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Business Plan for Guns, Rifles and Accessories E Commerce Store

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This Business Plan for a Guns, Rifles and Accessories Ecommerce Store 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 Guns, Rifles and Accessories Ecommerce Store 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
                                   [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] , Inc.




___________________
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 Start-up Summary ................................................................................................................... 3
    Table: Start-up.............................................................................................................................. 3
    Chart: Start-up ............................................................................................................................. 4
3.0 Products ........................................................................................................................................... 4
4.0 Market Analysis Summary ........................................................................................................ 4
  4.1 Market Segmentation ............................................................................................................. 4
    Table: Market Analysis ............................................................................................................... 5
    Chart: Market Analysis (Pie) .................................................................................................... 5
  4.2 Target Market Segment Strategy ...................................................................................... 5
  4.3 Industry Analysis ...................................................................................................................... 5
    4.3.1 Competition and Buying Patterns .............................................................................. 6
5.0 Web Plan Summary ..................................................................................................................... 6
  5.1 Website Marketing Strategy ................................................................................................. 7
  5.2 Development Requirements ................................................................................................. 7
6.0 Strategy and Implementation Summary ............................................................................ 7
  6.1 SWOT Analysis .......................................................................................................................... 7
    6.1.1 Strengths ............................................................................................................................. 7
    6.1.2 Weaknesses ........................................................................................................................ 8
    6.1.3 Opportunities ..................................................................................................................... 8
    6.1.4 Threats ................................................................................................................................. 8
  6.2 Competitive Edge ..................................................................................................................... 8
  6.3 Marketing Strategy .................................................................................................................. 8
  6.4 Sales Strategy ........................................................................................................................... 8
    6.4.1 Sales Forecast.................................................................................................................... 9
      Table: Sales Forecast ............................................................................................................. 9
      Chart: Sales by Year ............................................................................................................... 9
  6.5 Milestones.................................................................................................................................. 10
    Table: Milestones ....................................................................................................................... 10
    Chart: Milestones ....................................................................................................................... 10
7.0 Management Summary ............................................................................................................ 10
  7.1 Personnel Plan ......................................................................................................................... 11
    Table: Personnel ......................................................................................................................... 11
8.0 Financial Plan ............................................................................................................................... 11
  8.1 Start-up Funding .................................................................................................................... 11
    Table: Start-up Funding .......................................................................................................... 12
  8.2 Important Assumptions ....................................................................................................... 12
  8.3 Break-even Analysis .............................................................................................................. 12

    BUSINESS PLAN                                                                                                                           Page 1
                                                              Table of Contents



    Table: Break-even Analysis.................................................................................................... 13
    Chart: Break-even Analysis ................................................................................................... 13
  8.4 Projected Profit and Loss ..................................................................................................... 13
    Table: Profit and Loss ............................................................................................................... 14
    Chart: Profit Yearly .................................................................................................................... 15
    Chart: Gross Margin Yearly .................................................................................................... 15
  8.5 Projected Cash Flow .............................................................................................................. 16
    Table: Cash Flow ........................................................................................................................ 16
    Chart: Cash .................................................................................................................................. 17
  8.6 Projected Balance Sheet ...................................................................................................... 18
    Table: Balance Sheet ................................................................................................................ 18
  8.7 Business Ratios ....................................................................................................................... 18
    Table: Ratios ................................................................................................................................ 19
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 5




   BUSINESS PLAN                                                                                                                        Page 2
[Company Name]



1.0 Executive Summary

  [Company Name]         Inc. is an exciting start-up business that registered as an Ohio C-
  Corporation. [Company Name] is an online retailer of vendor of various rifle and spotting
  scopes. [Company Name] stands apart from the competition by offering a complete line of
  scopes from all of the popular industry manufacturers. [Company Name] is able to offer an
  extensive product selection through its arranged drop ship agreement with an international
  distributor, eliminating their inventory overhead. [Company Name] , Inc., was founded
  by [Name] as an e-commerce business.




  [Company Name] plans to acquire and eventually build a facility to house its e-commerce
  business. Due to its unique approach, offering an extensive selection on-line, as well as
  addressing the common pitfalls of carrying a large inventory, Brad has developed what
  appeared to be a novel, profitable business model. The company plans to support its start-up
  operations through grant funding of $93,000. After start-up, the company will support its
  operations from working capital received through sustained revenues.




