HICKSON HANGER

BUSINESS PLAN

PROBLEM

Have you ever noticed that you have tops, bras and countless other clothes that you never wear, just because you can’t find them?

Sick of trying to find a matching bra for your dress or top?

SOLUTION

• Mature Industries– Industries that are experiencing slow or no increase in

demand.• Opportunities: Process innovation and after-sale service innovation

OPPORTUNITY AND TARGET MARKET

THE DIFFERENCE THAN OTHER

• The value chain is the string of activities that moves a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user

• Business model

COMPETITIONMajor brandIKEA

Green Hanger EcoHanger Imported Hanger

Price

Distribution

Branding

Unique

Green awarenessStrength

Marketing

Business Model

MARKETING AND SALES

MANAGEMENT TEAM

FINANCIAL PROJECTION

• General Assumptions and financial indicator• Projected Profit and Loss• Projected Cash Flow• Projected Balance Sheet• Break Even Analysis

General Assumptions and Financial Indicator

The compound annual growth rate of the wardrobe market in the period 2011–16 is predicted to be 6.9%

Start-up cost $8.30. Our source of funding

will be 100% from six founders that is $12.00

Required Start-Up Funds Amount Totals Depreciation

Fixed Assets

Real Estate-Land -$

Buildings - 20.00 years

Leasehold Improvements - 7.00 years

Equipment 500 7.00 years

Furniture and Fixtures - 5.00 years

Vehicles - 5.00 years

Other Fixed Assets - 5.00 years

Total Fixed Assets 500

Operating Capital

Pre-Opening Salaries and Wages -

Prepaid Insurance Premiums 2,000

Inventory 1,000

Legal and Accounting Fees 2,000

Rent Deposits -

Utility Deposits 300

Supplies 1,000

Advertising and Promotions 500

Licenses -

Other Initial Start-Up Costs -

Working Capital (Cash On Hand) 1,000

Total Operating Capital 7,800

Total Required Funds 8,300$

Sources of Funding Amount Totals Loan Rate Term in Months

Owner's Equity 100.00% 12,000

Outside Investors 0.00% -

Additional Loans or Debt

Commercial Loan 0.00% - 7.00% 84.00

Commercial Mortgage -44.58% (3,700) 8.00% 240.00

Credit Card Debt 0.00% - 7.00% 60.00

Vehicle Loans 0.00% - 6.00% 48.00

Other Bank Debt 0.00% - 5.00% 36.00

Total Sources of Funding 55.42% 8,300$

Projected Profit and Loss

• Monthly expenses are $2,303

• Monthly sales reach 300 for the first year and increased 25% for the following year.

Projected Cash Flow

Projected Balance Sheet

Break Even Analysis

MILESTONES

FINANCING

SUMMARY