ExpectingU.com is an online business offering collegiate maternity wear through our website and eBay store. The owner, Mary Lenton, has over 10 years of experience in business management, channel marketing, and high-level sales. She will self-fund the business with personal capital, as she strongly believes in the product idea. Market research among over 500 pregnant women shows a demand for such products. ExpectingU.com has commitments from online expecting sites for ad space and numerous leads for direct sales and public relations.

Our target market includes pregnant women who are sports fans, as well as friends and family members who buy the shirts as gifts.

Sales projections for the first year are estimated at $1,094,635 with a projected net profit of $343,517.

We anticipate a gross margin of roughly 71.5% for products sold on our website and 67.2% for items sold through our eBay store. Our simple design allows for easy and inexpensive outsourced manufacturing, and our innovative concept allows for a price premium.

While we will pay roughly $48,000 in eBay fees in the first year, we will offset this with savings in marketing costs and expenses for website development and maintenance. The popularity and brand success of eBay, along with its tools for new merchants, will help us build a solid customer base.

Note: The revised text eliminates redundancies, repetitive ideas, and unnecessary adjectives while maintaining the original meaning and tone of the text.

Maternity Clothing Online Business Plan Example

1.1 Objectives

  1. Create a unique maternity wear product and offer them in 75% of Division 1 football schools’ collegiate logos by the end of year one.
  2. Generate retail sales of over $1,000,000 in year one, both on our site and on our eBay store.
  3. Maintain a gross margin of over 65%.
  4. Achieve 100 positive eBay customer feedback comments in one year.

1.2 Mission

To offer comfortable and readily available maternity collegiate wear for women who want to support their favorite college team, even while pregnant.

1.3 Keys to Success

  1. ExpectingU.com will offer a unique line of maternity shirts that will carry the logo and/or mascot of NCAA Division I football teams. These products are currently in demand but do not exist in mainstream commerce.
  2. ExpectingU.com will satisfy the demand for maternity collegiate shirts by maintaining inventory levels that allow for immediate shipping to customers.
  3. ExpectingU.com will execute a targeted marketing campaign to generate awareness of the website and products.

Company Summary

ExpectingU.com will sell a line of collegiate maternity wear for expecting mothers. In the future, the company will explore the professional sports market as a new channel for growth.

The owner will run the business from her home office. Inventory will be stored in a 1,200 sq.ft. designated storage area within the basement. Sales will be primarily through an eBay store until our own site is fully developed, part way through the first year.

2.1 Company Ownership

ExpectingU.com is a privately held S-Corporation owned by its founder, Mary Lenton.

2.2 Start-up Summary

Start-up costs for ExpectingU.com equal $23,750 and include legal costs, computer supplies, new product marketing, website design, and NCAA licensing* for the shirt designs. Start-up assets total $40,000, most of which is dedicated to start-up inventory. Please see the following chart for a detailed look at all start-up costs.

*LICENSING: Based on research, NCAA licensing is required to use official college mascots and names. This is not cost-prohibitive; however, the regulating board for licensing has strict requirements regarding who can and cannot be granted permission to use collegiate likenesses. As of this date, our proposal is under submission, and we are awaiting a final decision.

Future growth into other categories will depend on similar licensing with organizations such as the NBA and NFL.

Maternity Clothing Online Business Plan Example

Start-up Expenses

Legal: $1,000

Computer: $250

Marketing: $15,000

Web Design: $1,500

Licensing: $5,000

Total Start-up Expenses: $22,750

Start-up Assets

Cash Required: $6,000

Start-up Inventory: $35,000

Other Current Assets: $0

Long-term Assets: $0

Total Assets: $41,000

Total Requirements: $63,750

Products

ExpectingU.com will provide collegiate maternity wear shirts via our website and eBay store. Manufacturing will be outsourced, and fulfillment will initially be handled in-house.

Market Analysis Summary

The primary target market is the 3.5 million pregnant women who buy maternity clothes.

The secondary target market is the over 25,000,000 people who shop for and buy collegiate clothing. By introducing them to collegiate maternity wear, they can purchase items as gifts.

As an online store, we will focus on customers comfortable shopping online.

Market Segmentation

The two groups who would buy maternity clothes are pregnant women and those shopping for pregnant women (e.g., husbands or family members). Our projected sales forecast is less than 1% of the total potential market.

Maternity Clothing Online Business Plan Example

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Potential Customers Growth

Expecting women 0% 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 0.00%

Collegiate wear shoppers 0% 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 0.00%

Other 0% 0 0 0 0 0 0.00%

Total 0.00% 28,500,000 28,500,000 28,500,000 28,500,000 28,500,000 0.00%

4.2 Industry Analysis

ExpectingU.com operates in the Maternity Wear segment of the clothing industry. The U.S. maternity wear industry generates over $200 million in sales from 2,000 retail stores and 500 websites.

Pregnant women: Over 3.5 million women become pregnant each year. Maternity clothing has evolved from dowdy styles to fashionable options that allow women to maintain their personal style. The market offers hip and stylish clothing for different occasions, including athletic wear and corporate attire. Our target customers will be reached through email campaigns, online advertising, and direct marketing.

