Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $500 |
Stationery etc. | $200 |
Advertising | $10,000 |
Phone | $200 |
Insurance | $400 |
Rent | $4,000 |
Utilities | $400 |
Facilities refurbishment | $8,000 |
Computer | $2,000 |
Other | $600 |
Total Start-up Expenses | $26,300 |
Start-up Assets | |
Cash Required | $36,200 |
Start-up Inventory | $3,000 |
Other Current Assets | $8,000 |
Long-term Assets | $4,000 |
Total Assets | $51,200 |
Total Requirements | $77,500 |
Tucson Electronics offers a wide range of services as outlined in the detailed sections below. It is ultimately the goal of the company to offer a one-stop facility for all home entertainment needs, including both sales and servicing. In this way the company can offer greater perceived value for the customer than many other shops which only offer sales or services.
The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors, buyer power is also very high. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes (such as do-it-yourself work) mean that the pricing for such services is very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create higher switching costs through the building of strong business-to-customer ties. It is the aim of Tucson Electronics to create a competitive advantage through both the low cost strategy and by offering greater value through its broader product and service line.
Tucson Electronics will initially have only one factory trained and certified technician in the person of Mr. Munroe. As the company grows and expands, Mr. Munroe will hire trained and certified technicians who are able to prove they have superior customer awareness and interaction. It is the company’s professional people who will fulfill the firm’s contracts and goals. The largest part of the company’s expenses will be in labor costs.
Tucson Electronics provides a wide range of home entertainment repair services. These include:
Future products and services that Tucson Electronics will prepare to institute include TV/VCR/DVD rental, satellite TV installation and servicing, sales of new TVs, DVDs, VCRs and stereos, and repair/sale of microwave ovens. Mr. Munroe is also investigating the possibility of offering a new product line of home entertainment cabinets at some future date.
A large part of Tucson Electronics enhanced services will be free pickup and delivery of electronics to a person’s home. Mr. Munroe’s cousin, Mr. Thomas Porter, owns Caesar Courier Services, a local company providing pickup and delivery services. Mr. Porter has agreed to provide these services to Tucson Electronics’ clients at discounted prices to Mr. Munroe.
The technological revolution in computers has enhanced our abilities to diagnose and repair our clients home electronics. Tucson Electronics will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop. The company will continue to seek new ways to provide a better service through technology.
The electronics repair industry is highly competitive. Each company within this field has high labor costs, low margins, and a high intensity of competition.
Suppliers have a great deal of power in setting and negotiating the prices of their products and services to repair shops. This is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large electronic manufacturing companies such as Panasonic, Emerson, Toshiba, etc. These companies are more consolidated than the repair industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to the electronic repair industry. Therefore, these companies can set whatever price they wish to. Furthermore, labor is the single most important expense in this industry, and salaries for such individuals are well known and not very flexible.
In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors (if they offer a suitable level of quality) buyer power is also very high. Additionally, the costs of our services are not cheap, and buyers are willing to search for the most favorable combination of price and acceptable service.
The barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exist the market are low. The large number of competitors in this field including substitutes mean that pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.
Based on this analysis, Tucson Electronics will pursue a low cost leadership strategy as its primary competitive advantage. Furthermore, the company will simultaneously build up its product and service line to take advantage of the limited opportunity to create higher switching costs through enhanced value creation and to spread out costs.
Future products and services that Tucson Electronics will prepare to institute include TV/VCR/DVD rental, satellite TV installation and servicing, sales of new TVs, DVDs VCRs and stereos, and repair/sale of microwave ovens. Mr. Munroe is also investigating the possibility of offering a new product line of home entertainment cabinets at some future date.
Tucson Electronics will start implementing these new products or services in the following time periods:
The capital investment needed for such expansion will primarily come from the company’s accumulated operating cash account. It is anticipated that some of these product/service expansions that require significant inventory, such as new sales, may require additional cash inflow such as loans. The company will be preparing proposals for various lending institutions in anticipation of this need.
Presently the product that is really driving the electronics repair market is computers. While Tucson Electronics is not currently positioned to take advantage of this situation, it is the long-term goal of Tucson electronics to incorporate computer repair services within the company. Once the firm is able to generate enough cash to retain the services of a computer repair technician, the company will evaluate the viability of such a move. It is anticipated that this service will be offered sometime after 1st Qtr 2007.
There are approximately 332,500 households in the greater Tucson area, which includes suburbs such as Green Valley, Ina, and South Tucson. Virtually all of these households have TVs, VCRs, etc. Tucson Electronics segments its market into product categories that reflect the estimated number of each electronic device currently being used in the greater Tucson area, since each of these devices may fail at any time and require our services. In addition the growth rate of each product emplaced in the home is based on the current sales growth of each product. Presently, the fastest growing product, in terms of sales, is the DVD player. It is anticipated that the DVD will replace the VCR within the next three to five years as movie rental stores replace their existing VHS movies with DVD. The largest segment is the home and car stereo segment, since usually a household has more than one of these systems. The company will be focusing on servicing all of these systems, and not focusing on one over the other.
