You Have Do's: What Does It Mean To Have Uncollected Dog Waste On Your Lawn?

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  • 1. Executive Summary YOU HAVE DO‟S™ IS UNIQUE THERE IS NOTHING ELSE LIKE IT IN THE WORLD! IT DRAWS THE COMMUNITY INTO WORKING TOGETHER TO IDENTIFY OFFENDERS AND REDUCE THE INCIDENCE OF THE IRRESPONSIBLE LEAVING DOG WASTE BEHIND ON PRIVATE PROPERTIES, VERGES AND PUBLIC SPACES. Company Revjoy Pty Ltd (t/as‟You Have Do‟s™ ), is a start-up company that will design and market an innovative dog waste detection product. This business plan has been developed to present Revjoy Pty Ltd (You Have Do‟s™ )to prospective Lenders and assist in raising $of capital needed to begin production, packaging, marketing and launch of our unique product. Market Pet ownership is a large and expanding market. The most rapidly growing pet segment is ownership of dogs which represents % of the Australian market. Ownership of dogs is projected to increase from X to Yin the next five years, according to the Business Communications Company Pet Industry study. The reason for this tremendous growth in pet ownership is? According to a recent survey conducted by the American Animal Hospital Association, there were approximately ?millionAustralian households which owned pets. These households represent about ?% of all Australian households, and ?% of these households own more than one pet, according to an American Pet Product Manufacturers Association (APPMA) study. Of these pet owners and pets, there are approximately ? million dog owners who owned ? million dogs. Another recent study found that the average household with pets spent about $? on their pets. The average Australian household spends more on pet food than it does on wine, over-thecounter drugs, candy, or television sets. It spends more on veterinary services than it does on coffee, books, video rentals, or computer software. Need Recently dog owners have been criticized for leaving their dogs droppings in public places and on private property. Failure to retrieve dog waste is a matter of considerable concern due to public health risks, not to mention the inconvenience to the public. As a result, many communities have passed legislation requiring dog owners not only to clean up after their pet but also to carry a device for performing this task. (Provide reference/s) According to a Ralston Purina pet owner study, dog owners cite cleaning up after their dog as one of the primary challenges of owning a dog. Unfortunately, many dog owners are less inclined to clean up after their dog, especially when walking on streets and in public parks and reserves. The author can cite numerous episodes of dog droppings lying on the ground on parks and reserves within 5-10 feet of purpose provided dog waste disposal bins, which come with dog do disposal bags for owner use. Not only is the issue dog waste in public parks and reserves of concern, anecdotal evidence suggests every 2nd or 3rd residential property has dog waste left lying on the front yard or verge on a regular basis. To address the needs of home owners, local councils and their communities, a simple, effective means of identifying offending dogs and their owners is needed. Solution You Have Do‟s™ is a unique dog waste detection system, based on scent detecting sensors connected to video cameras, the owner‟s PC and the web through a Facebook and webpage link. The process is a simple process, You Have Do‟s™ detects the “scent” of dog waste when a dog stops to do its business and the activated sensor triggers the video camera to begin recording across a fixed field encompassing the property‟s front yard and verge. This film is downloaded to an App on the property owners PC and a message generated through sms or email to the owner as well as when the owner next turns on their PC. After examining evidence, the owner may, if they do not recognise the owner or the dog, load their video onto the „You Have Do‟s™ ‟ website where it is automatically forwarded to other popular sites like Facebook, Google, etc providing a „broad‟ geographic area where the offence occurred, which doesn‟t identify the property owner‟saddress, with a request to help identify the owner. Once identified, the property owner may forward the video and their complaint to the local council requesting action be taken against the owner identified in the video. Advantage You Have Do‟s™ is positioned to address this market need with an innovative, patented product and a management team with extensive product design and marketing experience. We have spent ample time on the
  • 2. development and research of You Have Do‟s™ to ensure that it will satisfy the market demand to identify and minimise, if not eliminate the visual, olfactory and environmental littering occurring through inconsiderate dog owner who fail to be responsible community members and dog owners. Financials Research and development work to date has been self-funded by the principal (J and HK Joyce Pty Ltd). Based on detailed financial projections, if the company receives sufficient funding to launch You Have Do‟s™ , it will operate profitably within the first year with a net profit. Need actual charts? We recommend using Live Plan as the easiest way to create graphs for your own business plan.
  • 3. 1.1 Objectives Develop a sustainable pet product business that designs, manufactures, and markets innovative pet products. Successfully bring You Have Do‟s™ to market by?Year 1. Achieve sales volume targets: Year 1: 25,000 units (1 sensor, 1 day/night VHS camera, 1 You Have Do‟s™ Installation Programme and App) Year 2: 50,000 units, (1 sensor, 1 day/night VHS camera,1 You Have Do‟s™ Installation Programme and App) Year 3: 100,000 units, (1 sensor, 1 day/night VHS camera, 1 You Have Do‟s™ Installation Programme and App) Reach break-even point within 12 months. 1.2 Mission Revjoy Pty Ltd‟smission is to help property owners enjoy their properties, public parks and reserves without having to accept inconsiderate dog owners leaving their dogs waste behind, by developing innovative products to address local council and property owner‟s needs. 1.3 Keys to Success Quality Products Product sales are the primary income source for Revjoy Pty Ltd. To achieve sales goals, innovative products based on world-class industrial design, engineering, and manufacturing are essential. Strategic Niche Marketing Revjoy Pty Ltd will market a small number of innovative products. Consumers in our targeted niche markets must be educated about their benefits in order for them to gain market acceptance and penetration. The marketing strategy must reflect this reality. Strategic Partnerships Revjoy Pty Ltd will rely on assistance from strategic partners to manufacture, deliver, and market products. The establishment and maintenance of these partnerships is crucial. Read more: http://www.bplans.com/pet_products_manufacturer_business_plan/executive_summary_fc.php#ixzz2TPUjO1TL
  • 4. Company Summary Revjoy Pty Ltd develops, manufactures, and markets pet products. Our mission is to develop products which help people enjoy their front yards, local parks and reserves without the mess of dog waste littering the ground in places where they live and play. We combine intensive market research with world-class industrial design and engineering to create innovative products that address identified needs in the pet product market. Currently, we are developing a product that makes it easier for property owners and local councils to detect dog waste being left illegally by inconsiderate dog owners.You Have Do‟s™ , is a dog waste detection and recording device that provides clear evidence of a dog going to the toilet in the front yard, vergeor public park or reserve, and whether the owner cleans up after their dog, or walks away and leaves the dog waste behind.You Have Do‟s™ addresses the frustrations of the majority of property owners and councils,over the attitudes of inconsiderate dog owners, with an innovative (patent pending) solution to this decidedly unpleasant sight and smell. You Have Do‟s™ automatically detects, records, downloads and posts on the internet and electronic media for identification, errant dog owners who choose to flaunt the local council laws and detract from an owners enjoyment of their own property, in a capability not available in the market today. 2.1 Sustainable Competitive Advantage Form and Function The pet product market is filled with crudely designed and manufactured products. The form and function of our products sets them apart from the competition. Our focus on industrial design and engineering results in products that look better and work better than their competitors and are, therefore, more likely to be purchased. Marketing We will work with our advertising and marketing partners to develop clear marketing strategies for our products. This effort will set our products apart from potential competitors who choose to enter the market with their own version of our unique product. A study of the availability of similar systems worldwide has shown there are no systems in production or under patent, which function as You Have Do‟s™ does. Our competitors seem content to provide the means to clean up dog waste after the event and not in taking pro-active steps to identify, prosecute and remove the illegal action of failing to pick up dog waste and place it in an approved bin or in the dog owner‟s own rubbish bin at home. Operations Revjoy Pty Ltd operations strategy leverages limited resources by utilizing external resources for product development assistance, manufacturing, fulfilment, and marketing. With this operations strategy, we can quickly and efficiently develop new products, initiate manufacturing activities and distribute our product with minimal upfront and fixed costs, resulting in significant profits.
