Business Plan for Fashion&You

8/2/2019 Business Plan for Fashion&You

1/40

Business Plan for Fashionandyou

Harpreet singh,Yogesh singh,Anoopdeep singh,Amandeep sidhu


2/40

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential;therefore, reader agrees not to disclose it without the express written permission of _______________.

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, otherthan information which is in the public domain through other means and that any disclosure or use of same by reader, maycause serious harm or damage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.


3/40

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.3 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

2.0 Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.1 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22.2 Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.3 Company Locations and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

3.0 Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43.1 Product and Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43.2 Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43.3 Sales Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.4 Fulfillment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53.5 Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53.6 Future Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

4.0 Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64.1 Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74.2 Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

4.2.1 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84.2.2 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.2.3 Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

4.3 Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94.3.1 Business Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94.3.2 Distributing a Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Table of Contents


4/40

8.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218.1 Start-up Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

8.2 Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228.3 Key Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228.4 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .228.5 Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248.6 Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268.7 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288.8 Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288.9 Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298.10 Payback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Table of Contents


5/40

1.0 Executive Summary

1.1 Objectives



6/40

Have a freindly relation with employees adopting a informal performance appraisal techniques.

2.0 Company Summary

fashion&you.com, an online personalized merchandise portal. This is an online platform for on-demand unique and creative merchandise where you can personalise almost anything from T-shirts tomugs, watches, coasters, posters, greetings, notepads, calendars, plates, teddy bears, pendants oreven mouse pads.The business office will be located in new delhi but since the business deals inonline shopping therefore the location in new delhi will only be concerned with operations parttherefore the customers have nothing to do at the physical office.The business is new and has a veryvast potential because most of the people love wearing customized stuff and are are more attractedtowards personal customized products.The scenario of today provides least time for the customers toshop in a shopping mall therefore the time demands more of a eshopping.the competitive edge

technology is the printer sublimation technology which provides a high graphic design and moreaccurate designs for customers.the target audience includes youth,college going students,children andcustomers who prefer buying cusomized prducts with low price,the target audience also includes theworking women and housewives which have hobbies of collecting unique products for there home oroffice.

2.1 Company Ownership



7/40

Table: Start-up

Start-up

Requirements

Start-up ExpensesLegal $1,000Stationery etc. $500Insurance $0Rent $2,000Computer $30,000brochures $0leased office euipment $10,000website $10,000consultants $5,000Total Start-up Expenses $58,500

Start-up AssetsCash Required $401,500Other Current Assets $0Long-term Assets $0Total Assets $401,500

Total Requirements $460,000



8/40

3.0 Products and Services

fashion&you.com, an online personalized merchandise portal. This is an online platform for on-demand unique and creative merchandise where you can personalise almost anything from T-shirts tomugs, watches, coasters, posters, greetings, notepads, calendars, plates, teddy bears, pendants oreven mouse pads.

the products and services will be provided to individual customers and large corporate houses.sincethe business of corporate houses deal in bulk therefore we will focus on corporate houses speciallyduring evenst such as sports events,cultural events,the advanatage of corporate houses is that the

large orders provide a huge profit hand on hand a free advertisement.

the products will be delivered directly to the customers from the printing hub place,the dealing ofcourier services tothe customers will be timely monitered by our customer service executives to providethe best of services.the feedback and customer response will be monitered on regular basis and thesmall lacking will be erectified.

3.1 Product and Service Description

fashion&you provides personalise almost anything from T-shirts to mugs, watches, coasters, posters,greetings, notepads, calendars, plates, teddy bears, pendants or even mouse pads.

the cost of products will start as follows-

tshirts-range will start from 500-1500,mugs-200-800,walets-500-1500,coasters-500-1000,posters-100-



9/40

3.3 Sales Literature

The advertisements will be heavily done on social websites such as facebook.com.the personalreferalls is one of the prominent ways to advertise by giving discounts to people or customers who referthe webpage link to friends/family,an additional credits will be added to their account.

The advertisements through newspaper is very expensive and out dated technique and since thebusiness is an e shopping therefore e advertising will be the best option.

the next advertising technique which will be done heavily by having a collateral partnership with famous

online shopping websites which have branded product category and an profit share will be provided tothem.this technique will be for a short period because are new in this industry and we need to gaianpopularity,once the name is established we will be solely using our parent website for customers.

