Chart: Highlights
1.1 Objectives
To provide a wide range of merchandise at reasonable prices.
To achieve a healthy profit margin within the first year.
To achieve a modest net profit by year two.
To be an active and vocal member of the community, and provide continual re-investment through participation in community activities and financial contributions.
1.2 Mission
The Dollar Store provides a variety of interesting merchandise options at bargain prices. Dedicated to customer service the Dollar Store will give its patrons the kind of service that is respectful and prompt. Employees of the Dollar Store will also be treated in a professional manner with a rewarding work environment and fair compensation. The Dollar Store wants each customer to feel as though he/she has gotten Fifth Avenue treatment at a bargain price.
1.3 Keys to Success
To succeed in this business we must:
Sell a broad range of products.
Provide for the satisfaction of 100% of our customers.
Be an active member of the community.
Encourage customer input.
2.0 Company Summary
The Dollar Store sells products and provides excellent customer service for the general public. We have leased a retail store which we use to market and merchandise our products. It is located one mile from Main St. on River Way in Bend, Oregon. The company was incorporated on January 2.
2.1 Company Ownership
The Dollar Store is a privately held corporation. It will be registered as a Subchapter S, with ownership Ted Brinkman (60%), Jim Spencer (40%).
2.2 Start-up Summary
The building will be leased with a down payment of $3,000 on a four year lease.
Start-up costs will be financed through a combination of owner investment and short-term borrowing. The start-up chart shows the distribution of financing.
Other miscellaneous expenses include:
Marketing/advertising consultancy fees for assistance in designing our grand-opening ads and brochures.
Legal fees for corporate organization filings.
Retail merchandising/designing fees for store layout and minor renovations.
Table: Start-up Funding
Start-up Funding |
|
Start-up Expenses to Fund |
$13,000 |
Start-up Assets to Fund |
$73,500 |
Total Funding Required |
$86,500 |
|
|
Assets |
|
Non-cash Assets from Start-up |
$31,000 |
Cash Requirements from Start-up |
$42,500 |
Additional Cash Raised |
$0 |
Cash Balance on Starting Date |
$42,500 |
Total Assets |
$73,500 |
|
|
|
|
Liabilities and Capital |
|
|
|
Liabilities |
|
Current Borrowing |
$0 |
Long-term Liabilities |
$0 |
Accounts Payable (Outstanding Bills) |
$6,000 |
Other Current Liabilities (interest-free) |
$500 |
Total Liabilities |
$6,500 |
|
|
Capital |
|
|
|
Planned Investment |
|
Ted Brinkman |
$40,000 |
Jim Spencer |
$30,000 |
Other |
$10,000 |
Additional Investment Requirement |
$0 |
Total Planned Investment |
$80,000 |
|
|
Loss at Start-up (Start-up Expenses) |
($13,000) |
Total Capital |
$67,000 |
|
|
|
|
Total Capital and Liabilities |
$73,500 |
|
|
Total Funding |
$86,500 |