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Business Plan for Furniture Retailer

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This Business Plan for a Furniture Retailer 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 Furniture Retailer 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.
20__



       COMPANY NAME
            Business Plan
               OWNER’S NAME

               ADDRESS

          CITY, STATE ZIP CODE

                  Tel.

                  Fax:

                 Email:
                                       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



1.0 Executive Summary .................................................................................................................... 1
       Chart: Highlights .......................................................................................................................... 2
   1.1 Objectives.................................................................................................................................... 2
   1.2 Mission .......................................................................................................................................... 2
   1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 3
   2.1 Company Ownership ............................................................................................................... 3
   2.2 Company History ...................................................................................................................... 3
       Table: Past Performance ........................................................................................................... 3
       Chart: Past Performance ........................................................................................................... 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 .............................................................................. 7
5.0 Strategy and Implementation Summary ............................................................................ 7
   5.1 SWOT Analysis .......................................................................................................................... 7
       5.1.1 Strengths ............................................................................................................................. 7
       5.1.2 Weaknesses ........................................................................................................................ 8
       5.1.3 Opportunities ..................................................................................................................... 8
       5.1.4 Threats ................................................................................................................................. 8
   5.2 Competitive Edge ..................................................................................................................... 8
   5.3 Marketing Strategy .................................................................................................................. 9
   5.4 Sales Strategy ........................................................................................................................... 9
       5.4.1 Sales Forecast.................................................................................................................... 9
           Table: Sales Forecast ............................................................................................................. 9
           Chart: Sales Monthly ............................................................................................................ 10
           Chart: Sales by Year ............................................................................................................. 10
6.0 Management Summary ............................................................................................................ 10
   6.1 Personnel Plan ......................................................................................................................... 11

                                                                                                                                                 Page 1
                                                              Table of Contents



       Table: Personnel ......................................................................................................................... 11
7.0 Financial Plan ............................................................................................................................... 11
   7.1 Important Assumptions ....................................................................................................... 11
   7.2 Break-even Analysis .............................................................................................................. 11
       Table: Break-even Analysis.................................................................................................... 11
       Chart: Break-even Analysis ................................................................................................... 12
   7.3 Projected Profit and Loss ..................................................................................................... 12
       Table: Profit and Loss ............................................................................................................... 12
       Chart: Profit Monthly ................................................................................................................ 13
       Chart: Profit Yearly .................................................................................................................... 14
       Chart: Gross Margin Monthly................................................................................................. 14
       Chart: Gross Margin Yearly .................................................................................................... 15
   7.4 Projected Cash Flow .............................................................................................................. 15
       Table: Cash Flow ........................................................................................................................ 15
       Chart: Cash .................................................................................................................................. 16
   7.5 Projected Balance Sheet ...................................................................................................... 17
       Table: Balance Sheet ................................................................................................................ 17
   7.6 Business Ratios ....................................................................................................................... 18
       Table: Ratios ................................................................................................................................ 18
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Cash Flow .................................................................................................................................. 5
Table: Balance Sheet .......................................................................................................................... 6
Table: Balance Sheet .......................................................................................................................... 7




                                                                                                                                              Page 2
                                                                                           June 24,
                                                                    COMPANY NAME
                                                                                              2010


1.0 Executive Summary

   Introduction:

   COMPANY NAME is based out of Mid-City of Baton Rouge, Louisiana. The furniture store was
   created in 2006 by the owner and one of the current managing members OWNER’S NAME.
   At Mid-City Furniture they understand your goal of having a warm and inviting home – not just
   a house. COMPANY NAME offers the highest quality furniture, a vast array of styles, and
   excellent value so that your goal can easily become a reality. The COMPANY NAME concept
   makes furnishing your home easier by offering an enjoyable one-stop shopping experience for
   all your home furniture and bedding needs. You'll leave COMPANY NAME with the confidence
   that you've purchased the very best merchandise from the industry's leading manufacturers, at
   the best price possible.

   The Market:

   The National Retail Federation released its 2010 economic forecast today, projecting retail
   industry sales (which exclude automobiles, gas stations, and restaurants) will increase 2.5
   percent from last year. According to its bi-monthly Retail Sales Outlook, influential economic
   indicators such as the housing market and employment are beginning to show positive signs,
   which will bolster consumer confidence throughout the year. Total industry retail sales for 2009
   declined 2.5 percent. NRF represents an industry with more than 1.6 million U.S. retail
   establishments, more than 24 million employees about one in five American workers and 2009
   sales of $4.1 trillion.

   Financial Projections:

   The sales forecast for COMPANY NAME is based of the ability of new grant money. These figures
   are based on the increase in marketing and products that COMPANY NAME will gain with the
   additional grant investment of $523,000.

   Sales Forecast

              2011                                       2012                                2013

                   $701,450                             $745,000                        $800,000


   Company Goals:

         Reach $1 million in sales by 2014
         Hire 5 additional employees by end of 2011
         Decrease cost of goods sold by 15% by 2014
         Gain 30% additional market share in the Mid-City community.




