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Business Plan
Prepared April 2012
Contact Information
Josh Cochrane joshpcochrane@abc.com
Table of Contents
Executive Summary .....................................................................................................................1 Who We Are..........................................................................................................................1 What We Sell ........................................................................................................................1 Who We Sell To ...................................................................................................................2 Financial History .................................................................................................................2 Company Chapter ........................................................................................................................3 Company Overview ............................................................................................................3 Management Team..............................................................................................................3 Products and Services .................................................................................................................5 Products and Services .........................................................................................................5 Competitors ..........................................................................................................................6 Target Market ...............................................................................................................................8 Market Review .....................................................................................................................8 Market Needs .......................................................................................................................8 Key Customers .....................................................................................................................8 Market Trends......................................................................................................................9 Market Growth ..................................................................................................................10 Strategy and Implementation..................................................................................................11 Marketing Plan ..................................................................................................................11 Milestones...........................................................................................................................13
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Table of Contents
Competitive Edge ..............................................................................................................13 Strategic Alliances .............................................................................................................14 Financial Plan .............................................................................................................................15 Personnel Plan....................................................................................................................15 Sales Forecast......................................................................................................................16 Budget ..................................................................................................................................19 Cash Flow Assumptions...................................................................................................21 Loans and Investments.....................................................................................................22 Projected Profit and Loss Statement ..............................................................................23 Projected Balance Sheet ...................................................................................................26 Projected Cash Flow Statement ......................................................................................27 Appendix .....................................................................................................................................30 Monthly Financial Details ...............................................................................................30
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Executive Summary
Who We Are
UniversityCycleWorksisanestablishedbicyclespecialtystore,offeringretailsalesof newbicycles,partsandaccessories,clothing,andmaintenanceandrepairservice.Itis locatedinaheavilytrafficked,universityfocusedarea. UniversityCycleWorksisasubchapterScorporation,andiscurrentlyownedbyHan Delbar.HubertWheeler,currentassistantmanagerofUniversityCycleWorks,is purchasingUniversityCycleWorksfromDelbar,acquiringexistinginventory,and assumingoutstandingaccountspayableanddatingprogramdebtstosuppliers, locationlease,customerbaseandinformation,andUniversityCycleWorksbusiness nameandgoodwill.ThebusinesswillcontinuetobeasubchapterScorporation. ExchangeofownershipwilloccuronJuly1,ofthisyear. WheelerhasbeentheassistantmanagerofUniversityCycleWorksforfiveyears,with anadditionalsevenyearsofbicycleindustryretailsalesandserviceexperience.Hefirst beganinvestigatingtheownershipofabikebusinesstwoyearsago,however,thelocal Metroburgmarketseemedsaturatedwithshops.Realizingthatamorepractical optionwouldbetobuyanexistingshop,heapproachedhiscurrentboss.Theresultof twoyearsofnegotiationswillbethesaleofUniversityCycleWorkstoWheeler,taking effectJuly1st.Thegoalwillbeaseamlesstransferofownership,withstaff,bikelines, location,andoperationsunchanged.
What We Sell
Bicycles.Wesellnewbicycles,predominantlyinthemountainbikestyle,retrocruiser isaclosesecond,andsport/touring/racingroadbikesadistantthird.Wealsosellsome usedbikeswhichwetakeinontradeasaservicetoourcustomerswhoarebuying newbikes. Accessories.Weofferawidevarietyofaccessories.Locks,computerspeedometers, fenders,cargoracks,comfortableseats,headlights,helmets,waterbottles,
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Who We Sell To
TheprimarymarketforUniversityCycleWorksistheuniversitystudentpopulation, whichnormallyhasaturnover/growthofapproximately25%eachyear.The secondarymarketistheuniversityfacultyandstaff,andthetertiarymarketisthe greaterMetroburgcommunity.
Financial Summary
Thisfinancialplanwasdevelopedbaseduponpreviousyearsdatafortheexisting store,trackingtrendsinrevenuesandexpenses.Afivemonthtrackofsales,accounts receivablesandpayables,andinventoryfromayearendbenchmarkwasmade.The currentowner,HanDelbar,hassoldthebusinesstoHubertWheelerfor$140,000.The seller,buyer,andtheaccountantworkedtogetherontheplantobalanceoptimismwith reality.Anattorneywasconsultedonspecificsofthesalecontract. Salesforthefirstyearofnewownershipareprojectedabove$500,000,withagross marginofalmost65%.Profitabilityisexpectedatthemidwaypointofthefiscalyear, inMarch.
