Lost? A Shoe Radar Could Get You Back on Track in a GPS Dead Zone
by Bridgette Meinhold, 12/07/10
Sure, you have your GPS-enabled phone, a built-in navigation device in your car, and maybe even a TomTom for backup, but drop out of satellite range and you’re SOL. Researchers at North Carolina State and Carnegie Mellon Universities, however, have uncovered a way of putting you back on the map even if you’ve lost your signal. Their solution? Embedding a radar inside your shoes.
CAN YOU FIND ME NOW?
Although GPS devices have been a godsend to the directionally challenged, they mean zip if you’re in a signal-free zone like an underground cave, a dense forest, or the subterranean depths of a shopping mall.
GPS devices mean zip if you’re in a signal-free zone like an underground cave or a dense forest.
One solution is using inertial measurement units (IMUs), which are electronic devices that measure how quickly you accelerate (or decelerate) to determine how far you’ve moved from your starting point. The problem is IMUs aren’t always accurate. If the device thinks you’re moving at 0.1 meter per second when you’re standing perfectly still, for instance, it can throw you off your actual position by 18 meters within three minutes.
HOW ABOUT NOW?
To address the problem of accumulating errors, the scientists attached a portable radar sensor to a shoe. The radar is linked to a small navigation computer that tracks the distance between your heel and the ground, so if that measurement doesn’t change over a given period of time, the computer knows that you’re stationary.
To address the problem of accumulating errors, the scientists attached a portable radar sensor to a shoe.
“By resetting the velocity to zero during these pauses, or intervals,” says Dan Stancil, head of NC State’s Department of Electrical and Computer Engineering, “the accumulated error can be greatly reduced.”
In other words, on your next trip to the mall, you’ll know exactly how to get back to your car.
Marketing:
http://www.constantcontact.com/index.jsp
Antenna-Embedded Clothing Offers Discreet, Hands-Free Communication
by Bridgette Meinhold, 08/25/11
As convenient as hands-free devices may be, they’re not exactly the most stealthy. Researchers at Ohio State University are working to do your wireless earpiece one better with a new breed of communication system sewn directly into your clothing. Using etched brass, plastic film, and metallic thread, associate professor Chi-Chih Chen and his team constructed a prototype vest with four times the range of a conventional antenna worn by American soldiers today. Since communications reliability is seldom aligned with mobility, military personnel, firefighters, policemen, and even astronauts could benefit from lighter loads and stronger signals.
To communicate in the field, soldiers are burdened with large and cumbersome antennas on top of an already unwieldy load. Although the idea of embedding technology into clothing isn’t a novel one, Chen and his colleagues say they’re the first to add a unique computer control device that lets multiple antennas work together in a single garment. The Ohio State system, which sends and receives signals in every direction, can also operate through walls and other obstacles.
The Ohio State system, which sends and receives signals in every direction, can operate through walls and other obstacles.
With sewing machines at the ready, the engineers are working on embroidering the antennas into clothing with metallic threads. Early tests have shown that swirly designs on fabrics such as cotton and even taffeta can function as antennas, which is why John Volakis, director of the school’s ElectroScience Laboratory, envisions clothing for the elderly or disabled that allows them to communicate in emergencies without the stigma of more-visible assistive devices.
“Imagine a vest or shirt, or even a fancy ball gown made with this technology,” he adds. “The antennas would be inconspicuous, and even attractive. People would want to wear them.”
Retail Clothing Business Plan
1.0 EXECUTIVE SUMMARY
1.1 COMPANY
Booming Boutique is a start-up retail establishment that will sell fashionable clothing to women of the Baby Boom generation. Booming Boutique will be located in downtown Pleatsville, Florida, which is a popular retirement and tourist destination. While our initial goal is to open one boutique, expansion plans include potentially franchising our retail store and/or building a well-recognized brand name. In turn, we would hope to penetrate a sizable portion of the online retail market.
1.2 PRODUCTS & SERVICES
The fashion and retail industry tends to be overly youth focused. However, by closely following generational fashion trends as well as our own customers' purchasing preferences, we will tailor our inventory to meet the specific needs of our clientele. We will solely focus on the our styles, colors and fits to flatter the lady Baby Boomer/ Meeting the needs of her figure will be our specialty.
1.3 MARKET ANALYSIS
The total sales reported in the U.S. retail industry in 2007 (including food service and automotive) exceeded $4 trillion. There are roughly 75 million Baby Boomers, half of which are women. In Pleatsville, the current population is just fewer than 40,000. 54 percent of the total population is women who have a median age of 48. The median income is $48,600. We will initially seek customers locally, but will increase our reach as we build our brand and secure our image.
1.4 STRATEGY & IMPLEMENTATION
Booming Boutique recognizes the importance of marketing. And to that end, we plan to promote our retail business with an ambitious, targeted marketing campaign, which will include a grand opening event, local media coverage, print advertising and a direct-mail campaign. Our goal is to keep our marketing budget to no more than 5% of our gross annual sales, and we will partner with local organizations such as the Chamber of Commerce and Downtown Merchants Association as often as possible.
1.5 MANAGEMENT
Robin Mathews and Joanna Jensen are co-owners and will co-manage Booming Boutique. Mathews has worked ten years in the retail industry, including four years as the manager of an antique furniture shop. She earned a BA degree in finance from Britannica College in Tampa, Florida.
Jensen’s experience lies in the fashion industry. She’s worked with designers, wholesalers and retailers for roughly 20 years. Jensen holds a BA in fashion merchandising from Colliers Fashion Institute in Miami, Florida.
1.6 FINANCIAL PLAN
Our company will earn revenue from our customers' purchases of our products. Booming Boutique’s first-year income statement illustrates a profit margin of at least fifty-two percent, with a net income of $44,075 per month - after taxes. Finally, we have determined our break-even point will equal no less than $15,500 in total monthly sales. We project our annual profits to reach $380,000 by year three.
Our company will generate revenue from the retail sale of clothing and other merchandise. First year sales are projected at $285,000, and we expect sales to surpass $525,000 by the end of year three. We will achieve month-to-month profitability within the first year.
1.7 SOURCES & USE OF FUNDS
Booming Boutique requires $282,000 to launch successfully. We’ve already raised $62,000 through personal investments and a small community grant.
We are currently seeking additional funding from outside angel investors and business loans. Start-up funds will be used for renovations, inventory and operating expenses such as rent, utilities and payroll. Further, our initial investment will also be used to purchase retail equipment and inventory software - all of which will produce future benefits for the company.
2.0 COMPANY
2.1 COMPANY & INDUSTRY
Booming Boutique will be located in downtown Pleatsville, Florida. Our company is a retail establishment selling fashionable women's clothing to up-and-coming Baby Boomer retirees. Our business operates within the retail industry and is classified under NAICS code 448120 – women's clothing stores.
2.2 LEGAL ENTITY & OWNERSHIP
Booming Boutique is a multi-member Limited Liability Corporation formally organized in Florida. Robin Mathews and Joanna Jensen are the company's principle owners. We hold equal shares of ownership in the company.
2.3 COMPANY HISTORY TO DATE
The Company is a new business aimed at providing women of the Baby Boom generation stylish clothing options to buy and wear. As the company's founders and as Baby Boomers ourselves, we found that Florida’s current boomer-wear market is missing the mark. In fact, most clothing shops for the 55+ set are still selling clothes that our grandmothers would have worn. As our local population ages and more Baby Boomers reach retirement-age and migrate to Florida, we recognize the need for a shop that caters to the up-beat, fashion-forward Baby Boomer generation.
2.4 FACILITIES
Presently, Booming Boutique does not have a bricks-and-mortar location. However, we have identified an ideal spot in the downtown district of Pleatsville. The gorgeous area includes numerous restaurants, an art gallery, coffee shop, candy store and a picturesque park in the town square. We have signed a three-year lease for a 1,700 square foot building at $13 per square foot. Comparable properties are renting for $12-18 SF/Year.
Working with the property owner and the City of Pleatsville Downtown Redevelopment Committee, we have secured a $1,000 grant to beautify the façade of the building to include painting, signage and a new awning. Only slight internal renovations will be required - such as the installation of dressing rooms and decorative items.
