April 2005
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Table of Contents
1.0
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.0
Company Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
2.1
Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2
Start-up Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.0
Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
4.0
Market Analysis Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.1
Market Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2
Target Market Segment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3
Service Business Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3.1 Competition and Buying Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
9
10
10
11
5.0
Strategy and Implementation Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.1
Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2
Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3
Sales Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.4
Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
12
12
13
14
16
6.0
Web Plan Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.1
Website Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2
Development Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
18
19
7.0
Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
7.1
Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
8.0
Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.1
Important Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.2
Start-up Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.3
Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.4
Projected Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.5
Projected Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.6
Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.7
Business Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
3
4
4
21
21
22
23
23
24
26
26
28
Harquebus Paintball, Inc.
1.0 Executive Summary
"Paintball games" is the next big thing in the sporting industry. As the #1 sport for growth,
paintball is up more than 84% to 9.4 million U.S. players within the past five years according
to the National Sporting Goods Association. Harquebus Paintball, Inc. (HPI) will start out as a
small retail paintball company based in Bombarde County, Ourstate. HPI's location is the
prime location as it contains only two other poor retail paintball shops creating very little
competition.
HPI will specialize in the sale of a wide variety of quality paintball equipment such as guns,
parts/accessories, magazines, apparel, and more, as well as hosting local tournaments and
providing quality services such as repairs and upgrades of products, bringing first year's sales
to a total of $1,920,385 achieving profitability from month one. All employees will be
experienced in the broad spectrum of paintball to fulfill the customers needs. HPI will have an
extreme advantage over the little competition that does exist, as it will have an online store,
very competitive pricing, carry a much greater selection, host sales and promotions, gift
cards, and membership benefits.
Harquebus Paintball's current opportunity to enter the unique paintball market is perfect, as
the market is rather new, expanding rapidly, is one of a kind, and is not yet capitalized with
dominant nationwide competition from other chain stores that would otherwise make it nearly
impossible to enter the retail paintball market.
Future Plans and Expectations: HPI’s main future goal will be to expand greatly through
physical storefronts, unique high-quality paintball fields, as well as e-commerce transactions,
and to dominate the retail paintball market, first throughout Ourstate, and from there...the
entire nation via franchising. Harquebus Paintball will become the "Best Buy" of the retail
paintball industry.
Keys to Success: HPI realizes that in order to be successful, certain factors, or "keys to
success," must be followed through, and followed through well, such as hosting sales and
promotions, having a good product selection to choose from, servicing products sold, a well
defined knowledge of the industry, store location, reputation, and advertising.
Ownership and Management: HPI is a corporation owned by its CEO Padraich Petard, COO
Geoffrey Gunnar, and CFO Petra Pistolero, who will be responsible for the day-to-day
operations of HPI such as inventory upkeep, accounting, financials, sales and promos, etc.
Other lead management includes Dolores Derringer, who will handle HPI's advertising, and
Claude Carabinerie, who will lead HPI's service department.
Requirements: HPI will require $220,000 for the purchase of start-up assets and expenses
such as corporate identity/forms, remodeling, rent, office/store equipment, inventory, cash
reserve, advertising, and misc. expenses/assets.
Products: HPI will sell a wide variety of quality paintball products such as guns/markers,
paintballs, upgrades/accessories, apparel, magazines, paintballs, and hoppers via its physical
and online store. Services will include repairs/upgrades of equipment, which will be provided
in the physical store only.
Market: HPI's market audience will be males, ages 12-24 that actively (actively = plays at
least once a month) play paintball in Bombarde County, Ourstate. Through market research,
HPI found that approximately 3.9% of Bombarde County males ages 12-24 actively play
paintball, which comes to approx. 2,144 players. According to the NSGA (National Sporting
Goods Association), paintball has grown an average of 16.8% per year over the last five
years, thus HPI feels that paintball is not a fad, and will continue to take a strong, steady
growth throughout the nation. HPI's marketing strategy is to hit hard and fast, dominating its
Page 1
Harquebus Paintball, Inc.
local market from the start, and blowing away the competition through local advertising,
grand opening giveaways, sales, and contests.
Industry: HPI is in the industry of retail paintball, which includes physical paintball dealers,
online paintball dealers, or both (HPI). Dealers have certain pros and cons about being a
physical or online dealer, such cons for a physical dealer being a low concentration of
products and poor pricing competition. HPI will take the cons of physical/online paintball
dealers and turn them into pros, in which Harquebus Paintball will become a dominant
paintball retailer. In the industry of retail paintball, there are a number of factors influencing
purchases such as product features, product reputation, word of mouth, availability, pricing,
up-sales, cross-sales, and impulse buys. HPI will utilize all of these factors to create a larger
sales and profit margin.
Advantages: HPI will have many advantages over the competition such as hosting sales and
promotions, gift cards, membership discount cards, product servicing, online store, larger
product selection, an attractive clean store, team sponsorship, and tournament hostings.
Having these advantages will give Harquebus Paintball a much stronger chance of gaining
customers.
Sales Strategy: HPI will gain/maintain customers through its sales strategy, which will
include sales, promos, gift cards, membership cards, and product selection, all of which the
local competition does not do. HPI projects first year's sales at $1,920,385, and a net profit
of $329,526.
Web Plans: HPI will have an online home at HarquebusPaintball.com, where potential
customers can view and purchase in-store products all from home. Customers will also have
the option to buy online and pick up their merchandise from the store, which will eliminate
their shipping charges and waiting period on their products. HarquebusPaintball.com will host
community paintball news, and have an employee login so that employees may check online
for certain duties they may have, and their work schedule. Advertisement for
HarquebusPaintball.com will be through in-store banners, TV and radio, web banners, and
search engines.
Break even: HPI estimates that $28,000 must be sold monthly to break even with all its
expenses and liabilities. HPI does not expect any trouble with meeting this obligation as long
as the "keys to success," and certain goals and objectives listed throughout this plan are
achieved. Current expenses and liabilities are rent, utilities, insurance, payroll taxes,
advertising, and depreciation.
The purpose of this plan is to provide in-depth detail on how HPI will achieve everything
stated above, from its marketing plans to its projected revenues all the way to its web plans.
Page 2
Harquebus Paintball, Inc.
Highlights
$2,500,000
$2,000,000
$1,500,000
Sales
Gross Margin
$1,000,000
Net Profit
$500,000
$0
FY 2006
FY 2007
FY 2008
1.1 Objectives
Harquebus Paintball has two sets of objectives, "short-term" which will be the main focus for
the first three years of operation, and "long-term" which will mainly be ideas for the next four
years, or until the short-term objectives have been met. Once the short-term objectives have
been met, the long-term "ideas" will become HPI's new primary objectives.
Short-term:
1.
2.
3.
4.
5.
Become the premier paintball retailer in Bombarde County, selling and servicing at
least 50% of paintballers in the area.
Host the best promotions, sales, selection, tournaments, servicing (repairs/upgrades)
of any paintball store in Bombarde County.
Sell at least $350,000 in product/service the first year. (Please note that this figure
represents HPI's approximate break-even revenue.)
Increase sales 10% each fiscal year.
Open a unique, quality, paintball field as well as another HPI retail store in southern
Bombarde County where there are currently no fields or stores.
Long-term:
1.
2.
Open three more Harquebus Paintball retail stores and fields, one in northern
Bombarde County, one in Howitzer County, and one in Cannonade County.
Franchise Harquebus Paintball retail stores through all of Ourstate, and from there,
the entire U.S.
Page 3
Harquebus Paintball, Inc.
1.2 Mission
Harquebus Paintball will strive to provide its customers with 100% satisfaction through
promotions and sales, a wide range of quality products, great services, and in the future,
beautiful tournament-like fields, with its friendly staff that is highly knowledgeable in the field
of paintball.
HPI will be aggressive towards its customers' needs and demands. Our research department
will constantly be providing the store with updated inventory, current trends, improving on
areas our competition has already advanced on, and providing what the competition does
not.
1.3 Keys to Success
Harquebus Paintball's success will be determined by the following seven factors:
1.
2.
3.
4.
5.
6.
7.
Sales and Promotions: HPI will host weekly and monthly sale and promotion
opportunities to bring in customers and beat out the competition. There will also be a
"grand opening" sale to attract first-time, and potentially loyal customers.
Selection: HPI will carry a wide array of products from major-name expensive brands
to generic-name inexpensive brands. HPI will have an 80% larger selection than its
current competition.
Service: HPI will offer all types of popular service in a timely fashion such as: gun
repairing; gun upgrading; and advice.
Knowledge: HPI's staff will have a well-rounded knowledge in all aspects of paintball.
