Entrepreneur Business Plan

Paper 3

Entrepreneurship ENTR 3310

Team Number 10 Team 10

Jacob Atwood

Nicolas Montoya Ashley Moreno Joshua Shea

Stephaine Williams

Dr. John Karonika University of Houston

Summer 2013

I. Source(s) of Start-Up Capital

One of the foremost questions on an entrepreneur’s mind is; how am I going to raise capital to

get this venture off the ground? It is an important question, but just because it is important does not

necessarily mean it is complicated or complex. Team 10 agrees that the key way we will raise capital for

this venture is through a bank or small business loan.

Every company starting off faces many challenges. As discussed above a major challenge is

start-up capital, but as important as capital is FeelFit needs to establish themselves through reliability

and trustworthiness as a business to the general public.

• A way that we can raise capital for FeelFit is through selling of stock. Selling stock will

bring in capital and has the potential for developing FeelFit by getting investors interested

in the venture. It is important that others feel comfortable investing their assets in FeelFit

this will give FeelFit more recognition to other potential investors, possibly worldwide

investors. We recognize that this form of raising capital will not come right off the bat but

we feel that as FeelFit grows and develops that selling of stock would come into play. And

because we are selling stock this means that FeelFit would be a corporation. This means

that FeelFit has made an initial public offering (IPO). An IPO is a great way to raise capital

but as stated earlier this would not come until FeelFit has developed into a successful

business.

• A way to raise capital that would be available to FeelFit almost immediately would be

through angel investors. An angel investor is ordinarily a well-to-do business man or

women who set aside a portion of their net worth to invest in small early-staged

businesses. To get angel investors aboard with FeelFit we would provide them with a

complete business plan accompanied with an investor’s executive summary.

II. Initial Balance Sheet

FeelFit Inc. Initial Balance Sheet

ASSETS

LIABILITIES

CURRENT ASSETS

CURRENT LIABILITIES

Cash 800,000.00

Accounts Payable -

Net Accounts Receivable -

Notes Payable -

Inventory 250,000.00

Accrued Payroll -

Other Current Assets -

Current Long-Term Debt 185,000.00

Total Current Assets 1,050,000.00

Total Current Liabilities 185,000.00

FIXED ASSETS

LONG-TERM LIABILITIES

Plant Property and Equipment 150,000.00

Loan Payable 790,000.00

Total Fixed Assets 150,000.00

Other Liabilities 125,000.00

Total Long-Term Liabilities 915,000.00

OTHER ASSETS

Other Assets 100,000.00

TOTAL LIABILITIES 1,100,000.00

Long-Term Investments -

Total Other Assets 100,000.00

EQUITY

Common Stock -

TOTAL ASSETS 1,300,000.00

Treasury Stock -

Current Earnings -

Retained Earnings -

Additional Paid in Capital -

Other Equity 200,000.00

TOTAL EQUITY 200,000.00

TOTAL LIABILITIES AND EQUITY 1,300,000.00

III. Balance Sheet (End of Year 1)

FeelFit Inc. Balance Sheet

As of year ended 12/31/2013

ASSETS

LIABILITIES

CURRENT ASSETS

CURRENT LIABILITIES

Cash 720,000.00

Accounts Payable 102,350.00

Net Accounts Receivable 196,875.00

Notes Payable -

Inventory 203,000.00

Accrued Payroll 324,876.00

Other Current Assets -

Current Long-Term Debt 200,000.00

Total Current Assets 1,119,875.00

Total Current Liabilities 627,226.00

FIXED ASSETS

LONG-TERM LIABILITIES

Plant Property and Equipment 612,000.00

Loan Payable 890,000.00

Depreciation on PP&E (26,090.00)

Other Liabilities 49,792.00

Total Fixed Assets 585,910.00

Deferred Long-Term Liability Charges 96,725.00

Total Long-Term Liabilities 1,036,517.00

OTHER ASSETS

Other Assets 114,570.00

TOTAL LIABILITIES 1,663,743.00

Long-Term Investments 74,500.00

Total Other Assets 189,070.00

EQUITY

Common Stock -

TOTAL ASSETS 1,894,855.00

Treasury Stock -

Current Earnings -

Retained Earnings 31,112.00

Additional Paid in Capital -

Other Equity 200,000.00

TOTAL EQUITY 231,112.00

TOTAL LIABILITIES AND EQUITY 1,894,855.00

IV. Income Statement

Sales - Revenues Month 1 Month 2 Month 3 Month 4

FeelFit Convenient Stores 87,000.00$ 102,000.00$ 114,000.00$ 113,000.00$ FeelFit Restaurants 48,500.00$ 51,000.00$ 55,000.00$ 51,500.00$ Products in Gyms 32,000.00$ 34,000.00$ 41,000.00$ 47,000.00$

