Cell Phones Retailer Business Plan

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Table of Contents
1.0 Executive Summary......................................................................................................................1

Chart: Highlights............................................................................................................................2
1.1 Keys to Success..........................................................................................................................2
1.2 Mission...........................................................................................................................................2
1.3 Objectives.....................................................................................................................................3
2.0 Company Summary......................................................................................................................4
2.1 Company Ownership................................................................................................................4
2.2 Start-up Summary.....................................................................................................................4
Chart: Start-up...............................................................................................................................5
Table: Start-up...............................................................................................................................5
3.0 Products............................................................................................................................................6
4.0 Market Analysis Summary.........................................................................................................6
4.1 Market Segmentation..............................................................................................................7
Table: Market Analysis................................................................................................................7
Chart: Market Analysis (Pie)......................................................................................................7
4.2 Industry Analysis........................................................................................................................8
4.2.1 Competition and Buying Patterns................................................................................9
4.3 Target Market Segment Strategy......................................................................................10
5.0 Strategy and Implementation Summary............................................................................10
5.1 Competitive Edge....................................................................................................................10
5.2 Marketing Strategy.................................................................................................................11
5.3 Sales Strategy...........................................................................................................................12
5.3.1 Sales Forecast...................................................................................................................12
Table: Sales Forecast.............................................................................................................12
Chart: Sales Monthly..............................................................................................................13
Chart: Sales by Year...............................................................................................................13
5.4 Milestones..................................................................................................................................14
Table: Milestones........................................................................................................................14
Chart: Milestones........................................................................................................................14
6.0 Management Summary.............................................................................................................15
6.1 Personnel Plan..........................................................................................................................15
Table: Personnel..........................................................................................................................15
7.0 Financial Plan................................................................................................................................16
7.1 Start-up Funding......................................................................................................................16
Table: Start-up Funding............................................................................................................17
7.2 Important Assumptions.........................................................................................................17
7.3 Break-even Analysis...............................................................................................................17
Table: Break-even Analysis.....................................................................................................18
Chart: Break-even Analysis.....................................................................................................18
7.4 Projected Profit and Loss......................................................................................................18
Chart: Profit Monthly..................................................................................................................19
Chart: Profit Yearly.....................................................................................................................19
Chart: Gross Margin Monthly..................................................................................................20
Chart: Gross Margin Yearly......................................................................................................20
Table: Profit and Loss................................................................................................................21
7.5 Projected Cash Flow...............................................................................................................21
Page
Table of Contents
Chart: Cash....................................................................................................................................21
Table: Cash Flow.........................................................................................................................22
7.6 Projected Balance Sheet.......................................................................................................23
7.6 Projected Balance Sheet.......................................................................................................23
Table: Balance Sheet.................................................................................................................23
7.7 Business Ratios........................................................................................................................24
7.7 Business Ratios........................................................................................................................24
Table: Ratios.................................................................................................................................24
Table: Sales Forecast...........................................................................................................................1
Table: Personnel....................................................................................................................................2
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...........................................................................................................................6
Page
Garbles Cellular Phones
1.0 Executive Summary
Cellular telephones have revolutionized the communications arena, redefining how we perceive
voice communications. Traditionally, cellular phones remained out of the hands of most
consumers due to their high cost. As a result, cell phone carriers have invested time and
resources into finding ways to give the systems higher capacity and thus lower cost. Cell
systems are benefiting from this research and starting to develop into large-scale consumer
products.
Today, cellular phones are truly consumer electronics devices with over 59 million subscribers.
The Nokia Bowl and Qualcomm Stadium are further evidence of the idea that cell phones are
consumer electronics devices. Cell phones have ceased to be an exclusive status symbol of
high-powered lawyers and are now in the hands of millions of consumers.
Garbles Cellular Phones, Inc. is taking advantage of an opportunity to become a highly

distinguished and recognized leader in the cellular communications industry. It is the goal of our
company to become established as the leading distributor of wireless communications services
in the metro Niceburg area.
In order to achieve this goal, Garbles Cellular Phones' critical success factors will be to identify
emerging trends and integrate them into our company operations, respond quickly to
technology changes/be there early, provide high-quality services, invest time and money in
marketing and advertising, expand into specialty markets, and stay ahead of the "technology
curve."
The company was initially formed as a sole proprietorship by Mr. Seramed Garbles in the East
Atlantic Island Archipelago (EAIA), and succeeded tremendously in that market. Capitalizing on
the growing wireless communications industry and based on their success in EAIA the Garbles
family decided to expand their company's operations to the U.S.A. and create a niche market
for its products and accessories.
Page 1
Chart: Highlights
Highlights
$700,000
$600,000
$500,000
Sales
$400,000
Gross Margin
$300,000 Net Profit
$200,000
$100,000
$0
Year 1 Year 2 Year 3
1.1 Keys to Success
Our company keys to success will include:
1. Provide excellent customer service

