Company Name Insert Image/Logo: Business Plan
Company Name Insert Image/Logo: Business Plan
Company Name Insert Image/Logo: Business Plan
INSERT IMAGE/LOGO
Owner
BUSINESS PLAN
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.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
1. Executive Summary...............................................................4
1.1. Objectives.......................................................................5
1.2. Mission...........................................................................5
1.3. Keys to Success...............................................................5
2. Company Summary...............................................................6
2.1. Company Ownership.........................................................6
2.2. Start-up Summary...........................................................7
3. Products and Services............................................................8
4. Market Analysis Summary.......................................................8
4.1. Market Segmentation.......................................................9
4.2. Target Market Segment Strategy........................................9
4.3. Service Business Analysis................................................10
4.3.1. Competition and Buying Patterns................................10
5. Strategy and Implementation Summary..................................10
5.1. SWOT Analysis...............................................................10
5.1.1. Strengths................................................................11
5.1.2. Weaknesses.............................................................11
5.1.3. Opportunities...........................................................11
5.1.4. Threats...................................................................11
5.2. Competitive Edge...........................................................11
5.3. Marketing Strategy.........................................................11
5.4. Sales Strategy...............................................................12
5.4.1. Sales Forecast..........................................................13
5.5. Milestones.....................................................................15
6. Management Summary.........................................................15
6.1. Personnel Plan...............................................................16
7. Financial Plan......................................................................16
7.1. Start-up Funding............................................................17
7.2. Important Assumptions...................................................18
7.3. Break-even Analysis.......................................................18
7.4. Projected Profit and Loss.................................................19
7.5. Projected Cash Flow........................................................22
7.6. Projected Balance Sheet..................................................25
7.7. Business Ratios..............................................................25
COMPANY NAME
1. Executive Summary
COMPANY NAME
Owner: INSERT NAME
INSERT ADDRESS
Phone:
Email:
Introduction
COMPANY NAME in [CITY], IL is a start-up bridal and formal wear shop that plans to have no
equal in the market it serves. The Company will separate itself by offering the highest quality and
widest variety of bridal and formal wear. It is the goal of the Company to be ultimate shop within
its 100-mile target market and build a solid reputation in the [CITY], MO metropolitan area.
The owner INSERT NAME has been in the formal ware business for 30 years. Her family has also
owned and operated a formal ware shop in Illinois for 60 years. Her experience in this industry is
unmatched when compared to the average shop owner. The Company was formed in November
of 2010, as a result of the owner’s dreams of owning her own shop.
Location
The Company
COMPANY NAME is a start-up sole proprietorship, owned and operated by INSERT NAME. The
owner is seeking to turn this venture into a full-time wedding and formal ware establishment. The
Company is still in liaison with her family’s company, INSERT NAME, which has 60 years of formal
ware experience.
Our Services
COMPANY NAME will offer bridal and formal wear dresses, tuxedo rental, dry cleaning and
alterations as well as wedding accessories, to its clients.
The Market
COMPANY NAME is located 50 miles from a major mid-west metropolitan city, [CITY]. [STATE].
This gives it a unique opportunity to expand its market tenfold, and still be within its 100-mile
target range. Although the population of the Company’s entire County is around 15,000, its
proximity to [CITY] increases its target market potential exponentially.
Financial Considerations
The current financial plan for COMPANY NAME is to obtain funding in the amount of $250,000.
The funding will be used to increase its inventory, hire full-time employees and eventually move
into its own shop (for a more detailed list see the milestones section 5.5).
Highlights
$250,000
$200,000
$150,000 Sales
Gross Margin
$100,000 Net Profit
$50,000
$0
2011 2012 2013
1.1. Objectives
Achieve 50% of all wedding business within a 100-mile radius
1.2. Mission
The mission of COMPANY NAME is to provide excellent customer service and satisfaction in a
warm friendly environment. The Company will aim to provide a work place that allows its
employees the independence and self-sufficiency that comes with working in a business that
promotes a hometown atmosphere. The owner has started COMPANY NAME to realize her
entrepreneurial spirit, and desires to encourage her employees to become part of her dream,
with a team orientated spirit.
Competitive pricing
2. Company Summary
COMPANY NAME is a company that was formed to provide complete wedding and formal ware
selections, as well as wedding accessories (invitations, guest books, etc.) to its target market.
