Business Plan for Blown Glass Art Company

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Business Plan for Blown Glass Art Company Powered By Docstoc
					This Business Plan for a Blown Glass Art Company 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]

                                [Name] -Owner


                                    [Address]
                                 [City, State ZIP]
                          XXX-XXX-XXXX T XXX-XXX-XXXX C
                                 [Email Address]
                                 [Email Address]




                                BUSINESS PLAN




© 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



1.0 Executive Summary .................................................................................................................... 1
    Chart: Highlights .......................................................................................................................... 2
  1.1 Objectives.................................................................................................................................... 2
  1.2 Mission .......................................................................................................................................... 2
  1.3 Keys to Success ........................................................................................................................ 3
2.0 Company Summary ..................................................................................................................... 3
  2.1 Company Ownership ............................................................................................................... 3
  2.2 Start-up Summary ................................................................................................................... 3
    Table: Start-up.............................................................................................................................. 3
    Chart: Start-up ............................................................................................................................. 4
3.0 Products ........................................................................................................................................... 4
4.0 Market Analysis Summary ........................................................................................................ 5
  4.1 Market Segmentation ............................................................................................................. 5
    Table: Market Analysis ............................................................................................................... 5
    Chart: Market Analysis (Pie) .................................................................................................... 5
  4.2 Target Market Segment Strategy ...................................................................................... 6
  4.3 Industry Analysis ...................................................................................................................... 6
    4.3.1 Competition and Buying Patterns .............................................................................. 6
5.0 Strategy and Implementation Summary ............................................................................ 6
  5.1 SWOT Analysis .......................................................................................................................... 7
    5.1.1 Strengths ............................................................................................................................. 7
    5.1.2 Weaknesses ........................................................................................................................ 7
    5.1.3 Opportunities ..................................................................................................................... 7
    5.1.4 Threats ................................................................................................................................. 7
  5.2 Competitive Edge ..................................................................................................................... 8
  5.3 Marketing Strategy .................................................................................................................. 8
  5.4 Sales Strategy ........................................................................................................................... 8
    5.4.1 Sales Forecast.................................................................................................................... 8
      Table: Sales Forecast ............................................................................................................. 8
      Chart: Sales by Year ............................................................................................................... 9
  5.5 Milestones.................................................................................................................................... 9
    Table: Milestones ......................................................................................................................... 9
    Chart: Milestones ....................................................................................................................... 10
6.0 Management Summary ............................................................................................................ 10
  6.1 Personnel Plan ......................................................................................................................... 10
    Table: Personnel ......................................................................................................................... 10
7.0 Financial Plan ............................................................................................................................... 11
  7.1 Start-up Funding .................................................................................................................... 11
    Table: Start-up Funding .......................................................................................................... 11
  7.2 Important Assumptions ....................................................................................................... 12
  7.3 Break-even Analysis .............................................................................................................. 12
    Table: Break-even Analysis.................................................................................................... 12
    Chart: Break-even Analysis ................................................................................................... 12
  7.4 Projected Profit and Loss ..................................................................................................... 13

                                                                                                                                                Page 1
                                                              Table of Contents



    Table: Profit and Loss ............................................................................................................... 13
    Chart: Profit Yearly .................................................................................................................... 14
    Chart: Gross Margin Yearly .................................................................................................... 14
  7.5 Projected Cash Flow .............................................................................................................. 15
    Table: Cash Flow ........................................................................................................................ 15
    Chart: Cash .................................................................................................................................. 16
  7.6 Projected Balance Sheet ...................................................................................................... 17
    Table: Balance Sheet ................................................................................................................ 17
  7.7 Business Ratios ....................................................................................................................... 17
    Table: Ratios ................................................................................................................................ 18
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 5




                                                                                                                                            Page 2
                                      [Company Name]