Tucson Electronics has segmented the households in the Tucson area as follows:
Tucson will target the following segments.
Middle class couples without children . This group will tend to have a higher disposable income since they have two incomes but do not have the expense of children. They prioritize socializing and spend a fair amount of time entertaining in their home and in the homes of their friends. For this reason they will spend more on their electronic equipment.
Single men living alone or with roommates . This group is not the largest segment for us, but potentially one of the most profitable, since single men tend to prioritize their home entertainment equipment. They will spend a greater percentage of their income on high-quality TV and stereo equipment.
Baby boomers . Baby boomers are reaching the age where their children have left home and they have more disposable income than when their children were young and living at home. They are more tech savvy than the generation before them and appreciate the good things in life. They like to spend time in their homes, now that the children are out of the house.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
TVs | 3% | 415,875 | 428,351 | 441,202 | 454,438 | 468,071 | 3.00% |
VCRs | -2% | 310,645 | 304,432 | 298,343 | 292,376 | 286,528 | -2.00% |
DVDs | 25% | 106,400 | 133,000 | 166,250 | 207,813 | 259,766 | 25.00% |
Stereo Systems | 12% | 875,500 | 980,560 | 1,098,227 | 1,230,014 | 1,377,616 | 12.00% |
Microwave Ovens | 8% | 282,625 | 305,235 | 329,654 | 356,026 | 384,508 | 8.00% |
Total | 8.67% | 1,991,045 | 2,151,578 | 2,333,676 | 2,540,667 | 2,776,489 | 8.67% |
The market demand for electronics repair has been relatively stable over the past decade. With the advent of DVD players, the market is seeing more highly trained technicians needed. As technology progresses, long-term planners within this market expect to see new opportunities for electronics repair quickly arise. Such devices as cellular telephones, PDAs and other new electronics may have a role to play in the people who have a broad vision in this field.
Tucson Electronics is fortunate in that Janet Munroe, Mr. Munroe’s wife works in cost analysis for Wal-Mart, one of the country’s best low cost companies. Mrs. Munroe has agreed to furnish cost analysis services to Tucson Electronics for free.
The low cost leadership strategy will not be simple to achieve. Realistically speaking, because of the fragmented nature of the industry, Tucson Electronics will only seek a low cost leadership in the Tucson region for the first seven to ten years of operations. In order to capture this position and achieve its benefits of high market share and profitability, the company is expected to have higher start-up costs and lower profits within the first few years as the company invests in better and more efficient facilities and equipment than most competitors and engages in aggressive pricing to capture market share. The company will rigorously evaluate every aspect of the company to improve efficiency and lower costs. Mrs. Munroe is preparing an analysis of the company’s value chain and cost drivers to identify where costs can be lowered and which aspects of the business Mr. Munroe must focus on. It is expected that management will expend a great deal of energy in cost management and the reduction of things such as marginal customer accounts and marketing expenses. Once in operation, management will concentrate on developing established procedures that will create the most effective service experience. Finally, as part of this low cost leadership strategy, the company plans to vertically integrate to include original sales and broad services that will spread costs and serve all major customer types so as to build volume.
Customers traditionally purchase services in this industry because of effective advertising and reputation. The customers wish to be reassured that they will receive prompt and reliable service and have an understanding service representative will listen to their problems and seek to solve them in a fast and professional manner. Therefore image during the entire service experience is crucial to maintain word-of-mouth marketing and keep a low curn rate. Currently the largest problem that faces small firms is product/service awareness. By the use of effective and widespread advertising, Tucson Electronics expects to be able to capitalize on the weakness of the the “mom and pop” outfits style of passive promotion (such as Yellow Page ads) and to leverage greater product awareness into higher market share. There is no seasonality to this industry although there is some slight increase in servicing sales during the Christmas season.
As stated before, the electronic repair industry is highly fragmented. In fact, there are so many small providers that any company in this industry is facing a purely competitive environment. Approximately 23,700 electronic repair firms exist in the country today. Firms within this field range in sizes from the “mom and pop” outfits such as Dave’s Electronics and Kachina Repair in downtown Tucson to regional companies like Magnolia Hi-Fi and the national chains such as Circuit City. Not all of these firms are purely repair outfits. In fact all of the larger firms make the majority of their revenue in original sales. It is these companies that have the largest market share and have the opportunity to compete by differentiating on customer service or product/service range.
As stated before, Tucson Electronics will seek a low cost leadership approach in the local Tucson region first. Its goals are not to directly compete with the larger companies who could effectively out compete Tucson Electronics. Instead, the company will seek to outprice the local “mom and pop” outfits and acquire their market share in order to then compete with the regional firms. There are eight such “mom & pop” firms that will be Tucson Electronics’ main competitors in its first few years of operation. They are:
The following sections outline Tucson Electronic’s strategy and implementation summary.
