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Business Plan for High End Lamps and Lighting Fixtures Retail

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Business Plan for High End Lamps and Lighting Fixtures Retail Powered By Docstoc
					This Business Plan for a High End Lamps and Lighting Fixtures Retail 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.
20__



       [Company Name]
          Business plan
                [Name]
            XXX-XXX-XXXX
            [Email Address]
                                    Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [Name]
In this business plan is confidential; therefore, reader agrees not to disclose it without the express
written permission of [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 [Name].
Upon request, this document is to be immediately returned to [Name].
___________________
Signature

__[Name]_
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 ...................................................................................................................... 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 ................................................................................................................................. 8
  5.2 Competitive Edge ..................................................................................................................... 8
  5.3 Marketing Strategy .................................................................................................................. 8
  5.4 Sales Strategy ........................................................................................................................... 8
    5.4.1 Sales Forecast.................................................................................................................... 9
      Table: Sales Forecast ............................................................................................................. 9
      Chart: Sales Monthly .............................................................................................................. 9
      Chart: Sales by Year ............................................................................................................. 10
  5.5 Milestones.................................................................................................................................. 10
    Table: Milestones ....................................................................................................................... 10
    Chart: Milestones ....................................................................................................................... 11
6.0 Management Summary ............................................................................................................ 11
  6.1 Personnel Plan ......................................................................................................................... 11
    Table: Personnel ......................................................................................................................... 11
7.0 Financial Plan ............................................................................................................................... 11
  7.1 Start-up Funding .................................................................................................................... 12
    Table: Start-up Funding .......................................................................................................... 12
  7.2 Important Assumptions ....................................................................................................... 13
  7.3 Break-even Analysis .............................................................................................................. 14
    Table: Break-even Analysis.................................................................................................... 14
    Chart: Break-even Analysis ................................................................................................... 14

                                                                                                                                                Page 1
                                                              Table of Contents



  7.4 Projected Profit and Loss ..................................................................................................... 15
    Table: Profit and Loss ............................................................................................................... 15
    Chart: Profit Monthly ................................................................................................................ 16
    Chart: Profit Yearly .................................................................................................................... 16
    Chart: Gross Margin Monthly................................................................................................. 17
    Chart: Gross Margin Yearly .................................................................................................... 17
  7.5 Projected Cash Flow .............................................................................................................. 18
    Table: Cash Flow ........................................................................................................................ 18
    Chart: Cash .................................................................................................................................. 19
  7.6 Projected Balance Sheet ...................................................................................................... 19
    Table: Balance Sheet ................................................................................................................ 19
  7.7 Business Ratios ....................................................................................................................... 20
    Table: Ratios ................................................................................................................................ 20
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Cash Flow .................................................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 6
Table: Balance Sheet .......................................................................................................................... 7




                                                                                                                                            Page 2
                                                                                           January 1,
                                                               [COMPANY NAME]
                                                                                                2010


1.0 Executive Summary

   Introduction:
   [Company Name] has been riding a growth spurt in the lamp industry. Having discovered the
   process in which [Company Name] can place personalized logos and images on lamp shades
   our business predicts that for the first three years of business our growth acceleration will be
   above average. The sales growth has brought some working capital implications, [COMPANY
   NAME] is carefully planning to manage the growth and provide for steady cash flow. [COMPANY
   NAME] [Company Name]o expect to be profitable as never before. This business plan will
   outline the needs and opportunity that [Company Name] has. The purpose of this plan is to
   secure grant funding for $213,000 for the purpose of the growth and the development of the
   business.

   Products:
   [Company Name] is a specialty shop that offers high-end lamps and designer shades to all
   potential clients. [COMPANY NAME] is a nationwide business that has developed a distribution
   model that will allow profitability in the first six months of business. This designer shades are
   customizes images that are places on the shades of lamps. These designs can range from
   pictures of family members or pets to favorite patterns, like camouflage and animal print. The
   artisanship and quality of work are far more superior than anything found on the market.

   Company:
   [Company Name] is a privately owned specialty manufacturer of high-end lamp fixtures for
   customers who care about elegant home and office space. Amazing Lamp Shade is a sole
   proprietorship and is owned and operated by [Name].

   The Market:
   The segment definition is of itself strategic. [COMPANY NAME] does intend to satisfy all users of
   office furniture, but, rather, only those who are most demanding. [COMPANY NAME] is
   definitely out to address the needs of the high-end buyer, who is willing to pay more for quality.
   [COMPANY NAME] [Company Name]o seek the buyer who appreciates two attributes: the
   quality of furniture workmanship and the excellence of design, with an understanding of
   technology and ergonomics built in.