When considering the addition of wall mounts for merchandise, multi-level clothing displays as well as creative floor planning, this facility is large enough to support future growth. Additionally, we will be able to conduct all aspects of our business from this location. This includes deliveries and shipments, inventory management and administrative duties such as finance, buying and marketing.
2.5 KEY ASSETS
Our key assets are our co-owners, Robin Mathews and Joanna Jensen, who bring tremendous experience and relationships to this business.
Once Booming Boutique is launched, our primary asset will be our brand, which will convey style, quality and a great shopping experience. In the long term, it is this brand that will separate Booming Boutique from other retailers both locally and nationally.
3.0 PRODUCTS OR SERVICES
3.1 DESCRIPTION
Booming Boutique will sell a combination of widely recognized name brands as well as clothing lines from select fashion designers. We will closely follow generational fashion trends as well as our own customers' purchasing preferences. Moreover, we will tailor our inventory to meet the needs of our “boomer” clientele. Solely focusing on the styles, colors and fits to flatter the female Baby Boomer's figure will be our specialty. While apparel, such as business clothing, casual wear, jeans and formal wear will be our main staple, we will also offer some accessories such as belts, scarves, and hats.
Profits will be earned via the sale of our merchandise. Our pricing structure will remain flexible, as we will implement suggested retail pricing on common brands as well as the standard practice of keystoning prices. Additionally, we will utilize a value-based pricing structure, which measures the value of our products to our customers such as easy access, quality, customer service and styles flattering to our target consumer. End of season sales, holiday and overstock sales, multi-buy savings and promotional coupons will be implemented at strategic intervals.
3.2 FEATURES & BENEFITS
One key feature that separates Booming Boutique from all other local boutiques and chain department stores in the area is our commitment to providing women of the Baby Boom generation stylish, quality clothing options. Because our primary concern will be ensuring our consumers are happy with the fit and style of their purchase, we will provide products tailored to all shapes and sizes of women. In addition, we will make every effort to have petite and plus size versions of our merchandise in stock. If they are not in stock, ordering them will be easy, cheap and efficient.
Further, Booming Boutique will not just be a store that sells clothes. Our clientele will benefit from an experienced, knowledgeable sales staff. Out of the gate, our goal is to implement a superior customer service system. Beyond our friendly reception and an inviting atmosphere, Booming Boutique will also offer customers fashion information and advice. Our trained personnel will provide counsel that women simply cannot find at other clothing stores. The service will be likened to a beautician who offers advice on what hair styles best complement his/her client’s face. Our hip and qualified fashion-industry expertise will ensure our customers walk away with the perfect outfit.
3.3 COMPETITION
In Pleatsville, there are no direct competitors offering our unique services or targeting Baby Boomers specifically. In the Downtown District, the shops most closely competing with Booming Boutique are as follows:
- EcoWise Boutique, which targets a younger demographic and specializes in natural fiber clothing. They also carry local art and jewelry.
- Caddy Corner Kids, which targets parents shopping for children, specializes in children's clothing, accessories and toys.
- Kati Kouture, which targets younger women, specializes in offering industrial chic clothing with "classic lines and a punk gothic edge."
- Marjorie Joe's Fashion & Gifts targets older women within our target demographic, but specializes in the more homemade, old-fashioned style clothing.
- Petal Place Boutique targets women within our target demographic as well, but they specialize in an affordable, folksy style of clothing with handmade shawls and embroidered shirt sets.
- Second Time Around targets women and may overlap our target demographic slightly. However, they specialize in consignment clothing.
There is one super-store within a 60-mile radius of Pleatsville. The store is similar to Wal-Mart in that it sells lesser quality items at lower price. But there are two chain department stores. They sell men's, women's and children's clothing along with home accents, electronics and appliances. While familiarity is comforting, industry research indicates increasing frustration with the inferior quality, sub par customer service and vastness of super-stores. Not to mention, the inept sales staff and lack of selection often found at department stores.
3.4 COMPETITIVE ADVANTAGE/BARRIERS TO ENTRY
To date, our primary competitive advantage is the absence of any store like ours in the Pleatsville area. In addition, company co-owner, Joanna Jensen, has worked in the fashion industry for more than 20 years. Her experience includes working with apparel retailers, clothing wholesalers, garment manufacturers, and fashion designers. She understands the fashion industry and knows how to spot the latest trends.
While there is no guarantee a competitor will locate within our area, we have no doubt in our fashion sense, outstanding customer service and quality products. In turn we will quickly establish Booming Boutique as the place for lady Baby Boomers to shop.
Also, we would be the only niche fashion retail-store for hip, older women. While other stores offer some style equivalents, they are not focused solely on the baby boomer generation. We are, and therefore, have a distinct competitive advantage in our niche.
Our supplier relationships and exclusive product offerings will prevent future competitors from entering the market as a competitor. Also, it takes time to build a retail store, and by the time a competitor attempts to compete with us directly, we will have already established a strong customer base.
3.5 DEVELOPMENT
As our company grows and our boutique earns a positive reputation, several opportunities will open to us. And we are considering some options already. Should we choose to remain a small local boutique, we will develop and grow our company by increasing existing clothing lines and expanding our selection to include additional products such as swim wear, lingerie, or sportswear. Within five years, we will assess the potential for franchising our stores in select locations.
Additionally, as we build our business, we plan to simultaneously develop an online Booming Boutique. The power and ease of an online storefront is obvious to us, and we plan to develop one quickly and efficiently. We also see the potential for regional and/or national expansion at some point.
4.0 MARKET ANALYSIS
4.1 TARGET CUSTOMER
Booming Boutique is a business-to-consumer retail company. Female Baby Boomers are our clear target customers. However, we do realize that we will likely attract some younger women with our peripheral products (handbags, scarves, etc.). Moreover, we expect a portion of our products to catch on with the younger generations. It’s important that we do not offer products that are exclusive to the older audience.
Having said that, there are currently about 75 million Baby Boomers living in the United States. A boomer is better described as the generation born between the years 1946 and 1964. About half of this population is women.
While those born in the 1940's are still slightly more conservative, those born during the 1950's and 60's were trailblazers and trendsetters. Specifically, these will be the women we target vigorously with our marketing and offerings. These women range in age from their mid 40's to late 50’s. They value uniqueness, convenience, service and quality. As they retire, price does become a factor in decision-making. At the same time, they were always a generation of the “buy now and pay later” philosophy.
4.2 MARKET SIZE
Pleatsville accommodates a robust retail market. While car dealerships, grocers and home improvement retailers account for a sizable portion of the retail market, the main local shopping district is downtown. With tree-lined streets and quaint shops and restaurants, the downtown retail district is the social and shopping hub of the community. The current population of Pleatsville is just fewer than 40,000. 54 percent are women who have a median age of 48. Their median income is above the national average at $48,600. Moreover, according to National News, Pleatsville is one of the 2008 Top 6 Towns to Retire for Baby Boomers. Many of these retirees are looking to retire on the water in a cozy, yet thriving community.
In addition to local consumers, we will also benefit from tourist traffic. Pleatsville is located a mere 30 miles from the sandy white beaches of St. Petersburg and Clearwater. It’s also within close proximity to many Tampa and Orlando area attractions. Our town boasts a healthy and recession-proof tourism industry. In addition, Pleatsville hosts several annual craft and golf events, which bring several thousand of our target consumers into the area each year.
4.3 TRENDS
The retail fashion industry is a solid business with ever-changing styles and ever-present consumer demand. While supercenters and megastores ruled the past two decades, more and more consumers are looking for change. They’re searching for a more serene and customer-friendly shopping experience. This is true especially for those nearing retirement age. In reality, as the Baby Boomers numbers decrease, there will be fewer older Generation X-ers to sell to. However, this market decrease will not occur for at least twenty years. Even then, clothing will always be in high demand. The fashion industry in America has been thriving since the advent of moving pictures.
4.4 SWOT ANALYSIS
Strengths
- Experience and understanding of the fashion industry
- Unique shopping experience with exceptional customer service
- Great downtown location
- Large and growing consumer base
Weaknesses
- Untested market in Pleatsville
- While market is large, it is a niche market (Baby Boomers)
Opportunities
- Outstanding shopping experience will lead to repeat business
- Growing online Booming Boutique
- Establish a Booming Boutique clothing line
Threats
- Cost and effectiveness of marketing to women “Baby Boomers”
- New retail shops that may or may not open in the future
5.0 STRATEGY & IMPLEMENTATION
5.1 PHILOSOPHY
Our company's core business strategy is to combine exceptional and knowledgeable customer service with quality stylish merchandise. And n turn, we’ll provide an enjoyable shopping experience for our customers. Booming Boutique's mission is to offer women of the Baby Boom generation a wide selection of fashionable, figure-flattering clothing. Our aim is to establish our company as a pioneer in this youth-obsessed industry and build a boutique brand name that will be synonymous with the fashion industry revolution.
