Start-up Funding | |
Start-up Expenses to Fund | $123,300 |
Start-up Assets to Fund | $126,700 |
Total Funding Required | $250,000 |
Assets | |
Non-cash Assets from Start-up | $50,000 |
Cash Requirements from Start-up | $76,700 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $76,700 |
Total Assets | $126,700 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Devon Nevius | $100,000 |
Kevin Meinert | $75,000 |
Other Investor(s) | $75,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $250,000 |
Loss at Start-up (Start-up Expenses) | ($123,300) |
Total Capital | $126,700 |
Total Capital and Liabilities | $126,700 |
Total Funding | $250,000 |
The management team of SAFEassure, LLC will initially use a residential apartment in Portland to run operations. In Year 2, we will move to a rented office. Distribution will remain outsourced.
SAFEassure’s product line provides a unique control level to managers, supervisors and parents alike. We have two basic product lines: CHILDassure, intended for day care facilities, and an antimicrobial-based product for hospitals (HEALTHassure) and restaurants (FOODassure) – the antibacterial products are not yet in development. The various product lines, competitors and future product possibilities for SAFEassure, LLC will be outlined in the following section.
In order to sell our product while creating familiarity and a positive brand image, it will be necessary to develop brochures and literature to emphasize the safety and beneficial attributes of fading dye soap, many of which may not be readily apparent to an interested party. These will be delivered both in person during a sales presentation and by direct mail.
The key to our success is the time-sensitive dye. Once the proper ratio of dye to base soap is isolated, the fragmented nature of the soap industry provides many options for outsourcing production. Similar to any commodity, economies of scale require the soap to be produced, packaged and distributed in large batches. Initially, the soap base will be purchased in quantities of at least 38,000 gallons for approximately $50,000. Once the relationship with the manufacturer is established, our subsequent purchases will be approximately for $20,000. These inventory amounts should be sufficient to for SAFEassure, LLC to meet the customer demand. Utilizing his production and distribution knowledge, Rick Brown will use existing established relationships in the industry to help us mix, package and distribute the product line.
The technology of our fading dyes will be pivotal in the success of our company. The interactions between fading dyes and antibacterial or anti-microbial bases suitable for use in restaurants or hospitals are more complicated than the interactions with the glycerin or lotion soaps utilized in the CHILDassure line. As soon as cash flow permits, projected to be in 2008, SAFEassure, LLC will employ a professional chemist with experience developing dye products to further the research into technological innovations that may produce antibacterial and anti-microbial versions of the soap to address additional markets.
Additional soap products, manufactured to comply with regulatory minimums for strength and effectiveness in their respective target markets will be developed to address restaurants and hospitals. These soaps will be trade marked under the names FOODassure and HEALTHassure, respectively.
Perhaps the most promising future market opportunity for fading dye soap is the retail market. This product line will include soaps using the same or similar dye colors as the day care to encourage children to wash their hands more often at home. This will be a top priority when the company develops the financial resources enough to mount a national advertising campaign and distribution system. A complete line of fading dye products could potentially be developed, including floor, counter and body cleaning products that use fading dyes to indicate places on a surface that may not have been cleaned.
There is tremendous potential for a product that provides supervisors and parents with the control to monitor and encourage hand washing. Considering the large scope of our potential markets, we feel it is imperative to focus our limited resources on a particular geographic region where we can establish demand for our product. After successful market penetration, we will begin implementation into the restaurant and hospital markets.
SAFEassure’s first product line addresses the day care market. CHILDassure will first be introduced in the Portland, OR area, before sequential expansion to additional day care markets. There are currently 516 day care facilities in the Portland Metro area. After successful implementation in Portland, we will begin expansion into the greater Northwest. There are 3,414 day care facilities in the greater Northwest.
Successful penetration into the day care market will be followed by implementation into the restaurant and hospital markets. There are currently 19,362 restaurants in the Northwest, followed by health care services, which includes 23,108 organizations in the Northwest.
The Industrial and Institutional soap industry, of which we are a part, is quite fragmented, but contains several well known main competitors: Gojo, Kimberley Clark, Dial, Provon, and SoftSoap, as well as generic brands that provide to distributors like Massco and Sysco. The industry is stable and growing; between 1998 and 2003 it grew by an average of 4% annually. Within the I&I sector there is fierce competition for market share among the existing popular soap offerings, leading to lean profits on soap sales.
Distribution in the soap industry is provided by regional providers. These distribution companies usually serve a large portion of the market based on the respective size of the market, delivering to the organizations monthly or bi-monthly depending on demand and usage patterns. Food services typically receive deliveries of cleaning products once a month. Hospitals typically have a distribution system that operates on monthly deliveries of large quantities. Restaurants typically have a weekly delivery schedule.
Commercial customers select soap based on the necessary minimum safety regulations for the intended user; restaurant and hospital regulations require anti-bacterial/microbial. Customers will typically select a product based on price, distributor availability, and convenience. Distributors will deliver a complete order of cleaning and maintenance products to customers. Major competitors sell to a variety of customers, including distributors like Sysco, who receive generic soap from bulk producers, then repackage and deliver it along with other products it sells, utilizing the same distribution systems.
Traditional soap producers Soap is a common and familiar the commodity of necessity to every company. Traditional soaps employ pleasant scents and dyes to encourage hand washing compliance. However there is no way to verify if hand washing has occurred and traditional soaps do little beyond the pleasant scents to encourage hand washing.