   Start-up Funds Required and Assumptions:

   Supplies........................$145,000
   Stationery etc..................$5,000
   Insurance.......................$10,000
   Rent..............................$40,000
   Computer.........................$2,500
   Cash...............................10,500
   Total Start-up Expenses $213,000

   The funds required to grow Amazing Lamp Shade are in the amount of $213,000. This business
   plan has been created under the assumption that the grant funds will be approved. The growth
   rate and marketing are predicted based on the monies available to [Company Name] through
   grant loans.




                                                                                                   1
                                                                                        January 1,
                                                              [COMPANY NAME]
                                                                                             2010




   Chart: Highlights




1.1 Objectives
   1. Focus on the new channels to increase sales beyond the $1 million mark by 2020.
   2. Maintain a gross margin close to 25%, despite the sales increase.
   3. Increase the net profit to more than 20% of sales by 2015.


1.2 Keys to Success
      Uncompromising commitment to the quality of the end product: quality workmanship,
       quality design, quality of end result.
      Successful niche marketing: we need to find the quality-conscious customer in the right
       channels, and we need to make sure that customer can find us.
      Almost-automatic assembly: we can't afford to ship fully-assembled desks, but assembly
       must be so easy and automatic that it makes the customer feel better about the quality, not
       worse.




                                                                                                2
                                                                                              January 1,
                                                                  [COMPANY NAME]
                                                                                                   2010


2.0 Company Summary
   [Company Name] is a privately-owned specialty manufacturer of high-end lamp fixtures for
   customers who care about elegant home and office space. Our customers are in all levels of
   business that can afford very high quality office furniture, plus a growing portion of high-end
   home offices.
2.1 Company Ownership
   [Company Name] is owned and operated by [Name]. [Name] will manage and run the day-to-
   day operation as well as the directional growth of the business.
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
Supplies                                                                                 $125,000
Stationery etc.                                                                           $25,000
Insurance                                                                                 $10,000
Rent                                                                                      $40,000
Computer                                                                                   $2,500
Total Start-up Expenses                                                                  $202,500

Start-up Assets
Cash Required                                                                             $10,500
Other Current Assets                                                                           $0
Long-term Assets                                                                               $0
Total Assets                                                                              $10,500

Total Requirements                                                                       $213,000




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                                                                                           January 1,
                                                                [COMPANY NAME]
                                                                                                2010


   Chart: Start-up




3.0 Products
   Amazing Lamp Shade's products will include, but not limited to personalized lamp shades.
   These lamp shades will display personalized pictures or graphics that our clients supplies, and
   place those images in the shade part of the lamp. These can be anything from a family
   picture to a type of animal print. Once Amazing Lamp Shade has the image that our client has
   pick, Amazing Lamp Shade will be able to place that image on the shade through a special
   process that will not be shared with the general public.
4.0 Market Analysis Summary
   The target market is a person who wants to have very fine furniture with the latest in
   technology, combined with an old fashioned sense of fine woods and fine woodworking. This
   person can be in the corporate towers, small or medium business, or in a home office. The
   common bond is the appreciation of quality, and the lack of price constraints.
4.1 Market Segmentation
      Corporate executives: The market research indicates about 2.5 million potential customers
       who are managers in corporations of more than 100 employees. The target customer is
       going to be at a high executive level, in most cases, because the purchase price is relatively
       steep compared to standard office furniture.
      Small business owners: The customer surveys indicate a strong market among the owners
       of businesses with fewer than 100 employees. There are 11 million such businesses in this
       country, most of them with concentrated ownership that makes the owners potential
       customers.
      Home offices: the home office business has proliferated during the 2000s, and [COMPANY
       NAME] [Company Name]o has home offices for people employed outside the home. This is a
       big market, some 36 million home offices, growing faster than other markets.



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                                                                                              January 1,
                                                                [COMPANY NAME]
                                                                                                   2010


Table: Market Analysis


Market Analysis
                                       2011       2012        2013        2014        2015
Potential Customers       Growth                                                                   CAGR
Users of Office              6%      56,894      60,308     63,926      67,762      71,828        6.00%
furniture
Users of home furniture      2%     895,410     913,318    931,584      950,216     969,220       2.00%
Total                     2.25%     952,304     973,626    995,510    1,017,978   1,041,048       2.25%




    Chart: Market Analysis (Pie)




4.2 Target Market Segment Strategy
    The segment definition is of itself strategic. [COMPANY NAME] does intend to satisfy all users of
    office furniture, but, rather, only those who are most demanding. We are definitely out to
    address the needs of the high-end buyer, who is willing to pay more for quality.
    In the particular market. [COMPANY NAME] [Company Name]o seek the buyer who appreciates
    two attributes: the quality of furniture workmanship and the excellence of design, with an
    understanding of technology and ergonomics built in.