                   OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                        1
                                                                                           June 24,
                                                                   COMPANY NAME
                                                                                              2010


   Chart: Highlights




1.1 Objectives
   The objectives of COMPANY NAME are:
   1. To create a shopping environment that caters to the apparel needs of the the local
      community.
   2. To concentrate efforts on several selected market sectors that have been researched and
      found promising.
   3. To earn 80% market share.
   4. To increase our sales revenue by 50% by 2013.
1.2 Mission
   Our mission is to provide affordable, high quality furniture. We are committed to our excellent
   customer service, integrity, and moral obligation to our community.
1.3 Keys to Success
   The keys to success in COMPANY NAME business are:
   1. Offering items of a high quality-value relationship which are not available everywhere. This
      is essential for maintaining the niche market sectors mentioned in the mission statement.
   2. Reliable and timely deliveries. COMPANY NAME must make good on its delivery promises.
   3. A reliable administration that is ready to serve customers, prepare accurate billing, follow-
      up on orders and other documentation, and maintain a close watch on expenses and
      collection of accounts receivable.




                  OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                         2
                                                                                           June 24,
                                                                   COMPANY NAME
                                                                                              2010


2.0 Company Summary
   Our Furniture Store has one of a kind living room, bedroom, dining room, and patio furniture.
   COMPANY NAME is committed to client-focused designs by defining luxury in home furnishings
   through stellar collections, award-winning designers and revolutionary retail concepts; creating
   a unique lifestyle shopping experience. COMPANY NAME was created in 2006 by the visionary
   OWNER’S NAME He developed the store with the idea that high quality furniture could be
   affordable for the average person. With this business model in mind OWNER’S NAME created a
   store that has seen immediate success and is on track to generate sales revenue over 1 million
   dollars by 2013.
2.1 Company Ownership
   OWNER’S NAME is the sole owner of this business since the inception in 2006.
2.2 Company History
   In 2006 OWNER’S NAME created COMPANY NAME to complete in a under served market.
   OWNER’S NAME saw a market of those who sought to purchase quality furniture, but could not
   find good furniture for an affordable price. With this business plan OWNER’S NAME created
   COMPANY NAME.

Table: Past Performance



Past Performance
                                                  FY 2008            FY 2009       FY 2010
Sales                                            $566,207           $622,827      $685,110
Gross Margin                                     $297,944           $311,413      $342,555
Gross Margin %                                    52.62%             50.00%        50.00%
Operating Expenses                               $255,713           $263,384      $271,285
Collection Period (days)                                0                  0             0
Inventory Turnover                                   1.13               1.26          1.23

Balance Sheet
                                                   FY 2008           FY 2009       FY 2010

Current Assets
Cash                                              $11,767            $55,353       $94,917
Accounts Receivable                                    $0                 $0            $0
Inventory                                        $238,000           $255,000      $300,000
Other Current Assets                              $35,686            $35,686       $30,000
Total Current Assets                             $285,453           $346,039      $424,917

Long-term Assets
Long-term Assets                                         $0                $0            $0
Accumulated Depreciation                                 $0                $0            $0
Total Long-term Assets                                   $0                $0            $0

Total Assets                                     $285,453           $346,039      $424,917




                  OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                         3
                                                                                      June 24,
                                                                  COMPANY NAME
                                                                                         2010



Current Liabilities
Accounts Payable                                        $0                $0        $0
Current Borrowing                                       $0                $0        $0
Other Current Liabilities (interest                     $0                $0        $0
free)
Total Current Liabilities                               $0                $0        $0

Long-term Liabilities                           $130,100           $126,122    $119,125
Total Liabilities                               $130,100           $126,122    $119,125

Paid-in Capital                                       $0                 $0          $0
Retained Earnings                                $55,353            $94,917    $105,792
Earnings                                        $100,000           $125,000    $200,000
Total Capital                                   $155,353           $219,917    $305,792

Total Capital and Liabilities                   $285,453           $346,039    $424,917

Other Inputs
Payment Days                                          60                 60          60
Sales on Credit                                 $498,125           $589,656    $642,154
Receivables Turnover                                0.00               0.00        0.00




   Chart: Past Performance




                 OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                     4
                                                                                            June 24,
                                                                   COMPANY NAME
                                                                                               2010


3.0 Products
   The product line is rather extensive, amounting to over 200 items including, chairs, stools,
   dressers, book shelves, mirrors, screens, side tables, dining tables, lounges, etc. Because of the
   large quantity of items and styles, it is not feasible to stock all these items, however, any of
   these items can be purchased from COMPANY NAME by special order.
4.0 Market Analysis Summary
   Our target market are people who want to have very fine furniture with the latest in
   technology, combined with an old fashioned sense of fine woods and fine woodworking. This
   person can be in the corporate towers, small or medium business, or in a home office. The
   common bond is the appreciation of quality, and the lack of price constraints.
4.1 Market Segmentation
   According to U.S. government statistics there are over 17,000 outlets selling furniture nation-
   wide. Briefly stated, these outlets fall into the following categories:
   1. High-end. High-end furniture outlets carry furniture produced by the top manufacturers.
      These companies have a network of dealers throughout the country who are chosen based
      on the high image of the outlet. Some outlets represent the manufacturer exclusively. It is
      not unusual to find a dining chair in these outlets priced to sell at $1,200.
   2. Middle Range. A step down from the first category are furniture outlets, such as Veralum's
      Furniture, that sell furniture which is targeted to up-market buyers, but not the top rung. A
      dining chair from one of these outlets might cost between $600-$800.
   3. Mass Merchandisers must carry lines with broad appeal, and high volume. This furniture
      is still sourced from large factories mostly in the South, but quality is lower and so are the
      prices. A dining chair from one of these outlets would sell in the $300 range.
   4. Low-end. Chairs sold from these outlets would have virtually no hand work. The chairs are
      likely to need re-gluing a few years later, and much of the furniture requires some assembly
      on the part of the purchaser. A chair from these outlets would sell for under $200.
   5. Unfinished Furniture Outlets. These are varied: many are manufacturers who only sell
      their own products, others take on items from other manufacturers to round out the line,
      and others only sell unfinished furniture but offer the option to have the finishing done by
      them. Quality can vary. Some are very low end, others like to have a better price variety.
   6. Specialty Retailers. These include certain specialty retailers who combine antiques and
      reproductions to obtain an unusual offering which cannot be price-shopped. These retail
      outlets are small and must have healthy mark-ups to survive. They would avoid items that
      could be readily found at larger retailers who work on thinner margins. This market sector
      represents Poppi's biggest volume.
   7. Designer Market. Designers have difficulty making money on furniture. Taking clients to
      pick out chairs from retailers at the design center or elsewhere does not result in big
      commissions for the designer. What some designers do is to buy unfinished chairs (often via
      the major New York import houses) and then have a refinisher and an upholsterer complete
      the work. In this manner the designer can insure a larger profit for himself and the
      customer gets a quality chair which cannot be price-shopped easily.
   The last three mentioned market sectors - Unfinished Furniture Outlets, Specialty Retailers, and
   Designers - are the ones most attractive to Poppi's products. Each of these market segments
   are expected to grow at a steady rate of 2% per year. The table below summarizes the total
   market potential for the years 2001-2010.


