Business Plan Hardware Store

[COMPANY NAME] Business Plan

Confidentiality Agreement The undersigned undersigned reader acknowledges acknowledges that the information information provided provided by [COMPAN [COMPAN NAM!" in this business plan is confidential# therefore$ reader agrees not to disclose it without the e%press written permission of [COMPAN NAM!"& 't is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature$ other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to [COMPAN NAM!"& (pon re)uest$ this document is to be immediately returned to [C OMPAN NAM!"&

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Confidentiality Agreement The undersigned undersigned reader acknowledges acknowledges that the information information provided provided by [COMPAN [COMPAN NAM!" in this business plan is confidential# therefore$ reader agrees not to disclose it without the e%press written permission of [COMPAN NAM!"& 't is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature$ other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to [COMPAN NAM!"& (pon re)uest$ this document is to be immediately returned to [C OMPAN NAM!"&

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Table Table of Contents

/&0 !%ecutiv !%ecutive e +ummary +ummary&&&&&&&&& &&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& / Chart1 Chart1 2ighlights&&& 2ighlights&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 3 /&/ Ob4ectives&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3 /&3 Mission&&&&&& Mission&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3 /&5 6eys to +uccess&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&5 3&0 Company +ummary&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&7 3&/ Company Ownership&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&7 3&3 +tart8up +tart8up +ummary& +ummary&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 7 Table1 +tart8up&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&9 Chart1 +tart8up&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&9 5&0 Products&&&& Products&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&: : 7&0 Market Analysis +ummary&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&; 7&/ Market +egmentation&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&; Table1 Market Analysis&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&; Chart1 Market Analysis ,Pie-&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&< 7&3 Target Market +egment +trategy&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&< 7&5 'ndustry 'ndustry Analysis&&&&&& Analysis&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&= &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&= 7&5&/ Competition Competition and >uying >uying Pa Pattern tterns&&&&&&&&&&& s&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& = 9&0 ?eb Plan +ummary&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&/0 9&/ ?ebsite Marketing +trategy&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&/0 9&3 .evelopment @e)uirements&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&/0 :&0 +trategy and 'mplementation +ummary&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&// :&/ +?OT Analysis&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&// :&/&/ +trengths&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&// :&/&3 ?eaknesses&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&/3 :&/&5 Opportunit Opportunities&&&&&& ies&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&/3 /3

Table of Contents

Chart1 >reak8even Analysis&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&/= <&7 Pro4ected Profit and Boss&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&30 Table1 Profit and Boss&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&30 Chart1 Profit Monthly&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3/ Chart1 Profit early&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3/ Chart1 ross Margin Monthly&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&33 Chart1 ross Margin early&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&33 <&9 Pro4ected Cash low&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&35 Table1 Cash low&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&35 Chart1 Cash&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&37 <&: Pro4ected >alance +heet&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&39 Table1 >alance +heet&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&39 <&; >usiness @atios&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3: Table1 @atios&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3: Table1 +ales orecast&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&/ Table1 Personnel&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&3 Table1 Profit and Boss&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&5 Table1 Cash low&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&7 Table1 >alance +heet&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&9

[COMPANY NAME] BUSINESS PLAN 2010

/&0 !%ecutive +ummary [COMPAN NAM!" [NAM!" [A..@!++" [C'T$ +TAT! D'P" Phone1 EEE8EEE8EEEE [!MA'B" [COMPAN NAM!" will be a sole proprietorship owned by [NAM!"& The Company is a start8up as [NAM!" will purchase the rights to the e%isting location for F;9$000& (pon purchase of the rights$ the Company will demolish the e%isting structure and build a new +tate of the Art hardware store& [COMPAN NAM!" will be a standard general hardware store that offers the parts$ material$ and advice to tackle any home repair$ as well as lawn care& The primary focus will be to satisfy the seasonal needs of the areaGs customers& The Company will service the hardware and repair needs of the [CO(NT"$ [CO(NT"$ [CO(NT" and [CO(NT" County households& The Company would like to increase sales in all market segments above with a concentration of growth in sales to homeowners who do their own repairs& The focus of this business plan is to put forth ob4ectives to launch operations$ work efficiently and effectively$ and e%pand internal operations giving the Company the opportunity to grow with sales growth in the surrounding County areas& [COMPAN NAM!" is ready to elevate to the ne%t step& The Company is seeking grant funding in the amount of F:00$000& The grant funding will be used to launch operations including purchasing the e%isting land H business$ construction of a new >uilding and purchasing e)uipment and displays for the store& Additionally$ the Company will purchase the opening inventory$ develop a website and launch an advertising campaign&