2. Grow and maintain a referral network of customers
3. Focus expertise in GSM cellular phones and GSM cellular phone programs
4. Respond rapidly to customer problems with product or plan
1.2 Mission
Garbles Cellular's mission is to offer its customers the highest quality cell phone products and
services. Its owner focuses on personalized service to his customers by offering convenience
and rapid service. Additionally, Garbles Cellular has the technological expertise to assist
customers in picking the product and service that best meets their needs. Finally, our staff will
have strong vendor relationships with the product suppliers and will be able to meet customers'
demand for the newest innovation in cellular phone technology.
We believe it is important to remain an active member of the community, and to impact

people's lives in more ways than deriving a profit from them. We propose to host community
events that bring out the best in people.
Page 2
1.3 Objectives
The company plans to focus on the following target markets that will provide us with the
greatest market penetration: the specialty business users, the general business users, and the
personal users. We intend to offer products and service packages that are priced appropriately
for each segment and will offer the services that best suit each segment's needs.
The suburb of Pleasant Village, picked to be our headquarters' location, is a focal point in the
Niceburg area. Located a few miles south of downtown Niceburg, it is a community with a small
town atmosphere but big city conveniences.
The Metro Niceburg area is populated today by more than 700,000 inhabitants, is home to 13
Fortune 500 and 24 Fortune 1,000 company headquarters. The Metropolitan Niceburg Chamber
of Commerce and corporate executives are committed to actively recruiting new companies to
the region. Public and private partnerships with business, financial and nonprofit communities
are key to spurring quality job creation and investment throughout the city’s neighborhoods.
Our company will center on serving the growing the Niceburg community (presently at a 6% per
year rate) as well as concentrating on the local Pleasant Village population, banking on the
current growing trend of using mobile phones.
Our company will concentrate on selling Global System for Mobile Communications (GSM)
protocol cellular phones - sales, services and support.
Business Objectives
 Company growth
 Become established as the leading distributor of cellular phones and wireless
communications services
 Increase number of retail outlets
Financial Objectives
 Create and increase revenue
Marketing Objectives
 Increase marketing efforts

 Expand market area
 Expand marketing reach
 Brand recognition
 Increase telemarketing efforts
Page 3
2.0 Company Summary
Garbles Cellular Phones, Inc. will offer its customers GSM cellular phones, and cellular phones
accessories.
GSM stands for "Global System for Mobile Communications." GSM is originally a European
system and is largely being adopted today in the United States. Its greatest advantage, a
technical one, is that the owner can use the phone all over the world since the system is used
mostly anywhere.
Market demand drives cell phone manufactures and service providers to offer new and
improved services and functions in their cell phones. The demand for more visual interaction
and entertainment with cell phones in the Japanese market, for instance, is great and as such,
their phones are many years ahead of what we will see in the U.S.A. Phones have definitely
become an important part of people's lives all over the world, whereas in North America many
still view the cell phone as a tool and not as a entertainment device. The average phone in
North America lasts 3-5 years before being replaced, in Japan it is a fraction of this time.
We believe that, with our long and thorough experience in the EAIA, our store will be in the
perfect location to start our operations in the U.S.A., and will start operating in the right time.
Garbles Cellular Phones will provide its customers support and convenience second to none.
2.1 Company Ownership
Garbles Cellular Phones is wholly owned by Mr. Seramed Garbles, who is a citizen of the East
Atlantic Island Archipelago and the owner of Garbles Cellular Phones Ltd in that country.
2.2 Start-up Summary
Mr. Seramed Garbles will invest $43,000 in Garbles Cellular Phones, Inc. He will also invest
an additional $50,000 when operation takes off in April Year 1. The following chart and table
show projected initial start-up costs for Garbles Cellular Phones, Inc.
Page 4
Chart: Start-up
Start-up
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Expenses Assets Investment Loans
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $5,000
Insurance $1,000
Rent $2,000
Equipment $2,000
Other $1,000
Total Start-up Expenses $11,000
Start-up Assets
Cash Required $2,000
Start-up Inventory $30,000
Other Current Assets $0
Long-term Assets $0
Total Assets $32,000
Total Requirements $43,000
Page 5
3.0 Products
The following are the products that will be offered by Garbles Cellular Phones:
 GSM Cellular Phones: Motorola, Nokia, Sharp, Siemens, Samsung, Alcatel, Ericsson,
Fujitsu, Hyundai, LG Electronics, and others.
 Fixed Wireless Phones
 Cellular Phone Accessories: antennas, batteries, belt clips, cables and adapters, cases,
chargers, faceplates, and modems.
4.0 Market Analysis Summary
The market potential is huge for our products, evidenced by what appears to be the
unstoppable growth of the telecom industry. Currently, the telecom industry is among the
strongest growth industries and is responsible for huge gains in the capital markets. The
proliferation of cellular phones is increasing at rates which at one time were unimaginable. One
illustrative example is that it is forecasted that within two years over 65% of children from age
of 10-15 will have cell phones.
Future growth of the market/products is projected in the following areas:
Text messages between friends (in Japan this big). Users can send regular Short-Message
Service (SMS) or email on their phones. Email is of course limited to small file sizes, but many of
the phones allow for English characters to be sent. Each provider also allows special characters
to be sent, such as an array of happy and sad faces, small animated images, animals, people,
hearts, etc. When special characters are not available, people often use a specialized set of
faces to show emotion. Email can also be sent between different provider phones, but many of
the special characters are lost, hence users may try to keep a circle of friends on the same
provider to receive the special characters. Email, of course, may be sent from computers as
well, but files are often stripped of headers and attachments when received on cell phones.
Most North American phones come with a few games to keep people entertained for a limited
duration. Japanese phones come with two different types of games: built-in ones and Java
application ones. The built-in ones are simple, but again the graphics are very important to the
game value. Java application games are delivered via the network to the customer's phone and
there is a charge for this service. These games are much more complex and require streaming
data to access. New games come out monthly. You can even buy joysticks and navigation
consoles that plug into your phone.
One of the recent popular additions to many of the Japanese and Korean phone models is a CCD
Camera that is mounted either on the outside of the clamshell or on the clamshell hinge. The
camera lens is slightly smaller than a dime and takes 4x4 cm pictures to display on the phone's
screen or to send to others. Not only can users take pictures, they can take video clips as well.
Most phones take between 5-15 seconds of footage due to memory limitations, but they can
send streaming video. Many of the advertisements for camera phones show people taking to
each other and watching each other on the screen (both holding the phone and camera at arm's
length and using a hands-free microphone and earpiece). The camera also has a couple of neat
accessories including an external flash that pops into an accessory port and a miniature printer
that will print out pictures.
Our company will try to take advantage of these developments and serve its customers in all
these new trends and developments.
Page 6
4.1 Market Segmentation
Garbles Cellular Phones, Inc. will focus on five customer groups, bearing in mind that it is quite
customary today to have more than one cell phone per family:
 Children in the age group of 10-17 years old