Servicemen and gun-tech's will be highly experienced in their field of repairing and
upgrading any type of product. All staff members must be ready and able to answer
any type of retail paintball question, as well as giving wise advice.
Location: HPI's location will be in a "high-traffic" area within a three mile radius of
OPC (Ourstate Paintball Center) and Musketeer Paintball fields, the two most popular
paintball fields out of three that are in Bombarde County.
Reputation: HPI must obtain credibility, integrity, and a good name for itself by
completing and using all of the five factors above.
Advertising: HPI will advertise via radio and TV each quarter to keep the HPI name
alive and to bring in new customers.
2.0 Company Summary
Harquebus Paintball is a brand new retail paintball store that will be located in Enfilade Plaza.
HPI will sell a wide array of new paintball equipment to paintballers in Bombarde County,
from expensive brand-name products to inexpensive generic-label items, as well as providing
services such as gun repairs, upgrades, and advice.
Page 4
Harquebus Paintball, Inc.
2.1 Company Ownership
Harquebus Paintball is filed as an S-Corporation in the state of Delaware, with its
headquarters located in Bombarde County, Ourstate. Company Ownership of HPI is listed
below:
• President/CEO: Padraich Petard
• Padraich has always had a deep passion for the resale of products, and is
constantly looking for better ways to attract customers and increase potential
purchases. He is an avid business man/entrepreneur who is willing to risk
everything in hopes of building a grand business, and has the skills, brains,
and willpower to guide a company to success. Paraich has two years
experience in the retail industry working for one of Ourstate's largest and most
successful supermarkets, as well as experience in starting/running his own
retail operation. He also has three years experience in paintball product
knowledge.
• Vice President/COO: Geoffrey Gunnar
• Geoffrey has over three years experience in the paintball industry as an
extreme paintball player. He is an excellent researcher, constantly looking for
new products and upgrades to enhance his playing experience, and is always
"two steps ahead of the game." His knowledge in which products and services
sell well is very extensive, knowing which products will be "the next best thing"
in paintball, as he is constantly up-to-date with competition stores, online
paintball forums, and large online retailing stores.
• Vice President/CFO: Petra Pistolera
• Petra is a whiz at financing. He has mastered all of his advanced math courses,
achieving a high understanding and comprehension in the world of numbers.
His management with money is superb, demonstrated by his ability to decipher
between wants and needs, as well as being able to save. Petra's dream is to
start his own company to make him successful in life, and is willing to do
whatever it takes to get him there. He has also experienced the game of
paintball, as he used to play, and has a very well defined knowledge of the
sport.
• Vice President/Marketing Director: Dolores Derringer
• Dolores has over 17 years experience in the marketing industry. She already
has her own advertising agency, DD Media, Inc., which was founded in 2001. A
few existing accounts are SPark Energy, Centreville Electric Company, and
Nowcare Hospitals. Her previous experience is with Smoke and Mirrors Agency,
Ourstate Lottery, Hoover Vacuum Cleaners and Bigbucks Bank. Her specialty
is strategic media planning and buying for multi-million dollar accounts. She
also has an associate degree in retail merchandising.
• Assistant Store Manager/Service Manager: Claude Caribinerie
• Claude has over 11 years experience in the paintball industry. He is able to
repair anything in paintball that will allow, and knows everything there is to
know about paintball. Claude also has over three years experience working in a
local paintball shop.
All employees are wonderful outgoing "people people" that are very hard working, creative,
and work extremely well with others, constantly providing new ideas and concepts with a
positive attitude to make the best out of whatever situation they get into.
Page 5
Harquebus Paintball, Inc.
2.2 Start-up Summary
Harquebus Paintball's total start-up requirements are estimated to be around $221,00. Startup assumptions are shown in the following list, table, and chart.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Incorporation Fees (Expense)
Corporate Identity/Forms (Expense)
Remodeling (Expense)
Rent (Expense)
Office/Store Equipment (Asset)
Inventory (Asset)
Cash Reserve (Asset)
Advertising (Expense)
Website (Expense)
Misc. (Expense)
Table: Start-up
Start-up
Requirements
Start-up Expenses
Incorporation
Stationery etc.
Rent (First three months)
Remodeling
Advertising
Website
Other
Total Start-up Expenses
$384
$300
$8,152
$45,000
$40,000
$600
$900
$95,336
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$27,564
$80,000
$12,100
$5,000
$124,664
Total Requirements
$220,000
Page 6
Harquebus Paintball, Inc.
Start-up
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Expenses
Assets
Investment
Loans
3.0 Products and Services
Harquebus Paintball will provide the products it sells through its physical and online retail
stores, and services will be provided through the physical retail store only.
In-Store Products:
The items for sale will be strategically placed throughout the store as "departments" in
unique, high-tech looking glass cases or behind the counters as "display items." If/when a
customer likes the display item and decides to purchase it, he/she will take an "item ticket"
(a UPC tag created for that item to be rung-up) to the checkout center to complete the
purchase of the product(s), and a staff member will get the item(s) from the back (inventory)
room and bring it to the valued customer. HPI believes that this will reduce shrink/theft,
especially since a main portion of the audience will be children.
Online Products:
Items for sale in HPI's online store will also be classified under "departments." If/when a
customer chooses to purchase an item he/she likes, they will add the product to their online
shopping cart and "checkout." The staff members working in the physical store location will
check online orders every night, and fulfill those orders to be shipped out the next day.
In-Store Services:
• Gun Repairs: If a customer should need a repair on his/her gun, a gun-tech staff
member will evaluate the situation (if the gun needs to be tweaked, or a new part
needs to be provided). If the gun can be fixed without a new component, it will be
repaired accordingly and a nominal fee will be assessed. However, if the gun does
need a new component, a parts and labor fee will be charged.
• Gun Upgrades: If a customer should buy a part for their gun and require assistance in
integrating that component, then a nominal fee shall be imposed on that service.
Page 7
Harquebus Paintball, Inc.
• Advice: All advice will be given free of charge.
4.0 Market Analysis Summary
Paintball is a rapidly growing market. It is a fairly new sport, started in the early 1980s, and
took major growth throughout the 1990s. The National Sporting Goods Association ( NSGA
[http://www.nsga.org] ) reported that "paintball games" were the #1 sport for growth in
2002, up 24% to 6.9 million players (player = played more than once), up 6.8% in 2003 to
7.4 million players, and up 28% in 2004 as the #2 sport for growth to 9.4 million players .
Harquebus Paintball's main market focus includes Bombarde County males, ages 12-24.
Bombarde County demographics below:
• Age:
• 5-24: 191,276
• males (45% estimate): 86,074
• 12-24: 120,804
• males (45% estimate): 54,360
• total males that participate in paintball in Bombarde County (3.9%
estimate) : 2,144
Due to the age bracket (5-24) from the Bombarde County demographics, and Paintball's (in
general) age demographics (12-24), HPI has broken down the figure 86,074, which
represents all males ages 5-24 that live in Bombarde County, and figured that there are
approx. 4,530 males in each age bracket (ie: age 5, age 6, age 7, etc.). From there, HPI took
4,530 and multiplied it by the number of years in the general Paintball demos (12 years)
which computes to 54,360 Bombarde County males between the ages of 12 and 24.
A simple paintball market study was conducted at various Bombarde County middle and high
schools, and an approximate average for the number of males who play paintball and own a
gun are 67 males per school. The estimation "67 males per school" was conceived by taking
the average population of each school (2,000 students), and dividing it by the average
classroom population (30 students), and during the study it was found that an average of one
male per classroom owns a paintball gun and plays paintball persistently (at least once a
month). There are approximately 32 middle/high schools in Bombarde County, which means
there are about 2,144 paintball players in the Bombarde County area.
By taking the 9.4 million paintball players, dividing it by 50 (which represents the 50 States)
and dividing that number by 66 (which represent the 66 counties in Ourstate), then you have
an average of 2,848 paintballers per Ourstate county.
Major companies such as Nike, Adidas, and Vans are starting to enter the paintball market.
Fox Sports and the Outdoor Network are also starting to bring paintball into their business as
they host various paintball tournaments for viewing pleasure. There are currently only two
paintball businesses in Bombarde County trying to win/gain/maintain customers of the same
audience.
Consider these numbers reported by the NSGA and you will find, despite paintball's popularity
and age, that it is not far behind:
1.
2.
3.
Soccer: 13.3 million players.
Baseball: 15.9 million players.
Tackle Football: 8.2 million players.
Page 8
Harquebus Paintball, Inc.