                  OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                           5
                                                                                              June 24,
                                                                    COMPANY NAME
                                                                                                 2010


Table: Market Analysis



Market
Analysis
                                  2010          2011         2012          2013       2014
Potential         Growth                                                                        CAGR
Customers
Corporate                5%   2,356,984   2,474,833     2,598,575    2,728,504    2,864,929    5.00%
offices
People ages              7%    154,897      165,740       177,342      189,756     203,039     7.00%
0-8
People ages              3%    895,680      922,550       950,227      978,734    1,008,096    3.00%
9-14
People ages              9%   2,458,972   2,680,279     2,921,504    3,184,439    3,471,039    9.00%
14+
Total              6.50%      5,866,533   6,243,402     6,647,648    7,081,433    7,547,103    6.50%




   Chart: Market Analysis (Pie)




                  OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                            6
                                                                                                June 24,
                                                                    COMPANY NAME
                                                                                                   2010


4.2 Target Market Segment Strategy
   Due to the limited resources available to COMPANY NAME, the company will avoid the high-end
   furniture segments that it cannot profitably reach. By specifically focusing its marketing efforts
   on the underserved segments of Designer and Unfinished Furniture markets, COMPANY NAME
   will diversify its customer base. This will help the company to reduce its current sole reliance on
   the Specialty Retail segment. Established connections with the manufacturers of high quality
   furniture will help the company to source rarely available products, which are in strong demand
   by the sought customer segments.
4.3 Industry Analysis
   including the furniture industry, the apparel industry, and convenience stores experiences more
   fluctuations than perhaps any marketplace. Seasonal effects and the changing economy are
   market forces that tend to drive the success of the retail industry. The Furniture Stores
   Industry report, contains timely and accurate industry statistics, forecasts and demographics.
   The report features 2010 current and 2011 forecast estimates on the size of the industry (sales,
   establishments, employment) nationally and for all 50 U.S. States and over 900 metro areas.
   New to the report this year are: financial ratios, number of firms and payroll estimates. The
   report also includes industry definition, 5-year historical trends on industry sales,
   establishments and employment, a breakdown of establishments, sales and employment by
   employee size of establishment (9 categories), and estimates on up to 10 sub-industries,
   including sofas, tables, beds, mattresses and cabinets.
4.3.1 Competition and Buying Patterns
   Brand names are of little, if any, importance. The key to the buying decision on the part of the
   consumer is the salesman and the furniture being in front of the buyer. As has been pointed out
   in the Competitive Analysis section there are other chairs with similar appearance as those
   supplied by COMPANY NAME, that are less expensive. It is essential that the salesman point out
   the salient features and selling points favoring COMPANY NAME (weight--i.e. stability, strength,
   etc.).
5.0 Strategy and Implementation Summary
   COMPANY NAME will pursue a differentiation strategy by offering a specific line of solid, hand-
   carved furniture to the selected customer segments in the limited geographic areas. Such sales
   of both finished and unfinished high quality and high-margin furniture that appeals to the
   Specialty Retail, Designer, and Unfinished Furniture customer segments will be mostly achieved
   through the direct sales channel.
5.1 SWOT Analysis
   The following SWOT analysis captures the key strengths and weaknesses within the company,
   and describes the opportunities and threats facing Interior Views.
5.1.1 Strengths

      Strong relationships with suppliers that offer credit arrangements, flexibility, and response
       to special product requirements.
      Excellent and stable staff, offering personalized customer service.
      Great retail space that offers flexibility with a positive and attractive, inviting atmosphere.
      Good referral relationships with complementary vendors, local realtors, and some designers.
      In-store complementary products through "The Window Seat" and "Antique Bureau" add
       interest, stability and revenue.
      High customer loyalty among repeat and high-dollar purchase customers.
                   OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                                7
                                                                                             June 24,
                                                                     COMPANY NAME
                                                                                                2010