The company has a strong program of marketing its services that include the following:
The company’s aim is to overcome the traditional small firm’s passive form of advertising and promotion by sending our message to the customer, instead of having the customer look for a firm when they need our services. The share development graph below shows how the company plans to build market share through service awareness, value creation, competitive price, availability, and attractive service experience, all leading to the purchasing of our services. The numbers given in the graph give the estimated percentages of those customers who respond favorably to each marketing step. These numbers multiplied together give us an estimated aggregate market share of approximately 16%. The company expects to achieve this by year four.
Tucson Electronics exists in a purely competitive environment where each firm must be a price taker. In other words, the firm has no ability to affect the market price of its services, regardless of how many TVs/DVDs or VCRs it repairs. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, Tucson Electronics can service electronics at total capacity without effecting the price.
What all of this means for the company is that the we must seek to charge our clients at the market price (or lower). Research has shown that the average price is approximately $75 per electronic device. As long as marginal costs do not exceed revenues, the company’s method to maximize short-run profits is to service the various electronic devices at maximum capacity. This means that Tucson Electronics can expect an long-term ROA of approximately 14%.
The company’s promotion strategy will take the form of flyers, direct mailers, price discounts, billboards, radio ads and advertisements in newspapers and yellow pages. TE expects to spend a large amount on marketing in the first two years in order to build up product awareness and service value in the minds of our customers.
Tucson Electronics’ competitive edge lies in its ability to provide quality and fast electronic repair at lower cost than any local small competitor. This positioning of the company provides protection against the power of suppliers by creating more flexibility to cope with increasing costs. In addition, this approach will provide returns even during economic downturns and when other unforeseen problems arise.
The sales forecast is based on the estimated number of electronics the company could service that are currently emplaced in the homes in Tucson. This is conservatively estimated at about two million units. From that number it is assumed that approximately 3% of all those will fail in any year. These two numbers multiplied together give us yearly market demand for our services. With an aggressive promotional strategy, a 10% market share is assumed by year three and multiplied by the estimated market demand. This is then multiplied by the estimated price per unit to arrive at the yearly sales figure assumed for year three (once the company’s marketing efforts have paid off). This number is then decreased by a logical amount to estimate the first two years of revenue.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
TVs | $46,250 | $49,025 | $52,604 |
VCRs | $51,600 | $54,696 | $58,689 |
DVDs | $36,500 | $38,690 | $41,514 |
Stereo Systems | $57,700 | $61,162 | $65,627 |
Microwave Ovens | $5,900 | $84,000 | $90,132 |
Total Sales | $197,950 | $287,573 | $308,566 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
TVs | $4,625 | $6,000 | $6,000 |
VCRs | $5,160 | $7,200 | $7,200 |
DVDs | $3,650 | $8,400 | $8,400 |
Stereo Systems | $5,770 | $7,200 | $7,200 |
Microwave Ovens | $590 | $7,200 | $7,200 |
Subtotal Direct Cost of Sales | $19,795 | $36,000 | $36,000 |
Mr. James Munroe is a retired Navy Commander with a degree in electrical engineering from the University of Texas-Austin. During his naval career, Mr. Munroe gained extensive experience in project management, engineering, and electronics systems. During his leisure time, Mr. Munroe sought to expand his experiences in electronics by becoming a certified electronics technician with various brand companies. Mr. Munroe is now seeking to leverage this experience into a growth-oriented business that will be able to eventually compete with the largest firms in the industry.
Mr. Munroe will also be employing the services of his son Samuel, who desires to eventually take over the business. Samuel Munroe has been attending a local trade school and is expected to graduate with a degree in electronics in the summer of 2002.
Tucson Electronics’ initial staffing will consist of Mr. Munroe, his son, and two part-time technician trainees. Accounting, bookkeeping, and marketing consulting services will be outsourced. The company’s intermediate goal is to have four full-time, fully trained technicians at the original facility, plus a full-time office manager. However, management has decided to await future developments before determining the best time to bring on such personnel.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Mr. James Munroe | $36,000 | $36,000 | $36,000 |
Mr. Samuel Munroe | $24,000 | $28,000 | $32,000 |
Part-time technician | $14,400 | $28,000 | $28,000 |
Part-time technician | $14,400 | $28,000 | $28,000 |
Part-time technician | $0 | $15,000 | $15,000 |
Total People | 4 | 5 | 5 |
Total Payroll | $88,800 | $135,000 | $139,000 |
The following sections outline the financial plan for Tucson Electronics.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The company’s break-even analysis is based on an average company’s running costs within this industry, including payroll, and its fixed costs for such things as rent, utilities, etc. As Tucson Electronics operates as a job-shop, with each task a unique, customized service, it is difficult to estimate revenue per unit and variable costs. The reader must understand that there is a high degree of variance within these estimates.
The reader will also note that the company is not expected to reach its break-even point until the last three months of sales of the first year.