5.2 PRODUCT DEVELOPMENT
We are currently working with several apparel wholesalers, garment manufacturers and two freelance fashion designers to assemble our inventory. We are also working with city economic-development officials to secure all required permits and occupational licensees. Once financing is secured, we will move ahead with the façade renovation, which will be paid for via the PDRC, as well as purchasing inventory, retail displays, and office supplies. Prior to the grand opening of Booming Boutique, we will schedule an event with the Chamber of Commerce and commence with pre-publicity flyers, advertising and additional marketing activities.
5.3 INTERNET STRATEGY
As the Internet has become a staple of American life and retail merchandising, Booming Boutique will have a viable Web site. We have secured the domain name BoomingBoutique.com and will begin site development as funds become available. Further, we plan to hire an established Web designer that will accept modest pay in exchange for future profit-sharing. Foremost, we intend to showcase our brand, our clothing and provide customers with the ability to purchase items online. As the site progresses, we will include features such as fashion advice, designer interviews, newsletters, and Internet-only specials. Eventually, we hope to establish and nurture an online social community where women can gather and discuss topics of the day, network and share clothing secrets.
5.4 MARKETING STRATEGY
We both have strong marketing backgrounds and recognize the significance of effective marketing. We expect our strategy to draw consumers into Booming Boutique from the very beginning. Moreover we will hire a local PR firm to help us develop and implement a strategic marketing plan and guide our publicity efforts in a cost-effective manner. Our marketing message, logo and slogans will revolve around the idea of the Baby Boom generation as revolutionaries and trend setters. Boomer women are in their prime and at their best, meaning these women deserve to be recognized as a force within the fashion industry.
Our goal is to keep our marketing budget to no more than 5% of our gross annual sales. We will partner with local organizations such as the Chamber of Commerce and Downtown Merchants Association as often as possible. We already have connections in all the necessary places. These strategic partnerships will allow us to piggyback on publicity for local events, as long as they are within our targeted demographic. Booming Boutique's initial marketing efforts will remain local as we establish a presence in our community. These will rely heavily on local print and broadcast media coverage, traditional advertising, signage, a direct mail marketing campaign and networking. A significant portion of our advertising budget will be allocated to print and broadcast media.
Of course, we will build anticipation and excitement about the new boutique prior to its grand opening. Working in conjunction with the Chamber of Commerce, we are already talking about a grand opening soiree. This will include hors d'ouvres donated by the bistro across the street and a silent auction of a local artist's painting collection. The collection is currently on display in the Downtown Art League Gallery.
We will also hold a drawing for a $100 shopping spree and fashion consultation. Entry collection will start at the grand opening and continue throughout the week. Names and contact information will be utilized for follow up marketing initiatives. The Chamber of Commerce and the Downtown Merchants Association will promote the event in local newspapers and radio advertising. Comprehensive advertising and semi-annual direct mail marketing campaigns will follow the grand opening. Low cost publicity activities will also be taken advantage of such as posting sale flyers on community bulletin boards and online.
Finally, marketing opportunities will be continually utilized as we expand our business and our consumer numbers grow.
5.5 SALES STRATEGY
Booming Boutique plans to generate sales via strategic marketing efforts. These concentrated efforts will be targeting new and returning customers as well as single-visit tourist consumers. We will also implement a referral program rewarding customers who refer new customers with discount coupons. Following our grand opening, we will conduct a direct-mail campaign to targeted consumers that we have signed up through our in-store mailing program. The direct mailers will be comprised of 5,000 full-color postcard mailers. Each will include at 10% coupon. We will offer promotional discounts and seasonal and clearance sales throughout the year.
Booming Boutique will accept cash and payment via major credit and debit cards. Cash layaway plans will also be permitted. Returns and exchanges must take place within 30 days of purchase and receipts are mandatory.
Our sales staff will include both co-owners and 2-3 part-times sales associates. Combined, Jensen and Mathews have nearly 30 years experience in the fashion and retail industries. Comprehensive training will be provided to each sales associate – to include selling merchandise as well as how to provide fashion advice to customers. Our sales team will earn an hourly rate, plus a generous percentage of commission from each sale.
5.6 STRATEGIC ALLIANCES
Booming Boutique plans to join the Pleatsville Chamber of Commerce as well as the Pleatsville Downtown Merchants Association. These organizations are dedicated to promoting local businesses within our community and sponsor several events downtown each year. As a member of these organizations, Booming Boutique will gain exposure, make business contacts, and will benefit from Chamber and Association advertising, Web site promotions and events.
5.7 OPERATIONS
As a retail establishment, Booming Boutique will conduct business seven days a week from 10 a.m. to 6 p.m. Monday through Thursday, from 10 a.m. to 8 p.m. Friday and Saturday, and 12 p.m. to 6 p.m. on Sunday. During the holiday seasons and during special events, store hours will be extended. At this point, the retail store will take require approximately 2/3 of the building's available space. The remainder will be utilized for stock and administrative purposes. In addition to the two full-time co-owners, three part-time employees will be hired to serve customers.
Our company will secure merchandise from local manufacturers with showrooms in Orlando and Miami. We’ll also have access to the Florida Apparel Market, which is the largest wholesale merchandise warehouse in the state. Purchasing from FAM, buyers receive product displays and promotional materials with purchase. Additionally, we will work closely with our regional sales representative. We will also attend relevant pre-season fashion trade shows.
To control costs, track inventory and manage stock levels, an inventory control system will be set in place. This will include the standard bar code with its related equipment and software. Staff will conduct annual inventory audits and hire outside auditors when necessary. All accounting and finances will be maintained using Peachtree software.
5.8 GOALS
The following is a list of business goals and milestones we wish to accomplish our first year of operations.
- Complete renovating, stocking, hiring and initial marketing.
- Host a successful grand-opening event.
- Penetrate and raise awareness in 60 percent our targeted consumer market.
- Achieve a profit margin of 50 percent.
- Build a solid customer base and mailing list.
- Generate repeat and referral sales.
- Become a profitable business with expansion potential.
- Establish a solid reputation as quality retail establishment.
Our first major milestones will be securing funds and setting up our business. This is our major focus right now. In five years, we hope to have established our retail business within the community and within our industry. Furthermore, as co-owners, we would like to see the growth of our store with an increase in product lines, further penetration of the national market with online sales and, under the right set of circumstances, the opening of franchise Booming Boutiques in strategic locations.
5.9 EXIT STRATEGY
The co-owners intend to launch and grow Booming Boutique for many years into the future. In the event that our investors require repayment of their initial investments, plus a large return on their investments, we will seek a partner to buyout the investors’ shares. Another alternative is a management buyout, which will be agreed upon in advance.
In the long term, we will position Booming Boutique as a profitable business that will be an appealing acquisition for any number of retail chains.
6.0 MANAGEMENT
6.1 ORGANIZATIONAL STRUCTURE
As a small business, we will have a small staff. Both co-owners will assume leadership roles within the company and will be responsible for daily operations, overseeing marketing efforts, buying merchandise and managing inventory and all other administrative duties. A small sales staff will assist co-owners with securing sales, assisting customers and general maintenance of stock on the floor.
6.2 LEADERSHIP
Robin Mathews and Joanna Jensen are co-owners and will co-manage Booming Boutique. However, daily responsibilities will differ.
Robin Mathews will manage the day-to-day operations including supervising staff, maintaining inventory and bookkeeping. Mathews worked ten years in the retail industry including four years as a manager of an antique furniture shop. Mathews earned a BA degree in finance from Britannica College in Tampa, Florida.
Joanna Jensen will oversee the merchandise buying for the store as well as maintain a keen awareness of trends within the industry. She will also work with our public relations firm to ensure superior marketing plans are in place and implemented. Jensen worked in the fashion industry in various capacities working with designers, wholesalers and retailers for 20 years. She earned a BA in fashion merchandising from Colliers Fashion Institute in Miami, Florida.