The largest current soap producer, Dial Corp, consistently achieves strong sales, and has enjoyed strong market share in the commercial markets. Producing a wide variety of soap products, Dial has maintained 18% in market share over the last decade. The other largest commercial soap providers include Kimberly Clark, Gojo, SoftSoap, Provon and NXT.
This system has limited value to business managers because they are expensive to install and lease, and do not necessarily increase employee compliance. They provide managers the ability to track usage, but do not help control day-to-day hand washing compliance individually or immediately.
Disposable Gloves Hypo-allergenic gloves are the solution provided by some organizations to combat the threat of hand washing non-compliance. To limit the risk of hand contamination, many restaurants and all hospitals require the use of gloves. Although gloves eliminate the risk of direct hand contamination they are not without downfalls:
The soap industry is highly fragmented. There are more than forty different Institutional soap products that compete in the market.
Our initial day care market will consist of medium to large day care organizations, consisting of twenty or more children. Organizations such as Kindercare and La Petite Academy represent very attractive opportunities for our products. Organizations of this type are attractive because they are well managed, successful, health conscious and nationwide. Within these organizations we will target decision level managers with the power to implement use of our product in those locations.
According to a study published in the medical journal, Infectious Diseases in Children, researchers in hand washing recovered fecal coliforms from the hands of one out of every five staff members, citing that more than 33% of day care facilities “had poor hand washing techniques and no policy for hand washing before eating or after playing outside. In spite of all the studies about the benefits of hand washing, improper or infrequent hand washing continues to be a major factor in the spread of disease in day-cares.” (http://www.ehs.wustl.edu/Topic/top500.htm)
Hand washing in child care facilities is an ideal initial target market for several additional reasons:
In a study cited by Family Practice News in 1996, “Scientists had kids wash their hands when they arrived at school, before lunch then again after lunch time, recess and one more time before heading home every single day.” As a result of these ‘scheduled’ wash times, researchers found that “a month later, these kids had 24 percent fewer days off from colds, sniffles and flus and a whopping 51 percent fewer sick days because of gastrointestinal complaints like stomach cramps or diarrhea.” (http://www.healthcentral.com/drdean/deanfulltexttopics.cfm?id=15538)
With nearly 12 million children in child care facilities across the nation there is a clear need for CHILDassure, our first product, that can both encourage and help monitor child and employee hand washing to ensure a safe, clean environment for children. Additional future target markets also have significant need for fading dye products:
There has been a recent effort by the Food and Drug Association, the Center for Disease Control, the National Restaurant Organization, and others to promote education to increase hand washing compliance in target markets. The focus of these programs is to educate and encourage preventative control measures for children and workers to help reduce diseases and lawsuits. This has led to greater awareness in our target markets about maximizing cleanliness and minimizing preventable illness.
There is an additional trend in both our target markets and industry towards organic based soaps. Organic products have become increasingly associated with safety and health in a variety of different markets. Our completely organic soap is complementary to this growing market trend.
The demand for child day care services will continue to grow. As the labor force participation of women between the ages of 16 and 44 remains high, parents of preschool and school-age children are expected to seek more day care arrangements. As parents continue to work during weekends, evenings, and late nights, the demand will grow significantly for child day care programs that can provide care during nontraditional hours. School-age children, who generally require child day care only before and after school, increasingly are being cared for in child care centers. (U.S. Department of Labor, www.bls.gov/oco/cg/cgs032.htm )
The key element in SAFEassure’s initial strategy is to sell the fading dye soap in Portland’s day care facilities. Our executive team will build loyalty for our products with decision-level managers of the organizations in the target markets, and create awareness and support of the benefits of the innovative fading dye attributes of our soap.
Our ultimate strategy is to build SAFEassure’s products into the standard for home and workplace hand washing safety and cleanliness, first regionally and eventually nationally. Our tactics to increase compliance through the use of our product include continual and progressive expansion into new markets and a strong branding campaign in coordination with promotional contracts with the government and possibly insurance companies.
Marketing strategy.
For our initial target market of day care facilities, the company will implement two parallel marketing efforts, aimed respectively at day care facility decision makers, and the parents of young children who use these facilities. We will create a push factor by effectively convincing the decision-level managers within the organizations that our product provides an ideal solution to the hand washing compliance. A “first to mind” branding campaign will build CHILDassure as the leader in increasing hand washing compliance. Significant parental support will encourage organizations to implement CHILDassure in environments involving their children.
CHILDassure is valuable to day care managers who need effective control solutions to ensure frequent child and child-care worker hand washing to keep the environment clean and to minimize preventable illness. No other product on the market serves the hand washing compliance aspect of workplace safety with such an affordable, direct and complete solution. Unlike traditional soaps, our product provides conclusive evidence every time an employee washes his or her hands for only a marginally higher cost than traditional soaps, and significantly less than gloves or other hand washing compliance systems.
Retail pricing for CHILDassure will generally be around $90/case for four gallons and will command a 25-30% price premium over conventional liquid soaps. The value of our product will not be attractive to extremely price sensitive customers. The market for soap is generally inelastic, but our product offers significant differentiating benefits over current soaps that justify the price difference.