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Company
Company Overview
UniversityCycleWorksisasubchapterScorporation,andiscurrentlyownedbyHan Delbar.HubertWheeler,currentassistantmanagerofUniversityCycleWorks,is purchasingUniversityCycleWorksfromDelbar,acquiringexistinginventory,and assumingoutstandingaccountspayableanddatingprogramdebtstosuppliers, locationlease,customerbaseandinformation,andUniversityCycleWorksbusiness nameandgoodwill.ThebusinesswillcontinuetobeasubchapterScorporation. ExchangeofownershipwilloccuronJuly1st. Toestablishanaccurateaccountingofexistinginventoryandoutstandingdebts,the prioryearsclosinginventoryandyearendfinancialstatementasreviewedbythe businessCPAwereusedasbenchmarks.Thesales,ordersplaced,deliveriesreceived, andaccountspayablepaymentsmadehavebeentrackedeachmonth,andatrial balanceofthesewillberunJune15toestablishthefinalpurchasepriceforinventoryon hand,andtheamountofAccountsPayableassumed.Thefigurespresentedhereare conservative,realisticestimatesusedforplanningpurposes.
Management Team
Thecurrentassistantmanager,HubertWheeler,isbuyingUniversityCycleWorks,and willmanagethebusiness.HehasaB.S.degreeinEconomicsandanM.A.in ComparativeLiterature.Hispassionhoweverhasalwaysbeencycling.Heoriginally workedathislocalbikeshopwhenhewasincollege.Afterseveralyearstryingtofind suitableworkinhisdegreefield,hegaveupchasingthechimeraofthesefieldsand decidedtoworkwithsomethingsubstantial,andreturnedtohisyouthfulenjoymentof bicycles. Heattendedtwoofthemajorbicyclemechanictrainingprograms,atNewEngland BicycleAcademyandtheUnitedBicycleInstitute.Thesecoursescoveredmechanical serviceandmaintenance,framebuildingandrepair,wheelbuilding,andshop
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organization,sales,andmanagement.Hehas12yearsofprogressivelyresponsible experienceinbicycleshopswiththelastfiveatUniversityCycleWorks. Oneoftheotherfulltimeemployees,ValeriePedehasexpressedinterestinlearning moreaboutthebikeindustryandshewillbepromotedtobethenewassistant manager.Valhasbeenwithusforthreeyears.ShegraduatedfromStateUniversityat MetroburgwithtandemB.S.degreesinExercisePhysiologyandRecreation Management.Shelovestocycle,andhaskepthercontactsattheuniversityactive.Her knowledgeandexpertisedrawsmanywomenbicycliststoourstorewheretheyknow theywillgetthecareandattentionwhichisusuallymissingfromtraditionallymale staffedshops. Thecurrentowner,HanDelbarwillbeavailableasaresource. Additionalresourcesare: OrderOutofChaos,ourfullcyclebookkeepingservice. ContinentalShelfBank. NewtRia,apartneratWeasel,Stoat,Muskratwhoadvisedonthesale/purchase arrangements.
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Service UniversityCycleWorksisafullservicespecializedbicycleshop.Ourserviceoffering includes,butisnotlimitedto: Free30day/100miletuneupwitheverynewbikesold. Quickrepairsforflattires,brokenchains,brakecables,etc. Scheduledtuneups,replacementofallbearingsurfaces,repackingoflubricants, andadjustmentsofderailleursandbrakesystems. Installationofallaccessories. Authorizedwarrantyrepairsonthebikes. Customwheelbuilding. FramesetrepairsbyoutsourcingtoViaPorcocustomframebuilders.
Competitors
Settingasidethediscountdepartmentstores,UniversityCycleWorkshasthefollowing directcompetitors. Onelocalmultisportstoreatthelocalmegamall OnestatewidechainofbicycleshopswhichstartedoutasSchwinnonlyshops, buthashadtotakeonotherbrandsandproducts. Oneusedbikestorethathasmadeafinebusinessreputationforitself,dealing strictlyinusedbikes. Threelocal,includingtheoldestshopintown. Onelocalmultilocationchain,thathasspecializedinopeningshopsinsmall localmallsinareasofnewhousingdevelopment. Severalgaragemechanicsofferingserviceonly. Noneofthesecompetitorsiswithintwomilesoftheuniversity,andso,forthepresent, wehavefirstaccesstoourchosenmarketsegments.Oneofthelocalshopshaschosen
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Target Market
Market Overview
ThepredominantmarketsegmentforUniversityCycleWorksistheuniversitystudent population.Wealsocatertotheuniversitystaff,localbusinessemployees,and,along witheveryotherbicycleshopintown,thegreaterMetroburgpopulation. Inpartthelocalmarketisdrivenbythelackofparking.Bicycletransportationismore economical,aswellastimeandspaceefficientintheuniversityneighborhood.Partof themarketispriceconstrainedandanotherpartishookedonthelatestfad,beitframe style,numberofgears,orportrayedimage.Aslongasnewstudentsarriveeachyear, ourmarketsegmentgrowthisassured.