  BUSINESS PLAN                                                                      Page 1
[Company Name]



   Chart: Highlights




1.1 Objectives

   [Company Name] has identified three objectives that will serve as lofty but achievable goals for
   the new organization. They are:

   To become a premier vendor sighting and rifle scopes on the world-wide market

   To reach $750,000, $2.25MM, $3.0MM revenue levels each year, respectively, within the
   first 36 months.

   To increase its market presents to international clients by the end of three years.

1.2 Mission

   [Company Name] has a mission to become a leading internet vendor of rifle and spotting
   scopes. Through a combination of outstanding selection and attention to detail, this customer-
   centric organization aims to be known as the best retailer for the price and customer service.

1.3 Keys to Success

   [Company Name] has identified three keys to success, all of which are necessary to achieve
   sustainable profitability.

   1. Identify the products that the market demands and sell a wide range of options

   2. Build long-term customer relationships with exceptional customer service

   3. Design and implement several e-commerce web portals for sale and advertising

  BUSINESS PLAN                                                                            Page 2
[Company Name]



2.0 Company Summary

   [Company Name] is a C- Corporation, located in Portsmouth, OH.

2.1 Company Ownership

   [Company Name] , Inc.'s main shareholder is [Name].

2.2 Start-up Summary

   [Company Name] has identified the type of equipment, and the start-up costs of the
   organization. The start-up expenditures will allow [Company Name] to lease a small office for
   its website equipment, launch a comprehensive eCommerce website, and have the necessary
   office support. The list includes:

   Office furniture- enough for four workstations

   Computer network system - four workstations and one central file server and eCommerce
   software sites with several broadband Internet connections

   Copier and fax machine

   Assorted furniture for the office

   Storage shelving units

Table: Start-up



   Start-up

   Requirements

   Start-up Expenses
   Legal                                                        $400
   Stationery etc.                                              $417
   Insurance                                                    $200
   Rent                                                       $1,200
   Computer                                                  $55,000
   Other                                                     $10,000
   Total Start-up Expenses                                   $67,217

   Start-up Assets
   Cash Required                                             $10,000
   Other Current Assets                                      $20,000
   Long-term Assets                                               $0
   Total Assets                                              $30,000

   Total Requirements                                        $97,217




  BUSINESS PLAN                                                                       Page 3
[Company Name]



   Chart: Start-up




3.0 Products

   [Company Name] will begin its endeavor by exclusively selling rifle and spotting scopes. The
   scopes will be as diverse as the gun market itself; here are the main categories of scopes
   [Company Name] will offer.


   Rifle Scopes used on rifles and guns for normal sighting and aiming

   High Power Rifle Scopes used on high-powered hunting and sniper rifles

   Spotting Scopes used for location and range finding activities

   Night Vision Scope used for both spotting and sighting in low light and nighttime activities


4.0 Market Analysis Summary

   [Company Name] has identified two distinct market segments to target: recreational
   and professional riflemen. The general distinction between the two groups is as follows. The
   professional industry is primarily expert shooters, while the recreational segment has
   amateur sportsmen and seasonal game hunters. The industry is predominantly male. [Company
   Name] faces competition from numerous of companies, who have a mail order and Internet
   presence.

4.1 Market Segmentation

   [Company Name] , Inc has divided the market into two segments, professional and recreational
   riflemen. Since the target market is potentially worldwide, the numbers will be quite significant.

  BUSINESS PLAN                                                                            Page 4
[Company Name]



Table: Market Analysis



   Market Analysis
                                   Year 1        Year 2        Year 3        Year 4        Year 5
   Potential         Growth                                                                         CAGR
   Customers
   Professional         1%    200,000,000   201,000,000   202,005,000   203,015,025   204,030,100   0.50%
   Riflemen
   Recreational         1%    400,000,000   402,000,000   404,010,000   406,030,050   408,060,200   0.50%
   Riflemen
   Total             0.50%    600,000,000   603,000,000   606,015,000   609,045,075   612,090,300   0.50%




   Chart: Market Analysis (Pie)




4.2 Target Market Segment Strategy

   The target market strategy for [Company Name] is ultimately international in scope. This will
   be facilitated by the use of worldwide internet marketing and selling capabilities.

