Tropical Tan is an entrepreneur looking for financing. Tropical Tan is a well-established company with a solid business strategy, a highly skilled management team and ideally located. This business plan will highlight Tropical Tan’s needs, market, sales plan, and financial statements.
Tropical Tan will be located in Chino Hills, CA. This market is home to approximately 160,000 people. The location is in a high traffic strip mall with national chains. The main service offered by the company is tanning booths. Tropical Tan will have six high quality tanning booths and limited retail sales.
This business plan will help you to obtain additional funding of $50,000. This money will be used for inventory purchases, tanning beds, as well as other expenses, as detailed in the Start-up Table.
1.1 Objectives
In Year 1, sales of $380,000 and $425,000 respectively by Year 3
Net Profit greater than 40%
In Year 3, net income exceeds 10% of sales
1.2 Mission
Tropical Tan will provide indoor tanning services of the highest quality to our clients using high-quality beds and tanning accelerators. Tropical Tan will strive to be the best in customer service and stand out from the crowd. All employees will be treated with dignity and provided with special benefits, such as moderate insurance coverage, free tanning, and a company picnic every year. Tropical Tan’s public face is its employees. Their health and goodwill are essential to its success.
1.3 Keys for Success
The location is ‘#8211’ being in a strip mall with high traffic and directly across from a gym.
Convenience is a plus with quick tanbeds. It means that less time is spent in bed and more business hours are possible.
Customer Service ‘#8211′ is a focus on customers’ comfort and needs.
Greens Manicure Service, a residential lawn-care service for suburban middle-class homeowners with larger yards, is a seasonal residential lawn service. Steve’s neighborhood is home to a large number of these people. Steve will leverage his connection to the neighborhood to sign up customers.
Steve will be able to hire one employee each year for the first one. Steve will buy another vehicle, more equipment and hire two additional employees by year 2.
Greens Manicure Service is projected to reach profitability by month seven and will have profits of $10,000 by the end of the third year. From April through November, revenue activity is expected.
1.1 Objectives
The following are the goals for the first 3 years of operation:
To create a service-based business whose primary goal it to exceed customers’ expectations.
Greens Manicure Service to be used in at the most 20 residential homes
To increase our clients’ satisfaction by providing superior service.
You must be able to sustain your home business by generating its own cash flow.
1.2 Mission
Greens Manicure Service’s mission is to provide professional lawn care. Customers are our goal. All else will fall in line if we live by this maxim. Our services will exceed the expectations of our customers.
Load Hog Inc. was formed by John Kowalski (Load Hog), in December 1997. The company is an automotive aftermarket manufacturer that manufactures a revolutionary patented device which transforms ordinary pickup trucks in to full-on dump truck. The innovative pneumatic device, which is almost maintenance-free, is invisible when it is not in use and weighs in at 120 pounds. In New Zealand, in the late 70’’s and early 1980’’s, the pneumatic hoist was invented. It uses the exhaust gases from the vehicle to lift the bed and fill the lifting envelope. Load Hog’s inclusion of an air compressor on-board has eliminated the obvious hazards of the original plan.
Load Hog wants to secure $4,000,000 in staged capital over a 18-month period. This will allow them to run an aggressive public relation and advertising campaign that educates the truck-owning and purchasing public about the Load Hog Program’s capabilities, costs, and availability. These funds will help to fund the initialization for the advertising and public relation plan. It will cost $40,000 for its first phase. The remaining funding from the first phase will be used to support additional staff members (Sales Manager), inventory and manufacturing equipment, as well as continuing operations.
Phase I: $175,000 This phase has been accomplished with debt capital and has been committed and closed.
Phase II: $200,000 The second phase will be completed with additional debt and is already committed.
Phase III & IV: $1 million/$17 million. These phases can be done with both debt and equity. These funds will be used to continue marketing and sales efforts, increase sales staff, continue operations expansion through the purchase of capital equipment, expand manufacturing operations and provide working capital to meet the increasing demand. As reflected in the attached**, Ford’s recent commitment to include Load Hog as part of the Super Duty Dealer Ordering Guide 2002 will help boost our revenues.