6.3 STAFF MEMBERS
Booming Boutique will employ a sales staff of 3 part-time employees. These positions are yet to be filled. However, we feel the labor pool is such that finding qualified employees will not be an issue. Our sales associates will be paid an hourly wage, plus commission. Bonuses will be provided with each year of service following an annual review to encourage employee retention.
7.0 FINANCIAL PLAN
7.1 REQUIREMENTS
Booming Boutique will need $282,000 to get our business off the ground. We are currently seeking funding from outside investors and business loans.
At this time we have raised $50,000 in equity capital and an additional $12,000 for a specific-use grant. Both co-owners, Robin Mathews and Joanna Jensen, have invested $25,000 each into Booming Boutique. We are seeking investors for an additional $170,000 in equity investment and $50,000 in loans.
7.2 USE OF FUNDS
Funds will be used to pay for renovations, including the outside façade (to be paid for via PDRC grant), construction of fitting rooms, sales counter, painting, carpeting, lighting, decor and display fixtures. We will also purchase inventory, a cash register, computer equipment and an inventory management system. The remainder of the start-up funds will be utilized to cover operating expenses, such as rent, utilities, marketing costs and wages.
7.3 INCOME STATEMENT PROJECTIONS
Based on our marketing plans, location, store size and product offerings, we expect to collect annual sales of $285,000 in year one, $375,000 in year two and $525,000 in year three.
Our average cost of goods sold will be 40%, which leaves us with a gross margin of 60%. Our minimum monthly fixed costs are $15,500 per month, so we will need to generate sales of $25,833 per month to break even. We will become profitable on a monthly basis before the end of our first year.
In our third year, we will earn net income of $105,000. The accompanying income statement demonstrates our company's profitability.
7.4 CASH FLOW PROJECTIONS
Our business will collect immediate payment from customers, so our cash flow statement will be substantially similar to our income statement. Our cash flow statement clearly demonstrates our ability to cover all bills.
7.5 BALANCE SHEET
Booming Boutique will launch with $220,000 in equity capital and $50,000 in loans. Credit amounts and supplier terms for inventory will appear in our balance sheet as short-term liabilities. Jewelry consignments from vendors will not be documented in our balance sheet and will be expensed as these items are sold. Details are shown in our enclosed balance sheet.
7.6 ASSUMPTIONS
Our projections are based on the assumption that the economy, consumer spending habits and population growth in Pleatsville will continue for the foreseeable future.
We must also assume that our present and future suppliers will continue to sell inventory to us at prices that allow us to maintain our present margins. It is also important that we are able to hire reliable employees at reasonable wages.
Executive Summary
Mahogany Western Wear is a new apparel store that caters to the African-American cowboy community in Houston, Texas. As our name suggests our focus is to provide western wear apparel and accessories, and position ourselves as the top retail store servicing this particular market.We are the first and only African-American owned western apparel store in the city of Houston. Our intentions are to obtain 80% market share and become a central hub of shopping activity for the local African-American cowboy population as well others who enjoy wearing western apparel.
Mahogany Western Wear will be located at 13328 1/2 Almeda Rd., Houston, TX in southwest Houston, TX. Mahogany Western Wear has centralized itself directly in position to the residental location and social activities of our target market. We believe that this is critical to our initial success and long-term growth.
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1.1 Objectives
- To create a shopping environment that caters to the apparel needs of the urban African-American cowboy and cowgirl.
- To earn 80% market share and become the number one ethnic western wear apparel store in southwest Houston, TX and achieve name recognition in the local cowboy community.
- To receive a 50% profit margin within the first year.
- To have a customer base of 1,000 by the end of the first operating year.
- To achieve a net profit of $75,000 by year two and $100,000 by year three.
- To be an active and vocal member in the community supporting agricultural events, and equestrian organizations working with children.
1.2 Mission
Mahogany Western Wear's mission is to offer quality, name brand western wear in an assortment of sizes and styles to accommodate all varying body styles and shapes.1.3 Keys to Success
In order to succeed in the western wear apparel industry Mahogany Western Wear must:- Carry an assortment of sizes to fit the more ample frames of their African-American target customer base.
- Provide customers with top notch personalized customer service in an atmosphere of southern hospitality.
- Advertise and promote in areas that our target customer base will learn about our store.
- Continuously review our inventory and sales and adjust our inventory levels accordingly.
Company Summary
Mahogany Western Wear is organized as a partnership among the two partners of Chandra E. Miller and Derrick L. McCoy.We will be located at 13328 1/2 Almeda Rd, Houston, TX, being the epi-center of the African-American cowboy community on the south side of Houston.
The hours of operation will be Monday - Tuesday 10 a.m. - 6 p.m., Wednesday - Saturday 10 a.m. - 8 p.m., and Sunday 12 p.m. - 6 p.m. There will be extended special hours designated during The Houston Livestock Show & Rodeo season and during the Christmas holiday shopping season.
All merchandise will be purchased according to the company's mission and customer focus of outfitting all sizes including women's plus sizes and men's big and tall.
2.1 Company Ownership
Mahogany Western Wear is organized as a partnership among the two partners of Chandra E. Miller and Derrick L. McCoy. Chandra E. Miller will handle all administrative and managerial duties while Derrick L. McCoy acts as a silent partner.2.2 Start-up Summary
Mahogany Western Wear's incorporation costs are listed below. The company will start with three months inventory on hand for apparel and accessories as this is the main revenue generator. The majority of the company's assets will reside in inventory. The opening days cash on hand balance will be $384.The purpose of this business plan is to secure a $16,700 ACCION loan. This supplemental financing is required to work on site preparation, inventory, and operational expenses. The loan amount appears in the long-term liability row of the start-up summary. Other financing will include an owners investment of $5,100 and a short term revolving line of credit of $2,000 for inventory replenishment during months of high receipts.
Successful operation and building a loyal customer base will allow Mahogany Western Wear to be self sufficient and profitable in year two.
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Start-up Funding | |
Start-up Expenses to Fund | $9,416 |
Start-up Assets to Fund | $14,384 |
Total Funding Required | $23,800 |
Assets | |
Non-cash Assets from Start-up | $14,000 |
Cash Requirements from Start-up | $384 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $384 |
Total Assets | $14,384 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $16,700 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $2,000 |
Total Liabilities | $18,700 |
Capital | |
Planned Investment | |
Owners Investment - Cash | $5,100 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $5,100 |
Loss at Start-up (Start-up Expenses) | ($9,416) |
Total Capital | ($4,316) |
Total Capital and Liabilities | $14,384 |
Total Funding | $23,800 |
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Start-up | |
Requirements | |
Start-up Expenses | |
Rent | $1,606 |
Grand Opening Event | $400 |
Telephone & Utilities (3 months) | $1,575 |
Travel - Dallas Market Buying Trip | $350 |
Business Insurance | $600 |
Advertising & Promotion | $1,010 |
Store Fixtures/Decorations | $1,500 |
Computer/Cash Register | $950 |
Signage (Including Permits) | $400 |
Organizational Dues & Subscriptions | $125 |
Business/Office Supplies | $400 |
Other | $500 |
Total Start-up Expenses | $9,416 |
Start-up Assets | |
Cash Required | $384 |
Start-up Inventory | $14,000 |
Other Current Assets | $0 |
Long-term Assets | $0 |
Total Assets | $14,384 |
Total Requirements | $23,800 |
2.3 Company Locations and Facilities
Mahogany Western Wear will be located at 13328 1/2 Almeda Rd., Houston, TX 77045. This space has 1,020 square feet and has been leased for two years. This location is central to the geographical location for the African-American cowboy community in the southern part of Houston, TX. We feel it is essential to our initial and ongoing success that we locate ourselves in the heartbeat of the community. We also strive to create an atmosphere of acceptance and community, as well as a retail environment where individuals can identify and bond with their culture.All business deliveries and shipments will be handled through the store. The company office will also be housed at this location.
Products
Mahogany Western Wear will carry nationally recognized American western wear brands (see list below). Our selection will range from the basics of Wrangler to the trendy western style of Western Ethics. We will be purchasing through sales representatives and manufacturers in a variety of sizes, colors and style to fit our target market base. The greatest percentage of merchandise will be in apparel, followed by accessories, hats, and gifts. Management will rely on customer feedback, suggestions, and sales reports to introduce or eliminate certain brands, styles and sizes.
