konstantarakis-tsunamibodyworks-09-13-10
Post on 07-Nov-2014
104 Views
Preview:
TRANSCRIPT
Business Plan
Contact: Voula KonstantarakisPhone: (702) 596-3333
E-mail: voulatsunamicosmetics@yahoo.com
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
2
Table of Contents
Executive Summary............................................................................................4Use of Funds......................................................................................................5Company Ownership..........................................................................................5Company Location..............................................................................................5Mission...............................................................................................................5
Services................................................................................................................6Product Description............................................................................................6
Market Analysis Summary..................................................................................8Market Segmentation.........................................................................................9Market Needs...................................................................................................10Industry Analysis..............................................................................................11Competitive Comparison..................................................................................11
Strategy and Implementation Summary..........................................................13Competitive Edge.............................................................................................13Marketing Strategy...........................................................................................13
Management Summary.....................................................................................15
Financial Indicators...........................................................................................16
Appendix............................................................................................................26
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
3
Executive SummaryTsunami Body Works, LLC (also referred to as “the Company”) is a start-up business headquartered in Las Vegas, Nevada that is scheduled to begin operations in October 2010. The Company will be a unique online retailer offering a wide selection of high-quality, European-formula body care products designed to help women feel beautiful, bolder, and renewed. The Company will utilize state-of-the-art technology to make superior products that feature all-natural ingredients. With a focus on excellent customer service and affordable, high-quality products, Tsunami Body Works intends to achieve a loyal customer base and expand its product line.
Beauty products make up a large segment of the American consumer economy. Within that large grouping, natural cosmetic products have become some of the highest sellers. Tsunami Body Works will provide the highest quality natural cosmetic products, offering unique formulations that have a large and growing need. The Company will be headquartered in Las Vegas, Nevada, one of the world’s premier tourist destinations, and will conduct the bulk of its business via the Internet. Buying products over the Internet has become the norm in the past decade, with any type of product available and usually for a reduced price. Tsunami Body Works will be able to offer customers across the country the highest quality beauty products without having to cater to a specific area of operation.
In order to take advantage of the high-end salons and spas that accompany some of the world’s most luxurious hotels, Tsunami Body Works will offer its line of beauty products to spas and salons in the Las Vegas area. By catering both directly to consumers and to beauty shops, Tsunami Body Works will be able to establish and build a strong and sustainable brand image. The Company will cater directly to women who earn mid-level salaries and are interested in salon level products that can be used in the privacy of their own homes.
Tsunami Body Works intends to promote its line of body and skin care products to retail salon environments, as well as to consumers, by launching a creative promotional campaign intended to saturate the market with brand awareness. Specific advertising channels will include flyer distribution, use of a website, Internet marketing, networking, and television commercials. In addition, the Company expects growth as a result of positive word of mouth referrals from customers who experience its outstanding European products and competitive prices. Through these proven marketing efforts, Tsunami Body Works will position itself as a leading beauty products supplier in the online marketplace.
Aleksandar Maric and Shannon Cobb will own and operate the Company. Both owners have extensive experience in the beauty and skin care industry, ranging from providing spa services on major cruise lines to serving as a hair stylist for 25 years. For further biographical information on each member of the management team, please refer to the Management Summary.
To achieve the Company’s objectives, Tsunami Body Works, LLC is seeking $150,000 in total funding through bank or Small Business Administration (SBA)-backed lending. The bank or SBA-backed loan will be paid back from the cash flow of the business within seven years, collateralized by the assets of the Company, and backed by the personal integrity, experience, and a contractual guarantee from the owners.
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
4
Use of FundsThe table below outlines the sources and uses of funding:
Loan $150,000
Ow ner Investment $0
Investor $0
Total Sources $150,000
Start-up Expenses
Legal $20,000
Stationery $6,000
Brochures $1,000
Consultants $5,000
Insurance $3,000
Rent $975
R & D $2,000
Other $2,000
Total Start-up Expenses $39,975
Start-up Assets
Working Capital $84,025
Inventory $20,000
Equipment $6,000
Property $0
Other Long-term Assets $0
Total Start-up Assets $110,025
Total Uses $150,000
SO
UR
CE
S &
US
ES
SOURCES OF FUNDS
USES OF FUNDS
Company OwnershipTsunami Body Works, LLC will be a Limited Liability Company registered in the state of Nevada.
The Company will be jointly owned by Shannon Cobb (50%) and Aleksandar Maric (50%).
Company LocationTsunami Body Works, LLC will be located at the following address:
8663 W. Sahara AvenueLas Vegas, Nevada 98117
MissionThe Company’s mission statement is as follows:
“At Tsunami Body Works, we are dedicated to helping our clients maximize their individual beauty. By providing superior products sourced from nature’s finest ingredients, we offer a variety of treatments designed to enhance each client’s unique features while ensuring that she has a relaxing and memorable experience.”