One of the most important aspects of a successful launch is positive publicity for our product. We will develop an awareness campaign to promote our product through several avenues. Our management team will fiercely pursue positive public perception through government endorsements promoting the benefits of our products. We will also attempt to capitalize on the novelty of the solutions provided by our product by actively seeking local news and media coverage to help spread awareness. Buzz will be developed in social hubs by distributing samples to parties with potential interest. Parental support of the product will be garnered through free trials, demonstrations, and direct mailings to the day care parent roster lists, parent groups and PTA’s.
At washing stations in client facilities we will spread awareness with stickers targeted towards children, showing them the process of washing to turn their hands different colors and emphasizing how fun it can be. Pamphlets will be sent to the family homes through the day care roster mailing lists, to calm fears regarding a new product in their child’s environment, explain the benefits and encourage the parents to respond and build feedback for the benefits of the product to further increase implementation.
Some of the government programs of interest are the various compliance and workplace hygiene programs supported and funded by the Center for Disease Control (CDC), the Food and Drug Administration (FDA) and the National Center for Disease Control (NDIC). Programs such as the Health Protection Research Initiative implemented by the CDC demonstrate an invested interest by government programs in increasing the overall health of Americans.
Our initial distribution strategy will involve a combination of distributor and direct sales. Relationships with local Northwest distributors will be established to increase promotional reach and potential users. The first orders will be available immediately through direct delivery by our executive team. Outsourcing distribution entirely in the future will allow SAFEassure, LLC to focus its efforts on marketing and expanding as quickly as possible.
Distributors will pay for the inventory up-front, and although this cuts our profit margins it helps SAFEassure, LLC to maintain a more flexible structure. By the start of 2007, distribution will be entirely outsourced to distribution companies, and direct deliveries from the executive team will cease.
Our most important marketing program is our branding program, aimed initially at regional chain and franchise managers. This program is intended to penetrate the target markets, and establish SAFEassure’s products as the soap of choice. Achievement should be measured against our projected 45% monthly sales growth rate for the first year.
Emphasizing the risks associated with hand washing non-compliance, our marketing program will employ the fear of disease, costs of illness and government regulations extensively. Written materials will convey urgency, connect users to the underlying problem and suggest SAFEassure’s products as the optimal solution to the problem.<
Sales strategy will initially address local and regional managers with ordering authority for the establishments in that area. The prospective clients will be supplied with a professional product information packet and moved into the sales funnel to begin closing prospect, followed up with a direct mail brochure and a phone call.
There will be no initial direct compensation or commission for closed sales. Proceeds from sales will be invested back into developing and expanding the business. As the company begins to increase its initial sales force, commission-based incentive programs will be implemented.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
CHILDassure soap (day care) | $237,168 | $450,620 | $856,177 |
HEALTHassure/FOODassure | $0 | $0 | $0 |
Total Sales | $237,168 | $450,620 | $856,177 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
CHILDassure soap (day care) | $94,867 | $178,351 | $321,031 |
HEALTHassure/FOODassure | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $94,867 | $178,351 | $321,031 |
SAFEassure, LLC will initially encourage critical strategic alliances in two distinct areas:
Distributors
The relationship between SAFEassure, LLC and the product distributors will be essential. A flexible distribution system will be critical to the success and growth of our product. Good distribution will allow our product to satisfy and flexibly expand to accommodate demand.
The Government
By teaming up with government organizations, SAFEassure, LLC will be able to utilize existing hand washing compliance programs to reach a much larger potential audience than could be directly contacted. Government endorsement of our product, and the mention of its benefits in government brochures and written materials could be a major competitive advantage and sales opportunity for SAFEassure, LLC.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Develop Approximate Prototype | 7/1/2004 | 9/1/2004 | $0 | Founders | Product Dev. |
Attain Funding | 7/1/2004 | 11/1/2004 | $0 | Founders | Product Dev. |
Develop Final Prototype | 9/1/2004 | 2/1/2005 | $80,000 | Founders | Product Dev. |
Safety Testing | 12/1/2004 | 3/1/2005 | $20,000 | Founders | Product Dev. |
Begin Patent Process | 12/1/2004 | 1/1/2007 | $10,000 | Founders | Legal |
Design Promotional Material | 11/1/2004 | 3/1/2005 | $25,000 | Founders | Marketing |
Begin “Phase One” Marketing | 4/1/2005 | 12/31/2006 | $18,000 | Founders | Marketing |
Begin R & D of New Products | 6/1/2008 | 6/1/2009 | $75,000 | Founders | R & D |
Totals | $228,000 |
Our website will be available as a resource to customers and interested parties. It will include statistics, surveys and articles to build awareness about the need for and benefits of our product. The website will provide interested parties with a way to contact our company for answers to any questions they may have, and will include information on ordering and locating the product. Our product will not be directly available online, but we will build positive perception and awareness about our product there through statistics and user testimonials demonstrating our value.
We will include the URL in all printed materials, and encourage distributors to link to our site. Because the audience for SAFEassure’s products is fairly specialized, the most efficient means for marketing the site will be working specifically with the intended customers and pointing them to the site. The site will be registered with search engines.
After the initial implementation of CHILDassure, the site will also be used as a resource to promote our other fading dye products as they are developed. The website will then be converted into a multiple product site, perhaps expanding its offering to include direct ordering. The initial website, being fairly simple, will be built by the executive team and supported by one website professional. Initial development is estimated to cost less than $500.
