BizPlanIt Sample Business Plan - Retail

8/7/2019 BizPlanIt Sample Business Plan - Retail

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Sample Business Plan:

Retail Store

This Free Sample Business Plan offers insight into

the major sections of a typical business plan.

This sample plan should only be used as a guide.

A business plan for your company will need to be

customized and expanded to your specific

situation and requirements. Happy Planning!

Free Virtual Business Plan: http://www.bizplanit.com/resources/virtual-business-plan.html
http://www.bizplanit.com/resources/virtual-business-plan.htmlhttp://www.bizplanit.com/resources/virtual-business-plan.html


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Home Fashion Statement

Insp ira tion for your Home

CONFIDENTIAL BUSINESS PLAN

Contact

Rob ert Ma thes

Home Fashion Sta teme nt, LLC

(602) 555-5555

[email protected]

www.homefs.biz

The informat ion set fo rth in this do c ume nt inc ludes c onfid ent ial business informa tion of Hom e Fashion

State ment , LLC ("the Com pa ny) and is provided in co nnec tion with a p otent ial transac tion betw een the

Company and one or more accredited investors or lenders, within the meaning of applicable securities laws.


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Home Fashion Sta tement Business Plan

Table of Contents

Section Page

Business Description 3

Store Description 5

Products & Services 6

Store Location 8

Market Overview 9

Marketing & Competition 10

Management & Organization 11

Financial Assumptions 13

Financial Projections 14


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Business Description

BUSINESS OVERVIEW

Home Fashion Statement, LLC (theCompany) is an early stage company that

will own and operate the soon to be opened

Home Fashion Statement (the store) in

Scottsdale, Arizona. The stores intention is to

be a special, high quality, retail store; offering

stylish, unique, yet affordable home

accessories, furnishings, fashion bedding, and

gifts to consumers interested in making their

homes an extension of their individualpersonalities and a refuge from the outside

world.

Home Fashion Statement will cater to upper

and upper middle class consumers who are

disappointed with the big box and mass

retailers of home accessories and furnishings. Robert Mathes, President and co-owner, is a career retailer

who brings over 20 years of experience in management, merchandising, marketing, and store operations to

Home Fashion Statement. Mr. Mathes will be joined by his wife and co-owner, Meg who has enjoyed asuccessful business career.

MISSION STATEMENTThrough the unique merchandising of its products, Home Fashion Statement will inspire customers and show

them how to create a unique home environment that reflects their own individual style.

KEYS TO SUCCESS

The founders believe that they have the right combination of experience, skill and vision to quickly put theCompany on a rapid track for growth and profits. The following factors will contribute to the success of Home

Fashion Statement:

Home Fashion Statement will offer unique items that are not carried by its competitors Home Fashion Statement will present merchandise by lifestyle in a consistent, dramatic, and exciting

way Home Fashion Statement will sell products that provide quality and value to customers while meeting

their needs to express their personal style

Home Fashion Statement will have a cozy and relaxed atmosphere with a staff of professionals whowill provide an unpretentious experience for those who come through its doors No sales pressure will be applied to customers because staff will not work off commission

SHORT TERM GOALSThe company has established the following goals for its first twelve months of operation:


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Business Description

LONG TERM STRATEGIES

During years 2 through 5 of the planning period, Home Fashion Statement intends to implement the followingstrategies:

Toward the later part of year 2 produce the first Home Fashion Statement catalog

In year 3 in-home design services will be introduced

During year 3 expand the store size and introduce new merchandise categories including tabletop

items and larger furniture

Add an e-commerce component to the Companys website

FINANCING OVERVIEWHome Fashion Statement is currently seeking $100,000 in SBA

guaranteed bank financing to be structured as a 1 year,

annually renewable, senior secured, revolving line of credit.