Break-even Analysis | |
Monthly Revenue Break-even | $17,844 |
Assumptions: | |
Average Percent Variable Cost | 10% |
Estimated Monthly Fixed Cost | $16,059 |
The following table and charts are the projected profit and loss for Tucson Electronics.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $197,950 | $287,573 | $308,566 |
Direct Cost of Sales | $19,795 | $36,000 | $36,000 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $19,795 | $36,000 | $36,000 |
Gross Margin | $178,155 | $251,573 | $272,566 |
Gross Margin % | 90.00% | 87.48% | 88.33% |
Expenses | |||
Payroll | $88,800 | $135,000 | $139,000 |
Sales and Marketing and Other Expenses | $28,600 | $36,000 | $26,000 |
Depreciation | $1,992 | $2,000 | $2,000 |
Leased Equipment | $6,000 | $2,000 | $2,000 |
Utilities | $4,800 | $5,000 | $5,000 |
Insurance | $7,200 | $7,400 | $7,400 |
Rent | $42,000 | $44,000 | $44,000 |
Payroll Taxes | $13,320 | $20,250 | $20,850 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $192,712 | $251,650 | $246,250 |
Profit Before Interest and Taxes | ($14,557) | ($77) | $26,316 |
EBITDA | ($12,565) | $1,923 | $28,316 |
Interest Expense | $1,370 | $1,000 | $640 |
Taxes Incurred | $0 | $0 | $7,703 |
Net Profit | ($15,927) | ($1,077) | $17,973 |
Net Profit/Sales | -8.05% | -0.37% | 5.82% |
The following chart and table is the projected cash flow for Tucson Electronics.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $197,950 | $287,573 | $308,566 |
Subtotal Cash from Operations | $197,950 | $287,573 | $308,566 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $1,000 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $3,000 | $0 |
Subtotal Cash Received | $198,950 | $290,573 | $308,566 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $88,800 | $135,000 | $139,000 |
Bill Payments | $111,148 | $153,016 | $149,950 |
Subtotal Spent on Operations | $199,948 | $288,016 | $288,950 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $1,000 | $0 | $0 |
Other Liabilities Principal Repayment | $3,600 | $3,600 | $3,600 |
Long-term Liabilities Principal Repayment | $3,600 | $3,600 | $3,600 |
Purchase Other Current Assets | $0 | $2,000 | $3,000 |
Purchase Long-term Assets | $0 | $5,000 | $5,000 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $208,148 | $302,216 | $304,150 |
Net Cash Flow | ($9,198) | ($11,643) | $4,416 |
Cash Balance | $27,002 | $15,359 | $19,775 |
The following table is the projected balance sheet for Tucson Electronics.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $27,002 | $15,359 | $19,775 |
Inventory | $2,794 | $5,081 | $5,081 |
Other Current Assets | $8,000 | $10,000 | $13,000 |
Total Current Assets | $37,796 | $30,440 | $37,856 |
Long-term Assets | |||
Long-term Assets | $4,000 | $9,000 | $14,000 |
Accumulated Depreciation | $1,992 | $3,992 | $5,992 |
Total Long-term Assets | $2,008 | $5,008 | $8,008 |
Total Assets | $39,804 | $35,448 | $45,864 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $11,731 | $12,652 | $12,295 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $10,000 | $6,400 | $2,800 |
Subtotal Current Liabilities | $21,731 | $19,052 | $15,095 |
Long-term Liabilities | $11,800 | $8,200 | $4,600 |
Total Liabilities | $33,531 | $27,252 | $19,695 |
Paid-in Capital | $48,500 | $51,500 | $51,500 |
Retained Earnings | ($26,300) | ($42,227) | ($43,304) |
Earnings | ($15,927) | ($1,077) | $17,973 |
Total Capital | $6,273 | $8,196 | $26,169 |
Total Liabilities and Capital | $39,804 | $35,448 | $45,864 |
Net Worth | $6,273 | $8,196 | $26,169 |
The Business ratios give an overall idea of how profitable, and at what risk level, Tucson Electronics will operate at. The ratio table gives both time series analysis and cross-sectional analysis by including industry average ratios. Industry Profile ratios are based on Standard Industrial Classification (SIC) code 7622, Radio and Television Repair. As can be seen from the comparison between industry standards and Tucson Electronics own ratios, there are some differences. Most of these are due to the fact that there is a very large variance in assets, liabilities, financing, and net income between companies in this industry due to the vast differences in company size. The reader will also note that there is a fair amount of variability between the various years. This is due to the fact that the company is expected to grow quickly and have a large variance in profitability from year to year at first.