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                                                                                           January 1,
                                                                [COMPANY NAME]
                                                                                                2010


4.3 Industry Analysis
   The furniture industry has undergone a great deal of change in this decade. The growth of the
   office superstores made a few large brands dominant. They produce relatively inexpensive
   furniture that makes compromises in order to stay at the low price level. Makers of higher
   quality furniture are in general shuffling for niches to hide in. Although [Company Name] was
   essentially developed around a niche, many of the more traditional furniture makers are looking
   for niches, trying to deal with declining sales as the main volume goes elsewhere.
4.3.1 Competition and Buying Patterns
   In the mainstream business, channels are critical to volume. The manufacturers with impact in
   the national sales are going to win display space in the store, and most buyers seem content to
   pick their product off the store floor. Price is critical, because the channels take significant
   margins. Buyers are willing to settle for laminated quality and serviceable design.
   In direct sales to corporations, price and volume is critical. The corporate buyer wants trouble-
   free buying in volume, at a great price. Reliable delivery is as important as reliable quality. In
   the high-end specialty market, particularly in our niche, features are very important. Our target
   customer is not making selections based on price. The ergonomics, design, accommodation
   within the high-quality feel of good wood, is much more important than mere price. We are
   [Company Name]o seeing that assembly is critical to shipping and packing, but our customer
   doesn't accept any assembly problems. We need to make sure that the piece comes together
   almost like magic, and as it does, it presents a greater feel of quality than if it hadn't required
   assembly at all.
5.0 Strategy and Implementation Summary
   We focus on a special kind of customer, the person who wants very high quality customized
   lamps that work beautifully with modern technology. Our customer might be in larger
   corporations, small or medium business, or in a home office with or without a home-office
   business. What is important to the customer is elegance, fine workmanship, ease of use,
   ergonomics, and practicality.
   Our marketing strategy assumes that we need to go into specialty channels to address our
   target customer's needs. The tie-in with the high-end quality catalogs. These catalogs cater to
   our kind of customers. We position as the highest quality, offering status and prestige levels of
   purchase. The product strategy is [Company Name]o based on quality, in this case the
   intersection of technical understanding with very high quality and professional materi[Company
   Name], and workmanship. Our most important competitive edge is our assembly strategy, that
   assembly is not only a pleasure for our customers, it is actually a feature that enhances the
   sense of quality.




                                                                                                    6
                                                                                              January 1,
                                                                   [COMPANY NAME]
                                                                                                   2010


5.1 SWOT Analysis
   The following SWOT analysis captures the key strengths and weaknesses within the company,
   and describes the opportunities and threats.
5.1.1 Strengths
      Strong relationships with suppliers that offer credit arrangements, flexibility, and response
       to special product requirements.
      Excellent and stable staff, offering personalized customer service.
      Great retail space that offers flexibility with a positive and attractive, inviting atmosphere.
      Strong merchandising and product presentation.
      Good referral relationships with complementary vendors, local realtors, and some designers.
      In-store complementary products through "The Window Seat" and "Antique Bureau" add
       interest, stability and revenue.
      High customer loyalty among repeat and high-dollar purchase customers.
5.1.2 Weaknesses
      Access to additional operating capital.
      Cash flow continues to be unpredictable.
      Owners are still climbing the "retail experience curve."
      Challenges of the seasonality of the business.
5.1.3 Opportunities
      Growing market with a significant percentage of our target market still not knowing we
       exist.
      Strategic alliances offering sources for referr[Company Name] and joint marketing activities
       to extend our reach.
      Promising activity from high levels of new home construction.
      Changes in design trends can initiate home updating, and therefore, generate sales.
      Increasing sales opportunities beyond our "100-mile" target area including several smaller
       communities that have produced a faithful following of customers.
      Internet potential for selling products to other markets.




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                                                                                        January 1,
                                                               [COMPANY NAME]
                                                                                             2010


5.1.4 Threats
      The downturn in the economy has impacted store sales.
      Expansion of national discount stores into the local market: including Target, Wal-Mart and
       Home Depot into our decorator fabric space.
      Competition from a national store; or a store with greater financing or product resources
       could enter the market.
      Catalog resources, including Calico Corners and Pottery Barn, with aggressively priced
       trend-setting fabric products including drapery, bedding, and slipcovers.
      Continued price pressure due to competition or the weakening market reducing contribution
       margins.
      Dramatic changes in design, including fabric colors and styles, creates obsolete or less
       profitable inventory.
5.2 Competitive Edge
   The competitive edge for AML is the dominance of high-technology ergonomics and traditional
   high-quality furniture workmanship. Although there are many lamp furniture manufacturers,
   and many lamp lovers, few have brought the crafts together as we have.
5.3 Marketing Strategy
   [COMPANY NAME] product is positioned very carefully: this is high-quality office furniture
   combining workmanship and ergonomics for the customer who understands quality, is a user of
   high technology equipment, and is willing to spend money on the best. Unlike the mainstream
   products, [COMPANY NAME] does not use laminates or cheap manufacturing technology.
   The marketing strategy is based mainly on making the right information available to the right
   target customer. We can't afford to sell people on our expensive products, because most don't
   have the budget. What we really do is make sure that those who have the budget and
   appreciate the product know that it exists, and know where to find it.
   The marketing has to convey the sense of quality in every picture, every promotion, and every
   publication. [COMPANY NAME] can't afford to appear in second-rate catalogs with poor
   illustrations that make the product look less than it is. We [Company Name]o need to leverage
   our presence using high-quality catalogs and specialty distributors.
5.4 Sales Strategy
   The strategy focuses first on maintaining the identity with the high-end buyer who appreciates
   the best available quality, but is [Company Name]o very demanding regarding computer
   systems and technology. We've been able to find these customers using a combination of direct
   and direct sales to distributors. For the next year [COMPANY NAME] will focus on growing
   presence in the high-end direct mail catalog that finds our specialty customer. The ability
   to work with distributors has been promising. We hope to continue the relationship with
   distributors selling directly to larger corporations, even though this takes working capital to
   support receivables.




