Yes! I do! Business plan
Group 3
GROUP MEMBERS
• Anja Grgic M997Z205
• Marko Marinic M997Z206
• Marie Nikki Martinez M997z208
Motto
At Yes! I do! feel like QUEEN without paying
QUEEN prices!
1. EXECUTIVE SUMMARY
•
Yes! I do! is a bridal gown shop like no other. While most retail bridal shops are
selling wedding gowns that many people nowadays feel are unreasonably priced,
our shop will provide a solution and fill that gap.
•
Based in Croatia, Yes! I do! will meet the unmet market demand of wedding gowns
that is for the price sensitive customers. Yes! I do! will provide a number of
different middle and low end bridal gowns, without compromising quality and
style. In addition, contacts to related services will be given to customers.
•
Wedding preparations especially bridal gowns are perceived as very costly.
Traditionally, it is the parents of the bride or groom that are paying for the wedding.
But, times are tougher. Nowadays, it is the couple that needs to save a lot of money
for their own wedding. It is therefore very practical to provide this kind of product
and/or service at a price that both young and old couples can afford.
•
To keep our customers, we will make sure that the quality of our stock is excellent
and we need to provide our customers with exemplary service.
2. BUSINESS DESCRIPTION
AND VISION
2.1 Products and Services
• Yes! I do! will primarily generate its revenues from the sale of
bridal gowns. The Company will specialize in the sale of low
and middle end gowns and other related products. Ms. Anja
Grgic is currently sourcing several inventory suppliers that
will provide the business with its gowns, shoes and
accessories.
2.2 Vision Statement
• At Yes! I do!, our vision is to be the premier
bridal shop in the industry, by providing our
customers with beautiful and quality wedding
gowns and superior service.
2.3 Mission Statement
• Yes! I do!’s mission is to become the first and
the recognized leader in Croatia in its targeted
market for low and middle end bridal gowns
and related products and ensure that all
customers leave the store completely satisfied.
2.4 Objectives
• Whatever the age, style, preference of our customers may be,
we want everything they want for their wedding to be done
perfectly. It is a special day for them so we want every detail
of their event to be both a pleasurable and a memorable
experience. Therefore we offer a wide array of gowns and
dresses for them to choose from and provide them contacts for
other services they specifically need.
2.5 Management Team
• The Company was founded by Ms. Anja
Grgic. Ms. Anja Grgic has worked as an
employee, assistant manager and manager for
several clothes stores in the capital of Croatia,
Zagreb. Through her expertise, she will be able
to bring the operations of the business to
profitability within its first year of operations.
2.6 The Financing
• Ms. Anja Grgic is seeking to raise $31.400
from personal savings and help from family
and close friends.
2.7 Sales Forecasts
• Yes! I do! expects a growth rate at the start of
operations. We expect that the business will
aggressively expand during the first three years
of operation.
3. Definition of the Market
• US trends- wedding industry “reccesionproof” industry
• Croatian market situation- expensive wedding
gowns due to the label of French/Italian design
• Customers are paying high prices only for a
name, not quality
Competitor´s vs. Our wedding
gowns
• In Croatia, people traditionally like big
weddings
• Brides like to wear traditionally large gowns
instead of more informal dresses
• Reccesion brought changes- market
characterized by slow growth (people are price
sensitive)
3.1.Competition
• Sole- proprietor shops- single outlet
• There are some high-end independent shops as
well as some budget ones (but their price is
still high)
3.2. Market Segmentation
• Yes! I do! will be targeting low-to middleincome brides
• Our shop will welcome brides from 18-45
years, as long as they feel that buying a dress
for a high price is not what they want
Potential customers
Market Analysis
2012
Potential Customers
2013
2014
2015
2016
Growth
CAGR
Women 18-45 years old
0%
1.770.000
1.770.000
1.770.000
1.770.000
1.770.000
0,00%
Other
0%
0
0
0
0
0
0,00%
Total
0,00%
1.770.000
1.770.000
1.770.000
1.770.000
1.770.000
0,00%
4. Promotion
1. First three months- woman magazines (Gloria,
Story)
2. Fashion web-sites, sponsored articles
3. Ads in form of banners on wedding web-sites
and forums
4. Dispension of brochures to the couples on
church preparation-for-marriage meetings
5. Word-of-mouth from our previous customers
5. Description of Product and
Service
• Yes! I do! is a bridal shop in which one can
buy wedding dresses
• Assortment contains:
a. different styles of wedding gowns, from more
traditional dresses to more casual evening
dresses/gowns (plus colorfull wedding gowns)
b. wedding accessories and shoes
[1]
This is the retail price. The prices of the purchased dresses are between $1000 to $7,000.
