[NAME OF FURNITURE MANUFACTURER] BUSINESS PLAN

[date business plan issued]

Contact: [name], CEO [or President] [address] [phone no. & fax no.] [email] [web site]

The information contained in this business plan is confidential and proprietary to [Name of Furniture Manufacturer] (the Company) and is intended only for the persons to whom it is transmitted by the Company or its representatives. Any reproduction of this document, in whole or in part, or the divulgence of any of its contents without the prior written consent of the Company, is prohibited. This is a business plan. It does not imply and shall not be construed as an offering of securities. Persons interested in pursuing an investment should contact their professional advisors.

Business Plan Copy No. _______

Confidentiality Agreement The undersigned reader acknowledges that the information provided by [Name of Furniture Manufacturer] in this business plan is confidential. Therefore, the undersigned reader agrees not to disclose any of such information without the express written permission of [Name of Furniture Manufacturer]. It is hereby acknowledged by the undersigned that the information to be furnished in this business plan is in all respects confidential in nature (other than such information which is already in the public domain through other means) and that any disclosure or use of same by the undersigned may cause serious harm or damage to [Name of Furniture Manufacturer]. Upon request, this document is to be immediately returned to [Name of Furniture Manufacturer].

Signature Print Name Date

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TABLE OF CONTENTS
Confidentiality Agreement ............................................................................................................................................. i EXECUTIVE SUMMARY ............................................................................................................................................... 1 I. COMPANY OBJECTIVES............................................................................................................................... 3 1.1 Goals & Objectives................................................................................................................................. 3 1.2 Vision / Mission Statement .................................................................................................................... 3 1.3 Factors for Success ................................................................................................................................. 3 1.4 Risk Factors............................................................................................................................................. 3 II. OVERVIEW OF THE COMPANY ................................................................................................................ 5 2.1 History & Structure ................................................................................................................................ 5 2.2 Directors .................................................................................................................................................. 5 2.3 Outside Consultants & Professional Advisors...................................................................................... 5 2.4 Strategic Alliances .................................................................................................................................. 6 2.5 Facilities & Operations........................................................................................................................... 6 2.6 Product Distribution ............................................................................................................................... 6 2.7 Intellectual Property ............................................................................................................................... 6 III. DESCRIPTION OF PRODUCTS & SERVICES ........................................................................................ 7 3.1 Products & Services................................................................................................................................ 7 3.2 Future Plans............................................................................................................................................. 7 3.3 Production ............................................................................................................................................... 7 IV. MARKET ANALYSIS & MARKETING PLAN......................................................................................... 8 4.1 Industry Analysis .................................................................................................................................... 8 4.2 Target Market.......................................................................................................................................... 9 4.3 Competitors ........................................................................................................................................... 10 4.4 Competitive Edge ................................................................................................................................. 10 4.5 Marketing Objectives ........................................................................................................................... 10 4.6 Marketing Strategy ............................................................................................................................... 10 4.7 Pricing Strategy..................................................................................................................................... 11 V. MANAGEMENT & ORGANIZATION .................................................................................................... 12 5.1 Management Team ............................................................................................................................... 12 5.2 Personnel ............................................................................................................................................... 12 VI. FINANCIAL PLAN ......................................................................................................................................... 13 6.1 Important Assumptions ........................................................................................................................ 13 6.2 Discussion of Projected Net Income ................................................................................................... 13 6.3 Break-Even Analysis ............................................................................................................................ 14 6.4 Projected Profit and Loss ..................................................................................................................... 15 6.5 Projected Cash Flow ............................................................................................................................. 16 6.6 Projected Balance Sheet ....................................................................................................................... 17 6.7 Business Ratios ..................................................................................................................................... 18 APPENDIX A [support documents] ...................................................................................................................... 19

[Name of Furniture Manufacturer] BUSINESS PLAN EXECUTIVE SUMMARY

(NOTE: The Executive Summary is the section of the business plan in which you give an overview of the business, its present status and future direction, and highlight the key points and the purpose of your business plan. This section should be written after the rest of the business plan, and should not exceed 3 pages in length - thats why its called a summary.)