The facilities will be secured by a blanket lien on the

Companys assets as well as a personal guarantee of Mr. and

Mrs. Robert Mathes, the Companys owners. In addition to the

capital from the bank facility, the owners have already

committed $30,000 in fixed assets and will provide an

additional $20,000 in cash simultaneous with receipt of a

commitment letter from the bank. These funds and the cash

flow generated from operations will fund the business for the

foreseeable future. The capital provided by the bank and the

owners will be utilized as follows:

Amount Application of Proceeds

$100,000 Inventory

$20,000 Working Capital

$30,000 Store Fixtures

Financial projections of the Companys performance for the 3 years of the planning period are as follows:

Year 1 Year 2 Year 3

Revenue $445,500 $525,000 $600,000

Gross Profit $222,750 $262,500 $300,000

Net Income $13,902 $26,466 $30,443

Cash Balance $26,902 $46,368 $69,811


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Store Description

STORE OVERVIEW

Home Fashion Statement will be an approximately 1,900 square foot home furnishings and decorativeaccessories store located in Scottsdale, Arizona. The store will offer local residents, visitors, and designers a

unique, high quality presentation of furnishings and gift items for the 21st century southwest home. The store

will incorporate the owners definition of the Arizona lifestyle by offering merchandise that marries western

and contemporary design. All merchandise will be displayed in a dramatic and upscale presentation. Open 7

days a week, the store will be known as a fun, comfortable, warm place for shoppers to browse and buy.

Many of the stores customers will be people who appreciate the right combination of fine things and a good

value.

Operating PhilosophiesAs a family owned and operated establishment, the owners have developed operating philosophies that will

ensure satisfied customers and encourage patrons to return to Home Fashion Statement time and time again.

These philosophies include:

Providing a sophisticated yet relaxed and friendly atmosphere

Professional, knowledgeable, and caring staff but no pressure to buy

Unique and special items not seen elsewhere

Operating DetailsThe store will be open daily from 10:00 am to 9:00 pm Monday through Saturday and 11:00 am to 5:00 pm

on Sundays. It is expected that hours will be extended during the holiday season. In addition to the owners,

the store will have one part-time sales assistant depending upon time of day and day of week. In addition to

providing designer discounts, the store will offer its customers special orders, shipping, exchanges, and

returns. Home Fashion Statement will accept cash, check, travelers check, Visa, Master Card, Discover, and

American Express.


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Products & Services

PRODUCTS OVERVIEW

Home Fashion Statement is focused on selling high quality, stylish home accessories, furnishings, fashionbedding, and gifts to active, middle and upper class homeowners and interior designers. The stores product

mix will be presented in five distinct lifestyle categories:

Origins: primitive, tribal, ethnic, faux fur

Western/ Southwestern: rustic, earth tones, neutral, natural, suede, and leather

Sophisticated: contemporary, modern, minimal, crisp

Old World: elegant, opulent, embellished, crushed velvet

Casual Classics: simple, casual, denim, cotton

To support continued business expansion and growth Home Fashion Statement will firmly establish its product

identity with customers through a focused product assortment during its first year. Additional product

offerings will be expanded and enhanced by broadening the most profitable merchandise categories. This

approach will establish a brand identity while also allowing the store to tailor its assortment to meet the needs

of customers and changing design trends.

PRODUCT CATEGORIESHome Fashion Statement will include merchandise in the following product categories:

Decorative Accessories

This broad category provides many decorative elements to personalize a home. Price points in this group will

range from $10 to $400 and include:

Wall Art (pictures, mirrors, sculptures)

Candles and candle holders

Lamps (table top and floor lamps)

Vases and pots

Statuary and sculpture

Greenery (trees, plants, cacti)

Accent Furniture

Smaller, more unique furniture items used as accents along with special order bed frames comprise the Accent

Furniture merchandise category. Price points in this category range from $50 to $1,100 and include:

Special order bed frames

Trunks, tables, and plant stands

Room dividers and screens

Easels Ottomans and benches

Bath furniture

Home Textiles

This category will be focused on fast turning styles that represent the colors and textures most desired in the

Arizona lifestyle Price points in this category will range from $5 to $500 and include:


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Products & Services

PRODUCT CATEGORIES ( co n t )

Special Occasion Gifts

For unique gift giving occasions, Home Fashion

Statements selection of gift items will allow customers

to express their individuality and the individuality of

their gift recipients. Price points will range from $10 to

$100 and include:

Housewarming gifts

Hostess gifts Executive gifts

Mens gifts

Pet gifts

Candy and gourmet

Games

Personal care

Bath and body products

Seasonal DcorHome Fashion Statements unique seasonal assortment will inspire customers to create an exciting and fun

environment in their homes for entertaining friends and family. Seasonal offerings will focus on key holidays.