1.0 Executive Summary

  [Company Name] - A Glass shop and artist consignment store is a new business in Grand
  Rapids, MI. [Company Name] will be run by [Name] a veteran of 20 years in the glass
  shop industry. Additionally, has leveraged his regionally specific industry insights, into a niche
  store that has little or no direct competition. The reason for this is that [Name] has designed
  unique glass products that use cutting edge technology to produce a product that has near
  100% purifying properties, compared to the typical ~80% of other glass producers. With a
  selection of glass and goods not replicated in the city, superior customer service, and
  reasonable prices, [Company Name] will capitalize on this incredible opportunity. The
  owner has secured a location that offers very good foot traffic and easy accessibility. [Name]
  will efficiently lay out the store to increase sales and give the customers the utmost in
  attention. This attention to detail, combined with his passion and knowledge of the industry, will
  help the store reach a profitable level quickly. The projected growth rate for [Company Name]
  is quite steady, with profitability estimated by year one and revenue of $240,000 by year three.




  The company will accomplish its expansion and development of new blown glass technology by
  utilizing a grant of $160,000. The following plan will delineate the aspects of [Company Name]
  that will allow it to become the premier glass shop in the Grand Rapids area. It has already
  aligned its self with the number one blown glass producer in the United States and will be the
  only shop in Michigan to carry this line of superior blown glass. [Company Name]s will continue
  to set itself apart by increasing the number of consigned artist to beyond thirty.




                                          BUSINESS PLAN                                      Page 1
                                        [Company Name]



   Chart: Highlights




1.1 Objectives

   The objectives for the first three years of operation include:

   To create a retail store whose primary goal is to exceed customer's expectations.

   To increase the number of clients served by at least 20% per year through superior
   performance and selection.

   To obtain annual revenues exceeding $240,000.

1.2 Mission

   [Company Name]'s mission is to provide the customer with the highest quality blown glass
   and unique clothing and gear at reasonable prices. We exist to attract and maintain customers.
   When we adhere to this maxim, everything else will fall into place. Our services will exceed the
   expectations of our customers.

   The company also continues to serve its community through raffles, toys for tots drives and
   similar discount fairs. Also, by allowing up and coming artist to expose their talents to the
   Grand Rapids public on a consignment basis, [Company Name] can give back directly to the
   community on a consistent basis.




                                            BUSINESS PLAN                                   Page 2
                                        [Company Name]



1.3 Keys to Success

   To succeed [Company Name] must:

      Implement a successful advertisement and marketing campaign to inform the existing
       clientele and the public of our new blown glass standards.
      Providing new glass equipment and accessories
      Retain the services of reputable glass manufacturers.
      Build brand image and brand equity through marketing.

2.0 Company Summary

   [Company Name]s creates and sells a wide range high quality blown glass equipment and
   accessories. It is located in Grand Rapids, MI. It will also serve as a consignment shop for
   artistic clothing, wears, music and artwork. [Company Name]s will offer through consignment
   clothing etc., for reasonable prices, allowing a wider range of people to enjoy the shopping for
   blown glass items. [Company Name]s will sell these items on consignment, meaning it will sell
   artists' items and pay for them when sold. The business will make a profit in year one, and will
   grow steadily each consecutive year. The owner also has introduced a new technology in blow
   glass instruments. The purifying properties of these glass smokers will remove up to 97% of
   the impurities in the smoke.

2.1 Company Ownership

   [Company Name] is a sole proprietorship owned and operated by [Name] [Name].

2.2 Start-up Summary

   The following table and chart illustrates projected initial start-up costs for the firm.