5.1.2 Weaknesses
      Access to additional operating capital.
      Cash flow continues to be unpredictable.
      Owners are still climbing the "retail experience curve."
      Location is not in a heavily traveled, traditional retail area.
      Challenges of the seasonality of the business.
5.1.3 Opportunities
      Growing market with a significant percentage of our target market still not knowing we
       exist.
      Strategic alliances offering sources for referrals and joint marketing activities to extend our
       reach.
      Promising activity from high levels of new home construction.
      Changes in design trends can initiate home updating, and therefore, generate sales.
      Increasing sales opportunities beyond our "100-mile" target area including several smaller
       communities that have produced a faithful following of customers.
      Internet potential for selling products to other markets.
5.1.4 Threats
      The downturn in the ecomony has impacted store sales--stock market predictors correlate
       with store sales.
      Expansion of national discount stores into the local market: including Target, Wal-Mart and
       Home Depot into our decorator fabric space.
      Competition from a national store; or a store with greater financing or product resources
       could enter the market.
      Catalog resources, including Calico Corners and Pottery Barn, with aggressively priced
       trend-setting fabric products including drapery, bedding, and slipcovers.
      Continued price pressure due to competition or the weakening market reducing contribution
       margins.
      Dramatic changes in design, including fabric colors and styles, creates obsolete or less
       profitable inventory.
5.2 Competitive Edge
   Our location is a very important competitive edge. It will be difficult for our competitors to
   match our location. The other competitive edge in development is our reputation and
   involvement with the community. To further entrench in its niche market, COMPANY NAME will
   utilize its established connections with the manufacturers of high-quality furniture, which
   provide the company an opportunity to offer unique products in the selected U.S. markets.
   Further, the company will utilize unique industry experience and superb selling skills, to achieve
   the desired sales penetration.




                   OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                           8
                                                                                            June 24,
                                                                      COMPANY NAME
                                                                                               2010


5.3 Marketing Strategy
   Our marketing strategy will focus heavily on sales promotion, niche positioning in the market
   and customer service with loyalty and retention in sales.
      The marketing budget will not exceed 5% of our gross annual sales.
      Our promotions will always stay in tune with our company objectives and mission
       statement.
5.4 Sales Strategy
   The three marketing efforts that are currently being used are Wrap Mail Out Sales Brochures,
   Radio Broadcasting, Television Video/Audio commercials. Management will be conducting these
   efforts and the expected results to ensure increase customer flow, higher sales volume, and a
   more profitable return. The target market include modest income household who can spend
   $1200 to $3000 for quality furniture or afford monthly payments on credit terms.
5.4.1 Sales Forecast
   The following table and chart show the forecasted sales for COMPANY NAME.

Table: Sales Forecast



Sales Forecast
                                                          FY 2011              FY 2012    FY 2013
Sales
Bedroom                                                 $191,466              $200,000   $225,000
Living room                                             $240,707              $255,000   $265,000
Kitchen                                                 $147,505              $155,000   $165,000
Bathroom                                                 $76,321               $85,000    $90,000
Other                                                    $45,451               $50,000    $55,000
Total Sales                                             $701,450              $745,000   $800,000

Direct Cost of Sales                                     FY 2011               FY 2012    FY 2013
Whole sale cost                                         $418,857              $435,000   $455,000
Other                                                    $48,446               $56,000    $65,000
Subtotal Direct Cost of Sales                           $467,303              $491,000   $520,000




                     OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                         9
                                                                                June 24,
                                                                 COMPANY NAME
                                                                                   2010


  Chart: Sales Monthly




  Chart: Sales by Year




6.0 Management Summary
  The management of COMPANY NAME is made up of the owner and his wife as the other
  managing member.
                OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]               10
                                                                                            June 24,
                                                                      COMPANY NAME
                                                                                               2010


6.1 Personnel Plan
   The cornerstone of the personnel plan is to maximize productivity and minimize the labor
   burden on the company's operating expenses. As we grow, we expect to see steady increases
   in our personnel to match the increases in sales.

Table: Personnel



Personnel Plan
                                                               FY 2011        FY 2012      FY 2013
Payroll                                                        $42,000        $50,000      $65,000
Legal                                                           $2,700         $3,500       $4,500
Total People                                                         1              5            8

Total Payroll                                                  $44,700        $53,500      $69,500


7.0 Financial Plan
      Salaries and rent are the two major expenses, while depreciation is another significant cost
       that will increase as the company develops.
      We want to finance growth mainly through cash flow. We recognize that this means we will
       have to grow slowly.
7.1 Important Assumptions
   We accept cash and checks, Visa, MasterCard, Discover and American Express. All sales paid
   via credit cards will be deposited in our business checking account within 48 hours.
7.2 Break-even Analysis
   The Break-even Analysis in the table and chart following illustrate the number of units and
   retail $ sales that COMPANY NAME must make to break-even each month.

Table: Break-even Analysis



Break-even Analysis


Monthly Revenue Break-even                                                              $43,118

Assumptions:
Average Percent Variable Cost                                                              67%
Estimated Monthly Fixed Cost                                                            $14,393




                     OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                       11
                                                                                        June 24,
                                                                   COMPANY NAME
                                                                                           2010


   Chart: Break-even Analysis




7.3 Projected Profit and Loss
   There are many factors to include when determining a projected profit and loss statement,
   these are included in the following table.

