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SAMPLE BUSINESS PLAN

SAMS KIDS STORE, INC

Disclaimer: This is a sample business plan, so the company and business information are fictitious. This plan reflects our standard business plan model, and changes in outline and structure can be made as per client specifications.

GENERAL COMPANY DESCRIPTION....................................................................... 4 MARKETING PLAN................................................................................................

C.Market Growth:................................................................................................................... E.Market Demand:................................................................................................................... G.Market Potentials:.............................................................................................................. H.Market Opportunities:......................................................................................................... I.Barriers to Entry:................................................................................................................ J.Regulations:........................................................................................................................ II.Service Potential:..........................................................................................................................

8
11 15 17 19 19 19 20

OPERATIONAL PLAN........................................................................................... 32
I.Service Execution Model................................................................................................................ II.Legal Environment........................................................................................................................ III.Personnel..................................................................................................................................... A.Managements Credentials and Expertise............................................................................ B.Experience in Management Position:.................................................................................... 32 33 33 34 34

FINANCIAL PLAN ................................................................................................ 36

I-Start-up Expenses Summary.......................................................................................................... II-Revenue Forecast (3- Year)........................................................................................................... III-Profit and Loss Projection (3-Year)............................................................................................... IV-Pro forma Cash Flows (3- Year).................................................................................................... V-Projected Balance Sheet:.............................................................................................................. VI-Breakeven Analysis...................................................................................................................... 36 38 39 41 42 43

APPENDIX .......................................................................................................... 44

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Executive Summary
1. Sams Kids Wear (SKW) is a retail store for kids wear with good quality and latest

trends owned by Mr. Samuels Arnold.

2. This business will cater to the needs of kids age from 6 to 11 3. Location of the business is assume an actual location

The Target audiences of the business are: Age 5 to 9 years 10 to 14 years Total (5 to 14 Years) 4. Slogan of the business is: Kids wear, with care Population 218,522 224,012 442,534

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General Company Description

I.

Company Overview:

Slogan:

Kids wear, with care

II.

Vision:

To be a distinguished kid-wear retailer known worldwide for the quality of products, setting new trends and lifestyles

III.

Mission:

To offer continuous value added products to our customers. To accomplish this, we focus on exceptional design, innovation, quality, convenience and interactive communication.

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Sams Kids Wear (SKW) is a retail store for kids wear with good quality and latest trends. We present an extensive range of kids wear that are manufactured using different fabrics such as Cotton, Silk, Wool and others. Available in a wide range of gorgeous colors, designs and prints, these apparels are designed keeping in mind the most up-to-date fashion trends.

IV.

Strengths and Core Competencies:

The foundation parameters on which we ensure the excellence of our garments are:

Material Cut Design conformation

Stitching Stability Finish Color fastness

V.

Challenges:

Increasing competition, especially from big chains like Wal-Mart, Gap and Limited Incorporations High cost materials Changing demands and catering to this demand Changing fashions and changing behavior of demographics

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Embroidery

Services Overview

I.

Services:

For different age groups, our variety of children wear is offered in different sizes and is tremendously comfortable to wear. Our offered clothing collections for kids are:

Hooded T-Shirts We offer an exceptional range of t-shirts with hoods that are offered in a multitude of colors and patterns. Printed T-Shirts We make an extensive range of in print t-shirts that are offered in diverse colors and prints. Children's T-Shirts An exclusive range of full sleeve children's t-shirts Half Sleeve T-Shirts We offer a broad range of half-sleeve t-shirts Cotton Knickers Knickers are one of the trendiest as well as the most comfortable garment for kids, Available in eye catching prints and colors.

II.

Benefits and Features:

Highlighted features:
-

Lovely designs and prints Eye-catching colors Long-lasting Apparels

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Comfortable to wear Available in various sizes

III.

Why people need this service?