 Students
 General public
 Professionals
 Service organizations and companies that need to be in constant communication with their
employees.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Children 10-17 years old 3% 90,000 92,700 95,481 98,345 101,295 3.00%
Students 2% 50,000 51,000 52,020 53,060 54,121 2.00%
Professionals 2% 40,000 40,800 41,616 42,448 43,297 2.00%
General Public 2% 250,000 255,000 260,100 265,302 270,608 2.00%
Operating Service 4% 40,000 41,600 43,264 44,995 46,795 4.00%
Companies
Other 1% 30,000 30,300 30,603 30,909 31,218 1.00%
Total 2.29% 500,000 511,400 523,084 535,059 547,334 2.29%
Chart: Market Analysis (Pie)
Market Analysis (Pie)
Children 10-17 years old
Students
Professionals
General Public
Operating Service Companies
Other
Page 7
4.2 Industry Analysis
The U.S. market is dominated today by three large companies:
T-Mobile Wireless - owned by a subsidiary of Deutsche Telekom since May 31, 2001.
 Revenues:Exceeding $13.6 billion in 2001.

 Wireless Phone Service Subscribers: Cellular voice, messaging and high-speed wireless data
services to more than 8 million customers.
 Cellular Phone Service and Technology: T-Mobile Wireless operates the largest all digital,
wireless network based exclusively on GSM (Global System for Mobile Communications)
technology. GSM is the most widely used digital standard worldwide, accounting for more
than 70 percent of the total digital wireless market.
Cingular Wireless is the second largest wireless company in the U.S. A leader in mobile voice
and data communications, Cingular is a wireless company determined to promote the individual
to a new level.
 Ownership: Cingular Wireless is a joint venture between the domestic wireless divisions of
SBC (NYSE:SBC) and BellSouth (NYSE: BLS). Headquarters in Atlanta, Georgia. SBC owns 60
percent of the company and BellSouth owns 40 percent, based on the value of the assets
both contributed to the venture.
 Revenue on the cellular service in Year 2002 was more than $14.7 billion.
 Cellular Phone Service Subscribers: more than 22 million voice and data customers across
the U.S.A.
 Cellular Phone Service and Technology: A leader in mobile voice and data communications,
Cingular is the only U.S. wireless carrier to offer Rollover, the wireless plan that lets
customers keep their unused monthly minutes. Cingular provides cellular/PCS service in 43
of the top 50 markets nationwide, and provides corporate e-mail and other advanced data
services through its GPRS and Mobitex packet data networks
Nextel Communications, based in Reston, VA, is a leading provider of fully integrated,