The Company was formed in November of 2010, by INSERT NAME. INSERT NAME comes from a
family which has owned a formal apparel business for 60 years. After branching out on her own,
and forming COMPANY NAME, she has become a company that not only provides tuxedos and
formal wear, but also specializes in wedding dresses and accessories.
Located in [CITY], [STATE], the main goal of the Company is to provide its target market with
not only a full-line of formal apparel and wedding accessories, but also dry cleaning and
alteration services. The Company will continue to keep its relationship with the owner’s family
tuxedo business, and continue to utilize some of its services.
INSERT IMAGE
Start-up
Requirements
Start-up Expenses
Legal $0
Stationery etc. $2,000
Insurance $259
Rent $1,000
Computer $1,000
Other $1,500
Total Start-up Expenses $5,759
Start-up Assets
Cash Required $230,041
Other Current Assets $11,200
Long-term Assets $3,000
Total Assets $244,241
Total Requirements $250,000
Start-up
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Expenses Assets Investment Loans
Bridal Apparel Accessories
Dry Cleaning
Wedding Invitations and Accessories selection
Tuxedo Rental
Apparel Alterations
COMPANY NAME's target market population is made up of individuals from age 14 to seniors,
70+. The reason for this broad target market range is the fact that in a wedding for example,
everyone from the flower girls to the grandparents participates. The Company aims to focus its
marketing on the target population within a 100-mile radius of its location. Although, the entire
target market will be more like a 500-mile radius which includes the entire County.
The main population will come from not only the city of [CITY], [STATE] the County's largest city,
but also [CITY], [STATE] which is only 50 miles away. Within the County of [COUNTY] there is a
population of just over 15,000. Since the Company will also be targeting, the [CITY], [STATE]
metro area, the potential customer base will be right around 500,000.
The market for the Company is divided into to segments, women and men. Although, women
will provide most of the business for COMPANY NAME, men will also utilize the tuxedo rental,
dry cleaning and alteration services.
Market Analysis
2011 2012 2013 2014 2015
Potential Growt CAGR
Customers h
Women 3% 250,00 257,50 265,22 273,18 281,37 3.00
0 0 5 2 7 %
Men 3% 250,00 257,50 265,22 273,18 281,37 3.00
0 0 5 2 7 %
Total 3.00% 500,00 515,00 530,45 546,36 562,75 3.00
0 0 0 4 4 %
Women
Men
The target market for the Company is predefined, due to the nature of the business. As a
bridal and formal apparel shop, the clients are those who desire to attend 'Black Tie Affairs.'
Since, almost 100% of the target population is a potential client the strategy will be to target
no one in particular but everyone in specific.
"First, it is an industry that is made up of multiple smaller enterprises like caterers, wedding
consultants, dresses, various beauty suppliers (hair, makeup), photographers,
favors/bridesmaids gifts, music, honeymoon related, etc. While the industry as a whole
represents a lot of money, each of the component parts is much smaller -- some smaller
than others. These smaller composite suppliers can be very local and likely will be small and
privately owned..." *
*Library of Congress Research 2009
The local bridal shops in the area a few and far between. The owner has had direct contact
with all three of the closest area competitors. The owner actually bought the inventory of one
of these shops that went out of business recently. The second one has also gone out of
business, after providing poor customer satisfaction. This is essential in this industry;
customer who purchases dresses what them to be perfect.
Clients will purchase wedding and formal apparel after intimate inspection and fittings. The
clients of COMPANY NAME will often visit the shop several times to get just the right item.
Therefore it is necessary for a wedding dress or formal ware clients to actually come back
into the shop. On the other hand, the wedding invitations, guest books, etc are items that
can be selected at the store once or on-line and then shipped to the client in [CITY], for
example.
As mentioned above, the market saturation of bridal shops is small in the immediate
area. COMPANY NAME is primarily the only bridal shop with in 15 miles of its
headquarters in [CITY], [STATE]. In this industry customer satisfaction is the key to
gaining clients, especially wedding clients. Once a bridal shop has proved to a client
that they can provide excellent customer service and attention to detail, the client will
come back year after year.
COMPANY NAME plans to utilize its experience in the formal wear industry to deliver the current
trends in bridal ware, accessories, and gowns to the target market. With the grant investment,
the company plans to provide a larger variety of styles and sizes to service its vast target
markets' needs, by increasing its inventory. COMPANY NAME is also seeking to add a full time
dressmaker/tailor and sales assistant, to complete the Shop's start-up plan. Advertisement on
BUSINESS PLAN page 10
COMPANY NAME
the radio, yellow pages, and Google has already begun, and the Company is planning to increase
it exposure with a more intensive ad campaign, in the future.