Competitive Advantage
• Two competitive advantages:
1. The lowest price
• We are cutting the „middle man„ by going straight
to the production company doors
• Suppliers from China and Taiwan
• We can fix our prices in range around $400 for the
purchased dress (wholesale price $200)
The
price of
the
weddin
g dress
(main
cities)
Zagreb
$760
Osijek
$700
Rijeka
$600
Split
$600
Competitive advantage
2. Service
• Our shop as a link to other services connected with
wedding- direct benefit for customer, indirect- to our
shop´s reputation (word-of-mouth)
• Exceptional service, no matter the price of the
wedding dress (when entering the store, our customer
will be offered to relax on a couch with a cup of tea
or coffee, some cookies- showing them we CARE…)
6. Personnel Plan
• Anja will work for Yes! I do! full time
• If needed, after will hire one part-time personnel (student preferably)
• Anja´s responsibilities:
1. Supply
2. Accounting
3. Purchase
4. Interior design
5. Streamstress- repairments if needed
•
Working time: Monday to Friday 9:00 to 1:00 and 5:00 to 8:00,
Saturday 9:00 to 1:00
•
Anja´s yearly salary: $12,000
Financial plan
Start-up cost
Start-up
Requirements
Start-up Expenses
Legal
Computer with a point of sale terminal
Legal software
Rent
Display racks, couches, desk, chairs, mirrors, fitting rooms
Website development
Total Start-up Expenses
$2.000
$500
$500
$600
$2.000
$800
$6.400
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$15.000
$10.000
$0
$0
$25.000
Total Requirements
$31.400
Sales forecast
Sales Forecast
FY 2013
FY 2014
FY 2015
408
600
700
0
0
0
408
600
700
Unit Prices
FY 2013
FY 2014
FY 2015
Wedding dresses
$500,00
$500,00
$500,00
$0,00
$0,00
$0,00
$204.000
$300.000
$350.000
$0
$0
$0
$204.000
$300.000
$350.000
Direct Unit Costs
FY 2013
FY 2014
FY 2015
Wedding dresses
$220,00
$200,00
$200,00
$0,00
$0,00
$0,00
$89.760
$120.000
$140.000
$0
$0
$0
$89.760
$120.000
$140.000
Unit Sales
Wedding dresses
Total Unit Sales
0
Sales
Wedding dresses
0
Total Sales
0
Direct Cost of Sales
Wedding dresses
0
Subtotal Direct Cost of Sales
Sales
Forecast
tra
svi
lip
srp
kol
ruj
lis
stu
pro
sij
vlj
ožu
Wedding
dresses
12
16
20
24
28
32
36
40
44
48
52
56
0
0
0
0
0
0
0
0
0
0
0
0
Total Unit
Sales
12
16
20
24
28
32
36
40
44
48
52
56
Unit Prices
tra
svi
lip
srp
kol
ruj
lis
stu
pro
sij
vlj
ožu
$500,00
$500,00
$500,00
$500,00
$500,00
$500,00
$500,00
$500,00
$500,00
$500,00
$500,00
$500,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$6.000
$8.000
$10.000
$12.000
$14.000
$16.000
$18.000
$20.000
$22.000
$24.000
$26.000
$28.000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Sales
$6.000
$8.000
$10.000
$12.000
$14.000
$16.000
$18.000
$20.000
$22.000
$24.000
$26.000
$28.000
Direct Unit
Costs
Wedding
dresses
tra
svi
lip
srp
kol
ruj
lis
stu
pro
sij
vlj
ožu
0,00%
$220,00
$220,00
$220,00
$220,00
$220,00
$220,00
$220,00
$220,00
$220,00
$220,00
$220,00
$220,00
0,00%
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$0,00
$2.640
$3.520
$4.400
$5.280
$6.160
$7.040
$7.920
$8.800
$9.680
$10.560
$11.440
$12.320
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2.640
$3.520
$4.400
$5.280
$6.160
$7.040
$7.920
$8.800
$9.680
$10.560
$11.440
$12.320
Unit Sales
Wedding
dresses
0
Sales
Wedding
dresses
0
0
Direct Cost
of Sales
Wedding
dresses
0
Subtotal
Direct Cost
of Sales
Start-up funding
Start-up Funding
Start-up Expenses to Fund
$6.400
Start-up Assets to Fund
$25.000
Total Funding Required
$31.400
Assets
Non-cash Assets from Start-up
$10.000
Cash Requirements from Start-up
$15.000
Additional Cash Raised
$0
Cash Balance on Starting Date
$15.000
Total Assets
$25.000
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
