Professional Documents
Culture Documents
[datebusinessplanissued]
BusinessPlanCopyNo._______
ConfidentialityAgreement Theundersignedreaderacknowledgesthattheinformationprovidedby[NAMEOF COMPANY]inthisbusinessplanisconfidential.Therefore, theundersigned reader agreesnottodiscloseanyofsuchinformationwithouttheexpresswrittenpermission of[NAMEOFCOMPANY]. Itisherebyacknowledgedbytheundersignedthattheinformationtobefurnishedin thisbusinessplanisinallrespectsconfidentialinnature(otherthansuchinformation whichisalreadyinthepublicdomainthroughothermeans)andthatanydisclosureor useofsamebytheundersignedmaycauseseriousharmordamageto[NAMEOF COMPANY]. Uponrequest,thisdocumentistobeimmediatelyreturnedto[NAMEOFCOMPANY].
TABLEOFCONTENTS
ConfidentialityAgreement.......................................................................................................................................1 TABLEOFCONTENTS............................................................................................................................................2 EXECUTIVESUMMARY..........................................................................................................................................1 I.COMPANYOBJECTIVES.....................................................................................................................................2 II.THECOMPANY....................................................................................................................................................2 III.DESCRIPTIONOFPRODUCTS&SERVICES............................................................................................4 IV.MARKETANALYSIS&MARKETINGPLAN.............................................................................................4 V.MANAGEMENT&ORGANIZATION............................................................................................................6 VI.FINANCIALPLAN..............................................................................................................................................7 APPENDIX A [supportdocuments]..................................................................................................................................15
CompanyBackground [forexistingcompanies] [NAMEOFCOMPANY](theCompany)isa [describe,e.g.acorporationincorporatedunderthelawsof theState/Provinceof___________] whichhasbeenengagedinthebusinessofdesigning,manufacturing, distributionandmarketingof[describetheclothinglines]inthe_________areaforthepast____years. [fornewcompanies:] [NAMEOFCOMPANY](theCompany)isintheprocessofbeingformed/createdasa [describe,e.g.a corporationincorporatedunderthelawsoftheState/Provinceof___________] ,forthepurposeofdesigning, manufacturing,distributionandmarketingof[describetheclothinglines]inthe_________area. TheCompanywillbemanagedbyateamof_____________individualswithatotalof_______years experienceinthefieldof________________,achieffinancialofficerwith_____yearsofaccountingand administrativeexperience,and_________[list]. Mission [capsuleversionofthecompanysvision/missionstatement] Objectives [brieflydescribetheshorttermandlongtermobjectivesofthecompanywithrespecttosales,profits, growth,etc] TheMarket [brieflyoutlinethemarketandavailablecustomerbaseinthearea,thenumberofcompetitorsalready servicingthatmarket,andthereason(s)whycustomerswillchooseyourbusinessoverthecompetitors]
I.
COMPANYOBJECTIVES
(NOTE:Thissectionsetsoutthecorporateobjectives,missionstatement,currentphaseofyourbusiness,andthe companysgoalsandobjectivesforfuturegrowth.)
1.1
Goals&Objectives
PastAchievements
TheCompanyseeksto[establishapresence/leverageitsposition]inthe___________apparelindustry bydesigning,manufacturingandmarketingitsprivatelabelproductlines,andbyprovidingcreative concepts together with theexpertise required todesign, manufacture, import and distribute apparel productstoincreasebrandrecognitionandsales. 1.4 KeystoSuccess
TheCompanyskeystosuccesscanbedefinedasfollows: ability toanticipate and respond quickly tochangesindirectionintheindustry and consumerbuyingtrends ability to meet deadlines and achieve milestones in the design, production and manufacturingprocess [other]
II. THECOMPANY
(NOTE: Use this section to describe the history, structure, purpose, operations, board of directors, outside consultantsandstrategicalliancesofthebusiness.Ifyouarestartingupanewcompany,describetheproposed structure,andsetoutthereasonsforstartingupthebusiness.)