  • 5. 2.2 Start-up Summary Revjoy Pty Ltd total start-up costs include expenses incurred before the start of the plan include legal counsel (patent, trademark, and business), consultants (marketing, advertising), and research and development. Assets required at the start of the plan include manufacturing tooling and initial product inventory. Additional funds are required to launch a marketing campaign, finance daily/monthly operations, and have cash available for contingencies. A portion of the start-up costs has been financed by direct owner investment. The remainder of the start-up capital required will be provided by a combination of investment, SBA guaranteed loans, and lines of credit. Need actual charts? We recommend using Live Plan as the easiest way to create graphs for your own business plan. Create your own business plan » Start-up Requirements Start-up Expenses Legal - patent, trademark, and counsel $6,000 Viability Study $7,500 Consultants – marketing $6,500
  • 6. Corporate/Product Identity $5,000 Website Development $8,000 Research and Development $2,500 Total Start-up Expenses Start-up Assets $35,500 $25,000 Cash Required $250,000 Start-up Inventory $10,000 Other Current Assets $15,000 Long-term Assets $5,000 Total Assets $115,000 Total Requirements $135,000 Need real financials? We recommend using Live Plan as the easiest way to create automatic financials for your own business plan. Create your own business plan »
  • 7. Start-up Funding Start-up Expenses to Fund $20,000 Start-up Assets to Fund $115,000 Total Funding Required $135,000 Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised $15,000 $100,000 $0 Cash Balance on Starting Date $100,000 Total Assets $115,000 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities $0 $85,000 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0
  • 8. Total Liabilities $85,000 Capital Planned Investment Owners Investment $10,000 Needed Investment $25,000 Additional Investment Requirement $15,000 Total Planned Investment $50,000 Loss at Start-up (Start-up Expenses) Total Capital ($20,000) $30,000 Total Capital and Liabilities $115,000 Total Funding $135,000 44 2.3 Company Ownership Revjoy Pty Ltd is being founded by J and H.K. Joyce Pty Ltd. Jonathan and Helen Joyce, devoted dog owners, have over ten years of identifying needs in the local markets and conceiving innovative product and service designs ready to be brought into development, production and marketing. As an experienced General Manager, Jonathan possesses the skills and experience to guide product development successfully through to completion utilising the skills and abilities of identified experts and component providers. Likewise, Helen brings excellent business administration skills allowing for an office and business environment run to the highest level of effectiveness and simplicity. Revjoy Pty Ltd will be a private company established in Perth, Western Australia with „You Have Do‟s™ ‟ as its trading and business name.
  • 9. Read more: http://www.bplans.com/pet_products_manufacturer_business_plan/company_summary_fc.php#ixzz2TPVBmWk A Products You Have Do‟s™ is an innovative (patent pending) dog waste detection, recording and identification device marketed to property owners and local councils. While many products are available to assist owners in cleaning up after their dogs, they are at best cumbersome and at worst ineffective – basically, a plastic bag with ties as handles. There are no products available to detect, identify and prevent future dog waste from being left on property owner‟s front yards and verges, or on local council parks and reserves. Prevention is, more often than not, the best solution to many problems. Identifying, naming, educating or prosecuting offending dog owners offers a far more effective means of controlling the issue of uncollected dog waste than other forms of penalty and/or dog waste collection. You Have Do‟s™ offers the following benefits: Ease of use – simple automatic operation. Compact – its size makes it inconspicuous to casual observation. Accurate – records date and time and provides clear video evidence. Environmentally friendly – reduces incidence of dog waste being left to litter private properties, verges, public parks and reserves. 3.1 Competitive Comparison There are no known competitors available with which,„You Have Do‟s™ ‟ can be compared. 3.2 Product Description You Have Do‟s™ is unique. You Have Do‟s™ is designed so there is 24 hour coverage of an owner‟s front yard and verge informing the property owner when dog waste is deposited allowing the owner to verify which dog and owner are responsible. An automated system, You Have Do‟s™ activates on the scent of dog waste being passed by a dog and records the act from beginning to end enabling the property owner opportunity to view the video and determine who the dog owner might be. If unsuccessful, the video is uploaded to a website and listed under the suburb only, requesting assistance to identify the dog and owner through other members and system owners in the suburb. The property owner will be able to crop the mage to the offending dog and owner only, removing identifying property features in the process.