Owner
Investor
Additional Investment Requirement
$31.400
$0
$0
Total Planned Investment
$31.400
Loss at Start-up (Start-up Expenses)
($6.400)
Total Capital
$25.000
Total Capital and Liabilities
$25.000
Total Funding
$31.400
Break-even analysis
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
9
$4.695
Assumptions:
Average Per-Unit Revenue
$500,00
Average Per-Unit Variable Cost
$220,00
Estimated Monthly Fixed Cost
$2.629
Profit
Pro Forma Profit and Loss
FY 2013
FY 2014
FY 2015
$204.000
$300.000
$350.000
$89.760
$120.000
$140.000
$0
$0
$0
$89.760
$120.000
$140.000
$114.240
$180.000
$210.000
56,00%
60,00%
60,00%
$17.000
$18.000
$24.000
$3.600
$2.000
$2.000
$0
$0
$0
Rent
$7.200
$7.200
$7.200
Utilities
$1.200
$1.200
$1.200
$0
$0
$0
$2.550
$2.700
$3.600
$0
$0
$0
Total Operating Expenses
$31.550
$31.100
$38.000
Profit Before Interest and Taxes
$82.690
$148.900
$172.000
EBITDA
$82.690
$148.900
$172.000
$0
$0
$0
$24.807
$44.670
$51.600
Net Profit
$57.883
$104.230
$120.400
Net Profit/Sales
28,37%
34,74%
34,40%
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Marketing/Promotion
Depreciation
Insurance
Payroll Taxes
Other
Interest Expense
Taxes Incurred
Pro Forma Profit and
Loss
tra
svi
lip
srp
kol
ruj
lis
stu
pro
sij
vlj
ožu
Sales
$6.000
$8.000
$10.000
$12.000
$14.000
$16.000
$18.000
$20.000
$22.000
$24.000
$26.000
$28.000
Direct Cost of Sales
$2.640
$3.520
$4.400
$5.280
$6.160
$7.040
$7.920
$8.800
$9.680
$10.560
$11.440
$12.320
Other Costs of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cost of Sales
$2.640
$3.520
$4.400
$5.280
$6.160
$7.040
$7.920
$8.800
$9.680
$10.560
$11.440
$12.320
Gross Margin
$3.360
$4.480
$5.600
$6.720
$7.840
$8.960
$10.080
$11.200
$12.320
$13.440
$14.560
$15.680
Gross Margin %
56,00%
56,00%
56,00%
56,00%
56,00%
56,00%
56,00%
56,00%
56,00%
56,00%
56,00%
56,00%
$1.000
$1.000
$1.500
$1.500
$1.500
$1.500
$1.500
$1.500
$1.500
$1.500
$1.500
$1.500
$600
$600
$600
$200
$200
$200
$200
$200
$200
$200
$200
$200
Expenses
Payroll
Marketing/Promotion
Depreciation
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Rent
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
$600
Utilities
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$150
$0
$150
$0
$225
$0
$225
$0
$225
$0
$225
$0
$225
$0
$225
$0
$225
$0
$225
$0
$225
$0
$225
$0
$2.450
$2.450
$3.025
$2.625
$2.625
$2.625
$2.625
$2.625
$2.625
$2.625
$2.625
$2.625
$910
$2.030
$2.575
$4.095
$5.215
$6.335
$7.455
$8.575
$9.695
$10.815
$11.935
$13.055
$910
$2.030
$2.575
$4.095
$5.215
$6.335
$7.455
$8.575
$9.695
$10.815
$11.935
$13.055
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$273
$609
$773
$1.229
$1.565
$1.901
$2.237
$2.573
$2.909
$3.245
$3.581
$3.917
$637
$1.421
$1.803
$2.867
$3.651
$4.435
$5.219
$6.003
$6.787
$7.571
$8.355
$9.139
10,62%
17,76%
18,02%
23,89%
26,08%
27,72%
28,99%
30,01%
30,85%
31,54%
32,13%
32,64%
Insurance
Payroll Taxes
Other
Total Operating
Expenses
Profit Before Interest
and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
15%
Cash
Pro Forma Cash Flow
FY 2013
FY 2014
FY 2015
$204.000
$204.000
$300.000
$300.000
$350.000
$350.000
$20.400
$0
$0
$0
$0
$0
$0
$224.400
$30.000
$0
$0
$0
$0
$0
$0
$330.000
$35.000
$0
$0
$0
$0
$0
$0
$385.000
FY 2013
FY 2014
FY 2015
$148.437
$0
$148.437
$203.480
$0
$203.480
$229.963
$0
$229.963
$20.400
$0
$0
$0
$0
$0
$0
$168.837
$30.000
$0
$0
$0
$0
$0
$0
$233.480
$35.000
$0
$0
$0
$0
$0
$0
$264.963
$55.563
$70.563
$96.520
$167.083
$120.037
$287.121
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
Pro Forma Cash Flow
tra
svi
lip
srp
kol
ruj
lis
stu
pro
sij
vlj
ožu
Cash Sales
$6.000
$8.000
$10.000
$12.000
$14.000
$16.000
$18.000
$20.000
$22.000
$24.000
$26.000
$28.000
