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Business Plan for Fashion Retail

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This Business Plan for a Fashion Retail business allows entrepreneurs or business owners to create a comprehensive and professional business plan. This template form allows a business to outline the company's objectives and detail both current company information as well as any past performance. Companies should include a complete market analysis in their plan to help showcase why their business strategy will be effective in the market. Future company plans, including production targets, management strategy, and financial forecasting, should be used to demonstrate and confirm that the company's short-term and long-term objective can and will be met. This model plan can be customized to best fit the unique needs of any entrepreneur or owner that is seeking to create a strong business plan.

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									This Business Plan for a Fashion Retail business allows entrepreneurs or business
owners to create a comprehensive and professional business plan. This template form
allows a business to outline the company's objectives and detail both current company
information as well as any past performance. Companies should include a complete
market analysis in their plan to help showcase why their business strategy will be
effective in the market. Future company plans, including production targets,
management strategy, and financial forecasting, should be used to demonstrate and
confirm that the company's short-term and long-term objective can and will be met. This
model plan can be customized to best fit the unique needs of any entrepreneur or owner
that is seeking to create a strong business plan.
            COMPANY NAME
                   OWNER’S NAME, Fashion Designer




                                BUSINESS PLAN 20__




© Copyright 2012 Docstoc Inc.                        1
                                                       Confidentiality Agreement

The undersigned reader acknowledges that the information provided by COMPANY NAME in this business plan is confidential; therefore,
reader agrees not to disclose it without the express written permission of COMPANY NAME.

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than
information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm
or damage to COMPANY NAME.

Upon request, this document is to be immediately returned to COMPANY NAME.


Signature




___________________
Name (typed or printed)




___________________
Date




                                    This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                                                   2
                                                                   Table of Contents



      Chart: Highlights .................................................................................................................................... 1
   1.1 Objectives ............................................................................................................................................ 2
   1.2 Mission ................................................................................................................................................ 2
   1.3 Keys to Success ................................................................................................................................... 2
2.0 Company Summary .................................................................................................................................. 2
Mission ......................................................................................................................................................... 2
   2.1 Company Ownership ............................................................................................................................ 3
   2.2 Start-up Summary ................................................................................................................................ 3
      Table: Start-up ....................................................................................................................................... 3
      Chart: Start-up ....................................................................................................................................... 4
3.0 Products .................................................................................................................................................. 5
4.0 Market Analysis Summary ......................................................................................................................... 5
   4.1 Market Segmentation ............................................................................................................................ 5
      Table: Market Analysis ........................................................................................................................... 6
      Chart: Market Analysis (Pie) .................................................................................................................... 6
   4.2 Target Market Segment Strategy ........................................................................................................... 7
   4.3 Industry Analysis .................................................................................................................................. 7
      4.3.1 Competition and Buying Patterns .................................................................................................... 8
5.0 Strategy and Implementation Summary ...................................................................................................... 8
   5.1 SWOT Analysis .................................................................................................................................... 9
      5.1.1 Strengths ...................................................................................................................................... 9
      5.1.2 Weaknesses.................................................................................................................................. 9
      5.1.3 Opportunities ................................................................................................................................. 9
      5.1.4 Threats ......................................................................................................................................... 9
   5.2 Competitive Edge ................................................................................................................................. 9
   5.3 Marketing Strategy.............................................................................................................................. 10
   5.4 Sales Strategy .................................................................................................................................... 11
      5.4.1 Sales Forecast ............................................................................................................................ 12
6.0 Management Summary ........................................................................................................................... 14
   6.1 Personnel Plan ................................................................................................................................... 14
      Table: Personnel .................................................................................................................................. 14
7.0 Financial Plan ........................................................................................................................................ 15
7.0 Financial Plan ........................................................................................................................................ 15
   7.1 Start-up Funding................................................................................................................................. 15
      Table: Start-up Funding ........................................................................................................................ 15
   7.2 Important Assumptions ....................................................................................................................... 16
   7.3 Break-even Analysis ........................................................................................................................... 16
   7.4 Projected Profit and Loss .................................................................................................................... 17
   7.5 Projected Cash Flow ........................................................................................................................... 19
      Chart: Cash ......................................................................................................................................... 20
   7.6 Projected Balance Sheet ..................................................................................................................... 21
      Table: Balance Sheet ........................................................................................................................... 21
   7.7 Business Ratios.................................................................................................................................. 22
      Table: Ratios ....................................................................................................................................... 22




                                                                                                                                                        Page 1
                                                     COMPANY NAME



1.0 Executive Summary

    COMPANY NAME is a manufacturer and retailer of an upscale clothing line targeted at females between the ages of 26 and 55.
    COMPANY NAME not only develops the clothing line, but will support it with advertising and promotion campaigns. OWNER’S NAME
     plans to strengthen partnerships with retailers by hiring an independent consultant merchandise placement specialist, thereby
    developing brand awareness. COMPANY NAME intends to market its line as an alternative to existing upscale clothing lines and
    differentiate itself by marketing strategies, exclusiveness, and high brand awareness.

    COMPANY NAME is a Company that creates chic lines of clothing for women that love what they choose to wear and care how they
    present their image in public. It's a line made exclusively for the fashion forward and bold - the young woman who is not afraid to
    stand out and break outside of the norm.

    The key message associated with the COMPANY NAME line is classy, upscale, versatile, and high-quality clothing. The Company's
    promotional plan is diverse and includes a range of marketing communications. In the future, the company hopes to develop lines
    of clothing for men and women.




    Chart: Highlights




                                                                                                                              Page 1
                                                        COMPANY NAME



1.1 Objectives

        To establish ourselves as a premier fashionable clothing company, targeting professionals --working professionals and medium
         to fashion forward working professionals in both the academic, entertainment, and design industries.
        To sell more than 650K in annual sales by year two, providing high quality clothing with A-list designs for people with polished
         and elegant taste.
        To reach a break-even point by the end of year one.

1.2 Mission

    COMPANY NAME intends to develop an inventory of unique fashion products that can add value of every woman's wardrobe. These
    products, which will be sourced and manufactured in the United States, can be added as staple, fashionable simple pieces to
    enhance the image experience to women that hold fashion, quality and high-end design of utmost importance.

    It is COMPANY NAME's mission is to bring back the enchantment of clothing all over again in the Company's couture lines.

1.3 Keys to Success

    COMPANY NAME believes that it has the right fashionable clothing line and the right people desiring it to attract a loyal customer
    base. But most importantly, it is OWNER’S NAME 's business philosophy that will ensure success. The fashion and retail industry
    demands that products be delivered on time and with high quality execution. Pursuant to these demands:

    COMPANY NAME will satisfy this demand by maintaining acceptable inventory levels that will be delivered on time according to pre-
    arranged shipping schedules.

