Business Plan Competition December 6-7, Prison Entrepreneurship Program P.O. Box Houston, TX (832)

Transcription

1 Business Plan Competition December 6-7, 2018 Prison Entrepreneurship Program P.O. Box Houston, TX (832)

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3 Flawless Imaging & Technology (FIT Customs) The perfect fit for your custom event Business Plan December 2018 Owner & Founder

4 TABLE OF CONTENTS EXECUTIVE SUMMARY...1 PERSONAL FIT...2 OPPORTUNITY...2 SOLUTION...3 CUSTOMERS...3 DIFFERENTIATORS...6 EXTRAS...7 MARKETING...7 FINANCIAL PROJECTIONS... ATTACHED

5 EXECUTIVE SUMMARY Opportunity Purpose Solution Making it easier for people and companies to afford professional, custom items and photos with model quality. People are not being able to get quality keepsake items and photographs at an affordable price. I am going to solve the problem of not being able to attain professional quality custom items photos by providing them at affordable prices. Customers Differentiators Extras I serve big companies doing on boarding with custom items and the public with custom items and photography. What makes me different from my competitors is my creativity and my custom puzzles. I know other people who have somewhat similar businesses to help me. Marketing Start-up Costs Financials & Extras I will reach my customers through the Internet and word of mouth. Owner Inv. - (Cash) $ 5,000 Owner Investment (Equipment) $ - Vehicle/equipment Loan $ 10,000 Unsecured Debt/Loan $ 5,000 Equity Investment $ - Total start up costs: $ 20,000 Sales: $ 84, % COGS 1,500 2% Gross profit 83,000 98% Overhead 41,100 49% Pretax income 41,800 49% Tax expense 10,400 12% Owner withdrawals 26,000 31% Net income $ 5,300 6% Personal Fit I have a solid foundation for my business because I am a very creative person. I like using my creativity to make projects that are always eye catching and professionally graded.

6 PERSONAL FIT Melvin is the founder and owner of Flawless Imaging & Technology (FIT-Customs). Melvin will be responsible for all aspects of the business including, staffing, management, and event coordination. Melvin brings to the table one year of experience in printing and imaging technology with a very creative state of mind. Melvin has years of experience in welding, pipe fitting, using a cutting torch, and crane operator in the oil field industry. Additionally, he has two years of experience working for an advertisement agency. Melvin will graduate the Prison Entrepreneurship Program earning a certificate from Baylor University in December of He has reinvented himself and decided to professionally pursue his passion of being creative and taking ideas to the next level with a flawless end result. OPPORTUNITY Explanation: I am a company that will provide promotional Items for weddings and corporate events. Can I solve the problem given my skills and personality? Yes.I can solve problems given my skills personality Is the customer looking for a more holistic solution than his or her immediate complaint? Yes. The customer will be looking for a bigger solution than their complaint Do I need to do all of the work myself or can I hire others to help me and still maintain quality? Yes.I can hire others to help and still maintain quality. Is there growth potential to expand my business, or is this a dying market? Yes.there is growth potential to expand my business. How soon can I get my business up and running? I will get my business up and running as soon as possible upon my release Is this something that will take a lot of cash to get started or is it more of a question of hustle? I will say that the only cash will come from the start up. Is this something I would be proud to share with my family and parole officer? Yes.I would be willing to share this with my family and parole officer. Is the opportunity (Activity and Start Date) consistent with potential parole restrictions? Yes. The opportunity is consistent with potential parole restrictions. Would my business start as a part-time venture or need to be full time? My business start as a part-time venture Flawless Imaging & Technology (FIT Customs) 2