3.1 Product Description
Mahogany Western Wear will provide a selection of brands that fall within our mission statement. Our goal is to carry a selection of labels from the hardcore western wear to the more sophisticated southwestern styles.Some of the labels we will carry are listed below:
Cinch | Rouchrider of Circle T |
Circle Y of Yoakum | Silver Strike Buckles |
Cowboy Hardware | Sunbody Hats |
Hat 'N' Hand | 20X by Wrangler |
Lawman Jeans | Urgent Gear |
Panhandle Slim | Western Ethics |
Rocky Mountains | Wrangler |
3.2 Competitive Comparison
Mahogany Western Wear has a number of advantages that will allow us to build our brand identity, add value to our merchandise and build a loyal customer base while standing apart from our competitors.- We will be the first African-American-owned western wear apparel retailer in Houston, TX.
- The 'Mahogany Shopper Card' will entitle customers to a 15% discount after ten purchases.
- We will offer clothing to fit plus-size women and big and tall men.
- We will create a sense of culture and bonding with the community by offering products that combine both the African-American and cowboy cultures.
- Our location is central to our target customer base.
- We will maintain a detailed record on each customer, logging addresses, their purchases, size, and brand for customer follow-up and in-house promotional purposes.
3.3 Sales Literature
Mahogany Western Wear will use a targeted advertising and sales program to generate publicity and build a customer base.- 2,500 full-color postcard flyers with a 10% coupon will be distributed throughout southwest Houston area: local zydeco and cowboy dance halls and clubs, rodeos, trail riding events, two weeks prior to the grand opening event.
- 200 grand opening invites will be mailed to potential new customers two weeks before the grand opening in June, 2002. The invitation will also include a promotional 10% coupon off a customer's first purchase. The customer mailing list has been compiled from contacts the owners have made while in the community.
- 5,000 business cards with a Mahogany Frequent Shopper Card on the reverse side entitling the customer to a 15% discount on the eleventh purchase after ten purchases.
3.4 Sourcing
We will shop for our merchandise as outlined below:- With manufacturers who have a regional representative and showroom located at the Dallas Market Center, we will place our weekly and monthly reorders with them and review new products. For all other brands we will work directly with the manufacturer and utilize product catalogs and line sheets.
- August 2002 is the International Western Apparel Tack & Accessories Show, the largest regional show for western wear and southwestern influence apparel featuring the latest collections of all brands with regional representatives. All orders will be placed for Fall lines not previously viewed and placement orders for Holiday 2002 and Spring 2003 will begin.
The Dallas Market Center offers to all registered buyers, special events, fashion shows, product displays and demonstrations, educational programs, seminars, new buyer's kits and registrations, special buying programs and first Monday and Tuesday Design Events.
With the Dallas Market Center being only a four hour drive and 250 miles away from Houston, TX, this makes it a prime sourcing for Mahogany Western Wear in servicing its retail needs.
We will also work to solidify our relationships with sales representatives and vendors so that we may achieve decreased cost of goods. Our competitors, (both direct and indirect) purchase from the same sources and we believe that through marketing programs and strategic alliances we will begin to gain a competitive advantage.
3.5 Technology
Retail apparel establishments have a tendency to have a high number of SKU's because of the level of inventory. It is imperative that an advanced inventory and point of sales program be utilized to maintain stock levels and track sales. Mahogany Western Wear will utilize Peachtree Accounting software for all financial and accounting purposes. For inventory management and point of sale transactions we will utilize Retail I.C.E. (Inventory Control Expert) software. This product is a Windows-based software that allows the small, single store retailer to manage their inventory and point of sale functions all in one.Our business plan will be generated and reviewed on a bi-annual basis using the most updated version of Business Plan Pro from Palo Alto Software and reviewed quarterly to ensure all financial goals and objectives are being reached. Palo Alto's companion software, Marketing Plan Pro, will allow us to make the most of our limited marketing budget by focusing our communications on our target markets and enhancing our marketing knowledge.
3.6 Future Products
As we achieve and exceed our sales and profitability goals, Mahogany Western Wear will add western boots to the product line and our own personal in-house label of clothing that will include Mahogany t-shirts for women and shirts for men. We will expand our line of brands with those that have been repeatedly requested by our customers. An e-commerce website will also be created to increase our distribution channels and expand our customer base to a national level.
Market Analysis Summary
The primary target customer of Mahogany Western Wear will be the African-American cowboys located in the southern part of Houston, TX. As we are situated in the epi-center of their residental community we believe they will make up the largest percentage of our customer base.The secondary target customers are the Hispanic community in the area. As the Hispanic population continues to grow rapidly in the south central area we expect to receive the patronage of Hispanics as they are very loyal to western apparel.
The last target customer of Mahogany is listed as other. As popularity about the store increases we expect to see an assortment of curiosity seekers, and local residents from the community as well as seasonal purchasers during rodeo season.
4.1 Market Segmentation
The African-American cowboy population is concentrated heavily in the southwestern part of the city therefore leading to the highest concentration of our customer base.The Hispanic community, which is a growing population in the community in which the store is located, has statistically shown to be loyal to the major western brands such as Wrangler.
The last area of potential customers is labeled as "other." Because Mahogany Western Wear offers a variety of western and southwestern wear apparel, along with accessories and gifts we feel that we will attract many curious shoppers. Our ambience and customer service will make them repeat customers.
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Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
African-American Cowboys/Cowgirls | 10% | 18,247 | 19,981 | 21,879 | 23,958 | 26,234 | 9.50% |
Hispanic Cowboys/Cowgirls | 15% | 9,682 | 11,134 | 12,804 | 14,725 | 16,934 | 15.00% |
Other | 10% | 3,724 | 4,096 | 4,506 | 4,957 | 5,453 | 10.00% |
Total | 11.33% | 31,653 | 35,211 | 39,189 | 43,640 | 48,621 | 11.33% |
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4.2 Target Market Segment Strategy
The goal of Mahogany Western Wear is to serve the local African-American cowboy community that have difficulty finding western clothes that fit their larger frames. We will also serve the Hispanic community which tends to have a slimmer yet shorter frame.Both of these markets are underserved in the major western retailer outlets.
4.2.1 Market Needs
There are several important needs in the western wear apparel business that are being either underserved or not met at all. Mahogany Western Wear plans to meet and service those needs.- Mahogany will provide a large assortment of sizes to compliment the various body shapes and sizes of the ethnic community. This is a size segment that is missing throughout the larger western wear apparel retailers in the city.
- Focus and attention to customer's personal preferences and customer retention will be given high priority. Because of the high rate of employee turnover at major mass retailers, customer service and personal detail has been lost.
4.2.2 Market Trends
Millions of people around the world instantly recognize and identify with western apparel. It is synonymous with America and is a true classic.Western wear has survived many eras. Modern cowboys herd cattle in helicopters but they still wear the same jeans, boots and hats their grandfathers wore. There will always be a future for western apparel. Within the last two years the southwestern and western look has made a comeback in the fashion industry. Mahogany Western Wear intends to use its place in the community to heighten the awareness of the African-American cowboy culture in Houston, TX.
With the increase of participation by professional African-American cowboys such as five-time World Champion professional calf roper Fred Whitfield from Houston, TX more people are becoming aware of African-Americans role and contribution in the cowboy community.
4.2.3 Market Growth
Market growth is in an upward motion, despite some of the latest economic downturns in the Houston metro area. According to a report by the City of Houston Economy & Trade, Houston ranked second in the rate of job growth among the nation's 10 largest cities during 2000. Although for the time being, Houston will mirror much of the national economy, by the second half of 2002 Houston will again see positive growth as the city is predicted to add another 15,000 jobs. In the 12 months ending in January 2002, the city posted a net gain of 7,500 jobs while the nation as a whole lost 1.2 million. It is important to note that 90% of the new jobs are in the non-energy dependent sectors thereby adding to the city's economy and economic diversity.Houston has also been designated as the best city in the U.S. to start a new business. For three consecutive years, Houston has ranked first in the nation in new business growth, according to American Business Information. The most recent survey shows that more than 31,000 new local businesses were started in Houston. Los Angeles, California was a distant second with 16,780.
