Академический Документы
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Trestle Creek Cabinets will be formed as a cabinet company specializing in custom cabinets for the high-end
residential, resort, and commercial market. Its founders have extensive experience in the construction and cabinet
industry. Trestle Creek Cabinets will operate under the umbrella of Trestle Creek, Inc., a construction company
sharing staff, office space, and administration costs. However, for the purpose of business planning, we are treating
Trestle Creek Cabinets as a separate company.
Over some years of being involved with the construction of luxury homes, the company owners have seen a need for
a cabinet line with a broad selection of design choices, high-end finishes, along with top of the line organization,
customer service, and quality. Trestle Creek Cabinets will meet those customers needs. Building a strong market
position in the high-end residential, resort, and commercial development segments, the company projects revenues
to grow substantially between FY1 and FY3. By maintaining an average gross margin of over 25%, the company
estimates handsome net profits by FY3.
The company owners have provided the capital to cover the start-up expenses. The company currently seeks a 3-
year commercial loan to cover the operating expenses.
1.1 Objectives
The company objectives are:
1.2 Mission
To deliver a high-quality product, on time and within budget while also providing a fast, error free ordering system.
Company Summary
Trestle Creek Cabinets is a new company that will provide expertise and quality in the cabinet supplier market while
meeting the demanding organizational, scheduling, and quality needs of architects, owners, and construction
professionals.
Start-up
Requirements
Start-up Expenses
Sign $1,154
Seat Cushions $338
Marketing $4,430
Start-up Assets
Long-term Assets $0
Start-up Funding
Liabilities
Current Borrowing $0
Capital
Planned Investment
Other $0
Products
Our product is essentially made with two main components.
1. The boxes and shelves will be ordered from two different suppliers (Cab Parts, Scheers), and will be
delivered in kitset form. They can be finished with custom veneers.
2. The doors, panels, and drawer fronts will come from four different suppliers: Bergmeyer Manufacturing,
Homestead Woods, Decore, and Southwest Door Company. We will have 4-6 custom designs, with unlimited
different custom finishes, available from Bergmeyer Manufacturing. The other suppliers will provide their stock
products.
In 2000, a total of 219 new residential homes worth $168 million were constructed in the Teton County, WY. If we
take an average of $40,000 per kitchen, (probably conservative), and multiply that by the 219 homes, that gives us a
total of $8,760,000 in kitchens installed for the year. We plan to acquire 4-5% of the market share of this residential
segment in our first year. We do not think this is unreachable, especially in a still growing market.
Teton County, Idaho has great potential as three new resort developments, Teton Springs Golf & Fishing Club, Grand
Targhee Resort Expansion, and Teton Country Club, come on line.
The following table outlines to total market potential of the three major customer segments in the Teton County.
Market Analysis
1. Resellers of complete cabinet sets using stock items where the cabinets turn up completely built. Usually
have no shop facilities but do have show rooms.
2. Custom shops with full, in-house fabrication facilities. They are usually very product orientated and under-
perform with customer support.
Trestle Creek Cabinets can provide high volume work, superior project management, and excellent quality while
maintaining a low overhead.
There are many competitors in the local market. Although each of them deliver a quality product, we feel they fail to
deliver a full turnkey package. There are four factors that govern the cost of all kitchen projects: Scope, Product,
Design, and Services. Most people mistakenly think that the size of the project and the choice of brand name
products will make for the best results. But it is the design and a company's services that will have the greatest
impact on the quality and value of the customers investment.
Having a showroom will be a sales tool in itself. A showroom will give us exposure to the general public, new arrivals
to the area, and construction professionals.
Sales
Other $0 $0 $0
Other $0 $0 $0
5.3 Milestones
The accompanying table lists important program milestones, with dates and managers in charge, and budgets for
each. The milestone schedule indicates our emphasis on planning for implementation.
Milestones
Design Sales Literature 1/22/2001 1/31/2001 $1,000 Brent & Marty Department
Make Industry Contacts 1/15/2001 2/28/2001 $1,000 Marty & Brent Department
Showroom Feasability Study 1/25/2001 1/31/2001 $1,000 Marty & Brent Department
Totals $7,950
Management Summary
Martin Kribs, President, has 20 years of construction experience, from general contracting, construction
management, and having his own cabinet business.
Brent Palmer, V. President, has three years of construction experience and spent the last six years in management
within the hospitality industry.
Personnel Plan
Financial Plan
Below are the initial financial goals for the company:
The financial plan for Trestle Creek Cabinets is outlined in the following sections.