Chart1 2ighlights

/&/ Ob4ectives [COMPAN NAM!" has the following ob4ectives& /& Obtain rant funding to purchase an e%isting hardware store and rebuild the retail space& 3& Customer +ervice - ive our customers the highest )uality product and service at a fair competitive price&


/&5 6eys to +uccess The keys to success for [COMPAN NAM!" are1 /& Bocation1 [COMPAN NAM!" will be assuming ownership of an e%isting hardware store& The Company plans to demolish the e%isting building and build a new +tate of the Art hardware store& ?e will have an e%isting base of customers& 3& +easonal Products1 !ach season has it own uni)ue demand on a homeowner& [COMPAN NAM!" will focus on this pattern and bring in local customers by marketing these items at competitive prices& 5& @epairIPro4ect @esource Area1 The first section customers will find when they enter is a repairIpro4ect resource area that they can use to plan repairs or pro4ects& There will be a repairIpro4ect resource person to answer )uestions and direct them to the section of store where the needed products are& 7& 'n8+tore !%pertise1 +tore employees will be knowledgeable in home repairsIpro4ects& 'n addition$ the repairIpro4ect resource area will be used to conduct short trainings and demonstrations in home repair and home pro4ects&


3&0 Company +ummary [COMPAN NAM!" [NAM!" [A..@!++" [C'T$ +TAT! D'P" Phone1 EEE8EEE8EEEE [!MA'B" [COMPAN NAM!" will be a sole proprietorship owned by [NAM!"& The Company is a start8up as [NAM!" will purchase the rights to the e%isting location for F;9$000& (pon purchase of the rights$ the Company will demolish the e%isting structure and build a new +tate of the Art hardware store& [COMPAN NAM!" offers the parts$ material$ and advice to tackle any home repair$ as well as lawn care& The storeGs owner$ [NAM!"$ has worked in the e%isting hardware store helping the current owner and customers& [NAM!" has built a relationship with the e%isting customer base& The current plan for [COMPAN NAM!" is to obtain grant funding in the amount of F:00$000& 3&/ Company Ownership [COMPAN NAM!" will be a sole proprietorship owned /00J by [NAM!"& [NAM!" has been a resident of Tarlton community for over 5: years& 3&3 +tart8up +ummary [COMPAN NAM!" will purchase the e%isting business for F;9$000& As the e%isting structure is in such disrepair$ the Company will consider the purchase price as cost of the land& The following is a detailed cost estimate for construction and start8up e%penses of the facility1


+tart8up costs and initial financing are shown on the following tables and chart& Table1 +tart8up Start-up Re2ui"e%en$s S$a"$-u# E3#enses e4al i!enses 5 Pe"%i$s De%oli$ion o6 E3is$in4 S$"u!$u"e Insu"an!e Si4na4e 7e8si$e O$he" To$al S$a"$-u# E3#enses

S$a"$-u# Asse$s Cash Re2ui"e9 S$a"$-u# Inen$o"; O$he" Cu""en$ Asse$s on4-$e"% Asse$s To$al Asse$s To$al Re2ui"e%en$s Chart1 +tart8up

1(0,000 1&0,000 1(0,000 1*,000 1),000 1),000 1&+,000 1+,000

10,000 10 10 1*)0,000 1+00,000 1++,000


5&0 Products [COMPAN NAM!" will be a standard general hardware store that offers the parts$ material$ and advice to tackle any home repair$ as well as lawn care& The primary focus will be to satisfy the seasonal needs of the areaGs customers& allI?inter1 ?eatheriKation pro4ects& +pring1 ardenIlawn pro4ectsIhome improvement pro4ects& +ummer1 Outdoor building pro4ects&


