Business Financial Plan Competition 20132014

Monta Vista High School Chapter #6477

Cupertino, California
Maya Kapur & Anna Tedijanto

TABLE OF CONTENTS
1.0 Executive Summary
1.1 A Growing Market
1.2 Assumptions
1.3 Strategies to Obtain Loan
2.0 Business Profile
2.1 Company Description
2.2 Legal Form
2.3 Mission Statement
2.4 Location
2.5 Long Term and Short Term Goals
3.0 Operations and Management
3.1 Business Facilities
3.2 Management and Organization
3.3 Workforce
4.0 Target Market
4.1 Market Analysis
4.2 SWOT Analysis
4.3 Solution to Market Risks
5.0 Financial Institution
5.1 Rationale
6.0 Loan Request Package
6.1 Loan Type, Amount, and Purpose
6.2 Itemized Planned Expenditures
6.3 Repayment
6.4 Projections for Company Future
7.0 Appendices
7.1 Templates
7.2 Income Statement
7.3 Balance Sheet
7.4 Cash Flow Statement
7.5 Works Cited

1.0 EXECUTIVE SUMMARY

In the past few decades, an influx of young people has established themselves in
the heart of Californias Silicon Valley, Cupertino. High schools in the local area,
such as Monta Vista and Lynbrook, provide an opportunity for a market in
customization with events like Homecoming and class apparel that consist of
sweaters and t-shirts. Furthermore, the sheer number of high school seniors in the
Cupertino area has also been noted as a potential market since these incoming
college students will be requiring college dorm and later on apartment furnishings.
Meanwhile, the young woman, either starting a new life on her own for the first time
or with a newborn will also crave the need for her own items in this new step in her
life. For instance, the young woman living on her own for the first time will want to
decorate her place with products that reflect her taste. The woman with the
newborn will want to provide her child with custom made blankets and cribs that
represent the mothers nurturing care and love.
All You is an independent retail store dedicated to providing quality, fashionable,
and customizable clothing, furniture, and accessories.
1.1 A Growing Market
In recent years, women and girls have sought out to find their individuality through
the clothes and accessories. Do-it-yourself projects and how-to videos are now all
over the Internet for the average person to try, and popular eateries, such as
Chipotle, Freebirds, Yogurtland, and Tatami Sushi have shown success by providing
their customers with choices. For example, the local Chipotle will serve
approximately 1,325 purchases on a weekly basis. It is a businesss first priority to
please its consumers, and with customizable products, All You can ensure that
customers will be content with their products.
1.2 Assumptions
Our first assumption is that the increase of high school students and young people
in Cupertino also indicates the growth of the desire for customizable goods. At the
local high schools, apparel for homecoming, class sweaters, and athletic apparel
need to be customized multiple times per year. Secondly, for young professionals
people starting their careers in such an affluent neighborhood, it can be assumed
that these people are working high income white collar jobs and are able to
financially afford higher cost goods like ones from All You. Finally, we assume this
stability in increase of economic growth in the area will be a direct representation of
its inhabitants and their income levels.
1.3 Strategies to Obtain Loan
As a start-up business during this period of economic recovery, All You understands
that receiving a generous loan package from the local banks may not be viable.

Instead, All Yous three partners in the business will obtain a $100,000 loan from
Wells Fargo and Company bank, the leading financial service company in supporting
start-up businesses.

2.0 BUSINESS PROFILE

2.1 Company Description
All You is an independent retail store that operates in the customizing goods market.
All You hopes to not only become an industry leader in offering a wide assortment of
quality customizable goods as well as already designed merchandise but also to
provide the clients with the best shopping experience and continue to foster interest
in the customizing world.
An example of providing the clientele with memorable experiences is in-store
birthday parties. This would be similar to Build-A-Bear or Color Me Mine birthday
parties, which both consist of the customization of specific items. Parents can easily
book a room at All You for a childs memorable event. At the party, the guests can
make anything customizable, ranging from apparel to mugs to blankets, after the
hosts have set a specific package from All You or a limit to how much a guest is
allowed to spend. All You provides the option of the hosts bringing the materials for
decorating themselves or asking All You to supply them. Then, after the party, the
children and their parents will have a personal piece to take home and admire, thus
making All You memorable.
2.2 Legal Form
All You will be registered as a C-corporation. This legal structure can limit the three
owners legal and financial liabilities due to the company being considered as
separate entities from the owners, resulting in double taxation. The advantages of
this legal form include enhanced credibility with manufacturers and suppliers as well
as tax deductible business expenses. Venture capitalists and financiers are more
interested in supporting C-corporations due to their lenience of ownership, due to
the fact that C-corporations are taxed separately from the owners of the company..
Finally, the ability to collect earnings for future expansion will be taxed at a lower
cost compared to other types of entities.
2.3 Mission Statement
All You aims to provide its customers with superior customizable products, tailored
to each individuals preferences and offering quality with affordability.
2.4 Location
All You will be located at Cupertino Crossroads, an up-and-coming outdoor shopping
plaza in Cupertino, California. All You will rent 4,000 square feet in the Crossroads,