3.4 Fulfillment

There will be no inventory in our business.Since the business online orders,therefore the raw material will be dilvered directly to printing hub fromvendor place.After every 10 days we will place the order to vendor.The quantity of order will be maintained with sync to online orders.

Transport expenses will be incurred by vendor.The Printed final product will be picked up by the courier service directly from the printing hub.The delivery of order to the customers will be maximum 3 to 4 weeks.



10/40

3.6 Future Products and Services

a long term strategy is surley planned in our business since the product is of non perishable nature andmost important thing is that the product is not of fad catefory or a temporary fashion which has a shortlife span,in the near future our motive will be to seek for international orders since the internationalmarket has a high demand for customized products but due to shortage and limited resources and aleast experience exporting outside from home country will not be a great and feasible step.

the new and service lines will brought up by hiring different designerson a contract basis plus thecustomers are free to customise the products accordingto the likings,this has a great advantage for us

because the designs and concecpts which the customers will provide to us will be saved to ourdatabase and time to time the best designs will be displayed on the website,this will help the newcustomers to look at new designs everyday and we will get new and innovative designs free of cost.

A relationship is obviously existing if we take into consideration the market segment and marketdemand becasue the segment(already described in detail) has the highest demand from rest of thepopulation.the need for customized products will remain life long no matter which fashion is on thepeak but the demand for customized products will stay forever,this keeps our business on safe side.

4.0 Market Analysis Summary

The target market includes age group from children from the gae of 10 years to adults upto 55years,the reason for such a large range is beacuse we are providing products ranging from cups toteddy bears including tshirts,posters etc.each product has different target customers for exampleteenagers or youth will be targeted for thirts,girls and womern will be targeted for cups,tedd bears etc.



11/40

4.1 Market Segmentation

The market segment includes the youth ,children,housewives,the product will be specifically targetedfor customers such as thirts,pendants for youth,tedy bears for children,glowing tshirts forchildren,customized mugs,cups,plates,coasters fow housewives or ladies who lovehaving suchproducts at their home.

Table: Market Analysis

Market Analysis2012 2013 2014 2015 2016

Potential Customers Growth CAGRYouth/teenagers 70% 40,000 68,000 115,600 196,520 334,084 70.00%Housewives/wives 45% 20,000 29,000 42,050 60,973 88,411 45.00%children(indirectcustomers-parents)

50% 9,000 13,500 20,250 30,375 45,563 50.00%

Corporate houses 90% 200,000 380,000 722,000 1,371,800 2,606,420 90.00%Total 83.87% 269,000 490,500 899,900 1,659,668 3,074,478 83.87%



12/40

4.2.1 Market Needs

The business which we want to indulge has a high potential because the today scenario has a highvariety of brands which have high cost and the market of customized products declined during the pastbecause of less resources and lack of funds but now with the passage of time,internet has emerged asan major way of communication and doing business,this has decreased the expense part and hand onhand provided a great place to find best resources available.take an example of our business,now wedont have expenses to open a retails tore,to have physical assets,to communicate through physicalmeans,now with the growing of internet technology we have an opportunity to deal in business onlineand and access to our website will be done from each kind of cusomer who has an internet

access,therefore the biggest advantage is maintaining a single store for global customers.

The customized product need has been in demand forever,we can see people prefering customizedproducts more than branded products when it comes to personal choice.

The time to go for shopping exist nowhere for a consumer in todays world scenario therefore peoplehave started showing a trend of buying online,which has a positive forecast for our business,if we canmaintain a higher satisfactory percentage both in case of products as well as services,we have anenormous oppurtunity to banf the top position in the coming years

4.2.2 Market Trends

The factors which are defining the market trend can be cleary seen in the following link-

http://www.forbes.com/sites/lauraheller/2011/04/20/the-future-of-online-shopping-10-trends-to-watch/



13/40

The data clearly depicts the online retail sales growth graph having a positive approach,the period isfrom 2000 to 2009

4.3 Service Business Analysis



14/40

related products more will be attraction of indian people.The western trend in india has emerged uptothe maximum level and now agian people look for traditional customized product whichis not avaialabewith renowned brands,our business will provide these range or products and we can gain competitiveedge in this regard.