Two of our strengths are the low cost structure and flexible personnel needs. Sales people with experience relevant to each new respective target market can be attained as need dictates, but the initial management team consists of the founders themselves, with little operational support. The Board of Advisors will be a critical foundation for the successful growth and development of SAFEassure, LLC.
Initially, both founders will share in the operational and financial responsibilities of the company. They will be responsible for finding, attaining and managing new accounts. Both founders will be responsible for making direct sales, marketing, and all other operational tasks involved with making this company successful. The CEO will oversee all company decisions.
Principals:
Devon Nevius: President/Founder/CEO
Devon Nevius will oversee operations in all aspects of the business. In addition to managing client relationships, marketing and product expansion, Mr. Nevius will be responsible for hiring new personnel members to enhance the management team. Mr. Nevius will be receiving his bachelor of Science Degree in Business Administration from the University of Oregon with a concentration in Entrepreneurship.
In addition to this, Mr. Nevius founded and managed Green Leaf Collegiate Landscaping in Eugene, Oregon while a full-time student. Gross sales for the company reached $75,000 in 2004, and the company employed two foremen in addition to Mr. Nevius and his partner. Green Leaf Collegiate was sold early in 2004.
Kevin Meinert: Founder/COO
Kevin will contribute in both sales and financial management for SAFEassure, LLC He has worked as a manager at a restaurant and as a computer technician with several years of experience. In the spring of 2004, he will be receiving his bachelor of Science degree in Business Administration from the University of Oregon with a concentration in Entrepreneurship.
Board of Advisors:
Jack Soap: With over ten years in the soap industry, Mr. Soap has developed significant relationships and experience with other industry leaders. Currently running Birth to Three, a Eugene company that develops child hearing aids and programs for young parents, Mr. Soap is a dedicated, experienced and successful entrepreneur. He will be a valuable asset to the creation, set up and implementation of our product. Mr. Soap will consult and provide market information to the executive team and use his established contacts and relationships to accelerate the development and implementation of the product. Specifically, he will be critical in the establishment of a complete system to get the soap base from its original manufacturing plant to our customers.
John Patent: Dr. Patent is the Director of the Technology Transfer department of the University of Oregon. Dr. Patent is in charge of protecting and patenting concepts and technologies developed as a result of the myriad of research and development projects continually happening within the University.
Wilson Science: Mr. Science has been a Professor of Chemistry at the University of Oregon for over eighteen years. Mr. Science specializes in chemical interactions that break down over time. He has worked on projects dealing with plastics and containers that will quickly bio degrade after discarded, and other products with short half-lives.
Franklin Money: Mr. Money is the Senior Vice President of the Lake Oswego Branch of Bank of America. Mr. Money specializes in business and investment consultation for his clients, helping entrepreneurs develop businesses efficiently and effectively.
It will be necessary to hire new sales associates as we expand into each new market segment. An individual with experience in networking with the government, perhaps having specific contacts with the FDA and CDC, will be a necessary addition to successfully create a complementary relationship with government organizations. A child-care industry professional with relevant experience and networks in the industry will be acquired to accelerate sales growth. After sufficient cash flow has been established and revenues have plateaued, we will hire a chemist on salary to expand our existing product line. A chemical expert working as a consultant will initially be useful for three reasons:
In order to free up enough capital to continue operations and possible expansion, our executive team will not receive more than a living wage salary until the product is well into the black. We understand that as a new product we will need technical support and legal advice; this will be currently outsourced to various consultants.
All sales for the first year of operation will be closed by the executive management team. Starting from the second year, we will employ a Sales Associate who will handle sales transactions. His/her compensation will be a combination of fixed salary and commission on sales. For the purposes of financial planning, we combined the Sales Associate’s compensation into an aggregate forecast.
To be flexible in meeting the customer demand, we plan to stock a minimum amount of product in a rented warehouse. At the beginning, all incoming product stock will be accepted and later dispatched to customers by the company’s executive team. Starting in the second year, we plan to hire a full-time Inventory Manager to handle these tasks.
As stated earlier, development of new products will not start until the second half of 2008. As such, related R & D costs are beyond the planning horizon of this document. However, we plan to earmark $20,000 and $40,000 for the second and third years of operation, respectively, under “R & D” for additional expenses related to the patent protection of our products. Should these expenses be minimized, our bottom line profitability (especially in the second year of operation) will be positively affected.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Devon Nevius | $28,800 | $32,000 | $50,000 |
Kevin Meinert | $28,800 | $32,000 | $50,000 |
Inventory Manager | $0 | $30,000 | $40,000 |
Sales Associate | $0 | $30,000 | $36,000 |
Research and Development | $0 | $20,000 | $40,000 |
Total People | 2 | 5 | 6 |
Total Payroll | $57,600 | $144,000 | $216,000 |
Based on market research, we expect the business to begin growing at 45% per month for the first 12 months, then at a yearly rate of 90% for the next two years. Due to our low initial investment costs, we can maintain the operations of the business with the cash buffer we will have from start up. In addition, we will almost immediately have a positive cash flow, allowing us the flexibility to cover any unforseen expenses.
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 |
Sales – Our sales are projected to grow at a consistent rate of 90% yearly, and we believe this accurately reflects the realistic growth our product would be capable of attaining if we can properly utilize existing channels of distribution and gain social acceptance.