The purpose for the phased approach in funding is to allow an organization to integrate new business and grow at a structured and controlled pace. Each phase of the growth strategy is designed to be followed in a sequential order. If a single investor is interested, each element can be pursued individually or grouped together as a longer-term deal. The addition of a sales manager allows the president and current staff to quickly respond to potential investors. It also helps to improve assembly, procurement operations, engineering upgrades, product development, and other aspects.
**Appendix are not available for the sample plan.
1.1 Keys to Success
The company’s further success will depend on the following factors:
Securing financing for product development and marketing.
Name recognition.
Stabilizing OEM relationships and building the distribution system.
Management of the supply chain to ensure consistent component sourcing
1.2 Mission
Load Hog’s mission is to teach truck owners how to make the most of their vehicle. Strategically, we have positioned ourselves at the top of the quality pyramid featuring a combination of superb technology, extraordinary customer service, and an almost fanatic attention to quality assurance. Our strategy is based on continued research and development of our existing product, as well expanding our offering to satisfy customer demand and expand our market. We will be supported in this growth by our field force, advertising, public relations, and our growing e-commerce effort. We will keep our presence at all levels of trade shows, including regional, national and local.
1.3 Objectives
Load Hog has a single facility in Aliquippa that includes 1,200 square feet office space and 8,600 feet of manufacturing/ assembly space. The current plant is adequate. However, as we ramp up, there will be ample office space and manufacturing spaces within walking distance.
Washington State does not have enough coffee shops to offer quality coffee or freshly baked pastries for those with higher incomes.
Solution
JJB offers a broad range of coffee and espresso products, all from high quality imported coffee beans. JJB provides coffee and espresso products that are tailored to each customer’s needs.
Market
Washington’s cool climate makes hot coffee products very popular. Iced coffee products and hot coffee products are both in great demand during the warm four months. A lot of the day’s activity happens before ten a.m. with a steady flow throughout the day.
Concurrence
Local competition is limited and doesn’t offer nearly the same product quality or customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They want a memorable, elegant experience.
Why Us
JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation.
Expectations
Forecast
JJB forecasts its sales in the three years following the plan. JJB expects to break even within the fourth month, as it increases its sales steadily. Profits for this time period are expected to be relatively low in the first two years, increasing somewhat in the third. The founders will invest $140,000.
Financial Highlights Year-by-Year
Financing is Required
Startup requirements:
Startup expenses of $64K include $3K legal, $20K premises renovations, $40K expensed equipment and $1K other. These are deducted from the initial balance as a negative retained earnings because they were incurred after launch.
Cash in the bank as a deposit of $70K (in initial balance)
Additional assets in the current of $12K (in an initial balance).
Long-term assets in the range of $65 (initial balance)
Finance
$110K initial investment from founders (Shows up in initial balance as Paid-in Capital.)
SBA 100K 10-year loan in initial balance
$1K in accounts payable at startup. (in initial balance)
Third Degree I.D. A limited-liability corporation (LLC), located in Savannah Georgia, with three founding members. The company develops, markets, and distributes instructional products and services to the corporate, education and government e-learning sectors. It is committed towards high quality instructional design, educational new media development, as well as providing a core deliverable, which includes programs, courses, learning objects, and other products for distance education and distributed learning markets.
It uses an object-oriented design method that produces flexible, scalable and reusable content. This supports clients with rich, targeted solutions that can be easily replicated and maintained. It seeks a balanced client portfolio from different industry sectors. The company plans to mitigate business fluctuations through a appropriate number of local, national and international clients.
Third Degree I.D. Third Degree I.D. builds strategic relationships and its business on returning customers and an accumulation educational content that can easily be re-purposed.