    In addition to offering a complete line of high quality clothing, COMPANY NAME will offer a unique line of products that will
    encourage fashion specialty distributors to think of this company first when looking for original products.

2.0 Company Summary

    Mission

    The mission of the company is to provide COMPANY NAME for consumers, based on style and quality.

    Legal Business Description

    COMPANY NAME was founded as a California C-Corporation with principal offices located in Los Angeles, CA. All operations, from
    administration to marketing strategies, take place at OWNER’S NAME 's home studio located in Downtown Los Angeles.

    Strategy

    The COMPANY NAME strategy is to aggressively develop and market a full range collection to consumers. The company intends to
    market its line as an alternative to existing clothing lines and differentiate itself through its marketing strategies, exclusiveness, and
    brand awareness. COMPANY NAME intends to build on its core portfolio of products and overcome any obstacles by using the
    company's expertise in the clothing industry.

    The company's goal in the next year is to make an overwhelming impact on the fashion industry and create a large consumer demand
    for the product. The company's goal in the next 1-5 years is to venture into high-end women's clothing. It plans to also produce a line
    of menswear in the future. According to Standard & Poor's (S&P's), women's apparel accounted for 52% of total apparel sales in
    2010.




                                                                                                                                    Page 2
                                                    COMPANY NAME



2.1 Company Ownership

    COMPANY NAME is a privately held C-Corporation organized in the State of California owned in total by its founder, OWNER’S
    NAME . The Company's Articles of Incorporation were filed in 2010.

2.2 Start-up Summary

    Total start-up expense (including legal cost, logo design, equipment and related expenses) comes to $97,600. The table below
    illustrates a complete breakdown of all start-up assets that are needed, as total start-up requirements. Currently, COMPANY NAME
    does not have short-term liabilities.

Table: Start-up

Start-up

Requirements

Start-up Expenses
Marketing/PR                                                                                                          $24,000
Branding/Packaging                                                                                                    $25,000
Studio Equipment                                                                                                      $10,000
Office Equipment                                                                                                       $2,000
Website and E-commerce                                                                                                $10,000
Trade Show Expenses                                                                                                   $40,000
Legal Fees                                                                                                             $8,000
Tax Deposits                                                                                                           $5,000
Storage (6 months)                                                                                                     $4,500
Photography                                                                                                            $3,500
Inventory                                                                                                            $100,000
Photography                                                                                                           $80,000
Fabric and Notions                                                                                                     $4,000
Total Start-up Expenses                                                                                              $316,000

Start-up Assets
Cash Required                                                                                                          $5,000
Other Current Assets                                                                                                       $0
Long-term Assets                                                                                                           $0
Total Assets                                                                                                           $5,000

Total Requirements                                                                                                   $321,000




                                                                                                                           Page 3
                  COMPANY NAME



Chart: Start-up




                                 Page 4
                                                        COMPANY NAME



3.0 Products

    COMPANY NAME products will be priced at the higher end to reflect the quality and exclusiveness associated with the brand. The
    Company will use high-end materials such as silk, wool, blends, fine woven knits and chiffon. When a markup is placed on
    COMPANY NAME products, customers are willing to pay the premium because of the perceived value and quality guarantee that
    comes with all products. The COMPANY NAME line is targeted at females between the ages of 26 and 55 years.

4.0 Market Analysis Summary

    Market Description

    Apparel sales are driven by economic conditions, demographic trends, and pricing. Fashion, while important for an individual
    company, plays a limited role in overall market demand. Sales of apparel at the retail level rose approximately 4.7% in 2010,
    according to NPD Group, Inc., a market research firm located in Port Washington, New York.

    The apparel and footwear industries are highly competitive, and both have attempted to lower manufacturing costs by moving
    production to such places as Mexico, Central America, and Asia. As a result, employment levels for U.S. manufacturing industry
    employees fell to 713,000 in February 2009 according to the Department of Labor. This was down 10% from the year-earlier level
    and 52% from 1990. The number of domestic non-rubber footwear employees declined 15%, year to year, in 2008, and 86% since
    1998, according to the Footwear Industries of America, an industry trade group based in Washington, D.C.

    The Apparel Industry

    The U.S. apparel industry is large, mature, and highly fragmented. Apparel sold in the United States is produced both domestically
    and in foreign locations. According to estimates from the American Apparel Manufacturers Association (AAMA), an industry trade
    group based in Arlington, Virginia, the dollar value of domestic apparel production was $39 billion at the wholesale level in 2007 (latest
    available), which was less than the $46 billion (U.S. wholesale value) of goods imported into the United States. In addition, $15 billion
    of goods were produced in both the United States and other countries.

    The U.S. apparel market can be divided into two tiers: national brands and other apparel. National brands are produced
    by approximately 20 sizable companies and currently account for some 30% of all U.S. wholesale apparel sales. The second tier,
    accounting for 70% of all apparel distributed, comprises small brands and store (or private-label) goods.

    Apparel is sold at a variety of retail outlets. Based on data from NPD Group, discount stores, off-price retailers, and factory outlets
    accounted for 30% of 2008 apparel sales, while specialty stores and department stores accounted for 22% and 18%, respectively.
    Another 17% were sold at major chains, and direct mail/catalogs accounted for 6%. The remaining 7% of apparel sales occurred
    through other means of distribution.

4.1 Market Segmentation

    The company plans to target males between the ages of 26 and 55 with a combined household income of more than $70,000. Within
    this group, there are no color barriers, and customers have diverse backgrounds. The COMPANY NAME customer is a versatile
    woman who can fit into any environment and is willing to pay a high price for quality clothing.

    The company's target group is seen as having enough disposable income to spend on high priced quality clothing. From 1984 to
    1991, for example, disposable personal income grew at a healthy average annual of 7.0%. Apparel and footwear expenditures
    increased at a strong .2% annual rate during the same period. In the 1990s, however, growth in personal income slowed somewhat
    and so did apparel expenditures. From 2001 to 2008, disposable personal income rose at an average annual rate of 4.7%, while
    apparel and footwear expenditures grew 4.5% per year.

    According to S&P's, in the women's apparel segment, much of the growth in spending is being driven by consumers with annual
    household incomes of more than $70,000. Spending in this segment increased by approximately 13% in 2008. Apparel purchases by
    women from households with incomes between $40,000 and $69,999 grew by 7% in 2008. Women's apparel sales at department
    stores and off-price retailers grew at double-digit rates in 2008.
                                                                                                                                    Page 5
                                                     COMPANY NAME




    As growth slows in the mature U.S. apparel and footwear markets, companies are increasingly looking overseas for growth
    opportunities. American brands translate well internationally, and many expanding economies overseas are interested in buying U.S.
    products.