Price points in this group will range from $5 to $300 and include:

Special order Christmas trees

Christmas ornaments, trim, and dcor

Fall harvest dcor

Valentines Day gifts

SERVICESTo differentiate Home Fashion Statement from other retailers in the area; the store will offer a variety of

personalized services to enhance the shopping experience, build customer loyalty, and generate business

within the design trade. Services will include:

Corporate Gift Program Discounts for corporate customers and employees

Designer Discount Program Actively pursue the interior design trade offering a 20% designer

discount Preferred Customer Shopping Events Reward preferred customers with special shopping days and

discount purchases on those days

Gift Registry For weddings and other occasions

Holiday Gift Wrapping To be offered in association with local charity

Future Services


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Store Location

LOCATION OVERVIEW

Home Fashion Statement will be located in Scottsdale, Arizona in the Scottsdale SheaEast Plaza next to the Harkins Shea 14 Theatres. The plaza has easy access and

good visibility from the major cross streets of Scottsdale Road and Shea Boulevard

and is an active urban lifestyle strip center offering well established foot traffic.

Surrounding tenants include a movie complex, a health and fitness center, a

coffeehouse, a shoe store, a childrens furniture store, a learning store and several

restaurants, all of which will enhance the number of visitors to Home Fashion

Statement. Shopping at Home Fashion Statement will be easy and convenient due

to the following factors:

High visibility from main streets

Lighted exterior signage

Easy and multiple ingress and egress

Large and well lighted parking

Scottsdale, Arizona calls itself The Wests Most Western Town. The city has a population of over 215,000

according to the Citys website (www.ci.scottsdale.az.us) and covers an area of more than 184 square miles

stretching 31 miles from north to south. Scottsdale is Arizonas fifth most populous city with a median age of

42.1 years and a median household income of almost $62,000. There are 90,669 occupied living units inScottsdale according to the 2000 census, of which 70% are owned and 30% are rented. Housing prices range

from $60,000 to $6+ million with $228,000 being the median price.


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Market Overview

TARGET MARKET

The owners believe that the stores primary target market consists of active, female buyers in the 30 to 45age bracket who believe that the family home is their principle center of influence. Other characteristics that

describe Home Fashion Statements target customers include:

A sense of style

Believes in good value

Requires professional design assistance but does not wish to hire a designer

College educated, married, children

Employed full-time or part-time

Enjoys entertaining at home Family is important

MARKET OVERVIEWHome Fashion Statement will draw its customers from the

Phoenix, Arizona metropolitan area which can be best described

using Maricopa County as a reference. The area is well populated,

affluent, and growing.

More than half of the State of Arizonas population resides inMaricopa County, which includes the cities of Phoenix, Mesa,

Glendale, Scottsdale, Tempe, Chandler, Peoria and Gilbert. This

metropolitan area is the states major center of political and

economic activity. In addition to housing the state capital, the

county is home to a growing high-tech industry; manufacturing

and agricultural industries; 15 institutions of higher learning,

including Arizona State University and the American Graduate

School of International management; various cultural attractions;

major league sports; and Phoenix Sky Harbor International Airport

(the fifth busiest in the world with over 1,300 daily flights).

Today the County measures 9,222 square miles. Individuals or corporations own 29 percent of the land, 5

percent is Indian reservation land, and the balance is owned by various federal, state, county and city

governments and agencies.