4.3.2 Distributing a Service

The company is into direct sales to consumers,both to idividual consumers and corporate houses.Thecourier service will pick the product directly from the printing hub and will deliver the product direct to

the customers,the courier service with whihc we will have a contract will be reputed one and once theorder is shipped to the customer,we will have a regular track to the order until and unless it is deliveredto the customer and the customer is fully satisifed with the product.

The direct sales to customers will decrease cost and the hadnling of product will also be safe.

The manufacturers dont have a direct sales force but we will be directing the courier guys to pick theorder from the place of printing hub rather than adopting a strategy in which the printed final productwill be delivered to our office and then the courier people will pick the product from our office.this

strategy will waste time as well as increase the transporation cost.

4.3.3 Competition and Buying Patterns

The competition in out industry is not high but still the competition exist,as expalined earlier mostpeople shift from one website of online shopping to another becasue the after sales services provided



15/40

The brand is into online business since 2007.

the brand is already established in the online industry.

Myntra.com has a tie up with more than 200 international and national brands.

Weakness-

Least in terms of range of customized products.

The myntra has the largest problem of onlien transactions,20 % of online transactions fail

The customer base is high and therefore the service quality provided has become poor thereforepeople have started shifting to other online portals.

Threat-

The upcoming of new online shopping portals having lower price and more variety of products.

Opportunity-

The opportunity for myntra is to start the business in multi brand retail since they have well establishedname in the market.

5.0 Web Plan Summary

The web plan is the backbone of our business,the business is totally based on online shopping of



16/40

6.1 SWOT Analysis

6.1.1 Strengths

Online shopping is easy and convenient,consumer can purchase products with comfort attheir home inspite of spending time in the different shops.

provide detailed information about the products in depth. Labour-cost saving since hiring of salespersons are not necessary to serve online customers. Different payment options are being offered (i.e. credit card, cash or cheque on delivery). the site has personalized options. Consumers are able to keep track of what they have

recently viewed Value-added features like shopping cart is provided to keep track of the total expenses and

the goods bought The site has personalized options. Consumers are able to keep track of what they have

recently viewed. Feedback can also be given

6.1.2 Weaknesses

The site has to be maintained and updated regularly. Thus a cost is involved. Many are still uncertain and insecure about online shopping. With many Internet frauds

around, consumers may feel threatened when disclosing their personal information or makingany transactions online.

It takes time before the goods are being delivered to the consumers doorsteps.



17/40

6.1.4 Threats

Consumers may enjoy shopping in a physical store the traditional way. New entry of other competitors may also emerge in the near future. The low barriers and the comparatively low overhead costs allow a for a relative easy entry into

the market. This increases the level competition and can cause a reduction in prices and profitmargins. Threats are produced not only by other retailers within the same industry but also bythe manufactures that supply the products that the retailer sells. It is not uncommon for onlineretailers to directly compete with the manufacturer of the lines they carry.

Internet sales only have tax applied to the purchase if the buyer and seller reside in the same

state. Considering the growth and amount of tax revenue lost to e-commerce, the federalgovernment and individual states could write legislation to impose tax on all online sales. Thiswould remove one incentive to conducting business online.

6.2 Strategy Pyramid

6.3 Value Proposition

6.4 Competitive Edge



18/40

visitors to fashion&you site from the online store.

The second strategic move is to provide the best of services to customers and have aregular feedback from customers regarding services,we dont want that the customershould shift from one business to other and to avoid such things,we will focus to buildlong term relationships rather then looking for short term profits,once the name isestablished we will be the top listed online portal companies.

6.5.1 Positioning Statement

For the people who love customized products such as cloths,plates,teddy bears,we will provide you theproduct you want,the way you want.be youself be a designer to your clothes to your home unlike thebranded available limited products available in market where you have few options to choose from.

6.5.2 Pricing Strategy

6.5.3 Promotion Strategy

6.5.4 Distribution Strategy



19/40

a reasonable number of dedicated designs for card faces as well as messages.Specialization in respect to stationery letterhead, name cards, etc. Ad specialtiesneed to be carefully chosen to speak to the chosen industry sector.

