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 King s Tint and Decals Where our customers get the royal treatment Business Plan December 2018 Owner & Founder

4 TABLE OF CONTENTS EXECUTIVE SUMMARY...1 PERSONAL FIT...2 OPPORTUNITY...2 SOLUTION...3 CUSTOMERS...3 DIFFERENTIATORS...5 EXTRAS...6 MARKETING...6 FINANCIAL PROJECTIONS... ATTACHED

5 EXECUTIVE SUMMARY Opportunity Purpose Solution At King s Tint and Decals we focus on customer satisfaction and to provide quality service at an affordable rate and to provide the best shade and promotional needs. Small businesses are on the rise in Texas and they need fleet graphics and signs for advertisements. New and used car owners need window tint for heat resistance. Graphic design and window tint for our customers fleet, businesses and vehicles. We have experienced installers that can hand cut and customize your design or window tint so that you can stay cool and advertise Customers Differentiators Extras Personal vehicles Commercial fleets Residential, so they can save on the energy bill and resist the heat. What makes us different is the experience. I have four years of installing and two years managing. The focus on detail plus my artistic ability. In addition, we will be a mobile service. A good friend of mine has his own shop (audio and car wash detail) and he is willing to help me piggy back from there. Marketing Start-up Costs Financials & Extras Through social media, fliers, going door to door, and promoting through word of mouth. Owner Inv. - (Cash) $ 10,000 Owner Investment (Equipment) $ - Vehicle/equipment Loan $ - Unsecured Debt/Loan $ 20,000 Equity Investment $ - Total start up costs: $ 30,000 Sales: $ 270, % COGS - 0% Gross profit 270, % Overhead 73,600 27% Pretax income 197,100 73% Tax expense 49,200 18% Owner withdrawals 27,500 10% Net income $ 120,300 44% Personal Fit As the founder and owner of King s Tint and Decals, I will oversee all functions of the business. I will be responsible for the daily operations which includes production, development, installation and marketing. I have over six years of experience in installation and managing. I will apply these same skills to this venture and create a professional and respectful environment at King s Tint and Decals.

6 PERSONAL FIT As the founder and owner of King s Tint and Decals, Arturo will oversee all functions of the business. He is responsible for the daily operations which include production development, installation, and marketing. Arturo has over five years of experience in installation and customer service from various jobs such as Alamo Auto Supply and Blue Diamond Tint. During this time, Arturo developed skills in management and customers relations. He will apply these same skills to this venture, creating a professional and respectful work environment at King s Tint and Decals. Arturo has earned his General Equivalency Diploma at Wyndham School District. He has completed Quest for Authentic Manhood, Cognitive Intervention and is enrolled in PEP, where he will earn a certificate in Entrepreneurship from the Hankamer School of Business at Baylor University. OPPORTUNITY Explanation: Small businesses are on the rise in Texas and they need fleet graphics and signs for advertisements. New and used car owners need window tint for heat resistance. Can I solve the problem given my skills and personality? I have over six years of experience in window tint and vehicle graphic and signs. Is the customer looking for a more holistic solution than his or her immediate complaint? We will provide custom designs and shades to accommodate our customers. Do I need to do all of the work myself or can I hire others to help me and still maintain quality? I will need to hire experienced window tint installers and graphic designers. Is there growth potential to expand my business, or is this a dying market? It s a growing market and will not slow down any time soon. How soon can I get my business up and running? My business will be up and running in the summer of Is this something that will take a lot of cash to get started or is it more of a question of hustle? Small cash start up and advertisement. Is this something I would be proud to share with my family and parole officer? I am very proud to have a legal business open. Is the opportunity (Activity and Start Date) consistent with potential parole restrictions? I have no restrictions and it s a day time job. Would my business start as a part-time venture or need to be full time? This venture will be full time. King s Tint and Decals 2

7 SOLUTION Explanation: Graphic design and window tint for our customers fleet, businesses and vehicles. We have experienced installers that can hand cut and customize your design or window tint so that you can stay cool and advertise. Is what I am offering filling the customer s real need? What we offer are solutions to small businesses to advertise and car owner s privacy. What are the benefits (not features) that I am providing? Advertisement for your business, staying cool and looking cool in your car. Why can I do this better than another business (competitor)? We have professional and experienced installers and customer relationships are our priority. How will I deliver this better idea to my customers? One on one conversations for a better understanding of our service. Is my delivery (retail store, home service, etc.) consistent with how I will produce the service (one-day delivery, hand-made products, etc.)? We strive to put out the highest quality and the latest techniques. Is my solution consistent with my passion for selling? We have a passion for designing and installing. Is the price of my solution equal to or less than the customer s pain? Our prices vary on makes and models or square footage. Is the approximate cost of my solution lower than the price? Depending on how much material is used. Do I need a fixed location (Storefront) or is this a mobile business? We will need a shop for installation and storage. Do I offer a guaranty or return policy? Yes, we will offer a three year warranty. CUSTOMERS Explanation: This business will target customers with personal vehicles, home owners and small businesses. Demographics: Will my service have different appeal to men versus women? We will be serving men and women s personal vehicles, RVs, tractor trailers, and boats. What is my ideal customer s age (children, young adult, middle aged, mature)? The ideal customer will be between the ages of 18-to-70 years old. Does my customer need to be married, single or does it matter? My customers can be married or single. Do language or ethnicity differences improve or limit my ability to sell to my ideal customer? King s Tint and Decals 3