wireless communications services on the largest guaranteed, all-digital, wireless network in the
country.
 Ownership: Nextel Wireless is traded on the NASDAQ National Market under the symbol
NXTL. Nextel Partners is a separate company traded on the NASDAQ National Market.
 Revenue on the cellular service $8.7 billion (2002).
 Cellular Phone Service Subscribers: 10.61 million (Q4 2002).
 Cellular Phone Service and Technology: Nextel uses a packet-based platform, the integrated
Digital Enhanced Network (iDEN™) technology, developed by Motorola. The Nextel 4-in-1
service—Nextel Digital Cellular, Direct ConnectSM, Nextel Mobile Messaging, and Nextel
Online®—covers thousands of communities across the United States. Nextel and Nextel
Partners, Inc., currently serve 197 of the top 200 U.S. markets.
Garbles Cellular Phones is aiming to gather a share of the market from these three.
Page 8
4.2.1 Competition and Buying Patterns
Brand names are of little, if any, importance. The key to the buying decision on the part of the
consumer is the salesman and the cell phone being in front of them. As has been pointed out in
the Competitive Analysis section there are other sellers with similar brand names as those
supplied by Garbles Cellular Phones, Inc. which may even be less expensive. It is essential that
the salesman point out the salient features and selling points favoring our products. Most
importantly, our products must be available in the retail outlet, since whatever products our
store carries are the ones that are going to be sold.
The need to attract, acquire, leverage, and retain customers remains a primary concern to
business. Revenue growth through customer acquisition and retention is as important a
requirement in e-commerce as it is in other business. Customers, especially in the Western
business culture, count speed of service as a key reason why they do business with a company.
They resent delays and hate waiting for service. In the United States, almost 80% of the gross
domestic product (GDP) is generated through different kinds of services, and speed of service
no longer distinguishes an enterprise as providing superior value. Customers generally are not
thrilled if they receive good service, but they are highly dissatisfied if they do not. Garbles
Cellular will provide the necessary framework to cope with these demands by cutting the
waiting time for a service.
Customers also want consistent, reliable, and easy-to-use service. As the speed of service
increases, customer expectations grow, making friendly, easy, and solution-oriented customer
service an important business trend.
Reflective shoppers get some support from e-commerce as well. They like to investigate
products precisely and consciously. However, when browsing costs a lot because of on-line
charges, they do less of it. Consequently, they do not get a holistic view of the available options,
and their expectations often are not met. Reference-spending customers do not let themselves
be hurried or forced. They use alternative offline sources to get information. They refuse
aggressive marketing, which is accepted in Western e-commerce.
Soon, shoppers will simply wave their cell phone over the item they want and the charge will
automatically appear on their cell phone bill. It’s happening in some cities overseas already.
And right now, MasterCard and Motorola are testing out a similar program here in the States.
Retailers have registers that will take the signal from the cell phone, and the purchase is
automatically converted to a MasterCard charge. Buyers don’t have to sign anything. The scary
part is what could happen when people lose their cell phones or have them stolen. There are
lots of technical and legal issues to work out here, but paying wirelessly is going to gain
momentum quickly.
Garbles Cellular is planning to take advantage of these trends of buying patterns. We shall also
be very quick in establishing our own website to take advantage of E-trade.
Page 9
4.3 Target Market Segment Strategy
The market for cellular phones and their accessories is very fragmented, crowded and
competitive. Among these, there are only a few large local firms that serve the entire city of
Niceburg and its surroundings. The remainder are small firms that sell from kiosks in the
surrounding malls. Garbles Cellular Phones current niche in its location, variety of products and
expertise in serving the public will assure the projected sales.
We expect to take full advantage of the trends described in the Market Analysis above, and try
to penetrate the market with new innovations and gadgets — mainly with the younger
generation, using advertisements and demonstrations. We shall also try to lure independent
small sellers to join our effort.
5.0 Strategy and Implementation Summary
Garbles Cellular Phones will use a strategy of total market service. Assumptions:
1. Every person is a potential customer and all our potential markets will experience growth.
2. Marketing to one segment of the population will lead to an expansion in overall market
growth.
The following sections review the various strategies that will support this effort.
5.1 Competitive Edge
The Seramed Communication's competitive edge will be:
Location: Locating the company in a suburb of Niceburg, Homestate enables the company to
cover a large and rapidly developing customer populace.
Customer Service: Mr. Seramed Garbles, owner and CEO of Garbles Cellular Inc., has been
the CEO of the Garbles Cellular Phones Ltd. in the East Atlantic Island Archipelago for many
years past, and accumulated a vast knowledge and experience in the cellular phone market,
with a special expertise in GSM phones. He is very familiar with his target customer base. He
has an excellent reputation for customer service.
E-Commerce: The company will make an effort to enhance its sales through a serious and
advantageous website in order to attract customers that are reluctant to do business with large
companies.
Page 10
5.2 Marketing Strategy
Short-term marketing strategies are those that bring will bring us a temporary boost in traffic.
Although these techniques are very important to our over-all plan, they are only a temporary
traffic source and must not be solely relied upon. Short-term marketing strategies include:
 Purchasing Advertising
 Bulletin Boards
 Search Engines
Long-term marketing strategies are those that will bring us a steady stream of targeted traffic
over time. These strategies will continue to produce results even years down the road. Long-
term marketing strategies include:
 Opt-in Lists
 Freebies
 Content
By creating and implementing a balanced marketing strategy, using both short-term and long-
term strategies, Garbles Cellular will drive a steady stream of targeted traffic to our website.
Using this simple formula when creating our Internet marketing strategy and excelling at all
three, we hope to guarantee our success.
Our short-term marketing strategy will focus heavily on sales promotion, niche positioning in the
market and customer service with loyalty and retention in sales.
Our promotions will always stay in tune with our company objectives and mission statement.
Page 11
5.3 Sales Strategy
Constructing our Sales Strategy we shall follow the following steps:
Sales Success Requires Planning - we shall formulate our sales strategy and tactics to
achieve our sales success.
Analyze Our Potential - we shall step through a structured process that will prepare us for the
development of our sales strategy.
Strategize Around Strengths - the description of our sales activity will be analyzed producing
a report that reveals factors impacting our sales potential.
Develop Our Tactics - we shall receive guidance to develop a comprehensive tactical plan to
achieve our success.
Measure Our Success - we shall constantly develop key measurements that mark the
progress of financial estimates that guide our growth.
Employ An Action Plan for Success - we shall provide our sales force a clear tactical plan
that is also aligned with management's strategic objectives.
The sales strategy of Garbles Cellular Phones is simple. The key to customer satisfaction is
having the product and services that meet the customer's needs. A crucial part of that is to also
have knowledgeable employees to help customers quickly find what they want.
5.3.1 Sales Forecast
Sales forecast displayed here is very conservative — although we aim very high, we decided to
show a very slow growth and revise the plan on a yearly basis. As a rule we expect to expand
the volume much more rapidly.
Table: Sales Forecast
Sales Forecast
Sales
Cellular Phones $138,000 $190,000 $270,000
Cellular Phones Accessories $126,000 $160,000 $200,000
Fixed Wireless Phones $46,500 $60,000 $90,000
Other Sevices $46,500 $90,000 $150,000
Total Sales $357,000 $500,000 $710,000
Direct Cost of Sales Year 1 Year 2 Year 3