4.1 Market Segmentation
Harquebus Paintball's target market will be Bombarde County males from the ages of 12-24.
Based on the Bombarde County demographics (estimated 45% male) and HPI's derived
demographics as stated above (3.9% male paintballers), HPI's products and services will be
offered to an estimate of 2,144 Bombarde County paintballers.
The following table and chart depict the potential customers (HPI considers "potential"
customers, people that enjoy/play the sport of paintball) with a conservative annual growth
rate of 3%. The growth rate of paintball in general was 6% in 2000, 4% in 2001, 24% in
2002, 6.8% in 2003, and 28% in 2004.
Table: Market Analysis
Market Analysis
Potential Customers
Paintball Players aged
12-18
Paintball Players over
age 18
Total
2005
2006
2007
2008
2009
3%
2,144
2,208
2,274
2,342
2,412
2.99%
3%
986
1,016
1,046
1,077
1,109
2.98%
2.99%
3,130
3,224
3,320
3,419
3,521
2.99%
Growth
CAGR
Market Analysis (Pie)
Paintball Players aged 12-18
Paintball Players over age 18
Page 9
Harquebus Paintball, Inc.
4.2 Target Market Segment Strategy
Harquebus Paintball chose the target audience of Bombarde County male paintballers, ages
12-24 because our products and services will be offered mainly to Bombarde County, and the
paintball demographics are males between the ages of 12 and 24. HPI will create a public
awareness message via radio, TV, and live remotes for approximately three weeks prior to
grand opening to let HPI's audience know about the opening of HPI.
4.3 Service Business Analysis
Harquebus Paintball is in the industry of retail paintball products. There are two kinds of
paintball retail businesses: Physical Paintball Dealers and Online Paintball Dealers:
1.
2.
Physical Paintball Dealers: These are the storefront paintball retailers.
• Pros:
1. Offers repair and upgrade services.
2. No wait for shipping.
3. No shipping and handling charges.
4. Can view products in person.
5. Queries can be answered immediately.
• Cons:
1. Usually offers a low concentration of brand-name product at MSRP
value.
2. Extremely limited advertising.
3. Very little sales or promotions, if any.
Online Paintball Dealers: These are the Internet based paintball retailers.
• Pros:
1. Usually offering a higher concentration (more color variety, different
sizes) of brand-name and generic-label product at slightly lower than
MSRP value.
2. Basic sales (ie: $10 off) and promotions (ie: bonus packs).
• Cons:
1. Shipping time.
2. Shipping and handling charges.
3. Little advertising.
4. Do not offer repair or upgrade services.
5. Cannot view products in person.
6. Queries may take up to a week to be answered.
The size and concentration of paintball retail centers in Bombarde County is extremely
limited. There are currently only two small paintball retail centers in Bombarde County
providing an extremely narrow range of products and brands. Harquebus Paintball's goal is to
turn the "cons" of the "Physical Paintball Dealers" into "pros."
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Harquebus Paintball, Inc.
4.3.1 Competition and Buying Patterns
In the industry of retail paintball, there are a number of factors influencing purchases:
1.
2.
3.
4.
5.
6.
7.
8.
Product Features: Some items may be "better" than others due to the fact that it
may contain a feature (ie: on/off switch) that will make that item easier to use, more
functional, versatile, etc.
Reputation: Some items may carry a reputation of being excellent (ie: strong,
durable, long-lasting, easy to fix, etc.) products, and others may carry a reputation of
being "poor" (ie: breaks often, cheap, malleable, etc.)
Word of Mouth: Often times purchases are made simply on the basis of a word-ofmouth recommendations.
Availability: Kids want their products immediatly, rather than waiting maybe a week
or two for a reorder of an out-of-stock item, another product of its fashion may be
purchased instead.
Pricing: Depending on income, especially for kids, a cheaper price may be the
determining factor between two items if that's all that person can afford at the time.
Up-sales: If someone decides to purchase a product at X amount of dollars, and a
staff member points out that the "better" model has more features for only a few
dollars more, that person may decide to go with the more expensive unit.
Cross-sales: If someone decides to purchase a product that has room for upgrades,
a staff member may recommend purchasing a few upgrades to enhance the power of
their item.
Impulse Buys: People, especially kids, often tend to purchase items that they think
they need, maybe because of certain features, looks, or to even look "cool" in front of
all the other paintballers, rather than researching the item and realizing whether they
truly need it or not.
In Bombarde County, there is very little retail paintball competition. There are currently only
two stores running a retail paintball operation, OPC (Ourstate Paintball Center) and
Musketeer Paintball (ratings: 0-5; 5 = best):
• OPC: OPC has a shop approximately 1,000s/f - 1,500s/f. It includes product selection,
and a service area.
• Store Condition: 2 (non decorative; a sense of dirtiness; worn down
equipment; etc.).
• Product Selection: 3 (mainly a light selection of a couple major brand
companies).
• Marketing: 0 (no known advertising; no sales; no promotions).
• Sales Staff/Experience: 3/5 (not exactly aggressive in sales, yet can give
helpful advice / very knowledgeable in the field of paintball)
• Musketeer: Musketeer has a shop around 800s/f - 1,000s/f. It includes product
selection and a service area.
• Store Condition: 3
• Product Selection: 2
• Marketing: 1 (rotating billboard advertisement)
• Sales Staff/Experience: 3/4
Staff at OPC will be trained in customer assistance, and willingly transferred to Harquebus
Paintball upon opening.
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Harquebus Paintball, Inc.
5.0 Strategy and Implementation Summary
HPI's strategy and implementation are summarized in the following "to-do" list below:
1.
2.
3.
4.
5.
Funding: Acquire the necessary amount ($220,000) to "start-up" the business.
Remodeling: Create an attractive store and fill with product.
Marketing: Attract potential customers to the store and create a public awareness.
Customer Loyalty Programs: Use strategies such as sales/promotions/membership
discounts as a way to keep customers satisfied and coming back.
Growth: Follow certain goals/objectives listed throughout the plan to obtain a strong,
steady growth and profit.
HPI's main objective for growth is to attract customers in Bombarde County by giving premier
service, selection, sales, promotions, and prices.
5.1 Competitive Edge
The advantages Harquebus Paintball has over the competition are numerous:
• Sales/Promotions/Gift Cards/Membership Cards: HPI will host many
sales/promos, unlike the competition, as well as offering gift cards and membership
programs, which the competition does not participate in, and will increase customer
savings and satisfaction to drive customers to the store.
• Internet: HPI will have a professional online website and eventually an online store
that will provide products and community news.
• Service: HPI's knowledge and service in the broad field of paintball will be extensive
and satisfying. This will drive customer repair requests to the store, as well as
pointing its customers in the right purchasing direction.
• Selection: HPI will offer a greater selection with better prices than the competition
will hold.
• Attractiveness: HPI's store will be clean, tidy, "hi-tech", and advanced compared to
OPC and Musketeer Paintball.
• Sponsorship: HPI will put together a team of tournament expert paintball players
and sponsor them with HPI gear (jerseys; pants; etc.)and paintball equipment (guns;
paint; etc.).
• Tournament Hostings: HPI will host several tournaments throughout the year,
spreading the name of HPI even further, as well as generating additional income.
5.2 Marketing Strategy
Harquebus Paintball's marketing strategy is to hit hard and fast, and will include the
following, from three weeks before grand opening to approximately one week after grand
opening:
1.
Local Advertising:
• TV and Radio: HPI will advertise heavily three weeks before grand opening on
television and radio stations (100 Targeted Rating Points, males 12-24) that
focus on younger crowds to create a large public awareness.
• Live Remote: HPI will host a live remote with a radio station on grand opening
day to attract potential customers to the store and to further create public
awareness.
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Harquebus Paintball, Inc.
2.
3.
4.
Giveaways: HPI will give away t-shirts for the first week of grand opening with the
HPI logo embroidered on it for further advertising.
Sales: HPI will host a grand opening day sale to attract potential customers, such as
15% off all store merchandise.
Contests: HPI will also host a drawing on grand opening day for all customers who
purchase something. Giveaway will include an item such as a "tricked out" gun valued
at $1,500 or so.
These four strategies will be used to create public awareness of Harquebus Paintball's grand
opening, to drive customers to the store for the first time, to spread the word on how
wonderful HPI is, and to keep the paintballers coming back, over and over again.
5.3 Sales Strategy
Harquebus Paintball's survival will be riding on its wonderful savings and promotional
opportunities, as well as its large product selection. Harquebus Paintball will gain/maintain
customers through the following sales strategies*:
1.