A number of the factors that have made us the ideal choice of our customers are: Various variety under a single roof Quality guaranteed goods Customization Capacity to accept mass orders Well-timed delivery Easy payment modes of Cash

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Marketing Plan
I. Market Analysis:

A. Market Description US kids wear market is highly competitive market, especially after big retail stores and chains like Wal-Mart, Gap etc entered in the market. Market is shifting from growth to maturity. The clothing business saw approximately $167,934 million in retail sales; the share of the Children's & infants' clothing stores is $7,082 millions, the total share of the state Illinois is $328.8 millions, the share of Chicago is $43.356 millions.

B. Market Facts

a) Market Size: Clothing Industry of USA: In the year 2002, the clothing business saw approximately $167,934 million in retail sales, which were $136,398 millions in 1997. Women's clothing brought in $63,587 millions, men's apparel accounted for $27,941 millions, and Footwear, including accessories, accounted for $25,948 millions. Jewelry, including watches, watch attach, novelty jewelry, etc accounted for $23,950 millions, Children's wear, including boys, girls, & infants & toddlers accounted for $14,287. Others accounted for $12,218 millions.

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Product description Industry total Women's, juniors', & misses' wear Men's wear Footwear, including accessories Jewelry, incl watches, watch attach, novelty jewelry, etc Children's wear, incl boys, girls, & infants & toddlers Other

Sales ($mn) 167,934 63,587 27,941 25,948 23,950 14,287 12,218

Industry Sales % 100 37.86 16.64 15.45 14.26 8.51 7.28

These statistics computed on the information taken from US Census official site1.

http://www.census.gov/econ/census02/data/industry/E448.HTM (11th March 6, 2009)

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The clothing business saw approximately $167,934 million in retail sales, which are $136,398 millions in 19972.
Industry Ratios Total sales (Mil $) Sales per establishment ($000) Sales per employee ($) Sales per $ of payroll ($) Annual payroll per employee ($) Employees per establishment Sales per capita ($) Establishments per million residents 2002 167,934 1,121 117,719 7.85 14,995 9.5 582 519 1997 136,398 871 106,548 8.22 12,965 8.2 500 574

In total, there was a growth of about 23.1% from 1997 to 2002 in the industry. In this table, the total sales per establishment stands at $1,121,000 and sales per capita is $519 million. This table also shows other indicators such as sale per employee, sales per payroll, annual payroll per employee and comparison of these indicators with past data. In this table, this is clear that for the past 5 years, growth in every indicator is significantly huge which shows the potential of the market and that the market is growing drastically.

http://www.census.gov/econ/census02/data/industry/E448.HTM (11th March 6, 2009)

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Retail description Industry total Specialty stores Discounters Department stores Major chains Off-price stores Mail order Outlets Other stores

According to the American Apparel Manufacturers Association, the breakdown on total share of retail sales was as follows: Specialty stores: 21 percent; discounters: 19 percent; department stores: 19 percent; major chains: 17 percent; off-price stores: 7 percent; mail order: 6 percent; outlets: 4 percent; and other stores: 7 percent3. It highlights that discounter stores like Sams Kids Wear have the second largest share in the total retail sales in the USA.

C. Market Growth: The total US market for all clothing is $167,934 millions, out of which the share of the children's & infants' clothing stores is $7,082 millions which was $4,638m in 1997, almost grown by 50% since last 5 years.

http://www.census.gov/econ/census02/data/industry/E448.HTM (11th March 6, 2009)

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Industry Sales % 100% 21% 19% 19% 17% 7% 6% 4% 7%

Industry Sales 167,934,060 35266153 31907471 31907471 28548790 11755384 10076044 6717362 11755384

Market in 5 years grown very drastically, almost growth rate of 50% can be observed according to this graph. Industry Ratios
Total sales (Mil $) Sales per establishment ($000) Sales per employee ($) Sales per $ of payroll ($) Annual payroll per employee ($) Employees per establishment Sales per capita ($) Establishments per million residents

2002
7,082 1,080 105,690 9.03 11,708 10 24 22

1997
4,638 907 99,699 9.78 10,198 9.1 17 18

In this table with sales, different indicators are shown in a comparison of past 5 years and its clearly shown that sales per capita and establishments per million residents increased drastically with sales, showing immense growth in the market4.

http://www.census.gov/econ/census02/data/industry/E448.HTM (11th March 6, 2009)

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Retail description Industry total Kids Market Specialty stores Discounters Department stores Major chains Off-price stores Mail order Outlets Other stores

In this table, market share is shown as per type of business (Outlet type). If we look at it closely, major share is taken by specialty stores, discounters, department and chain stores. So for discounters its a great opportunity to penetrate in this market.