7&0 Market Analysis +ummary [COMPAN NAM!" storefront will be located in [CO(NT"$ [+TAT!"& [C'T" is a village in [CO(NT" and [CO(NT" counties in the state of [+TAT!"& As of the census of 3000$ there were 3=< people$ /03 households$ and ;9 families residing in the village& [CO(NT" County 8 As of the census of 3000$ there wer e /33$;9= people$ 79$739 households$ and 57$/9= families residing in the county& [CO(NT" County 8 As of the census of 3000$ there were 93$;3; people$ /;$9== households$ and /5$3<; families residing in the county& Additionally$ the Company will advertise to residents of neighboring [CO(NT" and [CO(NT" Counties& [CO(NT" County 8 As of the census of 3000$ there were 3<$37/ people$ /0$<75 households$ and ;$<3< families residing in the county& [CO(NT" County 8 As of the census of 3000$ there were ;5$579 people$ 3;$/5: households$ and /=$/<9 families residing in the county& The Company will serve all of [COMPAN" and launch an advertising campaign to draw customers from [CO(NT"$ [CO(NT"$ [CO(NT" and [CO(NT" Counties& The Company believes that a local hardware store can provide a reasonable selection in the most important product areas$ be competitive in pricing$ and offer the customer a shopping environment that will assure repeat business& 7&/ Market +egmentation [COMPAN NAM!" will focus on three significant customer groups1


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7&3 Target Market +egment +trategy [COMPAN NAM!" will service the hardware and repair needs of the Pickaway and airfield County households& The Company would like to increase sales in all market segments above with a concentration of growth in sales to homeowners who do their own repairs& The Company will start its advertising campaign in [TO?N" and e%pand their territory to include homeowners within a /98mile radius in the neighboring county areas& >ecause [COMPAN NAM!" main focus is on the households in the surrounding County areas$ the Company knows how to meet the specific needs of its customers& Therefore$ the Company will utiliKe the following to reach its target market1 • • • •

.irect Mailer to households and door hangers ?ebsite social marketing Promotions for the store front grand opening Bocal newspaper advertising and press release


?ith no large chain store within a /98mile radius$ [COMPAN NAM!" will advertise and capture the local market&


9&0 ?eb Plan +ummary [COMPAN NAM!" website will be an opportunity to offer current information on service offerings$ company background$ announcements and special discounts& The website will be another method to generate steady business in our area& Currently$ the Company has been in conversation with several persons )ualified to provide an attractive and e%citing web page# however$ the Company hasnGt made a final decision& The Company is only considering web designers that are residents of the [CO(NT" County community& The Company feels very strongly in keeping its funds within the community 9&/ ?ebsite Marketing +trategy Our website will be promoted on all of our marketing materials and during our advertising campaigns& ?e will advertise our site on our business cards as well as in other industry related publications& As numerous studies have documented$ most people buy based on the conversation and recommendations of trusted friends$ family and colleagues& inding the people that influence their peersG decisions where to shop and what to buy has long been viewed as the 2oly rail of marketing& 'ncreasingly$ online social networks are being seen as venues for locating these influencers& The Company plans to tie8into social media sites to e%pand our presence on the web to our targeted customers& 9&3 .evelopment @e)uirements [COMPAN NAM!" will increase its presence on the web by promoting the site during the Advertising Campaigns& The Company plans to tie8into social media sites to e%pand our presence on the web to our targeted customer base&


:&0 +trategy and 'mplementation +ummary [COMPAN NAM!" has clearly defined the target market and has differentiated itself by offering a solid solution to fulfilling its customersG needs& @easonable sales targets have been established with an implementation plan designed to ensure the goals set forth below are achieved& :&/ +?OT Analysis The +?OT analysis aids in displaying the internal strengths and weaknesses that [COMPAN NAM!" must address& 't allows us to e%amine the opportunities presented to the Company as well as potential threats& The companyGs S$"en4$hs will help it to succeed& These strengths are1

Cus$o%e" se"i!e 8 we will give personal service to every customer$ catering our services to our customer needs uali$; 8 the Company will carry the highest )uality product and a range of products that caters to the local market P"i!in4 8 Our Customers will find the highest )uality products at a fair price S$a66 8 riendly and courteous knowledgeable staff to help customers with all of their home repairs +trengths are valuable$ but it is also important to realiKe the eanesses the Company must address& [COMPAN NAM!"Gs main weakness is lacking the funds to launch and grow the business& The Companies strengths will help it capitaliKe on emerging opportunities& These opportunities include$ but are not limited to1 rowing market with a significant percentage of our tar get market still not knowing we e%ist +trategic alliances with other businesses in the community and our vendor partners# offering sources for referrals and 4oint marketing activities to e%tend our reach