                                                                                                8
                                                                                                          January 1,
                                                                                       [COMPANY NAME]
                                                                                                               2010


5.4.1 Sales Forecast
   The sales forecast assumes no change in costs or prices, which is a reasonable assumption.
   [COMPANY NAME] is projecting significant change in the product line, or in the proportion
   between different lines as we grow. As business picks up, new clients we will be able to offer a
   wider variety of products. The key to our growth is the growth of the new channels, with the
   main desk. The seasonality, as shown in the chart, is still a factor in the business.

Table: Sales Forecast


Sales Forecast
                                                                            2011              2012          2013
Sales
Lamp Shades                                                               $67,046           $75,000       $80,000
Total Sales                                                               $67,046           $75,000       $80,000

Direct Cost of Sales                                                        2011              2012          2013
Lamp Shades                                                               $12,622           $15,000       $18,000
Subtotal Direct Cost of Sales                                             $12,622           $15,000       $18,000




   Chart: Sales Monthly

                                  Sales Monthly
     $8,000

     $7,000

     $6,000

     $5,000
                                                                                            Lamp Shades
     $4,000

     $3,000

     $2,000

     $1,000

        $0
              Jan         Mar         May         Jul         Sep          Nov
                    Feb         Apr         Jun         Aug         Oct          Dec




                                                                                                                    9
                                                                                      January 1,
                                                             [COMPANY NAME]
                                                                                           2010


   Chart: Sales by Year

                           Sales by Year

    $80,000

    $70,000

    $60,000

    $50,000                                                          Lamp Shades

    $40,000

    $30,000

    $20,000

    $10,000

        $0
                    2011         2012            2013



5.5 Milestones
   The accompanying table shows specific milestones, with responsibilities assigned, 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
Secure Grant                12/1/2010      12/31/2010           $0        [Name]            CEO
Secure location              1/1/2011       1/31/2011       $3,500        [Name]            CEO
Purchase supplies            1/1/2011       1/31/2011     $125,000        [Name]            CEO
Tot[Company Name]                                         $128,500




                                                                                              10
                                                                                        January 1,
                                                              [COMPANY NAME]
                                                                                             2010


   Chart: Milestones




6.0 Management Summary
   [Company Name] management consists of two full-time employees. Additional assistance is
   acquired on a part-time basis and/or through the use of consultants, specifically in legal
   matters. Detailed descriptions are found in the following section.
6.1 Personnel Plan
   As the personnel plan shows, [COMPANY NAME] expects to make significant investments in
   personal.
Table: Personnel

Personnel Plan
                                                            2011            2012            2013
Payroll                                                   $27,600         $28,000         $28,000
                                                               $0              $0              $0
Total People                                                    2               2               2

Total Payroll                                             $27,600         $28,000         $28,000


7.0 Financial Plan
   The following financial prediction are solely based on the ability to secure grant funds in the
   amount of $213,000. The financial picture is quite encouraging for our business after the grant
   funds are secured. With our grant we can increase sales as we will have the monies for more
   material and supplies. We do expect to be able to take some money out as dividends. The
   owners don't take overly generous salaries, so some draw is appropriate.




                                                                                               11
                                                                                        January 1,
                                                              [COMPANY NAME]
                                                                                             2010



7.1 Start-up Funding
   [COMPANY NAME]'s start-up funds are summarized in the following table:
      $213,000 Grant loan
   Any additional capital needed to fund salaries, inventory lags and other costs during the first
   months of the business year will be raised by angle investors.