General Assumptions
Plan Month 1 2 3
Other 0 0 0
Assumptions:
Other $0 $0 $0
Expenses
Depreciation $0 $0 $0
Other $0 $0 $0
Cash Received
Dividends $0 $0 $0
Assets
Current Assets
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Current Liabilities
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Ratio Analysis
Percent of Sales
Main Ratios
Activity Ratios
Debt Ratios
Liquidity Ratios
Additional Ratios
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
Sales
Cabinets 0% $0 $0 $42,000 $12,500 $80,000 $30,000 $50,000 $55,000 $60,000 $45,000 $37,500 $30,000
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $0 $42,000 $12,500 $80,000 $30,000 $50,000 $55,000 $60,000 $45,000 $37,500 $30,000
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cabinets $0 $0 $0 $9,000 $57,600 $21,000 $36,000 $41,500 $48,000 $36,000 $30,000 $22,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $9,000 $57,600 $21,000 $36,000 $41,500 $48,000 $36,000 $30,000 $22,500
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
Martin Kribs 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Brent Palmer 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Carpenters 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Total People 3 3 3 3 3 3 4 4 4 4 4 4
Total Payroll $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
General Assumptions
Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
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
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Tax Rate 30.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
12
Sales $0 $0 $42,000 $12,500 $80,000 $30,000 $50,000 $55,000 $60,000 $45,000 $37,500 $30,000
Direct Cost of Sales $0 $0 $0 $9,000 $57,600 $21,000 $36,000 $41,500 $48,000 $36,000 $30,000 $22,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $9,000 $57,600 $21,000 $36,000 $41,500 $48,000 $36,000 $30,000 $22,500
Gross Margin $0 $0 $42,000 $3,500 $22,400 $9,000 $14,000 $13,500 $12,000 $9,000 $7,500 $7,500
Gross Margin % 0.00% 0.00% 100.00% 28.00% 28.00% 30.00% 28.00% 24.55% 20.00% 20.00% 20.00% 25.00%
Expenses
Payroll $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Insurance $95 $95 $95 $95 $95 $95 $95 $95 $95 $95 $95 $95
Rent $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
Payroll Taxes 15% $825 $825 $825 $825 $825 $825 $1,125 $1,125 $1,125 $1,125 $1,125 $1,125
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $8,520 $8,520 $29,016 $9,170 $12,554 $8,920 $14,820 $11,820 $11,220 $11,070 $11,070 $11,220
EBITDA ($8,520) ($8,520) $12,984 ($5,670) $9,846 $80 ($820) $1,680 $780 ($2,070) ($3,570) ($3,720)
Interest Expense $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333 $333
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($8,853) ($8,853) $12,651 ($6,003) $9,513 ($253) ($1,153) $1,347 $447 ($2,403) ($3,903) ($4,053)
Net Profit/Sales 0.00% 0.00% 30.12% -48.03% 11.89% -0.84% -2.31% 2.45% 0.74% -5.34% -10.41% -13.51%
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 Sales $0 $0 $10,500 $3,125 $20,000 $7,500 $12,500 $13,750 $15,000 $11,250 $9,375 $7,500
Cash from Receivables $0 $0 $0 $1,050 $30,763 $11,063 $58,750 $23,000 $37,625 $41,375 $44,625 $33,563
Subtotal Cash from Operations $0 $0 $10,500 $4,175 $50,763 $18,563 $71,250 $36,750 $52,625 $52,625 $54,000 $41,063
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
Cash Spending $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Bill Payments $112 $3,353 $4,037 $23,488 $14,736 $63,646 $25,383 $43,737 $46,350 $51,648 $39,703 $33,658
Subtotal Spent on Operations $5,612 $8,853 $9,537 $28,988 $20,236 $69,146 $32,883 $51,237 $53,850 $59,148 $47,203 $41,158
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $5,612 $8,853 $9,537 $28,988 $20,236 $69,146 $32,883 $51,237 $53,850 $59,148 $47,203 $41,158
Net Cash Flow ($5,612) ($8,853) $963 ($24,813) $30,526 ($50,584) $38,367 ($14,487) ($1,225) ($6,523) $6,797 ($96)
Cash Balance $83,687 $74,834 $75,797 $50,984 $81,511 $30,927 $69,294 $54,807 $53,582 $47,059 $53,855 $53,759
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 Assets
Cash $89,299 $83,687 $74,834 $75,797 $50,984 $81,511 $30,927 $69,294 $54,807 $53,582 $47,059 $53,855 $53,759
Accounts Receivable $0 $0 $0 $31,500 $39,825 $69,063 $80,500 $59,250 $77,500 $84,875 $77,250 $60,750 $49,688
Other Current Assets $14,478 $14,478 $14,478 $14,478 $14,478 $14,478 $14,478 $14,478 $14,478 $14,478 $14,478 $14,478 $14,478
Total Current Assets $103,777 $98,165 $89,312 $121,775 $105,287 $165,051 $125,905 $143,022 $146,785 $152,935 $138,787 $129,083 $117,925
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 Assets $103,777 $98,165 $89,312 $121,775 $105,287 $165,051 $125,905 $143,022 $146,785 $152,935 $138,787 $129,083 $117,925
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 $3,242 $3,242 $23,054 $12,570 $62,821 $23,928 $42,198 $44,615 $50,318 $38,573 $32,773 $25,668
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $3,242 $3,242 $23,054 $12,570 $62,821 $23,928 $42,198 $44,615 $50,318 $38,573 $32,773 $25,668
Long-term Liabilities $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000
Total Liabilities $40,000 $43,242 $43,242 $63,054 $52,570 $102,821 $63,928 $82,198 $84,615 $90,318 $78,573 $72,773 $65,668
Paid-in Capital $88,419 $88,419 $88,419 $88,419 $88,419 $88,419 $88,419 $88,419 $88,419 $88,419 $88,419 $88,419 $88,419
Retained Earnings ($24,642) ($24,642) ($24,642) ($24,642) ($24,642) ($24,642) ($24,642) ($24,642) ($24,642) ($24,642) ($24,642) ($24,642) ($24,642)
Earnings $0 ($8,853) ($17,707) ($5,056) ($11,059) ($1,547) ($1,800) ($2,953) ($1,607) ($1,160) ($3,563) ($7,467) ($11,520)
Total Capital $63,777 $54,923 $46,070 $58,721 $52,717 $62,230 $61,977 $60,823 $62,170 $62,617 $60,213 $56,310 $52,257
Total Liabilities and Capital $103,777 $98,165 $89,312 $121,775 $105,287 $165,051 $125,905 $143,022 $146,785 $152,935 $138,787 $129,083 $117,925
Net Worth $63,777 $54,923 $46,070 $58,721 $52,717 $62,230 $61,977 $60,823 $62,170 $62,617 $60,213 $56,310 $52,257