Cellular Phones $31,650 $43,560 $61,900
Cellular Phones Accessories $30,450 $41,500 $51,800
Fixed Wireless Phones $11,700 $15,500 $23,300
Other Services $11,710 $23,300 $38,900
Subtotal Direct Cost of Sales $85,510 $123,860 $175,900
Page 12
3 M
2 Month
1 Month
Month
Month
Chart: Sales Monthly
Sales Monthly
$32,000
$28,000
$24,000 Cellular Phones
$20,000 Cellular Phones Accessories

$16,000 Fixed Wireless Phones
$12,000
Other Sevices
$8,000
$4,000
$0
Chart: Sales by Year
Sales by Year
$700,000
$600,000
$500,000
Cellular Phones
Cellular Phones Accessories

$400,000
Fixed Wireless Phones
$300,000
Other Sevices
$200,000
$100,000
$0
Page 13
5.4 Milestones
The Milestones table hereunder is destined to be a working plan for the formation of the new
organization, including legal negotiations, hiring of personnel, rental of the facility, building of
initial inventory, beginning of marketing and start of physical operation.
The team to execute the chores will have to follow up on the timetable and make sure that
everything falls in place — to ensure smooth start of sales and success of the organization.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department

Preview of Business Plan by 1/1/2005 1/15/2005 $1,000 CEO Department
Investor
Concluding Legal Matters 1/10/2005 2/10/2005 $4,000 Owner Department
Hiring of Operators 2/1/2005 3/1/2005 $500 CEO Department
Conclussion of Rentals 1/15/2005 2/15/2005 $2,000 Owner Department
Preparation of Website 1/15/2005 3/1/2005 $2,500 Programmer Department
Acquiring Initial Inventory 2/15/2005 3/15/2005 $31,000 Store Personnel Department
Start of Marketing 3/1/2005 4/1/2005 $0 Marketing Mgr. Department
Start of Operation 4/1/2005 4/10/2005 $2,000 All Department
Totals $43,000
Chart: Milestones
Milestones
Preview of Business Plan by Investor
Concluding Legal Matters
Hiring of Operators
Conclussion of Rentals
Preparation of Website
Acquiring Initial Inventory
Start of Marketing
Start of Operation
Jan `05 Feb Mar Apr
Page 14
6.0 Management Summary
The management of Garbles Cellular Phones, Inc. is made up of the owner, a Marketing
manager (Mr. Nomassu Perozia) and three other members who will be hired locally and will
be added: a Programmer, and two store attendants with one serving at the beginning as
secretary.
6.1 Personnel Plan
The Garbles Cellular Phones' store will operate virtually 24 hours a day 7 days a week. Although
the store opening hours will be officially 10:00 a.m. to 6:00 p.m., it is clear that due to our
Internet operation the customer support will be a non-stop one. The personnel plan, as detailed
in the following table, has been developed to support these hours.
Assumptions regarding personnel have been made for year 1 through year 3 as follows:
Year 1 Ending March, 2006 - Owner, Mr. Seramed Garbles, will draw a salary of $42,000. The
Marketing Manager, Mr. Nomassu Perozia will receive a yearly salary of $26,400. The
programmer will have $21,000 a year plus a percentage of his Internet sales, and the two store
attendants will earn $16,800 each. However, they will divide the total week hours between
them so that only during busy hours will they both be present.
Year 2 Ending March, 2007 - Salaries will be boosted by 10 - 15 percent. Additional staff will
be hired if significant increases in sales warrant.
The same applies to Year 3 Ending March, 2008.
Table: Personnel
Personnel Plan
CEO $42,000 $48,000 $54,000
Marketing Manager $26,400 $28,800 $31,200
Programmer/Office Administrator $21,000 $22,200 $23,400
2 Store Attendantds $33,600 $36,960 $40,000
Other $0 $0 $0
Total People 0 0 0
Total Payroll $123,000 $135,960 $148,600
Page 15
7.0 Financial Plan

It is assumed that the owner's private resources will be sufficient to finance any monthly cash-
flow shortage. However, it would be advisable to establish a bank relationship as soon as
possible. Sales could very well increase at a much sharper rate than assumed in these
conservative projections. Sharper sales will result in a greater need for funds in support of
inventory and receivables. An over-draft line of credit with the bank will be an excellent cushion
to fall back on.
This is considered a very good time to start a new business. The economy is beginning its
trek up, and consumer spending is up. The Commerce Department reported, "Consumers had
increased their spending, the largest advance in nine months."
A shorter learning curve will be brought to the business by the owner due to his extensive
background and in-depth market knowledge. He has a clear understanding of the need to
manage costs and forecast future needs so that the business is not "broadsided" by the
unexpected.
One other component on which the financial plan is based is wise purchases. Finding the right
product, at the right price will enable the business to meet planned margins and maintain
inventory at an attractive level with a high turn rate.
7.1 Start-up Funding
Mr. Seramed Garbles will invest $43,000 in Garbles Cellular Phones, Inc. to cover start-up
costs. He will also invest an additional $50,000 when operation takes off in April 2005. The table
below illustrates funding sources for our start-up costs.
Page 16
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $11,000
Start-up Assets to Fund $32,000
Total Funding Required $43,000
Assets
Non-cash Assets from Start-up $30,000
Cash Requirements from Start-up $2,000
Additional Cash Raised $0
Cash Balance on Starting Date $2,000
Total Assets $32,000
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 $43,000
Investor $0
Additional Investment Requirement $0
Total Planned Investment $43,000
Loss at Start-up (Start-up Expenses) ($11,000)