Shoppers for Pregnant Women: The number of people who shop for expectant women is unknown. However, we will target those already shopping for collegiate wear to create awareness of our products and generate gift ideas. Online advertising on collegiate sites will drive traffic to our website.

4.2.1 Competition and Buying Patterns

Customers in this industry choose clothing based on personal preference and a desire to maintain their pre-pregnancy style. We aim to offer items that align with their personal wardrobe choices, such as supporting their favorite sports teams. Our specialty items will make them feel good while offering a connection to their favorite sports teams.

Positioning ourselves as a specialty store will create awareness through word of mouth. Pregnant women wearing our shirts in public will generate interest and lead to additional sales.

4.2.2 Main Competitors

Major maternity retailers like Motherhood and Pea in the Pod offer a mainstream line of clothes appealing to a wide audience. Due to their distribution model, they cannot carry small regional specialty items like collegiate shirts. Online retailers also have a variety of maternity clothes, but very few offer collegiate maternity wear. There is a need for a specialty web store catering to this type of apparel.

Strategy and Implementation Summary

Our marketing strategy aims to create awareness among expecting women and their families through strategic internet ads, direct mail campaigns, and public relations. We offer a unique product that expecting women will find fun to wear during their pregnancy, allowing them to continue supporting their favorite team at games and in their daily lives.

5.1 Competitive Edge

ExpectingU.com differentiates itself through its unique product offering. Major maternity retailers and online stores rarely offer collegiate maternity t-shirts. We position ourselves as a specialty online store catering to expecting moms who want to support their favorite team throughout their pregnancy. This niche allows us to effectively target our customers.

Our primary weakness is being a new business with a new product. Our success relies on creating awareness and making it easy for potential customers to find our online store. By offering a fun product that expecting women would like to have, we will establish our presence in the maternity wear industry.

5.2 Marketing Strategy

Our marketing strategy focuses on creating awareness among our primary target market. We will utilize eBay’s brand-name power, place ads on websites frequently visited by expecting moms, and collegiate sites. Additionally, we will leverage affiliate partnerships, conduct direct mail and email advertising, and seek PR coverage in publications for expectant mothers.

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5.3 Sales Strategy

Our sales strategy revolves around creating awareness of collegiate maternity wear and driving business to our website and eBay store. We will use pop-up and banner ads on relevant websites, direct mail, email lists, and seek PR coverage. Fulfilling orders will be done through PayPal initially, with the possibility of implementing Fax orders as customer demand arises.

5.4 Sales Forecast

Our sales forecast for FY 2006 considers slower sales initially as we create awareness of our product and website. We will start by selling one style of t-shirt with logos of 132 Division 1 universities. As the company grows, we will assess demand for other types of collegiate maternity wear. For the first three months, sales will be exclusively through eBay. The following table illustrates unit sales of 36,500 t-shirts for the first year.

Monthly Sales Chart indicates seasonality in our business, with increased sales during the Fall, coinciding with football season and higher sales for collegiate goods.

Note: Direct costs shown in the Sales Forecast table only represent inventory costs for t-shirts. Additional non-inventory direct costs, including eBay fees and PayPal fees, can be found in the projected Profit and Loss.

Maternity Clothing Online Business Plan Example

Maternity Clothing Online Business Plan Example

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
t-shirts – www.ExpectingU.com 11,600 12,180 12,789
t-shirts – eBay Store 24,900 26,145 27,452
Total Unit Sales 36,500 38,325 40,241
Unit Prices Year 1 Year 2 Year 3
t-shirts – www.ExpectingU.com $29.99 $29.99 $29.99
t-shirts – eBay Store $29.99 $29.99 $29.99
Sales
t-shirts – www.ExpectingU.com $347,884 $365,278 $383,542
t-shirts – eBay Store $746,751 $784,089 $823,293
Total Sales $1,094,635 $1,149,367 $1,206,835
Direct Unit Costs Year 1 Year 2 Year 3
t-shirts – www.ExpectingU.com $7.50 $7.50 $7.50
t-shirts – eBay Store $7.50 $7.50 $7.50
Direct Cost of Sales
t-shirts – www.ExpectingU.com $86,971 $91,320 $95,886
t-shirts – eBay Store $186,690 $196,088 $205,892
Subtotal Direct Cost of Sales $273,661 $287,407 $301,777

5.5 Milestones

The following are the key milestones for the first year of operations:

  1. Completion of strategic business plan by April 1
  2. Obtain all NCAA licensing by May 1
  3. Negotiate t-shirt costs with supplier and screen printer by May 30
  4. Have first shipment of products delivered for fulfillment by July 1
  5. Have specifics for advertising plan in place by June 1

Maternity Clothing Online Business Plan Example

Milestones

Milestone Date Date Budget Manager Department

Obtain NCAA licensing for shirt production 5/1/2005 5/20/2005 $5,000 ML general

PR packets to 10 expectant mother publications 6/1/2005 7/15/2005 $200 ML general

Sign up products as affiliate offer on five sites 6/1/2005 7/31/2005 $250 ML general

Obtain 2-3 email lists for expectant mothers 6/15/2005 7/1/2005 $1,000 ML general

Place ads on two expectant mother websites 7/1/2005 9/1/2005 $10,000 ML general

Send emails to target customers 7/1/2005 7/31/2005 $500 ML general

Other 7/1/2005 7/30/2005 $0 ML general

Totals $16,950

Web Plan Summary

The following sub-topics outline our plans to create and maintain our website. Initially, we will have a simple text and image-based website outlining our products and redirecting customers to our eBay store. After three months, we will add online ordering to our own website.