located in the center of Cupertino, and close to popular shops, restaurants and
residential areas. This prime location will attract customers from the local
community college, De Anza College and two nearby high schools, Cupertino High
School and Monta Vista High School, all within two miles of the shopping center.
Additionally, two more community colleges and three other high schools would be
within ten miles of All You, increasing its accessibility and convenience. Cupertino
Crossroads has also experienced recent growth with new stores and restaurants like
Party City, Philz, and Freebirds - a sign of a growing popular destination for locals.

2.5 Long Term and Short Term Goals

All You will undergo a three-phase process to achieve its long and short-term goals.
Phase one consists of the initial processes necessary to establish the company and
construction of the retail store; phase two involves the focus on gaining market
share. The first two phases are defined as the short-term plan. The final phase will
be an expansionary phase that will endeavor to define All You as not merely a retail
store but a customizing experience.

Phase One: The initial focus is on establishing All You as a brand name company.
The infrastructure of the retail store is planned, manufacturing companies are

contacted and contracts are defined. After obtaining a $100,000 loan from Wells
Fargo, All You will penetrate the customizing goods market by hosting a grand
opening, sponsoring nearby high school seniors about to go to college and creating
discounts for possible customers. In addition, the online Facebook and Instagram
accounts will be made in order to grant customers easier access to merchandise
purchases, convenience for ordering equipment, and interaction between All You
and customers with design competitions for certain prizes. For the 6,000 square foot
warehouse, there will be one full time warehouse employee, which is the Director of
Business Relations, while working with 4 part time employees.
Phase Two: The latter short-term focus will be on securing at least a 30% primary
market and 25% secondary market share by Phase Two and developing strong, loyal
relationships with customers and manufacturers to create a reputable and
prestigious brand name in the local area. Throughout this process, additional
personnel will be recruited to help improve and enhance the All You business.
Phase Three: The final phase will focus on All Yous presence in the community and
to define the brand as a customizing experience. Birthday parties to customize
anything ranging from pillows to shirts will be held in the store or kits for at home
parties. We will be having social media contests to design new graphics that will
allow us to interact with our clientele on a more interesting and personal basis. This
is different than Phase One since these will be contests will happen consistently and
be used to create a loyal customer based, rather than just promote a new business.

3.0 OPERATIONS AND MANAGEMENT

3.1 Business Facilities
All Yous stand alone store is 50 by 80 feet and 4,000 square feet and is located
20740 Stevens Creek Blvd, Cupertino, CA 95014. In the front, on each side of the
store is 4 by 8 feet area for carts, 8 feet wide glass sliding doors, and in the middle
of the front is an 18 by 10 feet cash counter, where people pay and can inquire or
ask for help. In front of the cash counter, on each side of the store two or three
display areas to display contest winners designs, which will be available for
purchase. In the middle of the store are four shelving areas on both sides. On the
left side of the store is an area for large shelving and computers to view and create
designs that the machinery will bring to life. The machines are located after all the
shelving, to the back on the store, before the storage room. On the right side, is a
12 by 18 foot party room, a 12 by 14 feet party room, and two 12 by 8 feet
restrooms. At the back of the store, is a 12 by 12 feet staff lounge on the right side,
a back door, and a 12 by 30 storage room.
All Yous warehouse is 65 by 95 feet and 6,000 square feet. There is shelving and
one 12 by 12 office and a 12 by 18 area for cubicles. Due to the lack of warehouse
space in Cupertino, we have to outsource All Yous warehouse. The warehouse is

located on 2437 Zanker Road, San Jose, CA 95131.