Three founding partners founded Third Degree I.D. They will each invest $35,000 to the company and are seeking a $30,000 additional loan over two years to complete the start up funding. Roughly $19,000 of this initial funding is required for start-up expenses and assets; the remainder will provide a cash basis for the initial year of operations, during which Third Degree I.D. Influential clients will receive some at-cost work in exchange for a solid reputation. This reputation serves as the basis for sales and marketing strategies.
Our market research shows that the $360,000 target for first year sales is conservative for a start-up educational technology company. Based on comparable businesses within the same industry, growth estimates for years 2 and 3 will be different.
1.1 Objectives
Key objectives for Third Degree I.D. These are the main objectives for the Third Degree I.D.
Licenses are required to establish a legal entity.
Complete business planning and pursue funding–via venture capital, bank loans, grants, and contracts.
Establish a web presence. List your products and services on industry-relevant sites and publications.
Six to eight clients may contract for consulting, training, design, or development work in a suitable scope ($50,000 and more).
1.2 Mission
Third Degree I.D. Instructs in corporate, education, government, or healthcare e-learning. It offers cost-effective and flexible solutions that are both progressive and flexible to e-learning and instructional design needs. Its primary goal is client satisfaction. The company operates as a for-profit entity and creates an environment that is fair and productive for all its owners, employees, or contractors.
1.3 Keys To Success
Success is dependent upon:
persistent and creative client development efforts
High quality products and exceptional service
Processes for developing software that are efficient and cost-effective.
Management with expertise and a knowledgeable staff
Botswana has increasing number of entrepreneurs and competition amongst existing companies which presents an increased demand for market information and services. For companies to be ahead of their competitors, they need market research.
Solution
Palms and Bonds is located in Botswana and provides the expertise needed by a proactive-oriented and opportunity-seeking company to develop and enter new markets and product distribution. We aim to provide a wide range of services to the business community as also to the general public. These services can be summarized in two main areas: Business and Training Services. You can choose to use our business services for marketing research, market research reports and project-based consulting. We also offer plan consulting and writing as well as high-level retainer consultancy and company registration. We offer training services that include seminars and workshops on topics such as sales and marketing. In-house training is also available for secretaries, receptionists, sales and marketing personnel.
Market
Our target markets are more open to the idea of high-quality business consultancy services and low-quality ones. This is a good trend as it represents our target markets and thus offers us a lot of opportunity. A growing number of people are now more aware of the value of quality information. They also appreciate concise, clear business and market plans.
A second trend is to more heavily use specialized and focused consultants instead of internal resources. Companies are increasingly looking to outsource (but few companies offer this service). They also favor variable costs over fixed ones.
Competition
Gaborone is home to many companies that call themselves ‘business consultants’. These companies are primarily bookkeeping and secretarial service companies, according to those who have contacted them. There are some companies that provide services similar to those offered by us and that is good, but none of them specialize in market/marketing research. These are some of our major competitors:
Why Us?
Palms and Bonds can provide clients with high quality, reliable information and proposals to help them develop their business, increase market share, and create new channels. Our clients have access to a wide range of contacts and a lot more experience than in-house resources. We are able to offer you a true alternative. Palms and Bonds is able to offer complete solutions to clients’ problems which will encourage business development. Palms and Bonds are a better, more professional, and less risky option than working entirely in-house. Palms and Bonds have to be able and willing to pay a fair and reasonable price for their services and offer a better service to their clients. The development of local markets clients will be the primary focus.
Expectations
Forecast
Below is a table that shows the three-year sales projections. The table below shows that as we gain market reputation and establish ourselves on the marketplace, sales are expected to rise faster than in the initial year.
The following financial projections are available in Botswanan Pula, (P).
Financial Highlights for the Year
Financing Needed
The total investment will be $70,000. Each co-founder will invest $35,000. Total start-up capital, expenses and legal costs (including logo design, stationary and related expenses) were approximately $49,000. Additional $20,000. of start-up capital was needed to cover personal computers, vehicles, office furnishings, and other office equipment.
