Table of Contents

1.0 Executive Summary Highlights 1.1 Objectives 1.2 Mission 1.3 Keys to Success 2.0 Company Summary 2.1 Company Ownership 2.2 Start-up Summary Start-up Start-up 2.3 Company Locations and Facilities 3.0 Products 3.1 Product Description 3.2 Competitive Comparison 3.3 Sales Literature 3.4 Sourcing 3.5 Technology 3.6 Future Products 4.0 Market Analysis Summary 4.1 Market Segmentation Market Analysis (Pie) Market Analysis 4.2 Industry Analysis 4.2.1 Industry Participants 4.2.2 Distribution Patterns 4.2.3 Competition and Buying Patterns 4.2.4 Main Competitors 5.0 Strategy and Implementation Summary 5.1 Marketing Strategy 5.1.1 Pricing Strategy 5.1.2 Promotion Strategy 5.2 Sales Strategy 5.2.1 Sales Forecast Sales Monthly Sales Forecast 5.2.2 Sales Programs

5.2.3 Sales Goals 6.0 Management Summary 6.1 Organizational Structure 6.2 Management Team 6.3 Management Team Gaps 6.4 Personnel Plan Personnel 7.0 Financial Plan 7.1 Important Assumptions General Assumptions 7.2 Key Financial Indicators Benchmarks 7.3 Break-even Analysis Break-even Analysis Break-even Analysis 7.4 Projected Profit and Loss Profit and Loss 7.5 Projected Cash Flow Cash Cash Flow 7.6 Projected Balance Sheet Balance Sheet 7.7 Business Ratios Ratios

Artificial flowers Import business plan

1.0 Executive Summary

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Fantastic Florals, Inc. (FFI) imports exclusively handmade flowers by artisans from Indonesia. The firm's main office is in Anytown, Oregon, and has a customs house broker in Seattle, Washington to deal with related matters. FFI quality products are unique and exclusive, and its target consumers are women with upper-middle to upperend incomes. FFI's competitive edge is that the products are 100% handmade, unlike competitor's products. By this

fact, the firm hopes to attract people that value the artistry of producing silk flowers. Since FFI products are mostly silk flowers and silk hair accessories, it considers itself to be in the retail gift market, although some consumers purchase the product for themselves. For the starting year 1995, the company plans to attract manufacturer reps and retailers to distribute the products by attending the Silk '94 trade show in Chicago, Illinois. This trade show is where suppliers of silk flowers and other silk products and buyers meet and arrange deals to sell the product. FFI projected sales are approximately $1.1 million by the end of the first year of operation. Also during this year, FFI plans to open an exclusive gift shop for our product in Anytown at the Third Street Public Market, leasing for five years. For the following year, the company plans to expand to direct mail catalog sales by being in an established catalog, with a similar target market. FFI projects sales of $1.5 million in 1996. During the third year, FFI plans to do both selling through suppliers, catalogs, and the exclusive gift store in Anytown, projecting sales to be nearly $2 million. The FFI family will expand in 1997 by adding 10 different kinds of flowers and flower arrangements. Maintaining an average gross margin of 25 percent is very realistic. The projected rate of annual growth in sales is 25 percent.

Highlights

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1.1 Objectives

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1. Achieve 1995 sales of $1.1 million. 2. Open gift shop in Anytown at Third Street Public Market with five-year lease. 3. For 1996, expand into direct mail catalogs. 4. Maintain gross margin of 25 percent. 5. Establish annual growth rate of 25 percent. 6. Expand product family by adding 10 different kinds of flowers and flower arrangements in 1997.
1.2 Mission

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FFI's mission is to become a recognized importer of artisan quality silk gift items in the United States. The company guarantees 100 percent customer satisfaction and values friendly service. FFI's purpose is to increase customer appreciation of handmade silk flowers and other silk products and to provide customers with beautiful unique artistic decorations.

1.3 Keys to Success

Keys to success for Fantastics Florals Inc. are: 1. 2. 3. Product quality. Customer service. Access to manufacturers and distribution channels.

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4.

Controlling fixed and variable costs during first two years.

.0 Company Summary

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Fantastic Florals, Inc. imports silk flowers and other silk accessories products from artisans in Indonesia and distributes the products to customers in the United States. The customers are retail stores and wholesalers who want imported silk flowers and accessories products, targeting women in middle-upper to upper-end income as the end user of the products.