Overall the company’s projections show a company that faces the usual risks of companies in this industry and one that will be profitable in the long-run. The company shows that it has higher advertising and start-up costs than other competitors, however management has deliberately overstated costs and minimized profits in order to create a “safe” or “buffer” zone in case of hard times or other unforeseeable problems. Pre-tax return on net worth and pre-tax return on assets appears to be very high, especially within the first two years, however again this is due to the fact that the company will be facing highly variable revenue and costs over the first few years.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 45.28% | 7.30% | 6.10% |
Percent of Total Assets | ||||
Inventory | 7.02% | 14.33% | 11.08% | 19.00% |
Other Current Assets | 20.10% | 28.21% | 28.34% | 27.50% |
Total Current Assets | 94.96% | 85.87% | 82.54% | 76.90% |
Long-term Assets | 5.04% | 14.13% | 17.46% | 23.10% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 54.59% | 53.75% | 32.91% | 36.90% |
Long-term Liabilities | 29.65% | 23.13% | 10.03% | 15.80% |
Total Liabilities | 84.24% | 76.88% | 42.94% | 52.70% |
Net Worth | 15.76% | 23.12% | 57.06% | 47.30% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 90.00% | 87.48% | 88.33% | 0.00% |
Selling, General & Administrative Expenses | 97.70% | 87.54% | 82.32% | 83.50% |
Advertising Expenses | 7.07% | 8.69% | 4.86% | 0.50% |
Profit Before Interest and Taxes | -7.35% | -0.03% | 8.53% | 3.10% |
Main Ratios | ||||
Current | 1.74 | 1.60 | 2.51 | 2.26 |
Quick | 1.61 | 1.33 | 2.17 | 1.47 |
Total Debt to Total Assets | 84.24% | 76.88% | 42.94% | 52.70% |
Pre-tax Return on Net Worth | -253.90% | -13.14% | 98.12% | 7.00% |
Pre-tax Return on Assets | -40.01% | -3.04% | 55.98% | 14.70% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -8.05% | -0.37% | 5.82% | n.a |
Return on Equity | -253.90% | -13.14% | 68.68% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.71 | 9.14 | 7.08 | n.a |
Accounts Payable Turnover | 10.47 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 29 | 30 | n.a |
Total Asset Turnover | 4.97 | 8.11 | 6.73 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 5.35 | 3.33 | 0.75 | n.a |
Current Liab. to Liab. | 0.65 | 0.70 | 0.77 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $16,065 | $11,388 | $22,761 | n.a |
Interest Coverage | -10.63 | -0.08 | 41.12 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.20 | 0.12 | 0.15 | n.a |
Current Debt/Total Assets | 55% | 54% | 33% | n.a |
Acid Test | 1.61 | 1.33 | 2.17 | n.a |
Sales/Net Worth | 31.56 | 35.09 | 11.79 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
TVs | 0% | $3,000 | $3,200 | $3,400 | $3,550 | $3,550 | $3,550 | $3,700 | $3,700 | $4,000 | $4,800 | $4,800 | $5,000 |
VCRs | 0% | $3,500 | $3,600 | $3,700 | $3,900 | $3,900 | $3,900 | $4,000 | $4,200 | $4,500 | $5,100 | $5,400 | $5,900 |
DVDs | 0% | $2,000 | $2,200 | $2,200 | $2,400 | $2,400 | $2,400 | $2,600 | $2,600 | $3,000 | $4,200 | $5,000 | $5,500 |
Stereo Systems | 0% | $4,000 | $4,000 | $4,100 | $4,400 | $4,400 | $4,400 | $4,600 | $4,800 | $5,400 | $5,600 | $6,000 | $6,000 |
Microwave Ovens | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $400 | $2,500 | $3,000 |
Total Sales | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $16,900 | $20,100 | $23,700 | $25,400 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
TVs | $300 | $320 | $340 | $355 | $355 | $355 | $370 | $370 | $400 | $480 | $480 | $500 | |
VCRs | $350 | $360 | $370 | $390 | $390 | $390 | $400 | $420 | $450 | $510 | $540 | $590 | |
DVDs | $200 | $220 | $220 | $240 | $240 | $240 | $260 | $260 | $300 | $420 | $500 | $550 | |
Stereo Systems | $400 | $400 | $410 | $440 | $440 | $440 | $460 | $480 | $540 | $560 | $600 | $600 | |
Microwave Ovens | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $40 | $250 | $300 | |
Subtotal Direct Cost of Sales | $1,250 | $1,300 | $1,340 | $1,425 | $1,425 | $1,425 | $1,490 | $1,530 | $1,690 | $2,010 | $2,370 | $2,540 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Mr. James Munroe | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Mr. Samuel Munroe | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Part-time technician | 0% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Part-time technician | 0% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Part-time technician | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
Total Payroll | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $16,900 | $20,100 | $23,700 | $25,400 | |
Direct Cost of Sales | $1,250 | $1,300 | $1,340 | $1,425 | $1,425 | $1,425 | $1,490 | $1,530 | $1,690 | $2,010 | $2,370 | $2,540 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $1,250 | $1,300 | $1,340 | $1,425 | $1,425 | $1,425 | $1,490 | $1,530 | $1,690 | $2,010 | $2,370 | $2,540 | |
Gross Margin | $11,250 | $11,700 | $12,060 | $12,825 | $12,825 | $12,825 | $13,410 | $13,770 | $15,210 | $18,090 | $21,330 | $22,860 | |
Gross Margin % | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | |
Expenses | |||||||||||||
Payroll | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | |
Sales and Marketing and Other Expenses | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $2,200 | $3,400 | $3,200 | |