The following is SWOT analysis for COMPANY NAME. This explains the strengths and
weaknesses within the Company and the opportunities and threats in the industry.
5.1.1. Strengths
Strong relationships with suppliers that offer credit arrangements, flexibility,
and response to special product requirements.
Great retail space that offers flexibility with a positive and attractive,
inviting atmosphere.
5.1.2. Weaknesses
Access to additional operating capital.
5.1.3. Opportunities
Growing market with a significant percentage of our target market still not
knowing we exist.
5.1.4. Threats
The downturn in the economy has impacted store sales--stock market
predictors correlate with store sales.
There are several factors that give COMPANY NAME a competitive edge:
The Company has a strict belief in being kind and befriending clients
Advertising on the radio, in the Yellow.com pages, and online with Google Business
listing
Providing discounts to clients who are repeat customers
The main goal to providing a positive image and attracting clients will be achieved through
word of mouth advertising. COMPANY NAME'S primary marketing tool is the clients it serves.
In this industry many people listen to the advice of friends and family who have already gone
through the experience of a wedding or brought the perfect dress from a particular shop.
Once COMPANY NAME can gain a following of loyal clients, the word will spread fast.
The Company plans to be the bridal shop that provides the best service at the most
reasonable price. Another main factor to completing a sale in this industry is providing a
diligent and intimate customer sales-associate relationship. Not unlike the food service
industry, bridal shops are providers of a service that is near and dear to the client’s heart;
looking their best at a very special occasion. For this reason, it’s imperative that the
Company provide more than just the necessities, but go above and beyond to satisfy the
clients.
INSERT IMAGE/LOGO
The sales forecast below shows that the company plans to have total sales in Year 1 of
$52,117. As the Company is a start-up it expects to double sales in the first 2 years.
Year two sales figures reflect this; the total sales are projected to be $104,235. Finally,
in Year 3, the sales reach $208,469.
Sales Forecast
2011 2012 2013
Sales
Dresses & Accessories $22,147 $44,295 $88,590
Tux Rental $10,458 $20,915 $41,830
Dry Cleaning & Alterations $10,003 $20,006 $40,011
Wedding Accessories $9,510 $19,019 $38,038
Total Sales $52,117 $104,235 $208,469
Direct Cost of Sales 2011 2012 2013
Dresses & Accessories $4,429 $8,859 $17,718
Tux Rental $0 $0 $0
Dry Cleaning & Alterations $0 $0 $0
Wedding Accessories $7,608 $15,215 $30,430
Subtotal Direct Cost of $12,037 $24,074 $48,148
Sales
Sales Monthly
$6,000
$5,000
$4,000
Dresses & Accessories
$3,000 Tux Rental
Dry Cleaning & Alterations
$2,000 Wedding Accessories
$1,000
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales by Year
$250,000
$200,000
$100,000
Dry Cleaning & Alterations
Wedding Accessories
$50,000
$0
2011 2012 2013
5.5. Milestones
The milestones table below shows the significant accomplishments the Company plans to make during the
first three years. After receiving grant funding of $250,000, the Company will begin its intensive ad
campaign, purchase new inventory and hire its employees full-time. In year 3, The Company would like to
purchase its own retail space.
Milestones
Milestone Start Date End Date Budget
Receive Grant 5/23/2011 5/24/2011
Funding
Ad Campaign II 5/24/2011 7/23/2011 $2,000
Purchase Inventory 5/24/2011 7/23/2011 $30,000
Hire 5/24/2011 7/23/2011
Dressmaker/Taylor
Hire Sales Assistant 5/24/2011 7/23/2011 $2,880
Purchase Shop Space 1/2/2013 2/1/2013 $150,000
Milestones
Ad Campaign II
Purchase Inventory
Hire Dressmaker/Taylor
2012 2013
6. Management Summary
Personnel Plan
2011 2012 2013
Dressmaker/Taylor $0 $0 $0
Sales Assistant $10,080 $18,900 $20,790
Total People 2 2 2
Total Payroll $10,080 $18,900 $20,790
7. Financial Plan
The financial plan is contingent upon the receipt of funding in the amount of $250,000. The
Company has based is sales projections and profit and loss statements on this main investment
goal. The funds will also help to spearhead the ad campaign, which will increase the Company’s
exposure in the market.