2.1 Company Ownership

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Fantastic Florals, Inc. is a privately held Anytown corporation. Suzy Rosemadder, FFI's founder, is the majority owner. Several members of the board of directors also hold minority stock positions.

2.2 Start-up Summary

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Start-up costs are approximated at $75,000, which primarily consists of product costs and expenses associated with establishing a marketing program and opening up FFI's first distribution center.

Start-up Requirements Start-up Expenses Legal Insurance Rent Other Total Start-up Expenses Start-up Assets Needed Cash Balance on Starting Date Start-up Inventory Other Current Assets $70,000 $0 $0 $1,000 $600 $1,300 $200 $3,100

Total Current Assets Long-term Assets Total Assets Total Requirements Funding Investment Investor 1 Investor 2 Other Total Investment Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Current Liabilities Long-term Liabilities Total Liabilities Loss at Start-up Total Capital Total Capital and Liabilities

$70,000 $0 $70,000 $73,100

$35,000 $0 $0 $35,000

$3,100 $35,000 $0 $38,100 $0 $38,100 ($3,100) $31,900 $70,000

Start-up

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2.3 Company Locations and Facilities

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FFI's headquarters are located in Anytown at the founder's home, 1234 Main Street, Anytown, OR 97440. It will also have a 600-square foot retail store at the Third Street Public Market, which will serve as both an outlet and test market.

.0 Products

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FFI imports silk flowers and other silk accessories. These products provide consumers with a wide variety of product lines and allows for individual customization of orders.

3.1 Product Description

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Fantastic Florals, Inc. has a variety of silk flowers and products from which to choose. During the first two years, the product line will include: Tulips and roses. Two kinds of flower arrangements. Silk scarf and silk hair accessories. Seasonal bouquets.

3.2 Competitive Comparison

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Fantastic Florals, Inc. products contain these features that distinguish them from those produced by competitors:

FFI products are 100 percent handmade by Indonesian artisans and are then The quality of the silk flowers is obvious, even to the untrained eye. There is FFI silk hair accessories are unique, and no similar product is available in the

imported into the United States, which will be emphasized in all marketing efforts. no use of plastic stems, which makes FFI products look more realistic. domestic market. These products will be protected by owning a patent. The product features beautiful embroidery on its edge, which will cost much more if it were to be produced in the United States.

3.3 Sales Literature

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Copies of FFI products, more specifically bouquets and other arrangements are included. Upon production of advertisements and brochures, these will be added.

3.4 Sourcing

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FFI imports products from artisans in Indonesia and then hires brokers in Seattle to take care of the legal requirements and paperwork. Currently, there are no significant obstacles in importing the products into the United States. According to the U.S. Customs Office in Seattle, there are no quotas for artificial products imported from Indonesia. FFI will benefit from the duty-free treatment under the new GSP rules.

3.5 Technology

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Some FFI products are protected by patents, although the majority of products and services are not dependent on patentable inventions nor process technology.

3.6 Future Products

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Fantastic Florals, Inc. plans to introduce ten new kinds of flowers and silk products every year for the first four years, with aggressive advertising at the beginning of each year that introduces these new flowers. After establishing a firm reputation, FFI plans to import products other that silk products, but all will still be related to flowers. These will be produced by Indonesian artisans in various cities in the original region, all managed by the same artist. The products will include silk jewelry boxes, mirrors, and china, all with hand-painted flowers.

4.0 Market Analysis Summary

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Currently, the market for permanent floral products is rapidly expanding. According to 1993 statistics, the value of permanent floral products for the 1992 fiscal year was over $2.2 billion, and it still continues to grow. The gift industry is also growing, as households headed by 45- to 54-year-olds are the biggest gift purchasers.

4.1 Market Segmentation

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Since Fantastic Florals, Inc. only deals with a few, select products, segmentation is minimal. Two segments currently exist: 1. 2. Gift purchasers-mostly women over 30 with a relatively large amount of Floral collectors-same target as above, but with higher standards of quality.

discretionary income.