Table: Start-up

   Start-up

   Requirements

   Start-up Expenses
   Legal                                                                                  $0
   Stationery etc.                                                                    $1,000
   Insurance                                                                            $600
   Rent                                                                              $18,000
   Computer                                                                           $5,500
   Other                                                                             $20,000
   Total Start-up Expenses                                                           $45,100

   Start-up Assets
   Cash Required                                                                      $6,000
   Start-up Inventory                                                                $12,000
   Other Current Assets                                                              $15,000
   Long-term Assets                                                                       $0
   Total Assets                                                                      $33,000

   Total Requirements                                                                $78,100

                                             BUSINESS PLAN                                     Page 3
                                      [Company Name]



Chart: Start-up




3.0 Products

   [Company Name] designs and then has manufactured blown glass smoking instruments and
   accessories. The accessories take the form of everything from glass jars, incense holders
   to jewelry. All of the products are designed from or made to; compliment the blown glass
   instrument industry. The revolutionary product, a design from the owner, refines the
   original tobacco product into a purer form, by removing the carcinogens and pesticides found in
   it. This will be the "cleanest pipe on the planet." Its percolator adds ambient air to the smoke
   similar to a coffee maker. Once testing and final design are complete, the aim is to reach the
   97% purity mark.




                                          BUSINESS PLAN                                     Page 4
                                      [Company Name]



4.0 Market Analysis Summary

   Our target market is a person who wants to have a very fine smoking experience with the latest
   in technology, combined with a sense of smoke related art, clothing and fine glass working. 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 selection constraints.

4.1 Market Segmentation

   Medicinal & Recreational smokers This is the major segment for [Company Name]. These
   are members of the community between the ages of 18 and 50 for the most part.

   Bargain hunters This group will buy things because it is a unique item at a reasonable price.
   While some of the items will appeal to them, the unique nature and hand made quality will
   really bring this group to the shop for the variety of consignment items.

Table: Market Analysis



   Market Analysis
                                       2010       2011       2012       2013       2014
   Potential Customers    Growth                                                             CAGR
   Recreational              5%       75,000     78,750     82,688     86,822     91,163     5.00%
   Smokers
   Medicinal Smokers         10%      10,000     11,000     12,100     13,310     14,641    10.00%
   Bargain Hunters           20%     100,000    120,000    144,000    172,800    207,360    20.00%
   Total                  14.06%     185,000    209,750    238,788    272,932    313,164    14.06%




   Chart: Market Analysis (Pie)




                                          BUSINESS PLAN                                     Page 5
                                      [Company Name]



4.2 Target Market Segment Strategy

   [Company Name] intends to target people that have a need for "smoking" glass instruments,
   accessories and clothing. The addition of the artist consignment items helps to bring people into
   the shop with minimal cost to the owner. Tobacco connoisseurs have began to utilize the glass
   industry to enhance their smoking experience. Hence, they resort to glass shops to purchase
   instruments that are more sophisticated. Buy carrying all the different aspects/items that go
   along with the lifestyle [Company Name] plans to use the nature of impulse buying to increase
   sales from both the consignment shoppers and the die-hard smokers.

4.3 Industry Analysis

   Glass smoking instruments sales have undergone tremendous growth and distribution
   throughout the country. Presently we will concentrate on word of mouth and discount
   sales marketing. This will maximize our profit. The Internet is probably the best communication
   medium for those in the "smoke culture" all over the world, and we believe this is the best way
   to retail our products. The [Company Name] group members we have gained on the World
   Wide Web are now nearly 600 in just the first 6 months of being on Facebook, for example. In
   addition, having "the best pipe" on the planet that, no other Michigan retailer will be able to
   carry, will be a huge advantage for drawing clients.

4.3.1 Competition and Buying Patterns

   Currently there are few true direct competitors in Grand Rapids; due to the fact, [Company
   Name] has a one of a kind product in the area. There are two Grand Rapids competitors that
   have very similar product offerings although [Company Name] was rated the top glass shop in
   the region for the last 6 months, its entire business life.

5.0 Strategy and Implementation Summary

   [Company Name] will succeed by designing high quality, purifying smoking equipment with a
   significant number of accessories with features and options related to the culture. It will focus
   on the majority segment of the market and attempt to achieve the best reputation in that
   segment.




                                           BUSINESS PLAN                                     Page 6
                                        [Company Name]



5.1 SWOT Analysis

   The following SWOT analysis captures the key strengths and weaknesses within the company,
   and describes the opportunities and threats facing [Company Name].

