Fantome Trampoline Inc - Business Plan Sample

13 vehicles truck forklift vehicle subtotal machinery

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VEHICLES Truck Forklift Vehicle Subtotal MACHINERY Mig Welder Industrial Bender Air Compressor Sewing Machines Small Tools Iron Worker Consumables Machinery Subtotal OTHER Required Funding Costs 30,000 10,000 40,000 5,000 20,000 3,000 20,000 4,000 10,000 2,000 64,000 Paint Booth Ventilation Equipment Office equipment/kitchen appliances Other Subtotal WAGES (6 months) Seamstress Salary Machinist Salary Assistant Wages Manager Salary Wages Subtotal RAW MATERIALS (6 months) Steel Vinyl Polypropylene Springs Raw Materials Subtotal MARKETING Website Design Tradeshow Budget Marketing Subtotal GRAND TOTAL 8,000 4,000 15,000 27,000 91,000 (45,500) 56,000 38,400 (19,200) 100,000 (50,000) 285,400 (142,700) 35,000 15,000 15,000 10,000 75,000 10,000 10,000 20,000 368,700 14
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Income Projections Current Year 2 Year 3 Year 4 Year 5 Income Sales 400,000 800,000 1,000,000 1,300,000 1,500,000 OPERATING EXPENSES Lease 24,000 70,200 70,200 70,200 70,200 Wages/Salaries 105,000 390,400 395,000 455,000* 465,000 Utilities 5,000 10,000 12,000 14,000 16,000 Freight 12,000 7,000 12,000 15,000 16,000 Raw materials 150,000 300,000 375,000 490,000 565,000 Amortization 8,000 27,000 27,000 27,000 27,000 Maintenance 2,000 4,000 4,000 5,000 5,500 Other 8,000 12,000 5,000 5,000 7,500 NET INCOME 76,000 -24,600 99,800 218,800 327,800 ROI 10% -4% 13% 16% 20% - Income Projection & ROI – In the income projections, our sales grow very steadily. During year 2, the net income is lower due to initial entry into the market, and the smaller number of dealers acquired within the initial year of operations. After year 2, we have established a larger network of local dealers and have properly marketed our products, thus increasing our volume of sales. From year 3 onwards, the rate at which the revenue increases is far higher than our variable costs of production. We believe these revenue targets are easily attainable as we already have sales to customers and prospective dealers in the Albuquerque and California area. After several years of opening of our new factory in the Albuquerque, we believe that we will begin operating at economies of scales, and gain from logistical improvements to shipping. In addition we hope that the funds received for our marketing campaign will broaden or dealer network across the country, allowing us to target more markets across the USA. This projection represents a conservative outlook to our future sales. *increase attributable to hiring additional machinist 15
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Feasibility Our proposed business venture to establish a new trampoline manufacturing plant in Albuquerque, New Mexico shows promise of profitability, adaptability to developments in the marketplace, and sustainability and growth. A closer look into the economic, operational, legal feasibility of our proposed venture makes it clear that this is a business plan that is worthwhile to pursue. - Economical Feasibility - Our analysis of the premium trampoline industry indicates that there exists a viable and growing market for our product category. Strong sales in backyard trampolines, increased usage of trampolines in gymnastics as training apparatuses, and growing popularity of trampoline arenas in major USA cities all point towards this conclusion. The higher profit margins we yield from our trampolines and the broadening of our existing dealer network in the USA outweigh the development and operating costs involved in establishment of our new plant. Based on a cost/benefit analysis, the annual return on investment, and income projections over the next five years our proposed business plan is an economically sound venture.
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  • Summer '13
  • cm
  • ........., Albuquerque, trampoline, George Nissen, FTM Inc.

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