    International business has therefore become a focus of some U.S. companies.

    Many apparel and footwear manufacturers see Europe, with a population of 350 million, as an attractive market. Tommy Hilfiger and
    Polo Ralph Lauren opened flagship stores in London in an effort to build up their brands in Europe. Expansion in Asia, however, has
    been sidelined by economic troubles. In other parts of the world, footwear company Payless ShoeSource Inc., has been performing
    well in Canada and South America.

Table: Market Analysis

Market Analysis
                                                 Year 1          Year 2           Year 3         Year 4          Year 5
Potential Customers                Growth                                                                                       CAGR
Women Aged 26 - 55                    15%     2,500,000       2,875,000       3,306,250       3,802,188       4,372,516        15.00%
Women Under 26                        10%     1,500,000       1,650,000       1,815,000       1,996,500       2,196,150        10.00%
Women Over 55                          5%     1,250,000       1,375,000       1,512,500       1,663,750       1,830,125        10.00%
Total                              12.46%     5,250,000       5,900,000       6,633,750       7,462,438       8,398,791        12.46%



    Chart: Market Analysis (Pie)




                                                                                                                              Page 6
                                                      COMPANY NAME



4.2 Target Market Segment Strategy

    COMPANY NAME seeks to compete with like high-quality clothing lines such as:

    1. Costume National
    2. The Row
    3. Stella McCartney
    4. Dolce and Gabanna
    5. Helmut Lang
    The Company believes that the same demographic and target market would appreciate and desire COMPANY NAME 's unique,
    simple and classic designs.

4.3 Industry Analysis

    According to a new study that Karpova collaborated on with ISU graduate student Juyoung (Jill) Lee, the U.S. industry's
    fast fashion focus has resulted in diminishing returns on market share -- both at home, and abroad in Japan.

    "These findings confirm empirically what scholars have been speculating about," Karpova said. "There was a very strong push in the
    1980s from the apparel industry and associated interest groups to make American consumers buy 'Made in the USA' apparel. The
    industry went this route in the hope that U.S. consumers would support the industry. And they didn't. They just didn't see value when
    they compared the quality of U.S. apparel with imports."

    Lee and Karpova's study, "The U.S. and Japanese apparel demand conditions: implications for industry competitiveness," appears in
    the latest issue of the Journal of Fashion Marketing and Management. The ISU researchers used government trade and consumption
    data from 1995-2004 from both countries in their analysis.

    Price-conscious consumers shape U.S. market

    Based on calculated price and income elasticities, they report that price sensitivity of U.S. consumers shaped the nation's apparel
    domestic market to keep product price low rather than increase its quality with respective price. They found that U.S. consumers were
    primarily price-conscious in purchasing clothes. By contrast, Japanese consumers increased their purchases of higher quality,
    domestically produced apparel, but decreased the purchase of low quality imported apparel when its price increased.

    Census data shows that domestic output of U.S. apparel producers dropped by 40 percent between 1995 and 2004, even though the
    overall market expanded -- fueled by a 50 percent increase in imports. At the same time, the Japanese market shrank by 50 percent,
    but Japanese apparel firms held their domestic market share during that decrease. Lee says the U.S. now ranks third among apparel
    importers to the country.

    The researchers contend that the U.S. apparel industry's focus on lower quality, low cost clothes -- an attempt to compete with
    inexpensive imports -- was a reason for decreasing industry competitiveness amid a booming U.S. market.

    "I think because U.S. consumers have been price conscious, they generated the whole trend in the industry called 'fast fashion,'"
    Karpova said. "American consumers want styles to change quickly and they want to see new merchandise in their favorite stores
    almost every week -- and at affordable prices. And that has meant that U.S. companies produce lower quality items that last a shorter
    period of time."

    Japanese consumers prefer higher quality apparel

    The study found that Japanese consumers' preference for higher quality, luxury apparel and their willingness to pay for it encourage
    the nation's domestic producers to focus on those types of products. And that focus allowed the Japanese apparel industry to
    differentiate their output from the lower quality imported apparel and allow it to maintain its domestic market share.




                                                                                                                                Page 7
                                                        COMPANY NAME



    Lee sees the study amplifying the cultural differences between the U.S. and Japanese apparel markets.

    "The most interesting thing about the Japanese market is that they don't think young people have money and older people have all
    the disposable income," said Lee, who lived in Japan from 2005 to 2010. "So there are so many commercials on TV targeting older
    people buying very nice fashion clothes -- things you don't see in the U.S. And all of the department stores are filled with clothes that
    appeal to older people, too."

    Karpova says the study should also give U.S. apparel producers something to think about as they move forward.

    "I think the U.S. apparel industry has been and continues to be extremely strong in terms of its portfolio of global brands," she said.
    "But companies should look more into being socially responsible in their production -- no sweatshops -- with environmentally friendly
    materials and processes, sustainable design and style choices that will last a long time."

4.3.1 Competition and Buying Patterns

    Although the apparel industry is mature and slow growing, it exists in a dynamic and competitive environment. In order to improve
    profitability, many companies are restructuring to create leaner organizations and adopt new technologies. Consolidation has been
    prevalent in this industry in the past few years, as larger companies gain leverage in market position and cost cutting. In the apparel
    industry, companies can operate as retailers or manufacturers (wholesalers) or both. For instance, American Apparel, a vertical
    retailer, manufactures and markets their own apparel and accessories. A company like VG Corporation is a manufacturer and sells
    solely to retail channels. A company like Tommy Hilfiger does both, selling its products to both retailers and consumers (through retail
    outlets).

5.0 Strategy and Implementation Summary

    Marketing

    COMPANY NAME not only develops the clothing line but supports it with advertising and promotion campaigns. The Company plans
    to strengthen its partnership with retailers by developing brand awareness.

    Marketing Communications

    The key message associated the COMPANY NAME line is classy, upscale, versatile, and not the most expensive clothing. The
    Company's promotional plan is diverse and includes a range of marketing communications:

        Public relations. Press releases are issued to both technical trade journals and major business publications such as DNR
         Magazine.
        Trade shows. OWNER’S NAME will attend and participate in several trade shows such as Magic in Las Vegas.
        Internet. COMPANY NAME plans to establish a presence on the Internet by developing a website. Plans are underway to
         develop a professional and effective site that will be interactive and from which sales will be generated worldwide. In the future,
         this is expected to be one of the Company's primary marketing channels.
        Other. The company also plans to use various other channels including billboards, print advertising and attending target market
         events.