2.1
History&Background
TheremainderoftheissuedandoutstandingcommonsharesareretainedbytheCompanyfor[future distribution/allocationundertheCompanysemployeestockoptionplan/etc]. The Company currently has outstanding shareholder loans in the aggregate sum of $___________________.Thefollowingtablesetsoutthedetailsoftheshareholderloans: NameofShareholder AmountofLoan DateofLoan BalanceOutstanding
2.2
Directors
The Companys Board of Directors, which [will be/is] made up of highly qualified business and industry professionals/experts, [will be a valuable asset to the Company and instrumental to its developmentbyassisting/assists]ourmanagementteaminmakingappropriatedecisionsandtaking themosteffectiveaction;however,they[willnotbe/arenot]responsibleformanagementdecisions.The followingpersons[willmakeupthe/arethecurrent]BoardofDirectorsoftheCompany: [listeachperson ontheBoard] NameofPerson business & educational background, past industry experience, other companies in which the personplayedakeyrole NameofPerson business & educational background, past industry experience, other companies in which the personplayedakeyrole 2.3 OutsideConsultants&ProfessionalAdvisors
Atpresent,nooutsideconsultantsorprofessionaladvisorshavebeenretained. [ifoutsideconsultantshave beenretained,listthemandtheircredentials:] TheCompanysoutsideconsultantsandprofessionaladvisors provide tremendous input and support to enable management to make wellinformed, creative and appropriatedecisions: 2.4 [accountant/cpa] [legalcounsel] [others]
StrategicAlliances
[Liststrategicallianceswhichassistthecompanyinprovidinghighqualityserviceandestablishing/maintaining itsreputation,andwhichgivethecompanyanadditionalcompetitiveedge]
III. DESCRIPTIONOFPRODUCTS&SERVICES
(NOTE:Inthissection,describeyourcurrentproductsandservices,theuniquefeatures,prices,etcthatyouoffer, currentandfutureR&Dplans,enhancements,productionanddistributionstrategies.Includedataonproprietary processes,patents,copyrights,etc,whichmakeyourproductsunique.)
3.1
Facilities&Operations
TheCompanyisinthebusinessofdesigning,manufacturing,distributionandmarketingof[describe theclothinglines]. DesignServices. TheCompanyworkswithitsclientstodefinetheclientsmarketingandsalesobjectives. Fromthisprocess,amerchandisedcollectionofapparelandaccessoriesisdesignedanddevelopedto meetthoseobjectives.Oncetheclienthasapprovedtheconcepts,designs,colors,fabrics,targetprices, productionvolumesandtimelines,thetechnicaldesignprocessbegins,anddetailedspecificationsheets arecreated for each product and style. The Company oversees theprototypedevelopment with the manufacturer. ProductLines.ProductlinesdesignedanddevelopedbytheCompanyincludethefollowing:[describe] 3.3 FuturePlans
IV. MARKETANALYSIS&MARKETINGPLAN
(NOTE:Usethissectiontoidentifyyourcurrentmarket(ifanexistingbusiness)and/oryourtargetmarket(for neworexpandingbusinesses),thegrowthpotentialofthemarket,marketshare,competitorsandtheirproducts andservices,factorswhichimpactyourbusiness(suchasseasonalsales,nichemarkets,etc).Thissectionwillalso bewhereyououtlineyourmarketingplan(sales,advertising,PR).)
4.1
IndustryAnalysis
[Marketresearchwillberequiredforthissection.Discusstheindustryingeneral,andspecificallyinyourarea, growthorlackofgrowth,currenttrends,etc] Recentmarketresearchshowsthatthedemandforbrandnameclothingandaccessorieshasincreased nationallyattherateof___%peryearoverthepast___years.Currentlynamebrandssell_________ times better than generic lines of the same products. This trend has resulted in fewer quality non branded products available to consumers at lower prices. The Company can take advantage of the opportunitytofillthisvoid,tocreatequalityprivatelabellinesatreasonableprices.