Company Background [for existing companies] [Name of Furniture Manufacturer] (the Company) is a [describe, e.g. a corporation incorporated under the laws of the State/Province of ___________] which has been engaged in the business of manufacturing quality handcrafted [oak / pine / cherry / etc.] furniture in the _________ area for the past ____ years. [for new companies:] [Name of Furniture Manufacturer] (the Company) was formed/created on ________ [date] as a [describe, e.g. a corporation incorporated under the laws of the State/Province of ___________], for the purpose of manufacturing quality handcrafted [oak / pine / cherry / etc.] furniture in the _________ area. Ownership and Management The Company is owned and managed by a team of _____________ individuals with a total of _______ years experience in the field of ________________, a chief financial officer with _____ years of accounting and administrative experience, and _________ [list]. Products and Services The design and style of our products is unique. We offer superior quality and design at competitive prices. Our products are available in a variety of resilient finishes and colors so that customers have the flexibility to customize our furniture to their individual tastes. Our furniture is complemented by superior quality hardware in various popular faux antique finishes. All furniture products are made from _____________________ [list woods used]. No component parts, veneers or particle board are used. Goals and Objectives The Companys primary goal is to double its retail distributors in the next ____ year(s). While the Company current manufactures and sells ______________ [summarize furniture products], we will continue to expand and develop our existing product lines and add new product lines as customer demands dictate. It is our goal to design and introduce ____ products per year. Opportunities Short-term demand for household furniture is driven by disposable income, interest rates, and employment levels, while new housing starts and income growth drive mid- to long-term demand. Approximately _____ new housing starts were completed in the region during _____ [year], and another ______ are expected over the next 3-5 years, according to ______________ [check local economic development and housing authorities for information]. As a result, the demand for furniture will remain strong. Currently, there are only ____ furniture manufacturers in the area to satisfy this demand, and the Company is in an excellent position to capitalize on this opportunity. Competitive Advantage The Companys competitive advantage is its unique furniture design and quality, coupled with a competitive pricing strategy, strong market demand, and a strategic location close to suppliers,

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distributors, and consumers. The close proximity of our wood supplier(s) also gives us better control over inventory of raw materials, and reduces the risk of supply shortages. Marketing Strategy Household furniture is typically sold to consumers through retail outlets. The Companys promotional strategy targets both potential retail outlets and consumers. We have developed a catalogue featuring our product lines and samples of our wood finishes, which we distribute to targeted retailers. Retail outlets can use the catalogue to show customers any products not displayed in their showrooms and to order additional products. We have also developed a brochure for each product line, which is distributed to interested consumers through the retailers. The wood finish samples show customers the actual finishes and stains available for each line. Our products are priced competitively and take into account production costs, competitive pricing strategies and consumer price sensitivity. The Companys goal is to provide the highest quality furniture for the most reasonable price possible, while still maintaining healthy profit margins. Capital Requirements The Company requires an estimated $_________________ in [start-up/operating] capital. The [loan / equity investment] proceeds will be used to ______________________ [summarize how funds will be allocated]. With the capital raised, our expanded product lines and distribution, we project our revenues will be $________ in ______ [year], increasing to $__________ by ________. Direct cost of sales will average ___% of gross sales, including production wages at ____% and goods and materials at _____%. We project that net income will increase from $__________ in ______ [year] to $__________ in ________.

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I.

COMPANY OBJECTIVES

(NOTE: This section sets out the corporate objectives, mission statement, current phase of your business, and the companys goals and objectives for future growth.)

1.1

Goals & Objectives

[In this section, set out the companys goals (desired achievements / sales levels / etc) and objectives (steps necessary in order to reach the goals).] The Companys primary goals over the next _____ months are to: improve productivity by ____% and reduce costs by _____%; increase sales by ______%; attain gross margin of at least ____%; attain positive net worth by the end of Year ___; [list any other goals].

In order to attain the above goals, the Company will carry out the following specific objectives: 1.2 increase retail distribution of our new product lines by adding another _______ retailers to our distribution network; obtain a bank loan of $_____________ to ___________________ [describe what the financing is for]; expand product lines to meet increased customer demand; [list any other objectives].

Vision / Mission Statement

{This is where you will describe the companys vision (where the business is heading) and mission statement (how business will be conducted).] It is the Companys mission to continue to develop innovative and unique products, and to enhance and improve our existing products on an ongoing basis, in order to maintain our competitive position, market value and pricing strategy. We want every dollar spent with us to be well spent. We also create and nurture a healthy, creative, respectful, and fun working environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce. We seek fair and responsible profit, enough to keep the Company financially healthy for the long term and to fairly compensate owners and investors for their money and risk. 1.3 Factors for Success

Factors which can help assure the Companys success can be defined as follows: [list] 1.4 uncompromising commitment to the quality of the end product: quality wood, quality workmanship, quality design, quality of end result; keeping costs in line while still ensuring that we deliver maximum value to our customers; [list other success factors you feel will ensure the longevity of the business]

Risk Factors

The Company has identified the following risk factors which could hamper its success: problems generating visibility and product positioning; overly aggressive pricing policies by competitors and exporters; reversals in local or regional economic conditions; changes in consumer buying trends;

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changes in federal or state/provincial legislation applicable to the industry or to the lumber industry, which would affect supply of materials; natural disaster (fire, floods, insect infestations, etc.) affecting the supply of wood products; availability of skilled labor; [include any other risk factors]

Worst case scenarios would include: determining that the business cannot support itself on an ongoing basis; having to liquidate assets to cover liabilities; [include any other worst case situations]

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II.

OVERVIEW OF THE COMPANY

(NOTE: Use this section to describe the history, structure, purpose, operations, board of directors, outside consultants and strategic alliances of the business. If you are starting up a new company, describe the proposed structure, and set out the reasons for starting up the business.)