2.
3.
4.
5.
Sales: HPI will host weekly and monthly sales.
• General sales ($15 off this; 10% off that; etc.).
• The old buy one get one... (buy X amount of this, get X amount free; buy X
amount of this, get X amount 1/2 price; etc.).
• The old two for one... (buy X amount for the price of X amount; etc.).
Promotions: HPI will host weekly and monthly promotions.
• Field paint store credit (buy a case of paint at HPI, bring in original receipt and
field paint charge receipt and receive a store credit in the amount of the field
paint charge).
• Purchase and contest (purchase anything and automatically be entered to win
X; etc.).
• Purchase and installation (purchase any upgrade and receive free installation;
etc.).
Gift Cards: HPI will allow for the use of gift cards (presents; HPI "debit" cards; etc).
Membership Cards: HPI will offer membership cards for even further savings in the
future for repeat customers.
• Spend X amount in HPI and receive X amount store credit.
Product Selection: HPI will carry a wide range of gear/equipment from low priced to
high priced product, generic to brand name product, color variety, and popular to
unique products.
By offering a large product selection and these savings and promotional opportunities, HPI
will be the premier retail paintball center throughout Bombarde County, if not the entire state
.
* all sales strategies (sales and promotional activities) will be tailored to maintain a healthy
profit margin.
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Harquebus Paintball, Inc.
5.3.1 Sales Forecast
HPI estimated that a 25% profit margin is attributed to each category (guns; hoppers;
paintballs; etc), and an estimated 1% growth rate is applied to the sales and the direct costs
of sales. As you can see by the table and charts on the following pages, HPI estimates that
total sales for the first year of business will reach around $1,920,385 with the 25% profit
margin and at a 1% growth rate. HPI derived these estimates in the following manner:
• Finding The Averages (Sales Projection):
• HPI created an average price for each subcategory within the main category.
(ie: Gun Sales - Gun Price Range: Low/Mid/High. Apparel - masks; jerseys;
pants; gloves; shoes; etc.)
• Heavily researched the "best selling" products for each category from other
competition stores to get a general idea of which sub-categoric products will
sell the most in each main category, and created realistic sales models for
those products (ie: Gun Sales - Gun Price Range: Low/Mid/High. Frequency:
Mid sold the greatest, followed by high, and then the lows).
• Averaged out the sub-categoric prices with the frequency at which they were
being sold at to find the average price of each main category.
• Paintball Evolution Theory, "PET Theory" (The Driving Force): HPI created a
simple theory (based upon a paintball sales market study) to reduce, define, and finetune the basic dynamics of each individual paintball player's yearly purchases.
• The PET Theory states that each player will purchase one new item from each
of the main categories listed in the "Sales Forecast" below at least once a year
(due to depreciation of goods, new technology, and skill level of player), and at
least one box of paintballs will be purchased once per month.
• Market Audience (Market Analysis):
• HPI estimates that out of the total 2,142 active paintball players in Bombarde
County, an average of 50% (1,072 players) will purchase their goods from
Harquebus Paintball. This estimate was found by splitting the geographical
Bombarde County region into three sections: Top/Mid/Bottom. The top section
(Northern Bombarde County) labeled as 25% of the paintball players in
Bombarde County, the mid section (Mid Bombarde County) labeled as 50% of
the paintball players in Bombarde County, and the bottom section (Southern
Bombarde County) labeled at 25% of the paintball players in Bombarde
County. HPI, as well as OPC and Musketeer fields, are all located in the "mid"
section.
• Compilation (Conclusion):
• Due to the "PET" Theory, if each paintball player purchases one new item from
each main category once a year in the "Sales Forecast," then taking the
average item cost for the main category and multiplying it by the 50% target
audience, 1,072 players, and dividing that figure by 12, HPI found the monthly
average revenue for each category, with the exception of paintballs.*
• Main Category's Average Price x 1,072 players = Category's Annual Revenue.
HPI feels that the Paintball Evolution Theory is reasonable and reliable from the fact that
nearly every paintballer switches out equipment/gear at least once a year due to the
technological advances in product, the rapid depreciation of paintball equipment/gear, skill
level advances in players, etc.
HPI believes that paintball games will continue to grow over the next several years, and may
increase HPI's overall growth rate. With the offering of a large product selection, sales, and
promotions, HPI will sustain a continuously growing customer database which will allow the
following sales projections to be realistic and true.
Limiting factors such as rain should not have a deep impact on day-to-day sales due to the
Page 14
Harquebus Paintball, Inc.
fact that Musketeer's paintball field is indoors. Other limiting factors, such as economic
recession, may hurt HPI's monthly sales due to the fact that paintball, like many other things,
are items of want and not need (such as groceries).
* It is stated in the PET Theory that one case of paintballs will be purchased once a month:
1,072 players x 12 months x average paint price = Annual Paintball Revenue.
Table: Sales Forecast
Sales Forecast
FY 2006
FY 2007
FY 2008
Sales
Guns
Hoppers
Paintballs
Gun Upgrades
Apparel
Repairs
Magazines
Total Sales
$453,184
$79,304
$679,782
$226,598
$453,184
$22,664
$5,669
$1,920,385
$475,843
$83,269
$720,569
$240,194
$466,779
$23,797
$5,726
$2,016,177
$499,635
$87,432
$763,803
$254,606
$480,783
$24,987
$5,783
$2,117,029
Direct Cost of Sales
Guns
Hoppers
Paintballs
Gun Upgrades
Apparel
Repairs
Magazines
Subtotal Direct Cost of Sales
FY 2006
$339,888
$59,481
$509,837
$169,946
$339,891
$9,395
$4,249
$1,432,685
FY 2007
$343,287
$60,076
$514,935
$171,645
$343,290
$9,489
$4,291
$1,447,012
FY 2008
$346,720
$60,677
$520,084
$173,361
$346,723
$9,584
$4,334
$1,461,482
Sales Monthly
$180,000
$160,000
$140,000
Guns
$120,000
Hoppers
$100,000
Paintballs
Gun Upgrades
$80,000
Apparel
$60,000
Repairs
$40,000
Magazines
$20,000
$0
Apr May Jun
Jul Aug Sep Oct Nov Dec Jan Feb Mar
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Harquebus Paintball, Inc.
Sales by Year
$2,500,000
$2,000,000
Guns
Hoppers
$1,500,000
Paintballs
Gun Upgrades
$1,000,000
Apparel
Repairs
Magazines
$500,000
$0
FY 2006
FY 2007
FY 2008
5.4 Milestones
The following table represents important goals or "milestones" with their starting/ending
dates, budget, manager in-charge, and the department for Harquebus Paintball. The table is
sorted in ascending order by "start date."
The first milestone will be the "soft" opening of the store. This will be the first day of opening.
The next five milestones are for public awareness and to drive customers to the grand
opening of the store. The Membership Promotion is for building a customer database and
acquiring customer loyalty. The next three milestones are setup to further promote HPI's
wonderful savings opportunities with major sales.
More sales and promotions will be added at a later date, and current milestones can also be
shifted to different dates if needed.
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Harquebus Paintball, Inc.
Table: Milestones
Milestones
Milestone
Soft Opening
Grand Opening Details
TV and Radio
Advertising
Live Remote
Grand Opening Sale
Grand Opening
Giveaway
Membership Promotion
Field Paint Promotion
(Field Charge Refund)
Apparel Sale: 7% Off
Hopper Sale: 5% Off
Web Phase 2: e-Store
Sector Creation
Gift Card Promotion
Gun Sale: 5% Off
Upgrades Sale: 5% Off
Web Phase 2: e-Store
Testing / Soft Opening
Web Phase 2: e-Store
Grand Opening
Advertising
Totals
Start Date
4/1/2005
3/26/2005
End Date
4/1/2005
4/15/2005
Budget
$0
$0
Manager
Padraich
Padraich
Department
Store
Web
3/27/2005
4/17/2005
$40,000
Dolores
Marketing
4/15/2005
4/15/2005
4/15/2005
4/15/2005
$5,000
$0
Dolores
Geoffrey
Marketing
Inventory
4/15/2005
4/15/2005
$2,000
Geoffrey
Inventory
4/15/2005
5/13/2005
$0
Padraich
Store
4/15/2005
5/13/2005
$0
Geoffrey
Inventory
4/22/2005
5/29/2005
4/29/2005
5/6/2005
$0
$0
Geoffrey
Geoffrey
Inventory
Inventory
5/1/2005
6/30/2005
$3,500
Padraich
Web
5/1/2005
5/1/2005
11/20/2005
5/31/2005
5/15/2005
11/27/2005
$0
$0
$0
Padraich
Geoffrey
Geoffrey
Store
Inventory
Inventory
7/1/2005
7/14/2005
$0
Padraich
Web
7/15/2005
8/5/2005
$10,000
Dolores
Marketing
$60,500
6.0 Web Plan Summary
Harquebus Paintball's website will be the perfect online companion for the physical store, as
well as its online "home." The HPI website will be an easy-to-navigate, secure, sleek, hi-tech,
professional looking website with lots of user friendly features. The HPI website will go
through three phases:
1.