8 Language or ethnicity differences do not matter. What aspect of my ideal customer am I appealing to (outdoors person, health conscious, nerd, their personal image, environmental concerns, recreation, etc.)? This type of service will appeal to the customer s health personal image by the use of car window tint and custom vinyl. Income: Does my customer need a certain income (rich, middle class, poor)? Income level is middleclass and above. Does my customer need to own specific assets (car, house, boat)? My customers need to have a car, house or small business. Location: Where will I sell to my customers (their home, their workplace, on the street, online, my store, an event like trades day)? Customers can come to my store or I can go to them. Do I go to my customer (home service) or does my customer come to me? I will perform this service mainly at my store. I will do business at their location as well. What neighborhood will my ideal customer live/work in (River Oaks/Highland park, a suburb, or small rural community)? Neighborhoods that my customers come from don t matter. How close are my customers geographically located (live close to each other or spread all over the city)? Time is money. My customers will need to be in a 15 mile radius. How easily can I find this customer (one at a time or they will provide referrals)? I will sell to my customers individually or generate leads from referrals. Other: Can I reach these individuals as a group or do I need to find and sell to them individually? I can sell to my customers either in a group or individually. Once I sell to a customer, what is the likelihood that they will buy from me again? Because of the high quality of my service, my customers will buy from me again. King s Tint and Decals 4

9 DIFFERENTIATORS My Competitors Direct or Indirect El Paso Tint Direct Newspaper ads Promotion Price Their Advantages Their Disadvantages My Differentiators $130 Good quality film Long wait, ineffective installers Quality service and fast Blue Diamond Audio and Tint Indirect Flyers, radio $105 Family oriented and fast Small market Quality service and fast Alamo Auto Supply Indirect Radio $110 Well known Long wait, ineffective installers Quality service and fast Audio Express Indirect Flyers $100 Well known Long wait, ineffective installers Quality service and fast Chihuahua Sounds Indirect Flyers $100 Convenient Small market Quality service and fast King s Tint and Decals 5

10 EXTRAS External Extras: Do you have a connection with a supplier in your industry? Yes, I have a connection that will supply me with my products. Do you have access to a favorable location for your business? Yes, I will piggyback through my cousin s business. Are you going to be the first company of your type in your chosen area operations? There is one other business in the area, but they are focused on audio. I also have local business owners that will work with me. Internal Extras: Do you have a new or cutting edge concept? I have over six years of experience in this industry and my attention to quality and details are excellent. Will you be able to offer specialized or flexible scheduling that your competitors cannot match initially? Yes, we are able to offer flexible scheduling. Are you an especially charming or personable person? I am a very charismatic person. MARKETING Message: What are three things your company name (with no other information provided) says about your company? We have experienced installers that focus on quality and detail in window tinting and vinyl graphics. What is your tagline? Where our customers get the royal treatment. How does your name and tagline make you different than your competitors? My tagline and name describes exactly what we do- we perfect it! Can your message be effectively conveyed through multiple types of media? Yes. It can be effectively conveyed through media. Is your message effective across different demographics? My message is very effective and people will know exactly what we do. Is your pricing consistent with the market for similar offerings? Yes. My pricing is consistent with the market. Is your pricing consistent with the degree of personalization? Our pricing is consistent with different makes and models, but our prices will vary for fleets and car dealerships. Media: What are three types of media you will use to reach your customers? I will market through the passing out of business cards, fliers and vehicle advertising wraps. King s Tint and Decals 6

11 How many potential typical customers (not just total people) can you reach each month using the types listed above? I can reach up to 500 customers through advertisements. Once you ve reached your typical customer, how many will actually buy from you? I would expect to do business with at least 100 of them. For each of the three, what do you think the estimated cost will be? Business cards-$20, fliers-$15 and the vehicle advertising wraps which I will be using-priceless. For each cost estimate, is this a one-time expense up front or a recurring monthly charge? The business cards and fliers will be once every three months. The advertising wraps, once a year-priceless. How will you collect customer reviews? Through social media (online reviews) and in-store paper ballots. King s Tint and Decals 7

12 START-UP COST Owner's name Company name Industry Kings Tint & Decals Automotive Start-up Costs Year 1 Assumption 4 - Total Uses Paid or Non-Depreciable Costs contributed in 1 marketing, business cards, fliers 250 cell phone purchase 150 car/truck down payment, if leased 2,000 permits 150 supplies, office & misc. 200 Uniforms 300 Website Development 500 Insurance 1, Cash needed for start-up expenses 5,050 Depreciable Costs Paid or contributed in 1 Equipment Financing (Additional to amount paid) Depreciable Assets company car, truck or van - company trailer - computer, printer, fax 6,000 6,000 tools and equipment 10,000 10, building/office deposit N/A N/A beginning cash balance N/A N/A Cash needed for start-up assets 16,000-16, assumed life (months) 267 monthly depreciation Total start up cost 21,050 Assumption 5 - Total Sources Cash owner will contribute to the company 10,000 33% Value of owner's assets contributed to company 0% Vehicle loan and other equipment debt (see note 7 for financing) - 0% Unsecured debt, if applicable (for example Kiva loan) 20,000 67% Outside equity investment, if applicable 0% Total start up cost, total sources 30, % King s Tint and Decals 8