Market Analysis (Pie)

Click to Enlarge Market Analysis Potential Growth Customers Gift Purchaser s Floral Collectors Other Total 1995 1996 1997 1998 1999 CAGR

6% 275,000 291,500 308,990 327,529 347,181 6.00%

4% 250,000 260,000 270,400 281,216 292,465 4.00% 3% 175,000 180,250 185,658 191,228 196,965 3.00% 4.56% 700,000 731,750 765,048 799,973 836,611 4.56%

4.2 Industry Analysis

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There are two industries for Fantastic Florals, Inc.: the gift market industry and the silk flower and accessories industry. In 1991, the average American household gave 5.8 percent of its total spending to gifts, a 0.3 percent increase from 1988. Households headed by 45- to 54-year-olds are the biggest giftgivers. These consumers spend an average of $1,450 on gifts, which is 62 percent more than the average household. In addition, married couples without children are the most generous gift-givers. These households spend 48 percent more than average on gifts. Households with incomes of over $65,000 spent 135 percent more than average on gifts, while they also account for 58 percent of the glassware gift market and 62 percent of the plant and flower gift market. By the year 2000, it is estimated that households headed by 35- to 54-year-olds will account for 63 percent of the gift market. In the silk flowers and accessories industry, flowers alone accumulated sales over $1.95 billion in 1992. This category still continues to grow. Considering the information and analysis of both industries, FFI believes that its products have the opportunity to be successful in the market. The growing gift industry and silk flower and accessories industry imply that there is a growing demand for these products. Because there is no similar product currently available in the U.S. market, FFI has a huge opportunity in the silk accessory industry.

4.2.1 Industry Participants

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There are currently no direct competitors in the silk hair accessories market, and the silk flowers industry is very unconcentrated. Few wholesalers distribute directly to the consuming public, and the majority of retail stores only offer a minimal selection with varying quality. Both industries, however, are predicted to develop further, while the gift industry also continues to grow. As the markets evolve, the key issue will be relations with suppliers. As there are few suppliers of silk flowers and accessories, competition is likely to increase substantially.

4.2.2 Distribution Patterns

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Distribution channels are currently relatively simple. There is one artist in Indonesia who provides all products for FFI. The products are shipped directly to FFI facilities, which are then

sold to consumers. There are no significant obstacles to importing these products, and there are no import quotas.

4.2.3 Competition and Buying Patterns

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According to the information from Silk '94, the wholesale buyers of silk flowers and accessories are: 53 percent - Floral Wholesalers. 19 percent - Craft Chain Stores, Floral Chain Stores, Gift Chain Stores, 19 percent - Manufacturers/Assemblers. 9 percent - Home Centers, Membership Clubs, Nursery and Garden Centers,

Variety Chain Stores, Fabric Centers.

Catalog/Mail Order, etc.

4.2.4 Main Competitors

Fantastic Florals, Inc. current competitors in the surrounding area are: Flower markets. Floral wholesalers. Craft stores. Gift shops.

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5.0 Strategy and Implementation Summary

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FFI focuses on providing high-quality products to consumers with outstanding service. Customization of orders and specialization of services will create a competitive advantage. FFI is developing the organization by beginning with few employees to reduce costs. All current employees are very motivated, resulting in a positive and strong company culture. This culture will carry over to all new trainees, which is a prime objective for the expansion of FFI. The first year of service will be the most important, as FFI plans to establish strong relations with both suppliers and buyers. These relationships will help FFI to grow and evolve in this industry.

5.1 Marketing Strategy

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FFI is focusing on silk flowers and accessories, targeting women with upper-

end income as the end customers, and targeting sales reps that distribute to exclusive gift retail stores and mail-order catalog companies. FFI plans to be an exhibitor at Silk '95, having already collected all the necessary information at Silk '94. This trade show is the largest international silk flower and accessories exhibition attended by multiple buyers including, but not limited to, catalog/mail-order, floral wholesalers, chain stores, craft stores and wholesalers, visual display companies, etc. This will be a good opportunity to start and get exposure to FFI's product. FFI plans to attract the right sales rep and mailorder company for its products through this trade show, which is realistic since Silk '95 is the biggest and most reputable permanent and silk accessories trade show in the United States. For the first year, FFI will both lease a space for a retail store at the Third FFI will also send some samples to "Blossom" catalog, who does mail orders Street Public Market and supply its products to buyers that FFI attains though Silk '95. for silk flowers and other silk accessories. The purpose of this is to reach more customers while doing only minimal research.

