2. Academic Edition
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This is a business plan. It does not imply an offering of securities.
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1.0 Business Strategy
Ultimate Anime USA's Business strategy consists of company identity , service offering, strengths,
weaknesses, opportunities and threats, competitive edge, and the target market of potential clients.
Ultimate Anime USA LLC's Mission is to educate the average customer and spread joy of the Gaming
and Anime genres. To do this we will successfully combine the genres of anime, rock, and gaming to
create a unique, friendly, safe shopping and social environment for multi generational groups a like, while
creating a fun work environment that promotes employee ownership
The retail marketing strategy of Ultimate Anime USA centers on creating a company identity that clearly
defines our market niche in terms that benefit our customer. Other specific strategies that will be used follow:
1. Social Media- Social media outlets such as Facebook and Twitter will Quickly Give us a global
presence and put our brand in front of countless potential customers at no cost to the company.
2. Print Ads - Keeping the Ultimate Anime USA name in front of the customer while getting
established will be necessary. We plan on running limited space ads in the local newspapers to keep
our name and phone number in front of the consumer. We may attempt to showcase a single
product in an effort to return revenue from the ad.
3. Grand Opening - A Grand Opening is the most successful of any in-store promotions. With
manufacturer support, a large number of door prizes can be given away while instantly building a
mailing list. Loss leader pricing on a few high volume consumable products will attract in-store
traffic. Vendors will subsidize loss leader pricing with a rebate or kickback. Appearances by
celebrities would also expose potential customers to Ultimate Anime USA .
4. Anime Conventions- We will exhibit at several anime convention shows annually. Revenue that we
produce at the shows will outweigh our expenses for attending.
5. Word of Mouth - By giving first-time customers great service and a fair price, the word is sure to
spread.
· The marketing budget will not exceed 5% of our gross annual sales.
· Our promotions will always stay in tune with our company objectives and mission statement.
1.1 Identity
Ultimate Anime USA LLC is organized as a single owner LLC owned by Robert J. Pytell.
We will be located at 16815 Redmond Way, Redmond, WA, because Redmond is an epicenter of
technology companies and a good source of talent as well as a customer base.
Initially the hours of operation will be Monday-Friday 8 a.m- 2a.m to better serve our customers and is
subject to change as per demand.
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All merchandise will be purchased according to the company's mission and customer focus of outfitting all
sizes including women's clothing and accessories.
1.1.1 SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses Ultimate Anime USA must address. It also allows us to examine the opportunities presented
to Ultimate Anime USA as well as potential threats.
1.1.1.1 Strengths
1. Knowledgeable and friendly staff. We've gone to great lengths at Ultimate Anime USA to find
people with a passion for teaching and sharing their experiences . Our staff is both knowledgeable
and eager to please.
2. Our customers enjoy beautiful flat-screen displays, fast machines,and state-of-the art equipment
3. As previously stated in our mission statement, we have a unique business model and strategy.
4. We constantly educate staff on new technology so they can effectively serve our customers keep a
competative edge.
5. We are strategically located in a city where the population is highly educated and Tech Savy.
1.1.1.2 Weaknesses
1. Cost factor associated with keeping state-of-the-art hardware.
2. The market share loss for DVD's due to piracy.
3. Because of size and newness, obtaining capital and credit will be a challenge.
4. We can't yet afford to buy in bulk like Big Box stores, which could affect our price to customers
5. Constant changing trends in consumer buying habits and technology directly affect prices.
1.1.1.3 Opportunities
1. Develope and grow a potentially revolutionary business model for the future of arcade gaming
and retail fusion.
2. Build a trademark business model that is successful.
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3. Our young, highly educated and tech savvy staff allows our company to be nimble, capable of
quicky adapting to a constant changing environment.
4. Adapting new technology will enhance our customers experience.
5. Possible Partnership with Starbucks or Whidbey coffee
1.1.1.4 Threats
1. The downturn in the ecomony has impacted store sales--stock market predictors correlate with
store sales.