                                                                                                                                   Page 8
                                                          COMPANY NAME



5.1 SWOT Analysis

    The SWOT analysis provides COMPANY NAME with an opportunity to examine the internal strengths and weaknesses the
    Company must address. It also allows to examine the opportunities presented to COMPANY NAME as well as potential threats.

5.1.1 Strengths

        High quality clothing with large attention to detail in the design, the fabrics and the manufacturing.
        Valuable classic pieces that can be used as a "staple" in any woman's closet year after year.
        An excellent alternative and happy medium choice for women that want high-end clothing choices at an affordable and realistic
         price.
        Several items from the clothing line are made to be mixed and matched, offering versatility and purchasing value for the
         consumer.
        Couture yet classic clothing at an attainable price.

5.1.2 Weaknesses

        Access to additional operating capital.
        Owner is still climbing the "retail experience curve."
        Lack of recognition of the clothing line and brand.
        No physical storefront location in operation, which hinders the visibility of the line.
        Challenges of the seasonality of the business.

5.1.3 Opportunities

        Growing market with a significant percentage of the target market still not knowing we exist.
        Strategic alliances offering sources for referrals and joint marketing activities to extend COMPANY NAME 's reach.
        Promising activity from high levels of online shopping reported in the last three years.
        Changes in buying trends for high fashion, therefore generating sales.
        Increasing sales opportunities beyond a "100-mile" target area by offering sales of the items from a virtual online store.
        Creating buzz and attracting consumers by word-of-mouth by offering high end clothing for less cost than Prada, Hermes and
         Vera Wang, for example.

5.1.4 Threats

    1.   Rapid rise of consignment stores. Shops such as Buffalo Exchange, American Vintage, Aardvarks, Goodwill, etc. provides
         rich and poor alike fantastic deals on used or vintage clothing and sometimes overlooked high-end design items. Current trends
         have established that it is much more chic to mix and match used clothing pieces with couture for a style statement. This is also
         appealing as this method is economical for consumers.
    2.   The unstable economic climate. Even though the industry is still thriving, many people of cut back on what they spend their
         money on and budget far more. Because the mindset is already "if's it high-end, I can't afford it", COMPANY NAME will have to
         work harder to portray its company image and convince the target market that they can afford COMPANY NAME's clothing
         pieces and designs.

5.2 Competitive Edge

    In a market where consumers are barraged by advertising and marketing campaigns delivering an onslaught of lifestyle and fashion
    messages, a brand name is a powerful weapon. Brands have become an increasingly significant factor in apparel and footwear.
    Many consumers have less time to shop and are spending their disposable income more carefully. Established brand names, with
    their quality image, make the shopping experience easier and faster for many consumers. For manufacturers, brands build consumer
    loyalty, which translates into repeat business and brand notoriety.



                                                                                                                                 Page 9
                                                       COMPANY NAME



    The company's name, COMPANY NAME, is a competitive advantage in itself. The name is not attached to any particular group of
    customers and it allows entry into different segments of the industry. Another competitive advantage is the company's marketing
    strategy. Through the use of celebrities, advertising, promotion, and giveaways, the company is able to develop its presence in the
    market. Although the Company will use retailers to sell its line, most of the sales will be done online.

    What makes COMPANY NAME clothing so unique is the versatility of each piece. Most of the clothing can be worn during the day at
    work and in turn be used again in the evening out on the town. The clothing is designed with women's fashion needs in mind, but also
    on their hectic fast-paced lifestyles. In addition, several of the pieces from the clothing line are designed to be mixed and matched
    offering more "bang for your buck". Women will be more inclined to purchase several pieces from each emerging clothing line for the
    convenience and style behind this concept.

5.3 Marketing Strategy

    COMPANY NAME will focus its marketing efforts through the following several key vehicles:

    Exclusive Fashion Show Venues - The Company will attend and exhibit in large pre-collection fashion shows in addition to annual
    industry fashion shows (i.e. Fashion Week). COMPANY NAME will also exhibit the lines at many other fashion trade shows in order
    to introduce the brand and the designs to potential retail and boutique buyers.

    Celebrity Representation - COMPANY NAME will propose the use of a few key pieces to the likes of celebrity stylists and handlers
    to further promote the Company's chic and exclusive image.

    Lookbook.nu - Lookbook is an excellent way for designers to connect with potential clients on a personal level. This allows for the
    clothing to be presented to would-be consumers on a one-on-one basis via the internet (where many women shop today). Many do
    not live in a large metropolitan area where fashion has a large presence, so this would reach those who are looking for high design
    that is original. This will also keep people in the loop when it comes to the debut of new lines being presented by COMPANY NAME .

    Marketing and Public Relations - The Company will hire a professional individual or firm be in contact with fashion magazines such
    as Glamour, Vogue, Instyle and Harper's Bazaar to announce the debut of new collections and increase visibility amongst COMPANY
    NAME 's target market.

    Word of Mouth - Naturally, when a great product is presented into the general market place and fills a definite need, word will
    spread. For instance, if Jane wants to know where Mary got that fantastic skirt that she wore to the party, Mary will tell her. In turn,
    Jane will go to the website or visit the boutique for the same or similar pieces. When Samantha asks Jane where she got her lovely
    slim cut trousers, Samantha may take interests in browsing the catalog. And so on and so forth.




                                                                                                                                 Page 10
                                                       COMPANY NAME




5.4 Sales Strategy

    Sales and Distribution Strategy

    COMPANY NAME intends to build a sales team that will be tasked with generating sales leads on a regional and national basis. They
    will also be responsible for establishing connections with retail outlets.

    A key factor in the success of COMPANY NAME will be its distribution. The company plans to use the following retail distribution
    channels:

        Department stores
        Apparel specialty stores
        Internet store

    In recent years, several large retail chains-particularly in the athletic footwear sector-have developed formats called superstores,
    which have more square footage dedicated to a particular product category.

    Consumers buy apparel and footwear from a variety of retail outlets. In 1998, discount, off-price, and factory outlet stores accounted
    for 30% of apparel sales, specialty stores accounted for roughly 22%, department stores for 18%, and major chains for 17%,
    according to data from NPD Group Inc., the remaining 13% was sold through mail order and other means.

    Differences exist in the distribution mix for men's, women's, and children's items. For example, more women's apparel is purchased
    in specialty and department stores than is the case for men's apparel. Men's apparel is more prevalent in discount stores and general
    merchandise chains. In the children's segment, a considerably higher portion of apparel is purchased in discount stores.