Table: Profit and Loss



Pro Forma Profit and Loss
                                                 FY 2011           FY 2012    FY 2013
Sales                                           $701,450          $745,000   $800,000
Direct Cost of Sales                            $467,303          $491,000   $520,000
Other Costs of Sales                                  $0                $0         $0
Total Cost of Sales                             $467,303          $491,000   $520,000

Gross Margin                                    $234,147          $254,000   $280,000
Gross Margin %                                   33.38%            34.09%     35.00%




                  OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                     12
                                                                                          June 24,
                                                                    COMPANY NAME
                                                                                             2010



Expenses
Payroll                                           $44,700            $53,500    $69,500
Marketing/Promotion                               $28,400            $35,000    $45,000
Depreciation                                      $14,257            $20,000    $20,000
Rent                                              $37,200            $37,200    $37,200
Utilities                                          $5,411             $5,500     $5,500
Payroll Taxes                                      $6,708             $8,025    $10,425
Compensation of officers                          $36,040            $40,000    $50,000

Total Operating Expenses                         $172,716          $199,225    $237,625

Profit Before Interest and Taxes                  $61,431            $54,775    $42,375
EBITDA                                            $75,688            $74,775    $62,375
 Interest Expense                                  $5,956             $5,956     $5,956
 Taxes Incurred                                    $8,321             $7,323     $5,463

Net Profit                                        $47,154            $41,496    $30,956
Net Profit/Sales                                   6.72%              5.57%      3.87%




   Chart: Profit Monthly




                   OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                      13
                                                                               June 24,
                                                                COMPANY NAME
                                                                                  2010


Chart: Profit Yearly




Chart: Gross Margin Monthly




               OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]               14
                                                                                              June 24,
                                                                    COMPANY NAME
                                                                                                 2010


   Chart: Gross Margin Yearly




7.4 Projected Cash Flow
   Cash flow projections are critical to our success. The following table shows cash flow for the
   first three years, and the chart illustrates monthly cash flow in the first year. Monthly cash flow
   projections are included in the appendix.

Table: Cash Flow



Pro Forma Cash Flow
                                                           FY 2011           FY 2012          FY 2013
Cash Received

Cash from Operations
Cash Sales                                                 $35,073           $37,250          $40,000
Cash from Receivables                                     $624,886          $705,174         $756,747
Subtotal Cash from Operations                             $659,958          $742,424         $796,747

Additional Cash Received
Sales Tax, VAT, HST/GST Received                                $0                $0               $0
New Current Borrowing                                           $0                $0               $0
New Other Liabilities (interest-free)                           $0           $65,000               $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                                   $523,000                $0               $0
Subtotal Cash Received                                  $1,182,958          $807,424         $796,747




                   OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                           15
                                                                                      June 24,
                                                                  COMPANY NAME
                                                                                         2010



Expenditures                                             FY 2011           FY 2012    FY 2013

Expenditures from Operations
Cash Spending                                            $44,700           $53,500    $69,500
Bill Payments                                           $203,789          $752,526   $693,988
Subtotal Spent on Operations                            $248,489          $806,026   $763,488

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                              $0                $0         $0
Principal Repayment of Current Borrowing                      $0                $0         $0
Other Liabilities Principal Repayment                         $0                $0         $0
Long-term Liabilities Principal Repayment                     $0                $0         $0
Purchase Other Current Assets                           $150,000                $0         $0
Purchase Long-term Assets                               $200,000                $0         $0
Dividends                                                     $0                $0         $0
Subtotal Cash Spent                                     $598,489          $806,026   $763,488

Net Cash Flow                                           $584,469            $1,398    $33,259
Cash Balance                                            $679,386          $680,784   $714,043




   Chart: Cash




                 OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                    16
                                                                                           June 24,
                                                                   COMPANY NAME
                                                                                              2010


7.5 Projected Balance Sheet
   The table shows the annual balance sheet results, with a healthy projected increase in net
   worth. Detailed monthly projections are in the appendix.

Table: Balance Sheet



Pro Forma Balance Sheet
                                                    FY 2011            FY 2012       FY 2013
Assets

Current Assets
Cash                                              $679,386           $680,784      $714,043
Accounts Receivable                                $41,492            $44,068       $47,321
Inventory                                          $62,350           $148,735      $158,772
Other Current Assets                              $180,000           $180,000      $180,000
Total Current Assets                              $963,228         $1,053,586    $1,100,135

Long-term Assets
Long-term Assets                                  $200,000           $200,000      $200,000
Accumulated Depreciation                           $14,257            $34,257       $54,257
Total Long-term Assets                            $185,743           $165,743      $145,743
Total Assets                                    $1,148,971         $1,219,329    $1,245,878

Liabilities and Capital                             FY 2011            FY 2012       FY 2013

Current Liabilities
Accounts Payable                                  $153,900           $117,763      $113,356
Current Borrowing                                       $0                 $0            $0
Other Current Liabilities                               $0            $65,000       $65,000
Subtotal Current Liabilities                      $153,900           $182,763      $178,356

Long-term Liabilities                             $119,125           $119,125      $119,125
Total Liabilities                                 $273,025           $301,888      $297,481

Paid-in Capital                                   $523,000           $523,000      $523,000
Retained Earnings                                 $305,792           $352,946      $394,442
Earnings                                           $47,154            $41,496       $30,956
Total Capital                                     $875,946           $917,442      $948,398
Total Liabilities and Capital                   $1,148,971         $1,219,329    $1,245,878

Net Worth                                         $875,946           $917,442      $948,398




                  OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                        17
                                                                                            June 24,
                                                                   COMPANY NAME
                                                                                               2010


7.6 Business Ratios
   Business ratios for the years of this plan are shown below. Industry profile ratios based on the
   Standard Industrial Classification.