6.1 Website Marketing Strategy

Our website will provide information about us and our products, as well as online order processing. We will include our web address in all advertising to direct customers to our website. Our company logo and motto should be eye-catching and memorable.

6.2 Development Requirements

Initial Development

We will work with an outside contractor to design the site layout. Initially, the site will provide an overview of the company, describe our products and services, and redirect visitors to our eBay store. The estimated costs for initial development are listed in our start-up costs.

Some features of the website will include the ability to search for logos by school name and team name, and good-quality pictures of our products and logos.

Full website (including online ordering)

In the third month, we will finish developing the site to include online order processing via PayPal. Starting in November, customers will have the choice of buying from our website or our eBay store. Additional security functions are required for PayPal sales on our website. Expenses for further website development are listed in the Profit and Loss table.

Order processing will include the ability to provide billing and optional shipping addresses, and accept credit cards and payment by check (using PayPal).

Once the website design is complete, we will contract for ongoing maintenance and support. Monthly cost estimates are listed in the expenses section of the Profit and Loss table.

Management Summary

Initially, the only employee will be Mary Lenton, the company founder. She will oversee product development, the online store, and marketing. Website store design will be outsourced.

7.1 Personnel Plan

As the company launch date approaches, one part-time employee will be hired to help with fulfillment, with a second part-time employee scheduled for the third month, during the football season. More personnel will be added as needed. Temporary seasonal help will also be hired for order processing during October through December.

Part-time staff will process all Internet and Fax orders, PayPal payments, and handle shipping.

Subcontractors will be used for website design and marketing.

Personnel Plan

Year 1 Year 2 Year 3

Owner $36,000 $40,000 $45,000

Fulfillment Representative 1 $12,000 $23,000 $25,000

Fulfillment Representative 2 $10,000 $23,000 $25,000

Total People 3 3 3

Total Payroll $58,000 $86,000 $95,000

Financial Plan

ExpectingU.com expects a gross margin of approximately 65%. Sales projections for Year 1 exceed $1,000,000. Detailed financial information can be found in the appendix.

8.1 Start-up Funding

The company owner, Mary Lenton, will use personal funds to finance the start of the business. Start-up costs include website store design, starting inventory, and licensing approval.

Start-up Funding

Start-up Expenses to Fund $22,750

Start-up Assets to Fund $41,000

Total Funding Required $63,750

Assets

Non-cash Assets from Start-up $35,000

Cash Requirements from Start-up $6,000

Additional Cash Raised $0

Cash Balance on Starting Date $6,000

Total Assets $41,000

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $0

Capital

Planned Investment

Owner $63,750

Investor $0

Additional Investment Requirement $0

Total Planned Investment $63,750

Loss at Start-up (Start-up Expenses) ($22,750)

Total Capital $41,000

Total Capital and Liabilities $41,000

Total Funding $63,750

8.2 Break-even Analysis

The following Break-even Analysis shows the monthly sales needed to break even.

Maternity Clothing Online Business Plan Example

Break-even Analysis:

Monthly Units Break-even: 1,009

Monthly Revenue Break-even: $30,270

Assumptions:

– Average Per-Unit Revenue: $29.99

– Average Per-Unit Variable Cost: $9.87

– Estimated Monthly Fixed Cost: $20,308

Projected Profit and Loss:

The following table and charts show the projected profit and loss. Monthly projections are included in the appendix.

We must track our eBay and PayPal fees to ensure they are accurately projected in the Other Cost of Goods section of the Profit and Loss statement. As we gain experience with the average cost of Item Fees, Final Value Fees, and PayPal fees, we may need to update the Profit and Loss table to reflect the correct cost. Currently, we have included high estimates to maintain a realistic outlook on the cost of doing business on eBay.

The fees are based on the following:

– eBay fees (only apply to eBay store sales): Insertion fee of $0.35 per item, plus Final Fee at 5.25% of total sale price on each sale

– PayPal fees (apply to all sales):

– First two months: Standard rate of $0.30 per sale, plus 2.9% of total sale price on each sale

– Afterwards: Merchant rate of $0.30 per sale, plus 2.5% of total sale price on each sale*

These fees are conservative, assuming that each unit sale is a complete sale. It is likely that at least 1/5 of our sales in the heavy sales months will involve purchasing multiple shirts, as pregnant couples often know other pregnant couples and buy gifts for each other.