Depreciation | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | |
Leased Equipment | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Insurance | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Rent | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | |
Payroll Taxes | 15% | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 | $1,110 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $15,876 | $17,076 | $16,876 | |
Profit Before Interest and Taxes | ($4,626) | ($4,176) | ($3,816) | ($3,051) | ($3,051) | ($3,051) | ($2,466) | ($2,106) | ($666) | $2,214 | $4,254 | $5,984 | |
EBITDA | ($4,460) | ($4,010) | ($3,650) | ($2,885) | ($2,885) | ($2,885) | ($2,300) | ($1,940) | ($500) | $2,380 | $4,420 | $6,150 | |
Interest Expense | $126 | $123 | $121 | $118 | $116 | $113 | $111 | $108 | $114 | $112 | $109 | $98 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($4,752) | ($4,299) | ($3,937) | ($3,169) | ($3,167) | ($3,164) | ($2,577) | ($2,214) | ($780) | $2,102 | $4,145 | $5,886 | |
Net Profit/Sales | -38.01% | -33.07% | -29.38% | -22.24% | -22.22% | -22.21% | -17.29% | -14.47% | -4.62% | 10.46% | 17.49% | 23.17% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $16,900 | $20,100 | $23,700 | $25,400 | |
Subtotal Cash from Operations | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $16,900 | $20,100 | $23,700 | $25,400 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,000 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $12,500 | $13,000 | $13,400 | $14,250 | $14,250 | $14,250 | $14,900 | $15,300 | $17,900 | $20,100 | $23,700 | $25,400 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | $7,400 | |
Bill Payments | $281 | $8,469 | $9,445 | $9,800 | $9,944 | $9,851 | $9,853 | $9,983 | $10,002 | $10,307 | $10,837 | $12,377 | |
Subtotal Spent on Operations | $7,681 | $15,869 | $16,845 | $17,200 | $17,344 | $17,251 | $17,253 | $17,383 | $17,402 | $17,707 | $18,237 | $19,777 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,000 | |
Other Liabilities Principal Repayment | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Long-term Liabilities Principal Repayment | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $8,281 | $16,469 | $17,445 | $17,800 | $17,944 | $17,851 | $17,853 | $17,983 | $18,002 | $18,307 | $18,837 | $21,377 | |
Net Cash Flow | $4,219 | ($3,469) | ($4,045) | ($3,550) | ($3,694) | ($3,601) | ($2,953) | ($2,683) | ($102) | $1,793 | $4,863 | $4,023 | |
Cash Balance | $40,419 | $36,950 | $32,904 | $29,354 | $25,661 | $22,060 | $19,107 | $16,425 | $16,322 | $18,116 | $22,979 | $27,002 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $36,200 | $40,419 | $36,950 | $32,904 | $29,354 | $25,661 | $22,060 | $19,107 | $16,425 | $16,322 | $18,116 | $22,979 | $27,002 |
Inventory | $3,000 | $1,750 | $1,450 | $1,474 | $1,568 | $1,568 | $1,568 | $1,639 | $1,683 | $1,859 | $2,211 | $2,607 | $2,794 |
Other Current Assets | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
Total Current Assets | $47,200 | $50,169 | $46,400 | $42,378 | $38,922 | $35,228 | $31,628 | $28,746 | $26,108 | $26,181 | $28,327 | $33,586 | $37,796 |
Long-term Assets | |||||||||||||
Long-term Assets | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
Accumulated Depreciation | $0 | $166 | $332 | $498 | $664 | $830 | $996 | $1,162 | $1,328 | $1,494 | $1,660 | $1,826 | $1,992 |
Total Long-term Assets | $4,000 | $3,834 | $3,668 | $3,502 | $3,336 | $3,170 | $3,004 | $2,838 | $2,672 | $2,506 | $2,340 | $2,174 | $2,008 |
Total Assets | $51,200 | $54,003 | $50,068 | $45,880 | $42,258 | $38,398 | $34,632 | $31,584 | $28,780 | $28,687 | $30,667 | $35,760 | $39,804 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $8,155 | $9,119 | $9,468 | $9,615 | $9,522 | $9,520 | $9,650 | $9,659 | $9,947 | $10,424 | $11,972 | $11,731 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $0 |
Other Current Liabilities | $13,600 | $13,300 | $13,000 | $12,700 | $12,400 | $12,100 | $11,800 | $11,500 | $11,200 | $10,900 | $10,600 | $10,300 | $10,000 |
Subtotal Current Liabilities | $13,600 | $21,455 | $22,119 | $22,168 | $22,015 | $21,622 | $21,320 | $21,150 | $20,859 | $21,847 | $22,024 | $23,272 | $21,731 |
Long-term Liabilities | $15,400 | $15,100 | $14,800 | $14,500 | $14,200 | $13,900 | $13,600 | $13,300 | $13,000 | $12,700 | $12,400 | $12,100 | $11,800 |
Total Liabilities | $29,000 | $36,555 | $36,919 | $36,668 | $36,215 | $35,522 | $34,920 | $34,450 | $33,859 | $34,547 | $34,424 | $35,372 | $33,531 |
Paid-in Capital | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 | $48,500 |
Retained Earnings | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) | ($26,300) |
Earnings | $0 | ($4,752) | ($9,051) | ($12,988) | ($16,157) | ($19,324) | ($22,489) | ($25,065) | ($27,280) | ($28,060) | ($25,958) | ($21,813) | ($15,927) |
Total Capital | $22,200 | $17,448 | $13,149 | $9,212 | $6,043 | $2,876 | ($289) | ($2,865) | ($5,080) | ($5,860) | ($3,758) | $387 | $6,273 |
Total Liabilities and Capital | $51,200 | $54,003 | $50,068 | $45,880 | $42,258 | $38,398 | $34,632 | $31,584 | $28,780 | $28,687 | $30,667 | $35,760 | $39,804 |
Net Worth | $22,200 | $17,448 | $13,149 | $9,212 | $6,043 | $2,876 | ($289) | ($2,865) | ($5,080) | ($5,860) | ($3,758) | $387 | $6,273 |