Start-up Funding
Start-up Expenses to Fund $5,759
Start-up Assets to Fund $244,241
Total Funding Required $250,000
Assets
Non-cash Assets from Start-up $14,200
Cash Requirements from Start-up $230,041
Additional Cash Raised $0
Cash Balance on Starting Date $230,041
Total Assets $244,241
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Other Current Liabilities (interest- $0
free)
Total Liabilities $0
Capital
Planned Investment
Owner $0
Investor $250,000
Additional Investment $0
Requirement
Total Planned Investment $250,000
Loss at Start-up (Start-up ($5,759)
Expenses)
Total Capital $244,241
Total Capital and Liabilities $244,241
Total Funding $250,000
The important assumptions are based on the receipt of funding of $250,000, in the place of
loans. This allows the Company to keep liabilities and interest expense to a minimum. The
break-even analysis, profit and loss statement, as well as the balance sheet and cash flow
statement, also take into account the projected expenditures, which have been generously
stated.
The break-even analysis table and chart below shows that the Company is expecting to have fixed and
variable costs of $2,897 and 23% of sales respectively, for each month in the first year. This means that
the Company’s break even per month is $3,766
Break-even Analysis
Monthly Revenue Break-even $3,766
Assumptions:
Average Percent Variable Cost 23%
Estimated Monthly Fixed Cost $2,897
Break-even Analysis
$3,000
$2,000
$1,000
$0
($1,000)
($2,000)
($3,000)
Profit Monthly
$1,200
$1,000
$800
$600
$400
$200
$0
($200)
($400)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Profit Yearly
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
2011 2012 2013
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
2011 2012 2013
The cash flow projections show the utilization of the Company’s investment and sales
generated funds. The net cash flow in Year 1 is ($63,424), partially due to the spending on
expansion. In Year 2, it returns to ($16,219) and in Year 3, it raises again from the purchase
of the new location, to ($121,859). However, the cash balance is still a healthy $28,539, in
the 3rd Year.
INSERT IMAGE/LOGO
Net Cash Flow ($63,424) ($16,219) ($121,859)
Cash Balance $166,617 $150,398 $28,539
Cash
$250,000
$200,000
$150,000
$0
($50,000)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
The table below shows the average industry ratios for SIC code 2335: Women's, Misses',
and Juniors' Dresses (includes Wedding Dresses, Wedding Gowns), for gross sales of
$250,000 or less.
Ratio Analysis
2011 2012 2013 Industry Profile
Sales Growth 0.00% 100.00% 100.00% 9.95%
Percent of Total Assets
Other Current Assets 30.49% 41.75% 45.95% 28.46%
Total Current Assets 97.68% 98.01% 54.60% 89.35%
Long-term Assets 2.32% 1.99% 45.40% 10.65%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 0.00% 0.00% 0.00% 36.11%
Long-term Liabilities 0.00% 0.00% 0.00% 11.78%
Total Liabilities 0.00% 0.00% 0.00% 47.89%
Net Worth 100.00% 100.00% 100.00% 52.11%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 76.90% 76.90% 76.90% 17.02%
Selling, General & Administrative 69.76% 58.34% 46.88% 5.72%
Expenses
Advertising Expenses 11.51% 11.51% 11.51% 0.26%
Profit Before Interest and Taxes 10.21% 26.52% 42.89% 2.14%
Main Ratios
Current 0.00 0.00 0.00 2.20
Quick 0.00 0.00 0.00 0.83
Total Debt to Total Assets 0.00% 0.00% 0.00% 51.81%
Pre-tax Return on Net Worth 2.15% 10.34% 27.10% 6.21%
Pre-tax Return on Assets 2.15% 10.34% 27.10% 12.88%
Additional Ratios 2011 2012 2013