Scottsdale Statistics

2002 Population = 3,296,250

2002 Labor Force = 1,670,583

Unemployment Rate = 5.3%

Major Industries = Services, retail trade, manufacturing


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Marketing & Competition

MARKETING & ADVERTISING CAMPAIGN

Home Fashion Statement will position itself as the home furnishings, accessories, and gift store for people whoenjoy the good life and enjoy acquiring things that are distinctive and unique. The Home Fashion Statement

brand will be unpretentious, yet represent the highest quality in the products it offers as well as in the service

it provides. The brand will always represent a warm, friendly place where customers are always welcome to

just stop by and browse. Additionally, the brand will stand for fashion forward, upscale, great selection,

value, and a knowledgeable, helpful staff. Home Fashion Statement will define its brand and create

awareness for the store through the following marketing initiatives:

Regional advertising in magazines such as Phoenix Home & Garden, Scottsdale Life, and others

Limited direct mail to Scottsdale and Paradise Valley zip codes Yellow pages advertising in Scottsdale and Paradise Valley

www.homefs.biz will be an informational website that will provide visitors with a variety of information

including store address, telephone number, email address, map, directions, new items, and articles of

interest

The owners will use the store and signage to create brand awareness

Home Fashion Statement will create customer evangelists through its great selection and service

The store will receive a significant amount of traffic due to its retail location

Home Fashion Statement will market to the Valley interior design community through contacts and

networking

LOCAL COMPETITIVE ESTABLISHMENTSIn the broadest terms any furniture store, big box store, interior design store, or furnishings and accessories

store in the Phoenix, Maricopa County metropolitan area is a potential competitor for Home Fashion

Statement. That notwithstanding, management believes that the stores unique product offerings combined

with its location practically limits competition to the east side of the Valley. Stores with a similar inventory

include:

Competitor Description

Z Gallerie is a unique lifestyle retailer specializing in furnishings

and accessories for the home and office. From the exclusive to the

unusual, Z Gallerie is the place to find an eclectic mix of fun and

fashion. There are three stores in metropolitan Phoenix.

The Great Indoors intends to become more than the leader inhome decorating and remodeling they want to become the place

where people find true convenience, unexpected inspiration, and

genuine affordability. There are two stores in Arizona - Scottsdale

and Chandler.

f d d h d h h f h h ld


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Management & Organization

MANAGEMENT OVERVIEW

Home Fashion Statements founding management team consists of two experienced executives with acomplementary mix of backgrounds, experiences and skills. This is the right team to build the Company now,

and guide it profitably into the future. Relevant skills among management that benefit the Company include:

Extensive knowledge of the retail business

Experienced business people with an in-depth understanding of successful business operations

Multi-task orientated; able to take on heavy workload

Flexible; able to adapt to different circumstances

Understand the importance of consistent, high quality customer service

Robert Mathes P resident, Co-Founder & CEO

Robert Mathes is an experienced retail business manager with over 20 years experience in department and

specialty store operations, who has consistently proven his ability to effect sales growth. As a department

manager at the Steinmart Department stores he grew annual sales volume over 100% at the Concord,

Metrotown, and Southpark stores. During that time he was recognized as the Department Manager of the

Year on three different occasions. While managing the domestics area at the Scottsdale Southwest store,

annual sales increased by 100% over a three-year period. Mr. Mathes has an uncompromising focus on

customer service. His ability to recognize sales trends and fully exploit merchandise opportunities has

consistently produced increased sales, increased profits, and customer loyalty. Mr. Mathes led a team whichfixtured, merchandised, trained associates, and opened 7 new stores throughout the country while with

Homegoods Stores of America. As the store manager of Smith Stores in Paradise Valley he developed

successful relationships with many area interior designers and he will call upon that list of hundreds of

designers to launch The Home Fashion Statement's designer program.

In his capacity of President and CEO, Mr. Mathes will be responsible for all aspects of the stores day-to-day

operations including purchasing, merchandising, marketing, and customer service.

Meg Mathes Co-FounderMeg Mathes is Robert Mathess spouse. She is a graduate of the University of Arizona, Tucson, Arizona where

she earned a business associates degree with emphasis on marketing and merchandising. Mrs. Mathes brings

tremendous organizational and management skills to Home Fashion Statement. Currently, she is the office

manager for Dr. James Johnson in Phoenix. Her responsibilities include all operational aspects of running a

successful business, accounts payable, accounts receivable, insurance billing, risk management, and human

resources. She implemented operational controls that resulted in a 30 percent reduction in operating expenses

and has significantly improved cash flow. Mrs. Mathes demonstrates superior customer service skills when

dealing with suppliers, insurance providers, employees, and patients.