Table: Start-up Funding


Start-up Funding
Start-up Expenses to Fund                                                             $202,500
Start-up Assets to Fund                                                                $10,500
Total Funding Required                                                                $213,000

Assets
Non-cash Assets from Start-up                                                               $0
Cash Requirements from Start-up                                                        $10,500
Additional Cash Raised                                                                      $0
Cash Balance on Starting Date                                                          $10,500
Total Assets                                                                           $10,500




                                                                                                 12
                                                                                          January 1,
                                                               [COMPANY NAME]
                                                                                               2010



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                                                                                $213,000
Additional Investment Requirement                                                             $0
Total Planned Investment                                                                $213,000

Loss at Start-up (Start-up Expenses)                                                  ($202,500)
Total Capital                                                                            $10,500


Total Capital and Liabilities                                                            $10,500

Total Funding                                                                           $213,000


7.2 Important Assumptions
    The accompanying table lists the main assumptions for developing our financial projections. The
    most sensitive assumption is the collection days. We would like to improve collection days to
    take pressure off of our working capital, but our increasing sales through channels makes the
    collection time a cost of doing business.
    [COMPANY NAME] [Company Name]o expect to see a decline in our inventory turnover ratio,
    another unfortunate side effect of increasing sales through channel. We find ourselves having to
    buy earlier and hold more finished goods in order to deal with sales through the channel.




                                                                                                   13
                                                                                          January 1,
                                                               [COMPANY NAME]
                                                                                               2010


7.3 Break-even Analysis
   The break-even analysis is based on running costs, the "burn-rate" costs we incur to keep the
   business running, not on theoretical fixed costs that would be relevant only if we were closing.
   Assumptions on average unit sales and average per-unit costs depend on averaging. We don't
   really need to calculate an exact average, this is close enough to help us understand what a
   real break-even point might be. The essential insight here is that our sales level seems to be
   running comfortably above break-even.
Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even                                                              $4,589

Assumptions:
Average Percent Variable Cost                                                             19%
Estimated Monthly Fixed Cost                                                            $3,725




   Chart: Break-even Analysis




                                                                                                  14
                                                                                  January 1,
                                                         [COMPANY NAME]
                                                                                       2010


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
                                               2011            2012            2013
Sales                                       $67,046         $75,000         $80,000
Direct Cost of Sales                        $12,622         $15,000         $18,000
Other Costs of Sales                             $0              $0              $0
Total Cost of Sales                         $12,622         $15,000         $18,000

Gross Margin                                $54,424         $60,000         $62,000
Gross Margin %                              81.17%          80.00%          77.50%


Expenses
Payroll                                     $27,600         $28,000         $28,000
Marketing/Promotion                          $7,800          $8,000          $8,000
Depreciation                                     $0              $0              $0
Utilities                                    $3,301          $3,500          $3,500
Payroll Taxes                                $4,500          $3,500          $3,500
Other                                        $1,500          $1,000            $900

Total Operating Expenses                    $44,701         $44,000         $43,900

Profit Before Interest and Taxes             $9,723         $16,000         $18,100
EBITDA                                       $9,723         $16,000         $18,100
 Interest Expense                                $0              $0              $0
 Taxes Incurred                              $2,917          $4,800          $5,430

Net Profit                                   $6,806         $11,200         $12,670
Net Profit/Sales                            10.15%          14.93%          15.84%




                                                                                         15
                                           January 1,
                          [COMPANY NAME]
                                                2010


Chart: Profit Monthly




   Chart: Profit Yearly




                                                  16
                                               January 1,
                              [COMPANY NAME]
                                                    2010


Chart: Gross Margin Monthly




Chart: Gross Margin Yearly




                                                      17
                                                                                          January 1,
                                                               [COMPANY NAME]
                                                                                               2010


7.5 Projected Cash Flow
   The financial outlook is positive as the company rolls out and meets its milestones.

Table: Cash Flow

Pro Forma Cash Flow
                                                            2011             2012             2013
Cash Received

Cash from Operations
Cash Sales                                              $67,046           $75,000          $80,000
Subtotal Cash from Operations                           $67,046           $75,000          $80,000

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                                $213,000                $0               $0
Subtotal Cash Received                                 $280,046           $75,000          $80,000

Expenditures                                                2011             2012             2013

Expenditures from Operations
Cash Spending                                           $27,600           $28,000          $28,000
Bill Payments                                           $22,960           $36,652          $38,460
Subtotal Spent on Operations                            $50,560           $64,652          $66,460

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                            $7,500                $0               $0
Purchase Long-term Assets                              $145,000                $0               $0
Dividends                                                    $0                $0               $0
Subtotal Cash Spent                                    $203,060           $64,652          $66,460

Net Cash Flow                                           $76,986           $10,348          $13,540
Cash Balance                                            $87,486           $97,833         $111,374




                                                                                                 18
                                                                                       January 1,
                                                             [COMPANY NAME]
                                                                                            2010




   Chart: Cash




7.6 Projected Balance Sheet
   The Projected annual financial balances are shown in the following table. The balances for the
   first 12 months are presented in the appendix.
Table: Balance Sheet

Pro Forma Balance Sheet
                                                    2011             2012             2013
Assets