Cutting Edge Drapery, a well-established decorators’#8217’ workroom, is now available. The company manufactures draperies and slip covers in line with interior designers’ ideas. Cutting Edge Drapery just expanded its production capacity and is well-positioned for marketing its workroom production to clients beyond its current client base. The company is committed in providing top quality workmanship, meeting all agreed delivery dates, and executing custom-made work exactly according to the designer’s idea. The focus of this business plan is to identify its future target clients, explain its marketing strategy, and to improve its internal procedures so it can substantially increase profitability.
The Company
Cutting Edge Drapery, Loudon, New Hampshire. Soft window treatments make up the majority of the company’8217;s production. Soft window treatments account for approximately $2.7 Million in the total market. The disposable income of designers and decorators directly correlates to the market share.
The company is a sole proprietorship and has been operating for nearly 25 years. The owner worked out of her home as a seamstress and tailor until her business volume caused her to move her operation into rented space in Loudon. This expanded space allowed her to concentrate more on draperies and window treatments. The 2,200 square foot office houses seven full-time employees. An assistant was recently hired to handle the administrative duties and improve the company’s internal processes. A new outside accountant, who is streamlining computerized accounts, has been hired.
The Products
Cutting Edge Drapery can provide sewing services to create high quality soft windows treatment products such draperies.
Although the company could be considered a company making products, because clients furnish the fabric for each custom crafted unit, it actually only provides the sewing and installation services to its customers. Because the company does NOT have to purchase fabric directly, there is a relatively low sourcing cost.
Market
The population of 17 communities located near Cutting Edge Drapery has been estimated at 277.253. This would indicate that the area has a soft window treatment market worth more than $2.7 million annually. All treatments must be made in decorator workrooms. The company holds approximately 7.5% of this nearby market.
The company is moving from the current market of interior decorator customers to the higher end market for interior designers. This will increase profitability as the designer market is less price sensitive and offers higher margins. The designer’s clients include the high income homeowners that demand unique products and a high degree of customer service. Cutting Edge Drapery is able to provide the best service for this clientele.
To enter the interior designer-controlled market share in window treatment. It is the company’s goal to market the 15 targeted members of American Society of Interior Designers within the next 12 months and establish a business partnership with at least three of these designers. This number will increase to five within the second year, and seven in the third. The company faces significant competition from existing workrooms within the local area. Cutting Edge Drapery’s strategy is to lift its image, through advertising in prestigious trade publications, joining and net-working ASID membership, and actively marketing its selected target market.
Financial Considerations
Strong profits will be achieved by implementing the marketing research and a tailored marketing strategy as described in this business plan. The local soft window treatment market will account for 11% of revenues by 2000, according to estimates.
Monthly break-even can be achieved.
The total production was about 98 units at the time this article was written. It will increase to approximately 115 units by 2000.
It is the policy for the company’s clients to supply the fabric needed for soft window treatment products. Therefore, the company has very low costs of goods sold and a high gross profit. A custom business model means that inventory costs are low and accounts payable are low. The company doesn’t have any long-term capital assets or debt that could impact cash flow. It is likely that this asset will be used by the company to expand its markets, production capacity, and capital assets in the future.
1.1 Objectives
To be able to penetrate the interior-designer-controlled share of market for window treatments (Designer being key here, rather than Decorator). It is the company’s goal to market the 15 targeted members of American Society of Interior Designers within the next 12 months and to establish a business partnership with at least three of these designers. In the second year, this number will increase to five and seven respectively.
To significantly increase profitability. The formalization of pricing will allow price-sensitive jobs that are not in our market to be moved elsewhere. This will allow us to concentrate on higher-end custom work that is less expensive for the less price sensitive designer market. These pricing options will ensure a minimum $65,000 in pretax profits in the first year.
To improve and streamline the administration of the company. This will reduce the owner’s involvement in administrative tasks by 50% to 20%. This will give her more time to focus on sales and marketing.