Total Capital $32,000
Total Capital and Liabilities $32,000
Total Funding $43,000
7.2 Important Assumptions
As a general rule our company will not sell on credit. However for very special cases we might
offer short-term credit against valid assurances. We shall accept cash and checks, Visa,
MasterCard, Discover and American Express, and PayPal on the Internet. All sales paid via credit
cards will be deposited in our business checking account within 48 hours.
7.3 Break-even Analysis
Our break-even analysis is summarized by the following chart and table.
Page 17
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $17,916
Assumptions:
Average Percent Variable Cost 24%
Estimated Monthly Fixed Cost $13,625
Chart: Break-even Analysis
Break-even Analysis
$12,000
$9,000
$6,000
$3,000
$0
($3,000)
($6,000)
($9,000)
($12,000)
$0 $6,000 $12,000 $18,000 $24,000 $30,000

$3,000 $9,000 $15,000 $21,000 $27,000 $33,000
7.4 Projected Profit and Loss
There are many factors to include when determining a projected profit and loss statement,
these are included in the following table.
Page 18
Chart: Profit Monthly
Profit Monthly
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Chart: Profit Yearly
Profit Yearly
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Page 19
Chart: Gross Margin Monthly
Gross Margin Monthly

$24,000
$21,000
$18,000
$15,000
$12,000
$9,000
$6,000
$3,000
$0
Chart: Gross Margin Yearly
Gross Margin Yearly
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Page 20
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $357,000 $500,000 $710,000
Direct Cost of Sales $85,510 $123,860 $175,900
Other Costs of Sales $26,824 $30,000 $45,000
Total Cost of Sales $112,334 $153,860 $220,900
Gross Margin $244,666 $346,140 $489,100

Gross Margin % 68.53% 69.23% 68.89%
Expenses
Payroll $123,000 $135,960 $148,600
Marketing/Promotion $4,500 $10,000 $25,000
Depreciation $0 $0 $0
Rent $24,000 $24,000 $24,000
Insurance $12,000 $12,000 $12,000
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $163,500 $181,960 $209,600
Profit Before Interest and Taxes $81,166 $164,180 $279,500

EBITDA $81,166 $164,180 $279,500
Interest Expense $0 $0 $0
Taxes Incurred $24,350 $49,254 $83,850
Net Profit $56,816 $114,926 $195,650

Net Profit/Sales 15.91% 22.99% 27.56%
7.5 Projected Cash Flow
Our projected cash flow is outlined in the following chart and table.
Chart: Cash
Page 21
MonthMonth
1
Cash
$140,000
$120,000
$100,000
Net Cash Flow
$80,000
Cash Balance
$60,000
$40,000
$20,000
$0
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $357,000 $500,000 $710,000
Subtotal Cash from Operations $357,000 $500,000 $710,000
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 $50,000 $0 $0
Subtotal Cash Received $407,000 $500,000 $710,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending $123,000 $135,960 $148,600
Bill Payments $139,315 $256,158 $364,659
Subtotal Spent on Operations $262,315 $392,118 $513,259
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $262,315 $392,118 $513,259
Net Cash Flow $144,685 $107,882 $196,741

Cash Balance $146,685 $254,566 $451,307
Page 22
7.6 Projected Balance Sheet
The table shows the annual balance sheet results, with a healthy projected increase in net
worth. Detailed monthly projections are in the appendix.
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash $146,685 $254,566 $451,307
Inventory $8,000 $20,694 $28,814
Other Current Assets $0 $0 $0
Total Current Assets $154,685 $275,261 $480,121
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $154,685 $275,261 $480,121
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $15,869 $21,518 $30,729
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $15,869 $21,518 $30,729
Long-term Liabilities $0 $0 $0
Total Liabilities $15,869 $21,518 $30,729
Paid-in Capital $93,000 $93,000 $93,000

Retained Earnings ($11,000) $45,816 $160,742
Earnings $56,816 $114,926 $195,650
Total Capital $138,816 $253,742 $449,392
Total Liabilities and Capital $154,685 $275,261 $480,121
Net Worth $138,816 $253,742 $449,392
Page 23
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 5731.9902, Consumer electronic equipment, nec,
are shown for comparison.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 40.06% 42.00% 5.90%
Percent of Total Assets

Inventory 5.17% 7.52% 6.00% 33.94%
Other Current Assets 0.00% 0.00% 0.00% 26.57%
Total Current Assets 100.00% 100.00% 100.00% 80.73%
Long-term Assets 0.00% 0.00% 0.00% 19.27%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 10.26% 7.82% 6.40% 41.85%