5.1.1 Pricing Strategy

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FFI sets standard prices for each product line. These prices are not expected to experience significant change over the next three years. Tulips and Roses - $2.25 Arranged Flower 1 - $18.99 Arranged Flower 2 - $39.99 Silk Scarf - $15.99 Other hair accessories - $9.99 Other/Seasonal bouquet - $59.99

These prices exhibit quality products at reasonable costs to consumers.

5.1.2 Promotion Strategy

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The goal of FFI is to promote its products as fine collectibles, either for the collector or the gift-buyer. This will be done through in-store promotions, direct-mail advertisements, appearances in related catalogs, and publicity events.

5.2 Sales Strategy

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Products will be distributed through the retail store in Anytown at Third Street Market or by pre-orders until FFI is able to further expand. Sales is one area that needs to be developed in order to better serve the consumer and meet objectives.

5.2.1 Sales Forecast

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As indicated in the table, sales are forecasted to remain relatively constant throughout 1995, with growth predicted in both 1996 and 1997. Sales, however, will tend to fluctuate depending on the month and the season.

Sales Monthly

Click to Enlarge Sales Forecast Unit Sales Tulips and Roses Arranged Flowers 1 Arranged Flowers 2 Silk Scarf Other hair accessories Other/Seasonal bouquet Catalog sales Other 1995 28,300 5,000 5,000 10,800 12,000 8,200 0 0 1996 35,165 6,501 6,500 13,910 15,600 10,660 20,000 0 1997 45,714 8,451 8,450 18,083 20,280 13,858 30,000 0

Total Unit Sales Unit Prices Tulips and Roses Arranged Flowers 1 Arranged Flowers 2 Silk Scarf Other hair accessories Other/Seasonal bouquet Catalog sales Other Sales Tulips and Roses Arranged Flowers 1 Arranged Flowers 2 Silk Scarf Other hair accessories Other/Seasonal bouquet Catalog sales Other Total Sales Direct Unit Costs Tulips and Roses Arranged

69,300 1995 $2.25 $18.99 $39.99 $15.99 $9.99 $59.99 $0.00 $0.00

108,336 1996 $2.00 $19.00 $40.00 $16.00 $10.00 $60.00 $2.25 $0.00

144,836 1997 $2.00 $19.00 $40.00 $16.00 $10.00 $60.00 $2.25 $0.00

$63,675 $94,950 $199,950 $172,692 $119,880 $491,918 $0 $0 $1,143,065 1995 $1.50 $11.99

$70,330 $123,519 $260,000 $222,560 $156,000 $639,600 $45,000 $0 $1,517,009 1996 $1.50 $12.00

$91,428 $160,569 $338,000 $289,328 $202,800 $831,480 $67,500 $0 $1,981,105 1997 $1.50 $12.00

Flowers 1 Arranged Flowers 2 Silk Scarf Other hair accessories Other/Seasonal bouquet Catalog sales Other Direct Cost of Sales Tulips and Roses Arranged Flowers 1 Arranged Flowers 2 Silk Scarf Other hair accessories Other/Seasonal bouquet Catalog sales Other Subtotal Direct Cost of Sales
5.2.2 Sales Programs

$27.99 $8.50 $6.50 $42.00 $0.00 $0.00

$28.00 $8.50 $6.50 $42.00 $1.49 $0.00

$28.00 $8.50 $6.50 $42.00 $1.49 $0.00

1995 $42,450 $59,950 $139,950 $91,800 $78,000 $344,400 $0 $0 $756,550

1996 $52,748 $78,012 $182,000 $118,235 $101,400 $447,720 $29,800 $0 $1,009,915

1997 $68,571 $101,412 $236,600 $153,706 $131,820 $582,036 $44,700 $0 $1,318,845 [back to top]

Floral wholesalers: Develop awareness about the quality of FFI's products in

order to create demand within the first two months. For the next year, provide incentives and price-promotions to encourage wholesalers to purchase FFI products. Retail Stores: Offer low-priced products in exchange for significant shelf space and access to consumers. By the end of the first year, have FFI products distributed in selected stores with minimal constraints on price and location.

Manufacturers/Assemblers: Provide FFI products at a reduced rate

corresponding to volume of purchase.

