SADIE’S COUNTRY ‘N’
WESTERN
SADIE’S
COUNTRY ‘N’
WESTERN
Sherry Deissner
Krista Grahn
Chris Harding
Zaya Kadyrova
Maura Kearney
Proposal Outline
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Business Potential and Proposal
Marketing Plan
Operations Plan
Human Resources Plan
Financial Plan
Business Value and Profitability
Potential and Proposal
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Sadie’s Country ‘n’ Western
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Products
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Western wear
Casual wear
Rancher’s supplies and tack (saddles, bridles,
halters, leads, etc.)
Location: Champion, Alberta
Potential and Proposal
Champion
Potential and Proposal
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Value in the concept
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One-stop shop idea
Fulfills a need of working area residents (farmers
and ranchers)
Convenience
Low prices
Mission Statement
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Sadie’s Country n’ Western is a retailer of
country supplies and casual and Western wear
for men, women, and children. Sadie’s is
dedicated to providing convenience of a onestop destination of choice for families of
Southern Alberta at competitive prices.
Goals
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Short term goals:
1) Secure our desired location in the mini mall of
Champion, Alberta
2) Acquire the necessary financing
3) Enter into supplier agreements with desirable terms
4) Become profitable in the first few years of operations
5) Achieve market share of 10% in the Vulcan County
and 1-2% in surrounding counties
Goals
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Long term goals:
1) Monitor key ratios against industry and achieve performance that
is at least at par with industry standards
2) Become a well-recognized brand name in Southern Alberta and
Western Canada
3) Maintain healthy positive cash flows from operations
4) Maintain low overhead and other operating costs
5) By year 5 or 7 Sadie hopes to open a new location in Lethbridge,
AB. If the current location proves to be as successful as projected,
a franchising plan will be created enabling us to open new locations
across Southern Alberta and Western Canada.
Market Overview
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Target geographic area
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Vulcan County and other nearby counties
61,803 people, excluding Lethbridge
Aiming to get 10% market share
Predominately rural
Target population
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Price-sensitive ranchers and farmers
Visitors
Industry Overview
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Target geographic area
Industry Overview
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Competition
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Economic trends
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Lammle’s
Barriers to entry
No direct competition in target area
Positive in Alberta
Food prices
Recession/cost of fuel
Consumer trends
Marketing Plan
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Place
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Product
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Mini mall
Convenience, affordability, necessity
Promotion
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Catalogues
Stampede
Flyers
Billboards
Price
Revenue and Marketing Costs
Operations Plan
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Organizational Structure
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Incorporation
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Positive net income anticipated
Protection from personal liability
Tax deferral opportunities
Operations Plan
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Site Plan
-Mini-Mall on 1st Avenue Main St, Champion
Operations Plan
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Floor Plan
st Avenue
1st 1Avenue
Clothes
Clothes
Toys
Toys
Gifts
Tack
Gifts
Tack
Change
Change Room
rooms
Wash
Was
Room
hroo
Register
Register
Storage/Receiving
Storage / Receiving
Operations Plan
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Daily Operations
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Store Manager
Hours of Operation
Daily Activities
Stampede
Operations Plan
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Suppliers
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Traditional Western Designs
Exclusive contracts (Weaver Leather)
Stable well known suppliers
North American Based suppliers
Operations Plan
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Working Capital
Cash
$ 50,000.00
Accounts Receivable
$
Inventories
$ 109,863.43
Accounts Payable
$
Total Net Working Capital
$ 160,968.21
1,104.78
-
Operations Plan
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Capital Budget Summary
Cash Register's and Micro's
POS System
$
Furniture and Fixtures
$ 40,000.00
Leasehold Improvements
$ 20,250.00
Trailor
$ 15,000.00
Leasing Deposit
$
Net Working Capital
$ 160,968.21
Total Capital Required
$ 248,218.21
6,000.00
6,000.00
Operations Plan
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Cost of Sales
Western wear
Casual wear
Gifts
Saddles
Tack
$
$
$
$
$
$
Revenue
415,743.83
141,968.75
61,950.00
110,477.50
58,078.13
788,218.20
Markup
85%
85%
65%
60%
85%
$
$
$
$
$
$
COS
224,726.39
76,739.86
37,545.45
69,048.44
31,393.58
439,453.73
GPM%
46%
46%
39%
38%
46%
44%
$
$
$
$
$
$
GM
191,017.43
65,228.89
24,404.55
41,429.06
26,684.54
348,764.47
Operations Plan
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Working Capital Management
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Cash Management
Inventory Management
Accounts Receivable
Accounts Payable
Operations Plan
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Working Capital Management
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Liquidity management
Inventory management
AR Policy
AP Policy
Operations Plan
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Annual Operating Expenses
Gas
$
4,515
Bookkeeping
$
5,040
Electricity
$
9,996
Accounting
$
1,500
Insurance
$
4,000
Legal
$
3,800
Rent
$
35,000
Site Security
$
348
Telephone
$
720
CCA
$
9,775
Office Expenses
$
6,000
Interest Expense
$
7,447
Stampede Wages
$
1,360
Marketing Expenses
$
106,810
Wages
$
72,264
$
269,935
Human Resources Plan
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Sadie – Owner Manager
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Will work full time (40 hrs)
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Ordering
Receiving
Hiring, training, and supervision
Nightly cash out (when required)
Bank deposits
Estimated annual salary $45,000
Human Resources Plan
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Sales associates
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Will work part time (20 hrs)
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Customer enquiry and assistance
Stocking goods
Taking payment and cashier duties (cash out)
Wage: $10/hr
Training: on-the-job
Financial Plan
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Highlights:
Year 1
Year 2
Year 3
Year 4
Year 5
Net income
35,555
156,624
351,491
360,382
369,764
Cash flows from
operations
47,741
171,614
362,576
372,937
382,903
Debt / Equity
1.4
0.9
0.5
0.3
0.2
Current ratio
2.7
3.1
3.7
4.9
6.1
Net Present Value
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Net Present Value $177,317
IRR 44%
Financial Plan
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How does Sadie’s stack up?
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Gross margin % (GM%)
Industry average
Year 1
Year 2
Year 3
Year 4
Year 5
47%
42%
41%
41%
41%
41%
Financial Plan
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How does Sadie’s stack up?
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Pre-tax profit %
Industry average
Year 1
Year 2
Year 3
Year 4
Year 5
5%
6%
17%
25%
25%
25%
Financial Plan
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How does Sadie’s stack up?
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Inventory turnover ratio
Industry average
Year 1
Year 2
Year 3
Year 4
Year 5
3.4
4
4
4
4
4
Financial Plan
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How does Sadie’s stack up?
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Current ratio
Industry average
Year 1
Year 2
Year 3
Year 4
Year 5
1.7
2.7
3.1
3.7
4.9
6.1
Financial Plan – Sensitivity
Analysis
Sources of Financing
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Capital (financing required)
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$124,000
Character
Collateral
Capacity
Conclusion
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Competitive advantage
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Low prices
Untapped market potential
Low labour and overhead costs
Moderate risk
Simple business model
Profitable
Q&A