For these reasons and more, Houston is considered an economic leader in America. Economy.com has analyzed America's 40 largest metro areas and predicts Houston's Gross Area Product will do better than any other city through the second quarter of 2002. Industry Week named Houston one of 12 world class cities for manufacturing and Black Enterprise has ranked Houston as the top U.S. city for blacks based on income potential, cost of living, proximity to employers, cost of housing and 21 quality-of-life factors.
4.2.4 Industry Analysis
Western wear apparel retailers are made of several kinds of stores:- Small Speciality Stores: The majority of western wear apparel is sold through small family-run speciality stores that are located in or near neighborhood communities. 85% of the purchasing statistics for western apparel is derived from these locations.
- Large Multi-owned Western Wear Retailers: These large stores mass market and sell to hardcore enthusiasts as well as the local tourists and those who purchase only during rodeo season.
4.3 Main Competitors
Mahogany Western Wear has three competitors within a 15 miles radius of its location.Cavender's Boot City, which is located approximately 7.1 miles from our location is our closest competitor. Cavender's is one of the largest western wear apparel stores in the state of Texas. They operate 42 stores and sell basic western wear apparel and boots to the general mass market. Because of Cavender's size they have a large percentage of the market share but still only cater to what the apparel industry considers to be the average size. Locating plus size clothing for women and big and tall sizes for men can be extremely difficult. They also tend to be a bit behind the market in offering more contemporary western styles. Because of Cavender's size they have also lost some of their customer service skills as employee turnover is high.
Barbecue Hall of Fame, located approximately 9.3 miles from our store. The Barbecue Hall of Fame retail outlet combines the atmosphere of Goode & Co. BBQ restaurant with shopping and a prime tourist attraction. They offer an eclectic mix of old west meets new west with apparel, grills, cookware, and gift items. BBQ Hall of Fame doesn't do any advertising or promotions of their retail outlet so if you don't visit The Goode & Co. restaurant you wouldn't know about the retail establishment.
Turner Saddlery is approximately 12.1 miles from Mahogany Western Wear and is the farthest of the three competitors. Turner Saddlery is a family-owned western apparel with two stores in the Houston area and one store in Conroe, TX. Their customer base tends to be more upscale as they carry more of the high end western labels such as Saddle Ridge and Lucchese. They also carry housewares and bedding items of which Cavender's and BBQ Hall of Fame does not carry. They have few plus sizes for women and big and tall for men. Also, Turner Saddlery does very little advertising and promotion.
Strategy and Implementation Summary
Mahogany Western Wear's goal is to provide apparel to the under served market of the African-American cowboy community.The major western apparel retailers have left a hole in this market by not providing a larger assortment of sizes. Our intention is to gain 80% of this market share by focusing on our niche positioning, neighborhood location, brand that we sell, southern hospitality and special promotions.
5.1 Competitive Edge
- The Mahogany Shopper Card which allows the customer a 15% discount after ten purchases.
- Our location in the community will offer closer access to our target customer base.
- We will offer plus sizes for women and big and tall sizes for men.
5.2 Marketing Strategy
Our marketing strategy will focus heavily on sales promotion, niche positioning in the market and customer service with loyalty and retention in sales.- The marketing budget will not exceed 5% of our gross annual sales.
- Our promotions will always stay in tune with our company objectives and mission statement.
5.2.1 Pricing Strategy
Mahogany Western Wear will maintain a flexible pricing strategy. We base the product lines that we carry on their reputation and quality as western wear apparel. Most of our lines come with a suggested retail price that we will follow. We will also utilize the standard practice of keystoning as well.5.2.2 Promotion Strategy
Mahogany Western Wear will follow an aggressive yet creative promotional plan. This will allow us to focus directly on our target customer while still being conservative with our advertising dollars.- A press release kit will be sent to all major media outlets in Houston, TX highlighting the grand opening of the first African-American owned western wear apparel retailer in the city. This kit will include a press release, pictures of the interior space, color postcard/flyer, and a business card.
- 5,000 4x5 color flyers/postcards will be distributed throughout the city at local zydeco and cowboy dance halls and clubs, trailrides and rodeos.
- Spot radio advertisements on two local FM radio stations, KMJQ Majic 102 and KTSU 90.9.
- A direct mail program that will further focus on and target the top 50% customer base with special in-house sales and promotions.
5.2.3 Distribution Strategy
Our retail location will be the foundation of building our customer base. We will also manage a direct mail program that will focus on our top 50% customers spotlighting any in-house sales and promotions.5.2.4 Marketing Programs
Our marketing programs will consist of the distribution of 5,000 color flyers two weeks prior to our grand opening event.5.2.5 Positioning Statement
For the more full-bodied individual seeking western apparel, Mahogany Western Wear will offer name brand western wear in a larger assortment of styles and sizes that aren't always readily available in the mass western apparel retailers.5.3 Sales Strategy
- We will utilize the Retail ICE POS software with every sales transaction. With each purchase the software will record and maintain in its database the customer's name, address and purchases. This information will be used with our direct mailing program to focus on our top 50% of customers.
- We will offer a 14 day return/exchange policy to build trust with our customers and maintain retention and loyalty.
5.3.1 Sales Forecast
The following table and chart give a highlight on forecasted sales. We expect sales to start off conservatively and increase extensively during the Christmas holiday shopping season and during the months of The Houston Livestock Show and Rodeo.Mahogany Western Wear has planned for a rate of growth at 15% for the first year as we build name recognition and status in the community. In the second and third year we look to see an increase of revenue of 20% as we gain a larger percentage of the market share and increase our customer base beyond the southwest part of the city.
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Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Clothing | 5,175 | 6,728 | 8,746 |
Belts & Hats | 285 | 371 | 482 |
Jewelry & Gifts | 560 | 728 | 946 |
Total Unit Sales | 6,020 | 7,826 | 10,173 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Clothing | $50.00 | $50.00 | $50.00 |
Belts & Hats | $50.00 | $50.00 | $50.00 |
Jewelry & Gifts | $20.00 | $20.00 | $20.00 |
Sales | |||
Clothing | $258,750 | $336,375 | $437,288 |
Belts & Hats | $14,250 | $18,525 | $24,083 |
Jewelry & Gifts | $11,200 | $14,560 | $18,920 |
Total Sales | $284,200 | $369,460 | $480,290 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Clothing | $25.00 | $25.00 | $25.00 |
Belts & Hats | $25.00 | $25.00 | $25.00 |
Jewelry & Gifts | $10.00 | $10.00 | $10.00 |
Direct Cost of Sales | |||
Clothing | $129,375 | $168,188 | $218,644 |
Belts & Hats | $7,125 | $9,263 | $12,041 |
Jewelry & Gifts | $5,600 | $7,280 | $9,460 |
Subtotal Direct Cost of Sales | $142,100 | $184,730 | $240,145 |
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5.4 Milestones
The accompanying milestone chart highlights our plan with specific dates. This schedule reflects our strong committment to organization and detail.
Management Summary
Employees will be encouraged to work within their creative, physical, and intellectual boundaries. All duties will be divided and delegated according to strengths and weaknesses. At Mahogany we will expect a high degree of customer service skills and personality as this is essential to our success.Chandra Miller will assess the productivity and perform informal employees evaluations of all employees every six months. These bi-annual evaluations are conducive to the continued growth of our small business.