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
5
ServicesTsunami Body Works will be an online retailer offering various body care products for women. The Company will combine traditional European beauty formulas with modern technology to create high-quality products made from all natural ingredients. The Company will offer three unique product lines; all of which feature formulations that are designed to nourish and protect the skin, making all women look and feel younger, bolder, and renewed. Tsunami Body Works’ products are as follows:
Tsunami Hot and Cold: Cellulite & Weight Loss
o Tsunami Cellulite Creamo Tsunami Cold Gel
Hand and Foot Careo Tsunami Foot and Nail Cream
Lavendina: Body Care
o Lavendina Body Creamo Lavendina Lotiono Lavendina Shower Gel with Scrub
Hand and Foot Careo Lavendina Hand Creamo Lavendina Foot and Nail Cream
Fabulous Vegas Baby: Body Care
o Vegas Baby Body Creamo Vegas Baby Lotiono Vegas Baby Shower Gel with Scrub
Hand and Foot Careo Vegas Baby Hand Cream
Product DescriptionTsunami Body Works is dedicated to improving the quality and accessibility of body care products for women across the globe. The Company is committed to helping women uncover their natural beauty by providing them with superior products made with the finest, all natural ingredients. Tsunami Body Works’ three product lines are further described below:
Tsunami Hot and Cold:Tsunami Hot and Cold has been scientifically formulated to reduce the appearance of cellulite – a serious problem for most women. Cellulite affects women of all ages, shapes, and sizes and attacks areas such as the buttocks, thighs, and arms. To help women feel more confident about their bodies, the Company has developed Tsunami Hot and Cold, a scientifically formulated line designed to reduce the appearance of cellulite. With continued use, products define, tone, and hydrate the body, improving the appearance of unsightly dimpled skin.
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
6
Lavendina:For many centuries, lavender has been used to soothe and calm the mind and promote restful sleep. The Lavendina product line will feature the essence of lavender to help women experience serenity and tranquility. By combining natural ingredients and essential oils, skin will be left clean, soft, and well-hydrated after using Lavendina products.
Fabulous Vegas Baby:The Fabulous Vegas Baby line is designed to quench and hydrate parched, damaged skin. Products will be made from finest emollient ingredients such as avocado oil, Shea butter, and grapeseed oil. Avocado oil is rich in vitamins A, C, and E, as well as protein and amino acids, and softens and conditions dry, flaky skin, while Shea Butter is known to reduce wrinkles and protect skin against environmental aging. Additionally, grape seed oil, rich in essential fatty acids, helps protect and soothe dry, overworked skin.
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
7
Market Analysis SummaryTsunami Body Works’ location in Las Vegas, Nevada (Clark County) places it in one of the world’s most popular tourist destinations. The Company’s chosen location will maximize the business’s ability to tap into a steady stream of consumer traffic. The following table provides the most current U.S. Census data with regard to the population growth of Clark County.
Clark County, Nevada – Population & Growth1
Population, 2009 estimate 1,902,834Population, percent change, April 1, 2000 to July 1, 2009 38.3%Population, 2000 1,375,738
Tsunami Body Works will primarily provide its products through Internet based sales. The Company will also target high-end beauty salons in the city of Las Vegas as a way to build a brand image and grow its market share. The following table provides pertinent figures for the populations of Las Vegas, the state of Nevada, and the United States as a whole. This data is provided by ESRI, a market research firm.2
Full Demographic Report Las Vegas – Nevada – United States – Side-by-side analysis
Las Vegas NevadaUnited States
2010 Total Population 580,369 2,748,294 311,212,8632015 Total Population 613,886 2,999,160 323,209,391 2010 - 2015 Annual Rate 1.13% 1.76% 0.76%
2010 Households 210,301 1,025,511 116,761,140 2010 Average Household Size 2.72 2.65 2.592010 Families 136,623 672,641 78,333,359 2010 Average Family Size 3.27 3.17 3.16
Median Household Income 2000 $44,181 $44,614 $42,164 2010 $54,367 $57,546 $54,442 2015 $62,871 $65,787 $61,189
Per Capita Income 2000 $22,060 $132,514 $21,587 2010 $25,773 $150,341 $26,739 2015 $29,836 $161,659 $30,241
Median Age 2000 34.5 35.0 35.3 2010 35.8 37.0 37.0 2015 35.7 37.2 37.3