Market Needs
Ourmarketnichehasseveralneedswhichwestrivetomeet: Qualitybikesatseveralpricepoints. Variousstylesandsizesofbikes,leaningheavilytowardthestylesmostpopular withthestudentpopulation. Rangeofaccessoriesmostpracticalinthelocalsetting,suchaslocks,fenders, lights,tires,seats,rainwear,etc. Plentyofreplacementcomponentsandserviceparts. Friendlypersonalrelationshipsbetweencyclistsandshopstaff. Promptandconvenientservicefromonthespotflattirefix,todropinrepairs,to scheduledmajormaintenance,wheretheridercandroptheirbikeoff,headto classorwork,andbeassuredthattheirbikewillbereadyfortheridehome.
Key Customers
Theuniversitystudentsareourmaintargetmarket.
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1. Theyaremostlyundergraduates,sothereisa25%annualturnover. 2. Thelackofparkingintheuniversityareaandthegeneraleaseofbikemobility throughoutMetroburgmotivatesthemtousebicyclesasinexpensivetransport. Athleticpursuitsdrawthem,andthenearbyareasforuseofmountainandtrail bikesprovidesagreatplacetoride. 3. ThereisanewenthusiasmforretroCruiserbikes,andhighertechcruiserstyle bikeswithmultiplegears,goodbrakes,etc.amongthecollegeagepopulation. 4. Also,mainmarketforracks,locks,throughout,pannier/bags,fenders,rainwear, etc. 5. Theywantconvenienceforsalesandservice. Universityemployeesareanotherprimemarketsegment. 1. 2. 3. 4. Smallgrowthandturnover,butonthewhole,thegroupisprettystable. Arewillingtocommutebybicycletowork. Theywantastable,comfortablebikeandafullrangeofaccessories. Whentheirbikesneedserviceandmaintenance,localdropoff/pickup convenienceisimportant. 5. Theyhavefamilieswhoridebicyclesalso,andwillpatronizeashopthatgives personalservice. GreaterMetroburgpopulation. Thissegmenthasachoiceofgoingtoanybikeshopinthearea,andwillprobably chooseashoplocatedclosertotheirhome.Theyarenotthemaintargetmarket segmentofUniversityCycleWorks,andwemarkettothemcasually,onlyasa collateraleffecttoouruniversityorientedefforts.
Market Trends
Trendsinthebicycleindustryusuallylastforatime.Someofthemhavebeen: 1960sBigrushon10speeds. 1970sTouringbikesbecamepopular. 1980sand1990sHugegrowthofmountainbikes
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Market Growth
ThebulkofUniversityCycleWorksmarketgrowthistheregularmatriculationof studentsfromtheStateUniversityinMetroburg.Whiletheoverallmarketnumbers changeinsmallincrements,usuallylessthan10%,themarkethasaturnoverof2226% yearly.Inalongertimeframethenumberofstudentsandthenumberofuniversity employeesgrowsandshrinkswitheconomicchanges,andwithpopulation demographics. Forthenextthreeyearsweforeseeasteadygrowthintheoveralluniversitypopulation aswellascontinuedgrowthofMetroburgasadesirableplacetolive.
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Positioning
WeareUniversityCycleWorks,andwearepassionateaboutbicycles.
Pricing
Retail Pricingofbicyclesisverytightwithamarkupofbetween30%and40%depending uponthebrandandmodel.Manypeoplebelievethatbicyclesarepricedlike automobilesandareopenfornegotiation,andmakealmostinsultingoffers.Theshops havelittleleewayhere. Partsandaccessoriesaregenerallykeystonepriced.Somesmallitemscostmorein handlingandsalesthantheydotobuyfromsuppliers.Thesecanbedoubleandtriple keystoned,becausecustomerswontbuythemiftheydonthaveaminimumperceived value.Ontheplusside,thesearegreatthrowinitemsusedtoclosethesaleofabike. Whennewtechnologyarrivesinbicycles,andifthesupplyislimited,almostanyprice canbedemanded.Thiswasthecaseinthemid1990swhenRockShoxintroduced suspensionforksformountainbikes.Thebikenobswouldpaywhateverwasaskedjust togetthoseforks.Ofcourse,inthistypeofsituationtheprice,bothwholesaleand retail,lowers.
