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Business Plans
Starting price $499 and up
Call me Thomas McGovern, MBA to write your business plan
Toll Free 888 my consultant
Toll Free 888 692-6678
Outline for a professional business plan
1. Cover sheet
2. Statement of purpose
3. Table of contents
I. The Business
A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Personnel
F. Business insurance
II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
F. Three-year summary
G. Detail by month, first year
H. Detail by quarters, second and third years
I. Assumptions upon which projections were based
J. Pro-forma cash flow
III. Supporting Documents
A. Tax returns of principals for last three years Personal financial
statement (all banks have these forms)
B. For franchised businesses, a copy of franchise contract and all
supporting documents provided by the franchisor
C. Copy of proposed lease or purchase agreement for building space
D. Copy of licenses and other legal documents
E. Copy of resumes of all principals
F. Copies of letters of intent from suppliers, etc.
I will write a professional business plan that you can feel proud to take to banks and investors. These plans will detail all the aspects of your business and sell your idea to banks and investors. The business plan is the primary tool that businesses need to attract capital.
I also have investors and financial companies that will give you money for your ideas when traditional banks say no.
Sign up below and I will email you a sample of one of my business plans.
SAMPLE PLAN #1
Fabric Softener Laundromat, Inc.
Executive Summary
Fabric Softener Laundromat is a full-service coin-op laundry (washing, drying, and optional folding) service dedicated to consistently providing high customer satisfaction by rendering reliable machines and furnishing a clean, enjoyable atmosphere at a competitive price/value relationship.
Our Mission: To provide convenient, clean, and friendly laundry service.
Our Motto: "Professional, convenient, friendly service and competitive pricing"
The timing is right for starting this new venture. After patiently searching for months for the perfect location, one was finally found. The demand of laundry service, the ambitions of the owner to one day start his own laundry business, and knowledge to support the venture, has made it a business opportunity with great potential.
Mr. Linford Ramson has many years of business experience and a flexible schedule to manage this coin-op Laundromat.
To achieve this objective, Fabric Softener Laundromat is seeking $77,000 in additional loan financing. This loan will be paid by the cash flow from both the auto-body repair shop and the laundry business, and will be collateralized by the assets of the laundromat business and steady income it will generate. The owner has invested $40,000 of his own money in this venture. Furthermore, this loan will be backed by the character, experience, and personal guarantees of the owner.
The Laundromat
Fabric Softener laundromat will, upon commencement of operations, supply full washing, drying, folding services and an express drop off washing service. It will also provide quality products to ensure clean washing of clothes. The items that will set Fabric Softener Laundromat apart from the competition will be its' commitment to providing professional, friendly, prompt, and, most importantly, convenient services.
Fabric Softener Laundromat will be considered a full-service laundry service. There will be 12 washers and 5 dryers. The services and products provided by Fabric Softener Laundromat, Inc. are as follows:
Washing machines and dryers for customers to wash and dry their clothes
Express drop off where clients will leave their laundry for our organization to wash
Soaps and Fabric softeners for sale
Vending machines
The legal form of business will be an S-corporation. The reason for this structure is because of the protection it offers for the owner in that this business form offers limited liability. Another reason is that the profits pass through to the owners without being taxed at the corporate level.
This is a new laundromat business being created in a storefront located at 124-02 Rockaway Blvd, South Ozone Park, NY 11420. The business is approximately 400 sq., feet with a parking lot adjacent to the building. It is located in a residential area on a main road zoned for small stores. The owner has rented the building and has commenced renovations for a laundromat. The population density in the area is expected to increase due to the change in the zoning in nearby Jamaica Queens. The area is expected to be rezoned for large apartment complexes with greater population density. This is will increase the need for laundromats in the area.
The licensing requirements and the following are required:
New York City certificate of occupancy
New York City Department of Consumer Affairs license
New York State Sales tax certificate of Authority.
The laundromat and its' owner expect to receive these license and permits upon completion of the laundromat.
Keys to Success
The keys to success in our business are:
?Location: the potential business is to be located in a busy street in a shopping area. It is in a lower-middle class, ethnically diverse neighborhood, where it will be the closest and most convenient place to get services. In addition, there are several apartment complexes located nearby. We will be the sole laundromat immediate neighborhood and surrounded by residential dwellings with many renters.
?Convenience: offering clients services ranging from full-service washing and drying to optional folding, and extended business hours.
?Environment: providing an environment conducive to giving clean, friendly, and professional service.
?Reputation: we will seek to build a long-term reputation resulting from friendly, professional service will encourage customers to return.