2. Competition from a national store; or a store with greater financing or product resources could enter
the market.
3. The cost of the constant change in technology.
1.1.2 Competitive Edge
1. Our location in the community will offer closer access to our target customer base.
2. No other concept store of this type exists.
3. Extremely well-trained and educated staff will keep us technically ahead of competition.
1.2 Target Market
The Primary target customer is the population of Redmond. We chose Redmond because its population is
highly educated and affluent. At the same time the cost for starting a business is less than other surrounding
cities. (Statistical data was obtained from The Redmond Chamber of Commerce website http://www.
oneredmond.org/.)
The secondary market is the populations of cities surrounding Redmond WA. (Statistical Data was
Obtained from The US Census Bureau website for 2012+,http://quickfacts.census.gov/qfd/states/53000.
html
1.3 Strategic Focus
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Ultimate Anime USA's Strategic focus is on our chosen customer demographic: Ages 12-35;
High level of education; and technologically savvy. Our strategic focus has driven our choice of
locating ourselves in Redmond WA.
2.0 Specific Plans
The sub-topics in this portionof the outline gives details of each section, including our review schedule and
the percentage assumptions we will use for interest payments on loans and estimated taxes against profits.
Our milestones table shows the primary goals we have set for completion within the first six months. We
have estimated sales over a three-year period, using a detailed breakdown of services and the costs
associated with providing the services. Our Budgets sections shows that our startup expenses .We are
including full personnel estimates, even though the principal owner will not be paid until the third year. We
did this to more accurately reflect what our ongoing expenses will be as we move forward. We expect to
show a loss for the first two years, in part because of our unpaid personnel estimates. As a result of our
estimates, we show a positive cash flow.
2.1 Review Schedule
The owner will review plan vs. actual monthly results with a consultant to track progress and continue
further developement of the company. All results will be used to implement new policies which will be
communicated to employees during monthly training.
2.2 Important Assumptions
Key assumptions for Ultimate Anime USA are:
· We do not sell anything on credit.
· We assume the continued popularity of the gaming, rock and roll, japanese anime, and coffee
genres.
· Monthly sales are the largest indicator for this business.
· All sales paid via credit cards will be deposited in our business checking account within 48
hours. Our business checking account will be with Wells Fargo. They have reported the interest rate
as those listed below.
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Table: General Assumptions
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
2.3 Milestones
The accompanying milestone chart highlights Ultimate Anime USA's plan with specific dates. This schedule
reflects our strong committment to organization and detail.
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Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Write Business Plan 8/27/2017 11/17/2017 $0 Robert Pytell Owner
Obtain business licenses
and file legal paperwork
11/30/2017 1/31/2018 $1,000 Robert Pytell Owner
Review/ Finalize business
plan
1/1/2018 1/30/2018 $0 Robert Pytell Owner
Apply for a SBA loan 1/15/2017 2/25/2017 $0 Robert Pytell Owner
Find location 2/1/2018 2/28/2018 $5,000 Robert Pytell Owner
Sign lease 2/28/2018 3/1/2018 $0 Robert Pytell Owner
Receive SBA funding 2/25/2018 3/19/2018 $0 Robert Pytell Owner
Build Store 3/19/2018 4/1/2018 $40,000 Robert Pytell Owner
Hire employees 3/19/2018 4/15/2018 $0 Anna Pytell Supervisor
Set up servers and
network
4/1/2018 4/15/2018 $20,000 Robert Pytell Owner
Order inventory 3/30/2018 4/11/2018 $50,000 Anna and
Robert
GM and
Supervisor
First Round of Marketing 3/1/2018 4/15/2018 $10,000 Robert Pytell Owner
Connect utilities 3/17/2018 3/19/2018 $0 Ronert Pytell Owner
Stock store 4/15/2018 4/20/2018 $3,400 Robert Rytell GM
Employee training 4/20/2018 4/24/2018 $2,000 Robert pytell GM
Contact Local media
about Grand opening
4/25/2018 4/26/2018 $2,000 Robert Pytell GM and
Supervisor
Grand opening 4/27/2018 4/28/2018 $2,500 Robert and
Anna
GM and
Supervisor
Totals $135,900
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2.4 Sales Forecast
The following table and chart give a run down on forecasted sales.