2.
3.
Phase One: (short-term)
• Advertising: HarquebusPaintball.com will be "live" online approximately three
weeks before grand opening. During HPI's marketing phase, HPI's Web
address will be mentioned in the various radio and TV spots so people can visit
the website and get more information on Harquebus Paintball.
• Info Center: HarquebusPaintball.com will be a primary host for news and
updates on HPI for approximately three weeks before grand opening to two
months after grand opening. Information will include such dates as to grand
opening, certain milestones, and special events that may occur in the paintball
community.
Phase Two: (short-term)
• Info Center: HarquebusPaintball.com will continue to host information and
updates on HPI's milestones and the paintball community's special events.
• e-Store: HarquebusPaintball.com will evolve into an online store three months
after grand opening, using the physical store's inventory and hosting many
features such as: online accounts; online purchasing and shipment; online
purchasing and in-store pickup; product availability; etc. HPI's online store will
be targeted mainly for the Bombarde County area's use as a
time/place/satisfaction utility, but will fulfill out-of-state purchases, as the
sales grow.
Phase Three: (long-term)
• e-Store Expansion: HarquebusPaintball.com will focus on online sales growth,
targeting the entire nation. HPI will create a website department, with
inventory strictly for online purchases, larger and more technical programs will
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Harquebus Paintball, Inc.
be implemented into the website's design, and online marketing/advertising
will be carried out.
6.1 Website Marketing Strategy
Harquebus Paintball's website marketing strategy will be synchronized with the three Web
plan phases:
1.
2.
3.
Phase 1: (short-term [target audience: Bombarde County kids and young
adults])
• TV and Radio: HarquebusPaintball.com will be stressed for customers to visit
during the launch campaign on various radio and TV stations during the "TV
and radio" advertising phase of HPI's marketing plan, approximately three
weeks prior to grand opening. This will give interested potential customers a
chance to find out more information on HPI that may be included online rather
than in the TV and radio advertisements.
• Live Remote: HarquebusPaintball.com will be announced periodically
throughout the radio stations' (undecided) live remote to attract more
potential customers to the website.
Phase 2: (short-term [target audience: Bombarde County kids and young
adults])
• Radio: The new HarquebusPaintball.com e-store will be advertised for
approximately 2-3 weeks on various radio stations that attract kids and young
adults.
• In-Store: Banners and signs will be strategically placed throughout the
physical store sending out the message that HPI now has a full online store
with many great user-friendly features.
• Contests: Customers can create an online account with HPI, and upon
registration, they will automatically be entered for a chance to win a giveaway
prize. This will allow HPI to to build an online customer database, and offer
monthly e-news letters to the online members.
Phase 3: (long-term [target audience: The United States])
• Search Engines: HarquebusPaintball.com will be listed under every major
search engine such as: www.Google.com; www.MSN.com; www.Yahoo.com;
www.AskJeeves.com; etc.
• Online Malls: HarquebusPaintball.com will list products under major online
product compilation sites and malls such as: www.PriceGrabber.com;
www.MySimon.com; etc.
• Website Banners: HarquebusPaintball.com will create attractive banners with a
link to the HPI website, and host the banners on high "paintball traffic"
websites such as: www.Paintball.com; etc.
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Harquebus Paintball, Inc.
6.2 Development Requirements
HarquebusPaintball.com will require the following during the short-term phases:
1.
2.
Phase
•
•
Phase
•
•
•
•
•
•
•
•
•
One:
Web Domain HarquebusPaintball.com
Web Hosting provider (Jumpline.com)
Two:
Web Domain HarquebusPaintball.com
Web Hosting provider (Jumpline.com)
Merchant Account (to hold online profits)
Verisign Services:
• SSL Certificate (Secure Purchasing)
• Credit Card Processing (Payment Methods)
• Buyer Protection (Stolen Credit Card Protection)
• Anti-Fraud Service (Fake/Unauthorized Credit Transactions)
Macromedia Dreamweaver MX w/business license (Site Layout Development)
Adobe Photoshop CS w/business license (Site Image Development)
Shopping Cart Program (Online "shopping cart" and Checkout Service)
UPS Business Account (Shipping)
Packaging Materials (Cartons; Boxes; Bubble Wrap; etc.)
Harquebus Paintball's website will be designed by Padraich Petard. The website will be
maintained by Kham Pholowyr and Padraich Petard daily. "Phase two" website features will
include in-store pickup, user accounts, product availability, employee schedules, etc.
7.0 Management Summary
Harquebus Paintball will have a management team of four members. Each member of the HPI
team will fulfill their specific job requirements and by working hard and together, HPI will
achieve all of its goals. The HPI employee department setup will be as follows: Store,
Inventory, and Service. Each department will have one manager in charge, and the possibility
of employees. HPI's department setup below:
• Store Department: (overall store operations)
• Manager (Store Manager): Padraich Petard, President/CE
• Weekly Hours: 40+.
• Assures that all other departments are working hard and consistently.
• Handles any job necessary to fulfill the operations of HPI, with the
exception of gun repairs/upgrades.
• Grants consent or vetoes ideas and inventory orders.
• Customer Assistance. (cashiering; product help; etc)
• Teams with the inventory and service departments to create new
sales/promotions to boost financials.
• Generates employee hours.
• Generates payroll.
• Handles financial duties (Accounting).
• Promotes store cleanliness. (store cleaning)
• Assistant Manager (Financial Manager): Petra Pistolero, Vice President/CFO
• Weekly Hours: 40+.
• Helps handle financial duties.
• Helps generate payroll.
• Helps generate employee hours.
• Teams with inventory and service departments to create new
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Harquebus Paintball, Inc.
sales/promotions to boost financials.
• Customer Assistance.
• Promotes store cleanliness.
• Inventory Department: (inventory management)
• Manager (Inventory Manager): Geoffrey Gunnar, Vice President/COO
• Weekly Hours: 40+.
• Manages product selection.
• Researches new product selection.
• Generates monthly inventory sales reports.
• Creates inventory reorder tickets.
• Teams with Store Management to create new inventory
sales/promotions.
• Customer Assistance.
• Promotes store cleanliness.
• Service Department: (services and repairs)
• Manager (Service Manager): Claude Carabinerie
• Hourly Wage: $9.00.
• Weekly Hours: 30-35.
• Gun-tech: novice/intermediate/advanced gun repairs and upgrades.
• Teams with Store Management to create new repair/upgrade
sales/promotions.
• Provides knowledgeable advice.
• Customer Assistance.
• Promotes store cleanliness.
• Service Employee(s) (Front Service Clerk):
• Hourly Wage: $7.50.
• Weekly Hours: 25.
• Gun-tech: novice/intermediate gun upgrades.
• Provides knowledgeable advice.
• Customer Assistance.
• Collect products at checkout time.
• Promotes store cleanliness.
HPI was founded by the Store and Inventory managers, Padraich Petard, Geoffrey Gunnar,
and Petra Pistolero.
7.1 Personnel Plan
As you can see in the personnel table below, HPI is estimated to have seven employees at
start-up: four managers, and three service clerks. Wages for service clerks were calculated
by taking the weekly hours, dispersing equal amount of daily hours over a full week,
multiplied by the number of days in each month, and multiplied again by hourly wage. The
wage for the "Service Manager" was calculated in the manner described above, and
subtracted by the average number of hours spent on gun repairs, which was an average of
20 per week, multiplied by the hourly wage. This expense is shown in the "5.3.1 Sales
Forecast" table labeled as the "Direct Cost of Sales" for the repairs category.
Please note that the wages below are total dollars earned per month, without the appropriate
taxes taken out. Taxes are estimated and labeled as an expense in the profit/loss table within
this plan.
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Harquebus Paintball, Inc.