6.1 Organizational Structure
Mahogany Western Wear is a small business and therefore requires a simple organizational structure. Chandra Miller will act a general manager. All decisions are made in-line with the company objectives. Employee tasks are delegated based upon their level of expertise, creativity, strengths and weaknesses.6.2 Management Team
Chandra E. Miller, co-owner and general manager will be responsible for all administrative functions, purchasing, inventory control, and promotions. She will also act as a part-time sales representative. She has spent over 10 years in accounting, finance and operations management. She was also the owner of Tattletale's, an e-commerce toy store for three years. She has extensive background in purchasing, inventory control, and marketing.6.3 Personnel Plan
The personnel plan is included in the following table below. There will be one full-time employee and two part-time employees working 20-30 hours per week. The full-time employee will be paid at a rate of $10.00 per hour and the two part-time employees will be paid at a rate of $8.00 per hour. All employee's will benefit from a one day paid holiday on their respective birthdays and one week of paid vacation after twelve months of employment.At this time medical benefits will not be offered to employees. As profits increase in the future medical benefits will be offered to all employees.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Owner | $11,475 | $12,623 | $13,885 |
Full-time postion | $20,400 | $22,440 | $24,684 |
Part-time position | $12,240 | $13,464 | $14,810 |
Total People | 3 | 3 | 3 |
Total Payroll | $44,115 | $48,527 | $53,379 |
Financial Plan
The growth of Mahogany Western Wear will be moderate and the cash balance will always be positive. Being a retail environment we will not be selling on credit. We will accept cash, checks, and all major credit cards. TeleCheck Services will be used as the check guaranty system to help reduce the percentage of loss on bad checks. Marketing and advertising will remain at or below 5% of sales. We will continue to reinvest residual profits into company expansion, and personnel. 7.1 Important Assumptions
Mahogany Western Wear does not sell on credit nor do we offer layaways at this time. We accept cash and checks, Visa, MasterCard, Discover and American Express. All sales paid via credit cards will be deposited in our business checking account within 48 hours. Our business checking account will be with Washington Mutual. They have reported the interest rate as those listed below.7.2 Key Financial Indicators
The following chart shows the benchmark figures for Mahogany Western Wear.
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General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
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7.3 Break-even Analysis
A break-even analysis table has been completed on the basis of average costs/prices. With fixed costs of $5,800, ~$47 in average sales, and $23 in an average variable costs, we need $11,700 per month in sales to break even.
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Break-even Analysis | |
Monthly Units Break-even | 248 |
Monthly Revenue Break-even | $11,712 |
Assumptions: | |
Average Per-Unit Revenue | $47.21 |
Average Per-Unit Variable Cost | $23.60 |
Estimated Monthly Fixed Cost | $5,856 |
7.4 Projected Profit and Loss
The following chart and table will indicate projected profit and loss.
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Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $284,200 | $369,460 | $480,290 |
Direct Cost of Sales | $142,100 | $184,730 | $240,145 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $142,100 | $184,730 | $240,145 |
Gross Margin | $142,100 | $184,730 | $240,145 |
Gross Margin % | 50.00% | 50.00% | 50.00% |
Expenses | |||
Payroll | $44,115 | $48,527 | $53,379 |
Sales and Marketing and Other Expenses | $15,448 | $15,523 | $15,834 |
Depreciation | $0 | $0 | $0 |
Telephone / Pagers/ Cell | $1,800 | $1,800 | $1,836 |
Utilities | $4,500 | $4,800 | $4,896 |
Payroll Taxes | $4,412 | $4,853 | $5,338 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $70,275 | $75,502 | $81,283 |
Profit Before Interest and Taxes | $71,826 | $109,228 | $158,862 |
EBITDA | $71,826 | $109,228 | $158,862 |
Interest Expense | $1,491 | $1,175 | $845 |
Taxes Incurred | $21,100 | $32,416 | $47,405 |
Net Profit | $49,234 | $75,637 | $110,612 |
Net Profit/Sales | 17.32% | 20.47% | 23.03% |
7.5 Projected Cash Flow
The following table explains projected cash flow.
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Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $284,200 | $369,460 | $480,290 |
Subtotal Cash from Operations | $284,200 | $369,460 | $480,290 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $284,200 | $369,460 | $480,290 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $44,115 | $48,527 | $53,379 |
Bill Payments | $174,454 | $244,577 | $315,576 |
Subtotal Spent on Operations | $218,569 | $293,103 | $368,955 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $3,300 | $3,300 | $3,300 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $221,869 | $296,403 | $372,255 |
Net Cash Flow | $62,331 | $73,057 | $108,035 |
Cash Balance | $62,715 | $135,771 | $243,806 |
7.6 Projected Balance Sheet
The following table explains the projected balance sheet.Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $62,715 | $135,771 | $243,806 |
Inventory | $13,365 | $17,375 | $22,586 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $76,080 | $153,146 | $266,393 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $76,080 | $153,146 | $266,393 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $15,762 | $20,491 | $26,426 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $2,000 | $2,000 | $2,000 |
Subtotal Current Liabilities | $17,762 | $22,491 | $28,426 |
Long-term Liabilities | $13,400 | $10,100 | $6,800 |
Total Liabilities | $31,162 | $32,591 | $35,226 |
Paid-in Capital | $5,100 | $5,100 | $5,100 |
Retained Earnings | ($9,416) | $39,818 | $115,455 |
Earnings | $49,234 | $75,637 | $110,612 |
Total Capital | $44,918 | $120,555 | $231,167 |
Total Liabilities and Capital | $76,080 | $153,146 | $266,393 |
Net Worth | $44,918 | $120,555 | $231,167 |
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7.7 Business Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5699, Miscellaneous Apparel and Accessory stores.Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 30.00% | 30.00% | 0.20% |
Percent of Total Assets | ||||
Inventory | 17.57% | 11.35% | 8.48% | 49.00% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 23.00% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 81.40% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 18.60% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 23.35% | 14.69% | 10.67% | 40.70% |
Long-term Liabilities | 17.61% | 6.60% | 2.55% | 15.20% |
Total Liabilities | 40.96% | 21.28% | 13.22% | 55.90% |
Net Worth | 59.04% | 78.72% | 86.78% | 44.10% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 50.00% | 50.00% | 50.00% | 38.30% |
Selling, General & Administrative Expenses | 32.72% | 29.62% | 27.09% | 22.10% |
Advertising Expenses | 0.00% | 0.02% | 0.02% | 2.10% |
Profit Before Interest and Taxes | 25.27% | 29.56% | 33.08% | 0.70% |
Main Ratios | ||||
Current | 4.28 | 6.81 | 9.37 | 2.22 |
Quick | 3.53 | 6.04 | 8.58 | 0.62 |
Total Debt to Total Assets | 40.96% | 21.28% | 13.22% | 55.90% |
Pre-tax Return on Net Worth | 156.58% | 89.63% | 68.36% | 1.70% |
Pre-tax Return on Assets | 92.45% | 70.56% | 59.32% | 3.80% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 17.32% | 20.47% | 23.03% | n.a |
Return on Equity | 109.61% | 62.74% | 47.85% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.91 | 12.02 | 12.02 | n.a |
Accounts Payable Turnover | 12.07 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 27 | 27 | n.a |
Total Asset Turnover | 3.74 | 2.41 | 1.80 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.69 | 0.27 | 0.15 | n.a |
Current Liab. to Liab. | 0.57 | 0.69 | 0.81 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $58,318 | $130,655 | $237,967 | n.a |
Interest Coverage | 48.16 | 92.96 | 188.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.27 | 0.41 | 0.55 | n.a |
Current Debt/Total Assets | 23% | 15% | 11% | n.a |
Acid Test | 3.53 | 6.04 | 8.58 | n.a |