6.6 Sales Strategy

The online orders will have a sales strategy in simple and efficient way,once the prodcut is finalized,thecusomer then has the option to continue shopping or proceed to check out,the cotinue shopping willgive the consumer more option to buy products where as the checkout box will tak e the custome r to

the payment option page where the cusomer will have the option of making payment through debitcard,credit card,online banking and last but not the least the latest ales strategy which is being followedis the cash on delivery sales strategy in which the cusomer has the option to paythe price when he orshe gets the products,now the sales strategy whihc will add some additional benefits on the checkoutpage is that once the product is finalized,the consumer will be shown credit points or coupon which willreveal that on next purchase you will get an additional benefir or discount.this will amke the cusomer tobuy more products.

The salespeople will be compensated with additional benefits,if the customer gives a positive respone

about any specific employee,the web designer will be compensated for better and attractive webpageand for the designs whihc will be shown online.

The order processing and database management will be followed strictly since this will give uscompetitive edge in the future,the order processing time will be short as possible,once the product isordered it will be confirmed within 15 mins of order and for database management we will havepersonilzed emails and phone numbers to provide updated iformation for latest products and offerings.



20/40



21/40

6.7 Strategic Alliances

The strategic alliance will be with printing hubs and courier services,the alliance with printing hub willprovide a risk free long term relation and a alliance regarding the quality of the printing material will bedone so that the quality is not compromised on any stage.the next thing is with courier service,sinceevery online company provides products through courier services but they do not indulge themselvesin alliance therefore the realtion with the courier service is not deep rooted but in our business we willhave an alliance with courier service so that we can have more effiecient and effective delivery of ourservices to customers.the tracking of the orders will be doubled checked both by courier service as wellas by our customer care executives,a regular phone call or feed back to customers will be done.

6.8 Milestones

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager DepartmentCorporate identity 10-4-2012 1-5-2012 $0 ABC DepartmentName me 10-4-2012 10-5-2012 $0 ABC DepartmentName me 10-4-2012 10-5-2012 $0 ABC DepartmentName me 10-4-2012 10-5-2012 $0 ABC DepartmentName me 10-4-2012 10-5-2012 $0 ABC DepartmentName me 10-4-2012 10-5-2012 $0 ABC DepartmentName me 10-4-2012 10-5-2012 $0 ABC DepartmentName me 10-4-2012 10-5-2012 $0 ABC DepartmentName me 10-4-2012 10-5-2012 $0 ABC Department



22/40

7.0 Management Summary

in our copany their are 10 employees who serves the company. their are following jobs for theemployees:-

One computer system analystOne web page designerTwo employees for managing transactions and recording orders- placed by the customers.Two employees responsible for placing the printing orders to vendorsTwo employees at the service of customers for redressals and grievances

in the founder team their are four members who have their own departments according to theripreference and interest .

there are following departments assigned to the following members:-

human resource department assigned to Amandeep Singh Sidhu.Finance deparment is assigned to Harpreet Singh Punia.Marketing department is handled by our most experinced member Anoopdeep Singh.

our operation deparment is handeled by yogesh singh sap.

7.1 Organizational Structure

The organisation consist of co/vise president which will deal with the administrative staff and thepresident will look over the co presidents for the different activities assigned to them,there are fourdepartments which include finance distribution development operations each department will be



23/40

Organizational Chart

Anoopdeep singh

President

Yogesh singh sap

Vice President

Harpreet singh

Vice President

Amandeep singh sidhu

Vice President

7.2 Management Team

in our managment team their are four members:-

Anoopdeep singh.

Harpreet singh

Amandeep singh

Yogesh Singh.

Background and exprience of all members:-

Anoopdeep singh



24/40

7.3 Management Team Gaps

At present we believe we have a good team for covering the main points of the business plan. we havespecialist in every department and have experince so all are doing his very efficiently

At present, we are weakest in the area of technical capabilities to manage the database marketingprograms and upgraded service and support, particularly with cross-platform networks. We also needto find a training manager.