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Otheraccessories,suchasstepinpedals,pannierracks,helmets,orheadlightsare sometimesheavilymarketedbythemanufacturers.Whilethisdrivesdemandand bringspeopleintotheshoptogettheseitems,thesuggestedmanufacturersretailprice maylimitmarkup. Themarkuponclothes,shoes,jackets,glovescanvaryfromkeystonetotriplekeystone, dependinguponproduct,manufacturer,countryoforigin,andcustomerperceptionof value.PearlIzumiandBurleyDesignrainwearcandemandpremiumpricesastopof thelinegarments,butmanybudgetconsciousstudentscanonlyafforda$35nylon windbreaker.Ithasbeenandalwayswillbeademandingjobforustoadequatelystock garmentsatthevariouspricepoints. Service WetrytomaintainabasicHourlyshoprateat$45/hour.Standardrepairsarethen pricedbaseduponanaveragetimeforcompletion.Somerepairs,suchasaflattire,are limitedbycustomerperceptionofdifficulty.Examples: FlatTire$7.50 InstallFenders$10.00 BrakeAdjustment$25.00 Tuneup$65.00 Overhaul$100.00 Allpartsusedinrepairsarepricedatkeystone,andaddedtothelaborservicecharge. Withseveralotherbicycleshopsinthecity,therearesomepriceconstraintsbasedon competition.Couponsandspecialscanbalancepriceceilingsbydrawingincustomers.
Promotion
Ourmarketingprogramsarelocallyfocused,wherewecaneffectourmaintarget market.
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Backtoschoolspecials,atthebeginningofeachterm,includingperhapsafree Kryptonitelockwithanewbikepurchase.Wewilltrytohaveaspecialpurchaseofan economyvaluebikeforeachterm. Springspecial.Thiscoincideswiththebeginningofspringterm,butwewilldirect someofouradvertisingatthewiderpopulationaspeoplehanguptheirskisandtune uptheirbikes. Coupons.Onceeveryothermonthwewillrunacouponforaservicespecialinthe universitynewspaper,theDailyHyperbole.Wealsorunthiscouponasabanneradin theDailyHyperboleOnline. Website.Ourcontentsitewillalsoserveasamarketingmedium.Weoffer downloadablemapsofthecitybikeroutes,mapsofridesoutsidethecityarea,give informationaboutthestore,andannouncesales.Webelievethatcyclistswillregularly accessoursiteforthevaluableinformationwewillprovide,andthiswillreinforcetheir ofawarenessofUniversityCycleWorks,andwewillbecometheirbikeshopofchoice. Printadvertising.Inadditiontoourcoupons,wewillkeepasmall3columninchad appearingonarecurringscheduleintheDailyHyperbole.Toboostcitywideawareness ofoursalesspecialswewillalsorunslightlylargeradsintheMetroburgBombast Obfuscatorduringtheweekendspriortothesale.
Competitive Edge
TheforemostcompetitiveadvantageofUniversityCycleWorksisouruniversity location.Theuniversityisover100yearsoldandasithasgrown,Metroburghasgrown aroundit.Parkingisalmostnonexistent,withallcampusparkingpermitormeter controlled,andlocalstreetsfilledtocapacitywiththevehiclesofresidents.Bicyclesare anobviousandpopulartransportationsolution. Ourlocation,inthefirstblockoffcampusinacommercialareafeaturingtheuniversity bookstore,aprivatebookstore,bank,cafes,coffeeshopsandpopularwateringholesis ideal.Wegetconstant,dailyvisualexposure.Studentsandstaffthrongthesidewalk outsideourdoor,andwereapthebenefits.Ournearestcompetitorisalmostamile
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away.Forthestudentcustomer,onfoot,inahurry,UniversityCycleWorksisthe immediatesolutiontotheirneeds. Afterthatfirstparkingticket,wearethefirstbikeshopthenewpedestriansees.Weare convenientlylocatedwhenacyclistgetsaflattireonthewaytoclass.Thefirsttimea ridergetstoclasswithawetbacktheycomeinatlunchforasetoffendersandarain jacket. Thenegotiationsofthepasttwoyearsalsobringstheadvantageofcontinuedfinancial agreementswithmajorsuppliers.Thisisanadvantageoverastartupbicycleshop,but, ismorealevelingofthebikepathwhencomparedtootherestablishedshopin Metroburg.TraditionallyastartupstorewillbeplacedonaCashOnDelivery(COD) statusbybicyclemanufacturersandparts/accessoriessuppliers.TheCODstatusstays ineffectuntilthenewshopdemonstratesitsabilitytomanageitsordersandcashflow. Thisalsomeansthenewshopmusthavemorefundingtobeabletowritechecksona momentsnotice,forlargeamounts. UniversityCycleWorkswillbecontinuinganestablishedsystemofdatingprograms, ordering,delivery,andinvoicing/accountspayable,stabilizingourfundingneedsand monthlycashflow.