TOTAL SALES 167,500.00$ 187,000.00$ 210,000.00$ 211,500.00$

Cost of Goods SoldLabor 87,000.00$ 99,000.00$ 109,000.00$ 110,000.00$ Purchases 50,000.00$ 62,500.00$ 76,000.00$ 79,000.00$ Sales Tax 6,578.00$ 7,561.00$ 7,698.00$ 8,143.00$ Freight-in 1,232.00$ 1,543.00$ 1,765.00$ 1,398.00$ Indirect Expenses 55.00$ 126.00$ 141.00$ 102.00$

TOTAL COGS 144,865.00$ 170,730.00$ 194,604.00$ 198,643.00$ Gross Profit 22,635.00$ 16,270.00$ 15,396.00$ 12,857.00$

Gross M argin 13.51% 8.70% 7.33% 6.08%

Selling Expenses Labor - Sales 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ Advertising/Marketing Expense 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ Promotional Distributions 1,100.00$ 1,300.00$ 1,500.00$ 1,200.00$

TOTAL SELLING EXPENSES 24,400.00$ 24,600.00$ 24,800.00$ 24,500.00$

General and Administrative

ExpensesSupplies 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ Insurance Expense 450.00$ 450.00$ 450.00$ 450.00$ Salary Expense 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ Legal & Professional Fees 2,000.00$ Property Tax Expenses 750.00$ 750.00$ 750.00$ 750.00$ Interest Expense 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ Rent Expense 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ Utilities Expense 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$

TOTAL G&A EXPENSES 28,400.00$ 26,400.00$ 26,400.00$ 26,400.00$

TOTAL EXPENSES 197,665.00$ 221,730.00$ 245,804.00$ 249,543.00$

Income Statement Continued

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total

103,500.00$ 97,000.00$ 103,000.00$ 111,000.00$ 120,000.00$ 126,000.00$ 134,500.00$ 147,500.00$ 1,358,500.00$ 56,000.00$ 59,500.00$ 62,500.00$ 63,000.00$ 58,000.00$ 50,000.00$ 54,000.00$ 59,000.00$ 668,000.00$ 50,000.00$ 51,500.00$ 52,000.00$ 49,000.00$ 57,000.00$ 60,000.00$ 62,500.00$ 64,500.00$ 600,500.00$

209,500.00$ 208,000.00$ 217,500.00$ 223,000.00$ 235,000.00$ 236,000.00$ 251,000.00$ 271,000.00$ 2,627,000.00$

108,000.00$ 102,000.00$ 107,000.00$ 113,000.00$ 119,000.00$ 118,000.00$ 123,000.00$ 127,000.00$ 1,322,000.00$ 73,000.00$ 65,000.00$ 71,500.00$ 82,000.00$ 86,500.00$ 83,000.00$ 89,500.00$ 94,800.00$ 912,800.00$ 7,843.00$ 8,023.00$ 9,085.00$ 8,723.00$ 9,375.00$ 9,213.00$ 9,467.00$ 9,790.00$ 101,499.00$ 1,475.00$ 1,487.00$ 1,506.00$ 1,492.00$ 1,601.00$ 1,532.00$ 1,591.00$ 1,645.00$ 18,267.00$

99.00$ 76.00$ 87.00$ 144.00$ 157.00$ 132.00$ 115.00$ 101.00$ 1,335.00$ 190,417.00$ 176,586.00$ 189,178.00$ 205,359.00$ 216,633.00$ 211,877.00$ 223,673.00$ 233,336.00$ 2,355,901.00$ 19,083.00$ 31,414.00$ 28,322.00$ 17,641.00$ 18,367.00$ 24,123.00$ 27,327.00$ 37,664.00$ 271,099.00$

9.11% 15.10% 13.02% 7.91% 7.82% 10.22% 10.89% 13.90% 10.32%

13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 166,800.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 112,800.00$ 1,050.00$ 1,000.00$ 1,550.00$ 1,750.00$ 1,600.00$ 1,600.00$ 1,540.00$ 1,400.00$ 16,590.00$

24,350.00$ 24,300.00$ 24,850.00$ 25,050.00$ 24,900.00$ 24,900.00$ 24,840.00$ 24,700.00$ 296,190.00$

13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 162,000.00$ 450.00$ 450.00$ 450.00$ 450.00$ 450.00$ 450.00$ 450.00$ 450.00$ 5,400.00$

3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 38,400.00$ 2,000.00$

750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 9,000.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 16,800.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 66,000.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 19,200.00$

26,400.00$ 26,400.00$ 26,400.00$ 26,400.00$ 26,400.00$ 26,400.00$ 26,400.00$ 26,400.00$ 318,800.00$

241,167.00$ 227,286.00$ 240,428.00$ 256,809.00$ 267,933.00$ 263,177.00$ 274,913.00$ 284,436.00$ 2,970,891.00$