The above chart shows the share of Children's & infants' clothing stores in the USA as $7,082 millions out of which the total share of state Illinois is $328.8 millions5

http://www.census.gov/econ/census02/data/industry/E448.HTM (11th March 6, 2009)

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Industry Sales % 100% 21% 19% 19% 17% 7% 6% 4% 7%

Industry Sales 7,082.20 1,487.26 1,345.62 1,345.62 1,203.97 495.754 424.932 283.288 495.754

The above chart presents the share of Children's & infants' clothing stores i.e. $7,082 millions. The total share of the state Illinois is $328.8 millions which was $247 millions in 1997, which almost increased by 100 millions and 33% in last 5 years6.

Kids clothing market share of Illinois was $328.8 millions in 2002, out of which the share of Chicago is $43.356 millions. It highlights that market is growing at the rate of 33%.
6

http://www.census.gov/econ/census02/data/industry/E448.HTM (11th March 6, 2009)

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D. Market Trends: From 1995 to 2005 break dedicated to children's wear in malls more than twice Nationalized brands began producing small-sized versions of their teenager and mature lines and invested a lot in expanding their infant and children outfits brands.

Industry sales normally peak between late August and December. Throughout this phase, stores compete for valuable back-to-school sales and holiday gift purchases. Stores normally generate between 30 and 40 percent of their annual sales in these months.

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E. Market Demand: Shifting demographics made the children's and infants' wear business look attractive to new entrants and, therefore, the market became tremendously competitive. Big retail chains began to penetrate the market. Sales continued to grow. Fueling this growth was a climb in birth rates in the late 1980s and early 1990s, which amplified demand for infants' and toddlers' wear.

F. Industry Life Cycle Kids clothing market is at maturity stage although its generating good demand and sales and has good scope for businesses for next few years. The higher birth rate was observed in late 90s and early 2000s which boomed the market and now demand is still growing but with slow birth rates as compared to past years. This makes industry stand at maturity level in its life cycle. Although this sector of the industry is season-driven, this cycle will not affect it much.

With record high numbers of infants, toddlers, and children attending preschool during the year, clothing purchases for this slice are becoming less cyclical. This business has conventionally been highly seasonal, as with other clothing businesses, so spring is on the way, this is also the season for weddings, and Kids has some gorgeous dresses and suits for wedding parties. New sessions of schools will be starting in month or so (march to august) which also boost the sales of kids wear. Month of December also a high sales month due to Christmas celebrations people love to shop and buy presents

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Cyclical trends in Industry

Description Clothing and clothing access. stores

Clothing stores Men's clothing stores Women's clothing stores Family clothing stores Other clothing stores

Jan. 2002 10,36 1

7,474 539 1,989 3,596 681

Feb. 2002 11,75 5

7,979 532 2,162 3,851 657

Mar. 2002 14,00 2

10,190 656 2,783 5,058 753

Apr. 2002 13,21 8

9,528 631 2,683 4,728 677

May-0 Jun. 2 2002 14,17 7 13,233

9,894 663 2,759 4,984 703 9,540 649 2,482

Description Clothing and clothing access. stores

Clothing stores Men's clothing stores Women's clothing stores Family clothing stores Other clothing stores

Jul. 2002 12,89 5

9,347 592 2,262 5,035 643

Aug. 2002 15,13 7

10,814 695 2,540 5,843 675

Sep. 2002 12,46 5

9,147 606 2,375 4,700 626

Oct. 2002 14,02 7

10,471 672 2,533 5,638 730

Nov. 2002 15,93 6

11,711 764 2,742 6,527 755

Dec. 2002 25,41 1

16,859 1,120 3,970 9,391 1,193

As green color filled columns show, sales during March, August, November and December is very high in the US7.