Long-term Liabilities 0.00% 0.00% 0.00% 11.83%
Total Liabilities 10.26% 7.82% 6.40% 53.68%
Net Worth 89.74% 92.18% 93.60% 46.32%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 68.53% 69.23% 68.89% 32.59%
Selling, General & Administrative Expenses 52.62% 46.24% 41.33% 17.11%
Advertising Expenses 0.00% 0.00% 0.00% 2.28%
Profit Before Interest and Taxes 22.74% 32.84% 39.37% 0.85%
Main Ratios
Current 9.75 12.79 15.62 1.73
Quick 9.24 11.83 14.69 0.79
Total Debt to Total Assets 10.26% 7.82% 6.40% 58.93%
Pre-tax Return on Net Worth 58.47% 64.70% 62.20% 2.27%
Pre-tax Return on Assets 52.47% 59.65% 58.21% 5.54%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 15.91% 22.99% 27.56% n.a
Return on Equity 40.93% 45.29% 43.54% n.a
Activity Ratios
Inventory Turnover 8.67 8.63 7.11 n.a
Accounts Payable Turnover 9.78 12.17 12.17 n.a
Payment Days 27 26 26 n.a
Total Asset Turnover 2.31 1.82 1.48 n.a
Debt Ratios
Debt to Net Worth 0.11 0.08 0.07 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $138,816 $253,742 $449,392 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.43 0.55 0.68 n.a
Current Debt/Total Assets 10% 8% 6% n.a
Acid Test 9.24 11.83 14.69 n.a
Sales/Net Worth 2.57 1.97 1.58 n.a
Page 24
Dividend Payout 0.00 0.00 0.00 n.a
Page 25
Appendix
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Cellular Phones 0% $10,000 $10,000 $10,000 $11,000 $11,000 $11,000 $12,000 $12,000 $12,000 $13,000 $13,000 $13,000
Cellular Phones Accessories 0% $9,000 $9,000 $9,000 $10,000 $10,000 $10,000 $11,000 $11,000 $11,000 $12,000 $12,000 $12,000
Fixed Wireless Phones 0% $3,500 $3,500 $3,500 $3,750 $3,750 $3,750 $4,000 $4,000 $4,000 $4,250 $4,250 $4,250
Other Sevices 0% $3,500 $3,500 $3,500 $3,750 $3,750 $3,750 $4,000 $4,000 $4,000 $4,250 $4,250 $4,250
Total Sales $26,000 $26,000 $26,000 $28,500 $28,500 $28,500 $31,000 $31,000 $31,000 $33,500 $33,500 $33,500
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cellular Phones $2,300 $2,300 $2,300 $2,500 $2,500 $2,500 $2,750 $2,750 $2,750 $3,000 $3,000 $3,000
Cellular Phones Accessories $2,250 $2,250 $2,250 $2,400 $2,400 $2,400 $2,600 $2,600 $2,600 $2,900 $2,900 $2,900
Fixed Wireless Phones $900 $900 $900 $950 $950 $950 $1,000 $1,000 $1,000 $1,050 $1,050 $1,050
Other Services $900 $900 $900 $950 $950 $950 $1,000 $1,000 $1,000 $1,060 $1,050 $1,050
Subtotal Direct Cost of Sales $6,350 $6,350 $6,350 $6,800 $6,800 $6,800 $7,350 $7,350 $7,350 $8,010 $8,000 $8,000
Page 1
Appendix
Table: Personnel
Personnel Plan
CEO 0% $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500
Marketing Manager 0% $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200
Programmer/Office Administrator 0% $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750
2 Store Attendantds 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250
Page 2
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $26,000 $26,000 $26,000 $28,500 $28,500 $28,500 $31,000 $31,000 $31,000 $33,500 $33,500 $33,500
Direct Cost of Sales $6,350 $6,350 $6,350 $6,800 $6,800 $6,800 $7,350 $7,350 $7,350 $8,010 $8,000 $8,000
Other Costs of Sales $2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487
Total Cost of Sales $8,350 $8,390 $8,431 $8,922 $8,965 $9,008 $9,602 $9,647 $9,693 $10,400 $10,438 $10,487
Gross Margin $17,650 $17,610 $17,569 $19,578 $19,535 $19,492 $21,398 $21,353 $21,307 $23,100 $23,062 $23,013
Gross Margin % 67.88% 67.73% 67.57% 68.69% 68.54% 68.39% 69.02% 68.88% 68.73% 68.95% 68.84% 68.70%
Expenses
Payroll $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250
Marketing/Promotion $0 $500 $500 $500 $0 $0 $1,000 $0 $1,000 $0 $1,000 $0
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $13,250 $13,750 $13,750 $13,750 $13,250 $13,250 $14,250 $13,250 $14,250 $13,250 $14,250 $13,250
Profit Before Interest and Taxes $4,400 $3,860 $3,819 $5,828 $6,285 $6,242 $7,148 $8,103 $7,057 $9,850 $8,812 $9,763
EBITDA $4,400 $3,860 $3,819 $5,828 $6,285 $6,242 $7,148 $8,103 $7,057 $9,850 $8,812 $9,763
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $1,320 $1,158 $1,146 $1,748 $1,886 $1,873 $2,144 $2,431 $2,117 $2,955 $2,644 $2,929
Net Profit $3,080 $2,702 $2,673 $4,079 $4,400 $4,369 $5,003 $5,672 $4,940 $6,895 $6,168 $6,834
Net Profit/Sales 11.85% 10.39% 10.28% 14.31% 15.44% 15.33% 16.14% 18.30% 15.93% 20.58% 18.41% 20.40%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $26,000 $26,000 $26,000 $28,500 $28,500 $28,500 $31,000 $31,000 $31,000 $33,500 $33,500 $33,500
Subtotal Cash from Operations $26,000 $26,000 $26,000 $28,500 $28,500 $28,500 $31,000 $31,000 $31,000 $33,500 $33,500 $33,500
Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $76,000 $26,000 $26,000 $28,500 $28,500 $28,500 $31,000 $31,000 $31,000 $33,500 $33,500 $33,500
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations

Cash Spending $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250
Bill Payments $211 $6,333 $6,699 $6,836 $10,148 $13,851 $13,961 $16,256 $15,103 $15,850 $17,017 $17,050
Subtotal Spent on Operations $10,461 $16,583 $16,949 $17,086 $20,398 $24,101 $24,211 $26,506 $25,353 $26,100 $27,267 $27,300
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $10,461 $16,583 $16,949 $17,086 $20,398 $24,101 $24,211 $26,506 $25,353 $26,100 $27,267 $27,300
Net Cash Flow $65,539 $9,417 $9,051 $11,414 $8,102 $4,399 $6,789 $4,494 $5,647 $7,400 $6,233 $6,200
Cash Balance $67,539 $76,957 $86,008 $97,421 $105,523 $109,922 $116,710 $121,204 $126,852 $134,251 $140,484 $146,685
Page 4
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet

Assets Starting Balances
Current Assets
Cash $2,000 $67,539 $76,957 $86,008 $97,421 $105,523 $109,922 $116,710 $121,204 $126,852 $134,251 $140,484 $146,685
Inventory $30,000 $23,650 $17,300 $10,950 $6,800 $6,800 $6,800 $7,350 $7,350 $7,350 $8,010 $8,000 $8,000
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $32,000 $91,189 $94,257 $96,958 $104,221 $112,323 $116,722 $124,060 $128,554 $134,202 $142,261 $148,484 $154,685
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $32,000 $91,189 $94,257 $96,958 $104,221 $112,323 $116,722 $124,060 $128,554 $134,202 $142,261 $148,484 $154,685
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $6,109 $6,475 $6,502 $9,687 $13,389 $13,418 $15,753 $14,576 $15,283 $16,448 $16,503 $15,869
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $6,109 $6,475 $6,502 $9,687 $13,389 $13,418 $15,753 $14,576 $15,283 $16,448 $16,503 $15,869
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $6,109 $6,475 $6,502 $9,687 $13,389 $13,418 $15,753 $14,576 $15,283 $16,448 $16,503 $15,869
Paid-in Capital $43,000 $93,000 $93,000 $93,000 $93,000 $93,000 $93,000 $93,000 $93,000 $93,000 $93,000 $93,000 $93,000
Retained Earnings ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000)
Earnings $0 $3,080 $5,782 $8,455 $12,535 $16,934 $21,304 $26,307 $31,979 $36,919 $43,813 $49,982 $56,816
Total Capital $32,000 $85,080 $87,782 $90,455 $94,535 $98,934 $103,304 $108,307 $113,979 $118,919 $125,813 $131,982 $138,816
Total Liabilities and Capital $32,000 $91,189 $94,257 $96,958 $104,221 $112,323 $116,722 $124,060 $128,554 $134,202 $142,261 $148,484 $154,685
Net Worth $32,000 $85,080 $87,782 $90,455 $94,535 $98,934 $103,304 $108,307 $113,979 $118,919 $125,813 $131,982 $138,816
Page 5
Appendix
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Cell Phones Retailer Business Plan

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1.0 Executive Summary......................................................................................................................1

1.0 Executive Summary

Garbles Cellular Phones, Inc. is taking advantage of an opportunity to become a highly

1.1 Keys to Success

Our company keys to success will include:

1. Provide excellent customer service

We believe it is important to remain an active member of the community, and to impact

 Create and increase revenue

 Increase marketing efforts

2.0 Company Summary

2.1 Company Ownership

2.2 Start-up Summary

Total Requirements $43,000

4.0 Market Analysis Summary

Future growth of the market/products is projected in the following areas:

4.1 Market Segmentation

 Children in the age group of 10-17 years old

Table: Market Analysis

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Children 10-17 years old

Operating Service Companies

4.2 Industry Analysis

The U.S. market is dominated today by three large companies:

 Revenues:Exceeding $13.6 billion in 2001.

Nextel Communications, based in Reston, VA, is a leading provider of fully integrated,

4.2.1 Competition and Buying Patterns

4.3 Target Market Segment Strategy

5.0 Strategy and Implementation Summary

5.1 Competitive Edge

The Seramed Communication's competitive edge will be:

5.2 Marketing Strategy

5.3 Sales Strategy

Constructing our Sales Strategy we shall follow the following steps:

5.3.1 Sales Forecast

Table: Sales Forecast

Direct Cost of Sales Year 1 Year 2 Year 3

$24,000 Cellular Phones

$20,000 Cellular Phones Accessories

Chart: Sales by Year

Cellular Phones Accessories

Milestone Start Date End Date Budget Manager Department

Preview of Business Plan by Investor

Concluding Legal Matters

Acquiring Initial Inventory

Jan `05 Feb Mar Apr

6.0 Management Summary

6.1 Personnel Plan

The same applies to Year 3 Ending March, 2008.

Total Payroll $123,000 $135,960 $148,600

7.0 Financial Plan

7.1 Start-up Funding

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) ($11,000)

Total Capital and Liabilities $32,000