    Catalogs are another important method of distribution. Consumers have less time to shop, and for some, catalog shopping offers a
    more convenient and pleasant alternative. In 2008 (latest available) an estimated 13.3 billion direct mail catalogs were printed in the
    United States--more than 50 for every man, woman, and child in the nation. According to NPD Group, approximately 6% of apparel
    retail sales were through direct mail/catalogs in 2008, representing a 29% decline from 2007.

    The distribution channel that has received the most attention recently is the Internet. Consumers like the convenience of being able
    to shop from anywhere and at any time they wish. Manufacturers with Internet sites use them for marketing and informational
    purposes. With further technological advances in hardware, software, and data pipelines, shopping for apparel and footwear
    continues to gain popularity.




                                                                                                                                Page 11
                                                        COMPANY NAME



5.4.1 Sales Forecast

    The following table and charts portray COMPANY NAME 's sales forecast. The Company expects that sales will start off a bit
    conservatively and will steadily increase over the course of the first year. As indicated in the table, sales are forecasted to increase
    rapidly, with an average annual growth rate of approximately 5%.

Sales Forecast
                                                                                Year 1                   Year 2                    Year 3
Sales
Online Sales                                                                 $251,609                  $301,931                 $362,317
Wholesales                                                                 $1,140,115                $1,368,138               $1,641,766
Total Sales                                                                $1,391,724                $1,670,069               $2,004,083

Direct Cost of Sales                                                           Year 1                   Year 2                    Year 3
Manufacturing                                                                $901,368                 $946,436                  $993,758
Other                                                                              $0                       $0                        $0
Subtotal Direct Cost of Sales                                                $901,368                 $946,436                  $993,758




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COMPANY NAME




               Page 13
                                                      COMPANY NAME




6.0 Management Summary

     The Company's management philosophy is based on responsibility and mutual respect. COMPANY NAME will have an environment
     and structure that encourages productivity and respect for customers and fellow employees.

     The initial run of operations will be provided by the owner herself, OWNER’S NAME. Her experience has been drawn from her
     involvement and passion in design and in retail in past starting from when she interned for the Oscar Odelia Custom
     Tailors showroom in Downtown Los Angeles one summer. There she learned the ropes of the business, including pattern making and
     sewing. She will handle outsourcing manufacturing, accounting, trade show assistance, couriers and sales. As the demand for the
     product grows, she will hire the appropriate personnel accordingly.

6.1 Personnel Plan

     The Personnel Plan chronicles the growth of the organization to approximately 2 employees in Year 2. Each year may require a few
     additional people besides those indicated, based on the growth of the company in accordance with the Business Plan.

Table: Personnel

Personnel Plan
                                                                                   Year 1                Year 2                Year 3
OWNER’S NAME                                                                          $0                $60,000               $85,000
Administration                                                                        $0                $36,000               $40,000
Total People                                                                            1                     2                     4

Total Payroll                                                                          $0               $96,000              $125,000




                                                                                                                            Page 14
                                                      COMPANY NAME



7.0 Financial Plan

     The Company is seeking a substantial long-term business investment for the purpose of developing and marketing the clothing line.
     This funding will cover operating expenses and product development leading to the launch in 2011.

7.1 Start-up Funding

     COMPANY NAME start-up costs are detailed above, in the Start-up Table. The following table shows how these start-up costs will be
     funded by private or public investor capital.

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund                                                                                            $316,000
Start-up Assets to Fund                                                                                                $5,000
Total Funding Required                                                                                               $321,000

Assets
Non-cash Assets from Start-up                                                                                              $0
Cash Requirements from Start-up                                                                                        $5,000
Additional Cash Raised                                                                                                     $0
Cash Balance on Starting Date                                                                                          $5,000
Total Assets                                                                                                           $5,000



Liabilities and Capital

Liabilities
Current Borrowing                                                                                                          $0
Long-term Liabilities                                                                                                      $0
Accounts Payable (Outstanding Bills)                                                                                       $0
Other Current Liabilities (interest-free)                                                                                  $0
Total Liabilities                                                                                                          $0

Capital

Planned Investment
Investor 1                                                                                                            $98,000
Investor 2                                                                                                                 $0
Additional Investment Requirement                                                                                    $223,000
Total Planned Investment                                                                                             $321,000

Loss at Start-up (Start-up Expenses)                                                                               ($316,000)
Total Capital                                                                                                          $5,000



Total Capital and Liabilities                                                                                          $5,000

Total Funding                                                                                                        $321,000

                                                                                                                            Page 15
                                                     COMPANY NAME




7.2 Important Assumptions

    The table below contains important assumptions which the company will use to ensure its success; the primary assumption is that the
    economy will remain in its present upturn.

7.3 Break-even Analysis

    With a high gross margin and estimated fixed monthly expenses, the required monthly break-even sales volume is shown below.

Break-even Analysis

Monthly Revenue Break-even                                                                                        $48,857

Assumptions:
Average Percent Variable Cost                                                                                        65%
Estimated Monthly Fixed Cost                                                                                      $17,214




                                                                                                                            Page 16
                                                      COMPANY NAME



7.4 Projected Profit and Loss

     COMPANY NAME is in the early stage of development, thus initial projections have only been made on accounts that are believed to
     most drive the income statement.

Pro Forma Profit and Loss
                                                                     Year 1                 Year 2                  Year 3
Sales                                                            $1,391,724             $1,670,069              $2,004,083
Direct Cost of Sales                                               $901,368               $946,436                $993,758
Other                                                                    $0                     $0                      $0
Total Cost of Sales                                                $901,368               $946,436                $993,758

Gross Margin                                                      $490,356                $723,633              $1,010,325
Gross Margin %                                                     35.23%                  43.33%                  50.41%


Expenses
Payroll                                                                  $0                $96,000                $125,000
Sales and Marketing and Other Expenses                              $90,000                $94,500                 $99,225
Depreciation                                                         $2,004                 $1,999                  $1,999
Branding/Design                                                     $20,000                $21,000                 $22,050
Office Equipment                                                     $4,000                 $4,200                  $4,410
Inventory Storage                                                    $2,400                 $2,520                  $2,646
Postage and Delivery                                                $45,357                $47,625                 $50,006
Legal                                                                $2,000                 $2,100                  $2,205
Phone                                                                $1,800                 $1,890                  $1,985
Utilities                                                            $3,600                 $3,780                  $3,969
Website Maintenance                                                  $1,440                 $1,512                  $1,588
Adminstrative Expense                                                $3,970                 $4,169                  $4,377
Travel                                                              $30,000                $31,500                 $33,075

Total Operating Expenses                                          $206,571                $312,795                $352,535

Profit Before Interest and Taxes                                  $283,785                $410,838                $657,790
EBITDA                                                            $285,789                $412,837                $659,789
 Interest Expense                                                   ($916)                 ($2,749)                ($4,582)
 Taxes Incurred                                                    $85,410                $124,076                $198,711

Net Profit                                                        $199,291                $289,511                $463,660
Net Profit/Sales                                                   14.32%                  17.34%                  23.14%




                                                                                                                              Page 17
COMPANY NAME




               Page 18
                                                     COMPANY NAME



7.5 Projected Cash Flow

    The projected cash flow assumes the company receives the required investment in one installment--in June 2011.