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We will also allocate marketing dollars to promote our products using eBay’s promotion tools. Our budget will include search placements and "bolded" listings in the eBay search results. As our sales increase, we will adjust the marketing expenses based on what strategies yield positive results.

*Qualifying for the lower merchant rate requires maintaining a good standing account and reaching a specific dollar amount of sales in the previous month. Based on our research, we anticipate meeting these goals early in our plan.

Maternity Clothing Online Business Plan Example

Maternity Clothing Online Business Plan Example

Maternity Clothing Online Business Plan Example

Maternity Clothing Online Business Plan Example

Pro Forma Profit and Loss Table:

Sales:

Year 1: $1,094,635

Year 2: $1,149,367

Year 3: $1,206,835

Direct Cost of Sales:

Year 1: $273,661

Year 2: $287,407

Year 3: $301,777

eBay fees (eBay sales only):

Year 1: $47,919

Year 2: $50,315

Year 3: $52,831

PayPal fees (all sales):

Year 1: $38,617

Year 2: $40,232

Year 3: $42,243

Total Cost of Sales:

Year 1: $360,197

Year 2: $377,954

Year 3: $396,851

Gross Margin:

Year 1: $734,438

Year 2: $771,413

Year 3: $809,984

Gross Margin %:

Year 1: 67.09%

Year 2: 67.12%

Year 3: 67.12%

Expenses:

Payroll:

Year 1: $58,000

Year 2: $86,000

Year 3: $95,000

Marketing/Promotion:

Year 1: $120,000

Year 2: $126,000

Year 3: $132,300

Depreciation:

Year 1: $0

Year 2: $0

Year 3: $0

Web Design and Maintenance:

Year 1: $33,000

Year 2: $36,300

Year 3: $39,930

Payroll Taxes:

Year 1: $8,700

Year 2: $12,900

Year 3: $14,250

Other:

Year 1: $24,000

Year 2: $0

Year 3: $0

Total Operating Expenses:

Year 1: $243,700

Year 2: $261,200

Year 3: $281,480

Profit Before Interest and Taxes (EBITDA):

Year 1: $490,738

Year 2: $510,213

Year 3: $528,504

Interest Expense:

Year 1: $0

Year 2: $0

Year 3: $0

Taxes Incurred:

Year 1: $147,221

Year 2: $153,064

Year 3: $158,551

Net Profit:

Year 1: $343,516

Year 2: $357,149

Year 3: $369,953

Net Profit/Sales:

Year 1: 31.38%

Year 2: 31.07%

Year 3: 30.65%

Projected Cash Flow:

The monthly cash flow is shown in the illustration, with one bar representing cash flow per month and the other representing the monthly balance. The annual cash flow figures are included in the following table.

Maternity Clothing Online Business Plan Example

Pro Forma Cash Flow:

[table]

[tr][td]Year 1[/td][td]Year 2[/td][td]Year 3[/td][/tr]

[tr][td]Cash Received[/td][/tr]

[tr][td]Cash from Operations[/td][/tr]

[tr][td]Cash Sales[/td][td]$1,094,635[/td][td]$1,149,367[/td][td]$1,206,835[/td][/tr]

[tr][td]Subtotal Cash from Operations[/td][td]$1,094,635[/td][td]$1,149,367[/td][td]$1,206,835[/td][/tr]

[tr][td]Additional Cash Received[/td][/tr]

[tr][td]Sales Tax, VAT, HST/GST Received[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]New Current Borrowing[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]New Other Liabilities (interest-free)[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]New Long-term Liabilities[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Sales of Other Current Assets[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Sales of Long-term Assets[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]New Investment Received[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Subtotal Cash Received[/td][td]$1,094,635[/td][td]$1,149,367[/td][td]$1,206,835[/td][/tr]

[tr][td]Expenditures[/td][td]Year 1[/td][td]Year 2[/td][td]Year 3[/td][/tr]

[tr][td]Expenditures from Operations[/td][/tr]

[tr][td]Cash Spending[/td][td]$58,000[/td][td]$86,000[/td][td]$95,000[/td][/tr]

[tr][td]Bill Payments[/td][td]$628,740[/td][td]$701,080[/td][td]$740,128[/td][/tr]

[tr][td]Subtotal Spent on Operations[/td][td]$686,740[/td][td]$787,080[/td][td]$835,128[/td][/tr]

[tr][td]Additional Cash Spent[/td][/tr]

[tr][td]Sales Tax, VAT, HST/GST Paid Out[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Principal Repayment of Current Borrowing[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Other Liabilities Principal Repayment[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Long-term Liabilities Principal Repayment[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Purchase Other Current Assets[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Purchase Long-term Assets[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Dividends[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Subtotal Cash Spent[/td][td]$686,740[/td][td]$787,080[/td][td]$835,128[/td][/tr]

[tr][td]Net Cash Flow[/td][td]$407,895[/td][td]$362,287[/td][td]$371,707[/td][/tr]

[tr][td]Cash Balance[/td][td]$413,895[/td][td]$776,181[/td][td]$1,147,888[/td][/tr]

[/table]

8.5 Projected Balance Sheet:

The following table is the Projected Balance Sheet.