At Home Fashion Statement Mrs. Mathes will be responsible for overseeing financial operations, human

resource administration, and risk management. She will spearhead the effort to contact businesses in the

community to develop sales of gifts for their clients and employees. As an active member of the community

Mrs. Mathes will reach out to clubs and organizations to promote awareness of the store. She will organize

events that will benefit the community and result in sales and exposure for Home Fashion Statement. Her


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Management & Organization

ADDITIONAL STAFFING REQUIREMENTS

In addition to the owners, the store will employ 1 part-time sales assistant who will work 25 hours per week.It is important to note that this employee is an adult with design, fashion and retail experience. The sales

assistant will help customers, answer telephones, gift wrap and handle all credit card and cash transactions.

The assistant will be paid an hourly rate of $10 and receive no benefits.

COMPENSATION P ROGRAMSMr. and Mrs. Mathes will be full-time employees of the store and in addition to annual salaries will have

Company paid health insurance and other benefits commensurate with their positions.

PROFESSIONAL & CONSULTING SERVICE PROVIDERSThe owners have engaged or intend to engage the following professional service providers:

Legal Smith and Buckeye Legal Associates Phoenix, AZ

Accounting Al and Bruce Accounting Associates Phoenix, AZ

Financial Advice & Planning James Lewin, BizPlanIt Companies LLC Scottsdale, AZ

EXTERNAL I SSUES

There are no regulatory issues related to EPA, OSHA, IRS, or other governmental agencies. There are nounions represented at the Company and there is no pending or anticipated litigation.


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Financial Assumptions

REVENUE ASSUMPTIONS

Revenue assumptions are based on the owners projection of revenue growth based on 20 years of homefurnishing retail experience. Revenues are scaled during year one and then flat-lined in subsequent years.

EXPENSE ASSUMPTIONS

Cost of Goods Sold

Cost of Goods Sold is based on the assumption that products will be marked up on an average of 110% and

that after discounts, returns, etc., average cost of goods will be 50 percent of revenues.

Merchant Card ChargesMerchant card fees assume that 85% of all purchases will be made by credit card and that the Company will

pay a 2 percent discount fee.

Compensation Assumptions

Founders Salaries Michael Meg

Year One $50,000 $30,000

Year Two $60,000 $36,000

Year Three $72,000 $43,200Year Four $86,400 $51,840

Year Five $103,680 $62,208

Other Staff # of Employees Salary/ Emp

Year One 1 $12,500

Year Two 1 $13,125

Year Three 1 $13,781

Year Four 1 $14,470

Year Five 1 $15,194

BALANCE SHEET ASSUMPTIONS

Accounts Receivable

Accounts Receivable assumes that 100 percent of all collections occur in the month of the sale.

InventoryManagement has determined that it will carry an average of $100,000 of inventory.

Accounts Payable

Accounts Payable assumes that 100 percent of payables are made in the month they are incurred.


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Financial Projections

BALANCE SHEET 3 YEARS

Year One Year Tw o Year ThreeASSETS

Current AssetsCash 26,902 46,368 69,811Accounts Receivable 0 0 0Inventory 100,000 100,000 100,000

Total Current Assets $126,902 $146,368 $169,811

Prop., Systems & Equipment (net) $30,000 $30,000 $30,000

TOTAL ASSETS $156,902 $176,368 $199,811

LIABILITI ES AND EQUITY

Current LiabilitiesAccounts Payable 0 0 0Line of Credit 100,000 100,000 100,000

Total Current Liabilities $100,000 $100,000 $100,000

Term Loan $0 $0 $0

Total Liabilities $100,000 $100,000 $100,000

Stockholders' EquityCommon Stock 50,000 50,000 50,000Retained Earnings 6,902 26,368 49,811

Total Stockholders' Equity $56,902 $76,368 $99,811

TOTAL LIABILITIES AND EQUITY $156,902 $176,368 $199,811


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INCOME STATEMENT 3 YEARS

Year One Year Two Year Three

REVENUERetail Store 445,500 525,000 600,000

Total Revenues $445,500 $525,000 $600,000

COST OF GOODS SOLD $222,750 $262,500 $300,000

GROSS PROFIT $222,750 $262,500 $300,000

Operating ExpensesWages, Taxes and Benefits 106,375 125,494 148,328Credit Card Charges 7,574 8,925 10,200Rent 55,100 55,100 55,100Professional Services 2,400 2,520 2,646Marketing 10,500 15,750 23,625Insurance 3,000 3,150 3,308