G. Market Potentials: Shifting demographics made the children's and infants' wear business attractive to new entrants and, therefore, tremendously competitive. Sales will continue to grow in the next 3 years:

http://www.census.gov/econ/census02/data/industry/E448.HTM (11th March 6, 2009)

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4,954 713

In the next 5 years, total sales in kids clothing retail market will be $57.66 millions and in 2012 will be $76.7 mill. It shows that theres a huge and profitable market for Children's & infants' clothing stores in the city of Chicago, which is growing at rapid rate. This growth was due to a climb in birth rates, which amplified demand for infants' and toddlers' wear.

Retail description Industry total Specialty stores Discounters Department stores Major chains Off-price stores Mail order Outlets Other stores

Industry Sales % 100% 21% 19% 19% 17% 7% 6% 4% 7%

Market Sales 43.35 9.1035 8.2365 8.2365 7.3695 3.0345 2.601 1.734 3.0345

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The above are the growth potentials for this type of business. It clearly shows if you are a discounter, u can penetrate easily and win very huge share almost of $8.24 millions. Even if you are a simple outlet, you can be in the class to earn 1.73 million markets as just a starter, which is not a bad option. It shows great potential for small business or any starter in the market.

H. Market Opportunities: Market is growing with a rapid rate so its a great opportunity to enter in the market where demand is increasing drastically Birth rate has remained high in the past 5 years meaning more potential for kids wear purchasing. Country is going through recessionary period so parents are on tight budget, which is a great opportunity for our business to offer discounts and low pricing packages to attract our consumers This business has conventionally been highly seasonal, as with other clothing businesses, so spring is on the way, this is also the season for weddings, and Sams Kids Wear has some gorgeous dresses and suits for wedding parties. New sessions of schools will be starting in month or so. With the infants' and children's wear division on the rise, the industry's opening products continue to be licensed apparel, such as Scooby Doo, Star Wars, Bob the Builder, and Blues Clues as well as sports-related licenses and focusing on these character printed wears business can achieve huge sales as demand of these characters is increasing amongst kids.

I. Barriers to Entry: Market is highly competitive, so no such barriers exist in the industry.

J. Regulations: No such regulations except license required from animator of the character which will be used in printing.

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II.

Service Potential:

As our business is clothing for kids, and in this sector trends changes quickly, so potential products will always be in line with differentiation of colors and design.

III.

Targeted Audience:

Since our business is kids wear, so our primary target audience will be:

Primary Target: Age: 6-11 years Secondary: Family Our target markets for kids clothing are Parents (Mother / Father).

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Demographics:

Total population of Chicago is 2,896,016 and our target audience is:

Age 5 to 9 years 10 to 14 years Total (5 to 14 Years)

According to US Census Bureau

Population 218,522 224,012 442,534

Characteristics of Targeted Customer Groups (sales): Description Market Total Girls' clothing & accessories Infants' & toddlers' clothing & accessories Boys' clothing & accessories Other % 100% 50.86 % 23.77 % 19.03 % 6.34% Sales ($ mil) 43.35 22.05 10.3 8.25 2.75

These stats are clearly showing that in kids sectors, girls wear sales is 50 % of the whole kid sector so our products line would be according to the needs of the market and purchasing trends.

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IV.