7 SOLUTION Explanation: To satisfy the need for quality photography work. Is what I am offering filling the customer s real need? Quality photographed items for good quality memories. What are the benefits (not features) that I am providing? Quality memories. Why can I do this better than another business (competitor)? Because of my creative style. How will I deliver this better idea to my customers? I have an eye for things. Is my delivery (retail store, home service, etc.) consistent with how I will produce the service (one-day delivery, hand-made products, etc.)? Yes. I will have a fresh start. Is my solution consistent with my passion for selling? No. It is not consistent with my passion. Is the price of my solution equal to or less than the customer s pain? Yes. It is equal to customer s pain. Is the approximate cost of my solution lower than the price? About equal. Do I need a fixed location (Storefront) or is this a mobile business? Storefront but we deliver. Do I offer a guaranty or return policy? Yes, 100% return. CUSTOMERS Explanation: My business will target businesses just starting out and all events from sporting clubs, birthday parties, weddings and all upcoming ventures. Demographics: Will my service have different appeal to men versus women? No! My business will appeal to any venture needing exposure. My business will appeal to men and women. What is my ideal customer s age (children, young adult, middle aged, mature)? The ideal age will be from 18 to 35. Does my customer need to be married, single or does it matter? No! It doesn t matter if my customer is single or married. Do language or ethnicity differences improve or limit my ability to sell to my ideal customer? No. language or ethnicity does not matter. Flawless Imaging & Technology (FIT Customs) 3

8 What aspect of my ideal customer am I appealing to (outdoors person, health conscious, nerd, their personal image, environmental concerns, recreation, etc.)? My service will appeal to the customer s personal image. Income: Does my customer need a certain income (rich, middle class, poor)? I target customers with any income from poverty to rich. Does my customer need to own specific assets (car, house, boat)? Assets do not matter. Location: Where will I sell to my customers (their home, their workplace, on the street, online, my store, an event like trades day)? I will sell to my customers online or at events. Do I go to my customer (home service) or does my customer come to me? I will go to them or they can come to my storefront location. What neighborhood will my ideal customer live/work in (River Oaks/Highland park, a suburb, or small rural community)? My customers will live in any neighborhood in Houston. How close are my customers geographically located (live close to each other or spread all over the city)? Time is money. My customers can live pretty much anywhere in Houston. How easily can I find this customer (one at a time or they will provide referrals)? I can easily find my customers. I will also have referrals. Other: Can I reach these individuals as a group or do I need to find and sell to them individually? I can sell individually or to a group. Once I sell to a customer, what is the likelihood that they will buy from me again? Once I sell to them, they will see the quality and keep coming back for more. Am I selling to a wholesaler, retailer or does it matter? No. I plan to in the future. What industry is my customer in? My customers are in the printing industry. What size customer do I want to serve (large/small, single/multiple locations)? I will serve multiple locations. Will my customer require special insurance (construction bonding, liability insurance)? My customers will not require insurance and bonding. Does my customer require 24/7 service? My customers will not require 24/7 service. Do I have the capacity to meet the customer s demands? I will meet their needs! Flawless Imaging & Technology (FIT Customs) 4

9 Will the size of a customer allow me to develop other clients or will I be hostage to one company? I will also develop other clients. Flawless Imaging & Technology (FIT Customs) 5

10 DIFFERENTIATORS My Competitors Direct or Indirect Promotion Printer shop Direct Shop s already open. Price High-low varies. Their Advantages Target previous customers. Their Disadvantages Doesn t have my creative touch. My Differentiators Custom items. Kinko s Direct Locations High-low varies Target previous customers. Doesn t have my creative touch. My items are custom. My customers (do it yourself) Indirect Personal media High-low varies Do it their selves. Lack of innovation. Artistic and creative touch that separates my items from the mundane. Hobby Lobby Indirect Locations High-low varies Previous customers Lack of creativity and true artistry. Customs items that far outshine the norm. Specialty Promotions Indirect Previous customers High-low varies Previous customers Limited items. Don t have my creative touch. Flawless Imaging & Technology (FIT Customs) 6