  • 10. 3.3 Sourcing In accordance with the operations strategy, product manufacturing and fulfillment will be outsourced. Price quotes and invoicing terms have been obtained from these vendors. This information has been incorporated into the financial projections where appropriate. Read more: http://www.bplans.com/pet_products_manufacturer_business_plan/products_fc.php#ixzz2TPVeRmiT 3.4 Market Analysis Summary The primary market for You Have Do‟s™ isresidential property owners and local councils world-wide. A study sponsored by the Pet Food Institute (PFI) confirmed that the number of pet dogs and cats in the U.S. has reached an all-time high. In 2000, there were 59 million pet dogs. The percentage of households owning dogs remained constant at approximately 37%. PFI began tracking the population of pet dogs and cats in the U.S. in 1981. Since that time, the number of pet dogs has grown by more than 5 million. Spending on pet products is also increasing, from $5.2 billion in 2000 to a projected $6.9 billion in 2005, according to the Business Communications Company Pet Industry study. 4.1 Market Segmentation??????? Use data to identify suburbs/towns/locations where dog ownership is highest in Australia, USA, and Europe. The pet product market is most easily segmented by age, as spending on pet products varies significantly with age. Older householders are the biggest spenders on pets. Married couples without children at home, most of them empty nesters, spend 30 percent more than the average household on pets. The best customers of the pet industry (the households that spend the most on pet products and services) are married couples with adult children at home. These "crowded" nesters spend 45 percent more than the average household on pets. Those aged 55 to 64 spend 26 percent more than average. Spending on pets is below average among householders aged 65 or older and also among those under age 35. Married couples with preschoolers spend less than the average household on pets, as do single parents and people who live alone. The following tables provide a demographic profile of dog owners and growth projections for this market. All dogs have to „go‟. Dog waste is a natural part of dog ownership and one area of dog ownership which causes greatest conflict between dog owners, local residents and the community. Many property owners express frustration and anger at the incidence of dog waste being left on their property‟s and verges, quite often anonymously during the night. Leaving dog waste behind by dog owners walking their dogs is more common than it should be and exhibits a disregard for the rights of others (including dog owners who collect their dogs waste) which can only be changed by identification, education and enforcement of penalties if need be. Unwanted dog waste is not an issue which resides within one demographic or community, it crosses all social, economic and dog breed boundaries and presents the same issues and concerns to property owners and councils in how to deal with eliminating the offensive problem. Demographic Profile of Dog Owners: Convert to Australia, USA and Europe. Gender % Marital Status % Region % Male 34 Married 62 Northeast 15 Female 66 Unmarried couple 3 Midwest 26
  • 11. Single, never married 17 South 37 West 23 Education % 8th grade or less 2 Some high school 5 High school graduate 33 Age % Divorced/separated 9 18 - 24 9 Widowed 6 25 - 29 8 Refused 3 30 - 34 11 35 - 39 12 Children Under 40 - 49 26 18 in Household 50 - 64 20 Yes 39 Some college 27 65 or older 13 No 60 College graduate 23 Refused 1 Refused 1 Graduate study 8 Refused 2 % Race % Total Family Income % White 85 Less than $20,000 10 Use the Internet % Black 6 $20,000 - $34,999 14 Yes 55 Asian 1 $35,000 - $49,999 21 No 43 Hispanic 5 $50,000 - $74,999 19 Refused 2 Other 1 $75,000 - $99,999 8 Refused 2 $100,000 + 7 Internet Usage % Refused 21 Once a day or more 62 Hispanic Origin % Mean (000's_ 53.4 At least once per week 28 Yes 7 Median (000's) 46.6 At least once per month 7 No 91 Less than once per month 3 Refused 2 Varies too much to say 0 Don't know/Refused 0 Market Analysis Year 1 Potential Customers 0% Year 3 Year 4 Year 5 Growth Age 34 and under Year 2 CAGR 6,581,339 6,583,569 6,585,066 6,637,228 6,726,652 0.55%
  • 12. Age 35 - 44 0% 6,853,963 6,768,024 6,684,963 6,561,209 6,419,631 -1.62% Age 45 - 54 0% 7,026,073 7,177,077 7,318,521 7,432,621 7,518,721 1.71% Age 55 - 64 0% 4,992,798 5,199,186 5,406,877 5,616,124 5,776,934 3.71% Age 65 and older 0% 6,847,697 6,917,743 6,999,165 7,101,496 7,266,916 1.50% Total 1.07% 32,301,870 32,645,598 32,994,591 33,348,678 33,708,854 1.07% Need real financials? We recommend using Live Plan as the easiest way to create automatic financials for your own business plan. Create your own business plan » Market Analysis Year 1 Potential Customers Year 2 Year 3 Year 4 Year 5 Growth CAGR Age 34 and under 0% 6,581,339 6,583,569 6,585,066 6,637,228 6,726,652 0.55% Age 35 - 44 0% 6,853,963 6,768,024 6,684,963 6,561,209 6,419,631 -1.62% Age 45 - 54 0% 7,026,073 7,177,077 7,318,521 7,432,621 7,518,721 1.71% Age 55 - 64 0% 4,992,798 5,199,186 5,406,877 5,616,124 5,776,934 3.71% Age 65 and older 0% 6,847,697 6,917,743 6,999,165 7,101,496 7,266,916 1.50% 1.07% 32,301,870 32,645,598 32,994,591 33,348,678 33,708,854 1.07% Total Need real financials? We recommend using Live Plan as the easiest way to create automatic financials for your own business plan. Create your own business plan »
  • 13. 4.2 Target Market Segment Strategy While You Have Do‟s™ is affordable and useful for all property owners, our focus will be on who? This group represents the largest and most affluent segment of the residential property in general and of dog owners in particular. This focus will primarily manifest itself in the type of marketing and advertising techniques we employ. While You Have Do‟s™ is affordable and useful for all property owners and local councils, our focus will be on suburbs with high density residential properties with yards and high dog ownership levels. This group represents the largest and most affected segment of the pet product market in general and of dog owners in particular. In terms of affordability this same group are most likely to afford the purchase and installation of You Have Do‟s™ .This focus will primarily manifest itself in the type of marketing and advertising techniques we employ. Market Trends Market Trends The demand for better control and regulation of dog waste being left on private property and in public places has been growing rapidly with voluble protests and calls for action driving the demand for regulators to act. As aging baby boomers are filling their empty nests with pets, and the number of households with children from 5 to 15, the core pet market, keeps climbing. A large category of current pet owners can be considered "pet enthusiasts," as characterized by the leading wholesaler PetSmart. PetSmart CEO Philip Francis calls pets "an affordable luxury," sales of which have not been dented by weakening consumer confidence. These consumers are "passionately committed to their pets" and regard their pet like "a family member." The strong commitment of these owners for their pets is shown by some of the 1998 statistics provided by the American Pet Association. These statistics show how millions of owners treat their pets much like their own children or other family members by buying them gifts, celebrating their birthdays or displaying their pictures. This commitment is especially strong for dog owners. More than half of all U.S. dog owners say they are more attached to their pets than to at least one other human being, and from 4-13 million say they are as attached to their dogs as they are to their best friend (13 million), children (6 million), or spouse (4 million). As the trend for pet ownership, specifically dogs, continues to increase, the problem of dog waste will continue to increase at a similar rate. Even with new improved methods