Table: Personnel
Personnel Plan
Store Manager
Asst. Store Manager
Inventory Manager
Service Manager
Front Svc. Clerk
Front Svc. Clerk
Front Svc. Clerk
Total People
Total Payroll
FY 2006
$20,400
$20,400
$20,400
$10,404
$9,772
$9,772
$9,772
7
FY 2007
$20,000
$20,000
$20,000
$12,000
$10,424
$10,424
$10,424
7
FY 2008
$20,000
$20,000
$20,000
$12,000
$11,075
$11,075
$11,075
7
$100,920
$103,272
$105,225
8.0 Financial Plan
Harquebus Paintball's start-up funding will include an investment made in the company
totaling $80,000 by the owners, and a long-term SBA or commercial bank loan for $140,000.
HPI will achieve profitability in its first year of operations, and will sustain a slow, steady
profit margin and a rapidly growing cash account with solid growth from the end of the first
year's operations to the end of the third year's operations. HPI will continue this amazing
growth via sales, promotions, product selection, the launching of new stores, distributor
discounting, company franchising, etc.
The financials are projected out three years, but are based on the original store only. If actual
results for each year play out at equal to or greater than projections, the available cash on
hand will be used as seed capital for HPI's expansion.
8.1 Important Assumptions
Harquebus Paintball has taken assumptions about the following:
• The sport of paintball will undertake a slow and steady economic growth throughout
the next several years.
• A "worse case" scenario, HPI assumes an average profit margin of 25% on all
products.
• All avid Bombarde County paintball players will purchase new gear/equipment at least
once a year.
• Our target market only includes current Bombarde County paintballers, not all males
ages 12-24 who may have an interest in paintball.
All estimates and assumptions will be adjusted once HPI has been finalized and established.
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Harquebus Paintball, Inc.
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
FY 2006
1
10.00%
6.00%
30.00%
0
FY 2007
2
10.00%
6.00%
30.00%
0
FY 2008
3
10.00%
6.00%
30.00%
0
8.2 Start-up Funding
Padraich Petard, Geoffrey Gunnar and Petra Pistolero will each invest $20,000 in Harquebus
Paintball, Inc. Dolores Derringer and Claude Carabinerie will invest $10,000 each.
Harquebus Paintball will welcome additional investment form outside parties.
HPI will seek a $140,000 long-term SBA loan through local Bigbucks Bank, which specializes
in serving Bombarde County commerce.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
$95,336
$124,664
$220,000
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$97,100
$27,564
$0
$27,564
$124,664
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
$0
$140,000
$0
$0
$140,000
Capital
Planned Investment
Petard
Gunnar
Pistolero
Derringer
Carabinerie
Additional Investment Requirement
Total Planned Investment
$20,000
$20,000
$20,000
$10,000
$10,000
$0
$80,000
Loss at Start-up (Start-up Expenses)
Total Capital
($95,336)
($15,336)
Total Capital and Liabilities
$124,664
Total Funding
$220,000
Page 22
Harquebus Paintball, Inc.
8.3 Break-even Analysis
As shown in the table below, Harquebus Paintball estimates that 75,000 units of $1 must be
sold (under the circumstance that a 25% profit margin is attributed to each item), and a
revenue of $74,200 must be generated monthly to break-even with its estimated monthly
fixed costs (utilities, payroll, depreciation, etc.) which are running at about $19,000/month.
Basically selling 2,500 units per day ($2,500/day) will be HPI's break-even point.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even
$74,192
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
75%
$18,842
Break-even Analysis
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Monthly break-even point
Break-even point = where line intersects with 0
8.4 Projected Profit and Loss
Shown in the following table, projected profits and gross margins are as follows: $1,920,385
in revenue for the first year with a 1% growth margin; gross margin profits of $487,699 for
the first year; and a net profit of $177,239 for the first year of operations.
Profits and losses are summed up below:
• Rent: Rent in Enfilade Plaza has three property leasing charges: base rent charge
($12 s/f per annum), NNN charges ($4.45 s/f per annum); 4% s/f management fee
based on the base rent charge. The property at Enfilade is 1,800 s/f. After all the
math, the monthly costs are: $1,800.00(base fee) + 667.50(NNN fee) +
$72.00(management fee) = $2,539.50 + 7% FL sales tax = $2,717.27 Total Monthly
Rent.
• Utilities: Utilities for HPI will consist of electric ($150), water ($25), telephone ($90),
Page 23
Harquebus Paintball, Inc.
Internet ($90), fax ($30), etc., for a total monthly cost of approx. $400.
• Insurance: A $50,000 125% inventory insurance policy will cost $94/month.
• Payroll Taxes: Payroll taxes will average about 20% of total dollars earned.
Table: Profit and Loss
Pro Forma Profit and Loss
FY 2006
$1,920,385
$1,432,685
$0
-----------$1,432,685
FY 2007
$2,016,177
$1,447,012
$0
-----------$1,447,012
FY 2008
$2,117,029
$1,461,482
$0
-----------$1,461,482
$487,699
25.40%
$569,165
28.23%
$655,547
30.97%
$100,920
$103,272
$105,225
$78,000
$78,000
$78,000
Total Operating Expenses
$600
$32,607
$4,800
$1,128
$6,845
$1,200
$0
-----------$226,100
$600
$32,607
$4,800
$1,128
$7,286
$1,500
$0
-----------$229,192
$600
$32,607
$4,800
$1,128
$7,732
$1,500
$0
-----------$231,592
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
$261,599
$262,199
$8,400
$75,960
$339,973
$340,573
$8,400
$99,472
$423,955
$424,555
$8,400
$124,666
Net Profit
Net Profit/Sales
$177,239
9.23%
$232,101
11.51%
$290,888
13.74%
Sales
Direct Costs of Goods
Other Costs of Goods
Cost of Goods Sold
Gross Margin
Gross Margin %
Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Website
Other
8.5 Projected Cash Flow
Harquebus Paintball demonstrates its projected cash flow in the table and chart shown on the
following pages.
• Cash Flow: HPI estimates mass inventory purchases every other month, therefore
creating a "wave" effect in HPI's cash flow from positive flow to negative flow during
inventory months, yet sustaining an overall positive cash balance. As HPI will continue
to grow throughout the years, negative cash flow will slowly decrease as positive cash
flow slowly increases. As shown in the table on the following page, Net Cash Flow is
derived by the "Cash Spent (inventory; payroll, rent, etc.)" and subtracted from the
"Operations Cash (cash gained from sales)," therefore showing how much money is
flowing into or out of HPI's checking accounts. By the end of first year's operations,
HPI will have sustained an overall positive cash flow.
• Cash Balance: As shown in the chart on the following page, HPI's "Cash Balance
(cash in checking account)" will remain positive, and sustain a continuous positive
growth rate. Cash balance is derived by taking the current month's "Net Cash Flow"
and adding it to the previous month's "Cash Balance." Cash "on hand" by the end of
first year's operations is estimated to be $262,742; a $98,000 positive cash margin
from the end of month one to the end of month 12.
Page 24
Harquebus Paintball, Inc.
Table: Cash Flow
Pro Forma Cash Flow
FY 2006
FY 2007
FY 2008
$1,920,385
$1,920,385
$2,016,177
$2,016,177
$2,117,029
$2,117,029
$134,427
$141,132
$148,192
$0
$0
$0
$0
$0
$0
$2,054,812
$0
$0
$0
$0
$0
$0
$2,157,310
$0
$0
$0
$0
$0
$0
$2,265,221
FY 2006
FY 2007
FY 2008
$100,920
$1,559,537
$1,660,457
$103,272
$1,684,070
$1,787,342
$105,225
$1,718,418
$1,823,643
$134,427
$141,132
$148,192
$0
$0
$0
$24,750
$26,300
$27,900
$0
$0
$0
$0
$0
$0
$1,819,634
$0
$0
$0
$1,954,774
$0
$0
$0
$1,999,735
$235,178
$262,742
$202,536
$465,278
$265,486
$730,764
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
Cash
$300,000
$250,000
$200,000
$150,000
Net Cash Flow
$100,000
Cash Balance
$50,000
$0
($50,000)
Apr May Jun
Jul Aug Sep Oct Nov Dec Jan Feb Mar
Page 25
Harquebus Paintball, Inc.
8.6 Projected Balance Sheet
The balance sheet below represents Harquebus Paintball's overall cash position through the
years 2006-2008, only including the original store, as well as Internet sales. As shown in the
table below, HPI's "Net Worth" is projected to increase approximately $849,557 from month
one ($15,336) to a net worth of $864,893 by the end of 2008. Harquebus Paintball does not
project any trouble meeting its debt obligations as long as the specific goals and objectives
mentioned earlier in this plan are achieved.