Gross Margin – As we grow, become more efficient, and gain economies of scale we begin to see a slight growth in our margins.
Operating Expenses – In 2007 and 2008 we see an increase in the number of operating expenses that we will incur. We begin incurring larger costs involving advertising, promotion, marketing, and payroll expenses.
Inventory Turnover – We will begin operations with a preliminary purchase of $50,000/ 38,000 gallons of soap. Our preliminary forecast suggests that for us to be flexible in meeting customer demand we will need to maintain a minimal inventory stock at a rented warehouse. We estimate that, on average, we will keep two weeks worth of inventory on hand.
Collection days – We will collect our accounts receivable on an average of 45 days. In 2007 and 2008 we will have the cash to cover unexpected costs or expenses so that we may decide to allow a longer collection period.
The following fixed costs reflect the relative costs for selling and distributing our product within the greater Portland metro area, and do not reflect the fixed costs necessary to expand further.
Break-even Analysis | |
Monthly Revenue Break-even | $11,250 |
Assumptions: | |
Average Percent Variable Cost | 40% |
Estimated Monthly Fixed Cost | $6,750 |
Overall, our business is expected to generate sufficient cashflows. Our cash balance will, among other things, depend on the level of inventory we’ll decided to keep at a rented warehouse. At the moment, our projections in this respect are preliminary and we expect to fine-tune them as the demand for our products grows.
We expect to secure a $50,000 line of credit in year 3 to finance our receivables, listed as “New Current Borrowing” in the table below.
In year 5 of operations, we will begin looking at our ability to begin paying back our initial investors the $250,000. Although the terms of the additionally sought investment are yet to be agreed upon, we belief that our investors will provide us with a buffer of some years before expecting a return on their investment, allowing us the capital and time to expand and grow at an appropriate or desired rate. Nevertheless, for planning purposes, we have made provisions to start paying out a modest dividend from the third year of our operations. Currently, we set dividend payments to be equal to 5% of net profits.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $0 | $0 | $0 |
Cash from Receivables | $138,736 | $362,031 | $687,858 |
Subtotal Cash from Operations | $138,736 | $362,031 | $687,858 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $50,000 |
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 | $0 | $0 |
Subtotal Cash Received | $138,736 | $362,031 | $737,858 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $57,600 | $144,000 | $216,000 |
Bill Payments | $128,381 | $215,710 | $438,395 |
Subtotal Spent on Operations | $185,981 | $359,710 | $654,395 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $185,981 | $359,710 | $654,395 |
Net Cash Flow | ($47,245) | $2,320 | $83,463 |
Cash Balance | $29,455 | $31,775 | $115,239 |
Our profit and loss projections reflect our expectation that monthly fixed costs will remain constant over the course of the first year.
Cost of goods sold increases at a decreasing rate, as economies of scale make soap production cheaper per unit as production volume increases. Based on these projections the company will become profitable in October, 2005.
Advertising expenses will remain steady during our first year of operations. However, Advertising and Promotion will grow in years 2007 and 2008 to reflect the purchase of print ads, PR brochures, and additional promotional content.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $237,168 | $450,620 | $856,177 |
Direct Cost of Sales | $94,867 | $178,351 | $321,031 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $94,867 | $178,351 | $321,031 |
Gross Margin | $142,301 | $272,269 | $535,146 |
Gross Margin % | 60.00% | 60.42% | 62.50% |
Expenses | |||
Payroll | $57,600 | $144,000 | $216,000 |
Payroll Taxes | $0 | $0 | $0 |
Depreciation | $0 | $0 | $0 |
Rent | $8,400 | $8,400 | $8,400 |
Utilities | $1,200 | $1,200 | $1,500 |
Insurance | $6,000 | $6,000 | $6,000 |
Telecommunications | $1,200 | $2,500 | $3,500 |
Travel | $1,800 | $2,500 | $4,000 |
Warehousing | $3,600 | $4,000 | $4,500 |
Other General and Administrative Expenses | $1,200 | $1,200 | $1,200 |
Total Operating Expenses | $81,000 | $169,800 | $245,100 |
Profit Before Interest and Taxes | $61,301 | $102,469 | $290,046 |
EBITDA | $61,301 | $102,469 | $290,046 |
Interest Expense | $0 | $0 | $2,500 |
Taxes Incurred | $18,390 | $30,741 | $86,264 |
Net Profit | $42,911 | $71,728 | $201,282 |
Net Profit/Sales | 18.09% | 15.92% | 23.51% |
Once we have established a relationship with the manufacturer, we will purchase inventory in minimum quantities of approximately 15,000 gallons for approximately $20,000 per shipment (following the initial start-up inventory purchase, at $50,000). As sales increase we expect that inventory turnover rate to increase.