Table: Ratios



Ratio Analysis
                                             FY 2011          FY 2012      FY 2013          Industry
                                                                                              Profile
Sales Growth                                   2.39%           6.21%         7.38%            4.08%

Percent of Total Assets
Accounts Receivable                           3.61%           3.61%          3.80%          29.92%
Inventory                                     5.43%          12.20%         12.74%          27.89%
Other Current Assets                         15.67%          14.76%         14.45%          20.02%
Total Current Assets                         83.83%          86.41%         88.30%          77.83%
Long-term Assets                             16.17%          13.59%         11.70%          22.17%
Total Assets                                100.00%         100.00%        100.00%         100.00%

Current Liabilities                           13.39%          14.99%       14.32%           45.81%
Long-term Liabilities                         10.37%           9.77%        9.56%           41.38%
Total Liabilities                             23.76%          24.76%       23.88%           87.19%
Net Worth                                     76.24%          75.24%       76.12%           12.81%

Percent of Sales
Sales                                       100.00%         100.00%        100.00%         100.00%
Gross Margin                                 33.38%          34.09%         35.00%          34.47%
Selling, General & Administrative            26.66%          28.52%         31.13%          13.21%
Expenses
Advertising Expenses                           4.05%           4.70%         5.63%            1.27%
Profit Before Interest and Taxes               8.76%           7.35%         5.30%            5.08%

Main Ratios
Current                                          6.26            5.76         6.17             1.55
Quick                                            5.85            4.95         5.28             0.94
Total Debt to Total Assets                    23.76%          24.76%       23.88%           87.19%
Pre-tax Return on Net Worth                    6.33%           5.32%        3.84%          115.01%
Pre-tax Return on Assets                       4.83%           4.00%        2.92%           14.73%




                  OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                          18
                                                                                     June 24,
                                                                  COMPANY NAME
                                                                                        2010



Additional Ratios                           FY 2011          FY 2012       FY 2013
Net Profit Margin                            6.72%            5.57%         3.87%        n.a
Return on Equity                             5.38%            4.52%         3.26%        n.a

Activity Ratios
Accounts Receivable Turnover                   16.06           16.06         16.06       n.a
Collection Days                                   14              22            22       n.a
Inventory Turnover                              3.47            4.65          3.38       n.a
Accounts Payable Turnover                       2.32            6.08          6.08       n.a
Payment Days                                      49              69            61       n.a
Total Asset Turnover                            0.61            0.61          0.64       n.a

Debt Ratios
Debt to Net Worth                               0.31            0.33          0.31       n.a
Current Liab. to Liab.                          0.56            0.61          0.60       n.a

Liquidity Ratios
Net Working Capital                        $809,328        $870,824       $921,780       n.a
Interest Coverage                             10.31            9.20           7.11       n.a

Additional Ratios
Assets to Sales                                 1.64            1.64          1.56       n.a
Current Debt/Total Assets                       13%             15%           14%        n.a
Acid Test                                       5.58            4.71          5.01       n.a
Sales/Net Worth                                 0.80            0.81          0.84       n.a
Dividend Payout                                 0.00            0.00          0.00       n.a




                 OWNER’S NAME Email: [INSERT EMAIL] Ph: [INSERT NUMBER]                   19
                                                             Appendix

Table: Sales Forecast


Sales Forecast
                             Oct       Nov       Dec       Jan       Feb       Mar       Apr       May       Jun         Jul      Aug       Sep
Sales
Bedroom                    $8,954    $9,849   $10,834   $11,917   $13,109   $14,420   $15,862   $17,448   $19,193   $21,112    $23,223   $25,545
Living room               $11,256   $12,382   $13,620   $14,982   $16,480   $18,128   $19,941   $21,935   $24,129   $26,542    $29,196   $32,116
Kitchen                    $6,897    $7,587    $8,346    $9,181   $10,099   $11,109   $12,220   $13,442   $14,786   $16,265    $17,892   $19,681
Bathroom                   $3,568    $3,925    $4,318    $4,750    $5,225    $5,748    $6,323    $6,955    $7,651    $8,416     $9,258   $10,184
Other                      $2,125    $2,338    $2,572    $2,829    $3,112    $3,423    $3,765    $4,142    $4,556    $5,012     $5,513    $6,064
Total Sales               $32,800   $36,081   $39,690   $43,659   $48,025   $52,828   $58,111   $63,922   $70,315   $77,347    $85,082   $93,590

Direct Cost of Sales          Oct       Nov       Dec       Jan       Feb       Mar       Apr      May        Jun        Jul       Aug       Sep
Whole sale cost           $19,586   $21,545   $23,700   $26,070   $28,677   $31,545   $34,700   $38,170   $41,987   $46,186    $50,805   $55,886
Other                      $2,265    $2,492    $2,741    $3,015    $3,317    $3,649    $4,014    $4,415    $4,856    $5,342     $5,876    $6,464
Subtotal Direct Cost of   $21,851   $24,037   $26,441   $29,085   $31,994   $35,194   $38,714   $42,585   $46,843   $51,528    $56,681   $62,350
Sales




                                                                                                                                         Page 1
                                                Appendix

Table: Personnel


Personnel Plan
                      Oct      Nov      Dec      Jan      Feb      Mar      Apr     May       Jun       Jul      Aug      Sep
Payroll            $3,500   $3,500   $3,500   $3,500   $3,500   $3,500   $3,500   $3,500   $3,500   $3,500    $3,500   $3,500
Legal               $225     $225     $225     $225     $225     $225     $225     $225     $225     $225      $225     $225
Total People            1        1        1        1        1        1        1        1        1        1         1        1

Total Payroll      $3,725   $3,725   $3,725   $3,725   $3,725   $3,725   $3,725   $3,725   $3,725   $3,725    $3,725   $3,725