Competition:

Anne's Kids Products:

-

Bridal gowns Flower girls and Bridesmaids

4509 N Clark St, Chicago, IL

LMNOP Products:
-

Missing Dog Head T-Shirt Black Ladies T-Shirt Babysue T-Shirt

2574 N Lincoln Ave, Chicago, IL

Pottery Barn Kids

Products:
-

Girls' Bodysuits & Tops Girls' Sweaters & Jackets Girls' Dresses & Pants Outfits Boys' Bodysuits & Tops Boys' Sweaters & Jackets Boys' Overalls & Pants Gifts & Accessories Newborn Collection
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Baby Clothing Sale

2111 N Clybourn, Chicago, IL Wear Me Out Childs Wear

-

Children's boutique clothing Boys formal wear and girls formal wear Boys suits and tuxedos

3724 N Southport Ave, Chicago, IL

Cool Baby Girl Clothes Cool Baby Boy Clothes Hip Girls' Clothing Hip Boys' Clothing Cool Baby & Kids' Tees Trendy Shoes

1630 N Damen Ave, Chicago, IL

V.

Market Niche:

Our niche market is kids sector or people who buy kids wear.

VI.

Marketing Strategy

Basic strategy of our business is to launch kids wear by the next two months. Initially we launch normal kids wear which will cater the needs of masses. By the end of the year, we will launch customized products to cater to the need of every individual customer. Later on, school accessories and school wear are also in the pipe line

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Psycho Baby

a) Value Proposition Sams Kids Wear:

Our core value proposition is that we will add value to our product by providing matchless kids wear with extensive range of color and different sizes in comfortable and durable fabric with easy mode of cash transactions at comparatively low prices.

b) Branding We position our selves as a brand, which gives quality products at fairly low prices with extensive range of vibrant colors and continuous value addition to our products with innovative ideas in design in printing.

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c) Marketing Objectives Image ourselves as a brand with competitive edge

To offer continuous value added products to our customers To achieve our financial target Set a benchmark in industry as a cost leader through minimization of waste and improve performance

d) Strategy

Meet the demands of market and supply demanded goods on time without any barrier or hurdle Offer excellent products at low price Make products according to the needs of the customer Give good hassle-free ambiance for shopping, which will help the business and give edge over rivals Develop a kids-friendly store environment and decoration, which will attract parents to bring their kids in the store and shop with comfort.

VII.

Marketing Budget:
2009 2010 $350,000 2011 $350,000

Marketing and Promotion

$150,000

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VIII.
Strength:

SWOT Analysis

Huge Product Line with variations. Business will have longer hours and better prices as compared to competitors. Discounts are available for bundle buying.

Expertise in providing good customer service Online selling could be a competitive edge over similar rivals Customization available for individual customers

Weakness: New in business as compare to rivals Huge capital required to start business as credit is not easily available from supplier in start Marketing expense in the start will be huge, to establish brand name required lot of advertising

Opportunity:

Seasonal business: in summer demand is very high as new academic session starts and also a wedding season Sector is growing fast in state and in the area our business operating Girls wear demand is huge so adding value in this category will be the great advantage High birth rate since past years is another opportunity for kids wear section Animated movies increased the demands and popularity of printed shirts for kids

Threat:

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Expertise in getting new products to the market quickly

Competition is high and big chains like Wall-Mart, Gap and Limited Incorporation introduced their kids shops in the city and penetrating in market People are more conscious for pricing due to recession and going for discounts

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Graphical Presentation of SWOT

Helpful
For achieving the objectives

Harmful
For achieving the objectives

Strength
Huge Product Line with variations Business will have longer hours and better prices as compare to competitors Discounts are available for bundle buying Expertise in getting new products to the market quickly Expertise in providing good customer service Online selling could be a competitive edge over similar rivals Customization available for individual customers

Weakness
New in business as compare to rivals Huge capital required to start business as credit is not easily available from suppliers in start Marketing expense in the start will be huge, to establish brand image required lot of advertising

Opportunities

Threats
Competition is high and big chains like Wall-Mart, Gap and Limited Incorporation introduced their kids shops in the city and penetrating in market

Extern al

Seasonal business: in summer demand is very high as new academic session starts and also a wedding season Sector is growing fast in state and in the area our business operating

Girls wear demand is huge so add value in this category will be the great advantage

People conscious for pricing due to recession discounts and going for

High birth rate since past years is another opportunity for kids wear section

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Interna l

IX.