4.3 Industry Analysis

   The firearm industry is one of the most prolific in the world. Thus, riflescopes are in demand by
   a multitude of citizens nationally and internationally.




  BUSINESS PLAN                                                                                 Page 5
[Company Name]




4.3.1 Competition and Buying Patterns

   In the industry of retail scopes, there are a number of factors influencing purchases:

   1. Product Features: Some items may be "better" than others due to the fact that it may
   contain a feature that will make that item easier to use, more functional, versatile, etc.

   2. Reputation: Some items may carry a reputation of being excellent (i.e.: strong, durable,
   long lasting, easy to fix, etc.) products

   3. Word of Mouth: Often purchases are made simply on the basis of word-of-mouth

   4. Pricing: Depending on income, especially for non-professional clients, a cheaper price may
   be the determining factor between two items

5.0 Web Plan Summary

   The website will display the product offerings available for purchase, and provide design
   and specification information appropriate to the scope market. To further show off its
   expertise, [Company Name] , Inc.’s websites will provide a resources area, offering articles,
   research, product information and website links of interest to its customers.




   [Company Name]’s website will mirror the image and branding elements showcased in brick
   and mortar stores and at the same time, keep up with the latest trends in user interface design.
   The key to the websites’ strategy will be combining a well designed front-end, with a back-end
   capable of capturing "hits" and customer data for use in future marketing endeavors.




  BUSINESS PLAN                                                                             Page 6
[Company Name]



5.1 Website Marketing Strategy

   Market strategy in an Internet retail business depends on recognition of expertise by the
   consumer. For [Company Name] it will start with our initial customer base, informing them of
   our Internet presence and encouraging their word-of-mouth recommendations to others.
   Further awareness will be heightened by utilizing search engine marketing, banner advertising,
   and affiliates.

5.2 Development Requirements

   Costs that [Company Name] will expect to incur with development of its website include:

   Development Costs

      Upgrade to four PMI Internet Web Suites - $40,000.
      Site Design - included
      Site Implementation - included

   Ongoing Costs

      Website name registration for four - ~$80 per year
      Site Hosting - $30 or less per month.
      Search Engine Registration - $200 per year
      Site Design Changes - varies

6.0 Strategy and Implementation Summary

   [Company Name] will seek to become the premier rifle and spotting scope source in the
   country. This strategy will rely on a competitive edge and a strong marketing and sales
   campaign. [Company Name] will leverage their competitive edge, of offering the finest selection
   of manufacturers' products, with a strong marketing campaign to develop awareness. The sales
   campaign will emphasize [Company Name]'s ability to offer the highest level of customer
   satisfaction at the lowest price in the industry.

6.1 SWOT Analysis

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

6.1.1 Strengths

   1. Knowledgeable and friendly staff We have gone to great lengths at [Company Name] to
      find mentors with a passion for teaching and sharing their Internet experiences. Our staff is
      both knowledgeable and eager to please.
   2. State-of-the art equipment Part of the Global Marketing experience includes access to
      state-of-the-art computer and software equipment.




  BUSINESS PLAN                                                                          Page 7
[Company Name]



6.1.2 Weaknesses

   1. A dependence on quickly changing technology The technology that is the Internet
      changes rapidly. Product lifecycles are measured in weeks, not months. [Company Name]
      needs to keep up with the technology because a lot of e-commerce success is technology.

6.1.3 Opportunities

   1. Growing population of daily Internet users The importance of the Internet almost
      equals that of the telephone. As the population of daily Internet users increases, so will the
      demand for the products we offer online.

6.1.4 Threats

   1. Rapidly falling cost of Internet retail prices The cost of internet retail prices is dropping
      rapidly. Internet products may become so cheap and profitable that many new e-commerce
      sellers may begin to venture in.

6.2 Competitive Edge

   [Company Name]'s competitive edge is their unmatched selection of models and makes within
   the product lines that they offer. This variety of inventory is very difficult because of the capital
   requirements necessary to maintain inventory levels. [Company Name] avoids this pitfall by
   having negotiated arrangements with an international drop-ship distributor. Having this
   arrangement in place means that [Company Name] is able to offer an unmatched selection
   without having a large physical inventory. The manufacturers are happy to sell the products
   and the distributors are more than welcome to drop ship them. This competitive edge of
   unmatched selection will be a sustainable advantage for [Company Name] , Inc.