4.2
TargetMarket
[setoutdemographicsforyourtargetmarketagerange,gender,educationlevel,incomelevel,etctocreatea profileofyourtargetmarketsegments.] TheCompanystargetmarketscanbeseparatedintothefollowingsegments: ___________ apparel companies who are seeking to broaden their product range or createnewlinestocomplementtheirexistingproductlines. retaildistributionoutletswhoareseekingtocomplementtheirbrandnamelineswith privatelabeldesignerlines; [other]
___________Apparel Companies. TheCompanywilltargetthosecompanieswhoareseeking adesign consultant,andwhoarelookingtooutsourcetheconceptdevelopmentanddesignofnewapparellines tocomplementtheirexistingproducts. RetailDistributionOutlets.Thesecondtargetmarketistheretaildistributionoutletwhichwantstobring inprivatelabeldesignerlinesdesignedexclusivelyfortheirstores.Theseproductswillallowthemto build equity intheir brand names by selling privatelabellines which havehighgross margins and whichofferahigherlevelofqualitypricedlowerthannationallyadvertisedbrands. [otherdescribe] TheCompanysgoalistoattractclientswhichwillgenerateproductionordersofatleast$____________ peryear. 4.3 Competitors
[Discussthecompanyscompetitorsinthelocalmarket,howmuchofthemarketsharetheyhold,theirstrengths andweaknessesincomparisonwiththecompany] FreeLance Designers. These are often individuals who were previously on staff with brand name companies,whohaveleveragedtheirpastexperiencetoserviceanumberofclientsonafreelancebasis. The Companys advantage over these competitors isthat we offer our clients the ability to use one sourcefortheentireprocess,fromdesignthroughmanufacturing. Private Label Manufacturers. Many large retail distributors have inhouse private label development departments.ThereareopportunitiesfortheCompanytosupplyitemswhichthesemanufacturersare unabletosupply. 4.4 CompetitiveEdge
Dueto[theCompanys]experienceandexpertiseintheindustry,weareabletoforeseemarkettrends, givingustheabilitytobefirsttomarketwithnewandinnovativeproductstoaddressthosetrends.In addition,productlifecycleisshortintheclothingindustry,andnewproductsarequicklyimitated.The Companycanofferameansforclientstorespondquicklytoimitatorsandtonewinnovations. Eachofourtargetmarketsrecognizestheadvantagesofdesignandproductionoutsourcing.Itallows them to be adaptable and to respond quickly to industry swings, and to avoid the costs of extra
The Companys revenues will come from several streams: design consulting fees, royalty payments, manufacturingcommissions,anddirectsales. Designconsultingfeeswillbechargedattherateof$___________per______.Royaltyfeesrangefrom ___%to___%ofgrossproductsalesandarebasedon_______________. Manufacturingcommissionsareearnedbymanagingtheproductionofapparel,andrangefrom___%to ___%oftheFOBcost.Theamountofthefeesarebasedon_____________________. Productpricingwillbeasfollows:[setoutproductmarkupstructureandretailcosttoconsumer]
V. MANAGEMENT&ORGANIZATION
5.1 ManagementTeam
The strength of the Companys management team stems from the combined expertise in both managementandtechnicalareas.[ifappropriate:Thishasproducedoutstandingresultsoverthepast____ years. The leadership characteristics of the management team have resulted in the establishment of broad,flexiblegoalsdesignedtomeettheeverchangingdemandsofourquicklymovingmarketplace.] NameofPerson,President(includeprofessionaldesignations,degrees,etc) business & educational background, past industry experience, other companies in which the personplayedakeyrole [includeasectionforeachmemberoftheteamresumes/CVsofeachdirectorandmanagershouldbe includedwiththesupportingdocuments]
5.2
OrganizationalStructure
VI. FINANCIALPLAN
(NOTE: Usethissectiontodescribe(forexistingbusinesses)orproject(forneworexpandingbusinesses)your companyscapitalrequirements,projectedprofitsorlossesforthenext15years,theintendeduseofproceedsfrom yourfundraisingefforts,ifraisingmoneythroughinvestors.)