5.2.3 Sales Goals

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End of 1995 - Sales of $1.1 million. July 1995 - Open exclusive gift shop at Third Street Market in Anytown. 1996 - Sales of $1.5 million. July 1996 - Expand distribution into catalog/direct mail. 1997 - Sales of $2 million.
6.0 Management Summary

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Fantastic Florals, Inc. will start with three qualified and experienced employees. An increase to six employees will likely be needed in three to five years. FFI will continue to have a customs-house broker in Seattle to take care of the import-related matters and sales representatives who are compensated based on commission.

6.1 Organizational Structure

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Fantastic Florals, Inc. will be a Subchapter-S corporation. Legal matters and written agreements are being handled by an FFI consultant lawyer. The company is organized into three main functional areas: Sales and marketing. Finance and administration. Communication.

6.2 Management Team

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Suzy Rosemadder: President and founder. Graduated from the University of

North Carolina (major: management). Originally from Indonesia and has worked for a silk flower company there for five years. Familiar with the Indonesian government and key people there. Angela Stalks: On Board of Directors. Previously manager of an exclusive gift Steven Gardener: On Board of Directors. Will be in charge of marketing and shop in Dallas, Texas for ten years. MBA in Finance from University of Minnesota. sales. Graduated from Cornell University with B.S. degree in marketing and public relations.

6.3 Management Team Gaps

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Each of the three employees is responsible for managing his or her area of expertise. The problems with having only one individual in charge of a department are as follows: 1. 2. 3. Lack of understanding of other departments. Minimal management experience. Sole control over all operations.

6.4 Personnel Plan

The personnel plan indicates one employee for each department: Production/Fulfillment. Sales and Marketing. Administration.

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Beginning in 1996, there will be two employees in both Sales and Marketing and Administration.

Personnel Plan 1995 Production Sales and Marketing Administration Other Other Total People Total Payroll $14,400 $14,400 $14,400 $0 $0 0 $43,200 1996 $16,000 $32,000 $32,000 $0 $0 0 $80,000 1997 $18,000 $54,000 $36,000 $0 $0 0 $108,000

. Financial Plan
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7.0 Financial Plan

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Fantastic Florals, Inc. projects the gross margin to be at approximately 25

percent. Sales projection for 1995 is at $1.1 million, increasing to $1.5 million in 1996 and $2 million in 1997. FFI is looking for an investor who would invest $75,000 for 20 percent of the Cash-flow analysis, balance sheet, business ratio, break-even analysis, and company. other financial details are shown in the appendix.

7.1 Important Assumptions

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General assumptions in FFI's financial plan indicate the assumption of a stable economy without any major recessions or booms in both the U.S. and Indonesian economies.

General Assumptions 1995 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Sales on Credit % Other
7.2 Key Financial Indicators
Key financial indicators for Fantastic Florals, Inc. include: Constant gross margins. Sales on credit. Net worth. Return on equity.

1996 2 15.00% 10.00% 40.00% 50.00% 0

1997 3 15.00% 10.00% 39.17% 50.00% 0 [back to top]

1 15.00% 10.00% 39.17% 50.00% 0

Benchmarks

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7.3 Break-even Analysis

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FFI's break-even analysis indicates that the firm has a strong balance of costs and sales. The break-even point is at just over 1200 units and close to $21,000.

Break-even Analysis

Click to Enlarge Break-even Analysis: Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost $17.00 $11.00 1,228 $20,870

Estimated Monthly Fixed Cost

7.4 Projected Profit and Loss

$7,366 [back to top]

Fantastic Florals, Inc. projects profits for every month of 1995 and on into both 1996 and 1997, in addition to positive growth margins for the same time periods.