1.2 Mission
Cutting Edge Drapery is best suited to serving the interior designer share of the textile treatment market because clients of interior designers can afford expensive materials and custom solutions. The company cannot compete against large workrooms that can produce mass quantities, nor can it compete with home workrooms. The company strives to provide high quality workmanship, meet agreed delivery dates and execute custom work in compliance with the designer’s vision.
1.3 Keys to Success
A few key aspects can determine success or failure in professional workrooms. Most of these factors stem from interior designers’ importance to reputation:
Private clients cannot be accepted into the professional workroom. The fear of an interior designer finding out that his client will be able to save thousands of dollars by working directly in the room is common among them. If private clients contact the company, they should be referred to a designer who works closely with the company.
Clients who have the means to pay for interior designers are more demanding. The interior designer needs to feel that his workroom considers that designer the most important person in the world. It is important to avoid any action that may indicate that the designer’s workroom is occupied with other designers’#8217s work.
The workroom must live up to its promises. The work must be done exactly as promised and at the agreed cost. The designer’s ability to communicate with the workroom effectively is key.
Quality is important for the production supervisor. The production supervisor must ensure that jobs quoted at 15 hour increments do not take more than 20 hours. If individual production stitchers are not efficient or left idle, profit goals cannot be achieved.
FoodFun Lifeskills Instructional Software (FoodFun LIS) is a start-up organization whose vision is to create the finest education/entertainment software for non-reading individuals with developmental disabilities. The software product has been designed and created by a Ph.D. veteran of the special education industry, to meet the needs of this special customer segment. It will teach life skills and be useful, while also being fun to use. FoodFun LIS began as an Illinois L.L.C. Sue Altamirankow is the founder, and she will be based in Chicago.
The Market
FoodFun identified four market segments that would be interested in the software product. These are the most likely buyers of the software. These segments are:
Centers for Independent Living‘#8211 These centers help individuals with developmental disabilities to live independently. The curriculum usually focuses on four key life skills that the individual must possess in order to live independently.
School Districts All states must provide education for students with special learning needs until the age 21. FoodFun’s software will interest students who are in school districts. They provide essential life skills and are often the educational providers for the student until they turn 18.
Proactive Parent Parents who want to be involved in their children’’s education will search for tools that can be used at home to aid their child’s learning.
Agency Several states have created agencies to act as intermediaries between service providers and individuals. These agencies were usually formed following a settlement of a lawsuit (including in a class action).
Parents will only be required to buy one copy of the program. Other segments will purchase multiple licenses/site licenses, and may also purchase upgrades to later versions.
The Product
Grocery shopping and socialization/leisure are two of the main lifeskills which individuals with developmental disabilities are taught. FoodFun developed a software product that can be used as a teaching tool for these essential skills. The software’s first component is grocery shopping. This software is in the form of a digital book of recipes. Each recipe can be represented by a picture. The student can choose the photo they want and then see a list that includes the ingredients and tools needed to create the dish. The student can print out the photos and bring them to the grocery shop, where they can shop independently.
The second component is the socialization/leisure time module that provides the user with a choice of many different social events/parties for which they can prepare food. This module allows students to plan for a party (and we know EVERYONE loves to plan for parties) and incorporates music linked to each type of social event to provide entertainment for the user. Many people with developmental disabilities, or most of them, will feel a sense of joy when they click on the social event and hear the music.
Competitive Edge
Many companies are selling educational products to this market segment. FoodFun LIS will leverage their competitive edge by incorporating entertainment into their software product, a means of creating interest and joy while using the software. This interest and joy will increase the amount of time that the students use the software, thereby increasing the effectiveness of the program. FoodFun believes that students will use the software more often if they enjoy it than if they have to force them to.
Management
FoodFun is Dr. Sue Altamirankow’s creation. Sue has a Masters degree and a Ph.D. in special Education and has been teaching in the university environment for eighteen years. Her groundbreaking thesis, “Implications In Lifeskill Training For Individuals with Autism” was published. This paper carefully studied every aspect of lifeskills. This was the foundation of her vision to start a business in software development. She was able to create a study tool that would be both fun and useful. It would be fun because the students would enjoy using it, it would be effective because it taught important necessary lifeskills
people with developmental disabilities to help them live more independently. FoodFun for the years two through three has projected revenues of $400 397 and $490 000, respectively.