of collecting dog waste, will the problem of dog owners failing to collect their dogs waste and take it with them to be disposed of appropriately cease? Probably not. It seems the issue lies with the owner‟s attitude to responsible dog ownership and community expectations, then it does to having the best dog waste collection product available. Aging baby boomers are filling their empty nests with pets, while the number of households with children from 5 to 15, the core pet market, keeps climbing. A large category of current pet owners can be considered "pet enthusiasts," as characterized by the leading wholesaler PetSmart. PetSmart CEO Philip Francis calls pets "an affordable luxury," sales of which have not been dented by weakening consumer confidence. These consumers are "passionately committed to their pets" and regard their pet like "a family member." The strong commitment of these owners for their pets is shown by some of the 1998 statistics provided by the American Pet Association. These statistics show how millions of owners treat their pets much like their own children or other family members by buying them gifts, celebrating their birthdays or displaying their pictures. This commitment is especially strong for dog owners. More than half of all U.S. dog owners say they are more attached to their pets than to at least one other human being, and from 4-13 million say they are as attached to their dogs as they are to their best friend (13 million), children (6 million), or spouse (4 million). If this is the case, why is it so many dog owners continue to leave their dog‟s waste on the front lawns and verges of residential properties and on the many parks and reserves to found in most suburbs these days? Market Needs Market Needs Dog owners consider cleaning up after their dog a major challenge. Unfortunately, currently available products offer dog owners little help as they are generally cumbersome to carry, crudely designed and manufactured,
  • 14. difficult to operate, and difficult to keep clean. Property owners are left with the problem of owners leaving their dog‟s waste behind for the home owner to clean up. You Have Do‟s™ addresses the residential property owner and local community‟s concerns about the increasing amounts of dog waste left on their front yards, verges and in local parks and reserves by irresponsible dog owners who fail to pick up and take with them their dogs waste. Dog owners consider cleaning up after their dog a major challenge. Availability of free dog waste specific collection bags and waste disposal bins in most local suburban parks are sufficient to be easily accessible to dog owners, who can take a supply of bags with them for use on walks, depositing filled bags at the nearest park/reserve council waste bin or their home rubbish bin Unfortunately, currently available dog waste products offer dog owners little help as they are generally cumbersome to carry, crudely designed and manufactured, and difficult to use. Property owners will welcome a product that canaddress the problem of errant dog owners being held fully responsible for their dog‟s waste in public locations. Market Growth Market Growth Demographic trends are positive for the pet industry. With many older couples turning to pets for companionship, and with the older population expanding with baby boomers, spending on pets is likely to rise. According to the U.S. Census, in 2000, baby boomers accounted for 35% of the dog owning population. By 2008 they will account for 40% of the dog owning population. (Get current USA, Europe and Australian figures) Demographic trends are positive for the pet industry. With many older couples turning to dogs for companionship, and with the older population expanding with baby boomers, spending on purchasing dogs as petsis likely to rise. According to the U.S. Census, in 2000, baby boomers accounted for 35% of the dog owning population. By 2008 they will account for 40% of the dog owning population.(Australian and European census data locate) Industry Participants(Australian and European figures) While the superstores and discount stores account for over 50% of U.S. pet supply sales volume, many other retailers sell pet supplies. Among these other retailers are supermarkets, discount stores, hardware stores, other mass merchandisers, specialty pet stores, direct mail houses, Internet retailers, and veterinarians. Distribution Patterns The hardware retail supply, television home-ware marketing channels and online internet stores which provide the best means of distribution to purchasers. There are hundreds of pet product distributors with both regional and national coverage operating in these areas. In addition, catalog sales and Internet sales comprise a significant portion of the market. Buying)Patterns(Update) Presentation of one‟s home is big business these days, with a growing renovation and landscaping industry in most first world economies. Property owners take pride in not just their homes inside features, but also in external presentation, including gardens and often, front verges. Read more: http://www.bplans.com/pet_products_manufacturer_business_plan/market_analysis_summary_fc.php#ixzz2TPW0Bs4o Market Analysis Summary The primary market for Revjoy Pty Ltd is residential property owners followed by local councils and schools. A study sponsored by the Pet Food Institute (PFI) confirmed that the number of pet dogs in the U.S. has reached an all-time high. In 2000, there were 59 million pet dogs. The percentage of households owning dogs remained constant at approximately 37%. PFI began tracking the population of pet dogs and cats in the U.S. in 1981. Since that time, the number of pet dogs has grown by more than 5 million. 4.1 Market Segmentation 4.2 Target Market Segment Strategy
  • 15. 4.3 Industry Analysis (Get Updated figures) According to the APPMA, the market for pet products and services was $23 billion in 1998, $27 billion in 2000, and $29 billion in 2001. By 2005, the industry is expected to grow even more to $33.5 billion, according to a study by Business Communications Company on The Pet Industry. Significantly, the most rapidly growing market segment is pet supplies, which represents 5.5% of the market. These supplies include dog and cat toys, collars and leashes, pet waste clean-up products, cages and habitats, and books. The pet product market, while massive, is highly fragmented at both the retail and wholesale level. This fragmentation provides an opportunity for new companies and products to compete and thrive. 4.3 Industry Analysis According to the Australian Patent Office there is no system in the world which detects, records, identifies and places on public view for identification anywhere in the world.You Have Do‟s™ , is patented world-wide and stands with clear advantage to claim market pre-eminence in the major first world economies. Industry Participants While the superstores and discount stores account for over 50% of U.S. pet supply sales volume, many other retailers sell pet supplies. Among these other retailers are supermarkets, discount stores, other mass merchandisers, specialty pet stores, direct mail houses, Internet retailers, and veterinarians. In addition to being fragmented, pet product retailers cater to different demographics. Nationwide outlets such as Three Dog Bakery tend to carry "high end" products while supermarket-style stores like Pet Supplies Plus tend to carry lower price products. This differentiation makes it difficult for a single manufacturer to dominate the market and leaves niche markets open. Distribution Patterns The pet product supply chain is as fragmented as the retail market. There are hundreds of pet product distributors with both regional and national coverage. While many pet stores buy primarily from these distributors, others buy directly from manufacturers. In addition, catalog sales and Internet sales comprise a significant portion of the market. Buying Patterns Due to the healthy expanding