6.3 Marketing Strategy

   The following sections illuminate the pricing, promotion and distribution strategies for
   [Company Name] , Inc.

6.4 Sales Strategy

   [Company Name]'s sales strategy is based on the premise that maintaining the highest level of
   customer service is the easiest way to create repeat customers. This based on the fact that the
   industry is relatively large and specialized, and that it is important to be known for great
   customer service. Word travels fast within these industries. If a firm's reputation is positive, the
   industry quickly becomes aware and sales spike upward.




  BUSINESS PLAN                                                                               Page 8
[Company Name]



6.4.1 Sales Forecast

   The sales forecast has been developed from a conservative perspective to ensure that the sales
   targets are met.

Table: Sales Forecast



   Sales Forecast
                                                         Year 1           Year 2           Year 3
   Sales
   Rifle Scopes                                        $300,000         $900,000       $1,200,000
   High Power Scopes                                   $225,000         $675,000         $900,000
   Spotting Scopes                                     $150,000         $450,000         $600,000
   Night Vision Scopes                                  $75,000         $225,000         $300,000
   Total Sales                                         $750,000       $2,250,000       $3,000,000

   Direct Cost of Sales                                  Year 1           Year 2           Year 3
   Rifle Scopes                                        $240,000         $720,000         $960,000
   High Power Scopes                                   $180,000         $540,000         $720,000
   Spotting Scopes                                     $120,000         $360,000         $480,000
   Night Vision Scope                                   $60,000         $180,000         $240,000
   Subtotal Direct Cost of Sales                       $600,000       $1,800,000       $2,400,000




   Chart: Sales by Year




  BUSINESS PLAN                                                                        Page 9
[Company Name]



6.5 Milestones

   The accompanying milestone chart highlights our plan with specific dates. This schedule reflects
   our strong commitment to organization and detail.

Table: Milestones



   Milestones

   Milestone                   Start Date      End Date         Budget      Manager      Department
   Receive Grant Funding       12/1/2010      12/1/2010        $93,000
   Lease Office Space          12/1/2010     12/31/2010       ($3,600)
   Computer Equipment          12/6/2010     12/13/2010      ($15,000)
   Office Equipment            12/6/2010     12/13/2010      ($10,000)
   Hire Employees              12/1/2010     12/31/2010             $0
   Acquire PMI Account (3)     12/1/2010      12/6/2010      ($40,000)
   PMI Training Courses         7/1/2010      6/30/2011      ($20,000)
   Totals                                                       $4,400




   Chart: Milestones




7.0 Management Summary

   The management of [Company Name] is the sole owner, [Name]. This plan calls for the owner
   to concentrate efforts firstly on sales. The additional website administrative functions
   of [Company Name] would become the primary focus of the newly hired team members.



  BUSINESS PLAN                                                                          Page 10
[Company Name]



7.1 Personnel Plan

   The personnel plan is included in the following table below.

Table: Personnel



   Personnel Plan



                                                             Year 1        Year 2      Year 3


   Owner/Manager                                            $50,000       $55,000     $60,000


   Web/Systems Administrators                               $67,500       $69,525     $71,611


   Total People                                                      4         4              4




   Total Payroll                                           $117,500      $124,525    $131,611




8.0 Financial Plan

   The following sections outline important financial information.

8.1 Start-up Funding

   [Company Name] ’s start-up costs are detailed below, in the Start-up Table. The following
   table shows how these start-up costs are funded by the grant.




  BUSINESS PLAN                                                                     Page 11
[Company Name]



Table: Start-up Funding



   Start-up Funding
   Start-up Expenses to Fund                                      $67,217
   Start-up Assets to Fund                                        $30,000
   Total Funding Required                                         $97,217

   Assets
   Non-cash Assets from Start-up                                  $20,000
   Cash Requirements from Start-up                                $10,000
   Additional Cash Raised                                              $0
   Cash Balance on Starting Date                                  $10,000
   Total Assets                                                   $30,000


   Liabilities and Capital

   Liabilities
   Current Borrowing                                                   $0
   Long-term Liabilities                                               $0
   Other Current Liabilities (interest-free)                           $0
   Total Liabilities                                                   $0

   Capital

   Planned Investment
   Owner                                                               $0
   Investor                                                       $93,000
   Additional Investment Requirement                               $4,217
   Total Planned Investment                                       $97,217

   Loss at Start-up (Start-up Expenses)                          ($67,217)
   Total Capital                                                   $30,000


   Total Capital and Liabilities                                  $30,000

   Total Funding                                                  $97,217



8.2 Important Assumptions

   The following table details relevant Financial Assumptions.

