New York City Business Plan Competition 2010-2011

Report
Est. 2005
Est. 2005
Statement of Purpose
•
To educate current and potential investors on the company’s
recent and projected performance as well as the company’s
goals and objectives and its ability to achieve them.
Est. 2005
Mission Statement
•
We are committed to promoting an active, healthy lifestyle
through the sale of our extreme sports products. Also, to
maintain ethics which correlate to our eco-friendly, healthconscious efforts by offering products in-tune with our
environmental and human needs.
Maintaining
ethics
Eco Friendly
mindset
Active Healthy
Lifestyle
Est. 2005
Business Goals and Objectives
•
•
•
•
•
•
Increase Customer Satisfaction
Achieve Annual Sales Exceeding $211,000
Establish Firm as an Eco-Friendly and Health-Conscious Org.
Reduce Accounts Receivable by a Minimum of 50%
Expand Presence in International Market
Secure a Loan of $100,000
Est. 2005
Company Description
•
•
•
•
•
Established December 2005
Company Structure : C-Corporation
Forest Hills, NY
Sell Bikes, Skateboards, Snowboards, Inline Skates, Electric
Scooters, Surf boards and Accessories
19 Multicultural Diverse Employees
Est. 2005
Management
Functions
CEO
Fahad Anis
VP – Admin. &
HR
VP – Sales and
Marketing
Arsen Shimonov
Karen Ramirez
Arpit
VP – Web
Design
Rachel Jones
VP – Accounting
Sheyenne
Mammina
Jason
Ho Kwong
Angel
Assistant VP
Assistant VP
Assistant VP
Assistant VP
Jasmine
Daniela
Andrew
Aashish
Daniel
Mohit
Clifford
Anzhelika
Kevin
Peter
Est. 2005
Marketing Plan
Industry and Competitive Analysis
Real World
•Bikes: 18.5 Million Were Sold
•Snowboards: Decrease 9%
Virtual World
•Competition:
•Main competition is located in Queens
•Skateboards: $2.41 Million Were Sold
•Inline Skates: 26% Increase
•Scooters: 41.5% Increase
•Surfboards: 7.48 Billion Were Sold
•No other firm offers the assortment of
products like we do
Est. 2005
Target Market
• Age- 13 to 25
•Income- V.E . Employee Wage Rate
Geographic
•International
-North America
-South America
-Asia
-Europe
Demographic
•United States
•Trade Fair Attendees
•VE Employees
Psychographic
•Environmental Conscious
(Go Green)
•Health Conscious Extreme
Sport Oriented
Est. 2005
Marketing Mix- The 5 P’s
Product
•Bikes
•Snowboards
•Skateboards
•Inline Skates
•Scooters (Electric Scooters)
•Surf Boards
•Accessories
For
Both
Male
and
Female
Est. 2005
Marketing Mix (Continued)
Price
• Range from $0.99 (Accessories) to over $20,000 (Bikes)
Est. 2005
Marketing Mix (Continued)
Placement
•Trade Fairs
•Website
•Direct Mail
Est. 2005
Marketing Mix (Continued)
Promotion
•Flyers
•Trade Fairs
•Website
•Newsletters & Magazines
Est. 2005
Marketing Mix (Continued)
Positioning
• Leader in Extreme Sports Equipment
• Eco Friendly / “Green” Company
• A Company that Supports its Local Community
Est. 2005
Company Operations
• Acquiring Products
• Storing Products
• Distribution of Products
• Location Benefits
Est. 2005
Economic Conditions
•
Prime Interest Rate is
3.25%
•
National Unemployment
Rate is 9.6%
•
Current Rate of Inflation
is 1.2 %
•
Real GDP Growth is 1.7%
Est. 2005
SWOT Analysis-Internal Audit
Strengths
Weaknesses
• Excellent Communication
• The High Payroll
• New Fully Functional Website
•Accounts Receivable
• Multicultural Background of Our Employees
• High Educational Level of Employees
Est. 2005
SWOT Analysis-External Audit
Opportunities
Threats
•Trade Fairs
•Locally Competitive Firm
• Public Awareness of “Going Green”
• The Turbulent Economy
• Mass Media’s Focus on Healthy Lifestyles
•New Loan
•Social Responsibility Programs
Est. 2005
Business Risks
• Turbulent U.S Economy
• Philanthropy Programs
• Collections and Accounts Receivable
• International Expansion
Est. 2005
Balance Sheet
As of 10/31/2010
Assets
Total Current Assets……….… $112,443 (A)
Total Fixed Assets……….…... $10,800
Total Assets ……………………………………………..…… $123,243
Liabilities and Shareholders’ Equity
Total Current Liabilities….....$1,678
Long Term Liabilities………….$0 (B)
Shareholder’s Equity
Capital Stock………………..….. $90,000
Retained Earnings……………. $31,565
Total Liabilities and Shareholders’ Equity…..…. $123,243
Footnotes
(A) – New Accounts
Receivable Strategy
(B) – Secure New Loan
Est. 2005
Projected Income Statement
For the Year Ending April 30, 2010
Projected
April 30, 2011
Projected
April 30, 2012
Sales Revenues
Bikes……………………………… $191,580
Skateboards………………….. $45,320
Snowboards………………….. $33,990
Scooters/Inline Skates…... $15,000
Net Sales……………….……………. $281,602
Cost of Goods Sold………….….. $168,961
Gross Profit........................... $112,641
Total Operating Expense....... $93,920
Income from Operations....... $18,721
Corporate Income Tax........... $2,808
$204,600
$48,400
$36,300
$16,500
$301,213
$180,728
$120,485
$95,170
$25,315
$3,797
$225,060
$53,240
$39,930
$18,150
$331,334 (A)
$198,800 (B)
$132,534
$95,500 (C)
$39,034
$5,855
Net Income After Taxes………..$15,913
$21,518
$33,179
Footnotes
(A) - Based on 5%
Increase
(B) - Based on 40%
Markup
(C) - Depreciation
Expenses
Est. 2005
Projected Cash Flows
For the Year Ending April 30, 2010
Projected
April 30, 2011
Projected
April 30, 2012
Cash Beginning Balance
$75,000
$84,000
$99,000
Sales
$270,602
$295,000
$315,000 (A)
Total Cash Receipts
$290,450
$305,000
$335,000
Cost of Merchandise
$168,961
$180,728
$198,800
Salaries
$41,000
$46,000
$46,000 (B)
Total Cash Payments
$281,450
$290,000
$302,000
Ending Cash Balance
$84,000
$99,000
$132,000
Receipts of Cash:
Payments of Cash:
Footnotes
(A) - Trade Fairs
(B) – Our Largest
Revenue
Generator
Est. 2005
Break-Even Analysis
*1 Unit is One Bike at a Cost of $325.
*Must Sell 652 Units to Break Even
Est. 2005
Summary
Increase Sales & Customer Satisfaction - New Product Lines &
Customer Incentives
 Reduce Accounts Receivable- VE Law
 Increase Presence in International Market- New Loan to Expand
Company
 Establish Firm as Eco and Health Conscious- Initiating
Philanthropy Outreach Programs , New Eco and Health Conscious
Products

Est. 2005

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