6.1
Sales/RevenueStreams Designconsultingfees Royaltyfees Manufacturingcommissions Sales TOTALSALES/REVENUES DirectCostofSales Designconsulting Manufacturing SUBTOTALDIRECTCOSTOFSALES 6.2 ImplementationMilestones
Other
8 TOTAL: $
9 6.3 StartUpRequirements STARTUPEXPENSES Legalcosts Consultants Rent Insurance Utilities Expensedequipment Marketingactivities Developmentcosts Other TotalStartUpExpenses StartUpAssetsRequired CashBalanceonStartingDate OtherCurrentAssets TotalCurrentAssets LongtermAssets TotalAssets TOTALREQUIREMENTS FUNDING Investment Investor1 Investor2 Other TotalInvestment CurrentLiabilities AccountsPayable CurrentBorrowing OtherCurrentLiabilities TotalCurrentLiabilities LongtermLiabilities TOTALLIABILITIES LOSSATSTARTUP TOTALCAPITAL TOTALCAPITALANDLIABILITIES
PROFORMAPROFIT&LOSS Sales&Revenues DirectCostofSales Other TOTALCOSTOFSALES GrossMargin GrossMargin% OPERATINGEXPENSES Payroll SalesandMarketingandOtherExpenses Depreciation LeasedEquipment Utilities Insurance Rent Research&Development TravelExpenses Commissions PayrollTaxes Other TotalOperatingExpenses ProfitbeforeInterestandTaxes InterestExpense TaxesIncurred NetProfit NetProfit/Sales
PROFORMACASHFLOW CASHRECEIVED CashfromOperations CashSales CashfromReceivables SubtotalCashfromOperations AdditionalCashReceived SalesTax,VAT,HST/GSTReceived NewCurrentBorrowing NewOtherLiabilities(interestfree) NewLongtermLiabilities SalesofOtherCurrentAssets SalesofLongtermAssets NewInvestmentReceived SubtotalCashReceived EXPENDITURES ExpendituresfromOperations CashSpending PaymentofAccountsPayable SubtotalSpentonOperations AdditionalCashSpent SalesTax,VAT,HST/GSTPaidOut PrincipalRepaymentofCurrentBorrowing OtherLiabilitiesPrincipalRepayment LongtermLiabilitiesPrincipalRepayment PurchaseOtherCurrentAssets PurchaseLongtermAssets Dividends SubtotalCashSpent NetCashFlow CASHBALANCE
PROFORMABALANCESHEET ASSETS CurrentAssets Cash AccountsReceivable PrepaidandOtherCurrentAssets TotalCurrentAssets LongtermAssets LongtermAssets AccumulatedDepreciation TotalLongtermAssets TOTALASSETS LIABILITIESANDCAPITAL CurrentLiabilities AccountsPayable CurrentBorrowing OtherCurrentLiabilities TotalCurrentLiabilities LongtermLiabilities TOTALLIABILITIES CAPITAL PaidinCapital RetainedEarnings Earnings TOTALCAPITAL TOTALLIABILITIESANDCAPITAL NETWORTH
13 6.7 BusinessRatios
RATIOANALYSIS Year1 Year2 Year3 IndustryProfile
Thefollowingtablecontainsimportantratiosforthe_________industry,asdeterminedbytheStandardIndustryClassification(SIC) code,_________.
SalesGrowth PercentofTotalAssets AccountsReceivable Inventory OtherCurrentAssets TotalCurrentAssets LongtermAssets TOTALASSETS CurrentLiabilities LongtermLiabilities TOTALLIABILITIES NETWORTH PercentofSales Sales GrossMargin Selling,General&AdministrativeExpenses AdvertisingExpenses ProfitBeforeInterestandTaxes MainRatios Current Quick TotalDebttoTotalAssets PreTaxReturnonNetWorth PreTaxReturnonAssets BusinessVitalityProfile SalesPerEmployee SurvivalRate AdditionalRatios NetProfitMargin ReturnonEquity ActivityRatios AccountsReceivableTurnover CollectionDays InventoryTurnover AccountsPayableTurnover PaymentDays TotalAssetTurnover DebtRatios DebttoNetWorth CurrentLiabilitiestoLiabilities LiquidityRatios NetWorkingCapital InterestCoverage AdditionalRatios AssetstoSales CurrentDebt/TotalAssets AcidTest Sales/NetWorth
14
RATIOANALYSIS DividendPayout Year1 Year2 Year3 IndustryProfile
15
APPENDIXA [supportdocuments]
(NOTE:Includesuchthingsasdirector/seniormanagementresumes,financialstatements,designs,copyofthe lease,pressclippings,budgets,marketresearch,allotherrelevantdocumentation)