Pro Forma Profit and Loss 1995 Sales Direct Costs of Goods Shipping etc. Cost of Goods Sold Gross Margin Gross Margin % Expenses: Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and $43,200 $84,455 $2,400 $0 $2,400 $7,200 $15,600 $7,776 $0 -----------$163,031 $183,249 $80,000 $118,860 $2,640 $0 $2,640 $7,920 $17,160 $14,400 $0 -----------$243,620 $219,215 $108,000 $162,302 $2,904 $0 $2,904 $8,712 $18,876 $19,440 $0 -----------$323,138 $290,435 $1,143,065 $756,550 $40,235 -----------$796,785 $346,280 30.29% 1996 $1,517,009 $1,009,915 $44,260 -----------$1,054,175 $462,835 30.51% 1997 $1,981,105 $1,318,845 $48,688 -----------$1,367,533 $613,573 30.97%

Taxes Interest Expense Taxes Incurred Net Profit Net Profit/Sales

7.5 Projected Cash Flow

$7,292 $69,503 $106,455 9.31%

$2,250 $86,786 $130,179 8.58%

$625 $113,509 $176,301 8.90% [back to top]

FFI's cash balance is expected to increase each year, providing the necessary capital for expansion into different product lines and distribution channels.

Cash

Click to Enlarge Pro Forma Cash Flow 1995 Cash Received Cash from Operations: Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash $571,533 $485,730 $1,057,262 $758,505 $730,435 $1,488,939 $990,553 $955,716 $1,946,268 1996 1997

Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Longterm Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations: Cash Spending Payment of Accounts Payable Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $134,076 $894,116 $160,127 $1,241,016 $207,751 $1,597,987 $0 $0 $0

$48,889

$0

$0

$0

$0

$0

$0 $0 $0 $0 $1,106,151

$0 $0 $0 $0 $1,488,939

$0 $0 $0 $0 $1,946,268

1995

1996

1997

$1,028,192

$1,401,143

$1,805,738

Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Longterm Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance

$62,221

$13,332

$8,336

$0

$0

$0

$0

$0

$0

$0 $0 $0 $1,090,413

$0 $0 $0 $1,414,475

$0 $0 $0 $1,814,074

$15,738 $85,738

$74,464 $160,203

$132,194 $292,396 [back to top]

7.6 Projected Balance Sheet

The balance sheet indicates a positive and ever-increasing net worth for FFI, expected to reach close to $440,000 by 1997.

Pro Forma Balance Sheet Assets Current Assets Cash Accounts Receivable Inventory Other Current 1995 $85,738 $85,803 $133,182 $0 1996 $160,203 $113,873 $177,784 $0 1997 $292,396 $148,710 $232,168 $0

Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital 1995 $142,300 $21,668 $0 $163,968 1996 $169,950 $8,336 $0 $178,286 1997 $220,496 $0 $0 $220,496 $0 $2,400 ($2,400) $302,323 $0 $5,040 ($5,040) $446,819 $0 $7,944 ($7,944) $665,329 $304,723 $451,859 $673,273

$0 $163,968 $35,000 ($3,100) $106,455 $138,355

$0 $178,286 $35,000 $103,355 $130,179 $268,533

$0 $220,496 $35,000 $233,533 $176,301 $444,834

Total Liabilities and Capital Net Worth

7.7 Business Ratios

$302,323 $138,355

$446,819 $268,533

$665,329 $444,834 [back to top]

The ratios illustrated in the table indicate strong, consistent growth. Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5193, Flowers and Florist's Supplies, are shown for comparison.

Ratio Analysis 1995 Sales Growth Percent of Total Assets Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth 28.38% 44.05% 0.00% 100.79% -0.79% 100.00% 25.49% 39.79% 0.00% 101.13% -1.13% 100.00% 22.35% 34.90% 0.00% 101.19% -1.19% 100.00% 6.70% 10.40% 26.40% 43.50% 56.50% 100.00% 0.00% 1996 32.71% 1997 30.59% Industry Profile -8.50%

54.24% 0.00% 54.24% 45.76%

39.90% 0.00% 39.90% 60.10%

33.14% 0.00% 33.14% 66.86%

19.50% 21.40% 40.90% 59.10%

Percent of Sales Sales Gross Margin Selling, General & Administrativ e Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts 6.66 6.66 6.66 n.a 1.86 1.05 54.24% 2.53 1.54 39.90% 3.05 2.00 33.14% 2.09 1.03 40.90% 100.00% 30.29% 100.00% 30.51% 100.00% 30.97% 100.00% 50.80%