7.4 Personnel Plan

In our company there are total 8 empplyees as following:-

marketing directordesigning directordesigners

web administratoroffice managermarketing staffaccountantnow if we talk about the payroll of all thse employees , the salary is providedaccording to there work and duties accomplished to the people



25/40

8.0 Financial Plan

8.1 Start-up Funding

At the time of start of the business ,the expenses are 58500 and assestsamount to 14500 which reveals that our total funds required to start thebusiness are 460000.

Now the total assets of business are 401500 which include cash in hand of401500.

Now if look at the liability side the current borrowing amounts to $0 but ourlong term liabilities are $200000.

The additional investment amounts to $ 260000 and the loss at startup is$58500.

The total funding amount to $460000

Table: Start-up Funding

Start-up Funding



26/40

8.2 Important Assumptions

8.3 Key Financial Indicators



27/40

Table: Break-even Analysis

Break-even Analysis



28/40

8.5 Projected Profit and Loss

Income statement is major part of financial statement of business.

Our projected profit and loss account is prepared by taking sales of 2170000in the starting year of business that is 2013 and will increase in the comingyears that is 2014 and 2015 which is 3000000 and 4300000 respectively.

The projected balance sheet is calculated till the year 2015.

The expenses which include the operating expenses are 902140 where asthe expenses incurred for the year 2014 and 2015 will increase to 1027650and 1172500 respectively, the operating expense includes the rent, sale andmarketing expenses, the maximum increase in expenses has been seen inthe case of pay roll which has increased from the year 2013 to 2015 as531000 to 614000 in the year 2015.

The net profit calculated is $901 for the first

Table: Profit and Loss

Pro Forma Profit and LossFY 2013 FY 2014 FY 2015

Sales $2,170,000 $3,000,000 $4,300,000Direct Costs of Goods $1,249,000 $1,800,000 $2,580,000



29/40



30/40



31/40

Table: Cash Flow

Pro Forma Cash FlowFY 2013 FY 2014 FY 2015

Cash Received

Cash from OperationsCash Sales $2,170,000 $3,000,000 $4,300,000Subtotal Cash from Operations $2,170,000 $3,000,000 $4,300,000

Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $0 $0 $0Subtotal Cash Received $2,170,000 $3,000,000 $4,300,000

Expenditures FY 2013 FY 2014 FY 2015

Expenditures from OperationsCash Spending $531,000 $575,000 $614,000

Bill Payments $1,506,257 $2,255,331 $3,227,109Subtotal Spent on Operations $2,037,257 $2,830,331 $3,841,109

Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of CurrentBorrowing

$0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities PrincipalRepayment

$44,796 $44,796 $44,796

Purchase Other Current Assets $0 $0 $0



32/40

8.7 Projected Balance Sheet

Table: Balance Sheet

Pro Forma Balance SheetFY 2013 FY 2014 FY 2015

Assets

Current AssetsCash $489,447 $614,320 $1,028,416Other Current Assets $0 $0 $0

Total Current Assets $489,447 $614,320 $1,028,416

Long-term AssetsLong-term Assets $0 $0 $0Accumulated Depreciation $0 $0 $0Total Long-term Assets $0 $0 $0Total Assets $489,447 $614,320 $1,028,416

Liabilities and Capital FY 2013 FY 2014 FY 2015

Current Liabilities

Accounts Payable $131,842 $190,163 $271,965Current Borrowing $0 $0 $0Other Current Liabilities $0 $0 $0Subtotal Current Liabilities $131,842 $190,163 $271,965

Long-term Liabilities $155,204 $110,408 $65,612Total Liabilities $287,046 $300,571 $337,577

Paid-in Capital $260,000 $260,000 $260,000Retained Earnings ($58,500) ($57,599) $53,749Earnings $901 $111 349 $377 089



33/40

Table: Ratios

Ratio AnalysisFY 2013 FY 2014 FY 2015 Industry Profile

Sales Growth 0.00% 38.25% 43.33% 5.27%

Percent of Total AssetsOther Current Assets 0.00% 0.00% 0.00% 27.19%Total Current Assets 100.00% 100.00% 100.00% 88.86%Long-term Assets 0.00% 0.00% 0.00% 11.14%Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 26.94% 30.96% 26.45% 39.11%