economy of the 1990s, American pet owners have been able to "lavish unprecedented spending on their pets." Since these owners often consider companion animals such as dogs and cats as members of their family, companies have capitalized on this emotional bond. For instance, Funda Alp, a spokesperson for the American Pet Products Association stated that "love does translate into dollars." A study by Sloan Trends & Solutions in 1998 found that the average household with pets spent about $350 on their pets in 1998. These expenditures are expected to grow at an average rate of 4.4%/year during the next five year period. Read more: http://www.bplans.com/pet_products_manufacturer_business_plan/market_analysis_summary_fc.php#ixzz2TPW0Bs4o Strategy and Implementation You Have Do‟s™ ™ is positioned very carefully: this is an innovative product that addresses a major complaint of dog-owners better than any of the competitors. Our marketing strategy is primarily based on making this information available to our target market, visually via point-of-purchase displays and graphically via creative ad copy and graphics. This basic strategy should allow this product to stand out in a field of competitors that appear to employ no clear marketing strategy. 6.1 Value Proposition The value proposition for You Have Do‟s™ lies with the property owner and local councils. With You Have Do‟s™ ™, the property owner is giving the dog an incentive to clean up after their dog. Because dog owners identify this task as one of the most challenging aspects of owning a dog and because the target market (property owners and local councils) has substantial disposable income, they will be willing to pay a premium price to acquire this superior product.
  • 16. 6.2 Competitive Advantage None of the dog waste clean-up products currently available can do what You Have Do‟s™ does. You Have Do‟s™ fills a need as it provides an aesthetically pleasing, easily operated device, which eliminates dog waste littering by the owner, through the use of identification, publication, education and possible prosecution through the property owner, wider community and local council working together. The competitive advantages for You Have Do‟s™ are function and form. Quite simply, You Have Do‟s™ works due to the focus placed on detection, identification, education prosecution. There are no other competitors who offer this type or quality of product anywhere in the world. 6.3 Marketing Strategy The primary goal of our sales and marketing strategy is to simply and succinctly explain our product to our target market. An explanation of this innovative product is best accomplished by means of a visual demonstration. Focus group research within the target market shows that, while there is a significant amount of interest in this product based on a verbal description, this interest is greatly magnified by a visual demonstration. Retail product demonstrations will be accomplished with point-of-purchase displays that allow customers to try the product for themselves. In addition, the product itself is packaged in such a way that consumers can operate it and see for themselves how it works. The product website will also be used to visually demonstrate the product. Presentations on free to air and cable television home shopping channels are also being considered. These alternatives provide an ideal forum for demonstrating the product and reach a wide audience. Distribution through major hardware chains on a worldwide basis is also being considered as a suitable path to follow in order to generate maximum market penetration. Creative application of print media will provide a product description for catalog and ad copy. We will be working with our advertising and marketing partner to develop ads for selected magazines. This effort alone should be sufficient to set this product apart from a field of competitors that appears to lack any type of marketing strategy. We are also planning a series of press releases timed to coincide with the product launch. 6.3.1 Distribution Patterns Product distribution will be accomplished by home and garden product distributors and the order fulfillment provider. The primary distribution channel for home-ware pet products is through regional and national hardware product distributors. We are actively pursuing agreements with regional distributors and will be attending major industry trade shows to develop contacts with distributors in other regions of the country. The secondary distribution channel is through direct retail sales, home shopping channels, specialty catalogue sales, and website sales. We are also actively pursuing agreements with retailers and specialty catalogs. Once these agreements are in place, our order fulfillment provider will fill these orders. 6.3.2 Positioning Statement For affluent, suburban, middle-aged baby boomers and young couples with growing families who consider cleaning up after someone else‟s dog an offensive undignified task, You Have Do‟s™ provides a much-needed solution. You Have Do‟s™ addresses this need because it provides an alternate means of changing the attitudes and actions of irresponsible dog owners, who leave their dog‟s waste on other people‟s property without bothering to collect and dispose of the dog waste as required by law and common courtesy.
  • 17. 6.3.3 Pricing Strategy The manufacturers suggested retail price (MSRP) for You Have Do‟s™ is $. The MSRP for the extension mounting pole accessory is ?togain height over bushes/trees in front yard. These prices are based on a skimming strategy, which sets the initial price high to establish high perceived value. High perceived value is important, as the target market has substantial disposable income and is willing to pay for style and functionality. These MSRP's are based on a careful survey of competitive products prices. While these MSRP's are high for this product category, they are not the highest nor is this the only high-priced product in its category. There are several competitive products with similar prices. Although the MSRP is intentionally set high, based on manufacturing costs for the scoop and the bags, these retail prices can be dropped substantially and still leave a reasonable margin. This allows for price flexibility and pricing strategy modification based on the response of the market. 6.4 Sales Strategy Our initial sales strategy will focus on national retail sales, free to air Home Shopping channels, and e-commerce. This initial strategy is intended to control growth and keep sales in line with projections. As sales increase and more working capital becomes available we will begin to focus on national retail sales. Although 'big-box' retailers (e.g., Bunnings, Masters, Mitre 10, Timber and Hardware, etc) are key targets, most products enter these retailers via distributors. To get our product into these stores we will pursue agreements with distributors that already have relationships with these stores. 6.4.1 Revenue Streams You Have Do‟s™ ™ will only need to purchase You Have Do‟s™ ™ once, they will need to continue to purchase liner bags to continue to using the product. By year three, bag sales are nearly equal to scoop sales. Eventually, bag sales will eclipse scoop sales. This will allow for more price flexibility as the scoop could then be sold primarily as a means of generating sales of the consumable. While there are some disadvantages to products that require replacement components (e.g., replacement components may not be available when required, retailers may be sold out) the advantages are clear. In order to minimize customer concerns about replacement bags, the primary focus of the website will be to provide online purchasing of replacement bags. 6.4.2 Sales Forecast The sales forecast includes sales of You Have Do‟s™ to wholesalers/distributors (75%) and retailers (25%). To keep the sales projections conservative, direct sales to customers via the website were not included in this forecast.
