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Lacy GramboLogan Gray
Increasing trend for people today to go green
Going green can save consumer hundreds of dollars each year
Problem:◦ Many people don’t know where to begin◦ Are not aware of incentives and grants
available◦ Need to do a lot of research, takes a lot of
time
Opportunity
The Solution
All-in-one hardware and building supplies retailer◦ Appliances◦ Electrical & Lighting◦ Plumbing◦ Paint◦ Flooring
Focused on offering ecologically friendly products and service
The Business
Professional advice◦ Renovation options◦ Government grants◦ Tax incentives◦ Financial analysis
Professional installation service Convenience
◦ Location◦ Customer Service
The Business
Future Goals and Expansion Plan:◦ Planning to Franchise in year 5◦ Planning to offer an in store Credit
Program in year 7◦ Ongoing search for expanding
product line
The Business
Capital InvestmentFixed Capital
Land 52,083
Buildings 3,451,323
Furniture & Fixtures 45,000
Vehicles 50,000
Total 3,598,406
Working Cash Flow 162,206
Total Capital Investment 3,760,612
50% Debt Financing: $1,880,306 50% Equity Financing: $1,880,306
Projected Income Statement
For the year ended 2011 2012
Sales 3,850,000 4,123,350
Gross Profit 1,309,000 1,401,939
Total Operating Expenses 943,696 1,050,201
Net Income 365,304 295,116
If the average home was fully upgraded and became energy efficient, they would save at least $900 a year
Projected Income Statement
For the year ended 2011 2012
Sales 3,850,000 4,123,350Percentage of Area Utility Savings 9.5% 10.2%
Gross Profit 1,309,000 1,401,939
Total Operating Expenses 943,696 1,050,201
Net Income 365,304 295,116
Analysis Required ROI: 15% Dividends paid to maintain
$500,000 cash balance
IRR: 30% ERR: 21%
Conclusion High Risk
Medium Return
Feasible◦ Potential for long-term
growth and expansion◦ Requires large
investment◦ The first store of its kind ◦ Meets the growing need
to go green