:&/&3 ?eaknesses [COMPAN NAM!"Gs weaknesses come from the lack of funding to launch and grow the business& rant funds will be used to purchase the e%isting building and land$ and then build a new +tate of the Art 2ardware store in its place& :&/&5 Opportunities Opportunities for [COMPAN NAM!" include1 /& rowing market with a significant percentage of our target market still not knowing we e%ist 3& +trategic alliances with other businesses in the community and our vendor partners$ offering sources for referrals and 4oint marketing activities to e%tend our reach& 5& !%panding territory in airfield and Pickaway counties :&/&7 Threats The only threats [COMPAN NAM!" have are a lack of funding to open our store front to launch our 2ardware store and the economy& :&3 Competitive !dge [COMPAN NAM!"Gs competitive edge is1  Bocation1 No other large chain within /9 miles of our location& Current hardware store has been in this location for many years&  +easonal Products1 !ach season has it own uni)ue demand on a homeowner& [COMPAN NAM!"


:&7 +ales +trategy The sales strategy of [COMPAN NAM!" is simple&

i"s$$ create a shopping environment that will create confidence in the customer that he or she will get the needed material$ part$ or instructions to get the 4ob done right the first time& Se!on9$ make the store easy to navigate$ so customer can get in and out as )uickly as possible& Thi"9$ know your customerGs seasonal hardware needs and offer it at competitive prices& The Company will utiliKe the following advertising to reach its tar get market1 • • • •

.irect Mailer to households and door hangers ?ebsite social marketing Promotions for the store front grand opening Bocal newspaper advertising and press releases

:&7&/ +ales orecast The sales for 30/0$ 30// and 30/3 are F:0$000 ,Oct$ Nov$ and .ec only-$ F370$000 and F3:7$000$ respectively& The Company is anticipating receiving rant unding in uly 30/0$ and having the new store grand opening in October 30/0& ross Profit will be appro%imately 93J for 30/0$ 30// and 30/3& Table1 +ales orecast Sales Forecast


Chart1 +ales Monthly

Chart1 +ales by ear


:&9 Milestones [COMPAN NAM!" will purchase the e%isting business for F;9$000& As the e%isting structure is in such disrepair$ the Company will consider the purchase price as cost of the land& The following is a detailed cost estimate for construction and start8up e%penses of the facility1

Des!"i#$ion &' (' )' * +' ' ' .' /' &0' &&' &(' &)'

>uilding /0$000 s) ft Band Misc& Permits$ Plans$ etc 'nterior inish Parking Bot H Bighting +helving and .isplays Office !)uipment H urniture +ignage ?eb +ite Creation Opening 'nventory Other !%penses ?orking Capital .emolition of e%isting +tructure TOTA

Table1 Milestones

A%oun$ F390$000 ;9$000 /0$000 50$000 /9$000 50$000 50$000 5$000 5$000 39$000 5=$000 ;0$000 30$000 100,000


;&0 Management +ummary [NAM!" will be /00J owner of [COMPAN NAM!" and is responsible for all operational aspects of the business& [NAM!" will hire an assistant manager in +ept to help plan the grand opening and manage the store& They anticipate hiring two employees during the first si% months of operations& ;&/ Personnel Plan ['N+!@T >'O@AP2 2!@!"

Table1 Personnel Personnel Plan

[NAME] Assis$an$ Man4e" To E%#lo;ees To$al Peo#le To$al Pa;"oll

30/0 F/3$000 F;$300 F;$300 7

1(,*00

30// F37$000 F3/$:00 F3<$<00 7

1*,*00

(0&( 1(,000 1((,000 1(/,*00 * 1,*00


<&0 inancial Plan The current financial plan for [COMPAN NAM!" is to obtain grant funding in the amount of F:00$000& The grant will be used to launch operations including purchasing the e%isting land and business$ construction of a new >uilding and purchasing e)uipment and displays for the store& Additionally$ the Company will purchase the opening inventory$ develop a website and launch an advertising campaign& The following sections of this plan will serve to describe [COMPAN NAM!" financial plan in more detail1 • • • • • •

eneral Assumptions >reak8even Analysis Profit and Boss Cash low >alance +heet @atios