5.1.1 Strengths

   1. Knowledgeable and friendly staff We have gone to great lengths at [Company Name] to
      find people with a passion for teaching and sharing their smoking experiences. Our staff is
      both knowledgeable and eager to please.
   2. State-of-the art equipment Part of the [Company Name] experience includes access to
      state-of-the-art glass equipment. Our customers enjoy from the beautiful floor
      model versions, to the small machines, and high-quality percolators.
   3. Up-scale ambiance When you walk into [Company Name], you'll feel the culture and
      quality. On top of the high tech finely crafted glass, there are a variety of artistic items from
      original designers.
   4. Clear vision of the market need [Company Name] knows what it takes to build an
      upscale Glass shop. We know the customers, we know the technology, and we know how to
      build the service that will bring the two together.

5.1.2 Weaknesses

      Access to additional operating capital
      Cash flow continues to be at the introductory phase, the shop has been opened for 6
       months

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
      Changes in design trends can initiate 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 economy has affected store sales--stock market predictors correlate
       with store sales. It has not been good since the recession began
      Competition from a national store or a store with greater financing or product resources
       could enter the market.
      Continued price pressure due to competition or the weakening market reducing contribution
       margins




                                            BUSINESS PLAN                                       Page 7
                                        [Company Name]



5.2 Competitive Edge

   [Company Name]'s competitive edge is its level of quality, product features and options; it has
   a product that is the purest on the market. In addition, it is the only Michigan distributor of this
   kind of glass product.

5.3 Marketing Strategy

   [Company Name] marketing strategy will include the use of targeted print media and
   internet advertising. It also plans to begin direct selling to shops around the United States who
   provide specialty glass instruments via the internet. We will capitalize on existing relationships
   with manufactures who have stated their willingness to remain onboard. We have positioned
   ourselves as a differentiated provider of the highest quality glass percolators. The primary goal
   of all marketing efforts will be to communicate this to existing and potential customers.

5.4 Sales Strategy

   As the table shows, [Company Name] plans to deliver sales of approximately $100,000 in the
   current year, $185,000 in the second year, and over $250 in the third year following this plan.

5.4.1 Sales Forecast

   The following chart and table show our present sales forecast. We project sales to grow
   approximately 96 percent (or double) in 2011, increase again by another ~40% percent in
   2012.

Table: Sales Forecast



   Sales Forecast
                                                              2010               2011              2012
   Sales
   Glass Wares                                              $95,000          $185,250          $254,719
   Non-Glass Wares                                           $3,000            $6,750           $15,188
   Consignment Items                                         $2,000            $4,500           $10,125
   Total Sales                                            $100,000           $196,500          $280,031


   Direct Cost of Sales                                       2010               2011              2012
   Glass Wares                                              $23,180           $40,565           $56,791
   Non-Glass Wares                                            $732             $1,464            $1,757
   Consignment Items                                            $0                 $0                $0
   Subtotal Direct Cost of Sales                            $23,912           $42,029           $58,548




                                            BUSINESS PLAN                                       Page 8
                                     [Company Name]



   Chart: Sales by Year




5.5 Milestones

   The accompanying table shows specific milestones, with dates, and budgets. The milestones
   represented in this plan are those, which we have determined to be the most important.

Table: Milestones



   Milestones



   Milestone                  Start Date      End Date       Budget    Manager    Department
   Receive Grant Funding      11/1/2010       11/1/2010    $160,000

   Renovate/Remodel           11/1/2010      12/31/2010    ($20,000)

   Hire Employees             11/1/2010       11/8/2010          $0

   Purchase Equipment         11/8/2010       12/6/2010     ($8,000)

   Purchase Inventory         11/8/2010      11/22/2010    ($12,000)

   Design New Technology       7/1/2010       10/1/2010    ($15,000)

   Totals                                                  $105,000




                                           BUSINESS PLAN                              Page 9
                                      [Company Name]



   Chart: Milestones




6.0 Management Summary

   [Company Name] is still a small and growing operation therefore; [Name] [Name], the owner,
   solely manages it.