Travel and Entertainment 5,000 5,250 5,513Utilities 5,700 5,985 6,284Automobile 7,200 7,560 7,938Miscellaneous Expenses 6,000 6,300 6,615

Total Operating Expenses $208,849 $236,034 $269,557

NET OPERATING INCOME $13,902 $26,466 $30,4433.12% 5.04% 5.07%

Interest Expense 7,000 7,000 7,000Depreciation 0 0 0

Net Income (Loss) $6,902 $19,466 $23,443Net Income (Loss) % 1.5% 3.7% 3.9%

Retained Earnings, Beg $0 $6,902 $26,368

Retained Earnings, End $6,902 $26,368 $49,811


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CASH FLOW STATEMENT 3 YEARS

Year One Year Two Year Three

CASH INFLOWSCollection of accounts receivable 445,500 525,000 600,000Proceeds from Sale of Stock 20,000 0 0Proceeds from Term Loan 0 0 0Line of Credit - Advances 100,000 0 0

TOTAL CASH INFLOWS $565,500 $525,000 $600,000

CASH OUTFLOWSPayments on accounts payable 208,849 236,034 269,557Payments to purchase equipment 0 0 0Payments to purchase inventory 322,750 262,500 300,000Term Loan - Repayment 0 0 0Line of Credit - Repayment 0 0 0Bank Financing - Interest Payments 7,000 7,000 7,000

TOTAL CASH OUTFLOWS $538,599 $505,534 $576,557

NET CASH FLOWS $26,902 $19,466 $23,443

CASH, BEGINNING OF PERIOD $0 $26,902 $46,368

CASH, END OF PERIOD $26,902 $46,368 $69,811


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BALANCE SHEET YEAR ONE

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

ASSETS

Current Assets

Cash 2,644 4,125 5,750 7,521 9,436 11,497 13,702 16,052 18,547 21,187 23,972 26,902Accounts Receivable 0 0 0 0 0 0 0 0 0 0 0 0Inventory 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

Total Current Assets $102,644 $104,125 $105,750 $107,521 $109,436 $111,497 $113,702 $116,052 $118,547 $121,187 $123,972 $126,902

Prop., Systems & Equipment (net) $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000

TOTAL ASSETS $132,644 $134,125 $135,750 $137,521 $139,436 $141,497 $143,702 $146,052 $148,547 $151,187 $153,972 $156,902

LIABILITIES AND EQUITY

Current LiabilitiesAccounts Payable 0 0 0 0 0 0 0 0 0 0 0 0Line of Credit 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

Total Current Liabilities $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000

Term Loan $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabilities $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000

Stockholders' EquityCommon Stock 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000Retained Earnings (17,356) (15,876) (14,250) (12,479) (10,564) (8,504) (6,298) (3,948) (1,453) 1,187 3,972 6,902

Total Stockholders' Equity $32,644 $34,125 $35,750 $37,521 $39,436 $41,497 $43,702 $46,052 $48,547 $51,187 $53,972 $56,902

TOTAL LIABILITIES AND EQUITY $132,644 $134,125 $135,750 $137,521 $139,436 $141,497 $143,702 $146,052 $148,547 $151,187 $153,972 $156,902


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INCOME STATEMENT YEAR ONE


REVENUERetail Store 0 39,000 39,300 39,600 39,900 40,200 40,500 40,800 41,100 41,400 41,700 42,000

Total Revenues $0 $39,000 $39,300 $39,600 $39,900 $40,200 $40,500 $40,800 $41,100 $41,400 $41,700 $42,000

COST OF GOODS SOLD $0 $19,500 $19,650 $19,800 $19,950 $20,100 $20,250 $20,400 $20,550 $20,700 $20,850 $21,000

GROSS PROFIT $0 $19,500 $19,650 $19,800 $19,950 $20,100 $20,250 $20,400 $20,550 $20,700 $20,850 $21,000

Operating Expenses

Wages, Taxes and Benefits 8,865 8,865 8,865 8,865 8,865 8,865 8,865 8,865 8,865 8,865 8,865 8,865Credit Card Charges 0 663 668 673 678 683 689 694 699 704 709 714Rent 4,592 4,592 4,592 4,592 4,592 4,592 4,592 4,592 4,592 4,592 4,592 4,592