<&/ +tart8up unding [COMPAN NAM!" will contract with a local construction company to build the new store& The demolition of the old structure will be appro%imately F30$000 and to construct a new building will be appro%imately F3=9$000& Additionally$ the Company will need to spend appro%imately F:0$000 for +helving H .isplays and OfficeI+tore !)uipment H urniture&

Table1 +tart8up unding


O$he" Cu""en$ ia8ili$ies in$e"es$-6"eeF To$al ia8ili$ies

10 10

Ca#i$al Planne9 Ines$%en$ One" Ines$o" A99i$ional Ines$%en$ Re2ui"e%en$ To$al Planne9 Ines$%en$

10 100,000 10 100,000

oss a$ S$a"$-u# S$a"$-u# E3#ensesF To$al Ca#i$al

1+,000F 1+(+,000

To$al Ca#i$al an9 ia8ili$ies

1+(+,000

To$al un9in4

100,000

<&3 'mportant Assumptions The table below presents the assumptions used in the financial calculations of this business plan& [COMPAN NAM!" is a +ole Proprietorship owned by [NAM!" and is ta%ed accordingly$ estimated at a 39J ta% rate& The average ross Profit J is estimated to be 93J in 30/0$ 30// and 30/3& .epreciation e%pense is based on the scheduled additions in the Milestones Table& 'nsurance$ utilities and all other e%penses assume a 9J increase due to inflation H other cost variables during


Chart1 >reak8even Analysis


<&7 Pro4ected Profit and Boss [COMPAN NAM!" Pro orma Profit and Boss statement was constructed from a conservative point8of8view$ and is based in large part on cur rent market conditions& The Company will launch operations October 30/0 once the new store is built& The financial statement for 30/0 reflects operations from uly 8 .ecember& The sales for 30/0$ 30// and 30/3 are F:0$000 ,Oct$ Nov H .ec-$ F370$000 and F3:7$000$ respectively& The average ross Profit J is estimated to be 93J in 30/0$ 30// and 30/3& The Company will show a Net Boss for 30/0$ 30// of F/5$==3$ F;$3=9 and a Net Profit for 30/3 of F;0/$ respectively& The Company will show a negative !>'T.A of F=$=:0 in the shortened 30/0 period$ with a positive !>'T.A of F<$<70 in 30// and F/;$0;0 in 30/3& The Operating e%penses as a percentage of sales for this period were ;9J$ 99J and 93J$ respectively& The percentages of the net profit to sales for this period were ,35&53- J$ ,5&07- J and 0&3;J$ respectively& The Operating !%penses and Net Profit to +ales for the 30// and 30/3 period are affected by the opening and internal e%pansion of the Company& Operating !%penses to +ales will continue to decrease in future years as the Company builds a revenue base of customers& Net Profit and Net Profit to +ales Percentage will continue to rise in future years& Table1 Profit and Boss Pro Forma Profit and !oss

Sales Di"e!$ Cos$ o6 Sales O$he" Cos$s o6 Sales To$al Cos$ o6 Sales

30/0 F:0$000 F3<$<00 F0 F3<$<00

30// F370$000 F//9$300 F0 F//9$300

(0&( 1(*,000 1&(,(0 10 1&(,(0

<"oss Ma"4in

F5/$300

F/37$<00

1&),(.0


Ne$ P"o6i$HSales

Chart1 Profit Monthly

Chart1 Profit early

-()')(?

-)'0*?

0'(?


Chart1 ross Margin Monthly

Chart1 ross Margin early


<&9 Pro4ected Cash low [COMPAN NAM!" has applied for a grant of F:00$000& 'n 30/0$ the Company forecast that it will receive F:00$000 in the month of uly& After receipt of the rant unding$ it will use the grant to launch operations including Purchasing the e%isting land H business$ construction of a new >uilding and purchasing e)uipment and displays for the store& Additionally$ the Company will develop a website and launch an advertising campaign& The Company will purchase an opening inventory of F39$000$ shown as Other Current Assets for statement purposes& The company will carry appro%imately F50$000 of inventory for 30// and 30/3$ shown as 'nventory and Other Current Assets for statement purposes& The following table displays [COMPAN NAM!" cash flow and the chart illustrates monthly cash flow in the first year& Monthly cash flow pro4ections are also included in the appendi%& Table1 Cash low Pro Forma "ash Flo# 30/0