Long-term Liabilities 31.71% 17.97% 6.38% 8.57%Total Liabilities 58.65% 48.93% 32.82% 47.68%Net Worth 41.35% 51.07% 67.18% 52.32%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 42.44% 40.00% 40.00% 15.22%Selling, General & Administrative Expenses 42.40% 36.29% 31.23% 4.78%Advertising Expenses 0.00% 0.00% 0.00% 1.39%Profit Before Interest and Taxes 0.87% 5.75% 12.73% 1.21%

Main RatiosCurrent 3.71 3.23 3.78 2.04Quick 3.71 3.23 3.78 0.91Total Debt to Total Assets 58.65% 48.93% 32.82% 54.85%Pre-tax Return on Net Worth 0.64% 50.70% 77.98% 3.71%Pre-tax Return on Assets 0.26% 25.89% 52.38% 8.23%

Additional Ratios FY 2013 FY 2014 FY 2015Net Profit Margin 0.04% 3.71% 8.77% n.aReturn on Equity 0.44% 35.49% 54.58% n.a



34/40

Table: Use of Funds

Use of Funds

Use AmountName $0Name $0Name $0Name $0Total $0

8.10 Payback

Table: Payback

Payback

Projected Payback CalculationInvestment FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Investment $500,000Cash Returns by Year $100,000 $100,000 $100,000 $100,000 $100,000Combination as Income Stream ($500,000) $100,000 $100,000 $100,000 $100,000 $100,000Cumulative Net Cash Flow toInvestors

($500,000) ($400,000) ($300,000) ($200,000) ($100,000) $0

Payback Period 5 years



35/40

Academic Version

Appendix

Page 31

A di


36/40

Academic Version

Table: Sales Forecast

Sales ForecastJul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Salesall products 0% $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833

0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Sales $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833

Direct Cost of Sales Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13row1 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Direct Cost of Sales $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083

Appendix

Page 32

Appendix


37/40

Academic Version

Table: Personnel

Personnel PlanJul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

marketing director 0% $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000design director 0% $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000designers 0% $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000web administrator 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000office manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000marketing staff 0% $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0accountant 0% $3,250 $3,250 $3,250 $3,250 $3,250 $3,250 $3,250 $3,250 $3,250 $3,250 $3,250 $3,250Total People 1 1 1 1 1 1 1 1 1 1 1 1

Total Payroll $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250

Appendix

Page 33

Appendix


38/40

Academic Version

Table: Profit and Loss

Pro Forma Profit and LossJul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Sales $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833Direct Costs of Goods $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

- -- -- -- -- --- - -- -- -- -- --- - -- -- -- --- -- -- -- -- --- -- - - -- -- --- -- -- - -- -- -- -- -- - - -- -- -- -- -- - - -- --- -- -- -- - --- -- -- --- - - --- -- -- --- - - -- -- --- -- -- - -- -- --- -- --Cost of Goods Sold $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083 $104,083

Gross Margin $76,750 $76,750 $76,750 $76,750 $76,750 $76,750 $76,750 $76,750 $76,750 $76,750 $76,750 $76,750Gross Margin % 42.44% 42.44% 42.44% 42.44% 42.44% 42.44% 42.44% 42.44% 42.44% 42.44% 42.44% 42.44%

ExpensesPayroll $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales and marketing and other expenses $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083Depriciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000Payroll taxes $6,645 $6,645 $6,645 $6,645 $6,645 $6,645 $6,645 $6,645 $6,645 $6,645 $6,645 $6,645Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Utilities $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

- -- -- -- -- --- - -- -- -- -- --- - -- -- -- --- -- -- -- -- --- -- - - -- -- --- -- -- - -- -- -- -- -- - - -- -- -- -- -- - - -- --- -- -- -- - --- -- -- --- - - --- -- -- --- - - -- -- --- -- -- - -- -- --- -- --Total Operating Expenses $75,178 $75,178 $75,178 $75,178 $75,178 $75,178 $75,178 $75,178 $75,178 $75,178 $75,178 $75,178

Profit Before Interest and Taxes $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572EBITDA $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572 $1,572Interest Expense $1,636 $1,604 $1,573 $1,542 $1,511 $1,480 $1,449 $1,418 $1,387 $1,356 $1,324 $1,293Taxes Incurred ($19) ($10) ($1) $9 $18 $27 $37 $46 $55 $65 $74 $83