Strategic Alliances
Bicyclemanufacturerscontinuationofdatingprogramsandfinancial agreements. Accessorysupplierscontinuationoffinancialagreements. MetroburgParksDept.wesponsorprintedmapofcitybikepathstopublishon ourwebsite. UniversitySecurityOfficemaintenance,supplyservicecontractforcycle security. HooDaThunkItwebsitedesignandmaintenance,searchengineplacement.
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Financial Plan
Sales Forecast
Sales Forecast Table
FY2013 Sales
New Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $116,000 $150,000 $68,000 $166,000 $1,200 $133,400 $172,500 $78,200 $190,900 $1,380 $153,410 $198,375 $89,930 $219,535 $1,587
FY2014
FY2015
$501,200
$576,380
$662,837
$177,680 $323,520
65%
$204,332 $372,048
65%
$234,981 $427,856
65%
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Sales by Month
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2. Yearendholidays.ThisalsooverlapsthebeginningofWinterterm.Theretail marketdemandssomeparticipationinthisannualbuyingfrenzy,yet,thissale produceslowerrevenuethanourothertwoevents.Wesellfewerbikes,and moreaccessoriesandclothing. 3. Spring.Thiscoincideswithboththereturnofniceweather,andbeginningof Springterm.Wefeaturenewbicycles,andrepair/maintenance/tuneupspecials. Itisimportanttoustohaveagoodselectiononhandatthistime.Whenpeople decidetheywantthatnewbike,theywantitnow.Ifwedonthavethebikethen, andmakethesaleimmediately,manyriderswilldecidethattheyreallycanget anotherseasonoutoftheiroldbike,andwillspendtheirdiscretionaryincomeon someotherpurchase. Additionally,wehavesomespecialbuysavailableforJunegraduation. Wegetsomesmallmonthlyrevenuefromthesesources: Saleofusedbicyclestakeninontrade. RepairclassestaughtattheUniversityOutdoorCenter,onceaterm. MonthlyservicecontractforrepairsandpartswiththeUniversitySecurity Office.
Personnel Plan
Personnel Table
FY2013
Hubert Wheeler Valerie Pede Dee Ray JeanBaptiste Kape Parttime Employees $34,800 $27,000 $23,400 $19,800 $18,900
FY2014
$36,540 $28,350 $24,570 $20,790 $25,200
FY2015
$60,000 $30,000 $25,799 $21,830 $25,200
Total
$123,900
$135,450
$162,829
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Budget
Budget Table
FY2013 Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300 $135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0 $162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0
FY2014
FY2015
$290,659
$294,634
$332,183
$1,200
$0
$0
$1,200
$0
$0
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Expenses by Month
Startup Costs
Ourestimatedstartingexpensestotal$13,300.Theyinclude,legalandaccountingcosts totransferownershipofthebusiness,stationery,etc.,promotionalmaterials,insurance, andthedownpaymenttowardthepurchaseofthebusiness.
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Cash Outflow
% of Purchases on Credit Avg Payment Delay (Days) 100% 45
Inventory
Months to Keep on Hand Minimum Inventory Purchase 1 $1,000
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FY2014
$0 $0 $0
FY2015
$0 $0 $0
$142,000
$0
$0
Sources of Funds
Thecurrentowner,HanDelbar,hassoldthebusinesstoHubertWheelerfor $140,000.Thevalueoftheexistingcompany,itsreputation,assumptionofthebusiness name,existingclientbase,etc.isrecognizedaspartofthepurchase.Itappearsasa startupexpenseinthefollowingtableasDownPayment.Thebalanceappearsasa longtermliability. Wheelerisinvestingsomeofhisownmoney,partiallyahomeequityloan,inthe company.Anadditionalamountisbeinginvested,asshortterminterestfreeloans,by familymembers.Thisplancallsfortheseloanstoberepaidinthefirstyear.