1.1 Mission
To create fun and easy-to-use educational software to assist non-readers with developmental disabilities. Our software will provide lifeskills training that empowers the individuals and make them more independent. We exist to produce products that the market wants and to have a positive effect on society.
1.2 Keys to Success
Create educational software that is fun and constructive. If it is not fun, it likely will not be used.
You should run a strong campaign to spread awareness about the software among all the schools, brokerages, training centres, and parents.
For your organization, establish strict financial controls.
1.3 Objectives
In the first two years, sales will increase by three times.
Achieve 20% market penetration by year four.
Assist over 10,000 individuals with developmental disabilities.
This storage business plan describes a proposed self-storage facility to be established in Westbury, New York involving the conversion of an existing building. The project total costs include conversion costs, purchase price and pre-opening costs (see Section on Start-up Summary). The projected growth in rental revenue from self-storage units is based on strong demand.
Objectives
After achieving experience and success in their present self-storage facility in Plainview, New York the principals of this proposed project plan to take advantage of the strong demand in the self-storage industry to achieve a major presence in Westbury. Stote Moving’s ownership will help to quickly gain full occupancy. In the first six month of Year 1, the goal was to rent 50% of 300 spaces. In Year 2, 25% more units will also be rented. The remaining units will be filled in Year 2.
Mission
The principals have one mission: to meet the Long Island community’s residential and commercial storage and moving requirements.
Keys to Success
These are the keys for success in self-storage.
To provide clean, dry, secure and convenient access to facilities.
To build strong relationships with the moving industry in order to provide temporary storage space for customers.
To be able change as market and storage requirements change.
New Look plans to strengthen its position as a retail men’s clothing business and become a manufacturer of upscale clothing for men aged between 20- 40. New Look is responsible for the development of the clothing line and supports it with promotional campaigns and advertising. The company plans to strengthen its partnership with retailers by developing brand awareness. New Look wants to market their line as an alternative and unique to existing clothing lines. They also plan to distinguish themselves through high brand awareness, marketing strategies and exclusiveness.
The New Look collection is synonymous with elegant, sophisticated, fashionable, and luxurious clothing. The company’s marketing plan is varied and includes a variety advertising communications. In the future, the company hopes to develop lines of accessories for men, women, and children. These accessories will include jewelry, perfume, eyewear, watches and cologne/perfume.
Solution
New Look is responsible for developing the clothing range and supporting it with advertising campaigns and promotions. The company plans to strengthen its partnership with retailers by developing brand awareness
Market
Our customers are males between the ages of 20 and 40 with a disposable household income. There are no color restrictions within this group and customers come from many backgrounds. The New Look customer is a versatile man who can fit into any environment and is willing to pay a high price for quality clothing.
Concurrence
Companies are reorganizing to make them more efficient and to adopt new technologies. This industry has seen consolidation in the last few years. Larger companies have more market share and can cut costs. In the apparel industry, companies can operate as retailers or manufacturers (wholesalers) or both. Gap, Inc., a vertical retail company, manufactures its own clothing and accessories and markets them. VG Corporation is a producer and sells only to retail channels. Tommy Hilfiger is a company that does both: it sells its products both to retailers and consumers (through outlets).
Why Us?
We offer an alternative to the existing clothing lines. Our lines are unique, so your coworkers and other fashion-conscious friends won’t be able to buy the same thing. We are also highly aware of trends and brands, you will be the envy of all your friends because you found us first.
Expectations
Forecast
The company’s goal was to grow its retail business into online sales, using its own branding. It will be available for sale by the end the period in other retail outlets as well as online.
Financial Highlights by Year
Financing is Required
We want to expand our design portfolio so that our owner can invest $65,000. We are also looking for a $115,000 loan to fund our business. Both will be repaid within the second year. We have a strong customer base and established relationships.