Pro Forma Cash Flow
                                                                                Year 1                 Year 2            Year 3
Cash Received

Cash from Operations
Cash Sales                                                                 $1,391,724              $1,670,069        $2,004,083
Subtotal Cash from Operations                                              $1,391,724              $1,670,069        $2,004,083

Additional Cash Received
Sales Tax, VAT, HST/GST Received                                                   $0                      $0                $0
New Current Borrowing                                                              $0                      $0                $0
New Other Liabilities (interest-free)                                        $100,000                      $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                                                      $321,000                      $0                $0
Subtotal Cash Received                                                     $1,812,724              $1,670,069        $2,004,083

Expenditures                                                                    Year 1                 Year 2            Year 3

Expenditures from Operations
Cash Spending                                                                      $0                 $96,000          $125,000
Bill Payments                                                              $1,005,026              $1,362,547        $1,402,668
Subtotal Spent on Operations                                               $1,005,026              $1,458,547        $1,527,668

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                                                   $0                      $0                $0
Principal Repayment of Current Borrowing                                      $18,326                 $18,326           $18,326
Other Liabilities Principal Repayment                                              $0                      $0                $0
Long-term Liabilities Principal Repayment                                          $0                      $0                $0
Purchase Other Current Assets                                                $100,000                      $0                $0
Purchase Long-term Assets                                                    $100,000                      $0                $0
Dividends                                                                          $0                      $0                $0
Subtotal Cash Spent                                                        $1,223,352              $1,476,873        $1,545,994

Net Cash Flow                                                                $589,372                $193,196          $458,089
Cash Balance                                                                 $594,372                $787,569        $1,245,658




                                                                                                                     Page 19
              COMPANY NAME



Chart: Cash




                             Page 20
                                                     COMPANY NAME



7.6 Projected Balance Sheet

     COMPANY NAME projected balance sheets for the first three years of operation are provided below.

Table: Balance Sheet

Pro Forma Balance Sheet
                                                                        Year 1                 Year 2       Year 3
Assets

Current Assets
Cash                                                                 $594,372               $787,569    $1,245,658
Other Current Assets                                                 $100,000               $100,000      $100,000
Total Current Assets                                                 $694,372               $887,569    $1,345,658

Long-term Assets
Long-term Assets                                                     $100,000               $100,000      $100,000
Accumulated Depreciation                                               $2,004                 $4,003        $6,002
Total Long-term Assets                                                $97,996                $95,997       $93,998
Total Assets                                                         $792,368               $983,566    $1,439,656

Liabilities and Capital                                                 Year 1                 Year 2       Year 3

Current Liabilities
Accounts Payable                                                     $185,404               $105,416     $116,172
Current Borrowing                                                    ($18,326)              ($36,652)    ($54,978)
Other Current Liabilities                                            $100,000               $100,000     $100,000
Subtotal Current Liabilities                                         $267,078               $168,764     $161,194

Long-term Liabilities                                                      $0                     $0           $0
Total Liabilities                                                    $267,078               $168,764     $161,194

Paid-in Capital                                                       $642,000               $642,000     $642,000
Retained Earnings                                                   ($316,000)             ($116,709)     $172,802
Earnings                                                              $199,291               $289,511     $463,660
Total Capital                                                         $525,291               $814,802   $1,278,462
Total Liabilities and Capital                                         $792,368               $983,566   $1,439,656

Net Worth                                                            $525,291               $814,802    $1,278,462




                                                                                                               Page 21
                                                       COMPANY NAME




7.7 Business Ratios

     The following table contains important business ratios from the women's clothing industry, as determined by the Standard Industry
     Classification (SIC) Index, code 5137.

Table: Ratios

Ratio Analysis
                                                                   Year 1               Year 2              Year 3         Industry Profile
Sales Growth                                                         n.a.               5.90%               5.94%                 -13.62%

Percent of Total Assets
Other Current Assets                                              12.62%              11.88%               10.19%                 35.13%
Total Current Assets                                              87.63%              88.59%               90.42%                 83.28%
Long-term Assets                                                  12.37%              11.41%                9.58%                 16.72%
Total Assets                                                     100.00%             100.00%              100.00%                100.00%

Current Liabilities                                               33.71%               19.48%              15.31%                 42.36%
Long-term Liabilities                                              0.00%                0.00%               0.00%                 47.31%
Total Liabilities                                                 33.71%               19.48%              15.31%                 89.66%
Net Worth                                                         66.29%               80.52%              84.69%                 10.34%

Percent of Sales
Sales                                                            100.00%             100.00%              100.00%                100.00%
Gross Margin                                                      35.23%              35.79%               36.36%                 53.63%
Selling, General & Administrative Expenses                        52.08%              34.23%               24.85%                 19.29%
Advertising Expenses                                              12.00%              14.00%                6.00%                  0.73%
Profit Before Interest and Taxes                                  20.39%              14.56%               13.78%                  6.42%

Main Ratios
Current                                                              2.60                 4.55                5.91                   1.65
Quick                                                                2.60                 4.55                5.91                   1.05
Total Debt to Total Assets                                        33.71%               19.48%              15.31%                 89.66%
Pre-tax Return on Net Worth                                       54.20%               32.09%              26.43%                272.80%
Pre-tax Return on Assets                                          35.93%               25.84%              22.38%                 28.19%




                                                                                                                               Page 22
                            COMPANY NAME




Additional Ratios                 Year 1     Year 2     Year 3
Net Profit Margin                14.32%     10.33%      9.85%        n.a
Return on Equity                 37.94%     22.46%     18.50%        n.a

Activity Ratios
Accounts Payable Turnover           6.42      12.17      12.17       n.a
Payment Days                          27         43         29       n.a
Total Asset Turnover                1.76       1.75       1.59       n.a