Table: Balance Sheet
Pro Forma Balance Sheet
FY 2006
FY 2007
FY 2008
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
$262,742
$138,604
$12,100
$413,446
$465,278
$139,990
$12,100
$617,368
$730,764
$141,390
$12,100
$884,254
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$5,000
$600
$4,400
$417,846
$5,000
$1,200
$3,800
$621,168
$5,000
$1,800
$3,200
$887,454
FY 2006
FY 2007
FY 2008
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
$140,692
$0
($24,750)
$115,942
$138,213
$0
($51,050)
$87,163
$141,511
$0
($78,950)
$62,561
Long-term Liabilities
Total Liabilities
$140,000
$255,942
$140,000
$227,163
$140,000
$202,561
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$80,000
($95,336)
$177,239
$161,904
$417,846
$80,000
$81,904
$232,101
$394,005
$621,168
$80,000
$314,005
$290,888
$684,893
$887,454
Net Worth
$161,904
$394,005
$684,893
Assets
Liabilities and Capital
8.7 Business Ratios
Harquebus Paintball's projected business ratios are provided in the table below. HPI chose the
Standard Industry Classification (SIC) code: Sporting goods and bicycle shops - 5941 as the
closest match to its industry.
Page 26
Harquebus Paintball, Inc.
Table: Ratios
Ratio Analysis
Sales Growth
FY 2006
0.00%
FY 2007
4.99%
FY 2008
5.00%
Industry Profile
-1.56%
Percent of Total Assets
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
33.17%
2.90%
98.95%
1.05%
100.00%
22.54%
1.95%
99.39%
0.61%
100.00%
15.93%
1.36%
99.64%
0.36%
100.00%
37.25%
28.41%
77.97%
22.03%
100.00%
27.75%
33.51%
61.25%
38.75%
14.03%
22.54%
36.57%
63.43%
7.05%
15.78%
22.82%
77.18%
33.29%
16.07%
49.36%
50.64%
100.00%
25.40%
100.00%
28.23%
100.00%
30.97%
100.00%
32.06%
8.24%
7.98%
7.72%
16.24%
0.00%
13.62%
0.00%
16.86%
0.00%
20.03%
1.62%
1.22%
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
3.57
2.37
61.25%
156.39%
60.60%
7.08
5.48
36.57%
84.15%
53.38%
14.13
11.87
22.82%
60.67%
46.83%
2.01
0.79
56.78%
2.79%
6.45%
Additional Ratios
Net Profit Margin
Return on Equity
FY 2006
9.23%
109.47%
FY 2007
11.51%
58.91%
FY 2008
13.74%
42.47%
n.a
n.a
10.91
12.08
27
4.60
10.39
12.17
30
3.25
10.39
12.17
30
2.39
n.a
n.a
n.a
n.a
1.58
0.45
0.58
0.38
0.30
0.31
n.a
n.a
$297,504
31.14
$530,205
40.47
$821,693
50.47
n.a
n.a
0.22
28%
2.37
11.86
0.00
0.31
14%
5.48
5.12
0.00
0.42
7%
11.87
3.09
0.00
n.a
n.a
n.a
n.a
n.a
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth
Percent of Sales
Sales
Gross Margin
Selling, General & Administrative
Expenses
Advertising Expenses
Profit Before Interest and Taxes
Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout
Page 27
Appendix
Appendix Table: Sales Forecast
Sales Forecast
Sales
Guns
Hoppers
Paintballs
Gun Upgrades
Apparel
Repairs
Magazines
Total Sales
1%
1%
1%
1%
1%
1%
1%
Direct Cost of Sales
Guns
Hoppers
Paintballs
Gun Upgrades
Apparel
Repairs
Magazines
Subtotal Direct Cost of Sales
1%
1%
1%
1%
1%
1%
1%
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$35,733
$6,253
$53,600
$17,867
$35,733
$1,787
$447
$151,420
$36,090
$6,316
$54,136
$18,046
$36,090
$1,805
$451
$152,934
$36,451
$6,379
$54,677
$18,226
$36,451
$1,823
$456
$154,464
$36,816
$6,442
$55,224
$18,408
$36,816
$1,841
$461
$156,008
$37,184
$6,507
$55,776
$18,592
$37,184
$1,860
$465
$157,568
$37,556
$6,572
$56,334
$18,778
$37,556
$1,878
$470
$159,144
$37,931
$6,638
$56,897
$18,966
$37,931
$1,897
$474
$160,735
$38,311
$6,704
$57,466
$19,156
$38,311
$1,916
$479
$162,343
$38,694
$6,771
$58,041
$19,347
$38,694
$1,935
$484
$163,966
$39,081
$6,839
$58,622
$19,541
$39,081
$1,954
$489
$165,606
$39,471
$6,907
$59,208
$19,736
$39,471
$1,974
$494
$167,262
$39,866
$6,976
$59,800
$19,934
$39,866
$1,994
$499
$168,935
Apr
$26,800
$4,690
$40,200
$13,400
$26,800
$772
$335
$112,997
May
$27,068
$4,737
$40,602
$13,534
$27,068
$798
$338
$114,145
Jun
$27,338
$4,784
$41,008
$13,669
$27,339
$772
$342
$115,252
Jul
$27,612
$4,832
$41,418
$13,806
$27,612
$798
$345
$116,423
Aug
$27,888
$4,880
$41,832
$13,944
$27,888
$798
$349
$117,580
Sep
$28,167
$4,929
$42,251
$14,084
$28,167
$772
$352
$118,721
Oct
$28,448
$4,979
$42,673
$14,224
$28,449
$798
$356
$119,927
Nov
$28,733
$5,028
$43,100
$14,367
$28,733
$772
$359
$121,092
Dec
$29,020
$5,079
$43,531
$14,510
$29,021
$798
$363
$122,321
Jan
$29,310
$5,129
$43,966
$14,655
$29,311
$798
$366
$123,537
Feb
$29,604
$5,181
$44,406
$14,802
$29,604
$721
$370
$124,687
Mar
$29,900
$5,232
$44,850
$14,950
$29,900
$798
$374
$126,004
Page 28
Appendix
Appendix Table: Personnel
Personnel Plan
Store Manager
Asst. Store Manager
Inventory Manager
Service Manager
Front Svc. Clerk
Front Svc. Clerk
Front Svc. Clerk
Total People
Total Payroll
0%
0%
0%
0%
0%
0%
0%
Apr
$1,700
$1,700
$1,700
$867
$803
$803
$803
7
May
$1,700
$1,700
$1,700
$867
$830
$830
$830
7
Jun
$1,700
$1,700
$1,700
$867
$803
$803
$803
7
Jul
$1,700
$1,700
$1,700
$867
$830
$830
$830
7
Aug
$1,700
$1,700
$1,700
$867
$830
$830
$830
7
Sep
$1,700
$1,700
$1,700
$867
$803
$803
$803
7
Oct
$1,700
$1,700
$1,700
$867
$830
$830
$830
7
Nov
$1,700
$1,700
$1,700
$867
$803
$803
$803
7
Dec
$1,700
$1,700
$1,700
$867
$830
$830
$830
7
Jan
$1,700
$1,700
$1,700
$867
$830
$830
$830
7
Feb
$1,700
$1,700
$1,700
$867
$750
$750
$750
7
Mar
$1,700
$1,700
$1,700
$867
$830
$830
$830
7
$8,376
$8,457
$8,376
$8,457
$8,457
$8,376
$8,457
$8,376
$8,457
$8,457
$8,217
$8,457
Page 29
Appendix
Appendix Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
Current
Interest Rate
Long-term
Interest Rate
Tax Rate
Apr
1
May
2
Jun
3
Jul
4
Aug
5
Sep
6
Oct
7
Nov
8
Dec
9
Jan
10
Feb
11
Mar
12
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
30.00%
0
Page 30
Appendix
Appendix Table: Profit and Loss
Pro Forma Profit and Loss
Apr
$151,420
$112,997
$0
-----------$112,997
May
$152,934
$114,145
$0
-----------$114,145
Jun
$154,464
$115,252
$0
-----------$115,252
Jul
$156,008
$116,423
$0
-----------$116,423
Aug
$157,568
$117,580
$0
-----------$117,580
Sep
$159,144
$118,721
$0
-----------$118,721
Oct
$160,735
$119,927
$0
-----------$119,927
Nov
$162,343
$121,092
$0
-----------$121,092
Dec
$163,966
$122,321
$0
-----------$122,321
Jan
$165,606
$123,537
$0
-----------$123,537
Feb
$167,262
$124,687
$0
-----------$124,687
Mar
$168,935
$126,004
$0
-----------$126,004
$38,423
25.38%