8.3 Break-even Analysis

   The following chart and table summarize our break-even analysis.




  BUSINESS PLAN                                                              Page 12
[Company Name]



Table: Break-even Analysis



   Break-even Analysis


   Monthly Revenue Break-even                                               $60,885


   Assumptions:
   Average Percent Variable Cost                                               80%
   Estimated Monthly Fixed Cost                                             $12,177




   Chart: Break-even Analysis




8.4 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.




  BUSINESS PLAN                                                                       Page 13
[Company Name]



Table: Profit and Loss



   Pro Forma Profit and Loss
                                        Year 1       Year 2       Year 3
   Sales                              $750,000   $2,250,000   $3,000,000
   Direct Cost of Sales               $600,000   $1,800,000   $2,400,000
   Other Costs of Sales                     $0           $0           $0
   Total Cost of Sales                $600,000   $1,800,000   $2,400,000


   Gross Margin                       $150,000    $450,000     $600,000
   Gross Margin %                      20.00%      20.00%       20.00%



   Expenses
   Payroll                            $117,500    $124,525     $131,611
   Marketing/Promotion                  $5,000     $50,000      $10,000
   Depreciation                             $0          $0           $0
   Rent                                 $3,000          $0           $0
   Utilities                            $1,800      $6,000       $6,000
   Insurance                            $1,200      $1,200       $1,200
   Payroll Taxes                       $17,625     $18,679      $19,742
   Other                                    $0          $0           $0


   Total Operating Expenses           $146,125    $200,404     $168,552


   Profit Before Interest and Taxes     $3,875    $249,596     $431,448
   EBITDA                               $3,875    $249,596     $431,448
    Interest Expense                        $0          $0           $0
    Taxes Incurred                      $1,162     $74,879     $129,434


   Net Profit                           $2,712    $174,717     $302,013
   Net Profit/Sales                     0.36%       7.77%       10.07%




  BUSINESS PLAN                                                   Page 14
[Company Name]



  Chart: Profit Yearly




  Chart: Gross Margin Yearly




 BUSINESS PLAN                 Page 15
[Company Name]



8.5 Projected Cash Flow

   Our projected cash flow is outlined in the following chart and table.

Table: Cash Flow



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

   Cash from Operations
   Cash Sales                                             $750,000         $2,250,000   $3,000,000
   Subtotal Cash from Operations                          $750,000         $2,250,000   $3,000,000

   Additional Cash Received
   Sales Tax, VAT, HST/GST Received                             $0                 $0           $0
   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                                 $750,000         $2,250,000   $3,000,000

   Expenditures                                              Year 1            Year 2       Year 3

   Expenditures from Operations
   Cash Spending                                          $747,288         $2,075,283   $2,697,987
   Subtotal Spent on Operations                           $747,288         $2,075,283   $2,697,987

   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                                $0                 $0           $0
   Purchase Long-term Assets                                    $0                 $0           $0
   Dividends                                                    $0                 $0           $0
   Subtotal Cash Spent                                    $747,288         $2,075,283   $2,697,987

   Net Cash Flow                                             $2,712         $174,717     $302,013
   Cash Balance                                             $12,712         $187,430     $489,443




 BUSINESS PLAN                                                                          Page 16
[Company Name]



  Chart: Cash




 BUSINESS PLAN   Page 17
[Company Name]



8.6 Projected Balance Sheet

   The table below outlines the projected balance sheet.