Application of Loan Funds
The amount of the loan required is $77,000 the purpose of the loan is to complete the following:
Complete the renovations including
plumbing -Installing an 8 inch water main to the street $ 8,000
electrical work $ 2,000
Purchasing 5 coin operated washing machines $4,000 each $ 20,000
Purchasing 3 30lb clothes dryers $6000 each $ 18,000
Television 42 in flat screen $ 1,500
100 Gallon hot water tank $ 3,500
4 Clothing baskets $500 each $ 2,000
Complete laundromat interior renovation $ 3,000
Signs $ 3,500
Advertising $ 5,500
Security surveillance equipment $ 1,800
Insurance deposits (Liability, Workers comp, Disability) $ 2,100
Reserve 3 Months operating expenses and loan payments $ 6,300
Total Funds required $77,000
The collateral for the loan will be the overall business and the machinery and equipment within it. Linford Ramson, the owner has invested $40, 000 of his own money in the project. Laundromats, because they can be operated without the owner's constant presence and require minimum licensing are highly liquid and relatively easy to sell.
Fabric Softener Laundromat, Inc.
Monthly Projected Income Statement
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REVENUE
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Sales
Sales
Laundromat Sales (On Average) |
$8,666 |
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Supplies and Game Arcade Sales |
$1,000 |
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Total Revenue
Total Monthly Revenue |
$9,666 |
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OPERATIONAL ADMINISTRATIVE EXPENSES |
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Rent
Rent |
$1,000 |
|
Garbage
Garbage
Garbage and Sewage |
$ 50 |
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Insurance
Insurance
Business Insurance ($1,000,000 Liability) |
$ 150 |
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Utilities
Utilities (Gas, Electric, and Water) |
$1,300 |
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Repairs
Machine Maintenance
Machine Maintenance |
$ 70 |
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Salaries
Utilities
Payroll Expense |
$1,950 |
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Direct cost of Sales
Direct Cost of Sales
Direct Cost of Sales (Supplies, Miscellaneous) |
$ 50 |
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Total Expenses
Total Expenses
Total Expenses
Total Monthly Expenses |
$4,570 |
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Total Income
NET PROFIT (On Average) |
$5,096 |
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Projected Annual Sales and Profit
Sales Expenses Net income
Year 1 115,992 54,840 61,152
Year 2 150,790 63,898 86,892
Year3 185,293 76,678 108, 615
Target Market and Advertisements
The Fabric Softener Laundromat's target market are individuals who rent apartments or who otherwise do not have washing machines in their homes. Another characteristic of the target market is that they will live within 1 mile of our location. This is because washing clothing is a low cost, commodity service with little product differentiation, there is no reason or incentive for customers to travel far to do their laundry. Most customers do their laundry within the immediate area of their home. Further wash is large and cumbersome and customers who use public transportation will not want to carry their clothes a great distance.
The laundromat plans on taking out ads in the local papers such as the Queens Tribune and the Penny saver newspaper. Coupon distribution companies such as val- pack will be used to distribute coupons entitling the recipient to a free wash and dry.
Pricing and Product Placement
We will initially seek to charge the market price for our coin operated washing and trying machines. We have made this pricing decision because the price the coin operated aspect of the business is a commodity with little product real or perceived product differentiation. However as our laundry becomes utilized more and we approach the upper limits of our capacity we will increase the price.
Our express service will be differentiate itself on speed, convenience and reliability. Further we will do small repairs of buttons and hems as an additional service. The target market for this product will be busy working people who do not have time to domestic tasks themselves. These individuals will be less price conscious and willing to pay a premium price for a quality service. We will also accept credit cards for this service.
Employees
The owner will work at night. 1 full time person and 1 part time for the weekends and evenings will be required. Both will receive mimimum wage plus commission as compensation. The Linford Ramson believes in giving incentives to his employees and making them a part of the businesses success, therefore commission and bonuses for meeting performance goals will be part of the compensation structure.
Cash Controls
The business will be coin operated and the owner will be present when the change is removed from the machines. The wash express business will be controlled with a cash register and claim tickets.
Personnel Plan
There will be one full time and one part time attendant/Cashier employee whose duties include store and machine maintenance, and being a cashier/clerk/ clothes cleaner for the drop off laundry service. Depending on the demand for the service, we might add more personnel. The current salary for the existing personnel is $7.15 per hour plus commission on the drop off service.
As for machine maintenance, this will be outsourced to a local on-call independent repair service. They have been known within the community, as one of the reliable and prompt repair services. They usually service within the same day. It's been estimated to cost approximately $150 per month for maintenance.