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Use of Funds
Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300 $135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0 $162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0
$290,659 $32,861
$7,966 $12,320 $3,144
$294,634 $77,414
$7,354 $12,540 $14,380
$332,183 $95,673
$5,942 $12,540 $19,298
$9,431 2%
$43,140 7%
$57,893 9%
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Starting Balances
$0 $0 $17,000
FY2013
$142,440 $0 $17,026
FY2014
$183,550 $0 $19,580
FY2015
$233,747 $0 $19,583
$17,000
$61,500 $0
$159,466
$62,700 ($12,320)
$203,130
$62,700 ($24,860)
$253,330
$62,700 ($37,400)
$61,500 $78,500
$27,800 $0 $0
$50,380 $209,846
$36,025 $0 $200
$37,840 $240,970
$43,467 $0 $0
$25,300 $278,630
$43,884 $0 $0
$27,800
$0
$36,225
$113,490
$43,467
$94,232
$43,884
$73,582
Total Liabilities
PaidIn Capital Retained Earnings Earnings
$27,800
$25,000 $0 $0
$149,715
$25,000 $0 $9,431
$137,699
$25,000 $9,431 $43,140
$117,466
$25,000 $52,571 $57,893
$25,000
$34,431
$77,571
$135,464
$52,800
$184,146
$215,270
$252,930
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FY2014
FY2015
$29,950
$60,568
$70,847
$0 $0 ($200) ($19,258)
$0 $0 $0 ($20,650)
$112,490
$0 $142,440
($19,458)
$142,440 $41,110
($20,650)
$183,550 $50,197
$142,440
$183,550
$233,747
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Starting Balances
Sales
Sales Last Month Sales 2 Months Ago Sales 3 Months Ago Sales 4 Months Ago Sales 5 Months Ago Sales 6 Months Ago $0 $0 $0 $0 $0 $0
Expenses
Expenses Last Month Expenses 2 Months Ago Expenses 3 Months Ago Expenses 4 Months Ago Expenses 5 Months Ago Expenses 6 Months Ago $0 $0 $0 $0 $0 $0
Assets
Cash Accounts Receivable Inventory LongTerm Assets Accumulated Depreciation $0 $0 $17,000 $61,500 $0
Liabilities
Accounts Payable Sales Taxes Payable $27,800 $0
Capital
PaidIn Capital $25,000
29 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Retained Earnings
$0
30 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Appendix
Monthly Financial Details
Sales Forecast Table (With Monthly Detail)
FY2013 Sales
New Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $9,500 $11,000 $3,500 $11,000 $14,000 $17,500 $3,500 $11,000 $14,000 $16,000 $4,500 $13,000 $9,500 $11,000 $6,500 $14,000 $6,500 $10,000 $10,500 $12,000 $10,000 $15,000 $7,500 $11,000 $7,500 $9,500 $4,500 $12,000 $6,500 $8,000 $3,500 $14,000 $8,000 $13,000 $4,500 $16,000 $9,500 $15,000 $6,500 $18,000 $11,000 $11,000 $7,500 $18,000 $10,000 $13,000 $5,500 $16,000
Jul '12
Aug '12
Sep '12
Oct '12
Nov '12
Dec '12
Jan '13
Feb '13
Mar '13
Apr '13
May '13
Jun '13
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$35,100
$46,100
$47,600
$41,100
$39,100
$43,600
$33,600
$32,100
$41,600
$49,100
$47,600
$44,600
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$13,185
$19,495
$19,095
$14,235
$13,095
$16,925
$11,425
$9,645
$13,515
$16,235
$15,605
$15,225
31 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Gross Margin
Gross Margin %
$21,915
62%
$26,605
58%
$28,505
60%
$26,865
65%
$26,005
67%
$26,675
61%
$22,175
66%
$22,455
70%
$28,085
68%
$32,865
67%
$31,995
67%
$29,375
66%
FY2013 Sales
New Bicycles Accessories and Parts Clothing Repair and Service University Patrol Service Contract $116,000 $150,000 $68,000 $166,000 $1,200
FY2014
FY2015
$501,200
$576,380
$662,837
$177,680 $323,520
65%
$204,332 $372,048
65%
$234,981 $427,856
65%
32 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Jul '12
$1,800 $2,250 $1,950 $1,650 $0
Aug '12
$3,000 $2,250 $1,950 $1,650 $700
Sep '12
$3,000 $2,250 $1,950 $1,650 $1,400
Oct '12
$3,000 $2,250 $1,950 $1,650 $2,100
Nov '12
$3,000 $2,250 $1,950 $1,650 $2,100
Dec '12
$3,000 $2,250 $1,950 $1,650 $2,100
Jan '13
$3,000 $2,250 $1,950 $1,650 $2,100
Feb '13
$3,000 $2,250 $1,950 $1,650 $2,100