  • 18. Need actual charts? We recommend using Live Plan as the easiest way to create graphs for your own business plan. Create your own business plan » Need actual charts? We recommend using Live Plan as the easiest way to create graphs for your own business plan. Create your own business plan »
  • 19. Sales Forecast Year 1 Year 2 Year 3 $299,425 $755,200 $1,401,250 $99,225 $527,513 $1,315,575 $398,650 $1,282,713 $2,716,825 Year 1 Year 2 Year 3 $121,800 $307,200 $570,000 $44,100 $234,450 $584,700 $165,900 $541,650 $1,154,700 Sales Scoops Bags Total Sales Direct Cost of Sales Scoops Bags Subtotal Direct Cost of Sales Need real financials? We recommend using Live Plan as the easiest way to create automatic financials for your own business plan. Create your own business plan » 6.5 Milestones The following chart and table shows key milestones for start up and the first quarter of operations:
  • 20. Need actual charts? We recommend using Live Plan as the easiest way to create graphs for your own business plan. Create your own business plan » Milestones Milestone Start Date End Date Budget Manager Department Focus Group Research 6/1/2003 8/1/2003 $0 KBC Engineering Final Design Refinement 8/1/2003 9/1/2003 $0 KBC Engineering Pre-production 9/1/2003 12/1/2003 $0 KBC Engineering 12/1/2003 1/1/2004 $0 KBC Engineering 1/1/2004 2/1/2004 $15,000 KBC Purchasing 2/1/2004 4/1/2004 $60,000 KBC Purchasing Release Design for Production Purchase Tooling and Inventory Product Launch Marketing
  • 21. Campaign Product Sales Launch 4/1/2004 Totals 6/1/2004 $0 KBC Purchasing $75,000 Read more: http://www.bplans.com/pet_products_manufacturer_business_plan/strategy_and_implementation_fc.php#ixzz2TPWhU66f Management and Organization Summary To remain consistent with our overall strategy of minimizing fixed costs, Revjoy Pty Ltd does not intend to develop a large employee or operations infrastructure. Some of the product design activities and all of the manufacturing and distribution activities will be outsourced. This dramatically reduces the in-house requirements for manpower. Revjoy Pty Ltd is a pet product innovator and marketing company based on a lean and agile operations strategy. We will leverage limited resources by utilizing external resources for product development assistance, manufacturing, fulfillment, and marketing. We may also finance accounts receivable with a factor in order to minimize administrative work and guarantee a positive cash flow. With this operations strategy, we can quickly and efficiently develop new products, initiate manufacturing activities, and distribute our product with minimal upfront and fixed costs. This strategy allows us to remain lean, by leveraging the expertise that each external resource possesses and agile with respect to changing customer needs. 7.1 Management Team In keeping with our operations strategy, we have assembled a team of consultants to provide expertise and direction in key areas. We have also assembled an Advisory Board consisting of key individuals that will provide expert advice to our company when making strategic decisions. This board consists of individuals with particular expertise in engineering and new product development, entrepreneurship, and small business planning. Jonathan Joyce: MrJoyce has a corporate management, and service delivery background along with a special interest in new product development and entrepreneurship. He has been engaged in conceiving innovative product and process design for the past twenty six years, working on projects in the medical, commercial appliance, automobile, furniture, and consumer product industry. Mr Joyce brings extensive project management experience which has increased his ability to manage people, budgets, and timelines. Prior to this experience, Mr. Joyce spent fourteen years in the Anglican Church. He holds a Bachelor of Arts (Theology) from Murdoch University, Murdoch – Western Australia. Rebecca Wall: Dee O’Neill: Chris Lewis:
  • 22. 7.2 Personnel Plan Revjoy Pty Ltd has adopted a relatively flat organizational structure. Mr. Joyce will serve primarily as the general manager, providing direction and coordination for outside resources. Since development of the initial product line is nearly complete, Mrs.Wall and Ms O‟Neill will focus on marketing and advertising strategy, coordinate the necessary outside resources to promote the product and handle administrative tasks. Prior to the product launch we will need one individual devoted to sales activities (Mrs Wall) and another individual (Mr Lewis) responsible for the continued monitoring of our production activities, coordinating the required manufacturing resources and monitoring fulfillment of orders. Personnel Plan Year 1 Year 2 Year 3 General Manager $0 $0 $0 Sales/Administration $0 $0 $0 Marketing $0 $0 $0 Operations/Technical Development $0 $0 $0 Total People 4 4 4 Total Payroll $0 $0 $0 Read more: http://www.bplans.com/pet_products_manufacturer_business_plan/management_and_organization_summary_fc.php#ixzz2T PX02tIp
  • 23. Financial Plan Product sales generate the primary revenue stream for Revjoy Pty Ltd. As such, the financial projections are closely tied to the sales forecast. While we believe that the sales forecast presented is conservative and reflects a clear understanding of the market, we have considered scenarios in which sales lag or lead our projections. Lagging Sales Rather than purchasing inventory in large lots we will purchase inventory approximately every three months on an as-needed basis. If actual sales volumes are less than projected, we can respond by reducing inventory purchases to reduce variable costs and maintain a positive cash balance. Our operations strategy is also an asset in this scenario as our fixed costs are very low with respect to our variable costs. If necessary we can further reduce our fixed costs by reducing personnel, as payroll constitutes the majority of our fixed costs. Leading Sales If actual sales volumes exceed our projections we will respond by increasing inventory purchases. Our suppliers capacity greatly exceeds the estimates in our current sales projections. While we should be able to finance the increased inventory purchases with revenue generated from the increased sales, this scenario may require additional infusions of cash. We may also consider financing accounts receivable with a factor to make cash for inventory purchases readily available. The following subtopics highlight the financial plan for Revjoy Pty Ltd. 8.1 Assumptions The table below presents the assumptions used in the financial calculations of this business plan. General Assumptions Year 1 Year 2 Year 3 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 6.00% 6.00% Tax Rate 30.00% 30.00% 30.00% Unit Sales –You Have Poo‟s 20,300 3,000 20,300 Unit Sales - 1 Box 29,400 5,500 29,400 Plan Month
  • 24. 8.2 Break-even Analysis Revjoy Pty Ltd revenues are generated from unit sales of You Have Do‟s™ (a one-time expense) and additional sales of extension poles to raise height of unit above obstructions. The monthly break-even volume was determined using the sales forecast as a guide, and based on estimates for fixed costs and average revenue for You Have Do‟s™ ™ and the replacement liner bags. We anticipate breaking even within the first year of operation. Notes: One box of scent detector, video camera, cabling and programme CD constitute one unit. Average Per-Unit Revenue assumes only wholesale sales of one You Have Do‟s system.. Direct sales to retailers and catalogs will increase average per-unit revenue.