Sales/Net Worth | 6.33 | 3.06 | 2.08 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Appendix
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Clothing | 0% | 325 | 350 | 350 | 400 | 400 | 475 | 500 | 475 | 500 | 500 | 450 | 450 |
Belts & Hats | 0% | 15 | 15 | 15 | 20 | 20 | 30 | 30 | 35 | 35 | 30 | 20 | 20 |
Jewelry & Gifts | 0% | 40 | 40 | 40 | 40 | 40 | 65 | 65 | 50 | 50 | 50 | 40 | 40 |
Total Unit Sales | 380 | 405 | 405 | 460 | 460 | 570 | 595 | 560 | 585 | 580 | 510 | 510 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Clothing | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | |
Belts & Hats | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | |
Jewelry & Gifts | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | |
Sales | |||||||||||||
Clothing | $16,250 | $17,500 | $17,500 | $20,000 | $20,000 | $23,750 | $25,000 | $23,750 | $25,000 | $25,000 | $22,500 | $22,500 | |
Belts & Hats | $750 | $750 | $750 | $1,000 | $1,000 | $1,500 | $1,500 | $1,750 | $1,750 | $1,500 | $1,000 | $1,000 | |
Jewelry & Gifts | $800 | $800 | $800 | $800 | $800 | $1,300 | $1,300 | $1,000 | $1,000 | $1,000 | $800 | $800 | |
Total Sales | $17,800 | $19,050 | $19,050 | $21,800 | $21,800 | $26,550 | $27,800 | $26,500 | $27,750 | $27,500 | $24,300 | $24,300 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Clothing | 0.00% | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 |
Belts & Hats | 0.00% | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 | $25.00 |
Jewelry & Gifts | 0.00% | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 |
Direct Cost of Sales | |||||||||||||
Clothing | $8,125 | $8,750 | $8,750 | $10,000 | $10,000 | $11,875 | $12,500 | $11,875 | $12,500 | $12,500 | $11,250 | $11,250 | |
Belts & Hats | $375 | $375 | $375 | $500 | $500 | $750 | $750 | $875 | $875 | $750 | $500 | $500 | |
Jewelry & Gifts | $400 | $400 | $400 | $400 | $400 | $650 | $650 | $500 | $500 | $500 | $400 | $400 | |
Subtotal Direct Cost of Sales | $8,900 | $9,525 | $9,525 | $10,900 | $10,900 | $13,275 | $13,900 | $13,250 | $13,875 | $13,750 | $12,150 | $12,150 | |
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Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Owner | 0% | $900 | $900 | $900 | $1,125 | $900 | $900 | $1,125 | $900 | $900 | $1,125 | $900 | $900 |
Full-time postion | 0% | $1,600 | $1,600 | $1,600 | $2,000 | $1,600 | $1,600 | $2,000 | $1,600 | $1,600 | $2,000 | $1,600 | $1,600 |
Part-time position | 0% | $960 | $960 | $960 | $1,200 | $960 | $960 | $1,200 | $960 | $960 | $1,200 | $960 | $960 |
Total People | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
Total Payroll | $3,460 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $17,800 | $19,050 | $19,050 | $21,800 | $21,800 | $26,550 | $27,800 | $26,500 | $27,750 | $27,500 | $24,300 | $24,300 | |
Direct Cost of Sales | $8,900 | $9,525 | $9,525 | $10,900 | $10,900 | $13,275 | $13,900 | $13,250 | $13,875 | $13,750 | $12,150 | $12,150 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $8,900 | $9,525 | $9,525 | $10,900 | $10,900 | $13,275 | $13,900 | $13,250 | $13,875 | $13,750 | $12,150 | $12,150 | |
Gross Margin | $8,900 | $9,525 | $9,525 | $10,900 | $10,900 | $13,275 | $13,900 | $13,250 | $13,875 | $13,750 | $12,150 | $12,150 | |
Gross Margin % | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |
Expenses | |||||||||||||
Payroll | $3,460 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | |
Sales and Marketing and Other Expenses | $1,229 | $1,229 | $1,579 | $1,229 | $1,229 | $1,229 | $1,229 | $1,579 | $1,229 | $1,229 | $1,229 | $1,229 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Telephone / Pagers/ Cell | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Utilities | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | $375 | |
Payroll Taxes | 10% | $346 | $346 | $346 | $433 | $346 | $346 | $433 | $346 | $346 | $433 | $346 | $346 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $5,560 | $5,560 | $5,910 | $6,512 | $5,560 | $5,560 | $6,512 | $5,910 | $5,560 | $6,512 | $5,560 | $5,560 | |
Profit Before Interest and Taxes | $3,340 | $3,965 | $3,615 | $4,389 | $5,340 | $7,715 | $7,389 | $7,340 | $8,315 | $7,239 | $6,590 | $6,590 | |
EBITDA | $3,340 | $3,965 | $3,615 | $4,389 | $5,340 | $7,715 | $7,389 | $7,340 | $8,315 | $7,239 | $6,590 | $6,590 | |
Interest Expense | $137 | $135 | $132 | $130 | $128 | $125 | $123 | $121 | $119 | $116 | $114 | $112 | |
Taxes Incurred | $961 | $1,149 | $1,045 | $1,278 | $1,564 | $2,277 | $2,180 | $2,166 | $2,459 | $2,137 | $1,943 | $1,943 | |
Net Profit | $2,242 | $2,681 | $2,438 | $2,981 | $3,649 | $5,313 | $5,086 | $5,053 | $5,738 | $4,986 | $4,533 | $4,535 | |
Net Profit/Sales | 12.60% | 14.08% | 12.80% | 13.67% | 16.74% | 20.01% | 18.29% | 19.07% | 20.68% | 18.13% | 18.66% | 18.66% | |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $17,800 | $19,050 | $19,050 | $21,800 | $21,800 | $26,550 | $27,800 | $26,500 | $27,750 | $27,500 | $24,300 | $24,300 | |
Subtotal Cash from Operations | $17,800 | $19,050 | $19,050 | $21,800 | $21,800 | $26,550 | $27,800 | $26,500 | $27,750 | $27,500 | $24,300 | $24,300 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $17,800 | $19,050 | $19,050 | $21,800 | $21,800 | $26,550 | $27,800 | $26,500 | $27,750 | $27,500 | $24,300 | $24,300 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $3,460 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | $4,325 | $3,460 | $3,460 | |
Bill Payments | $263 | $8,078 | $13,581 | $13,247 | $15,963 | $14,881 | $20,346 | $19,017 | $17,337 | $19,200 | $17,935 | $14,605 | |
Subtotal Spent on Operations | $3,723 | $11,538 | $17,041 | $17,572 | $19,423 | $18,341 | $24,671 | $22,477 | $20,797 | $23,525 | $21,395 | $18,065 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | $275 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $3,998 | $11,813 | $17,316 | $17,847 | $19,698 | $18,616 | $24,946 | $22,752 | $21,072 | $23,800 | $21,670 | $18,340 | |
Net Cash Flow | $13,802 | $7,237 | $1,734 | $3,953 | $2,102 | $7,934 | $2,854 | $3,748 | $6,678 | $3,700 | $2,630 | $5,960 | |
Cash Balance | $14,186 | $21,423 | $23,157 | $27,109 | $29,212 | $37,145 | $39,999 | $43,748 | $50,425 | $54,125 | $56,755 | $62,715 | |
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Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $384 | $14,186 | $21,423 | $23,157 | $27,109 | $29,212 | $37,145 | $39,999 | $43,748 | $50,425 | $54,125 | $56,755 | $62,715 |
Inventory | $14,000 | $9,790 | $10,478 | $10,478 | $11,990 | $11,990 | $14,603 | $15,290 | $14,575 | $15,263 | $15,125 | $13,365 | $13,365 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $14,384 | $23,976 | $31,900 | $33,634 | $39,099 | $41,202 | $51,748 | $55,289 | $58,323 | $65,688 | $69,250 | $70,120 | $76,080 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $14,384 | $23,976 | $31,900 | $33,634 | $39,099 | $41,202 | $51,748 | $55,289 | $58,323 | $65,688 | $69,250 | $70,120 | $76,080 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $7,625 | $13,143 | $12,714 | $15,473 | $14,202 | $19,710 | $18,441 | $16,696 | $18,599 | $17,450 | $14,062 | $15,762 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Subtotal Current Liabilities | $2,000 | $9,625 | $15,143 | $14,714 | $17,473 | $16,202 | $21,710 | $20,441 | $18,696 | $20,599 | $19,450 | $16,062 | $17,762 |
Long-term Liabilities | $16,700 | $16,425 | $16,150 | $15,875 | $15,600 | $15,325 | $15,050 | $14,775 | $14,500 | $14,225 | $13,950 | $13,675 | $13,400 |
Total Liabilities | $18,700 | $26,050 | $31,293 | $30,589 | $33,073 | $31,527 | $36,760 | $35,216 | $33,196 | $34,824 | $33,400 | $29,737 | $31,162 |
Paid-in Capital | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 | $5,100 |
Retained Earnings | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) | ($9,416) |
Earnings | $0 | $2,242 | $4,923 | $7,361 | $10,342 | $13,991 | $19,304 | $24,389 | $29,443 | $35,180 | $40,166 | $44,699 | $49,234 |
Total Capital | ($4,316) | ($2,074) | $607 | $3,045 | $6,026 | $9,675 | $14,988 | $20,073 | $25,127 | $30,864 | $35,850 | $40,383 | $44,918 |
Total Liabilities and Capital | $14,384 | $23,976 | $31,900 | $33,634 | $39,099 | $41,202 | $51,748 | $55,289 | $58,323 | $65,688 | $69,250 | $70,120 | $76,080 |
Net Worth | ($4,316) | ($2,074) | $607 | $3,045 | $6,026 | $9,675 | $14,988 | $20,073 | $25,127 | $30,864 | $35,850 | $40,383 | $44,918 |
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