Debt Ratios
Debt to Net Worth                   0.51       0.24       0.18       n.a
Current Liab. to Liab.              1.00       1.00       1.00       n.a

Liquidity Ratios
Net Working Capital             $427,295   $581,480   $737,278       n.a
Interest Coverage                   0.00       0.00       0.00       n.a

Additional Ratios
Assets to Sales                     0.57       0.57       0.63       n.a
Current Debt/Total Assets           34%        19%        15%        n.a
Acid Test                           2.60       4.55       5.91       n.a
Sales/Net Worth                     2.65       2.18       1.88       n.a
Dividend Payout                     0.00       0.00       0.00       n.a




                                                                 Page 23
                                                                          Appendix


Sales Forecast
                                     Month 1    Month 2   Month 3    Month 4   Month 5    Month 6    Month 7    Month 8    Month 9     Month      Month      Month
                                                                                                                                          10         11         12
Sales
Online Sales                    0%       $0         $0    $20,004    $21,004   $22,054    $23,157    $24,315    $25,531    $26,808    $28,148    $29,555    $31,033
Wholesales                      0%       $0         $0    $43,920    $52,704   $63,245    $75,894    $91,073   $109,288   $131,146   $157,375   $188,850   $226,620
Total Sales                              $0         $0    $63,924    $73,708   $85,299    $99,051   $115,388   $134,819   $157,954   $185,523   $218,405   $257,653

Direct Cost of Sales                 Month 1    Month 2   Month 3    Month 4   Month 5    Month 6    Month 7    Month 8    Month 9      Month     Month       Month
                                                                                                                                           10        11          12
Manufacturing                            $0    $150,228       $0    $150,228       $0    $150,228        $0    $150,228        $0    $150,228        $0    $150,228
Other                                    $0          $0       $0          $0       $0          $0        $0          $0        $0          $0        $0          $0
Subtotal Direct Cost of Sales            $0    $150,228       $0    $150,228       $0    $150,228        $0    $150,228        $0    $150,228        $0    $150,228




                                                                                                                                                           Page 1
                                                      Appendix


Personnel Plan
                      Month 1   Month 2   Month 3   Month 4   Month 5   Month 6   Month 7   Month 8   Month 9   Month   Month    Month
                                                                                                                   10      11       12
OWNER’S NAME     0%       $0        $0        $0        $0        $0        $0        $0        $0        $0       $0      $0       $0
Adminstration    0%       $0        $0        $0        $0        $0        $0        $0        $0        $0       $0      $0       $0
Total People               1         1         1         1         1         1         1         1         1        1       1        1

Total Payroll             $0        $0        $0        $0        $0        $0        $0        $0        $0       $0      $0       $0




                                                                                                                                Page 2
                                                                               Appendix


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                                $0           $0    $63,924     $73,708     $85,299    $99,051    $115,388   $134,819    $157,954   $185,523   $218,405   $257,653
Direct Cost of Sales                 $0     $150,228         $0    $150,228          $0   $150,228          $0   $150,228          $0   $150,228         $0   $150,228
Other                                $0           $0         $0          $0          $0         $0          $0         $0          $0         $0         $0         $0
Total Cost of Sales                  $0     $150,228         $0    $150,228          $0   $150,228          $0   $150,228          $0   $150,228         $0   $150,228

Gross Margin                          $0   ($150,228)    $63,924   ($76,520)    $85,299   ($51,177)   $115,388   ($15,409)   $157,954    $35,295   $218,405   $107,425
Gross Margin %                    0.00%        0.00%    100.00%    -103.82%    100.00%     -51.67%    100.00%     -11.43%    100.00%     19.02%    100.00%     41.69%


Expenses
Payroll                              $0           $0         $0          $0          $0         $0          $0         $0          $0         $0         $0         $0
Sales and Marketing              $7,500       $7,500     $7,500      $7,500      $7,500     $7,500      $7,500     $7,500      $7,500     $7,500     $7,500     $7,500
and Other Expenses
Depreciation                       $167         $167       $167        $167        $167       $167        $167       $167        $167       $167       $167       $167
Branding/Design                  $5,000           $0         $0      $5,000          $0         $0      $5,000         $0          $0     $5,000         $0         $0
Office Equipment                 $2,000           $0       $500          $0        $500         $0          $0       $500          $0         $0       $500         $0
Inventory Storage                  $200         $200       $200        $200        $200       $200        $200       $200        $200       $200       $200       $200
Postage and Delivery     15%     $2,850       $2,992     $3,142      $3,299      $3,464     $3,637      $3,819     $4,010      $4,210     $4,420     $4,641     $4,873
Legal                    15%     $2,000           $0         $0          $0          $0         $0          $0         $0          $0         $0         $0         $0
Phone                    15%       $150         $150       $150        $150        $150       $150        $150       $150        $150       $150       $150       $150
Utilities                15%       $300         $300       $300        $300        $300       $300        $300       $300        $300       $300       $300       $300
Website Maintenance      15%       $120         $120       $120        $120        $120       $120        $120       $120        $120       $120       $120       $120
Adminstrative Expense    15%       $250         $262       $275        $289        $303       $318        $334       $351        $369       $387       $406       $426
Travel                          $10,000           $0         $0          $0     $10,000         $0          $0         $0     $10,000         $0         $0         $0

Total Operating                 $30,537      $11,691    $12,354     $17,025     $22,704    $12,392     $17,590    $13,298     $23,016    $18,244    $13,984    $13,736
Expenses

Profit Before Interest         ($30,537)   ($161,919)   $51,570    ($93,545)    $62,595   ($63,569)    $97,798   ($28,707)   $134,938    $17,051   $204,421    $93,689
and Taxes
EBITDA                         ($30,370)   ($161,752)   $51,737    ($93,378)    $62,762   ($63,402)    $97,965   ($28,540)   $135,105    $17,218   $204,588    $93,856
 Interest Expense                     $0        ($14)     ($28)        ($42)      ($56)       ($69)      ($83)       ($97)     ($111)     ($125)     ($139)     ($153)
 Taxes Incurred                 ($9,161)    ($48,572)   $15,479    ($28,051)    $18,795   ($19,050)    $29,364    ($8,583)    $40,515     $5,153    $61,368    $28,153

Net Profit                     ($21,376)   ($113,334)   $36,118    ($65,452)    $43,855   ($44,450)    $68,517   ($20,027)    $94,534    $12,023   $143,192    $65,689
Net Profit/Sales                  0.00%        0.00%    56.50%      -88.80%     51.41%     -44.88%     59.38%     -14.85%     59.85%      6.48%     65.56%     25.50%




