hickson hanger business plan. problem have you ever noticed that you have tops, bras and countless...
TRANSCRIPT
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