Marketing Mix

a) Product: We present an extensive range of kids wear that are manufactured using different fabrics such as cotton, silk, wool and others. Available in a wide range of gorgeous colors, designs and prints, these apparels are designed keeping in mind the most up-todate fashion trends. The different age groups, our variety of children wear is offered in different sizes and is tremendously comfortable to wear. Our main wearing collection offered for kids are:

Hooded T-Shirts We offer an exceptional range of t-shirts with hoods that are offered in a multitude of colors and patterns. Printed T-Shirts We make an extensive range of in print t-shirts that are offered in diverse colors and prints. Children's T-Shirts An exclusive range of full sleeve children's t-shirts Half Sleeve T-Shirts We offer a broad range of half-sleeve t-shirts Cotton Knickers Knickers are one of the trendiest as well as the most comfortable garment for kids, Available in eye catching prints and colors.

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b) Price: Penetration Pricing will be the pricing strategy for our business, as our business is new and at the high street of Chicago where competition is huge, so we try to give good quality at low price to penetrate in the market and try to achieve higher sales volume to set low price and better quality strategy. Once we achieve this objective then try to charge higher price for our customized products for value addition.

c) Place: At one of the high street of Chicago City

d) Promotion: Advertising: 1. Above The Line:

Internet

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Radio Magazines ( Parents and kids magazines only) Newspapers ( Only Weekends for two or three weeks)

2. Below The Line:

Flyers ( through hawkers) Coupons

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Operational Plan
I. Service Execution Model

SKW will sell products by following methods: Retail Store: They will open a store in Chicago, Illinois area which will be the primary location for their supplies storage also. Online Selling: They will offer their main products on the website, which will provide convenience to customers in purchasing kids wear and related products.

Sams Kids Corner

2009 launch objectives
March 2009 April 2009 May 2009 June 2009 July Sept. 2009

Select Location

Develop Store Start Basic Kids Products available for Selling

Start Online Selling

Full services (Customization) Expand Product Line Start Planning For New Location

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Location: N Damen Ave Chicago, Illinois.

II.

Legal Environment

SKW has no legal obligations with their suppliers and customers except for the printing of animated copyright characters. The company faces no major legal constraints other than the restriction of marketing directly to children under age 13 under the Child Protection Laws.

III.
Management and Organization

Personnel

SKW operates with 5 people staff. It helps them controlling budget and decreasing overhead expenses as well.

Mr. Samuels Arnold (Owner/Manager/Accountant)

Supervisor Inventory (Retail and Store)

Tailor
(For Basic Customization)

Sales Person 1

Sales Person 2 33
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IV.

Management Strength

A. Managements Credentials and Expertise

Academic:

Professional: Mr. Sam has vast experience of retailing and clothing business at top levels in some of the biggest chains at international and national level for 5 years.

B. Experience in Management Position:

Mr. Sam has worked as a senior manager for clothing section of Wall-Mart for almost 3 years. He has also worked as Assistant director kids section at Gap international for 2 years. He has also been continuously involved in strategic planning and decisionmaking in the companies.

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Mr. Sam is Business Graduate from University of Chicago having good academic knowledge of retail business.

Advisor & Consultant: Chicago business consultants group inc. Our Lenders say YES, when your bank says NO. Ronald J Filian 847-839-8810 Phone 866-344-4339 Fax

300 West Adams Street Chicago, IL 60606 (312) 357-1840

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Advance Consulting Group International

Financial Plan
IStart-up Expenses Summary

The start-up expenditures for Sams Kids Wear (SKW) are summarized below:

Sams Kids Wear Sources of Capital

Investment requirement Total Investment $1,000,000 $1,000,000

Startup Expenses
Retail store development In-store Staff Capital Expenditures Consulting Services Promotion Total Start-up Expenses $346,000 $290,000 $150,000 $90,000 $5,000 $881,000

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Startup Expense Summary

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II-

Revenue Forecast (3- Year)

Revenue Forecast (3 Years)