Table: Balance Sheet



   Pro Forma Balance Sheet
                                                           Year 1      Year 2           Year 3
   Assets

   Current Assets
   Cash                                               $12,712        $187,430         $489,443
   Other Current Assets                               $20,000         $20,000          $20,000
   Total Current Assets                               $32,712        $207,430         $509,443

   Long-term Assets
   Long-term Assets                                        $0              $0               $0
   Accumulated Depreciation                                $0              $0               $0
   Total Long-term Assets                                  $0              $0               $0
   Total Assets                                       $32,712        $207,430         $509,443

   Liabilities and Capital                                 Year 1      Year 2           Year 3

   Current Liabilities
   Current Borrowing                                          $0           $0              $0
   Other Current Liabilities                                  $0           $0              $0
   Subtotal Current Liabilities                               $0           $0              $0

   Long-term Liabilities                                      $0           $0              $0
   Total Liabilities                                          $0           $0              $0

   Paid-in Capital                                     $97,217         $97,217         $97,217
   Retained Earnings                                 ($67,217)       ($64,504)        $110,213
   Earnings                                             $2,712       $174,717         $302,013
   Total Capital                                       $32,712       $207,430         $509,443
   Total Liabilities and Capital                       $32,712       $207,430         $509,443

   Net Worth                                          $32,712        $207,430         $509,443



8.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 5961, E-Commerce and Online Stores




  BUSINESS PLAN                                                                       Page 18
[Company Name]



Table: Ratios



   Ratio Analysis
                                         Year 1     Year 2     Year 3   Industry Profile
   Sales Growth                            n/a.   200.00%     33.33%            -1.86%

   Percent of Total Assets
   Other Current Assets                  61.14%     9.64%      3.93%           30.39%
   Total Current Assets                 100.00%   100.00%    100.00%           42.98%
   Long-term Assets                       0.00%     0.00%      0.00%           57.02%
   Total Assets                         100.00%   100.00%    100.00%          100.00%

   Current Liabilities                    0.00%     0.00%      0.00%           17.05%
   Long-term Liabilities                  0.00%     0.00%      0.00%           44.58%
   Total Liabilities                      0.00%     0.00%      0.00%           61.63%
   Net Worth                            100.00%   100.00%    100.00%           38.37%

   Percent of Sales
   Sales                                100.00%   100.00%    100.00%          100.00%
   Gross Margin                          20.00%    20.00%     20.00%           69.14%
   Selling, General & Administrative     19.64%    12.23%      9.93%           12.86%
   Expenses
   Advertising Expenses                  0.67%      2.22%      0.33%             0.33%
   Profit Before Interest and Taxes      0.52%     11.09%     14.38%             4.25%

   Main Ratios
   Current                                 0.00       0.00       0.00             1.47
   Quick                                   0.00       0.00       0.00             0.99
   Total Debt to Total Assets            0.00%      0.00%      0.00%           61.63%
   Pre-tax Return on Net Worth          11.85%    120.33%     84.69%            9.43%
   Pre-tax Return on Assets             11.85%    120.33%     84.69%            3.62%

   Additional Ratios                     Year 1     Year 2     Year 3
   Net Profit Margin                     0.36%      7.77%     10.07%                n/a
   Return on Equity                      8.29%     84.23%     59.28%                n/a

   Activity Ratios
   Accounts Payable Turnover              12.46      12.17      12.17               n/a
   Total Asset Turnover                   22.93      10.85       5.89               n/a

   Debt Ratios
   Debt to Net Worth                       0.00       0.00       0.00               n/a
   Current Liabilities to Liabilities      0.00       0.00       0.00               n/a

   Liquidity Ratios
   Net Working Capital                  $32,712   $207,430   $509,443               n/a
   Interest Coverage                       0.00       0.00       0.00               n/a

   Additional Ratios
   Assets to Sales                         0.04       0.09       0.17               n/a
   Current Debt/Total Assets                0%         0%         0%                n/a
   Acid Test                               0.00       0.00       0.00               n/a
   Sales/Net Worth                        22.93      10.85       5.89               n/a
   Dividend Payout                         0.00       0.00       0.00               n/a


  BUSINESS PLAN                                                            Page 19
                                Appendix

Table: Sales Forecast



Sales Forecast


                                           Year 1       Year 2       Year 3


Sales


Rifle Scopes                          $300,000       $900,000    $1,200,000


High Power Scopes                     $225,000       $675,000     $900,000


Spotting Scopes                       $150,000       $450,000     $600,000


Night Vision Scopes                    $75,000       $225,000     $300,000


Total Sales                           $750,000      $2,250,000   $3,000,000




Direct Cost of Sales                       Year 1       Year 2       Year 3


Rifle Scopes                          $240,000       $720,000     $960,000


High Power Scopes                     $180,000       $540,000     $720,000


Spotting Scopes                       $120,000       $360,000     $480,000


Night Vision Scope                     $60,000       $180,000     $240,000


Subtotal Direct Cost of Sales         $600,000      $1,800,000   $2,400,000




  BUSINESS PLAN                                                         Page 1
                             Appendix