30//

(0&(

Cash Re!eie9 Cash 6"o% O#e"a$ions Cash Sales Su8$o$al Cash 6"o% O#e"a$ions A99i$ional Cash Re!eie9 Sales Ta3, GAT, >STH
F:0$000 F:0$000

F370$000 F370$000

1(*,000 1(*,000

F0 F0 F0 F0 F0 F0

F0 F0 F0 F0 F/9$000 F0

10 10 10 10 10 10


Chart1 Cash


<&: Pro4ected >alance +heet [COMPAN NAM!" net worth is F9//$00<$ F905$;/5 and F907$7/7 for 30/0$ 30// and 30/3$ respectively& The Company will be debt free at the end of 30/0 with Total Assets of F935$:07$ F9/;$;alance +heet Pro Forma Balance Sheet 30/0

30//

(0&(

Asse$s Cu""en$ Asse$s Cash Inen$o"; O$he" Cu""en$ Asse$s To$al Cu""en$ Asse$s on4-$e"% Asse$s on4-$e"% Asse$s A!!u%ula$e9 De#"e!ia$ion To$al on4-$e"% Asse$s To$al Asse$s ia8ili$ies an9 Ca#i$al Cu""en$ ia8ili$ies A!!oun$s Pa;a8le

F:;$<5: F7$<00 F39$000 F=;$:5:

F;<$;7< F/=$300 F/0$000 F/0;$=7<

1/(,& 1+,.0. 1(+,000 1&(),+/

F750$000 F7$053 F739$=:< F935$:07

F750$000 F30$/:; F70=$<55 F9/;$;
1*)0,000 1),)0( 1)/),/. 1+&,(

30/0

F/3$9=:

30//

F/7$0:<

(0&(

1&(,.+(


<&; >usiness @atios The table below presents the pro4ected business ratios from the 2ardware +tores Market for businesses with sales below F900$000 as a reference& Table1 @atios $atio Analysis 30/0 Sales <"o$h Pe"!en$ o6 To$al Asse$s Inen$o"; O$he" Cu""en$ Asse$s To$al Cu""en$ Asse$s on4-$e"% Asse$s To$al Asse$s Cu""en$ ia8ili$ies on4-$e"% ia8ili$ies To$al ia8ili$ies Ne$ 7o"$h Pe"!en$ o6 Sales Sales <"oss Ma"4in Sellin4,
n&a&

30//

30/3

In9us$"; P"o6ile -&'+0?

500&00J

/0&00J

0&=3J 7&;;J /<&:9J
5&;/J /&=5J 30&<9J ;=&/9J /00&00J

/&/3J 7&<5J 35&<=J ;:&//J /00&00J

)0'(? (+'0*? ./'0*? &0'/? &00'00?

3&7/J 0&00J 3&7/J =;&9=J

3&;3J 0&00J 3&;3J =;&3
3&7
*.'0? ()'(.? &'/.? (.'0(?

/00&00J 93&00J ;9&53J

/00&00J 93&00J 99&07J

/00&00J 93&00J 9/&;5J

&00'00? )*'.? &/'**?

:&:;J 835&53J

3&90J 85&07J

3&3;J 0&59J

0'(.? )'(0?


i2ui9i$; Ra$ios Ne$ 7o"in4 Ca#i$al In$e"es$ Coe"a4e A99i$ional Ra$ios Asse$s $o Sales Cu""en$ De8$HTo$al Asse$s A!i9 Tes$ SalesHNe$ 7o"$h Dii9en9 Pa;ou$

F<9$070 0&00

F=5$<<0 0&00

F//0$;/: 0&00

n'a n'a

<&;5 3J ;&5; 0&/3 0'00

3&/: 5J :&5/ 0&7< 0'00

/&=: 3J =&/: 0&93 0'00

n'a n'a n'a n'a n'a

Appendix

Table1 +ales orecast Sales Forecast

Sales P"o9u!$ Sales To$al Sales Di"e!$ Cos$ o6 Sales Cos$ o6 Sales Su8$o$al Di"e!$ Cos$ o6 Sales

an

eb

Mar

Apr

May

un

ul

Aug

+ep

Oct

Nov

De!