6.1 Personnel Plan

   As the personnel plan shows, [Company Name] expects to make significant investments
   in three employees all of who have the potential to go full time when the internet operation is
   developed.

Table: Personnel


   Personnel Plan
                                                             2010            2011            2012
   F/T Clerks                                              $5,760         $36,000         $37,080
   P/T Clerks                                              $1,440          $9,000          $9,270
   Total People                                                 3               3               3


   Total Payroll                                           $7,200         $45,000         $46,350




                                         BUSINESS PLAN                                    Page 10
                                               [Company Name]



7.0 Financial Plan

   The following subtopics highlight the financial plan for [Company Name].

7.1 Start-up Funding

   [Company Name] start-up costs are detailed below, in the Start-up Table. The following table
   shows how these start-up costs will be funded by a grant of $160,000.

Table: Start-up Funding



   Start-up Funding
   Start-up Expenses to Fund                                              $45,100
   Start-up Assets to Fund                                                $33,000
   Total Funding Required                                                 $78,100

   Assets
   Non-cash Assets from Start-up                                          $27,000
   Cash Requirements from Start-up                                         $6,000
   Additional Cash Raised                                                 $81,900
   Cash Balance on Starting Date                                          $87,900
   Total Assets                                                          $114,900



   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
   Owner                                                                       $0
   Investor                                                              $160,000
   Additional Investment Requirement                                           $0
   Total Planned Investment                                              $160,000

   Loss at Start-up (Start-up Expenses)                                  ($45,100)
   Total Capital                                                         $114,900



   Total Capital and Liabilities                                         $114,900

   Total Funding                                                         $160,000
                                                 BUSINESS PLAN                         Page 11
                                      [Company Name]




7.2 Important Assumptions

   Important assumptions for this plan are found in the following table. These assumptions largely
   determine the financial plan and require that we secure additional financing.

7.3 Break-even Analysis

   The Break-even Analysis chart and table show that if the costs stay at the current, or relatively
   stable, level [Company Name] will be able to make increased profits for all three-plan years.
   The break-even point is $5,165 per month.

Table: Break-even Analysis



   Break-even Analysis


   Monthly Revenue Break-even                                                     $5,165

   Assumptions:
   Average Percent Variable Cost                                                    24%
   Estimated Monthly Fixed Cost                                                   $3,930




   Chart: Break-even Analysis




                                          BUSINESS PLAN                                     Page 12
                                      [Company Name]



7.4 Projected Profit and Loss

   As the profit and loss table shows, [Company Name] expects to continue its steady growth
   in profitability over the next three years of operations.

Table: Profit and Loss



   Pro Forma Profit and Loss
                                                   2010            2011            2012
   Sales                                        $100,000       $196,500        $280,031
   Direct Cost of Sales                          $23,912        $42,029         $58,548
   Other Costs of Sales                               $0             $0              $0
   Total Cost of Sales                           $23,912        $42,029         $58,548


   Gross Margin                                  $76,088       $154,471        $221,483
   Gross Margin %                                76.09%         78.61%          79.09%



   Expenses
   Payroll                                        $7,200        $45,000         $46,350
   Marketing/Promotion                            $3,500         $3,500          $3,500
   Depreciation                                       $0             $0              $0
   Rent                                          $18,000        $18,000         $18,000
   Utilities                                      $6,000         $6,000          $6,000
   Insurance                                        $600           $600            $600
   Payroll Taxes                                  $1,080         $6,750          $6,953
   Other                                         $10,780        $10,780         $10,780

   Total Operating Expenses                      $47,160        $90,630         $92,183


   Profit Before Interest and Taxes              $28,928        $63,841        $129,301
   EBITDA                                        $28,928        $63,841        $129,301
    Interest Expense                                  $0             $0              $0
    Taxes Incurred                                $8,678        $19,152         $38,790


   Net Profit                                    $20,250        $44,689         $90,511
   Net Profit/Sales                              20.25%         22.74%          32.32%




                                        BUSINESS PLAN                               Page 13
                             [Company Name]



Chart: Profit Yearly




Chart: Gross Margin Yearly




                               BUSINESS PLAN   Page 14
                                           [Company Name]



7.5 Projected Cash Flow

   The financial outlook is positive as the company rolls out and meets its milestones. [Company
   Name] expects to be cash flow positive for all three years of the plan.