Subtotal Cash from Operations
$6.000
$8.000
$10.000
$12.000
$14.000
$16.000
$18.000
$20.000
$22.000
$24.000
$26.000
$28.000
Cash Received
Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$600
$800
$1.000
$1.200
$1.400
$1.600
$1.800
$2.000
$2.200
$2.400
$2.600
$2.800
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
$6.600
$8.800
$11.000
$13.200
$15.400
$17.600
$19.800
$22.000
$24.200
$26.400
$28.600
$30.800
tra
svi
lip
srp
kol
ruj
lis
stu
pro
sij
vlj
ožu
$2.723
$3.059
$13.798
$13.854
$4.190
$14.526
$14.862
$15.198
$15.534
$15.870
$16.206
$18.622
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2.723
$3.059
$13.798
$13.854
$4.190
$14.526
$14.862
$15.198
$15.534
$15.870
$16.206
$18.622
Subtotal Cash Received
Expenditures
10,00%
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$600
$800
$1.000
$1.200
$1.400
$1.600
$1.800
$2.000
$2.200
$2.400
$2.600
$2.800
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
$3.323
$3.859
$14.798
$15.054
$5.590
$16.126
$16.662
$17.198
$17.734
$18.270
$18.806
$21.422
Subtotal Cash Spent
Net Cash Flow
$3.277
$4.941
($3.798)
($1.854)
$9.811
$1.475
$3.139
$4.803
$6.467
$8.131
$9.795
$9.379
Cash Balance
$18.277
$23.218
$19.421
$17.567
$27.378
$28.852
$31.991
$36.793
$43.260
$51.390
$61.185
$70.563
Balance sheet
Pro Forma Balance Sheet
FY 2013
FY 2014
FY 2015
Cash
$70.563
$167.083
$287.121
Inventory
$12.320
$20.030
$20.392
$0
$0
$0
$82.883
$187.113
$307.513
Long-term Assets
$0
$0
$0
Accumulated Depreciation
$0
$0
$0
Total Long-term Assets
$0
$0
$0
Total Assets
$82.883
$187.113
$307.513
Liabilities and Capital
FY 2013
FY 2014
FY 2015
Accounts Payable
$0
$0
$0
Current Borrowing
$0
$0
$0
Other Current Liabilities
$0
$0
$0
Subtotal Current Liabilities
$0
$0
$0
Long-term Liabilities
$0
$0
$0
Total Liabilities
$0
$0
$0
Paid-in Capital
$31.400
$31.400
$31.400
Retained Earnings
($6.400)
$51.483
$155.713
Earnings
$57.883
$104.230
$120.400
Total Capital
$82.883
$187.113
$307.513
Total Liabilities and Capital
$82.883
$187.113
$307.513
Net Worth
$82.883
$187.113
$307.513
Assets
Current Assets
Other Current Assets
Total Current Assets
Long-term Assets
Current Liabilities
Pro Forma Balance Sheet
Assets
tra
svi
lip
srp
kol
ruj
lis
stu
pro
sij
vlj
ožu
Starting Balances
Current Assets
Cash
$15.000
$18.277
$23.218
$19.421
$17.567
$27.378
$28.852
$31.991
$36.793
$43.260
$51.390
$61.185
$70.563
Inventory
$12.320
$10.000
$7.360
$3.840
$9.440
$14.160
$8.000
$10.960
$13.040
$14.240
$14.560
$14.000
$12.560
Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Current Assets
$25.000
$25.637
$27.058
$28.861
$31.727
$35.378
$39.812
$45.031
$51.033
$57.820
$65.390
$73.745
$82.883
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
$25.000
$25.637
$27.058
$28.861
$31.727
$35.378
$39.812
$45.031
$51.033
$57.820
$65.390
$73.745
$82.883
tra
svi
lip
srp
kol
ruj
lis
stu
pro
sij
vlj
ožu
Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
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
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Paid-in Capital
$31.400
$31.400
$31.400
$31.400
$31.400
$31.400
$31.400
$31.400
$31.400
$31.400
$31.400
$31.400
$31.400
Retained Earnings
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
($6.400)
$0
$637
$2.058
$3.861
$6.727
$10.378
$14.812
$20.031
$26.033
$32.820
$40.390
$48.745
$57.883
Total Capital
$25.000
$25.637
$27.058
$28.861
$31.727
$35.378
$39.812
$45.031
$51.033
$57.820
$65.390
$73.745
$82.883
Total Liabilities and Capital
$25.000
$25.637
$27.058
$28.861
$31.727
$35.378
$39.812
$45.031
$51.033
$57.820
$65.390
$73.745
$82.883
Net Worth
$25.000
$25.637
$27.058
$28.861
$31.727
$35.378
$39.812
$45.031
$51.033
$57.820
$65.390
$73.745
$82.883
Earnings