21.06%

21.93%

22.19%

34.40%

1.05%

0.89%

0.76%

0.20%

16.03%

14.45%

14.66%

1.50%

127.18%

80.80%

65.15%

1.10%

58.20%

48.56%

43.56%

1.90%

1995 9.31% 76.94%

1996 8.58% 48.48%

1997 8.90% 39.63% n.a n.a

Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test 0.26 0.29 0.34 n.a $140,755 25.13 $273,573 97.42 $452,778 464.55 n.a n.a 1.19 1.00 0.66 1.00 0.50 1.00 n.a n.a 43 8.00 48 6.50 48 6.43 n.a n.a

7.26

7.46

7.48

n.a

26 3.78

45 3.40

43 2.98

n.a n.a

54% 0.52

40% 0.90

33% 1.33

n.a n.a

Sales/Net Worth Dividend Payout

8.26 0.00

5.65 0.00

4.45 0.00

n.a n.a

Health club business plan 1.0 Executive Summary [back to top] Corporate Fitness will serve Seattle-area businesses, helping them to become more productive, while lowering their overall costs. Our business is based on two simple facts: 1. Healthy employees are more productive than chronically ill employees. 2. It costs less to prevent injuries or illnesses than to treat them after they occur. At Corporate Fitness, we tie worker productivity directly to the health care issue. We believe that traditional approaches to the current health care crisis are misdirected. These traditional efforts are what we call reactive--that is, they wait until after the worker has been stricken with illness or injury, and then pay for the necessary treatments. Our approach, which emphasizes prevention and good health promotion, is much more proactive. By helping employees change their behavior patterns and choose more healthy lifestyles, Corporate Fitness will lower companies' health care expenditures, while raising worker productivity. Health care expenditures will decrease due to reduced medical insurance premiums, reduced absenteeism, reduced turnover rates, reduced

worker's compensation claims, reduced tardiness, shorter hospital stays, etc. The state of America's health care crisis, coupled with current demographic changes, threaten to not only exacerbate the crisis, but further erode worker productivity as well. These environmental factors coupled with the local competitive situation signal a favorable opportunity in this market. We feel the time is right for Corporate Fitness.
Highlights

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1.1 Objectives
1. area. 2. 3. Create working relationships with 20 companies by the end of 1995. Expand Corporate Fitness into Portland, Oregon by the end of 1996.

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Provide wellness strategies/programs to businesses in the downtown Seattle

1.2 Mission

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Corporate Fitness is a health service that helps businesses and individual workers attain one of the greatest gifts of all--that of good health. Personal gains, such as improved self-esteem and self-motivation, combined with measurable benefits will create tremendous advantages for both the employer and the employee.

1.3 Keys to Success

Corporate Fitness' keys to success are: Marketing services to companies and individuals.

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Recruitment of experienced managerial talent. Dedication and hard work of the founders. Raising productivity. Lowering overall costs.

Organic restaurant business plan 1. Executive Summary go to: Table of Contents | <-- Previous Page | Next Page -->

1.0 Executive Summary

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Studio67 is a new medium-sized restaurant located in a trendy neighborhood of Portland, Oregon. Studio67's emphasis will be on organic and creative ethnic food. An emphasis on organic ingredients is based on Studio67's dedication to sustainable development. Additionally, the restaurant procures local foods when possible, reducing their dependence on fossil foods used for transportation. Services Studio67 offers Portlanders a trendy, fun place to have great food in a social environment. Chef Mario Langostino has a large repertoire of ethnic ingredients and recipes. Studio67 forecasts that the majority of purchases will be from the chef's recommendations. Ethnic recipes will be used to provide the customers with a diverse, unusual menu. Chef Mario will also be emphasizing healthy dishes, recognizing the trend within the restaurant industry for the demand for healthy cuisine.
Customers Studio67 believes that the market can be segmented into four distinct groups

that it aims to target. The first group is the lonely rich which number 400,000 people. The second group that will be targeted is young happy customers which are growing at an annual rate of 8% with 150,000 potential customers. The third group is rich hippies who naturally desire organic foods as well as ethnic cuisine. The last group which is particularly interested in the menu's healthy offerings is dieting women which number 350,000 in the Portland area. Management Studio67 has assembled a strong management team. Andrew Flounderson will be the general manager. Andrew has extensive management experience of organizations ranging from six to 45 people. Jane Flap will be responsible for all of the finance and accounting functions. Jane has seven years experience as an Arthur Andersen CPA. Jane's financial control skills will be invaluable in keeping Studio67 on track and profitable. Lastly, Studio67 has chef Marion Langostino who will be responsible for the back-end production of the venture. Chef Mario has over 12 years of experience and is a published, visible fixture in the Portland community. Most important to Studio67 is the financial success which will be achieved through strict financial controls. Additionally, success will be ensured by offering a highquality service and extremely clean, non-greasy food with interesting twists. Studio67 does plan to raise menu rates as the restaurant gets more and more crowded, and to make sure that they are charging a premium for the feeling of being in the "in crowd." The market and financial analyses indicate that with a start-up expenditure of $141,000, Studio67 can generate $350,000 in sales by year one, $500,000 in sales by the end of year two and produce net profits of 7.5% on sales by the end of year three. Profitability will be reached by year two.