Day of the Week

Store Hours

Warehouse Hours

Sunday

9 AM - 9 PM
(part time shift 6 hrs. each)

10 AM - 6 PM
(part time shift 4 hrs. each)

Monday

9 AM - 5 PM
(part time shift 4 hrs. each)

10 AM - 6 PM
(part time shift 4 hrs. each)

Tuesday

9 AM - 5 PM
(part time shift 4 hrs. each)

10 AM - 6 PM
(part time shift 4 hrs. each)

Wednesday

9 AM - 9 PM
(part time shift 6 hrs. each)

10 AM - 6 PM
(part time shift 4 hrs. each)

Thursday

9 AM - 9 PM
(part time shift 6 hrs. each)

10 AM - 6 PM
(part time shift 4 hrs. each)

Friday

10 AM - 10 PM
(part time shift 6 hrs. each)

10 AM - 6 PM
(part time shift 4 hrs. each)

Saturday

10 AM - 10 PM
(part time shift 6 hrs. each)

10 AM - 6 PM
(part time shift 4 hrs. each)

3.2 Management and Organization

Chairman and Chief Executive Officer (CEO) Clara Thompson will be responsible for
maintaining the business visions and strategies, cultivating the companys
charismatic culture, and administering the business capital allocation and
expenditures. As the CEO of this new startup, Thompson will adopt a collaborative
management decision style and will be involved with all aspects of the business,
including interaction with all employees. Thompsons daily tasks will range from
decisions on critical adjustments to allocating goods with All Yous suppliers.
Chief Financial Officer (CFO) Maya Kapur will be responsible for all the financial
record-keeping and financial advising to the CEO. This will include income
statements, cash flow projections, balance sheets, sources of funding, investment
approvals made in the company, and other fiscal documentation.
Chief Marketing Officer (CMO) Anna Tedijanto will be in charge of sales
management, merchandise pricing and market research. Tedijantos primary
engagements will consist of expediting All Yous advancements and increasing the
companys profit margin on a quarterly basis. Tedijantos other tasks will include
overseeing the development and execution of All Yous marketing strategies through
utilizing the social media outlets, Facebook and Instagram.

Director of Business Relations Tyler Eidelberg will maintain business partnerships

with all appropriate corporations. He will oversee all business liaisons, emphasizing
on ordering and managing shipments of merchandise necessary, as well as
preserving relationships with merchandising partners.
Director of Public Relations Jeremy Waters will work to build a brand image and
name for All You. He will manage the organization of promotional events, issue press
releases and represent the company at professional and community events.
3.3 Workforce
All You will hire five part-time employees, not including officers and directors, who
will work at the storefront to build the companys brand image and provide the best
service possible. Officers and directors will not be paid until All You has reached a
certain point of our development and deemed as profitable. Our part time
employees will be paid ten dollars an hour, above the minimum wage as the cost of
living in this area is significantly higher. We chose to hire numerous part time
employees instead of fewer full time employees as it will be more economical to pay
hourly wages rather than salaries. Employees will run the store-front by serving
clients by taking merchandise orders, supervising the customizing machines,
placing merchandise onto the regulated areas, and enhancing and personalizing
each clients encounter with All You. Criteria for the new employees include ability
to serve the customers with quality, understanding of the customizing process, and
a creative sense.The first five part time employees for the retail store are hired and
a solid company culture of customizing enthusiasts is cemented into place.
Meanwhile, the first four part time warehouse employees will serve under the
permanent full time Director of Business Relations, Tyler Eidelberg.
As the company develops, All You hopes to allow employees to take on more senior
positions and tasks, for the officers and directors to focus their attention on external
store affairs. New employees will be expected to continue cultivating the company
culture while remaining loyal to their original duties and tasks.

4.0 TARGET MARKET

4.1 Market Analysis
All You is located in Cupertino, a city with fairly healthy growth and development
despite the current economic situation. Cupertino has also been named one of
Americas Best Small Towns and one of the most educated small towns by Money
and Forbes magazine, respectively. The average listing price of housing in Cupertino
is $1,384,400, with a median income of $139,585; the California listing price
average is $400,000, with a median income of income of $61,400. Additionally,
Cupertino is developing into a bustling center of the Silicon Valley with distinguished
companies such as Apple, Seagate Technology, and Tesla, proving an existence of a

largely untapped market with huge potential for growth.