                                                                                                                                                              Page 3
                                                                                Appendix


Pro Forma Cash Flow
                                            Month 1   Month 2    Month 3   Month 4    Month 5   Month 6    Month 7    Month 8    Month 9     Month      Month      Month
                                                                                                                                                10         11         12
Cash Received

Cash from Operations
Cash Sales                                      $0        $0     $63,924   $73,708    $85,299   $99,051   $115,388   $134,819   $157,954   $185,523   $218,405   $257,653
Subtotal Cash from                              $0        $0     $63,924   $73,708    $85,299   $99,051   $115,388   $134,819   $157,954   $185,523   $218,405   $257,653
Operations

Additional Cash Received
Sales Tax, VAT, HST/GST            0.00%        $0        $0         $0        $0         $0        $0         $0         $0         $0         $0         $0         $0
Received
New Current Borrowing                            $0       $0         $0        $0         $0        $0         $0         $0         $0         $0         $0         $0
New Other Liabilities (interest-           $100,000       $0         $0        $0         $0        $0         $0         $0         $0         $0         $0         $0
free)
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                    $321,000       $0          $0        $0         $0        $0         $0         $0         $0         $0         $0         $0
Subtotal Cash Received                     $421,000       $0     $63,924   $73,708    $85,299   $99,051   $115,388   $134,819   $157,954   $185,523   $218,405   $257,653

Expenditures                                Month 1   Month 2    Month 3   Month 4    Month 5   Month 6    Month 7    Month 8    Month 9     Month      Month      Month
                                                                                                                                                10         11         12

Expenditures from Operations
Cash Spending                                   $0         $0         $0        $0         $0        $0         $0         $0         $0         $0         $0         $0
Bill Payments                                 $707    $24,274   $110,316   $31,350   $135,736   $44,679   $140,113    $50,303   $151,631    $66,922   $170,057    $78,938
Subtotal Spent on Operations                  $707    $24,274   $110,316   $31,350   $135,736   $44,679   $140,113    $50,303   $151,631    $66,922   $170,057    $78,938




                                                                                                                                                                 Page 4
                                                                           Appendix


Additional Cash Spent
Sales Tax, VAT, HST/GST                $0          $0          $0         $0          $0         $0          $0         $0         $0         $0         $0         $0
Paid Out
Principal Repayment of                 $0      $1,666      $1,666      $1,666     $1,666      $1,666     $1,666      $1,666     $1,666     $1,666     $1,666     $1,666
Current Borrowing
Other Liabilities Principal            $0          $0          $0         $0          $0         $0          $0         $0         $0         $0         $0         $0
Repayment
Long-term Liabilities Principal        $0          $0          $0         $0          $0         $0          $0         $0         $0         $0         $0         $0
Repayment
Purchase Other Current            $100,000         $0          $0         $0          $0         $0          $0         $0         $0         $0         $0         $0
Assets
Purchase Long-term Assets         $100,000         $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               $200,707    $25,940    $111,982     $33,016   $137,402     $46,345   $141,779     $51,969   $153,297    $68,588   $171,723    $80,604

Net Cash Flow                     $220,293   ($25,940)   ($48,058)    $40,692   ($52,103)    $52,706   ($26,391)    $82,850     $4,657   $116,935    $46,682   $177,049
Cash Balance                      $225,293   $199,353    $151,295    $191,987   $139,884    $192,590   $166,199    $249,049   $253,706   $370,641   $417,323   $594,372




                                                                                                                                                               Page 5
                                                                              Appendix


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                  $5,000      $225,293   $199,353   $151,295   $191,987   $139,884   $192,590   $166,199   $249,049   $253,706   $370,641   $417,323   $594,372
Other Current             $0      $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000
Assets
Total Current         $5,000      $325,293   $299,353   $251,295   $291,987   $239,884   $292,590   $266,199   $349,049   $353,706   $470,641   $517,323   $694,372
Assets

Long-term
Assets
Long-term                    $0   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000   $100,000
Assets
Accumulated                  $0      $167       $334       $501       $668       $835      $1,002     $1,169     $1,336     $1,503     $1,670     $1,837     $2,004
Depreciation
Total Long-term              $0    $99,833    $99,666    $99,499    $99,332    $99,165    $98,998    $98,831    $98,664    $98,497    $98,330    $98,163    $97,996
Assets
Total Assets          $5,000      $425,126   $399,019   $350,794   $391,319   $339,049   $391,588   $365,030   $447,713   $452,203   $568,971   $615,486   $792,368




                                                                                                                                                           Page 6
                                                                                       Appendix


Liabilities and                    Month 1      Month 2      Month 3      Month 4      Month 5      Month 6      Month 7      Month 8      Month 9     Month 10     Month 11     Month 12
Capital

Current
Liabilities
Accounts                   $0      $20,502     $109,394      $26,717     $134,360      $39,901     $138,556      $45,147     $149,523      $61,144     $167,555      $72,545     $185,404
Payable
Current                    $0           $0      ($1,666)     ($3,332)     ($4,998)     ($6,664)     ($8,330)     ($9,996)    ($11,662)    ($13,328)    ($14,994)    ($16,660)    ($18,326)
Borrowing
Other Current              $0     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000     $100,000
Liabilities
Subtotal Current           $0     $120,502     $207,728     $123,385     $229,362     $133,237     $230,226     $135,151     $237,861     $147,816     $252,561     $155,885     $267,078
Liabilities

Long-term                  $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Liabilities
Total Liabilities          $0     $120,502     $207,728     $123,385     $229,362     $133,237     $230,226     $135,151     $237,861     $147,816     $252,561     $155,885     $267,078

Paid-in Capital       $321,000     $642,000     $642,000     $642,000     $642,000     $642,000     $642,000     $642,000     $642,000     $642,000     $642,000     $642,000     $642,000
Retained            ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)   ($316,000)
Earnings
Earnings                   $0     ($21,376)   ($134,709)    ($98,591)   ($164,043)   ($120,188)   ($164,638)    ($96,121)   ($116,148)    ($21,613)     ($9,590)    $133,602     $199,291
Total Capital          $5,000     $304,624      $191,291    $227,409      $161,957     $205,812     $161,362    $229,879      $209,852    $304,387     $316,410     $459,602     $525,291
Total Liabilities      $5,000     $425,126      $399,019    $350,794      $391,319     $339,049     $391,588    $365,030      $447,713    $452,203     $568,971     $615,486     $792,368
and Capital

Net Worth              $5,000     $304,624     $191,291     $227,409     $161,957     $205,812     $161,362     $229,879     $209,852     $304,387     $316,410     $459,602     $525,291




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