Break-even Analysis
The break-even analysis shows that Fabric Softener Laundromat has a good balance of fixed costs and sufficient sales strength to be a successful business. The break-even point is only 571 customers a month. This was derived by using an average revenue of $8 per customer, and fixed costs of $4,570 (including loan payback amount). This also includes the cost of products for retail sales and all other costs such as payroll, maintenance, garbage, utilities, and insurance.
Business Plan
Fabric Softener Laundromat, Inc.
Written By: Thomas McGovern, MBA
Advantage Brokerage, Inc
88-45 164th St
Jamaica, NY 11432
718 558-5532
November 3, 2007
Dear Sir/ Madam:
I, Mr. Linford Ramson am requesting $77,000 to complete construction, and purchase additional equipment for The Fabric Softener Laundromat, where I am the 100% owner. The funds will enable the business to open and begin generating cash flow. The funds will be repaid from the operating income of the business and from my work as an auto repair technician.
If anyone has any questions please contact me at (XXX) XXX-XXXX.
Sincerely
Linford Ramson
SAMPLE 2
HAIR INNOVATION STUDIOS, INC
November 2006
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Mary Hughes in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Mary Hughes.
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to Mary Hughes.
Upon request, this document is to be immediately returned to Mary Hughes.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
1. Executive summary
2. Keys to Success
3. Company Summary
4. Start-up Summary
5. Services
6. Marketing Strategy
7. Product Price Structure
8. Management Summary
9. Personnel Plan
10. Financial Plan
11. Break Even Analysis
12. Projected Profit and Loss
13. Projected Cash Flow
14. Projected Balance Sheet
1. Executive Summary
Hair Innovation Studios, Inc. is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products and furnishing an enjoyable atmosphere at an acceptable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.
Our Mission: To supply services and product that enhances our client's physical appearance.
Our Motto: "A New beginning!"
The timing is right for starting this new venture. The owners ability to start her own salon and procure of highly professional and qualified beauticians, to support the salon, will make this a successful and profitable business.
Mary Hughes has worked in the hair industry for 9 yrs and has spent 3 years specializing in hair replacement. Mary, along with her trained staff, will have the necessary experience to make this venture extremely successful. Hair Innovation Studios, Inc. expects to build a strong reputation and to bring talented new beauticians to grow the company.
In order to achieve our objectives, Hair Innovation Studios, Inc. is seeking $145,828 in financing. This loan will be re-paid from the cash flow of the business, and will be collateralized by the assets of the company, and backed by the character, experience, and personal guarantees of the owner.
2. Keys to Success
The keys to success in our business are:
· Location: providing an easily accessible location for customers.
· Environment: providing an environment conducive to giving relaxing and professional service.
· Convenience: offering clients a wide range of services in one setting, and extended business hours.
· Reputation: reputation of the owner and other "beauticians" as providing superior personal service.
· Respect: to be considerate of others personal well being.
3. Company Summary
Hair Innovation Studios, Inc. will, upon commencement of operations sell a wide range of beauty services and products. We will provide quality hair and offer our skin services along with our top lines of beauty products. Hair Innovation Studios, Inc. will be committed to providing all these services in one convenient location, with the expectation of expanding in the near future to other surrounding areas.
4. Start-up Summary
After spending several months searching for a salon to purchase, the owners decided to start a salon from the ground up. The start-up capital will be used for the design, leasehold improvements, and equipment of the salon.
Leasehold improvements will amount to approximately $32,000; salon equipment will cost about $30,000 and furniture $24,000.
Start Up Expenses
Rent Deposits (3 months Security) $ 6,300
Prepaid Rent $ 2,100
Rent Reserve (3 months) $ 6,300
Leasehold improvements and renovations $ 32,000
Furniture $ 24,000
Equipment $ 30,000
Three month employee salaries $ 9,023
Advertising $ 30,000
Website $ 2,000
Utilities (3 months reserve and deposits) $ 4,000
Insurance $ 2,100
Legal and Professional Fees $ 3,000
Leads for Telemarketers $ 5,000
Total Prepaid Expenses $155,823
Source of Funds
Mary Hughes (President and Chief Operating Officer) $ 10,000
Other Funding options (Additional Funds Required) $ 145,823
5. Services
Hair Innovation Studios, Inc. is considered an upscale full-service beauty salon. We will offer a wide range of services that include:
· Hair Replacement: designing a mold according to the individual's needs and having the system custom made.
· Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling, reconstructoring, weaving, and waving.
· Skin service: facial cleansing and massaging the skin.
6. Marketing Strategy
Our marketing strategy is to satisfy our clients', which will be our best marketing tool. When a client leaves our business, he or she is advertising and broadcasting Hair Innovation Studios, Inc. and the quality of their services to public.
Advertising will be an important aspect in the acquisition of initial clients. Hair Innovation Studios, Inc. will have a daily broadcasting on the radio and a display ad in the daily community newspaper. Hair Innovation Studios, Inc. will also have a bold listing in the yellow pages and hire several telemarketers. However special discount coupons will be offered throughout the week, rewarding discounts for referrals. Other coupons, for our hair replacement systems will be sent to potential clients, from mailing lists of individuals who have similar demographic characteristics to our target market.
We are focusing on a niche market of clients that require hair replacement for medical needs. Examples of the clients we will service are:
Cancer Patients (Chemotherapy and other treatments that cause the individual to lose hair)
Alopecia (A skin disorder that makes a person lose all the hair on their body)
Burn Victims (Permanently loose their hair in the burned areas)
The individuals affected by these disorder will pay a premium for the extra time and care required to restore them to their previous state. Many of these individuals' careers and ability to work and function in society depends upon our services. As such we offer a premium service and we will be charging fees and markups that reflect the additional care and attention we provide for our clients. We will be targeting moderate to high net worth individuals and those who have insurance that will pay for our services.
7. Product Price Structure
A typical client will require the following services:
Hair Replacement systems:
Client Price Wholesale cost Gross Profit
$1,300 $ 659 $ 641
Labor cost to apply system 2 hours @$12 = $ (24)
Sales Commission for inside sales consultant $ (100)
Sales Commission for telemarketer $ (50)
Direct Profit per initial order $ 467
This initial price includes cutting and initial installation of the hair system. Each client requires servicing every four weeks. (13 times per year)
Servicing Cost number of servicing per year Annual revenue
$65 13 $ 845
Labor cost 2 hours @$12 times 13 = $ (312)
Annual Gross Profit $ 533
Additional Services Price
$55 13 $ 585
Product cost $ (6) 13 $ (78)
Labor Cost (30 min) $ (6) 13 $ (78)
Profit $43 $ 429
Every 3 months hair addition to system
(2 hours of additions to system) $150 3 $ 450
Product cost $ (45) 3 $ (135)
Labor Cost (2hours @ 12) $ (24) 3 $ (72)
Profit $ 81 $ 243
Total direct annual profit per customer $1,672
Based upon the following model it is evident that each new customer will produce $1,672 of profit per year before overhead and advertising expense.
8. Management Summary
Hair Innovation Studios, Inc. will be organized and managed in a creative and innovative fashion to generate high levels of customer satisfaction, and to create a working climate that fosters a high degree of personal development and economic satisfaction for employees.
Training classes will be mandatory to the employees to help improve their knowledge and skills of the products that Hair Innovation Studios, Inc. will be using on a regular basis. As the business grows the company will consider offering an employee package, which will include health and vacation benefits.
9. Personnel Plan
The personnel plan calls for an assistant manager, a receptionist, 2 telemarketers, 5 hairstylists, a shampoo tech., and a facialist. The assistant manager, receptionist, telemarketers, shampoo tech and facialist will be contract workers. The Hair stylist will be paid on salary plus commission. The business will have two hair ventilator technicians paid hourly.
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Personnel Plan |
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FY 2008 |
FY 2009 |
FY 2010 |
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Receptionist |
$12,480 |
$13,520 |
$14,560 |
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Shampoo Tech. |
$10,920 |
$11,440 |
$12,480 |
Telemarketers |
$11,560 |
$11,960 |
$13,000 |
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Facialist |
$10,920 |
$11,440 |
$12,480 |
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Other |
$62,400 |
$70,720 |
$74,880 |
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Total Payroll |
$108,280 |
$119,080 |
$127,400 |
10. Financial Plan
Our goal is to be a profitable business beginning in first year. The business will grow gradually during the first year as our infrastructure is developed. Our sales will gradually increase as we place more ads and hire more telemarketers. It will be important to balance the advertising and marketing with the training and development of the rest of our staff.
The financials that are enclosed have a number of assumptions:
Revenues will grow at an annual rate of 37%. from the first to second year, and increase 21% from the second to 3rd year. We anticipate this increase to stay steady throughout the following years to account for the normal flow of new clients coming into the salon. Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated to the high side to illustrate a worst-case scenario.