Primary Market
All Yous primary market is centered on teenage girls and young women, ranging
from ages fourteen to twenty-two. According to demographic research, there are
approximately 4,000 girls in Cupertino that fit this target market criteria. Girls, by
their high school years, grow out of the wearing-all-the-same-clothes-as-your-friends
stage of middle school, and begin vying for clothes and belongings that are more
tailored to them. Hence, All You starts the target market bracket at fourteen as this
is the age of highschool freshmen.

Secondary Market
As All You expands, we can begin tapping into our secondary market. This would be
young women and mothers ranging from the ages twenty two to thirty, just entering
the corporate world or starting a family. According to demographic research,
approximately 3,920 women fit this criteria in Cupertino. This age range of women
would be starting to purchase their first homes, condos, and apartments and
looking to decorate their homes to their personal preferences and tastes. All You
would provide this target market with customizable products, perfect for the young
woman, excited to decorate her first home or the new mother creating a unique
nursery for her child. In creating a special experience for these excited
homeowners, All You will be the perfect boutique to provide quality and one-of-akind products.
4.2 SWOT Analysis

4.3 Solution to Market Risks

The marketing risks listed above can be resolved due to All Yous unique selling
proposition and differentiation, as well as its focus on a specific niche in a vast
market. All You defines itself as a special customizing culture through the
opportunities of hosting of parties and complete personal design. Among these, All
You offers customers chances to enjoy All You at their own homes through the
special customizing kits sold in the store. Though All You does not have its own
website, a good and feasible option, we believe it is unnecessary because of All
Yous single store front and its target market being in very close range. We will fully
utilize social media like Facebook and Instagram, both popular with the target
markets generations. All You will have its own Facebook page with the address of
the store, our main focus, opportunity to post opinions or questions and chances for
clients to upload designs for competitions that will exhibit the winners own products
in the store.
To combat the narrow market and limited items available at All You, customers will
know exactly what All You can provide and customers can bring their own
belongings to customize if they choose not to purchase it in the store. Though there
are two other customizing stores in the area and popular websites like Customink
and Zazzle, All You can provide customers what they want exactly. For example, at
Monta Vista High School, bulk orders are constantly made for apparel for every
Homecoming Rally each year. However, on multiple occasions, these online
companies fail to deliver as the image on the website varies greatly from what is
delivered to the students. All You will overcome this disparity issue as clients are
able to see their creation as they are designing so and will not have any
discrepancies between their desires and final products.

5.0 Financial Institution

5.1 Rationale
In order for All You to grow and develop effectively, the store will take out several
loans. The loans will cover the costs of property rent and utilities, as well as staff
payroll. In addition, an additional loan will be needed to cover inventory costs.
Ideally, the loans will not only be flexible and reliable, but also competitively priced
with the lowest interest rate possible. Thus, fixed-rate loans will be more suitable
than adjustable loans despite the cheaper initial cost of the latter.
Possible sources for the loan are angel investors, venture capitalists, and
commercial banks. Angel investors provide the most flexibility, but may not be as
reliable as All You would like due to the adjustable nature of their loans. Venture
capitalists, on the other hand, provide reliability but not as much flexibility as the
risk of losing control of the company through an IPO or through acquisition
increases. Thus, the most fitting source for a loan is the commercial bank.
The commercial bank selected by All You is Wells Fargo and Company, chosen for its

low fixed interest rates, strong lines of credit, diversity of loans offered, as well as its
financial advising and its reputation as the number one bank in the nation for smallbusiness loans.
The loan to provide the capital necessary to pay for inventory will be avoided
entirely through the use of floor plan financing, notably used for car dealerships.
Through this system of loan, the vendor will evaluate the floor space, design a floor
plan and fill the space with displays and shelves. The merchandise will be advanced
and will be paid for 90 days after the loan is made, with the merchandise itself
serving as collateral. During this 90 day period, revenue from the sale of product
will be used to pay off overhead costs such as rent and loan payments.