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Many people tend to want to find a place where they can store anything, may it be cold food items, grain, or even household items they may not have space to store at home. Even when it means that the production or the work they do can be stored somewhere else, they will find a way for that. It goes without saying to be able to do this as a form of business venture, you have to at least be prepared for anything. As they will always say it is best to have all your plans from A to Z. It is no secret that having a place to store the things you want and need is quite helpful as well. But before you are going to do that, do you have a business plan to back up the reason for having a self-storage business? You know you need one. So here are examples you can download for such use.
1. free self-storage business plan template.
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We know that a business plan is a helpful tool used wherein a summary of your strategies is going to be written. A self-storage business plan is a kind of business plan that shows the strategic, comprehensive, and simplest ways to write down what you want to happen for your self-storage business. A management plan. The contents of your business plan will show you the big picture of how your business will grow in the future or at a specific time. In addition to that, a self-storage business plan also helps you write down your goals, objectives, and strategies and how you are going to achieve them. Milestones are also written in order to see how far you have achieved. For a self-storage business owner, a self-storage business plan is a tool they need in order to attain this goal.
Making a self-storage business plan is useful. You may already have heard of that reason before, but it is true. Working on any kind of business plan for your business is useful. Now, you may also already have an idea set in mind for making that self-storage business plan of yours. But it won’t hurt to take a look at these other guidelines to set it up.
Making a draft and outlining your business plan will be a great help for you. It is also going to be easier if you do this step first before going through the final output. Drafting out your business plan does not mean you are wasting time on it, it simply means that you are meticulous with what you want to happen. To make it even better while you draft it out, use the SMART method for your business plan.
Make a checklist or list down the tools and the strategies you are going to be doing for your self-storage business. Making a checklist for the tools is going to be easier for you to list down the necessary things you may need and the right tools to make it work as well. As for the strategies, your strategies must be doable and can help you make your storage business a success. This is why when you think about your strategies, think about how they can make your business a success.
Define the goals and objectives in your business plan. When in doubt, remember the SMART method for your business plan. The goal of your business plan has to be what your self-storage is about. The same goes for your objectives. It should be doable, possible, and well-rounded objectives.
Milestones for your business plan help maintain where you are in the business plan. It also helps you in a way that gives you a bigger picture of how well the business plan is going. In addition to that, the milestone is also going to be the stepping stone for making your self-storage business flourish.
A self-storage business plan is a kind of business plan that provides an outline of a strategic tool to make your business flourish. It is a roadmap to do your self-storage business without having to go through a lot of risks that go with the job.
The reason why a lot of business owners use a business plan is to help them avoid risks that go with the business. It also helps them by giving them a guide to what works and what does not. Without a business plan, most businesses may not be as successful as those with business plans.
What should not be in a self-storage business plan is strategies that are too impossible to do. Strategies should be doable. These strategies help you with your business.
A self-storage business is like any other kind of business. It will need a business plan that will help it flourish. When you have no idea as to how to start one, you can always outline and draft. Define your goals and objectives; you must know what you want to expect in your business plan and go from there.
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Develop a project timeline for a middle school science fair.
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Electronics Store Business Plan Template & PDF Example. Juan. August 28, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful electronics store business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your ...
Safe Current is small business unit of The Cleveland Illuminating Company (TCIC), and electric utility. Safe Current was formed and will be lead by Brian Henderson. Safe Current has identified three key factors that will be instrumental to its sustainability: Ensure 100% customer satisfaction: Repeat customers and customer referrals are valuable.