2.1

History & Structure

[The following is provided by way of example and should be revised to fit your particular circumstances.] The Company was incorporated on _____________ [date] in the [State/Province] of __________. The head office of the Company is located at [address]. To date, the Company has issued ___________ shares of common stock [provide details on all shares of stock issued and outstanding]. The following table sets out the current shareholders and the number of shares owned by each: Name of Shareholder Address No. & Class of Shares

The remainder of the issued and outstanding common shares are retained by the Company for [future distribution / allocation under the Companys employee stock option plan / etc]. The Company currently has outstanding shareholder loans in the aggregate $___________________. The following table sets out the details of the shareholder loans: Name of Shareholder Amount of Loan Date of Loan sum of

Balance Outstanding

2.2

Directors

The Companys Board of Directors, which [will be/is] made up of highly qualified business and industry professionals/experts, [will be a valuable asset to the Company and instrumental to its development by assisting/assists] our management team in making appropriate decisions and taking the most effective action; however, they [will not be/are not] responsible for management decisions. The following persons [will make up the/are the current] Board of Directors of the Company: [list each person on the Board] Name of Person business & educational background, past industry experience, other companies in which the person played a key role Name of Person business & educational background, past industry experience, other companies in which the person played a key role 2.3 Outside Consultants & Professional Advisors

At present, no outside consultants or professional advisors have been retained. [if outside consultants have been retained, list them and their credentials:] The Companys outside consultants and professional advisors provide tremendous input and support to enable management to make well-informed, creative and appropriate decisions: [name and brief resume of accountant/cpa]

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2.4

[name and brief resume of legal counsel] [others]

Strategic Alliances

[List strategic alliances / partnerships which assist the company in providing high quality service and establishing/maintaining its reputation, and which give the company an additional competitive edge] The Company has developed alliances with ______ major suppliers of wood products, namely ________________ [list]. The relatively close proximity of our suppliers means lower transportation and shipping costs. It also gives us better control over inventory of raw materials, and reduces the risk of supply shortages. Raw materials are readily available and our suppliers can respond quickly to any specialty orders. We are able to buy higher quality woods than our competitors. Finishes and stains are supplied by _______________. Hardware fittings, drawer pulls, handles, hinges, glass, shelving accessories, etc are ordered from specialty manufacturers, including ___________________ [list]. Our terms with these suppliers are typically _______ [e.g.: net ____ days]. 2.5 Facilities & Operations

[Describe the companys office(s), square footage, location, etc, and whether the company owns or leases its office(s). Also describe the companys computer systems, pagers, wireless, etc.] The Companys manufacturing plant is located at ________________. The plant is _________ square feet and is leased at a rate of $_____________ per month, [net / double net / triple net]. The facility includes a _____ square foot workshop floor, office space, a kitchen / lounge area and toilet facilities. Equipment in the plant includes [list equipment, e.g.: table saw, wide belt sander, spindle shaper, dust collection system, finishing sprayer, hand tools, work benches, _________. To comply with Workers Compensation Board and other environmental regulations applicable to the manufacturing sector, we have installed dust collection devices and an air circulation system to reduce the levels of volatile organic compound (VOC) emissions from the solvents and paints used in the manufacturing process. 2.6 Product Distribution

We currently have a distribution network of __________ local retailers. These include ________________ [list]. Distribution costs are kept to a minimum as the Company currently distributes only to retailers within ______ miles/kilometers of our manufacturing plant. The channel of distribution varies by retail customer and size of order. Small product orders are shipped by company truck to local retailers. Larger orders are either picked up by the retailer or are sent by ground carrier. The Company currently uses __________________ [name(s) of shipping companies used] for shipping. 2.7 Intellectual Property

The Company owns the following intellectual property: [list any trade marks, patents, industrial design patents, etc. owned by the company]

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III.

DESCRIPTION OF PRODUCTS & SERVICES

(NOTE: In this section, describe your current products and services, the unique features, prices, etc that you offer, current and future R&D plans, enhancements, production and distribution strategies. Include data on proprietary processes, patents, copyrights, etc, which make your products unique.)

3.1

Products & Services

[Describe the companys products and services in detail, and discuss why customers will purchase your products / services over those of your competitors.] The Company manufactures and sells unique, high quality handcrafted [oak / pine / cherry / etc.] furniture, including _____________________ [list]. All furniture is handmade, using only top quality wood products. The design and style of our products is unique. We offer superior quality and design at competitive prices. Our products are available in a variety of resilient finishes and colors so that customers have the flexibility to customize furniture to their individual tastes. Our products are complemented by superior quality hardware in various popular faux antique finishes. 3.2 Future Plans

The Company plans to develop several new product lines over the next _______ months, and increase distribution by adding another _______ distributors to our retail distribution network. In response to customer demand, new product lines being developed in the near future include _______________________. 3.3 Production

Furniture products are manufactured from _____________________ [list woods used]. No component parts, veneers or particle board are used. Products are manufactured on site using wood products purchased from local suppliers. The furniture components are manufactured in small qualities and kept in stock. As orders are received from retailers specifying a customers desired product and finish, parts are sprayed and assembled. Turnaround time is typically _____ business days, due to the drying time needed for the finishes and stains.

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