale onto the open market. The initial capital sought in this business
plan will allow the business can acquire its first land lease while concurrently sourcing the equipment
needed to operate a moderate sized gold mining operation. It should be noted that at all times, the
business will comply with all applicable federal, state, and local laws (including OSHA) in order to ensure
the safety of all employees working at the Gold Mine site. The third section of the business plan will
further describe the gold mining operations conducted by the Gold Mine, Inc.
1.2 The Financing
At this time, Mr. Doe is seeking $600,000 of private funds for the development of the Company’s gold
mining operations. Tentatively, Management is seeking to sell a 40% interest in the business in
exchange for the capital sought in this business plan.
1.3 Mission Statement
Gold Mine’s mission is to cost effectively extract gold from known precious metal deposits with the intent
to sell the refined precious metal to the open market.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of gold mining experience.
Through his expertise, he will be able to bring the operations of the business to profitability within its first
year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials
over the next three years.
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ProformaProfitandLoss(Yearly)
Sales $655.290 $714.266 $778.550
OperaingCosts $377.526 $391.666 $424,768
EBITDA $212,235 $251,173 $275.927
Taxes,Interest,andDepreciation $99.649 $108.901 S117.691
NetProfit $112.595 $148.165 S164.129
sales,Operatingcosts,andProfitForecast
$800,000.
$700.000
$800.000.
$600.000
$400.000 Sales
$300,000 DEBITDA
$200,000
Profit
$100.000.
SO
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation.
As the business becomes profitable it will make substantial reinvestments into the Company’s gold
mining infrastructure. Additionally, the Company may seek to acquire additional land leases on proven
grounds for gold mining.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Gold Mine, Inc. The business is registered as a for profit corporation in the State of New York.
2.2 Required Funds
At this time, the Company requires $600,000 of equity funds. Below is a breakdown of how these funds
will be used:
ProjectedStartupCosts
InitelLeasePaymentsandDeposits 525.000
WorkingCapital $65.000
FF&E $25.000
LegseholdImprovements $10.000
SecurityDeposits $2,500
OpeningSupplies $10.000
ComoanyVenieandeaserooste $20.000
marketingSudost $10.000
MiscallamousanIntreessoCosts $7,500
TotalStartupCosts $175.000
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2.3 Investor Equity
At this time, Mr. Doe is seeking to sell a 40% interest in the business in exchange for the capital sought
in this business plan. The investor(s) will receive a seat on the board of directors and a regular stream of
dividends starting in the first year of operations.
2.4 Management Equity
After the requisite capital is raised, Mr. Doe will retain a 60% ownership interest in the business.
2.5 Exit Strategy
The Management has discussed and planned for three possible exit strategies. The first strategy would
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be to sell the Company to a larger entity at a significant premium. Since, the precious metals mining
industry maintains a moderately low risk profile once the business is established; the Management feels
that the Company could be sold for ten to fifteen times earnings.
3.0 Products and Services
As stated in the executive summary, the Company intends to operate in a gold mining capacity. Prior to
the onset of operations, Mr. Doe will have acquired a land lease on a property that is known to have gold
deposits. At this time, it is unclear as to the method that the Company will use in order to extract gold.
The most profitable method of exacting gold would be to lease an existing gold mine facility with the
intent to pan gold deposits from the underlying soil. This manual method of gold acquisition would
provide the greatest return on investment for the business. The Company, depending on its land lease,
may engage in sluicing/dredging if the land is known to have a significant amount of gold that is buried
deep within the ground. Mr. Doe is also sourcing the necessary equipment so that the business can
immediately begin its operations once the land lease has been acquired. The gold mining facility will
also have all of the necessary chemical treatment and smelting equipment to allow the business to
shape its collected gold into 1 kilogram bars for resale to the open market.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the gold mining industry, the customer
profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic market condition in the United States is moderate. The meltdown of the sub
prime mortgage market coupled with increasing gas prices has led many people to believe that the US is
on the cusp of a double dip economic recession. This slowdown in the economy has also greatly
impacted real estate sales, which has halted to historical lows. However, gold mines operate with great
economic stability as it is a product that is in continued demand. This is especially true in today’s
economic environment as inflation has pushed the per ounce price of gold up substantially over the last
12 months. As long as commodity prices continue to rise, the business should have no issues producing
a continuous profit from its gold mining operations.
4.2 Industry Analysis
Mining, beneficiating, and quarrying of gold is a $3 billion dollar a year business in the United States.
Within the industry there are over 200 domestic providers of gold mining operations that operate within
20 states. The industry employs more than 10,000 people and provides adjusted annualized payrolls in
excess of $500,000,000 dollars. The growth rate of this industry has been tremendous with the recent
resurgence of inflation. The prices of gold (and other precious metals) have increased substantially as
investors have sought the safe haven of commodities in lieu of the falling value of the dollar. Additionally,
the greater wealth of developing nations has pushed the per ounce price of gold passed $800. This
demand is expected to remain strong in the face of inflationary pressures.
4.3 Customer Profile
As Gold Mine, Inc. intends to sell its gold directly to wholesalers in the open market, is it difficult to
determine the “average customer” of the business. Any company engaged in the buying and selling of
gold is a potential buyer for the Company.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to
writing a strong competitive analysis is that you do your research on the local competition. Find out who
your competitors are by searching online directories and searching in your local Yellow Pages. If there
are a number of competitors in the same industry (meaning that it is not feasible to describe each one)
then showcase the number of businesses that compete with you, and why your business will provide
customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The marketing campaigns required by Gold Mine are minimal as the business will sell its mined gold
directly to the open market. As such, it is imperative that any marketing expenditures undertaken by the
Company focus on developing relationships with gold wholesalers and property management firms that
will seek and lease land to the business.