6.0 Loan Request Package

In order to increase company development and expansion, All You will host store
events and publicize itself through the use of social media and viral marketing. A
loan package will be used to carry out this plan effectively and ensure an increasing
growth even into the companys future. The loan package will be partitioned into
phases to better accommodate the needs of All You. All expenses will be monitored
to ensure the responsible and effective usage of capital by the CEO and CFO. The
complete loan package is essential to the success of the store, as well as to
maintaining its competitiveness and profitability. All You will uphold its positive
credit by making loan repayments in a timely and consistent fashion to Wells Fargo
Bank.
6.1 Loan Type, Amount, and Purpose
All You is requesting a SBA 7(a) term loan of $100,000 at a fixed interest rate of
5.25%. The loan will be taken from the Small Business Association through Wells
Fargo and Company, and sports low fixed interest rates, equity financing, financial
advising, as well as variable term rates. The loan will cost 3% ($15,000) in SBA
guarantee fees, $1,000 in Wells Fargo packaging fees, and a minimum of $50 in
filing fees for a total of $16,050 in fees. These fees will be paid out of pocket.
We chose Wells Fargo and Company as our source of financial aid for several
reasons. First, the partners parents have an established connection with Wells
Fargo because of current bank accounts and long lines of credit. This reputation and
trust will allow us to obtain a loan more easily from the company. Additionally, Wells
Fargo is the number one bank for providing loans to small businesses that are just
starting up, making it ideal for All You, a company consisting of only one store and
one warehouse.
The complete loan package will be used to pay for the rent and utilities costs of the
4,000 square foot store space and 6,000 warehouse space. It will also pay for staff

payroll, as well as finance store events to generate publicity.

6.2 Itemized Planned Expenditures
Item

Cost

Store and Warehouse Property Rent + Utilities

$100,000

Staff Training and Wages

$78,180

6.3 Repayment
All You will take out one loan from Wells Fargo, an SBA 7(a) term loan in the amount
of $100,000. The SBA 7(a) term loan will be repaid similarly over a period of 5 years.
All You will work with Wells Fargo to ensure timely and proper repayment with
reasonable terms, to prevent any undue financial burdens on either of the involved
parties.
The first repayment will be made at the end of the first fiscal year. This will include
repayments on both loans taken. The estimated expenditures have been planned
and a reasonable amount of unspent money has been set aside for emergency
expenses, as seen in Section 6.2. The spending of capital has been documented and
explained in Section 6.1.
6.4 Projections for Company Future
In order to achieve and maintain stability, All You will need to acquire a sufficient
and sustainable customer base. This will provide a steady source of income that will
prevent the company from defaulting on outstanding loans and will allow the
company stay profitable.
Based on the partners strong credit score and expected return on investments, as
well as their continuous commissioned research on the market industry and risk
management strategy, All You has confidence in its capacity to overcome initial
start-up costs and expand profitably in the years to come.

7.0 Appendices
7.1 Income Statement

7.2 Balance Sheet

7.3 Cash Flow Statement

7.4 Works Cited

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"City of Cupertino Santa Clara County." Bay Area Census. N.p., n.d. Web. 27 Nov. 2014.
<http://www.bayareacensus.ca.gov/cities/Cupertino.htm>.

"Cupertino Population and Demographics." Area Connect. N.p., n.d. Web. 4 Jan. 2014.
<http://cupertino.areaconnect.com/statistics.htm>.
"Fact Sheet: History and Geography." City of San Jose: Capital of Silicon Valley. City of San Jose, 2012.
Web. 6 Feb 2012.
<http://www.sanjoseca.gov/planning/data/fact_sheet/FactSheet.pdf>.
"San Jose Home Prices and Heat Map." Trulia. Trulia, Inc., 2012. Web. 6 Feb 2012.
<http://www.trulia.com/home_prices/California/San_Jose-heat_map/>.

Loopnet. N.p., n.d. Web. 9 Jan. 2014.

<http://www.loopnet.com/Listing/17849478/2437-Zanker-Road-San-Jose-CA/>.

"Photo Gallery." Cupertino Crossroads. City of Cupertino, n.d. Web. 29 Jan. 2014.
<http://www.cupertinocrossroads.com/Photo-Gallery.html>.

Reuting, Jennifer. "Entity Types - Which One Is Best For Business?" My LLC. N.p., n.d. Web. 29 Dec.2013.
<http://www.myllc.com/entity-types.aspx>.