Table: Personnel



Personnel Plan

                                          Year 1     Year 2     Year 3

Owner/Manager                            $50,000    $55,000    $60,000

Web/Systems Administrators               $67,500    $69,525    $71,611

Total People                                  4          4          4



Total Payroll                           $117,500   $124,525   $131,611




  BUSINESS PLAN                                                Page 2
                                   Appendix

Table: Profit and Loss



Pro Forma Profit and Loss
                                          Year 1       Year 2       Year 3
Sales                                   $750,000   $2,250,000   $3,000,000
Direct Cost of Sales                    $600,000   $1,800,000   $2,400,000
Other Costs of Sales                          $0          $0           $0
Total Cost of Sales                     $600,000   $1,800,000   $2,400,000


Gross Margin                            $150,000    $450,000     $600,000
Gross Margin %                           20.00%       20.00%       20.00%




Expenses

Payroll                                 $117,500    $124,525     $131,611
Marketing/Promotion                       $5,000     $50,000      $10,000
Depreciation                                  $0          $0           $0
Rent                                      $3,000          $0           $0
Utilities                                 $1,800      $6,000       $6,000
Insurance                                 $1,200      $1,200       $1,200
Payroll Taxes                            $17,625     $18,679      $19,742
Other                                         $0          $0           $0


Total Operating Expenses                $146,125    $200,404     $168,552


Profit Before Interest and Taxes          $3,875    $249,596     $431,448
EBITDA                                    $3,875    $249,596     $431,448
 Interest Expense                             $0          $0           $0
 Taxes Incurred                           $1,162     $74,879     $129,434


Net Profit                                $2,712    $174,717     $302,013
Net Profit/Sales                          0.36%        7.77%       10.07%




   BUSINESS PLAN                                                     Page 3
                                            Appendix

Table: Cash Flow



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


Cash from Operations
Cash Sales                                         $750,000      $2,250,000   $3,000,000
Subtotal Cash from Operations                      $750,000      $2,250,000   $3,000,000


Additional Cash Received
Sales Tax, VAT, HST/GST Received                           $0           $0           $0
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                             $750,000      $2,250,000   $3,000,000


Expenditures                                            Year 1       Year 2       Year 3


Expenditures from Operations
Cash Spending                                      $747,288      $2,075,283   $2,697,987
Subtotal Spent on Operations                       $747,288      $2,075,283   $2,697,987


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                              $0           $0           $0
Purchase Long-term Assets                                $0              $0           $0
Dividends                                                $0              $0           $0
Subtotal Cash Spent                                $747,288      $2,075,283   $2,697,987


Net Cash Flow                                           $2,712    $174,717     $302,013
Cash Balance                                           $12,712    $187,430     $489,443




  BUSINESS PLAN                                                                      Page 4
                                Appendix

Table: Balance Sheet



Pro Forma Balance Sheet
                                      Year 1      Year 2      Year 3
Assets


Current Assets
Cash                                 $12,712    $187,430    $489,443
Other Current Assets                 $20,000     $20,000     $20,000
Total Current Assets                 $32,712    $207,430    $509,443


Long-term Assets
Long-term Assets                           $0         $0         $0
Accumulated Depreciation                   $0         $0         $0
Total Long-term Assets                     $0         $0         $0
Total Assets                         $32,712    $207,430    $509,443


Liabilities and Capital               Year 1      Year 2      Year 3


Current Liabilities
Current Borrowing                          $0         $0         $0
Other Current Liabilities                  $0         $0         $0
Subtotal Current Liabilities               $0         $0         $0


Long-term Liabilities                      $0         $0         $0
Total Liabilities                          $0         $0         $0


Paid-in Capital                       $97,217     $97,217    $97,217
Retained Earnings                   ($67,217)   ($64,504)   $110,213
Earnings                              $2,712    $174,717    $302,013
Total Capital                        $32,712    $207,430    $509,443
Total Liabilities and Capital        $32,712    $207,430    $509,443


Net Worth                            $32,712    $207,430    $509,443




  BUSINESS PLAN                                                    Page 5
                                                               Appendix


								
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