5.1 Marketing Objectives
• Develop relationships with specialty property management firms that will lease land to the
business for its gold mining operations.
• Establish relationships with gold wholesalers within the targeted market.
5.2 Marketing Strategies
Prior to the onset of operations, Mr. Doe will develop ongoing purchase order relationships (based on
market prices) with national and international gold dealers and wholesalers that will acquire the
Company’s inventory of mined gold. In order to complete this aspect of Gold Mine marketing operations,
Mr. Doe will directly contact well known gold wholesalers. As these buyers are constantly searching for
new gold sources, developing these relationships will not be an issue. Additionally, the Company will
make its presence known among real estate agents and property management firms that specialize in
the sale and placement of leases for land that is known to carry precious metal deposits. Much like with
the gold wholesalers/dealers, Mr. Doe will directly contact these companies in order to develop working
relationships.
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5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much
information as possible about your pricing as possible in this section. However, if you have hundreds of
items, condense your product list categorically. This section of the business plan should not span more
than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
SeniorManagement
OperationsStaff AdministrativeStaff
CustomerService Accounting
FacilitiesManagement Sales-Marketing
Administrative
6.2 Organizational Budget
PersonnelPlan-Yearly
Year 3
lowners $65,000 $66,950 $63.959
Associate 350.000 Seasin $53.045
OOKKEEOEI $58,000 $59.740 $61.532
TaxStaff(Seasonal) $45.000 $46,350 $63.654
AdministrativeStart $26,523
Total $243.000 $250.290 $273,712
NumbersofPersonnel
Year
Associate
Bookkeener
TaxStaff(Seasonal)
AdministrativeStaff
Totals
PersonnelExpenseBreakdown
10%
26% ©Owners
19% •Associate
•Bookkeeper
•TaxStaff(Seasonal)
21% DAdministrativeStaff
24%
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography about your work
experience, your education, and your skill set. For each owner or key employee, you should provide a
brief biography in this section.
7.0 Financial Plan
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7.1 Underlying Assumptions
• The Founder will acquire $600,000 of equity funds to develop the business.
• Mr. Doe will sell a 40% equity interest in the business in exchange for the requisite capital
sought in this business plan.
• Gold Mine, Inc. will have an annual revenue growth rate of 16% per year.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. In an economic
recession, the demand for gold decreases as people will have less discretionary income. However, in
today’s economic climate, inflation has become a serious concern, and investors have driven up the per
ounce price of gold substantially as a safe investment to hedge against inflationary risks. As such, the
business should have very few issues regarding top line income.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
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7.6 Cash Flow Analysis
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7.7 Balance Sheet
7.8 General Assumptions
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7.9 Business Ratios
Expanded Profit and Loss Statements
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Expanded Cash Flow Analysis
CashFlowAnalysis(FirstYear)
2 3 5 6 7
CashFromOperstions $19.760 $19.902 $20.043 $20.185 $2.194 52.289 $2.385 $2.480
echEmmReceivedes s. s0 SO SO SO 50 SO
OperatingCashInflow $19.760 s19.902 $20043 $20185 $2,194 $2,299 $2,385 $2,
OtherCashInflous
EquityInvestment $25,000 s0 SO SO 50 50 50 SO
IncressedBorrowngs $150.000 SO SO 50 Sa SO
SalesofBushessAssets SO SO 50 50 50 SO
A/PIncresses $3.159 $3.159 $3.159 $3.159 $3.159 53.159 53.159 53159
TotalOtherCashInflows $178.159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159
TotalCashInflow $197,918 $23,060$23.202 $23.344 $5,352 $5,448 $5,543 $5,638
CashOutflows
reogvmentorFmcog s775 $781 $787 se s799 $805
A/PDecregses $2.075 $2.075 $2.075 $2075 $2.075 $2.075 52.075
Arncregses s0 so SO sO SU
AssetFurchases s82.500 so so SO SU
Traens s0 so sO SO sO sO SO
TotalCashOutflows $25350 $2,856 $2.862 §2.857 $2.873 $2,879 $2,885 $2,892
NetCashFlow $112,568 $20.204 $20.340 $20.476 $2,479 $2,568 $2,658 $2,747
CashBalance $112,568 $132,773 $153,113 $173.590 $176,069 $178,637 $181295 $184,041
CashFlowAnalysis(FirstYearCont)
anto 12
CochEmmdroretions $2,575 $21.037 $2,767 $2.862 $118.479
CochEmmRecorehps SO s0 50
OperaingCashInflow $2,575 $21.037 $2,767 $2,862 $118.479
OtherCashInflows
EquityInvestment SO SO $25,000
IncressedBorrowngs SO SaTT $150.000
SalesofBusinessAssets SO
APIcesses $3.159 S3159 53159 S3159 $37.902
TotalOtherCashInflows $3.159 S3159 $3.159 SCRO $212.902
TotalCashInflow $5,734 $24.196 $5,925 $6,021 $331,381
CashOutflows
reogvmentofFmcog $923 $$29 $842 $9.695
A/-Decregses $2,075 $2,075 ..
A/rincregses SO
AssetFurcheses SO 50
bmdenos SO SO 594.783 $94.783
TotalCashOutflows $2,898 $2.904 $2,910 $97,699 $211,876
NetCashFlow $2,836 $21,292 $3,015 S91.679 59.006
CashBalance S186,878 S208,170 $211,185 $119,506 $119,506
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