Current Assets
Cash                                             $87,486         $97,833          $111,374
Other Current Assets                              $7,500          $7,500            $7,500
Total Current Assets                             $94,986        $105,333          $118,874

Long-term Assets
Long-term Assets                               $145,000         $145,000          $145,000
Accumulated Depreciation                             $0               $0                $0
Total Long-term Assets                         $145,000         $145,000          $145,000
Total Assets                                   $239,986         $250,333          $263,874




                                                                                              19
                                                                                            January 1,
                                                                [COMPANY NAME]
                                                                                                 2010



Liabilities and Capital                                2011             2012               2013

Current Liabilities
Accounts Payable                                   $9,680              $8,827             $9,698
Current Borrowing                                      $0                  $0                 $0
Other Current Liabilities                              $0                  $0                 $0
Subtotal Current Liabilities                       $9,680              $8,827             $9,698

Long-term Liabilities                                  $0                  $0                 $0
Total Liabilities                                  $9,680              $8,827             $9,698

Paid-in Capital                                  $426,000          $426,000           $426,000
Retained Earnings                              ($202,500)        ($195,694)         ($184,494)
Earnings                                           $6,806           $11,200            $12,670
Total Capital                                    $230,306          $241,506           $254,176
Total Liabilities and Capital                    $239,986          $250,333           $263,874

Net Worth                                       $230,306           $241,506             $254,176


7.7 Business Ratios
   Business ratios for the years of this plan are shown below. Industry profile ratios based on the
   Standard Industrial Classification (SIC) code 2448.

Table: Ratios



Ratio Analysis
                                               2011             2012             2013        Industry
                                                                                               Profile
Sales Growth                                    n.a.          11.86%            6.67%         13.07%

Percent of Total Assets
Other Current Assets                         3.13%          3.00%           2.84%             53.58%
Total Current Assets                        39.58%         42.08%          45.05%             70.11%
Long-term Assets                            60.42%         57.92%          54.95%             29.89%
Total Assets                               100.00%        100.00%         100.00%            100.00%

Current Liabilities                          4.03%             3.53%        3.68%             37.94%
Long-term Liabilities                        0.00%             0.00%        0.00%             54.53%
Total Liabilities                            4.03%             3.53%        3.68%             92.47%
Net Worth                                   95.97%            96.47%       96.32%              7.53%




                                                                                                   20
                                                                   January 1,
                                                 [COMPANY NAME]
                                                                        2010



Percent of Sales
Sales                               100.00%   100.00%   100.00%    100.00%
Gross Margin                         81.17%    80.00%    77.50%     59.56%
Selling, General & Administrative    71.02%    65.07%    61.66%     28.35%
Expenses
Advertising Expenses                11.63%    10.67%     10.00%       1.21%
Profit Before Interest and Taxes    14.50%    21.33%     22.63%       8.19%

Main Ratios
Current                                9.81     11.93      12.26       1.24
Quick                                  9.81     11.93      12.26       1.18
Total Debt to Total Assets           4.03%     3.53%      3.68%     92.47%
Pre-tax Return on Net Worth          4.22%     6.63%      7.12%    696.33%
Pre-tax Return on Assets             4.05%     6.39%      6.86%     52.41%

Additional Ratios                     2011      2012       2013
Net Profit Margin                   10.15%    14.93%     15.84%          n.a
Return on Equity                     2.96%     4.64%      4.98%          n.a

Activity Ratios
Accounts Payable Turnover              3.37      4.06       4.06         n.a
Payment Days                             75        94         86         n.a
Total Asset Turnover                   0.28      0.30       0.30         n.a

Debt Ratios
Debt to Net Worth                      0.04      0.04       0.04         n.a
Current Liab. to Liab.                 1.00      1.00       1.00         n.a

Liquidity Ratios
Net Working Capital                 $85,306   $96,506   $109,176         n.a
Interest Coverage                      0.00      0.00       0.00         n.a

Additional Ratios
Assets to Sales                        3.58      3.34       3.30         n.a
Current Debt/Total Assets               4%        4%         4%          n.a
Acid Test                              9.81     11.93      12.26         n.a
Sales/Net Worth                        0.29      0.31       0.31         n.a
Dividend Payout                        0.00      0.00       0.00         n.a




                                                                          21
                                                              Appendix


Table: Sales Forecast


Sales Forecast
                                  Jan      Feb      Mar      Apr      May      Jun        Jul     Aug      Sep      Oct      Nov       Dec
Sales
Lamp Shades                     $3,560   $4,881   $5,101   $5,505   $5,651   $5,725   $5,358    $4,917   $5,698   $5,615   $7,450    $7,585
Row 2                               $0       $0       $0       $0       $0       $0       $0        $0       $0       $0       $0        $0
Total Sales                     $3,560   $4,881   $5,101   $5,505   $5,651   $5,725   $5,358    $4,917   $5,698   $5,615   $7,450    $7,585