11 EXTRAS External Extras: Do you have a connection with a supplier in your industry? I do not have a supplier at the time, but I know where to acquire a good one. Do you have access to a favorable location for your business? I access my favorable locations through professional networking. Are you going to be the first company of your type in your chosen area operations? I think I will be the first company of this kind in my area. Internal Extras: Do you have a new or cutting edge concept? It will be my customized puzzles. Will you be able to offer specialized or flexible scheduling that your competitors cannot match initially? A previous customer will be able to contact us at various hours through the Internet or texting. Are you an especially charming or personable person? I am both charming and personable. MARKETING Customers My primary target will be businesses just starting up as well as all events and weddings, and up and coming ventures. Message What are three things your company name (with no other information provided) says about your company? It says we are certified professionals, very creative and produce flawless work. What is your tagline? We have the perfect fit for your custom event. How does your name and tagline make you different than your competitors? Everything is flawless and customized by me. Can your message be effectively conveyed through multiple types of media? Yes, our message can be communicated through multiple media. Is your message effective across different demographics? Yes, people in all areas will be able to hear the name, Flawless Imaging and Technology and know what we do. Is your pricing consistent with the market for similar offerings? Yes, I offer competitive pricing to outdo competition. Is your pricing consistent with the degree of personalization? Yes, the size of the job will determine some pricing but will not affect the quality of the items. Flawless Imaging & Technology (FIT Customs) 7

12 Media What are three types of media you will use to reach your customers? We will use social media, word of mouth and business cards. How many potential typical customers (not just total people) can you reach each month using the types listed above? I will seek to reach a minimum of 200 people a month. Once you ve reached your typical customer, how many will actually buy from you? I will be looking forward to doing business with at least 40-to-60 customers a month. For each of the three, what do you think the estimated cost will be? Social media is free, I will make my own business cards, and word of mouth is of no cost. For each cost estimate, is this a one-time expense up front or a recurring monthly charge? Except for the business cards I will make myself, everything else will be free. How will you collect customer reviews? I will have online reviews on my webpage for customers. Flawless Imaging & Technology (FIT Customs) 8

13 Owner's name Company name Industry Flawless Imaging & Technology Printing Start-up Costs Year 1 Assumption 4 - Total Uses Paid or Non-Depreciable Costs contributed in 1 marketing, business cards, fliers cell phone purchase 100 car/truck down payment, if leased permits supplies, office & misc. 250 greenscreen 500 Cash needed for start-up expenses 850 Depreciable Costs Paid or contributed in 1 Equipment Financing (Additional to amount paid) Depreciable Assets company car, truck or van ,000 10,650 company trailer - computer, printer, fax 2,000 2,000 camera 3,000 3,000 lights building/office deposit 3,000 N/A N/A beginning cash balance N/A N/A Cash needed for start-up assets 9,150 10,000 16, assumed life (months) 269 monthly depreciation Total start up cost 20,000 Assumption 5 - Total Sources Cash owner will contribute to the company 5,000 25% Value of owner's assets contributed to company 0% Vehicle loan and other equipment debt (see note 7 for financing) 10,000 50% Unsecured debt, if applicable (for example Kiva loan) 5,000 25% Outside equity investment, if applicable - 0% Total start up cost, total sources 20, % START-UP COST

14 dba Flawless Imaging & Technology EOU, Financing, and Payroll Assumptions Year 1 Assumption 6 - Revenue Model (Economics of One Unit) Product 1 Product 2 Product 3 Product name Product description In store 2 hour - 15 photo photoshoot Mobile 2 hour - 15 photo photoshoot Price per unit % % 0% Cost of one unit hours rate hours rate hours rate Non-owner payroll exp. - 0% - 0% - 0% Non-owner payroll tax 9.0% - 0% - 0% - 0% cost 1 description memory card % memory card % 0% cost 2 description 0% 0% 0% cost 3 description 0% 0% 0% cost 4 description 0% 0% 0% Total variable costs % % - 0% Income statement gross profit per unit % % - 0% hours rate hours rate hours rate Owner's labor charge - 0% - 0% - 0% Pro forma gross profit % % - 0% Start-up Total Year In store sold Mobile sold sold - total revenue $ 4,000 $ 4,000 $ 6,150 $ 6,150 $ 6,150 $ 6,150 $ 8,000 $ 8,000 $ 12,000 $ 12,000 $ 12,000 $ 84,600 total cost of sales $ 75 $ 75 $ 115 $ 115 $ 115 $ 115 $ 150 $ 150 $ 225 $ 225 $ 225 $ 1,585 total income statement gross profit (excludes owner labor) $ 3,925 $ 3,925 $ 6,035 $ 6,035 $ 6,035 $ 6,035 $ 7,850 $ 7,850 $ 11,775 $ 11,775 $ 11,775 $ 83,015 Owner's labor hours (time spent directly related to sales) Assumption 7 - Financing Total Year Equipment financing, see Start-up Costs sheet amortization schedule Amount borrowed $ 10,000 principal, beginning 10,000 9,864 9,727 9,589 9,450 9,310 9,170 9,028 8,885 8,742 8,597 Interest rate 8.0% interest expense Loan term (months) 60 principal payment (136) (137) (138) (139) (140) (141) (142) (143) (144) (144) (145) (1,548) ly payment 203 principal, ending 9,864 9,727 9,589 9,450 9,310 9,170 9,028 8,885 8,742 8,597 8,452 Start-up financing, see Start-up Costs sheet Amount borrowed $ 5,000 principal, beginning 5,000 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 Interest rate 0.0% interest expense Payback period (months) 24 principal payment (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (2,292) Grace period (months) - principal, ending 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 2,708 ly payment $ 208 Assumption 8 - Payroll, nondirect Total Year # of employees avg hours each employee(s) worked per month, not in EOU above average per hour wage salary expense, exclduing payroll taxes ,200 1,200 6,900 Assumption 9 - Equipment Purchases, after start-up Description Total Year FINANCIALS