  • 25. Break-even Analysis Monthly Revenue Break-even $20,996 Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 42% $12,258 8.3 Projected Profit and Loss Based on the sales projections and our low fixed cost operations strategy, Revjoy Pty Ltd will achieve profitability within one year. Profits in subsequent years will accelerate with an increase in anticipated sales volume, yielding approximately tripling of net profit in Year 2 and Year 3.
  • 26. Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $398,650 $1,282,713 $2,716,825 Direct Cost of Sales $165,900 $541,650 $1,154,700 -Shipping and Handling –You Have Do‟s Complete System $8,398 $25,971 $35,027 Shipping and Handling –Extension Poles $7,970 $28,781 $64,279 Total Cost of Sales $182,268 $596,402 $1,254,006 Gross Margin $216,382 $686,311 $1,462,819 54.28% 53.50% 53.84% Gross Margin %
  • 27. Expenses Payroll $0 $0 $0 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $0 $0 $0 Rent $0 $0 $0 Utilities $0 $0 $0 Insurance - liability $0 $0 $0 Payroll Taxes $0 $0 $0 Other $0 $0 $0 Total Operating Expenses $0 $0 $0 Profit Before Interest and Taxes $0 $0 $0 EBITDA $0 $0 $0 Interest Expense $0 $0 $0 Taxes Incurred $0 $0 $0 Net Profit $0 $0 $0 0% 0% 0% Net Profit/Sales
  • 28. 8.4 Projected Cash Flow We expect to manage cash flow with an initial investment and expect be profitable by the end of Year 1, with occasional negative cash flows corresponding to inventory purchases. Owner invests additional $10,000 in Year 2 as a hedge against Accounts Payable/Accounts Receivable flows. Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Sales $0 $0 $0 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $0 $0 $0 Cash Received Cash from Operations
  • 29. Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $0 $0 $0 Year 1 Year 2 Year 3 Cash Spending $0 $0 $0 Bill Payments $0 $0 $0 Subtotal Spent on Operations $0 $0 $0 $0 $0 $0 Expenditures Expenditures from Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out
  • 30. Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $0 $0 $0 Net Cash Flow $0 $0 $0 Cash Balance $0 $0 $0
  • 31. 8.5 Projected Balance Sheet As shown on the balance sheet in the following table, we expect a healthy growth in net worth by the end of the plan period. The monthly projections for Year 1 are in the appendix. Pro Forma Balance Sheet Year 1 Year 2 Year 3 Cash $0 $0 $0 Accounts Receivable $0 $0 $0 Inventory $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $0 $0 $0 Long-term Assets $0 $0 $0 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $0 $0 $0 Total Assets $0 $0 $0 Assets Current Assets Long-term Assets
  • 32. Liabilities and Capital Year 1 Year 2 Year 3 Accounts Payable $0 $0 $0 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $0 $0 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $0 $0 $0 Paid-in Capital $0 $0 $0 Retained Earnings $0 $0 $0 Earnings $0 $0 $0 Total Capital $0 $0 $0 Total Liabilities and Capital $0 $0 $0 Net Worth $0 $0 $0 Current Liabilities
  • 33. 8.6 Business Ratios The following table presents common business ratios for reference. Revjoy Pty – Australian Standard?? Ratio Analysis Year 1 Year 2 Year 3 Industry Profile 0.00% 0% 0% 0% Accounts Receivable 0% 0% 0% 0% Inventory 0% 0% 0% 0% Other Current Assets 0% 0% 0% 0% Total Current Assets 0% 0% 0% 0% 0.00% 0.00% 0.00% 0% 100.00% 100.00% 100.00% 100.00% Current Liabilities 0% 0% 0% 0% Long-term Liabilities 0% 0% 0% 0% Total Liabilities 0% 0% 0% 0% Net Worth 0% 0% 0% 0% Sales Growth Percent of Total Assets Long-term Assets Total Assets
  • 34. Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 0% 0% 0% 0% Selling, General & Administrative Expenses 0% 0% 0% 0% 0.00% 0.00% 0.00% 0% 0% 0% 0% 0% Current 0 0 0 0 Quick 0 0 0 0 Total Debt to Total Assets 0% 0% 0% 0% Pre-tax Return on Net Worth 0% 0% 0% 0% Pre-tax Return on Assets 0% 0% 0% 0% Year 1 Year 2 Year 3 Net Profit Margin 0% 0% 0% n.a Return on Equity 0% 0% 0% n.a Advertising Expenses Profit Before Interest and Taxes Main Ratios Additional Ratios Activity Ratios
  • 35. Accounts Receivable Turnover 0 0 0 0 Collection Days 0 0 0 0 Inventory Turnover 0 0 0 0 Accounts Payable Turnover 0 0 0 0 Payment Days 0 0 0 0 Total Asset Turnover 0 0 0 0 Debt to Net Worth 0 0 0 0 Current Liab. to Liab. 0 0 0 0 $0 $0 $0 0 0 03 0 0 0 0 0 0 0% 0% 0% 0 0 0 0 0 Debt Ratios Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test
  • 36. Sales/Net Worth 0 0 0 0.00 Dividend Payout 0 0.00 0.00 0 Sales Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales Systems 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Poles 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Sales Direct Cost of Sales Systems $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Poles $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  • 37. Personnel Plan Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 General Operationsr 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales/Administration 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Marketing/Sales 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Technical/Development 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total People 4 4 4 4 4 4 4 4 4 4 4 4 Total Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