$38,789
25.36%
$39,211
25.39%
$39,585
25.37%
$39,989
25.38%
$40,423
25.40%
$40,809
25.39%
$41,251
25.41%
$41,645
25.40%
$42,069
25.40%
$42,575
25.45%
$42,931
25.41%
$8,376
$8,457
$8,376
$8,457
$8,457
$8,376
$8,457
$8,376
$8,457
$8,457
$8,217
$8,457
$6,500
$6,500
$6,500
$6,500
$6,500
$6,500
$6,500
$6,500
$6,500
$6,500
$6,500
$6,500
$50
$2,717
$400
$94
$562
$100
$0
-----------$18,799
$50
$2,717
$400
$94
$581
$100
$0
-----------$18,899
$50
$2,717
$400
$94
$568
$100
$0
-----------$18,805
$50
$2,717
$400
$94
$581
$100
$0
-----------$18,899
$50
$2,717
$400
$94
$581
$100
$0
-----------$18,899
$50
$2,717
$400
$94
$562
$100
$0
-----------$18,799
$50
$2,717
$400
$94
$581
$100
$0
-----------$18,899
$50
$2,717
$400
$94
$562
$100
$0
-----------$18,799
$50
$2,717
$400
$94
$581
$100
$0
-----------$18,899
$50
$2,717
$400
$94
$581
$100
$0
-----------$18,899
$50
$2,717
$400
$94
$525
$100
$0
-----------$18,603
$50
$2,717
$400
$94
$581
$100
$0
-----------$18,899
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
$19,624
$19,674
$700
$5,677
$19,890
$19,940
$700
$5,757
$20,406
$20,456
$700
$5,912
$20,686
$20,736
$700
$5,996
$21,090
$21,140
$700
$6,117
$21,623
$21,673
$700
$6,277
$21,909
$21,959
$700
$6,363
$22,451
$22,501
$700
$6,525
$22,746
$22,796
$700
$6,614
$23,170
$23,220
$700
$6,741
$23,972
$24,022
$700
$6,982
$24,032
$24,082
$700
$7,000
Net Profit
Net Profit/Sales
$13,247
8.75%
$13,433
8.78%
$13,794
8.93%
$13,990
8.97%
$14,273
9.06%
$14,646
9.20%
$14,847
9.24%
$15,226
9.38%
$15,432
9.41%
$15,729
9.50%
$16,290
9.74%
$16,332
9.67%
Sales
Direct Costs of Goods
Other Costs of Goods
Cost of Goods Sold
Gross Margin
Gross Margin %
Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Rent
Utilities
Insurance
Payroll Taxes
Website
Other
Total Operating Expenses
20%
Page 31
Appendix
Appendix Table: Cash Flow
Pro Forma Cash Flow
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$151,420
$151,420
$152,934
$152,934
$154,464
$154,464
$156,008
$156,008
$157,568
$157,568
$159,144
$159,144
$160,735
$160,735
$162,343
$162,343
$163,966
$163,966
$165,606
$165,606
$167,262
$167,262
$168,935
$168,935
$10,599
$0
$0
$0
$0
$0
$0
$162,019
$10,705
$0
$0
$0
$0
$0
$0
$163,640
$10,812
$0
$0
$0
$0
$0
$0
$165,276
$10,921
$0
$0
$0
$0
$0
$0
$166,929
$11,030
$0
$0
$0
$0
$0
$0
$168,598
$11,140
$0
$0
$0
$0
$0
$0
$170,284
$11,251
$0
$0
$0
$0
$0
$0
$171,987
$11,364
$0
$0
$0
$0
$0
$0
$173,707
$11,478
$0
$0
$0
$0
$0
$0
$175,444
$11,592
$0
$0
$0
$0
$0
$0
$177,198
$11,708
$0
$0
$0
$0
$0
$0
$178,970
$11,825
$0
$0
$0
$0
$0
$0
$180,760
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$8,376
$5,801
$14,177
$8,457
$172,651
$181,108
$8,376
$132,297
$140,673
$8,457
$133,506
$141,963
$8,457
$134,841
$143,298
$8,376
$136,103
$144,479
$8,457
$137,374
$145,831
$8,376
$138,750
$147,126
$8,457
$140,019
$148,476
$8,457
$141,423
$149,880
$8,217
$142,749
$150,966
$8,457
$144,022
$152,479
$10,599
$10,705
$10,812
$10,921
$11,030
$11,140
$11,251
$11,364
$11,478
$11,592
$11,708
$11,825
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$2,250
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$24,777
$0
$0
$0
$194,063
$0
$0
$0
$153,736
$0
$0
$0
$155,134
$0
$0
$0
$156,578
$0
$0
$0
$157,869
$0
$0
$0
$159,332
$0
$0
$0
$160,740
$0
$0
$0
$162,204
$0
$0
$0
$163,723
$0
$0
$0
$164,924
$0
$0
$0
$166,555
$137,243
$164,807
($30,424)
$134,383
$11,540
$145,923
$11,795
$157,718
$12,020
$169,739
$12,415
$182,154
$12,655
$194,809
$12,967
$207,775
$13,240
$221,015
$13,475
$234,490
$14,046
$248,537
$14,205
$262,742
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
7.00%
Page 32
Appendix
Appendix Table: Balance Sheet
Pro Forma Balance Sheet
Assets
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Starting Balances
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
$27,564
$80,000
$12,100
$119,664
$164,807
$124,296
$12,100
$301,203
$134,383
$125,559
$12,100
$272,043
$145,923
$126,778
$12,100
$284,801
$157,718
$128,066
$12,100
$297,884
$169,739
$129,337
$12,100
$311,176
$182,154
$130,593
$12,100
$324,847
$194,809
$131,920
$12,100
$338,828
$207,775
$133,201
$12,100
$353,077
$221,015
$134,553
$12,100
$367,669
$234,490
$135,890
$12,100
$382,481
$248,537
$137,155
$12,100
$397,792
$262,742
$138,604
$12,100
$413,446
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$5,000
$0
$5,000
$124,664
$5,000
$50
$4,950
$306,153
$5,000
$100
$4,900
$276,943
$5,000
$150
$4,850
$289,651
$5,000
$200
$4,800
$302,684
$5,000
$250
$4,750
$315,926
$5,000
$300
$4,700
$329,547
$5,000
$350
$4,650
$343,478
$5,000
$400
$4,600
$357,677
$5,000
$450
$4,550
$372,219
$5,000
$500
$4,500
$386,981
$5,000
$550
$4,450
$402,242
$5,000
$600
$4,400
$417,846
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
$0
$0
$0
$0
$168,242
$0
$0
$168,242
$127,849
$0
($2,250)
$125,599
$129,013
$0
($4,500)
$124,513
$130,306
$0
($6,750)
$123,556
$131,525
$0
($9,000)
$122,525
$132,750
$0
($11,250)
$121,500
$134,084
$0
($13,500)
$120,584
$135,307
$0
($15,750)
$119,557
$136,667
$0
($18,000)
$118,667
$137,950
$0
($20,250)
$117,700
$139,171
$0
($22,500)
$116,671
$140,692
$0
($24,750)
$115,942
Long-term Liabilities
Total Liabilities
$140,000
$140,000
$140,000
$308,242
$140,000
$265,599
$140,000
$264,513
$140,000
$263,556
$140,000
$262,525
$140,000
$261,500
$140,000
$260,584
$140,000
$259,557
$140,000
$258,667
$140,000
$257,700
$140,000
$256,671
$140,000
$255,942
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
$80,000
($95,336)
$0
($15,336)
$124,664
$80,000
($95,336)
$13,247
($2,089)
$306,153
$80,000
($95,336)
$26,680
$11,344
$276,943
$80,000
($95,336)
$40,474
$25,138
$289,651
$80,000
($95,336)
$54,464
$39,128
$302,684
$80,000
($95,336)
$68,737
$53,401
$315,926
$80,000
($95,336)
$83,383
$68,047
$329,547
$80,000
($95,336)
$98,230
$82,894
$343,478
$80,000
($95,336)
$113,456
$98,120
$357,677
$80,000
($95,336)
$128,888
$113,552
$372,219
$80,000
($95,336)
$144,617
$129,281
$386,981
$80,000
($95,336)
$160,907
$145,571
$402,242
$80,000
($95,336)
$177,239
$161,904
$417,846
Net Worth
($15,336)
($2,089)
$11,344
$25,138
$39,128
$53,401
$68,047
$82,894
$98,120
$113,552
$129,281
$145,571
$161,904
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Page 33