[table]

[tr][td]Year 1[/td][td]Year 2[/td][td]Year 3[/td][/tr]

[tr][td]Assets[/td][/tr]

[tr][td]Current Assets[/td][/tr]

[tr][td]Cash[/td][td]$413,895[/td][td]$776,181[/td][td]$1,147,888[/td][/tr]

[tr][td]Inventory[/td][td]$22,493[/td][td]$23,622[/td][td]$24,803[/td][/tr]

[tr][td]Other Current Assets[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Total Current Assets[/td][td]$436,387[/td][td]$799,803[/td][td]$1,172,692[/td][/tr]

[tr][td]Long-term Assets[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Total Assets[/td][td]$436,387[/td][td]$799,803[/td][td]$1,172,692[/td][/tr]

[tr][td]Liabilities and Capital[/td][td]Year 1[/td][td]Year 2[/td][td]Year 3[/td][/tr]

[tr][td]Current Liabilities[/td][/tr]

[tr][td]Accounts Payable[/td][td]$51,871[/td][td]$58,138[/td][td]$61,074[/td][/tr]

[tr][td]Current Borrowing[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Other Current Liabilities[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Subtotal Current Liabilities[/td][td]$51,871[/td][td]$58,138[/td][td]$61,074[/td][/tr]

[tr][td]Long-term Liabilities[/td][td]$0[/td][td]$0[/td][td]$0[/td][/tr]

[tr][td]Total Liabilities[/td][td]$51,871[/td][td]$58,138[/td][td]$61,074[/td][/tr]

[tr][td]Paid-in Capital[/td][td]$63,750[/td][td]$63,750[/td][td]$63,750[/td][/tr]

[tr][td]Retained Earnings[/td][td]($22,750)[/td][td]$320,766[/td][td]$677,915[/td][/tr]

[tr][td]Earnings[/td][td]$343,516[/td][td]$357,149[/td][td]$369,953[/td][/tr]

[tr][td]Total Capital[/td][td]$384,516[/td][td]$741,665[/td][td]$1,111,618[/td][/tr]

[tr][td]Total Liabilities and Capital[/td][td]$436,387[/td][td]$799,803[/td][td]$1,172,692[/td][/tr]

[tr][td]Net Worth[/td][td]$384,516[/td][td]$741,665[/td][td]$1,111,618[/td][/tr]

[/table]

8.6 Business Ratios:

The following table shows the projected business ratios. We expect to maintain healthy ratios for profitability, risk, and return. Industry profile ratios based on the North American Industry Classification (NAICS) and Standard Industrial Classification (SIC) data for the Maternity Wear industry.

[table]

[tr][td]Year 1[/td][td]Year 2[/td][td]Year 3[/td][td]Industry Profile[/td][/tr]

[tr][td]Sales Growth[/td][td]0.00%[/td][td]5.00%[/td][td]5.00%[/td][td]-17.40%[/td][/tr]

[tr][td]Percent of Total Assets[/td][/tr]

[tr][td]Inventory[/td][td]5.15%[/td][td]2.95%[/td][td]2.12%[/td][td]38.82%[/td][/tr]

[tr][td]Other Current Assets[/td][td]0.00%[/td][td]0.00%[/td][td]0.00%[/td][td]28.73%[/td][/tr]

[tr][td]Total Current Assets[/td][td]100.00%[/td][td]100.00%[/td][td]100.00%[/td][td]90.64%[/td][/tr]

[tr][td]Long-term Assets[/td][td]0.00%[/td][td]0.00%[/td][td]0.00%[/td][td]9.36%[/td][/tr]

[tr][td]Total Assets[/td][td]100.00%[/td][td]100.00%[/td][td]100.00%[/td][td]100.00%[/td][/tr]

[tr][td]Current Liabilities[/td][/tr]

[tr][td]Accounts Payable[/td][td]13.12%[/td][td]12.17%[/td][td]12.17%[/td][td]24.75%[/td][/tr]

[tr][td]Long-term Liabilities[/td][td]0.00%[/td][td]0.00%[/td][td]0.00%[/td][td]5.78%[/td][/tr]

[tr][td]Total Liabilities[/td][td]13.12%[/td][td]12.17%[/td][td]12.17%[/td][td]30.53%[/td][/tr]

[tr][td]Net Worth[/td][td]86.88%[/td][td]87.83%[/td][td]87.83%[/td][td]69.47%[/td][/tr]

[tr][td]Percent of Sales[/td][/tr]

[tr][td]Sales[/td][td]100.00%[/td][td]100.00%[/td][td]100.00%[/td][td]100.00%[/td][/tr]

[tr][td]Gross Margin[/td][td]67.09%[/td][td]67.12%[/td][td]67.12%[/td][td]24.54%[/td][/tr]

[tr][td]Selling, General & Administrative Expenses[/td][td]35.71%[/td][td]36.04%[/td][td]36.46%[/td][td]13.39%[/td][/tr]

[tr][td]Advertising Expenses[/td][td]0.00%[/td][td]0.00%[/td][td]0.00%[/td][td]0.79%[/td][/tr]

