Business Plan

Business Plan

Company Overview

The business that we are planning to execute is of a shoe sore, which would be specializing in Athlete's footwear. The business will be located in Detroit and will target all age groups and professional athletes as well. The store will be located near the main University of Detroit which would enable the potential customers to reach the place with ease. This report covers the business plan for this particular shoe store business, focusing on its financial aspects.

Sales Strategy

The shoes will be designed in order to meet the current and future fashion requirements. Along with that, we will be introducing a sales incentive program as well which would enable us the offer different bonuses in regards with long term sales relationship. The short term goal for us after the start up would be to gain almost 55% of our customer returns in the span of 8 months after the commencement of business. Special training sessions will be arranges for sales force in order to enhance our chances of converting existing customers into long term customers and potential customers into realized customers.

Market Segmentation

The market for this business is divided into two major groups, runners and non runners. In this section of our business plan, we will be looking into details of the market segments we will be focusing on

Runners

This section or segment of the market will include all the professional runners in the area or professional sports person who want real athletics shoes to enhance their performance along with comfort the high quality shoe. This section will also include all the potential clients who are pursuing to be professional runners or sportsmen

Non-runners

This section will include all those individuals who are not professional runners but are in their student life and want to be professional runners in future. This segment will also cater all those individuals who are regular in jogging and running just to keep up their health and are not professional runners.

Financial Plan

Before going into details of the forecasted financial statements, we need to look and analyze our state cost in details as this would set the tone for the other factors to be incorporated.

Setting up cost

Assets

Cash

$ 28,280.00

Start-up Inventory

$ 85,850.00

Spares and tools

$ 1,010.00

Fixed Assets

$ 70,700.00

Total Assets

$185,840.00

Owner's Equity and Liabilities

Liabilities

Initial amount borrowed

$ 20,200.00

Long-term Liabilities

$151,500.00

Accounts Payable (Outstanding Bills)

$ 2,020.00

Total Liabilities

$173,720.00

Owner's Equity

Investor 1 $ 70,700.00

Investor 2

$ -

Loss at initial phase

$ (58,580.00)

Total Capital

$ 12,120.00

Total Capital and Liabilities

$185,840.00

Start-up Expenses

Accounts specialist

$ 1,010.00

legal advisor

$ 2,525.00

Printing and stationary

$ 1,010.00

Shop designer

$ 2,525.00

Training of employees

$ 3,030.00

Insurance of the shop

$ 606.00

Deferred rent

$ 4,747.00

Pre launch marketing

$ 5,050.00

Government fee

$ 25,250.00

Misc expenses

$ 12,827.00

Total Start-up Expenses

$ 58,580.00

Total Funding

$244,420.00

Expenses

$ 58,580.00

Assets

$185,840.00

Total

$244,420.00

Forecasted Income Statement

The grid below shows the forecasted income statement for our ...