Sams Kids Wear, Inc
Year 1 Year 2 Year 3

Hooded T-shirts Printed T-shirts Children's T-shirts Half Sleeve T-Shirts Cotton Knickers sub total clothing range

$367,500 $428,750 $245,000 $122,500 $61,250 $1,225,000

$1,470,000 $1,715,000 $980,000 $490,000 $245,000 $4,900,000

$4,410,000 $5,145,000 $2,940,000 $1,470,000 $4,410,000 $14,700,000

Accessories Total Revenue

$1,225,000

$35,000 $4,935,000

$42,000 $14,742,000

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Kids Clothing Range

III-

Profit and Loss Projection (3-Year)

Year 1 Year 2 Year 3

Revenue (Sales) Kids clothing range Accessories Total Revenue (Sales) Operating Expenses $346,000 $1,225,000 $1,230,000 $4,900,000 $35,000 $4,940,000 $14,700,000 $42,000 $14,751,000

Retail store development In-store Staff

$290,000

$840,000

$940,000

Capital Expenditures

$150,000

$148,200

$150,000

Consulting Services Promotion

$90,000 $5,000

$480,000 $6,000

$480,000 $6,000

Total Operating Expenses

$881,000

$1,474,200

$1,576,000

Profit Before Taxes

$322,900

$3,385,800

$13,025,000

Taxes (10%)

$32,290

$338,580

$1,302,500

Net Profit

$290,610

$3,047,220

$11,722,500

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IV-

Pro forma Cash Flows (3- Year)

Pro forma Cash Flows

Sams Kids Wear
Year 1 Cash Received Year 2 Year 3

Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received New Borrowing Subtotal Cash Received $1,000,000 $2,230,000 $0 $4,940,000 $0 $14,751,000 $1,230,000 $4,940,000 $14,751,000

Expenditures

Expenditures from Operations In-store Staff Consulting Services Promotion Subtotal Spent on Operations

$290,000

$840,000

$940,000

$90,000 $5,000 $385,000

$480,000 $6,000 $1,326,000

$480,000 $6,000 $1,426,000

Additional Cash Spent $32,290 Taxes Purchase Long-term Assets Subtotal Cash Spent $810,000 $1,227,290 $810,000 $2,474,580 $1,345,000 $4,073,500 $338,580 $1,302,500

Net Cash Flow Cash Balance

$1,002,710 $1,012,710

$2,465,420 $3,478,130

$10,677,500 $14,155,630

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$1,230,000

$4,940,000

$14,751,000

V-

Projected Balance Sheet:

Balance Sheet (Projected) Sams Kids Wear, Inc

Beginning Assets Current Assets Cash in bank Accounts receivable Prepaid expenses Total Current Assets Fixed Assets Capital Expenditures Store Furniture Total Fixed Assets TOTAL Assets Liabilities and Equity Current Liabilities $0 Accounts Payable Long-term Debt Bank loans payable Total Liabilities Owners' Equity Retained earnings - beginning Retained earnings - current Total Owners' Equity Total Liabilities & Equity $507,500 $507,500 $507,500 $290,610 $798,110 $1,838,250 $0 $0 $1,000,000 $1,040,140 $40,140 $346,000 $150,000 $496,000 $507,500 $660,000 $150,000 $810,000 $1,838,250 $10,000 1,500 $11,500 $1,012,710 14,040 1,500 $1,028,250 Projected Year 1

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VI-

Breakeven Analysis

Breakeven Analysis
Sams Kids Wear, Inc

Cost Description Variable Costs Consulting services Fixed Costs Retail store development In-store Staff Capital Expenditures Consulting Services Promotion Taxes Total Fixed Costs Personnel

Fixed Costs ($)

Variable (%) 10.00% 3.00%

Costs

$346,000 $290,000 $150,000 $90,000 $5,000 $32,290 $913,290

Total Variable Costs

13%

Breakeven Sales level =

1049759

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Appendix

NOTE: All statistical data for sales and for population demographics were taken from official websites of US census and economic census.
www.census.gov http://www.census.gov/econ/census02/data/industry/E448.HTM

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