15 dba Flawless Imaging & Technology Projected Income and Cash Flow Statements Year 1 Assumptions Start-up First Year % of Total Revenue Revenue 2 In store 6-2,500 2,500 3,750 3,750 3,750 3,750 5,000 5,000 7,500 7,500 7,500 52,500 62% Mobile 6-1,500 1,500 2,400 2,400 2,400 2,400 3,000 3,000 4,500 4,500 4,500 32,100 38% line not used % Total revenue - 4,000 4,000 6,150 6,150 6,150 6,150 8,000 8,000 12,000 12,000 12,000 84, % Cost of Goods Sold 2 In store ,050 1% Mobile % line not used % Total COGS ,585 2% Gross profit - 3,925 3,925 6,035 6,035 6,035 6,035 7,850 7,850 11,775 11,775 11,775 83,015 98% Expenses 2 Auto or truck lease - - 0% Depreciation ,961 3% Gasoline & fuels ,300 4% Insurance - bonding - - 0% Insurance - vehicle ,100 1% Interest - equip & start up % Marketing - - 0% Office - rent - 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 22,000 26% Office - insurance % Office - telephone - - 0% Office - utilities ,100 1% Payroll - not owner and not in ,200 1,200 6,900 8% COGS Payroll taxes (9%) 6 & % Permits - - 0% Supplies % Tax service - - 0% Telephone - cellular ,200 1% Start-up expenses % - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% Total expenses 850 2,986 2,985 2,984 3,637 3,636 3,635 3,961 3,960 3,959 4,285 4,284 41,164 49% Taxable profit (loss) 1 (850) ,051 2,398 2,399 2,400 3,889 3,890 7,816 7,490 7,491 41,851 49% Tax (expense) benefit 1 (257) (1,962) (2,545) (5,699) (10,463) -12% Owner's withdrawals (2,000) (4,000) (4,000) (4,000) (4,000) (4,000) (4,000) (26,000) -31% Net profit (loss) (850) ,051 2,398 (1,563) (1,600) (111) (2,655) 3,816 3,490 (2,208) 5,388 6% Depreciation ,961 Equipment purchases 3 (19,150) (19,150) Principle, equipment loan 7 10,000 (136) (137) (138) (139) (140) (141) (142) (143) (144) (144) (145) 8,452 Repay debt financing 7 5,000 (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) 2,708 Owner contribution 3 5, ,000 Equity investor Net cash flow ,974 2,320 (1,642) (1,680) (192) (2,737) 3,733 3,406 (2,293) 5,359 Cash, period start ,470 4,444 6,764 5,122 3,442 3, ,246 7,652 - Cash, period end ,470 4,444 6,764 5,122 3,442 3, ,246 7,652 5,359 5,359 The accompanying assumptions are an integral part of this financial statement.