Table: Cash Flow



   Pro Forma Cash Flow
                                                               2010         2011            2012
   Cash Received


   Cash from Operations
   Cash Sales                                               $100,000    $196,500         $280,031
   Subtotal Cash from Operations                            $100,000    $196,500         $280,031

   Additional Cash Received
   Sales Tax, VAT, HST/GST Received                           $6,000     $11,790          $16,802
   New Current Borrowing                                          $0          $0               $0
   New Other Liabilities (interest-free)                          $0          $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                                        $0          $0               $0
   Subtotal Cash Received                                   $106,000    $208,290         $296,833

   Expenditures                                                2010         2011            2012

   Expenditures from Operations
   Cash Spending                                              $7,200     $45,000          $46,350
   Bill Payments                                             $57,798    $111,146         $142,011
   Subtotal Spent on Operations                              $64,998    $156,146         $188,361

   Additional Cash Spent
   Sales Tax, VAT, HST/GST Paid Out                           $6,000     $11,790          $16,802
   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                                  $0          $0               $0
   Purchase Long-term Assets                                      $0          $0               $0
   Dividends                                                      $0          $0               $0
   Subtotal Cash Spent                                       $70,998    $167,936         $205,163

   Net Cash Flow                                             $35,002     $40,354          $91,670
   Cash Balance                                             $122,902    $163,256         $254,926




                                               BUSINESS PLAN                            Page 15
              [Company Name]



Chart: Cash




                BUSINESS PLAN   Page 16
                                      [Company Name]



7.6 Projected Balance Sheet

   [Company Name]'s projected company balance sheet follows.

Table: Balance Sheet



   Pro Forma Balance Sheet
                                                          2010             2011              2012
   Assets

   Current Assets
   Cash                                               $122,902         $163,256          $254,926
   Inventory                                            $1,804          $11,128           $12,286
   Other Current Assets                                $15,000          $15,000           $15,000
   Total Current Assets                               $139,706         $189,384          $282,212

   Long-term Assets
   Long-term Assets                                         $0               $0                $0
   Accumulated Depreciation                                 $0               $0                $0
   Total Long-term Assets                                   $0               $0                $0
   Total Assets                                       $139,706         $189,384          $282,212

   Liabilities and Capital                                2010             2011              2012

   Current Liabilities
   Accounts Payable                                     $4,556            $9,545          $11,863
   Current Borrowing                                        $0                $0               $0
   Other Current Liabilities                                $0                $0               $0
   Subtotal Current Liabilities                         $4,556            $9,545          $11,863

   Long-term Liabilities                                    $0                $0               $0
   Total Liabilities                                    $4,556            $9,545          $11,863

   Paid-in Capital                                    $160,000         $160,000          $160,000
   Retained Earnings                                  ($45,100)        ($24,850)          $19,838
   Earnings                                             $20,250          $44,689          $90,511
   Total Capital                                      $135,150         $179,838          $270,349
   Total Liabilities and Capital                      $139,706         $189,384          $282,212

   Net Worth                                          $135,150         $179,838          $270,349




7.7 Business Ratios

   Business ratios for the years of this plan are shown below. Industry profile ratios based on the
   Standard Industrial Classification: Cigar Cigarette & Tobacco Dealers-Wholesale (SIC: 519402),
   are shown for comparison.