Writing an electronics shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the whole business plan is ready ...
Marketing promotion expenses for the grand opening of Chris Logan® Consumer Electronics Retail Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580. The cost for hiring Business Consultant - $2,500.
How to Write an Ecommerce Business Plan [Examples & ...
Upmetrics' step-by-step instructions, prompts, and the library of 400+ sample business plans will guide you through each section of your plan as a business mentor. 1. Executive Summary. An executive summary is the first section of the business plan intended to provide an overview of the whole business plan.
Get the most out of your business plan example. Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from ...
Executive Summary. Rosafarbenes Nilpferd & Sons Engineering, Inc. (RNSE) has established a strong foothold in a niche technology market for Product Category One* devices. The potential market demand of 180 million units far outstrips the capacity of present suppliers and is growing at a rate of 22% annually. RNSE's success in taking advantage ...
A Step by Step Guide to Starting a Small Business. This is a practical manual in a PDF format, that will walk you step by step through all the essential phases of starting your Electronics business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and ...
Create brief descriptions of the fulfillment, shipping, and payment collections processes. Now for some nitty-gritty stuff. Your operational plan may feel like the "boring" part of your business plan, but it's important - and it'll give your creative brain a break for a little while. 4. Market Analysis.
Download. Business in a Box templates are used by over 250,000 companies in United States, Canada, United Kingdom, Australia, South Africa and 190 countries worldwide. Download your Electronics Company Business Plan Template in MS Word (.docx). Everything you need to plan, manage, finance, and grow your business.
How you establish loyalty beyond sales. After you figure out your technology methods, you have to come up with a technology budget. The business plan must also include the operations side of things. Determine who will be your manufacturer, secondary manufacturer, and shipping and fulfillment provider.
E-commerce business plans give an overview of what the management team expects to accomplish with the business and offer reasons why the readers should consider investing. This e-commerce business plan template is tailored specifically to e-commerce businesses, and all you need to do is add the details of your company.
Executive Summary. Every business plan needs an executive summary. Usually, you write the summary last, after you've fleshed out all the details of your plan. The executive summary isn't a repeat of the full plan—it's really just a brief outline that should be 1-2 pages at the most. When you're getting introductions to investors, you ...
electronics shop business plan - Free download as PDF File (.pdf), Text File (.txt) or read online for free. The electronics shop business plan details the launch and management of a retail store specializing in electronic devices. It encompasses market analysis, marketing strategies, financial projections, and operational guidelines. The goal is to meet consumer demand for cutting-edge ...
Writing an eCommerce business plan is one of the first steps you should take if you're thinking about starting an online business. Whether you're opening an online-only shop or adding an eCommerce component to your brick and mortar store for an omnichannel retail experience, there's never been a better time to sell online.. The numbers don't lie: since 2014, the number of digital ...
If you're wondering how to write a business plan for your electronics store, here are the things you need to include: 1. Executive summary. The executive summary in a business plan includes a gist of your entire electronics store. Further, it includes the general reason why it will turn out successful. Free Download.
In the ever-evolving world of technology, starting an electronics shop can be a lucrative venture. However, like any business endeavor, it requires careful planning and strategy to succeed.
5. Marketing plan. It's always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you'll get the word out about your business, and it's an essential component of your business plan as well. The Paw Print Post focuses on four Ps: price, product, promotion, and place.
Add brief details of your ecommerce business, target market, problem, solution, service model, business goals, and financial figures in this section. Adapt a narrative tone to make it interesting and keep it highly informative. And, most importantly keep it within a limit of 1-2 pages. Say goodbye to boring templates.
A business plan is a document that helps small business owners determine the viability of their business idea. Combining market research and financial analysis, a professional business plan helps startup CEOs and potential investors determine if the company can compete in the target market. Typically, a good business plan consists of the following:
1.1 Objectives. Tucson Electronics (TE) is a growth-oriented business. Its ten year goal is to become a regional leader in TV/VCR/home stereo repair, with shops in the Tucson and Phoenix area. With this in mind, the objectives over the next three years for Tucson Electronics are the following: Achieve steady growth in sales revenues by year ...
A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners.
It contains sections for media relations, online marketing plan, trade shows and events, sales campaigns, and other branding efforts. The template helps you to identify objectives, as well as the target market and a summation of costs. It makes creating a business plan for your marketing department very easy. 2. Sample Marketing Business Plan
Business plan made it possible to respond to this challenge efficiently which gave us a 40% revenue increase the next year." 14. Test different scenarios. A business plan can be used as a tool for scenario analysis. As the regulatory, economic, and competitive landscape of a business evolves, you need to test and plan for different scenarios ...
A self-storage business plan is a kind of business plan that shows the strategic, comprehensive, and simplest ways to write down what you want to happen for your self-storage business. A management plan. The contents of your business plan will show you the big picture of how your business will grow in the future or at a specific time.