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

F30$000 F0 F30$000

F30$000 F0 F30$000

1(0,000 10 1(0,000

an F0 F0 10

eb F0 F0 10

Mar F0 F0 10

Apr F0 F0 10

May F0 F0 10

un F0 F0 10

ul F0 F0 10

Aug F0 F0 10

+ep F0 F0 10

Oct F=$:00 F0 1/,00

Nov F=$:00 F0 1/,00

De! 1/,00 10 1/,00

Page 1

Appendix

Table1 Personnel Personnel Plan

[NAME] Assis$an$ Man4e" To E%#lo;ees To$al Peo#le

an F0 F0 F0 0

eb F0 F0 F0 0

Mar F0 F0 F0 0

Apr F0 F0 F0 0

May F0 F0 F0 0

un F0 F0 F0 0

ul F3$000 F0 F0 /

Aug F3$000 F0 F0 /

+ep F3$000 F/$<00 F0 3

Oct F3$000 F/$<00 F3$700 7

Nov F3$000 F/$<00 F3$700 7

De! 1(,000 1&,.00 1(,*00 *

To$al Pa;"oll

10

10

10

10

10

10

1(,000

1(,000

1),.00

1,(00

1,(00

1,(00

Page 2

Appendix

Table1 Profit and Boss Pro Forma Profit and !oss

an F0 F0 F0 F0

eb F0 F0 F0 F0

Mar F0 F0 F0 F0

Apr F0 F0 F0 F0

May F0 F0 F0 F0

un F0 F0 F0 F0

ul F0 F0 F0 F0

Aug F0 F0 F0 F0

+ep F0 F0 F0 F0

Oct F30$000 F=$:00 F0 F=$:00

Nov F30$000 F=$:00 F0 F=$:00

De! 1(0,000 1/,00 10 1/,00

F0 0&00J

F0 0&00J

F0 0&00J

F0 0&00J

F0 0&00J

F0 0&00J

F0 0&00J

F0 0&00J

F0 0&00J

F/0$700 93&00J

F/0$700 93&00J

1&0,*00 +('00?

F0 F0 F0 F0 F0 F0 F0 F0

F0 F0 F0 F0 F0 F0 F0 F0

F0 F0 F0 F0 F0 F0 F0 F0

F0 F0 F0 F0 F0 F0 F0 F0

F0 F0 F0 F0 F0 F0 F0 F0

F0 F0 F0 F0 F0 F0 F0 F0

F3$000 F0 F0 F0 F0 F0 F500 F300

F3$000 F0 F0 F0 F0 F0 F500 F300

F5$<00 F/$000 F0 F0 F0 F0 F9;0 F700

F:$300 F3$000 F/$577 F;00 F900 F500 F=50 F900

F:$300 F900 F/$577 F;00 F900 F500 F=50 F900

1,(00 1+00 1&,)** 100 1+00 1)00 1/)0 1+00

To$al O#e"a$in4 E3#enses

F0

F0

F0

F0

F0

F0

F3$900

F3$900

F9$;;0

F/3$7;7

F/0$=;7

1&0,/*

P"o6i$ Be6o"e In$e"es$ an9 Ta3es EBITDA In$e"es$ E3#ense Ta3es In!u""e9

F0

F0

F0

F0

F0

F0

,F3$900-

,F3$900-

,F9$;;0-

,F3$0;7-

,F9;7-

1+*F

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

F0 F0 F0

,F3$900F0 F0

,F3$900F0 F0

,F9$;;0F0 F0

,F;50F0 F0

F;;0 F0 F0

10 10 10

,F3$9000'00?

,F3$9000'00?

,F9$;;00'00?

,F3$0;7&0')?

Sales Di"e!$ Cos$ o6 Sales O$he" Cos$s o6 Sales To$al Cos$ o6 Sales <"oss Ma"4in <"oss Ma"4in ?

E3#enses Pa;"oll Ma"e$in4HP"o%o$ion De#"e!ia$ion P"o#e"$; Ta3es @$ili$ies Insu"an!e Pa;"oll Ta3es O$he"

Ne$ P"o6i$ Ne$ P"o6i$HSales

/9J

F0 0'00?

F0 0'00?

F0 0'00?

F0 0'00?

F0 0'00?

F0 0'00?

,F9;7('.?

1+*F -('.?

Page 3

Appendix

Table1 Cash low Pro Forma "ash Flo#

an

eb

Mar

Apr

May

un

ul

Aug

+ep

Oct

Nov

De!