Direct Cost of Sales              Jan      Feb      Mar      Apr      May      Jun        Jul      Aug      Sep      Oct      Nov       Dec
Lamp Shades                      $798     $830     $863     $898     $934     $971    $1,137    $1,157   $1,236   $1,290   $1,280    $1,228
Row 3                              $0       $0       $0       $0       $0       $0        $0        $0       $0       $0       $0        $0
Subtotal Direct Cost of Sales    $798     $830     $863     $898     $934     $971    $1,137    $1,157   $1,236   $1,290   $1,280    $1,228




                                                                                                                                    Page 1
                                                Appendix

Table: Personnel


Personnel Plan
                      Jan      Feb      Mar      Apr     May       Jun       Jul      Aug      Sep      Oct      Nov       Dec
Payroll            $2,300   $2,300   $2,300   $2,300   $2,300   $2,300   $2,300    $2,300   $2,300   $2,300   $2,300    $2,300
                       $0       $0       $0       $0       $0       $0       $0        $0       $0       $0       $0        $0
Total People            2        2        2        2        2        2        2         2        2        2        2         2

Total Payroll      $2,300   $2,300   $2,300   $2,300   $2,300   $2,300   $2,300    $2,300   $2,300   $2,300   $2,300    $2,300




                                                                                                                       Page 2
                                                                        Appendix

Table: Profit and Loss


Pro Forma Profit and
Loss
                                   Jan       Feb       Mar       Apr          May       Jun        Jul      Aug       Sep       Oct       Nov        Dec
Sales                           $3,560    $4,881    $5,101    $5,505       $5,651    $5,725    $5,358    $4,917    $5,698    $5,615    $7,450     $7,585
Direct Cost of Sales              $798      $830      $863      $898         $934      $971    $1,137    $1,157    $1,236    $1,290    $1,280     $1,228
Other Costs of Sales                $0        $0        $0        $0           $0        $0        $0        $0        $0        $0        $0         $0
Total Cost of Sales               $798      $830      $863      $898         $934      $971    $1,137    $1,157    $1,236    $1,290    $1,280     $1,228

Gross Margin                    $2,762     $4,051    $4,238    $4,607       $4,717    $4,754    $4,221    $3,760    $4,462    $4,325    $6,170    $6,357
Gross Margin %                 77.58%     83.00%    83.08%    83.69%       83.47%    83.04%    78.78%    76.47%    78.31%    77.03%    82.82%    83.81%


Expenses
Payroll                         $2,300    $2,300    $2,300    $2,300       $2,300    $2,300    $2,300    $2,300    $2,300    $2,300    $2,300     $2,300
Marketing/Promotion               $650      $650      $650      $650         $650      $650      $650      $650      $650      $650      $650       $650
Depreciation                        $0        $0        $0        $0           $0        $0        $0        $0        $0        $0        $0         $0
Utilities                         $275      $275      $275      $275         $295      $295      $275      $265      $246      $275      $275       $275
Payroll Taxes            15%      $375      $375      $375      $375         $375      $375      $375      $375      $375      $375      $375       $375
Other                             $125      $125      $125      $125         $125      $125      $125      $125      $125      $125      $125       $125

Total Operating                 $3,725    $3,725    $3,725    $3,725       $3,745    $3,745    $3,725    $3,715    $3,696    $3,725    $3,725     $3,725
Expenses

Profit Before Interest          ($963)      $326      $513      $882         $972    $1,009      $496       $45      $766      $600    $2,445     $2,632
and Taxes
EBITDA                          ($963)      $326      $513      $882         $972    $1,009      $496       $45      $766      $600    $2,445     $2,632
 Interest Expense                   $0        $0        $0        $0           $0        $0        $0        $0        $0        $0        $0         $0
 Taxes Incurred                 ($289)       $98      $154      $265         $292      $303      $149       $14      $230      $180      $734       $790

Net Profit                       ($674)     $228      $359      $617         $680      $706      $347        $32     $536      $420     $1,712    $1,842
Net Profit/Sales               -18.94%     4.68%     7.04%    11.22%       12.04%    12.34%     6.48%     0.64%     9.41%     7.48%    22.97%    24.29%




                                                                                                                                                 Page 3
                                                                 Appendix

Table: Cash Flow

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

Cash from Operations
Cash Sales                         $3,560   $4,881   $5,101   $5,505   $5,651   $5,725   $5,358   $4,917   $5,698   $5,615   $7,450   $7,585
Subtotal Cash from                 $3,560   $4,881   $5,101   $5,505   $5,651   $5,725   $5,358   $4,917   $5,698   $5,615   $7,450   $7,585
Operations