                                         BUSINESS PLAN                                      Page 17
                                        [Company Name]




Table: Ratios

   Ratio Analysis
                                                 2010        2011       2012    Industry Profile
   Sales Growth                                   n/a.     96.50%     42.51%            -2.33%

   Percent of Total Assets
   Inventory                                    1.29%       5.88%      4.35%           19.90%
   Other Current Assets                        10.74%       7.92%      5.32%           42.11%
   Total Current Assets                       100.00%     100.00%    100.00%           83.22%
   Long-term Assets                             0.00%       0.00%      0.00%           16.78%
   Total Assets                               100.00%     100.00%    100.00%          100.00%

   Current Liabilities                          3.26%       5.04%      4.20%           42.57%
   Long-term Liabilities                        0.00%       0.00%      0.00%           47.50%
   Total Liabilities                            3.26%       5.04%      4.20%           90.06%
   Net Worth                                   96.74%      94.96%     95.80%            9.94%

   Percent of Sales
   Sales                                      100.00%     100.00%    100.00%          100.00%
   Gross Margin                                76.09%      78.61%     79.09%           26.00%
   Selling, General & Administrative           55.84%      55.87%     46.77%            9.57%
   Expenses
   Advertising Expenses                         3.50%       1.78%      1.25%             0.47%
   Profit Before Interest and Taxes            28.93%      32.49%     46.17%             2.88%

   Main Ratios
   Current                                       30.66       19.84      23.79             1.57
   Quick                                         30.27       18.67      22.75             1.10
   Total Debt to Total Assets                   3.26%       5.04%      4.20%           90.06%
   Pre-tax Return on Net Worth                 21.40%      35.50%     47.83%          154.49%
   Pre-tax Return on Assets                    20.71%      33.71%     45.82%           15.35%

   Additional Ratios                             2010        2011       2012
   Net Profit Margin                           20.25%      22.74%     32.32%                n/a
   Return on Equity                            14.98%      24.85%     33.48%                n/a

   Activity Ratios
   Inventory Turnover                             6.64        6.50       5.00               n/a
   Accounts Payable Turnover                     13.69       12.17      12.17               n/a
   Payment Days                                     27          22         27               n/a
   Total Asset Turnover                           0.72        1.04       0.99               n/a

   Debt Ratios
   Debt to Net Worth                              0.03        0.05       0.04               n/a
   Current Liabilities to Liabilities             1.00        1.00       1.00               n/a

   Liquidity Ratios
   Net Working Capital                        $135,150    $179,838   $270,349               n/a
   Interest Coverage                              0.00        0.00       0.00               n/a

   Additional Ratios
   Assets to Sales                                1.40        0.96       1.01               n/a
   Current Debt/Total Assets                       3%          5%         4%                n/a
   Acid Test                                     30.27       18.67      22.75               n/a
   Sales/Net Worth                                0.74        1.09       1.04               n/a
   Dividend Payout                                0.00        0.00       0.00               n/a




                                          BUSINESS PLAN                              Page 18
                                   Appendix

Table: Sales Forecast



Sales Forecast

                                          2010        2011       2012

Sales

Glass Wares                             $95,000    $185,250   $254,719

Non-Glass Wares                          $3,000      $6,750    $15,188

Consignment Items                        $2,000      $4,500    $10,125

Total Sales                            $100,000    $196,500   $280,031




Direct Cost of Sales                      2010        2011       2012

Glass Wares                             $23,180     $40,565    $56,791

Non-Glass Wares                           $732       $1,464     $1,757

Consignment Items                             $0        $0         $0

Subtotal Direct Cost of Sales           $23,912     $42,029    $58,548




                                BUSINESS PLAN                            Page 1
                      Appendix

Table: Personnel



Personnel Plan



                                    2010      2011      2012



F/T Clerks                         $5,760   $36,000   $37,080



P/T Clerks                         $1,440    $9,000    $9,270



Total People                           3         3         3




Total Payroll                      $7,200   $45,000   $46,350




                   BUSINESS PLAN                       Page 2
                                      Appendix

Table: Profit and Loss



Pro Forma Profit and Loss
                                                  2010       2011       2012
Sales                                       $100,000      $196,500   $280,031
Direct Cost of Sales                         $23,912       $42,029    $58,548
Other Costs of Sales                                $0         $0         $0
Total Cost of Sales                          $23,912       $42,029    $58,548