Net Profit ($45) ($23) ($1) $21 $42 $64 $86 $108 $129 $151 $173 $195Net Profit/Sales -0.02% -0.01% 0.00% 0.01% 0.02% 0.04% 0.05% 0.06% 0.07% 0.08% 0.10% 0.11%

Appendix

Page 34

Appendix


39/40

Academic Version

Table: Cash Flow

Pro Forma Cash FlowJul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Cash Received

Cash from OperationsCash Sales $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833Subtotal Cash from Operations $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833

Additional Cash ReceivedSales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Cash Received $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833 $180,833

Expenditures Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Expenditures from OperationsCash Spending $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250 $44,250Bill Payments $4,554 $136,627 $136,606 $136,584 $136,562 $136,540 $136,518 $136,497 $136,475 $136,453 $136,431 $136,410Subtotal Spent on Operations $48,804 $180,877 $180,856 $180,834 $180,812 $180,790 $180,768 $180,747 $180,725 $180,703 $180,681 $180,660

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Long-term Liabilities Principal Repayment $3,733 $3,733 $3,733 $3,733 $3,733 $3,733 $3,733 $3,733 $3,733 $3,733 $3,733 $3,733Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Cash Spent $52,537 $184,610 $184,589 $184,567 $184,545 $184,523 $184,501 $184,480 $184,458 $184,436 $184,414 $184,393

Net Cash Flow $128,296 ($3,777) ($3,755) ($3,733) ($3,712) ($3,690) ($3,668) ($3,646) ($3,625) ($3,603) ($3,581) ($3,559)Cash Balance $529,796 $526,019 $522,264 $518,530 $514,819 $511,129 $507,461 $503,814 $500,190 $496,587 $493,006 $489,447

Appendix

Page 35

Appendix


40/40

Academic Version

Table: Balance Sheet

Pro Forma Balance SheetJul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Assets Starting Balances

Current AssetsCash $401,500 $529,796 $526,019 $522,264 $518,530 $514,819 $511,129 $507,461 $503,814 $500,190 $496,587 $493,006 $489,447Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Current Assets $401,500 $529,796 $526,019 $522,264 $518,530 $514,819 $511,129 $507,461 $503,814 $500,190 $496,587 $493,006 $489,447

Long-term AssetsLong-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Assets $401,500 $529,796 $526,019 $522,264 $518,530 $514,819 $511,129 $507,461 $503,814 $500,190 $496,587 $493,006 $489,447

Liabilities and Capital Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Current LiabilitiesAccounts Payable $0 $132,074 $132,053 $132,032 $132,011 $131,990 $131,969 $131,947 $131,926 $131,905 $131,884 $131,863 $131,842Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Current Liabilities $0 $132,074 $132,053 $132,032 $132,011 $131,990 $131,969 $131,947 $131,926 $131,905 $131,884 $131,863 $131,842

Long-term Liabilities $200,000 $196,267 $192,534 $188,801 $185,068 $181,335 $177,602 $173,869 $170,136 $166,403 $162,670 $158,937 $155,204Total Liabilities $200,000 $328,341 $324,587 $320,833 $317,079 $313,325 $309,571 $305,816 $302,062 $298,308 $294,554 $290,800 $287,046

Paid-in Capital $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000 $260,000Retained Earnings ($58,500) ($58,500) ($58,500) ($58,500) ($58,500) ($58,500) ($58,500) ($58,500) ($58,500) ($58,500) ($58,500) ($58,500) ($58,500)Earnings $0 ($45) ($68) ($69) ($48) ($6) $58 $144 $252 $381 $533 $706 $901Total Capital $201,500 $201,455 $201,432 $201,431 $201,452 $201,494 $201,558 $201,644 $201,752 $201,881 $202,033 $202,206 $202,401Total Liabilit ies and Capital $401, 500 $529,796 $526,019 $522,264 $518,530 $514,819 $511,129 $507, 461 $503,814 $500,190 $496,587 $493,006 $489,447

Net Worth $201,500 $201,455 $201,432 $201,431 $201,452 $201,494 $201,558 $201,644 $201,752 $201,881 $202,033 $202,206 $202,401

Appendix

Page 36

Documents

Business Plan for Fashion&You