Mar '13
$3,000 $2,250 $1,950 $1,650 $2,100
Apr '13
$3,000 $2,250 $1,950 $1,650 $2,100
May '13
$3,000 $2,250 $1,950 $1,650 $1,400
Jun '13
$3,000 $2,250 $1,950 $1,650 $700
Total
$7,650
$9,550
$10,250
$10,950
$10,950
$10,950
$10,950
$10,950
$10,950
$10,950
$10,250
$9,550
FY2013
Hubert Wheeler Valerie Pede Dee Ray JeanBaptiste Kape Parttime Employees $34,800 $27,000 $23,400 $19,800 $18,900
FY2014
$36,540 $28,350 $24,570 $20,790 $25,200
FY2015
$60,000 $30,000 $25,799 $21,830 $25,200
Total
$123,900
$135,450
$162,829
33 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Jul '12
Aug '12
Sep '12
Oct '12
Nov '12
Dec '12
Jan '13
Feb '13
Mar '13
Apr '13
May '13
Jun '13
$33,282
$22,812
$25,882
$24,287
$24,227
$24,487
$24,187
$24,017
$24,302
$24,802
$23,607
$14,767
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,200
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,200
34 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
FY2013 Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300
FY2014
FY2015
$290,659
$294,634
$332,183
$1,200
$0
$0
$1,200
$0
$0
35 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Jul '12
Aug '12
Sep '12
Oct '12
Nov '12
Dec '12
Jan '13
Feb '13
Mar '13
Apr '13
May '13
Jun '13
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$130,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$142,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
FY2013
Family investment (interest free) Financing at 0% interest Current Borrowing Financing at 10% interest Business purchase price Loan at 7% interest for 72 mos. $10,000 $2,000 $130,000
FY2014
$0 $0 $0
FY2015
$0 $0 $0
$142,000
$0
$0
36 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $7,650 $9,550 $10,250 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,950 $10,250 $9,550
$33,282
$22,812
$25,882
$24,287
$24,227
$24,487
$24,187
$24,017
$24,302
$24,802
$23,607
$14,767
($11,367)
$0 $1,025 $0
$3,793
$773 $1,025 $0
$2,623
$764 $1,025 $0
$2,578
$754 $1,025 $0
$1,778
$745 $1,025 $0
$2,188
$734 $1,025 $0
($2,012)
$724 $1,025 $0
($1,562)
$715 $1,025 $0
$3,783
$705 $1,025 $0
$8,063
$694 $1,025 $0
$8,388
$684 $1,025 $0
$14,608
$674 $1,045 $3,144
37 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
($12,392) (35%)
$1,995 4%
$834 2%
$799 2%
$8 0%
$429 1%
($3,761) (11%)
($3,302) (10%)
$2,053 5%
$6,344 13%
$6,679 14%
$9,745 22%
38 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Expenses
Salary Employee Related Expenses Marketing & Promotion Rent Utilities Leased Equipment Insurance Starting Expenses $123,900 $30,993 $24,866 $88,000 $3,600 $1,800 $4,200 $13,300 $135,450 $33,864 $27,420 $88,000 $3,600 $1,800 $4,500 $0 $162,829 $40,708 $30,521 $88,000 $3,600 $1,800 $4,725 $0
$290,659 $32,861
$7,966 $12,320 $3,144
$294,634 $77,414
$7,354 $12,540 $14,380
$332,183 $95,673
$5,942 $12,540 $19,298
$9,431 2%
$43,140 7%
$57,893 9%
39 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Starting Balances
$0 $0 $17,000
Jul '12
$151,706 $0 $19,495
Aug '12
$152,532 $0 $19,095
Sep '12
$153,407 $0 $14,235
Oct '12
$152,374 $0 $13,095
Nov '12
$145,149 $0 $16,925
Dec '12
$148,191 $0 $11,425
Jan '13
$144,414 $0 $9,645
Feb '13
$136,288 $0 $13,515
Mar '13
$135,178 $0 $16,235
Apr '13
$142,143 $0 $15,605
May '13
$145,971 $0 $15,225
Jun '13
$142,440 $0 $17,026
$17,000
$171,201
$171,627
$167,642
$165,469
$162,074
$159,616
$154,059
$149,803
$151,413
$157,748
$161,196
$159,466
$61,500 $0
$61,500 ($1,025)
$61,500 ($2,050)
$61,500 ($3,075)
$61,500 ($4,100)
$61,500 ($5,125)
$61,500 ($6,150)
$61,500 ($7,175)
$61,500 ($8,200)
$61,500 ($9,225)
$61,500 ($10,250)
$61,500 ($11,275)
$62,700 ($12,320)
$61,500 $78,500
$60,475 $231,676
$59,450 $231,077
$58,425 $226,067
$57,400 $222,869
$56,375 $218,449
$55,350 $214,966
$54,325 $208,384
$53,300 $203,103
$52,275 $203,688