Our only significant Accounts Payable will be Inventory, which are a direct reflection of the level of inventory on hand. We will be paying off our Accounts Payable in accordance with sale of inventory. Therefore, as we begin to sell more soap, we will be increasingly capable of meeting our obligations in a more timely manner, ensuring that we have enough cash on hand to cover our short term liabilities.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $29,455 | $31,775 | $115,239 |
Accounts Receivable | $98,432 | $187,021 | $355,340 |
Inventory | $119,146 | $34,927 | $60,193 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $247,032 | $253,723 | $530,772 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $247,032 | $253,723 | $530,772 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $77,422 | $12,384 | $38,150 |
Current Borrowing | $0 | $0 | $50,000 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $77,422 | $12,384 | $88,150 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $77,422 | $12,384 | $88,150 |
Paid-in Capital | $250,000 | $250,000 | $250,000 |
Retained Earnings | ($123,300) | ($80,389) | ($8,661) |
Earnings | $42,911 | $71,728 | $201,282 |
Total Capital | $169,611 | $241,339 | $442,621 |
Total Liabilities and Capital | $247,032 | $253,723 | $530,772 |
Net Worth | $169,611 | $241,339 | $442,621 |
The following table compares our ratios with standard ones from the soap and detergents industry (SIC Code 2841). Our current and quick ratios are much higher than industry averages. This is due in part to the substantial difference between our assets compared to our liabilities. Considering that we will be able to avoid any large loans and fund the company almost entirely independent of commercial creditors, there will necessarily be a discrepancy between our fairly large assets compared to our considerably smaller liabilities. Our business model and truly unique product allows us to outsource the manufacturing of the product, since our added value comes in the soon to be patented dye/soap formula. So, unlike other commercial-use soap makers in our industry, we do not need to purchase major capital assets, funded by loans.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | n.a. | 90.00% | 90.00% | -2.19% |
Percent of Total Assets | ||||
Accounts Receivable | 39.85% | 73.71% | 66.95% | 29.49% |
Inventory | 48.23% | 13.77% | 11.34% | 23.24% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 21.00% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 73.73% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 26.27% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 31.34% | 4.88% | 16.61% | 34.96% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 8.33% |
Total Liabilities | 31.34% | 4.88% | 16.61% | 43.29% |
Net Worth | 68.66% | 95.12% | 83.39% | 56.71% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 60.00% | 60.42% | 62.50% | 33.85% |
Selling, General & Administrative Expenses | 24.35% | 26.33% | 26.71% | 27.20% |
Advertising Expenses | 7.08% | 5.33% | 4.09% | 0.73% |
Profit Before Interest and Taxes | 25.85% | 22.74% | 33.88% | 0.81% |
Main Ratios | ||||
Current | 3.19 | 20.49 | 6.02 | 1.78 |
Quick | 1.65 | 17.67 | 5.34 | 1.06 |
Total Debt to Total Assets | 31.34% | 4.88% | 16.61% | 46.64% |
Pre-tax Return on Net Worth | 36.14% | 42.46% | 64.96% | 1.89% |
Pre-tax Return on Assets | 24.81% | 40.39% | 54.18% | 3.54% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 18.09% | 15.92% | 23.51% | n.a |
Return on Equity | 25.30% | 29.72% | 45.48% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 2.41 | 2.41 | 2.41 | n.a |
Collection Days | 40 | 116 | 116 | n.a |
Inventory Turnover | 1.78 | 2.32 | 6.75 | n.a |
Accounts Payable Turnover | 2.66 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 109 | 20 | n.a |
Total Asset Turnover | 0.96 | 1.78 | 1.61 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.46 | 0.05 | 0.20 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $169,611 | $241,339 | $442,621 | n.a |
Interest Coverage | 0.00 | 0.00 | 116.02 | n.a |
Additional Ratios | ||||
Assets to Sales | 1.04 | 0.56 | 0.62 | n.a |
Current Debt/Total Assets | 31% | 5% | 17% | n.a |
Acid Test | 0.38 | 2.57 | 1.31 | n.a |
Sales/Net Worth | 1.40 | 1.87 | 1.93 | 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 | |||||||||||||
CHILDassure soap (day care) | 45% | $1,250 | $1,813 | $2,628 | $3,811 | $5,526 | $8,012 | $11,618 | $16,846 | $24,426 | $35,418 | $51,356 | $74,466 |
HEALTHassure/FOODassure | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $1,250 | $1,813 | $2,628 | $3,811 | $5,526 | $8,012 | $11,618 | $16,846 | $24,426 | $35,418 | $51,356 | $74,466 | |
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 | |
CHILDassure soap (day care) | 40% | $500 | $725 | $1,051 | $1,524 | $2,210 | $3,205 | $4,647 | $6,738 | $9,770 | $14,167 | $20,542 | $29,786 |
HEALTHassure/FOODassure | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $500 | $725 | $1,051 | $1,524 | $2,210 | $3,205 | $4,647 | $6,738 | $9,770 | $14,167 | $20,542 | $29,786 |
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 | ||
Devon Nevius | 0% | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 |
Kevin Meinert | 0% | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 |
Inventory Manager | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Sales Associate | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Research and Development | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
Total Payroll | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 |
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 | $1,250 | $1,813 | $2,628 | $3,811 | $5,526 | $8,012 | $11,618 | $16,846 | $24,426 | $35,418 | $51,356 | $74,466 | |