13 FINANCIALS dba Kings Tint & Decals 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 Window Tint 1 Coupe, 4 door Sedan, SUV Vehicle Wrap 1 Commercial Vehicle Wrap Price per unit % 2, % 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 window film 0% vinyl sheets 0% 0% cost 2 description 0% 0% 0% cost 3 description 0% 0% 0% cost 4 description 0% 0% 0% Total variable costs - 0% - 0% - 0% Income statement gross profit per unit % 2, % - 0% hours rate hours rate hours rate Owner's labor charge - 0% - 0% - 0% Pro forma gross profit % 2, % - 0% Start-up Total Year Window Tint sold ,507 Vehicle Wrap sold sold - total revenue $ 18,060 $ 20,400 $ 29,000 $ 33,700 $ 27,850 $ 33,620 $ 28,700 $ 26,500 $ 24,900 $ 14,240 $ 13,800 $ 270,770 total cost of sales $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - total income statement gross profit (excludes owner labor) $ 18,060 $ 20,400 $ 29,000 $ 33,700 $ 27,850 $ 33,620 $ 28,700 $ 26,500 $ 24,900 $ 14,240 $ 13,800 $ 270,770 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 $ - principal, beginning Interest rate 8.0% interest expense Loan term (months) 36 principal payment ly payment - principal, ending Start-up financing, see Start-up Costs sheet Amount borrowed $ 20,000 principal, beginning 20,000 19,484 18,966 18,445 17,923 17,398 16,871 16,342 15,811 15,277 14,741 Interest rate 5.0% interest expense Payback period (months) 36 principal payment (516) (518) (520) (523) (525) (527) (529) (531) (534) (536) (538) (5,797) Grace period (months) - principal, ending 19,484 18,966 18,445 17,923 17,398 16,871 16,342 15,811 15,277 14,741 14,203 ly payment $ 599 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 1,440 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 30,240 Assumption 9 - Equipment Purchases, after start-up Description Total Year

14 dba Kings Tint & Decals Projected Income and Cash Flow Statements Year 1 Assumptions Start-up First Year % of Total Revenue Revenue 2 Window Tint 6-10,560 15,400 16,500 18,700 20,350 21,120 18,700 16,500 9,900 9,240 8, ,770 61% Vehicle Wrap 6-7,500 5,000 12,500 15,000 7,500 12,500 10,000 10,000 15,000 5,000 5, ,000 39% line not used % Total revenue - 18,060 20,400 29,000 33,700 27,850 33,620 28,700 26,500 24,900 14,240 13, , % Cost of Goods Sold 2 Window Tint % Vehicle Wrap % line not used % Total COGS % Gross profit - 18,060 20,400 29,000 33,700 27,850 33,620 28,700 26,500 24,900 14,240 13, , % Expenses 2 Auto or truck lease ,300 1% Depreciation ,933 1% Gasoline & fuels - - 0% Insurance - bonding ,650 1% Insurance - vehicle ,650 1% Interest - equip & start up % Marketing ,550 1% Office - rent - 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 16,500 6% Office - insurance ,650 1% Office - telephone ,100 0% Office - utilities ,750 1% Payroll - not owner and not in 8-1,440 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 30,240 11% COGS Payroll taxes (9%) 6 & ,722 1% Permits % Supplies ,300 0% Tax service - - 0% Telephone - cellular ,030 0% Start-up expenses 2, ,300 1% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% Total expenses 3,050 5,000 6,567 6,565 6,563 6,561 6,558 6,556 6,554 6,552 6,550 6,547 73,622 27% Taxable profit (loss) 1 (3,050) 13,060 13,833 22,435 27,137 21,289 27,062 22,144 19,946 18,348 7,690 7, ,148 73% Tax (expense) benefit 1 (5,961) (17,715) (17,288) (8,323) (49,287) -18% Owner's withdrawals 1 - (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (27,500) -10% Net profit (loss) (3,050) 10,560 5,372 19,935 24,637 1,074 24,562 19, ,848 5,190 (3,570) 120,361 44% Depreciation ,933 Equipment purchases 3 (16,000) (16,000) Principle, equipment loan Repay debt financing 7 20,000 (516) (518) (520) (523) (525) (527) (529) (531) (534) (536) (538) 14,203 Owner contribution 3 10, ,000 Equity investor Net cash flow 10,950 10,311 5,121 19,681 24, ,301 19,381 (106) 15,581 4,921 (3,841) 131,498 Cash, period start - 10,950 21,261 26,382 46,063 70,444 71,260 95, , , , ,339 - Cash, period end 10,950 21,261 26,382 46,063 70,444 71,260 95, , , , , , ,498 The accompanying assumptions are an integral part of this financial statement.