Highlights

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1.1 Objectives
1. 2. 3. three.

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Sales of $350K the first year, more than half a million the second. Personnel costs less than $300K the first year, less than $400K the Profitable in year two, better than 7.5% profits on sales by year

second year.

1.2 Mission

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Studio67 is a great place to eat, combining an intriguing atmosphere with excellent, interesting food that is also very good for the people who eat there. We want fair profit for the owners, and a rewarding place to work for the employees.

Heavy equipment maker business plan 1. Executive Summary go to: Table of Contents | <-- Previous Page | Next Page -->

1.0 Executive Summary

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Tricky Widgets Manufacturing (TWM) is a manufacturer of heavy equipment machinery, with one location in Spokane, Washington. TWM is a start-up manufacturing firm. Along with a significant level of its own capital, TWM hopes to initially make a successful effort to secure start-up financing to begin operations. TWM is looking to conduct operations at its location to meet an ever-growing level of demand for heavy equipment machinery products. The company's initial product offering will include the "Widget Basic," "Widget Deluxe," and "Widget Premium." These products are expected to be very popular among commercial construction companies because of their versatility and accurate control capabilities. Strong contact relationships and referral networks among commercial construction company owners are expected to allow for a rapid entry into this market.
1.1 Mission

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TWM aims to offer high-quality heavy equipment machinery for the commercial construction industry at a price which is competitive in comparison to other premium-quality commercial machinery manufacturers in the market. The management of TWM believes there is a current untapped market opportunity because 1) existing providers of construction machinery are too diversified to serve the increasingly specialized needs of the commercial construction

segment, and 2) the incorporation of greater precision controls within such machinery will greater serve the needs of this segment of the construction machinery industry.

1.2 Keys to Success

TWM's keys to success will include: 1. 2. sales. 3. 4. A high level of quality in its product line.

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Maintaining and growing its referral networks to generate new and repeat Significant investments in research and development and engineering with Improving efficiencies of operations.

the aim to focus on precisely controlled equipment.

Wedding consultant business plan 1.0 Executive Summary [back to top]

TLC Wedding Consultants is a full service company that provides complete consulting services for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated professionals with many years of event planning experience. TLC is unique in that we give our clients our undivided attention. We listen to their needs and work with them to create the event of their dreams. Our clients' wishes become our commands. So whether our client wants a Western, Tropical, Las Vegas or more traditional wedding, we can help. Our services include weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as full-service referrals to florists, hair stylists, entertainers, musicians, etc.
1.1 Objectives

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Whether this is our client's first wedding, a renewal of their vows or their anniversary, we want every detail of their event to be both a pleasurable and a

memorable experience. Therefore we offer a host of packages and services specifically tailored to the needs of each couple. We are confident that this business venture will be a success and we estimate that our net income will increase modestly by the second year.

1.2 Mission

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TLC Wedding Consultants is a full service company that provides complete consulting services for weddings, holy unions and anniversaries. Our consultants are experienced and dedicated professionals with many years of event planning experience. TLC is unique in that we give our clients our undivided attention. We listen to their needs and work with them to create the event of their dreams. Our clients' wishes become our commands. So whether our client wants a Western, Tropical, Las Vegas or more traditional wedding or anniversary party, we can help. Our services include weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as fullservice referrals to florists, hair stylists, entertainers, musicians, etc.

1.3 Keys to Success

The keys to our success are as follows: 1. 2. 3. Service our clients' needs promptly and efficiently.

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Maintain an excellent working relationships with vendors such as Maintain a professional image at all times.

florists, hair salons and bridal shops.