We expect sales to increase at a rate of 1-4% per month for
each product in the first fewmonths
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Retail $451,999 $600,000 $700,000
Bistro $268,236 $350,000 $395,000
Arcade $25,297 $50,000 $75,000
LAN $82,060 $150,000 $200,000
Total Sales $827,592 $1,150,000 $1,370,000
Direct Cost of Sales Year 1 Year 2 Year 3
Inventory cost $196,330 $90,000 $100,000
Bistro supplies cost $100,838 $55,000 $50,000
Technology Cost $34,650 $10,000 $20,000
Subtotal Direct Cost of Sales $331,818 $155,000 $170,000
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2.5 Budgets
The following sub-topics outline the details of our startup expenses and funding, personnel costs, expense
budgets and cash flow.
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2.5.1 Startup Summary
The purpose of this business plan is to secure a SBA loan. This loan appears in the long-term liability row of
the attached Start-up Funding table.
The start up costs are broken up into several different catagories and include:
· The largest cost will be the setup of the server and the server due to the complexity of the system.(A
consultant from Bestbuy will be utilized in this process.)
· Store build out
· Staffing including both administrative and technical
· Inventory control, (computers and cash registers)
· Store Fixtures and equipment is estimated at $20,000
· Opening inventory will cost $50,000 as to provide a wide selection of products for potential
customers.
· Legal costs
° Our lawyer will be responsible for working with any local government concerning potential
conflicts having to do with zoning and/or permit allowance.
° Filing all articles of organization and applying for business licenses and Permits.
There will be other normal business start up costs such as a $1,000,000 liability umbrella, rent, interior
design costs, and opening day promotions.
The company will start with three months' inventory on-hand. The majority of company assets will
reside in inventory. The starting cash balance will be $30,000.
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Table: Startup
Startup
Requirements
Startup Expenses
Legal $1,000
Stationery etc. $1,000
Insurance $3,000
Rent $10,000
Computer and POS $5,000
Other $20,000
Bistro Supplies $20,000
Arcade Supplies $30,000
Store Displays $15,000
Total Startup Expenses $105,000
Startup Assets
Cash Required $30,000
Startup Inventory $50,000
Other Current Assets $50,000
Long-term Assets $20,000
Total Assets $150,000
Total Requirements $255,000
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Table: Startup Funding
Startup Funding
Startup Expenses to Fund $105,000
Startup Assets to Fund $150,000
Total Funding Required $255,000
Assets
Non-cash Assets from Startup $120,000
Cash Requirements from Startup $30,000
Additional Cash Raised $35,000
Cash Balance on Starting Date $65,000
Total Assets $185,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $190,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $190,000
Capital
Planned Investment
Owner $100,000
private investor $0
Additional Investment Requirement $0
Total Planned Investment $100,000
Loss at Startup (Startup Expenses) ($105,000)
Total Capital ($5,000)
Total Capital and Liabilities $185,000
Total Funding $290,000
2.5.2 Personnel Plan
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Ultimate Anime USA will hire 13 people, the personnel plan is included in the following table below.
There will be six full-time employees, six part-time employees working 16 hours per week, and one
supervisor working full-time. The full-time employee will be paid at a rate of $10.00 per hour, the six part-
time employees will be paid at a rate of $10.00 per hour, and the supervisor will be paid $15.00 per
hour. All employee's will have major holidays off and benefit from a one day paid holiday on their respective
birthdays.Also one week of paid vacation after twelve months of employment.