Professional Services 200 200 200 200 200 200 200 200 200 200 200 200Marketing 875 875 875 875 875 875 875 875 875 875 875 875Insurance 250 250 250 250 250 250 250 250 250 250 250 250Travel and Entertainment 417 417 417 417 417 417 417 417 417 417 417 417Utilities 475 475 475 475 475 475 475 475 475 475 475 475Automobile 600 600 600 600 600 600 600 600 600 600 600 600Miscellaneous Expenses 500 500 500 500 500 500 500 500 500 500 500 500

Total Operating Expenses $16,773 $17,436 $17,441 $17,446 $17,451 $17,456 $17,461 $17,467 $17,472 $17,477 $17,482 $17,487

NET OPERATING INCOME ($16,773) $2,064 $2,209 $2,354 $2,499 $2,644 $2,789 $2,933 $3,078 $3,223 $3,368 $3,513

Interest Expense 583 583 583 583 583 583 583 583 583 583 583 583Depreciation 0 0 0 0 0 0 0 0 0 0 0 0

Net Income (Loss) ($17,356) $1,481 $1,626 $1,771 $1,915 $2,060 $2,205 $2,350 $2,495 $2,640 $2,785 $2,930

Net Income (Loss) % N / A 4% 4% 4% 5% 5% 5% 6% 6% 6% 7% 7%

Retained Earnings, Beg $0 ($17,356) ($15,876) ($14,250) ($12,479) ($10,564) ($8,504) ($6,298) ($3,948) ($1,453) $1,187 $3,972

Retained Earnings, End ($17,356) ($15,876) ($14,250) ($12,479) ($10,564) ($8,504) ($6,298) ($3,948) ($1,453) $1,187 $3,972 $6,902


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CASH FLOW STATEMENT YEAR ONE


CASH INFLOWSCollection of accounts receivable 0 39,000 39,300 39,600 39,900 40,200 40,500 40,800 41,100 41,400 41,700 42,000Proceeds from Sale of Stock 20,000 0 0 0 0 0 0 0 0 0 0 0Proceeds from Term Loan 0 0 0 0 0 0 0 0 0 0 0 0Line of Credit - Advances 100,000 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH INFLOWS $120,000 $39,000 $39,300 $39,600 $39,900 $40,200 $40,500 $40,800 $41,100 $41,400 $41,700 $42,000

CASH OUTFLOWSPayments on accounts payable 16,773 17,436 17,441 17,446 17,451 17,456 17,461 17,467 17,472 17,477 17,482 17,487Payments to purchase equipment 0 0 0 0 0 0 0 0 0 0 0 0Payments to purchase inventory 100,000 19,500 19,650 19,800 19,950 20,100 20,250 20,400 20,550 20,700 20,850 21,000Term Loan - Repayment 0 0 0 0 0 0 0 0 0 0 0 0

Line of Credit - Repayment 0 0 0 0 0 0 0 0 0 0 0 0Bank Financing - Interest Payments 583 583 583 583 583 583 583 583 583 583 583 583

TOTAL CASH OUTFLOWS $117,356 $37,519 $37,674 $37,829 $37,985 $38,140 $38,295 $38,450 $38,605 $38,760 $38,915 $39,070

NET CASH FLOWS $2,644 $1,481 $1,626 $1,771 $1,915 $2,060 $2,205 $2,350 $2,495 $2,640 $2,785 $2,930

CASH, BEGINNING OF PERIOD $0 $2,644 $4,125 $5,750 $7,521 $9,436 $11,497 $13,702 $16,052 $18,547 $21,187 $23,972

CASH, END OF PERIOD $2,644 $4,125 $5,750 $7,521 $9,436 $11,497 $13,702 $16,052 $18,547 $21,187 $23,972 $26,902

Documents

BizPlanIt Sample Business Plan - Retail