Gross Margin                                 $76,088      $154,471   $221,483
Gross Margin %                               76.09%        78.61%     79.09%




Expenses
Payroll                                          $7,200    $45,000    $46,350
Marketing/Promotion                              $3,500     $3,500     $3,500
Depreciation                                        $0         $0         $0
Rent                                         $18,000       $18,000    $18,000
Utilities                                        $6,000     $6,000     $6,000
Insurance                                         $600       $600       $600
Payroll Taxes                                    $1,080     $6,750     $6,953
Other                                        $10,780       $10,780    $10,780


Total Operating Expenses                     $47,160       $90,630    $92,183


Profit Before Interest and Taxes             $28,928       $63,841   $129,301
EBITDA                                       $28,928       $63,841   $129,301
 Interest Expense                                   $0         $0         $0
 Taxes Incurred                                  $8,678    $19,152    $38,790


Net Profit                                   $20,250       $44,689    $90,511
Net Profit/Sales                             20.25%        22.74%     32.32%




                                   BUSINESS PLAN                         Page 3
                                               Appendix

Table: Cash Flow



Pro Forma Cash Flow
                                                             2010       2011       2012
Cash Received


Cash from Operations
Cash Sales                                                $100,000   $196,500   $280,031
Subtotal Cash from Operations                             $100,000   $196,500   $280,031


Additional Cash Received
Sales Tax, VAT, HST/GST Received                            $6,000    $11,790    $16,802
New Current Borrowing                                          $0         $0         $0
New Other Liabilities (interest-free)                          $0         $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                                        $0         $0         $0
Subtotal Cash Received                                    $106,000   $208,290   $296,833


Expenditures                                                 2010       2011       2012


Expenditures from Operations
Cash Spending                                               $7,200    $45,000    $46,350
Bill Payments                                              $57,798   $111,146   $142,011
Subtotal Spent on Operations                               $64,998   $156,146   $188,361


Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                            $6,000    $11,790    $16,802
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                                  $0         $0         $0
Purchase Long-term Assets                                      $0         $0         $0
Dividends                                                      $0         $0         $0
Subtotal Cash Spent                                        $70,998   $167,936   $205,163


Net Cash Flow                                              $35,002    $40,354    $91,670
Cash Balance                                              $122,902   $163,256   $254,926




                                            BUSINESS PLAN                             Page 4
                                   Appendix

Table: Balance Sheet



Pro Forma Balance Sheet
                                           2010        2011       2012
Assets


Current Assets
Cash                                   $122,902    $163,256    $254,926
Inventory                                $1,804     $11,128     $12,286
Other Current Assets                    $15,000     $15,000     $15,000
Total Current Assets                   $139,706    $189,384    $282,212


Long-term Assets
Long-term Assets                              $0         $0         $0
Accumulated Depreciation                      $0         $0         $0
Total Long-term Assets                        $0         $0         $0
Total Assets                           $139,706    $189,384    $282,212


Liabilities and Capital                    2010        2011       2012


Current Liabilities
Accounts Payable                         $4,556      $9,545     $11,863
Current Borrowing                            $0          $0          $0
Other Current Liabilities                    $0          $0          $0
Subtotal Current Liabilities             $4,556      $9,545     $11,863


Long-term Liabilities                         $0         $0         $0
Total Liabilities                        $4,556      $9,545     $11,863


Paid-in Capital                        $160,000    $160,000    $160,000
Retained Earnings                      ($45,100)   ($24,850)    $19,838
Earnings                                $20,250     $44,689     $90,511
Total Capital                          $135,150    $179,838    $270,349
Total Liabilities and Capital          $139,706    $189,384    $282,212


Net Worth                              $135,150    $179,838    $270,349




                                BUSINESS PLAN                             Page 5
                                                               Appendix


				
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Description: This Business Plan for a Blown Glass Art Company 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.