F0 F0

F0 F0

F0 F0

F0 F0

F0 F0

F0 F0

F0 F0

F0 F0

F0 F0

F30$000 F30$000

F30$000 F30$000

1(0,000 1(0,000

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F30$000

F30$000

1(0,000

Cash Re!eie9 Cash 6"o% O#e"a$ions Cash Sales Su8$o$al Cash 6"o% O#e"a$ions A99i$ional Cash Re!eie9 Sales Ta3, GAT, >STH
0&00J

Page 4

Appendix Re!eie9 E3#en9i$u"es E3#en9i$u"es 6"o% O#e"a$ions Cash S#en9in4 Bill Pa;%en$s Su8$o$al S#en$ on O#e"a$ions A99i$ional Cash S#en$ Sales Ta3, GAT, >STH
an

eb

Mar

Apr

May

un

ul

Aug

+ep

Oct

Nov

F0

F0

F0

F0

F0

F0

F3$000

F3$000

F5$<00

F:$300

F:$300

F0

F0

F0

F0

F0

F0

F/;

F900

F97=

F3$97=

F/=$/30

1&),0)0

F0

F0

F0

F0

F0

F0

F3$0/;

F3$900

F7$57=

F<$;7=

F39$530

1&/,()0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F39$000

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0 F0

F0 F0

F0 F0

F0 F0

F0 F0

F0 F0

F0 F3$0/;

F0 F3$900

F0 F3=$57=

F0 F<$;7=

F0 F39$530

10 1&/,()0

Ne$ Cash lo Cash Balan!e

F0

F0

F0

F0

F0

F0

,F3$0/;-

,F3$900-

,F3=$57=-

F//$39/

,F9$530-

1/+,000

1/+,000

1/+,000

1/+,000

1/+,000

1/+,000

1/(,/.)

1/0,*.)

1&,&)*

1(,).

1,0

De!

1,(00

10 1,.)

Page 5

Appendix

Table1 >alance +heet Pro Forma Balance Sheet an Asse$s Cu""en$ Asse$s Cash Inen$o"; O$he" Cu""en$ Asse$s To$al Cu""en$ Asse$s on4-$e"% Asse$s on4-$e"% Asse$s A!!u%ula$e9 De#"e!ia$ion To$al on4$e"% Asse$s To$al Asse$s ia8ili$ies an9 Ca#i$al Cu""en$ ia8ili$ies A!!oun$s Pa;a8le O$he" Cu""en$ ia8ili$ies Su8$o$al Cu""en$ ia8ili$ies on4-$e"% ia8ili$ies To$al ia8ili$ies

eb

Mar

Apr

May

un

ul

Aug

+ep

Oct

Nov

De!

+tarting >alances

F=9$000 F0 F0

F=9$000 F0 F0

F=9$000 F0 F0

F=9$000 F0 F0

F=9$000 F0 F0

F=9$000 F0 F0

F=9$000 F0 F0

F=3$=<5 F0 F0

F=0$7<5 F0 F0

F:/$/57 F0 F39$000

F;3$5<: F7$<00 F39$000

F:;$0:: F7$<00 F39$000

1,.) 1*,.00 1(+,000

F=9$000

F=9$000

F=9$000

F=9$000

F=9$000

F=9$000

F=9$000

F=3$=<5

F=0$7<5

F<:$/57

F/03$/<:

F=:$<::

1/,)

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

1*)0,000

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F/$577

F3$:<<

1*,0)(

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F750$000

F73<$:9:

F73;$5/3

1*(+,/.

F939$000

F939$000

F939$000

F939$000

F939$000

F939$000

F939$000

F933$=<5

F930$7<5

F9/:$/57

F950$<73

F937$/;<

1+(),0*

an

eb

Mar

Apr

May

un

ul

Aug

+ep

Oct

Nov

F0

F0

F0

F0

F0

F0

F0

F7<5

F7<5

F/$=07

F/<$:<:

F/3$9=:

1&(,+/

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F7<5

F7<5

F/$=07

F/<$:<:

F/3$9=:

1&(,+/

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

F0

10

F0

F0

F0

F0

F0

F0

F0

F7<5

F7<5

F/$=07

F/<$:<:

F/3$9=:

1&(,+/

De!

Page 6

Business Plan Hardware Store

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