Additional Cash
Received
Sales Tax, VAT,          0.00%        $0       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0
HST/GST Received
New Current Borrowing                 $0       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0
New Other Liabilities                 $0       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0
(interest-free)
New Long-term                         $0       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0
Liabilities
Sales of Other Current                $0       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0
Assets
Sales of Long-term                    $0       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0
Assets
New Investment                   $213,000      $0       $0       $0       $0       $0       $0       $0       $0       $0       $0        $0
Received
Subtotal Cash Received           $216,560   $4,881   $5,101   $5,505   $5,651   $5,725   $5,358   $4,917   $5,698   $5,615   $7,450   $7,585




                                                                                                                                      Page 4
                                                            Appendix


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

Expenditures from
Operations
Cash Spending              $2,300    $2,300    $2,300    $2,300    $2,300    $2,300    $2,300    $2,300    $2,300    $2,300    $2,300    $2,300
Bill Payments                  $0        $0       $64    $1,948    $2,356    $2,447    $2,590    $2,672    $2,718    $2,707    $2,595    $2,863
Subtotal Spent on          $2,300    $2,300    $2,364    $4,248    $4,656    $4,747    $4,890    $4,972    $5,018    $5,007    $4,895    $5,163
Operations

Additional Cash Spent
Sales Tax, VAT,               $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
HST/GST Paid Out
Principal Repayment of        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Current Borrowing
Other Liabilities             $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Principal Repayment
Long-term Liabilities         $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Principal Repayment
Purchase Other Current     $7,500       $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Assets
Purchase Long-term       $145,000       $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Assets
Dividends                      $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Subtotal Cash Spent      $154,800    $2,300    $2,364    $4,248    $4,656    $4,747    $4,890    $4,972    $5,018    $5,007    $4,895    $5,163

Net Cash Flow             $61,760    $2,581    $2,737    $1,257      $995      $978      $468     ($55)      $680      $608    $2,555    $2,422
Cash Balance              $72,260   $74,841   $77,578   $78,834   $79,830   $80,808   $81,276   $81,220   $81,900   $82,508   $85,064   $87,486




                                                                                                                                        Page 5
                                                                             Appendix




Table: Balance Sheet

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

Current
Assets
Cash               $10,500       $72,260    $74,841    $77,578    $78,834    $79,830    $80,808    $81,276    $81,220    $81,900    $82,508    $85,064    $87,486
Other Current           $0        $7,500     $7,500     $7,500     $7,500     $7,500     $7,500     $7,500     $7,500     $7,500     $7,500     $7,500     $7,500
Assets
Total Current      $10,500       $79,760    $82,341    $85,078    $86,334    $87,330    $88,308    $88,776    $88,720    $89,400    $90,008    $92,564    $94,986
Assets

Long-term
Assets
Long-term                  $0   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000
Assets
Accumulated                $0        $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0         $0
Depreciation
Total Long-                $0   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000   $145,000
term Assets
Total Assets       $10,500      $224,760   $227,341   $230,078   $231,334   $232,330   $233,308   $233,776   $233,720   $234,400   $235,008   $237,564   $239,986




                                                                                                                                                         Page 6
                                                                                      Appendix


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


Current
Liabilities
Accounts                 $0       $1,934       $4,287       $6,664       $7,304       $7,619       $7,891       $8,011       $7,924       $8,068       $8,256       $9,100       $9,680
Payable
Current                  $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Borrowing
Other Current            $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Liabilities
Subtotal                 $0       $1,934       $4,287       $6,664       $7,304       $7,619       $7,891       $8,011       $7,924       $8,068       $8,256       $9,100       $9,680
Current
Liabilities

Long-term                $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0           $0
Liabilities
Total                    $0       $1,934       $4,287       $6,664       $7,304       $7,619       $7,891       $8,011       $7,924       $8,068       $8,256       $9,100       $9,680
Liabilities

Paid-in            $213,000     $426,000     $426,000     $426,000     $426,000     $426,000     $426,000     $426,000     $426,000     $426,000     $426,000     $426,000     $426,000
Capital
Retained          ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)   ($202,500)
Earnings
Earnings                 $0       ($674)       ($446)        ($87)         $531       $1,211       $1,917       $2,265       $2,296       $2,832       $3,252       $4,964       $6,806
Total Capital       $10,500     $222,826     $223,054     $223,413     $224,031     $224,711     $225,417     $225,765     $225,796     $226,332     $226,752     $228,464     $230,306
Total               $10,500     $224,760     $227,341     $230,078     $231,334     $232,330     $233,308     $233,776     $233,720     $234,400     $235,008     $237,564     $239,986
Liabilities and
Capital


Net Worth           $10,500     $222,826     $223,054     $223,413     $224,031     $224,711     $225,417     $225,765     $225,796     $226,332     $226,752     $228,464     $230,306




                                                                                                                                                                               Page 7
                                                               Appendix


				
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Description: This Business Plan for a High End Lamps and Lighting Fixtures Retail 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.