                                                                                                                       Page 2
                                                                         Appendix

Table: Profit and Loss


Pro Forma Profit and
Loss
                                   Oct        Nov        Dec       Jan         Feb       Mar       Apr      May        Jun        Jul       Aug       Sep
Sales                          $32,800    $36,081    $39,690   $43,659     $48,025   $52,828   $58,111   $63,922   $70,315   $77,347    $85,082   $93,590
Direct Cost of Sales           $21,851    $24,037    $26,441   $29,085     $31,994   $35,194   $38,714   $42,585   $46,843   $51,528    $56,681   $62,350
Other Costs of Sales                $0         $0         $0        $0          $0        $0        $0        $0        $0        $0         $0        $0
Total Cost of Sales            $21,851    $24,037    $26,441   $29,085     $31,994   $35,194   $38,714   $42,585   $46,843   $51,528    $56,681   $62,350

Gross Margin                   $10,949    $12,044    $13,249   $14,574     $16,031   $17,634   $19,397   $21,337   $23,472   $25,819    $28,401   $31,240
Gross Margin %                 33.38%     33.38%     33.38%    33.38%      33.38%    33.38%    33.38%    33.38%    33.38%    33.38%     33.38%    33.38%


Expenses
Payroll                         $3,725     $3,725     $3,725    $3,725      $3,725    $3,725    $3,725    $3,725    $3,725    $3,725     $3,725    $3,725
Marketing/Promotion             $2,100     $2,100     $2,100    $2,100      $2,500    $2,500    $2,500    $2,500    $2,500    $2,500     $2,500    $2,500
Depreciation                     $673       $790      $1,408     $869       $1,174    $1,277    $1,406    $1,500    $1,397    $1,234     $1,183    $1,346
Rent                            $3,100     $3,100     $3,100    $3,100      $3,100    $3,100    $3,100    $3,100    $3,100    $3,100     $3,100    $3,100
Utilities                15%     $339       $356       $374      $393        $413      $434      $456      $479      $503      $528       $554      $582
Payroll Taxes            15%     $559       $559       $559      $559        $559      $559      $559      $559      $559      $559       $559      $559
Compensation of          15%    $1,689     $2,238     $2,435    $2,391      $2,655    $2,764    $3,351    $3,335    $3,379    $3,795     $3,730    $4,278
officers

Total Operating                $12,185    $12,868    $13,701   $13,137     $14,126   $14,359   $15,097   $15,198   $15,163   $15,441    $15,351   $16,090
Expenses

Profit Before Interest         ($1,236)    ($824)     ($452)    $1,437      $1,905    $3,275    $4,300    $6,139    $8,309   $10,378    $13,050   $15,150
and Taxes
EBITDA                          ($563)      ($34)       $956    $2,306      $3,079    $4,552    $5,706    $7,639    $9,706   $11,612    $14,233   $16,496
 Interest Expense                 $496       $496       $496     $496        $496      $496      $496      $496      $496      $496       $496      $496
 Taxes Incurred                 ($260)     ($198)     ($142)     $141        $211      $417      $571      $846     $1,172    $1,482     $1,883    $2,198

Net Profit                     ($1,472)   ($1,122)    ($806)     $800       $1,197    $2,362    $3,233    $4,796    $6,641    $8,399    $10,671   $12,456
Net Profit/Sales                -4.49%     -3.11%    -2.03%     1.83%       2.49%     4.47%     5.56%     7.50%     9.44%    10.86%     12.54%    13.31%




                                                                                                                                                  Page 3
                                                                          Appendix

Table: Cash Flow


Pro Forma Cash Flow
                                      Oct      Nov       Dec       Jan         Feb       Mar       Apr       May       Jun        Jul      Aug       Sep
Cash Received

Cash from Operations
Cash Sales                         $1,640    $1,804    $1,985    $2,183      $2,401    $2,641    $2,906    $3,196    $3,516    $3,867    $4,254    $4,680
Cash from                         $16,619   $32,822   $36,106   $39,716     $43,688   $48,057   $52,863   $58,150   $63,965   $70,362   $77,399   $85,139
Receivables
Subtotal Cash from                $18,259   $34,626   $38,090   $41,899     $46,089   $50,699   $55,769   $61,346   $67,481   $74,229   $81,653   $89,818
Operations

Additional Cash
Received
Sales Tax, VAT,          0.00%        $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
HST/GST Received
New Current                           $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Borrowing
New Other Liabilities                 $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
(interest-free)
New Long-term                         $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Liabilities
Sales of Other Current                $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Assets
Sales of Long-term                    $0        $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Assets
New Investment                   $523,000       $0        $0        $0          $0        $0        $0        $0        $0        $0        $0        $0
Received
Subtotal Cash                    $541,259   $34,626   $38,090   $41,899     $46,089   $50,699   $55,769   $61,346   $67,481   $74,229   $81,653   $89,818
Received




                                                                                                                                                  Page 4
                                                                    Appendix


Expenditures                 Oct       Nov        Dec        Jan         Feb        Mar         Apr       May        Jun         Jul       Aug        Sep

Expenditures from
Operations
Cash Spending             $3,725     $3,725     $3,725     $3,725      $3,725     $3,725     $3,725     $3,725     $3,725     $3,725     $3,725     $3,725
Bill Payments                 $0      $267      $8,044     $8,660      $8,931     $9,206     $9,946    $10,296    $11,042    $12,782    $55,742    $68,873
Subtotal Spent on         $3,725     $3,992    $11,769    $12,385     $12,656    $12,931    $13,671    $14,021    $14,767    $16,507    $59,467    $72,598
Operations