$51,250 $208,998
$50,225 $211,421
$50,380 $209,846
$27,800 $0 $0
$51,518 $0 $11,850
$50,532 $0 $11,700
$46,304 $0 $11,550
$44,932 $0 $10,400
$43,637 $0 $8,750
$43,867 $0 $6,100
$43,697 $0 $4,950
$43,377 $0 $4,800
$43,577 $0 $4,650
$44,220 $0 $4,500
$44,150 $0 $1,850
$36,025 $0 $200
$27,800
$63,368
$62,232
$57,854
$55,332
$52,387
$49,967
$48,647
$48,177
$48,227
$48,720
$46,000
$36,225
$0
$130,000
$128,542
$127,076
$125,601
$124,118
$122,626
$121,125
$119,616
$118,098
$116,571
$115,035
$113,490
Total Liabilities
PaidIn Capital
$27,800
$25,000
$193,368
$25,000
$190,774
$25,000
$184,930
$25,000
$180,933
$25,000
$176,505
$25,000
$172,593
$25,000
$169,772
$25,000
$167,793
$25,000
$166,325
$25,000
$165,291
$25,000
$161,035
$25,000
$149,715
$25,000
40 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
$0 $0
$0 ($12,392)
$0 ($10,397)
$0 ($9,563)
$0 ($8,764)
$0 ($8,756)
$0 ($8,327)
$0 ($12,088)
$0 ($15,390)
$0 ($13,337)
$0 ($6,993)
$0 ($314)
$0 $9,431
$25,000
$12,608
$14,603
$15,437
$16,236
$16,244
$16,673
$12,912
$9,610
$11,663
$18,007
$24,686
$34,431
$52,800
$205,976
$205,377
$200,367
$197,169
$192,749
$189,266
$182,684
$177,403
$177,988
$183,298
$185,721
$184,146
41 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
As of Period's End
Cash Accounts Receivable Inventory
Starting Balances
$0 $0 $17,000
FY2013
$142,440 $0 $17,026
FY2014
$183,550 $0 $19,580
FY2015
$233,747 $0 $19,583
$17,000
$61,500 $0
$159,466
$62,700 ($12,320)
$203,130
$62,700 ($24,860)
$253,330
$62,700 ($37,400)
$61,500 $78,500
$27,800 $0 $0
$50,380 $209,846
$36,025 $0 $200
$37,840 $240,970
$43,467 $0 $0
$25,300 $278,630
$43,884 $0 $0
$27,800
$0
$36,225
$113,490
$43,467
$94,232
$43,884
$73,582
Total Liabilities
PaidIn Capital Retained Earnings Earnings
$27,800
$25,000 $0 $0
$149,715
$25,000 $0 $9,431
$137,699
$25,000 $9,431 $43,140
$117,466
$25,000 $52,571 $57,893
$25,000 $52,800
$34,431 $184,146
$77,571 $215,270
$135,464 $252,930
42 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Jul '12
Aug '12
Sep '12
Oct '12
Nov '12
Dec '12
Jan '13
Feb '13
Mar '13
Apr '13
May '13
Jun '13
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,025
$1,045
$0 ($2,495)
$0 $400
$0 $4,860
$0 $1,140
$0 ($3,830)
$0 $5,500
$0 $1,780
$0 ($3,870)
$0 ($2,720)
$0 $630
$0 $380
$0 ($1,801)
$23,718
($986)
($4,228)
($1,372)
($1,295)
$230
($170)
($320)
$200
$643
($70)
($8,125)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$9,856
$2,434
$2,491
$1,592
($4,092)
$7,184
($1,126)
($6,467)
$558
$8,642
$8,014
$864
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
($1,200) $0
$11,850
($150)
($150)
($1,150)
($1,650)
($2,650)
($1,150)
($150)
($150)
($150)
($2,650)
($1,650)
$130,000
($1,458)
($1,466)
($1,475)
($1,483)
($1,492)
($1,501)
($1,509)
($1,518)
($1,527)
($1,536)
($1,545)
$141,850
($1,608)
($1,616)
($2,625)
($3,133)
($4,142)
($2,651)
($1,659)
($1,668)
($1,677)
($4,186)
($4,395)
43 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
$0 $151,706
$151,706 $826
$152,532 $875
$153,407 ($1,033)
$152,374 ($7,225)
$145,149 $3,042
$148,191 ($3,777)
$144,414 ($8,126)
$136,288 ($1,110)
$135,178 $6,965
$142,143 $3,828
$145,971 ($3,531)
$151,706
$152,532
$153,407
$152,374
$145,149
$148,191
$144,414
$136,288
$135,178
$142,143
$145,971
$142,440
FY2013 Operations
Net Profit Depreciation and Amortization Decrease in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Sales Taxes Payable $9,431 $12,320 $0 ($26) $8,225 $0
FY2014
FY2015
$29,950
$60,568
$70,847
$0 $0 ($200) ($19,258)
$0 $0 $0 ($20,650)
$112,490
$0 $142,440
($19,458)
$142,440 $41,110
($20,650)
$183,550 $50,197
$142,440
$183,550
$233,747
44 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
45 CONFIDENTIAL DO NOT DISSEMINATE. This business plan contains confidential, tradesecret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.