Direct Cost of Sales | $500 | $725 | $1,051 | $1,524 | $2,210 | $3,205 | $4,647 | $6,738 | $9,770 | $14,167 | $20,542 | $29,786 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $500 | $725 | $1,051 | $1,524 | $2,210 | $3,205 | $4,647 | $6,738 | $9,770 | $14,167 | $20,542 | $29,786 | |
Gross Margin | $750 | $1,088 | $1,577 | $2,286 | $3,315 | $4,807 | $6,971 | $10,107 | $14,656 | $21,251 | $30,814 | $44,680 | |
Gross Margin % | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | |
Expenses | |||||||||||||
Payroll | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
Utilities | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Telecommunications | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Travel | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Warehousing | 15% | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 |
Other General and Administrative Expenses | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Total Operating Expenses | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | |
Profit Before Interest and Taxes | ($6,000) | ($5,663) | ($5,173) | ($4,464) | ($3,435) | ($1,943) | $221 | $3,357 | $7,906 | $14,501 | $24,064 | $37,930 | |
EBITDA | ($6,000) | ($5,663) | ($5,173) | ($4,464) | ($3,435) | ($1,943) | $221 | $3,357 | $7,906 | $14,501 | $24,064 | $37,930 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | ($1,800) | ($1,699) | ($1,552) | ($1,339) | ($1,030) | ($583) | $66 | $1,007 | $2,372 | $4,350 | $7,219 | $11,379 | |
Net Profit | ($4,200) | ($3,964) | ($3,621) | ($3,124) | ($2,404) | ($1,360) | $154 | $2,350 | $5,534 | $10,150 | $16,844 | $26,551 | |
Net Profit/Sales | -336.00% | -218.69% | -137.79% | -81.99% | -43.51% | -16.97% | 1.33% | 13.95% | 22.66% | 28.66% | 32.80% | 35.65% |
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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $667 | $1,550 | $2,248 | $3,259 | $4,725 | $6,852 | $9,935 | $14,406 | $20,889 | $30,288 | $43,918 | |
Subtotal Cash from Operations | $0 | $667 | $1,550 | $2,248 | $3,259 | $4,725 | $6,852 | $9,935 | $14,406 | $20,889 | $30,288 | $43,918 | |
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 | $0 | $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 | $0 | $667 | $1,550 | $2,248 | $3,259 | $4,725 | $6,852 | $9,935 | $14,406 | $20,889 | $30,288 | $43,918 | |
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 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | |
Bill Payments | $5 | $153 | $256 | $405 | $621 | $935 | $1,389 | $2,048 | $3,651 | $24,251 | $38,626 | $56,042 | |
Subtotal Spent on Operations | $4,805 | $4,953 | $5,056 | $5,205 | $5,421 | $5,735 | $6,189 | $6,848 | $8,451 | $29,051 | $43,426 | $60,842 | |
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 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
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 | $4,805 | $4,953 | $5,056 | $5,205 | $5,421 | $5,735 | $6,189 | $6,848 | $8,451 | $29,051 | $43,426 | $60,842 | |
Net Cash Flow | ($4,805) | ($4,287) | ($3,506) | ($2,958) | ($2,162) | ($1,009) | $663 | $3,088 | $5,955 | ($8,162) | ($13,138) | ($16,923) | |
Cash Balance | $71,895 | $67,608 | $64,102 | $61,144 | $58,982 | $57,973 | $58,636 | $61,723 | $67,678 | $59,516 | $46,378 | $29,455 |
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 | $76,700 | $71,895 | $67,608 | $64,102 | $61,144 | $58,982 | $57,973 | $58,636 | $61,723 | $67,678 | $59,516 | $46,378 | $29,455 |
Accounts Receivable | $0 | $1,250 | $2,396 | $3,474 | $5,037 | $7,304 | $10,591 | $15,357 | $22,267 | $32,287 | $46,817 | $67,884 | $98,432 |
Inventory | $50,000 | $49,500 | $48,775 | $47,724 | $46,199 | $43,989 | $40,784 | $36,137 | $29,399 | $39,082 | $56,669 | $82,169 | $119,146 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $126,700 | $122,645 | $118,779 | $115,300 | $112,381 | $110,275 | $109,348 | $110,130 | $113,390 | $139,047 | $163,001 | $196,432 | $247,032 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $126,700 | $122,645 | $118,779 | $115,300 | $112,381 | $110,275 | $109,348 | $110,130 | $113,390 | $139,047 | $163,001 | $196,432 | $247,032 |
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 | $145 | $243 | $385 | $591 | $889 | $1,322 | $1,949 | $2,859 | $22,982 | $36,786 | $53,372 | $77,422 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $145 | $243 | $385 | $591 | $889 | $1,322 | $1,949 | $2,859 | $22,982 | $36,786 | $53,372 | $77,422 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $145 | $243 | $385 | $591 | $889 | $1,322 | $1,949 | $2,859 | $22,982 | $36,786 | $53,372 | $77,422 |
Paid-in Capital | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 |
Retained Earnings | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) |
Earnings | $0 | ($4,200) | ($8,164) | ($11,785) | ($14,909) | ($17,314) | ($18,674) | ($18,519) | ($16,169) | ($10,635) | ($485) | $16,360 | $42,911 |
Total Capital | $126,700 | $122,500 | $118,536 | $114,915 | $111,791 | $109,386 | $108,026 | $108,181 | $110,531 | $116,065 | $126,215 | $143,060 | $169,611 |
Total Liabilities and Capital | $126,700 | $122,645 | $118,779 | $115,300 | $112,381 | $110,275 | $109,348 | $110,130 | $113,390 | $139,047 | $163,001 | $196,432 | $247,032 |
Net Worth | $126,700 | $122,500 | $118,536 | $114,915 | $111,791 | $109,386 | $108,026 | $108,181 | $110,531 | $116,065 | $126,215 | $143,060 | $169,611 |
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Business Plan for Liquid Detergent and Dry Soap in Ethiopia February 2024 The Journal of Business 1:54 February 2024 1:54 Authors: Tahir Kasim Abadiga Jimma University References (3)
This document is a business plan for FAAM Soap and Detergent Company. It includes sections on the company description, marketing plan, operational plan, management structure, startup expenses, and 12-month financial projections. The company aims to produce soaps and detergents for customers in Ethiopia.