Net Profit Margin 7.15% 18.57% 30.02% n.a
Return on Equity 1.50% 7.24% 18.97% n.a
Activity Ratios
Accounts Payable Turnover 10.63 12.17 12.17 n.a
Total Asset Turnover 0.21 0.39 0.63 n.a
Debt Ratios
Debt to Net Worth 0.00 0.00 0.00 n.a
Current Liab. to Liab. 0.00 0.00 0.00 n.a
Liquidity Ratios
Net Working Capital $242,217 $261,998 $180,139 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 4.76 2.56 1.58 n.a
Current Debt/Total Assets 0% 0% 0% n.a
Acid Test 0.00 0.00 0.00 n.a
Sales/Net Worth 0.21 0.39 0.63 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Sales Forecast
Jan-11 Feb- Mar- Apr-11 May- Jun-11 Jul-11 Aug- Sep- Oct-11 Nov- Dec-
11 11 11 11 11 11 11
Sales
Dresses & Accessories 0 $1,34 $1,41 $1,48 $1,56 $2,01 $2,04 $1,80 $1,89 $1,99 $2,09 $2,19 $2,30
% 7 5 5 0 3 8 5 6 0 0 4 4
Tux Rental 0 $613 $643 $675 $709 $1,12 $1,11 $821 $862 $905 $950 $998 $1,04
% 3 0 8
Dry Cleaning & Alterations 0 $527 $569 $615 $664 $717 $774 $836 $903 $976 $1,05 $1,13 $1,22
% 4 8 9
Wedding Accessories 0 $532 $569 $609 $651 $697 $746 $798 $854 $913 $977 $1,04 $1,11
% 6 9
Total Sales $3,01 $3,19 $3,38 $3,58 $4,55 $4,67 $4,26 $4,51 $4,78 $5,07 $5,37 $5,70
9 6 4 4 0 8 1 5 5 1 6 0
Direct Cost of Sales Jan-11 Feb- Mar- Apr-11 May- Jun-11 Jul-11 Aug- Sep- Oct-11 Nov- Dec-
11 11 11 11 11 11 11
Dresses & Accessories $269 $283 $297 $312 $403 $410 $361 $379 $398 $418 $439 $461
Tux Rental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dry Cleaning & Alterations $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Wedding Accessories $425 $455 $487 $521 $557 $596 $638 $683 $731 $782 $837 $895
Subtotal Direct Cost of $695 $738 $784 $833 $960 $1,00 $999 $1,06 $1,12 $1,20 $1,27 $1,35
Sales 6 2 9 0 5 6
Personnel Plan
Jan Feb Mar Apr May Jun-11 Jul-11 Aug- Sep- Oct-11 Nov- Dec-11
-11 -11 -11 -11 -11 11 11 11
Dressmaker/Taylor 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
%
Sales Assistant 0 $0 $0 $0 $0 $0 $1,44 $1,44 $1,44 $1,44 $1,44 $1,44 $1,440
% 0 0 0 0 0 0
Total People 0 0 0 0 0 2 2 2 2 2 2 2
Total Payroll $0 $0 $0 $0 $0 $1,44 $1,44 $1,44 $1,44 $1,44 $1,44 $1,440
0 0 0 0 0 0
Principal Repayment
Purchase Other $8,400 $0 $0 $0 $35,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Current Assets
Purchase Long-term $0 $0 $0 $0 $3,000 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $11,129 $2,812 $2,901 $2,995 $41,374 $7,593 $7,463 $7,583 $7,711 $7,847 $7,991 $8,144
Net Cash Flow ($8,110) $384 $483 $589 ($36,824 ($2,915) ($3,202) ($3,068) ($2,926) ($2,775) ($2,615) ($2,445)
)
Cash Balance $221,93 $222,31 $222,79 $223,38 $186,563 $183,64 $180,44 $177,37 $174,45 $171,67 $169,06 $166,617
1 5 8 7 8 6 7 1 6 1
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid-in Capital $250,00 $250,00 $250,00 $250,00 $250,00 $250,00 $250,00 $250,00 $250,00 $250,00 $250,00 $250,00 $250,000
0 0 0 0 0 0 0 0 0 0 0 0
Retained Earnings ($5,759) ($5,759) ($5,759) ($5,759) ($5,759) ($5,759) ($5,759) ($5,759) ($5,759) ($5,759) ($5,759) ($5,759) ($5,759)
Earnings $0 $290 $674 $1,157 $1,746 $2,922 $2,972 $2,733 $2,629 $2,667 $2,856 $3,206 $3,726
Total Capital $244,24 $244,53 $244,91 $245,39 $245,98 $247,16 $247,21 $246,97 $246,87 $246,90 $247,09 $247,44 $247,967
1 1 5 8 7 3 3 4 0 8 7 7
Total Liabilities $244,24 $244,53 $244,91 $245,39 $245,98 $247,16 $247,21 $246,97 $246,87 $246,90 $247,09 $247,44 $247,967
and Capital 1 1 5 8 7 3 3 4 0 8 7 7
Net Worth $244,24 $244,53 $244,91 $245,39 $245,98 $247,16 $247,21 $246,97 $246,87 $246,90 $247,09 $247,44 $247,967
1 1 5 8 7 3 3 4 0 8 7 7