V. Cash Flow Projection

INFLOWS: Month 0 Month 1 Month 2 Month 3 Month 4 Month 5Beginning Capital 800,000.00$ FeelFit Convenient Stores 87,000.00$ 102,000.00$ 114,000.00$ 113,000.00$ 103,500.00$ FeelFit Restaurants 48,500.00$ 51,000.00$ 55,000.00$ 51,500.00$ 56,000.00$ Products in Gyms 32,000.00$ 34,000.00$ 41,000.00$ 47,000.00$ 50,000.00$

TOTAL INFLOWS 800,000.00$ 167,500.00$ 187,000.00$ 210,000.00$ 211,500.00$ 209,500.00$

OUTFLOWS:Plant Property and Equipment 150,000.00$ Other Deposits 1,500.00$ Loan Principle

Labor 87,000.00$ 99,000.00$ 109,000.00$ 110,000.00$ 108,000.00$ Purchases 50,000.00$ 62,500.00$ 76,000.00$ 79,000.00$ 73,000.00$ Sales Tax -$ -$ 21,837.00$ -$ -$ Freight-in 1,232.00$ 1,543.00$ 1,765.00$ 1,398.00$ 1,475.00$ Indirect Expenses 55.00$ 126.00$ 141.00$ 102.00$ 99.00$ Labor - Sales 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ Advertising/Marketing Expense 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ Promotional Distributions 1,100.00$ 1,300.00$ 1,500.00$ 1,200.00$ 1,050.00$ Supplies 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ Insurance Expense 450.00$ 450.00$ 450.00$ 450.00$ 450.00$ Salary Expense 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ Legal & Professional Fees 2,000.00$ Property Tax Expenses 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ Interest Expense 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ Rent Expense 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ Utilities Expense 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$

TOTAL OUTFLOWS 151,500.00$ 191,087.00$ 214,169.00$ 259,943.00$ 241,400.00$ 233,324.00$

BEGINNING CASH -$ 648,500.00$ 624,913.00$ 597,744.00$ 547,801.00$ 517,901.00$ Net Change 648,500.00$ 23,587.00$ 27,169.00$ 49,943.00$ 29,900.00$ 23,824.00$ ENDING CASH 648,500.00$ 624,913.00$ 597,744.00$ 547,801.00$ 517,901.00$ 494,077.00$

Cash Flow Projections Continued

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total

97,000.00$ 103,000.00$ 111,000.00$ 120,000.00$ 126,000.00$ 134,500.00$ 147,500.00$ 1,358,500.00$ 59,500.00$ 62,500.00$ 63,000.00$ 58,000.00$ 50,000.00$ 54,000.00$ 59,000.00$ 668,000.00$ 51,500.00$ 52,000.00$ 49,000.00$ 57,000.00$ 60,000.00$ 62,500.00$ 64,500.00$ 600,500.00$

208,000.00$ 217,500.00$ 223,000.00$ 235,000.00$ 236,000.00$ 251,000.00$ 271,000.00$ 3,427,000.00$

150,000.00$ 1,500.00$

102,000.00$ 107,000.00$ 113,000.00$ 119,000.00$ 118,000.00$ 123,000.00$ 127,000.00$ 1,322,000.00$ 65,000.00$ 71,500.00$ 82,000.00$ 86,500.00$ 83,000.00$ 89,500.00$ 94,800.00$ 912,800.00$ 24,009.00$ -$ -$ 27,183.00$ -$ -$ 28,470.00$ 101,499.00$ 1,487.00$ 1,506.00$ 1,492.00$ 1,601.00$ 1,532.00$ 1,591.00$ 1,645.00$ 18,267.00$

76.00$ 87.00$ 144.00$ 157.00$ 132.00$ 115.00$ 101.00$ 1,335.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 13,900.00$ 166,800.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 9,400.00$ 112,800.00$ 1,000.00$ 1,550.00$ 1,750.00$ 1,600.00$ 1,600.00$ 1,540.00$ 1,400.00$ 16,590.00$

13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 13,500.00$ 162,000.00$ 450.00$ 450.00$ 450.00$ 450.00$ 450.00$ 450.00$ 450.00$ 5,400.00$

3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 3,200.00$ 38,400.00$ 2,000.00$

750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 9,000.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 1,400.00$ 16,800.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 5,500.00$ 66,000.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 1,600.00$ 19,200.00$

243,272.00$ 231,343.00$ 248,086.00$ 285,741.00$ 253,964.00$ 265,446.00$ 303,116.00$ 3,122,391.00$

494,077.00$ 458,805.00$ 444,962.00$ 419,876.00$ 369,135.00$ 351,171.00$ 336,725.00$ 304,609.00$ 35,272.00$ 13,843.00$ 25,086.00$ 50,741.00$ 17,964.00$ 14,446.00$ 32,116.00$ 304,609.00$

458,805.00$ 444,962.00$ 419,876.00$ 369,135.00$ 351,171.00$ 336,725.00$ 304,609.00$