11. Break-even Analysis
The break-even analysis shows that Hair Innovation Studios, Inc. has a good balance of fixed costs and sufficient sales strength to remain healthy. Our break-even point is only 123 clients a month. This was derived by using average revenue of $139 per client, and costs of $5,691. Products sales were not included in this figure, but it does include an owner withdrawal of $4,166 a month.
12. Projected Profit and Loss
We expect income to hit $55,720, after paying the owner $50,000 salary, at the end of the first year of business. It should increase to more than $150,240 after an owner's salary of $55,000 by the third year, as the reputation of the salon, its stylists and services become apparent to this market.
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Pro Forma Profit and Loss |
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FY 2008 |
FY 2009 |
FY 2010 |
Sales |
$316,020 |
$436,293 |
$529,942 |
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Direct Cost of Sales |
$4,280 |
$9,458 |
$10,478 |
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Gross Margin |
$311,740 |
$426,835 |
$519,464 |
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Gross Margin % |
98.64% |
97.83% |
98.02% |
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Expenses |
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Payroll |
$108,280 |
$149,520 |
$180,876 |
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Sales and Marketing and Other Expenses |
$36,440 |
$49,840 |
$55,240 |
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Depreciation |
$17,200 |
$18,400 |
$18,900 |
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Leased Equipment |
$400 |
$450 |
$480 |
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Utilities |
$16,000 |
$17,200 |
$19,400 |
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Insurance |
$2,500 |
$2,600 |
$2,700 |
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Rent |
$25,200 |
$26,460 |
$27,783 |
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Interest |
$10,207 |
$9,245 |
$8,845 |
Officers Salary |
$50,000 |
$52,000 |
$55,000 |
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------------ |
------------ |
------------ |
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Total Operating Expenses |
$206,020 |
$325,715 |
$369,224 |
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Net income |
$55,720 |
$101,120 |
$150,240 |
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13. Projected Cash Flow
We expect to manage cash flow over the next three years simply by the growth of the cash flow within the business. The business will generate more than enough cash to cover all of its expenses. The business is a service business, with low capital expenditures and small inventories. Also most services are paid in full at the time the service is performed, therefore we expect the company to be highly cash flow positive.
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Cash Flow Statement for Year End December 31 |
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2008 |
2009 |
2010 |
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Cash Received |
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Opening Cash |
0 |
136,307 |
344,942 |
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Owners Capital |
10,000 |
10,000 |
10,000 |
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Loans |
121,115 |
94,356 |
65,376 |
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Sales |
316,020 |
436,293 |
529,942 |
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Total inflows |
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447,135 |
676,955 |
950,260 |
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Expenditures |
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Start up expenditures |
97,300 |
0 |
0 |
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Operating expenditures |
188,820 |
307,305 |
350,324 |
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Loan Repayments |
24,708 |
24,708 |
24,708 |
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Total Outflows |
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310,828 |
332,013 |
375,032 |
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Closing Cash |
136,307 |
344,942 |
575,228 |
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14. Projected Balance Sheet
As shown in the balance sheet, we expect a healthy growth in the net worth of the business.
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Pro Forma Balance Sheet year end |
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2008 |
2009 |
2010 |
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Assets |
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Cash |
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161,015 |
265,295 |
420,205 |
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Other Current Assets |
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Long Term Assets |
82,000 |
82,000 |
82,000 |
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Total Assets |
243,015 |
347,295 |
502,205 |
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Liabilities and Capital |
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Accounts Payable |
4,584 |
5,897 |
6,892 |
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Other Current Liabilities |
2,458 |
3,784 |
4,596 |
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Long Term Liabilities |
121,114 |
94,358 |
65,375 |
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Capital |
|
200 |
200 |
200 |
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Additional Paid in Capital |
58,939 |
141,936 |
274,902 |
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Retained Earnings |
55,720 |
101,120 |
150,240 |
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Total Liabilities and Capital |
243,015 |
347,295 |
502,205 |
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Thomas McGovern, M.B.A.
Chief Executive Officer
Call me personally at 718 657-9253
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Business insurance NYC, Income Tax Preparation, Incorporate your business, open a new business, business start ups
 Advantage Brokerage, Inc
NYC Business Insurance
164-03 89th Ave Ste. 1-C
Jamaica, New York 11432
New York City Business Insurance
8845 164th St, Jamaica NY 11432
Queens County, New York City, N.Y.C.
Phone: (718) 558-5532
advantagetax1@yahoo.com
New Location openning in Brooklyn, NY
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