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.
Contents
1.1 Objectives
- Create a unique maternity wear product and offer them in 75% of Division 1 football schools’ collegiate logos by the end of year one.
- Generate retail sales of over $1,000,000 in year one, both on our site and on our eBay store.
- Maintain a gross margin of over 65%.
- 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
- 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.
- ExpectingU.com will satisfy the demand for maternity collegiate shirts by maintaining inventory levels that allow for immediate shipping to customers.
- 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.
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.
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%
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.
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.
| 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:
- Completion of strategic business plan by April 1
- Obtain all NCAA licensing by May 1
- Negotiate t-shirt costs with supplier and screen printer by May 30
- Have first shipment of products delivered for fulfillment by July 1
- Have specifics for advertising plan in place by June 1
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
–
–
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.
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.
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.
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.
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
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 | |||||||||
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success!