  • 38. Pro Forma Profit and Loss Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Direct Cost of Sales $0 $0 $0 $0 $ $0 $ $ $ $ $ $ Shipping and Handling – Systems $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Shipping and Handling poles $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Gross Margin $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales and Marketing and Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Insurance - liability $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Gross Margin % Expenses
  • 39. Payroll Taxes 15%?? $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,275 $7,275 $7,275 $7,275 $12,984 $13,256 $13,528 $14,072 $15,407 $15,729 $16,324 $16,697 Profit Before Interest and Taxes ($7,275) ($7,275) ($7,275) ($11,230) $8,546 $9,474 $10,409 $7,099 $14,532 $15,687 $17,638 $18,954 EBITDA ($7,275) ($7,275) ($7,275) ($11,230) $8,546 $9,474 $10,409 $7,099 $14,532 $15,687 $17,638 $18,954 $425 $418 $411 $404 $397 $390 $383 $376 $369 $362 $355 $348 Taxes Incurred ($2,310) ($2,308) ($2,306) ($3,490) $2,445 $2,725 $3,008 $2,017 $4,249 $4,598 $5,185 $5,582 Net Profit ($5,390) ($5,385) ($5,380) ($8,144) $5,704 $6,359 $7,018 $4,706 $9,914 $10,728 $12,098 $13,024 0.00% 0.00% 0.00% 0.00% 14.99% 15.95% 16.84% 10.39% 18.29% 19.03% 20.05% 20.73% Other Total Operating Expenses Interest Expense Net Profit/Sales Pro Forma Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Sales $0 $0 $0 $0 $9,516 $9,969 $10,422 $11,328 $13,553 $14,091 $15,081 $15,703 Cash from Receivables $0 $0 $0 $0 $0 $952 $28,592 $29,952 $31,356 $34,207 $40,713 $42,371 Subtotal Cash from Operations $0 $0 $0 $0 $9,516 $10,920 $39,014 $41,280 $44,909 $48,298 $55,794 $58,074 Cash Received Cash from Operations
  • 40. Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Other Liabilities (interestfree) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Received $0 $0 $0 $0 $9,516 $10,920 $39,014 $41,280 $44,909 $48,298 $55,794 $58,074 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Spending $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 Bill Payments ($110) ($174) ($232) ($118) $1,354 $24,798 $36,001 $29,456 $33,601 $40,133 $42,041 $42,947 Subtotal Spent on Operations $5,390 $5,326 $5,268 $5,382 $6,854 $30,298 $41,501 $34,956 $39,101 $45,633 $47,541 $48,447 Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Expenditures 0.00% Expenditures from Operations Additional Cash Spent
  • 41. Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Long-term Liabilities Principal Repayment $0 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,390 $6,726 $6,668 $6,782 $8,254 $31,698 $42,901 $36,356 $40,501 $47,033 $48,941 $49,847 Net Cash Flow ($5,390) ($6,726) ($6,668) ($6,782) $1,261 ($20,778) ($3,887) $4,924 $4,409 $1,264 $6,853 $8,227 Cash Balance $94,610 $87,884 $81,216 $74,433 $51,030 $55,954 $60,363 $61,627 $68,480 $76,707 Subtotal Cash Spent $75,695 $54,917 Pro Forma Balance Sheet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $100,000 $94,610 $87,884 $81,216 $74,433 $75,695 $54,917 $51,030 $55,954 $60,363 $61,627 $68,480 $76,707 Accounts Receivable $0 $0 $0 $0 $0 $28,547 $57,502 $60,175 $64,208 $73,511 $81,576 $86,107 $90,845 Inventory $0 $0 $0 $0 $0 $17,325 $18,150 $18,975 $20,625 $24,915 $25,905 $27,720 $28,875 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 Assets Starting Balances Current Assets Cash Other Current Assets
  • 42. Total Current Assets $115,000 $109,610 $102,884 $96,216 $89,433 $136,567 $145,569 $145,180 $155,787 $173,789 $184,108 $197,307 $211,427 Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $115,000 $109,610 $102,884 $96,216 $89,433 $136,567 $145,569 $145,180 $155,787 $173,789 $184,108 $197,307 $211,427 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable $0 $0 $59 $171 $2,933 $45,762 $49,805 $43,798 $51,098 $60,586 $61,577 $64,078 $66,575 Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Current Liabilities $0 $0 $59 $171 $2,933 $45,762 $49,805 $43,798 $51,098 $60,586 $61,577 $64,078 $66,575 Long-term Liabilities $85,000 $85,000 $83,600 $82,200 $80,800 $79,400 $78,000 $76,600 $75,200 $73,800 $72,400 $71,000 $69,600 Total Liabilities $85,000 $85,000 $83,659 $82,371 $83,733 $125,162 $127,805 $120,398 $126,298 $134,386 $133,977 $135,078 $136,175 Paid-in Capital $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) $0 ($5,390) ($10,775) ($16,155) ($24,299) ($18,595) ($12,236) ($5,218) ($512) $9,403 $20,130 $32,228 $45,252 $30,000 $24,610 $19,225 $13,845 $5,701 $11,405 $17,764 $24,782 $29,488 $39,403 $50,130 $62,228 $75,252 Retained Earnings Earnings Total Capital
  • 43. Total Liabilities and Capital Net Worth $115,000 $109,610 $102,884 $96,216 $89,433 $136,567 $145,569 $145,180 $155,787 $173,789 $184,108 $197,307 $211,427 $30,000 $24,610 $19,225 $13,845 $5,701 $11,405 $17,764 $24,782 $29,488 $39,403 $50,130 $62,228 $75,252 Need real financials? We recommend using Live Plan as the easiest way to create automatic financials for your own business plan. Create your own business plan » Read more: http://www.bplans.com/pet_products_manufacturer_business_plan/financial_plan_fc.php#ixzz2TPY1rSPi