BUSINESS PLAN FOR LIQUID DETERGENT AND BAR SOAP PURPOSE: FOR FINACIAL LEASE LOAN REQUEST PROJECT NAME: MOKONNIN LIQUID DETERGENT AND BAR SOAP FACTORY PROJECT PROMOTER: ******* PROJECT LOCATION: JIMMA TOWN OROMIA REGIONAL STATE, ETHIOPIA PHONE: 09***** SUBMITTED TO: DEVELOPMENT BANK OF ETHIOPIA JIMMA, ETHIOPIA FEBRUARY 2024 fI.
This document provides a summary of a business plan for a proposed liquid detergent production plant in Ethiopia. It would have an annual production capacity of 30 tons.
This document is a business plan for a proposed liquid detergent and bar soap factory in Jimma, Ethiopia. It outlines the objectives to establish a factory producing these products and describes key aspects of the planned operations including the target market, production process, financial requirements and economic benefits. The business seeks a loan from the Development Bank of Ethiopia to ...
This business plan provides a blueprint for how to start and manage your Soap Manufacturing business. Our detailed research and analysis, including interviews with entrepreneurs and stakeholders, will ensure that you plan your future business for success. A business plan is used for various purposes including to (a) Raise funding from investors ...
In 2018, I led to set up a detergent manufacturing factory in Ethiopia called DAFA SOAP AND DETERGENT MANUFACTURING PLC. I did all the work from A to Z to set up this business, including the business plan and registration, product line planning, trademark (AZZY & SUPPOW) registration, factory site selection, manufacturing facility set up, team recruitment, trial production and mass production ...
making process based on a cost benefit analysis of the actual project viability. This profile includes marketing study, production and financial analysis, which are utilized to assist the decision-makers when determining if the business concept is viable. Ethiopia has a private sector driven Soap and detergent industry.
Are you about starting a liquid soap and detergent production company? If YES, here's a complete sample liquid soap and detergent production business plan template & feasibility report you can use for FREE to get started.
These ingredients are used to make saponification for hand liquid soap as natural. For production of herbal liquid soap, used in addition to herbal extracts and herbal fragrance.
Get Growthink's soap-making business plan template & a step-by-step guide to quickly and easily create your soap making business plan today.
In Ethiopia, due focus has been given to the soap and detergent industry on the growth and transformation plan (GTP), the GTP has a policy goal to increase number of factories establishment up to the capacity to produce 116tons of soap and detergent, and grow on capacity utilization of the soap and detergent sub-sector, with the objective of ...
This document provides a project report for establishing a soap manufacturing unit in Ethiopia. It discusses the market potential for soap in Ethiopia given its long history of soap production. The report outlines the key raw materials, production process, implementation schedule, and financial aspects of the proposed soap manufacturing unit.
Amharic ppt for Liquid Soap Production.pdf (952.7 kB) . Amharic ppt for Liquid Soap Production. Contact CMP. Back to top of page. Partners. Ministry of Foreign Affairs of Finland Ministry of Water, Irrigation and Energy of the Federal Republic of Ethiopia Ramboll Finland Oy Niras IRC. This work by COWASH is licensed under a Creative Commons ...
Soap Making Business Plan - Executive Summary Chibev Soap Production Company is a licensed and standard soap production company that will be located in Ojodu Berger. We are in the soap making line of business to produce liquid soaps in commercial quantities. We are also in business to make profits at the same to give our customers value for ...
Abstract The main objective of this study was to investigate the challenges of supply chain integration in Ethiopia soap and detergent manufacturing companies.
The main objective of this study was to investigate the challenges of supply chain integration in Ethiopia soap and detergent manufacturing companies. To address the research objective, the quantitative survey approach was followed, and target unit of analysis of the study was 25 soap and detergent manufacturing companies.
This document provides a feasibility study and business plan for establishing a detergent powder production plant in Ethiopia with an annual capacity of 1,000 tons. It details the market potential and demand for detergent powder in Ethiopia, which is currently met through imports.
This empirical study was conducted in Ethiopia Soap and detergent manufacturing firms to investigate the challenges of supply chain integration. The challenges with internal and external integration, the researcher adopt twelve critical challenges from literature and asked respondents to rank in accordance with their degree of effect.
1.4.2 Specific Objectives. ific objectives are to:To identify the basic challenges that hinders the growth of Ethiopian soap. To investigate the impact of imported soap and detergents on domestic soap and detergent sector growth.
This document provides a business plan for a soap making company called Sun Shine Industry located in Dire Dawa, Ethiopia. The company will produce laundry and aloe vera soap. Aloe vera soap is in high demand for its skin care benefits. The management team consists of 6 industrial engineering students. The company will utilize a partnership structure. Production will focus on bar soaps using ...
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