Additional Cash Spent
Sales Tax, VAT,              $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
HST/GST Paid Out
Principal Repayment          $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
of Current Borrowing
Other Liabilities            $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Principal Repayment
Long-term Liabilities        $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Principal Repayment
Purchase Other          $150,000        $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Current Assets
Purchase Long-term      $200,000        $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Assets
Dividends                     $0         $0         $0         $0          $0         $0         $0         $0         $0         $0         $0         $0
Subtotal Cash Spent     $353,725     $3,992    $11,769    $12,385     $12,656    $12,931    $13,671    $14,021    $14,767    $16,507    $59,467    $72,598

Net Cash Flow           $187,534    $30,634    $26,321    $29,514     $33,434    $37,768    $42,098    $47,325    $52,713    $57,723    $22,186    $17,220
Cash Balance            $282,451   $313,085   $339,405   $368,920    $402,353   $440,121   $482,219   $529,545   $582,258   $639,981   $662,166   $679,386




                                                                                                                                                   Page 5
                                                                             Appendix

Table: Balance Sheet


Pro Forma
Balance
Sheet
                                  Oct       Nov        Dec        Jan        Feb        Mar         Apr       May          Jun           Jul         Aug          Sep
Assets            Starting
                  Balances

Current
Assets
Cash               $94,917   $282,451   $313,085   $339,405   $368,920   $402,353   $440,121   $482,219   $529,545    $582,258     $639,981     $662,166     $679,386
Accounts                $0    $14,541    $15,996    $17,596    $19,355    $21,291    $23,420    $25,763    $28,339     $31,173      $34,291      $37,720      $41,492
Receivable
Inventory         $300,000   $278,149   $254,112   $227,671   $198,586   $166,592   $131,398    $92,684    $50,099     $46,843      $51,528      $56,681      $62,350
Other Current      $30,000   $180,000   $180,000   $180,000   $180,000   $180,000   $180,000   $180,000   $180,000    $180,000     $180,000     $180,000     $180,000
Assets
Total Current     $424,917   $755,141   $763,193   $764,672   $766,861   $770,236   $774,940   $780,666   $787,982    $840,274     $905,799     $936,567     $963,228
Assets

Long-term
Assets
Long-term               $0   $200,000   $200,000   $200,000   $200,000   $200,000   $200,000   $200,000   $200,000    $200,000     $200,000     $200,000     $200,000
Assets
Accumulated             $0      $673      $1,463     $2,871     $3,740     $4,914     $6,191     $7,597     $9,097     $10,494      $11,728      $12,911      $14,257
Depreciation
Total Long-             $0   $199,327   $198,537   $197,129   $196,260   $195,086   $193,809   $192,403   $190,903    $189,506     $188,272     $187,089     $185,743
term Assets
Total Assets      $424,917   $954,468   $961,730   $961,801   $963,121   $965,322   $968,749   $973,069   $978,885   $1,029,780   $1,094,071   $1,123,656   $1,148,971

Liabilities and                   Oct       Nov        Dec        Jan        Feb        Mar         Apr       May          Jun           Jul         Aug          Sep
Capital

Current
Liabilities
Accounts                $0     $8,023    $16,407    $17,285    $17,805    $18,809    $19,874    $20,961    $21,981     $66,235     $122,127     $141,041     $153,900
Payable
Current                 $0        $0         $0         $0         $0         $0         $0         $0         $0           $0           $0           $0           $0
Borrowing
Other Current           $0        $0         $0         $0         $0         $0         $0         $0         $0           $0           $0           $0           $0
Liabilities
Subtotal                $0     $8,023    $16,407    $17,285    $17,805    $18,809    $19,874    $20,961    $21,981     $66,235     $122,127     $141,041     $153,900
Current
Liabilities

Long-term         $119,125   $119,125   $119,125   $119,125   $119,125   $119,125   $119,125   $119,125   $119,125    $119,125     $119,125     $119,125     $119,125

                                                                                                                                                              Page 6
                                                                                  Appendix

Liabilities
Total             $119,125   $127,148    $135,532    $136,410    $136,930    $137,934    $138,999   $140,086   $141,106    $185,360     $241,252     $260,166     $273,025
Liabilities

Paid-in                $0    $523,000    $523,000    $523,000    $523,000    $523,000    $523,000   $523,000   $523,000    $523,000     $523,000     $523,000     $523,000
Capital
Retained          $105,792   $305,792    $305,792    $305,792    $305,792    $305,792    $305,792   $305,792   $305,792    $305,792     $305,792     $305,792     $305,792
Earnings
Earnings          $200,000    ($1,472)    ($2,595)    ($3,401)    ($2,601)    ($1,404)      $958      $4,191     $8,987      $15,628      $24,028      $34,698      $47,154
Total Capital     $305,792   $827,320    $826,197    $825,391    $826,191    $827,388    $829,750   $832,983   $837,779    $844,420     $852,820     $863,490     $875,946
Total             $424,917   $954,468    $961,730    $961,801    $963,121    $965,322    $968,749   $973,069   $978,885   $1,029,780   $1,094,071   $1,123,656   $1,148,971
Liabilities and
Capital

Net Worth         $305,792   $827,320    $826,197    $825,391    $826,191    $827,388    $829,750   $832,983   $837,779    $844,420     $852,820     $863,490     $875,946




                                                                                                                                                                   Page 7
                                                               Appendix


								
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