[tr][td]Profit Before Interest and Taxes[/td][td]44.83%[/td][td]44.39%[/td][td]43.79%[/td][td]1.00%[/td][/tr]

[tr][td]Main Ratios[/td][/tr]

[tr][td]Current[/td][td]8.41[/td][td]13.76[/td][td]19.20[/td][td]3.27[/td][/tr]

[tr][td]Quick[/td][td]7.98[/td][td]13.35[/td][td]18.80[/td][td]1.38[/td][/tr]

[tr][td]Total Debt to Total Assets[/td][td]11.89%[/td][td]7.27%[/td][td]5.21%[/td][td]34.77%[/td][/tr]

[tr][td]Pre-tax Return on Net Worth[/td][td]127.62%[/td][td]68.79%[/td][td]47.54%[/td][td]2.50%[/td][/tr]

[tr][td]Pre-tax Return on Assets[/td][td]112.45%[/td][td]63.79%[/td][td]45.07%[/td][td]3.83%[/td][/tr]

[tr][td]Additional Ratios[/td][td]Year 1[/td][td]Year 2[/td][td]Year 3[/td][/tr]

[tr][td]Net Profit Margin[/td][td]31.38%[/td][td]31.07%[/td][td]30.65%[/td][td]n.a[/td][/tr]

[tr][td]Return on Equity[/td][td]89.34%[/td][td]48.15%[/td][td]33.28%[/td][td]n.a[/td][/tr]

[tr][td]Activity Ratios[/td][/tr]

[tr][td]Inventory Turnover[/td][td]11.00[/td][td]12.46[/td][td]12.46[/td][td]n.a[/td][/tr]

[tr][td]Accounts Payable Turnover[/td][td]13.12[/td][td]12.17[/td][td]12.17[/td][td]n.a[/td][/tr]

[tr][td]Payment Days[/td][td]27[/td][td]28[/td][td]29[/td][td]n.a[/td][/tr]

[tr][td]Total Asset Turnover[/td][td]2.51[/td][td]1.44[/td][td]1.03[/td][td]n.a[/td][/tr]

[tr][td]Debt Ratios[/td][/tr]

[tr][td]Debt to Net Worth[/td][td]0.13[/td][td]0.08[/td][td]0.05[/td][td]n.a[/td][/tr]

[tr][td]Current Liab. to Liab.[/td][td]1.00[/td][td]1.00[/td][td]1.00[/td][td]n.a[/td][/tr]

[tr][td]Liquidity Ratios[/td][/tr]

[tr][td]Net Working Capital[/td][td]$384,516[/td][td]$741,665[/td][td]$1,111,618[/td][td]n.a[/td][/tr]

[tr][td]Interest Coverage[/td][td]0.00[/td][td]0.00[/td][td]0.00[/td][td]n.a[/td][/tr]

[tr][td]Additional Ratios[/td][td]Year 1[/td][td]Year 2[/td][td]Year 3[/td][/tr]

[tr][td]Assets to Sales[/td][td]0.40[/td][td]0.70[/td][td]0.97[/td][td]n.a[/td][/tr]

[tr][td]Current Debt/Total Assets[/td][td]

Sales Forecast:

t-shirts – www.ExpectingU.com: 5%

Month 1: 0

Month 2: 0

Month 3: 0

Month 4: 2,000

Month 5: 2,400

Month 6: 1,500

Month 7: 1,000

Month 8: 500

Month 9: 1,200

Month 10: 1,000

Month 11: 1,000

Month 12: 1,000

t-shirts – eBay Store: 5%

Month 1: 1,000

Month 2: 1,500

Month 3: 2,000

Month 4: 3,000

Month 5: 3,600

Month 6: 2,500

Month 7: 2,000

Month 8: 1,500

Month 9: 1,800

Month 10: 2,000

Month 11: 2,000

Month 12: 2,000

Total Unit Sales:

Month 1: 1,000

Month 2: 1,500

Month 3: 2,000

Month 4: 5,000

Month 5: 6,000

Month 6: 4,000

Month 7: 3,000

Month 8: 2,000

Month 9: 3,000

Month 10: 3,000

Month 11: 3,000

Month 12: 3,000

Unit Prices:

t-shirts – www.ExpectingU.com: $29.99

Month 1: $29.99

Month 2: $29.99

Month 3: $29.99

Month 4: $29.99

Month 5: $29.99

Month 6: $29.99

Month 7: $29.99

Month 8: $29.99

Month 9: $29.99

Month 10: $29.99

Month 11: $29.99

Month 12: $29.99

t-shirts – eBay Store: $29.99

Month 1: $29.99

Month 2: $29.99

Month 3: $29.99

Month 4: $29.99

Month 5: $29.99

Month 6: $29.99

Month 7: $29.99

Month 8: $29.99

Month 9: $29.99

Month 10: $29.99

Month 11: $29.99

Month 12: $29.99

Total Sales:

Month 1: $29,990

Month 2: $44,985

Month 3: $59,980

Month 4: $149,950

Month 5: $179,940

Month 6: $119,960

Month 7: $89,970

Month 8: $59,980

Month 9: $89,970

Month 10: $89,970

Month 11: $89,970

Month 12: $89,970

Direct Unit Costs:

t-shirts – www.ExpectingU.com: 25.00%

Month 1: $7.50

Month 2: $7.50

Month 3: $7.50

Month 4: $7.50

Month 5: $7.50

Month 6: $7.50

Month 7: $7.50

Month 8: $7.50

Month 9: $7.50

Month 10: $7.50

Month 11: $7.50

Month 12: $7.50

t-shirts – eBay Store: 25.00%

Month 1: $7.50

Month 2: $7.50

Month 3: $7.50

Month 4: $7.50

Month 5: $7.50

Month 6: $7.50

Month 7: $7.50

Month 8: $7.50

Month 9: $7.50

Month 10: $7.50

Month 11: $7.50

Month 12: $7.50

Direct Cost of Sales:

Month 1: $7,500

Month 2: $11,246

Month 3: $14,995

Month 4: $37,488

Month 5: $44,985

Month 6: $29,990

Month 7: $22,493

Month 8: $14,995

Month 9: $22,493

Month 10: $22,493

Month 11: $22,493

Month 12: $22,493

Personnel Plan:

Owner: 0%

Month 1: $3,000

Month 2: $3,000

Month 3: $3,000

Month 4: $3,000

Month 5: $3,000

Month 6: $3,000

Month 7: $3,000

Month 8: $3,000

Month 9: $3,000

Month 10: $3,000

Month 11: $3,000

Month 12: $3,000

Fulfillment Representative 1: 0%

Month 1: $1,000

Month 2: $1,000

Month 3: $1,000

Month 4: $1,000

Month 5: $1,000

Month 6: $1,000

Month 7: $1,000

Month 8: $1,000

Month 9: $1,000

Month 10: $1,000

Month 11: $1,000

Month 12: $1,000

Fulfillment Representative 2: 0%

Month 1: $0

Month 2: $0

Month 3: $1,000

Month 4: $1,000

Month 5: $1,000

Month 6: $1,000

Month 7: $1,000

Month 8: $1,000

Month 9: $1,000

Month 10: $1,000

Month 11: $1,000

Month 12: $1,000

Total People:

Month 1: 2

Month 2: 2

Month 3: 3

Month 4: 3

Month 5: 3

Month 6: 3

Month 7: 3

Month 8: 3

Month 9: 3

Month 10: 3

Month 11: 3

Month 12: 3

Total Payroll:

Month 1: $4,000

Month 2: $4,000

Month 3: $5,000

Month 4: $5,000

Month 5: $5,000

Month 6: $5,000

Month 7: $5,000

Month 8: $5,000

Month 9: $5,000

Month 10: $5,000

Month 11: $5,000

Month 12: $5,000

Pro Forma Profit and Loss:

Sales:

Month 1: $29,990

Month 2: $44,985

Month 3: $59,980

Month 4: $149,950

Month 5: $179,940

Month 6: $119,960

Month 7: $89,970

Month 8: $59,980

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Month 9: $89,970

Month 10: $89,970

Month 11: $89,970

Month 12: $89,970

Direct Cost of Sales:

Month 1: $7,500

Month 2: $11,246

Month 3: $14,995

Month 4: $37,488

Month 5: $44,985

Month 6: $29,990

Month 7: $22,493

Month 8: $14,995

Month 9: $22,493

Month 10: $22,493

Month 11: $22,493

Month 12: $22,493

eBay fees (eBay sales only): 5%

Month 1: $1,924

Month 2: $2,887

Month 3: $3,849

Month 4: $5,773

Month 5: $6,928

Month 6: $4,811

Month 7: $3,849

Month 8: $2,887

Month 9: $3,464

Month 10: $3,849

Month 11: $3,849

Month 12: $3,849

PayPal fees (all sales): 3%

Month 1: $1,170

Month 2: $1,755

Month 3: $2,100

Month 4: $5,249

Month 5: $6,299

Month 6: $4,199

Month 7: $3,149

Month 8: $2,100

Month 9: $3,149

Month 10: $3,149

Month 11: $3,149

Month 12: $3,149

Total Cost of Sales:

Month 1: $10,594

Month 2: $15,888

Month 3: $20,944

Month 4: $48,510

Month 5: $58,212

Month 6: $39,000

Month 7: $29,491

Month 8: $19,982

Month 9: $29,106

Month 10: $29,491

Month 11: $29,491

Month 12: $29,491

Gross Margin:

Month 1: $19,396

Month 2: $29,097

Month 3: $39,036

Month 4: $101,441

Month 5: $121,728

Month 6: $80,960

Month 7: $60,480

Month 8: $39,998

Month 9: $60,865

Month 10: $60,480

Month 11: $60,480

Month 12: $60,480

Gross Margin %:

Month 1: 64.67%

Month 2: 64.68%

Month 3: 65.08%

Month 4: 67.65%

Month 5: 67.65%

Month 6: 67.49%

Month 7: 67.22%

Month 8: 66.69%

Month 9: 67.65%

Month 10: 67.22%

Month 11: 67.22%

Month 12: 67.22%

Expenses:

Payroll:

Month 1: $4,000

Month 2: $4,000

Month 3: $5,000

Month 4: $5,000

Month 5: $5,000

Month 6: $5,000

Month 7: $5,000

Month 8: $5,000

Month 9: $5,000

Month 10: $5,000

Month 11: $5,000

Month 12: $5,000

Marketing/Promotion:

Month 1: $10,000

Month 2: $15,000

Month 3: $20,000

Month 4: $20,000

Month 5: $20,000

Month 6: $5,000

Month 7: $5,000

Month 8: $5,000

Month 9: $5,000

Month 10: $5,000

Month 11: $5,000

Month 12: $5,000

Depreciation:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Month 12: $0

Web Design and Maintenance:

Month 1: $1,000

Month 2: $1,000

Month 3: $4,000

Month 4: $3,000

Month 5: $3,000

Month 6: $3,000

Month 7: $3,000

Month 8: $3,000

Month 9: $3,000

Month 10: $3,000

Month 11: $3,000

Month 12: $3,000

Payroll Taxes: 15%

Month 1: $600

Month 2: $600

Month 3: $750

Month 4: $750

Month 5: $750

Month 6: $750

Month 7: $750

Month 8: $750

Month 9: $750

Month 10: $750

Month 11: $750

Month 12: $750

Other:

Month 1: $2,000

Month 2: $2,000

Month 3: $2,000

Month 4: $2,000

Month 5: $2,000

Month 6: $2,000

Month 7: $2,000

Month 8: $2,000

Month 9: $2,000

Month 10: $2,000

Month 11: $2,000

Month 12: $2,000

Total Operating Expenses:

Month 1: $17,600

Month 2: $22,600

Month 3: $31,750

Month 4: $30,750

Month 5: $30,750

Month 6: $15,750

Month 7: $15,750

Month 8: $15,750

Month 9: $15,750

Month 10: $15,750

Month 11: $15,750

Month 12: $15,750

Profit Before Interest and Taxes:

Month 1: $1,796

Month 2: $6,497

Month 3: $7,286

Month 4: $70,691

Month 5: $90,978

Month 6: $65,210

Month 7: $44,730

Month 8: $24,248

Month 9: $45,115

Month 10: $44,730

Month 11: $44,730

Month 12: $44,730

EBITDA:

Month 1: $1,796

Month 2: $6,497

Month 3: $7,286

Month 4: $70,691

Month 5: $90,978

Month 6: $65,210

Month 7: $44,730

Month 8: $24,248

Month 9: $45,115

Month 10: $44,730

Month 11: $44,730

Month 12: $44,730

Interest Expense:

Month 1: $0

Month 2: $0

Month 3: $0

Month 4: $0

Month 5: $0

Month 6: $0

Month 7: $0

Month 8: $0

Month 9: $0

Month 10: $0

Month 11: $0

Pro Forma Cash Flow

Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $29,990 $44,985 $59,980 $149,950 $179,940 $119,960 $89,970 $59,980 $89,970 $89,970 $89,970 $89,970
Subtotal Cash from Operations $29,990 $44,985 $59,980 $149,950 $179,940 $119,960 $89,970 $59,980 $89,970 $89,970 $89,970 $89,970
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $29,990 $44,985 $59,980 $149,950 $179,940 $119,960 $89,970 $59,980 $89,970 $89,970 $89,970 $89,970
Expenditures
Expenditures from Operations
Cash Spending $4,000 $4,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Bill Payments $574 $17,498 $25,972 $50,932 $117,986 $116,605 $54,046 $45,640 $31,522 $60,646 $53,659 $53,659
Subtotal Spent on Operations $4,574 $21,498 $30,972 $55,932 $122,986 $121,605 $59,046 $50,640 $36,522 $65,646 $58,659 $58,659
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $4,574 $21,498 $30,972 $55,932 $122,986 $121,605 $59,046 $50,640 $36,522 $65,646 $58,659 $58,659
Net Cash Flow $25,416 $23,487 $29,008 $94,018 $56,954 ($1,645) $30,924 $9,340 $53,448 $24,324 $31,311 $31,311
Cash Balance $31,416 $54,902 $83,910 $177,928 $234,883 $233,237 $264,161 $273,501 $326,950 $351,273 $382,584 $413,895

Pro Forma Balance Sheet

Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $6,000 $31,416 $54,902 $83,910 $177,928 $234,883 $233,237 $264,161 $273,501 $326,950 $351,273 $382,584 $413,895
Inventory $35,000 $27,500 $16,254 $14,995 $37,488 $44,985 $29,990 $22,493 $14,995 $22,493 $22,493 $22,493 $22,493
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $41,000 $58,916 $71,156 $98,905 $215,416 $279,868 $263,227 $286,654 $288,496 $349,442 $373,766 $405,076 $436,387
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $41,000 $58,916 $71,156 $98,905

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