The owner will be the GM and not be paid for the first consecutive year to reduce operating cost. Beginning
the second year the GM will receive a salary of $10,000 and the third year $35,000. All employees who
stay employed longer than 12 months will receive an annual raise of 2% of their annual gross salary.
Ultimate Anime USA's store hours are planned Sunday through Thursday, 8:00 a.m. to 10:00 p.m. and
Friday-Saturday, 8:00 a.m. to midnight. The Personnel Plan, as detailed in the table following, has been
developed to support these store hours and expected volumes as per the Sales Forecast section.
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
General Manager $0 $10,000 $35,000
Barista Personel $53,760 $54,835 $55,931
Cashiers $53,760 $54,835 $55,931
Arcade tech $34,560 $35,241 $35,956
Supervisor $28,800 $30,000 $33,000
Total People 12 12 12
Total Payroll $170,880 $184,911 $215,818
2.5.3 Expense Budget
2.5.4 Projected Profit and Loss
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Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $827,592 $1,150,000 $1,370,000
Direct Cost of Sales $331,818 $155,000 $170,000
Other Costs of Sales $0 $0 $0
Total Cost of Sales $331,818 $155,000 $170,000
Gross Margin $495,774 $995,000 $1,200,000
Gross Margin % 59.91% 86.52% 87.59%
Expenses
Payroll $170,880 $184,911 $215,818
Marketing/Promotion $22,976 $20,000 $25,000
Depreciation $12,675 $20,000 $30,000
Rent $60,000 $60,000 $60,000
Utilities $12,000 $20,000 $20,000
Insurance $12,000 $12,000 $12,000
Payroll Taxes $25,632 $27,737 $32,373
Other $6,000 $6,000 $60,000
Total Operating Expenses $322,163 $350,648 $455,191
Profit Before Interest and Taxes $173,611 $644,352 $744,809
EBITDA $186,286 $664,352 $774,809
Interest Expense $66,120 $54,385 $38,793
Taxes Incurred $32,247 $176,990 $211,805
Other Income
Other Income Account Name $0 $0 $0
Other Income Account Name $0 $0 $0
Total Other Income $0 $0 $0
Other Expense
Other Expense Account Name $0 $0 $0
Other Expense Account Name $0 $0 $0
Total Other Expense $0 $0 $0
Net Other Income $0 $0 $0
Net Profit $75,244 $412,977 $494,212
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2.5.5 Projected Cash Flow
Cash flow projections are critical to Ultimate Anime USA's success. The following table shows cash flow
for the first three years, and the chart illustrates monthly cash flow in the first year. Monthly cash flow
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projections are included in the appendix.
Upon paying off initial SBA loan Ultimate Anime USA expects to have steady cash flow without having to
retain any new loans.
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Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $827,592 $1,150,000 $1,370,000
Subtotal Cash from Operations $827,592 $1,150,000 $1,370,000
Additional Cash Received
Non Operating (Other) Income $0 $0 $0
Sales Tax, VAT, HST/GST Received $78,621 $109,250 $130,150
New Current Borrowing $250,000 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $250,000 $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 $1,406,213 $1,259,250 $1,500,150
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $170,880 $184,911 $215,818
Bill Payments $658,608 $413,397 $693,025
Subtotal Spent on Operations $829,488 $598,308 $908,843
Additional Cash Spent
Non Operating (Other) Expense $0 $0 $0
Sales Tax, VAT, HST/GST Paid Out $78,624 $109,250 $130,150
Principal Repayment of Current Borrowing $0 $64,000 $122,000
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $64,146 $100,000 $25,854
Purchase Other Current Assets $30,303 $30,300 $30,300
Purchase Long-term Assets $55,294 $50,000 $50,000
Dividends $0 $10,000 $20,000
Subtotal Cash Spent $1,057,856 $961,858 $1,287,147
Net Cash Flow $348,358 $297,392 $213,003
Cash Balance $413,358 $710,749 $923,752