2010 Households by IncomeHousehold Income Base 210,301 1,025,496 116,759,989 < $15,000 10.1% 8.8% 11.4% $15,000 - $24,999 9.1% 8.1% 9.4% $25,000 - $34,999 10.6% 9.7% 9.7%
1 U.S. Census Bureau. Obtained at: http://www.census.gov/ September 20102 Business Analyst Online. Obtained at: http://bao.esri.com/esribis. September 2010_______________________________________________________________________________
CONFIDENTIAL – Do Not Distribute Without Permission8
$35,000 - $49,999 15.8% 15.9% 15.0% $50,000 - $74,999 21.9% 23.3% 21.6% $75,000 - $99,999 14.4% 15.3% 14.1% $100,000 - $149,999 12.2% 12.8% 11.9% $150,000 - $199,999 2.5% 2.8% 3.4% $200,000 + 3.4% 3.2% 3.5%Average Household Income $69,210 $71,330 $70,173
2010 Population by AgeTotal 580,372 2,748,294 311,212,863 0 - 4 7.9% 7.3% 6.8% 5 - 9 7.2% 6.8% 6.7% 10 - 14 6.6% 6.4% 6.5% 15 - 19 6.6% 6.5% 7.0% 20 - 24 6.4% 6.4% 6.9% 25 - 34 14.1% 13.9% 13.3% 35 - 44 14.5% 13.9% 13.4% 45 - 54 13.7% 14.4% 14.6% 55 - 64 10.4% 11.8% 11.7% 65 - 74 7.0% 7.3% 6.8% 75 - 84 4.2% 4.0% 4.3% 85+ 1.3% 1.4% 2.0% 18+ 74.3% 75.6% 75.8%
2010 Population by Sex Males 50.4% 50.3% 49.2% Females 49.6% 49.7% 50.8%
2010 Population 25+ by Educational AttainmentTotal 378,856 1,831,539 205,370,648 Less than 9th Grade 8.9% 7.1% 6.3% 9th - 12th Grade, No Diploma 9.9% 9.1% 8.5% High School Graduate 29.4% 29.8% 29.6% Some College, No Degree 22.7% 23.8% 19.9% Associate Degree 7.1% 7.7% 7.7% Bachelor's Degree 14.2% 14.8% 17.7% Master's/Prof/Doctorate Degree 7.7% 7.6% 10.4%
Market SegmentationCosmetics and other beauty products are a large and growing industry, providing salon- and sp-a level products for home use. Tsunami Body Works is interested in catering to a large segment of the population. The Company will focus on tailoring its products to following types of consumers:
Mid level annual income Between the ages of 21-50 College educated Female
Tsunami Body Works will address a large market with a significant portion of its budget already allocated to cosmetics and other beauty products. Tsunami Body Works’ line of products will be derived from natural ingredients from the highest quality sources. The Company will place strong emphasis on this aspect of its product line. A large number of consumers are becoming aware of the _______________________________________________________________________________
CONFIDENTIAL – Do Not Distribute Without Permission9
need to purchase products that are created with the overall health of the planet in mind. The benefits of natural and earth-healthy products are two-fold. Natural products are better for the welfare of the planet, and are of higher-quality than their synthetic relatives.
Tsunami Body Works’ line of beauty products and cosmetics will provide women with the freshest and best natural beauty products, allowing the Company’s target customers to enjoy healthy skin without damaging their skin or the planet as a whole.
Tsunami Body Works will also target its line of products to spas and salons in the Las Vegas area. Las Vegas, Nevada is home to some of the world’s most luxurious hotels and spas. By pursuing local spas with its products, the Company will tap into one of the largest and most stable consumer spending streams in the world. Having products available in Las Vegas spas will also help the Company build and sustain its brand image. Market NeedsAccording to an article provided by the online service Market Research World, demand for cosmetics has been stagnating in developed markets such as the United States during the last five years. In an effort to improve sales, manufacturers have capitalized on the growing consumer interest in health and wellness by investing in cosmetic products containing natural ingredients.3 By providing the finest quality of naturally-derived beauty products, Tsunami Body Works will help meet the growing need for natural cosmetic products that is sweeping the cosmetic and beauty product industry.
The Company will meet and address consumer needs on a second level as well, beyond just satisfying the needs of customers for natural based beauty products. Women of all kinds have a need for salon and spa quality beauty products outside of the salon and spa. Tsunami Body Works will provide the types of products usually found only in high-end salons and spas for women around the country to take home and use in their own bathrooms and houses. By catering its product line to both women and salons, Tsunami Body Works will cover the needs of customers both in the salon and at home. The following chart shows the age-by-sex breakdown of the population of the United States.
U.S. Population Age-by-Sex breakdown
3 Market Research World. “Natural Ingredients Drive Growth in Cosmetics and Toiletries,” Obtained at: http://tinyurl.com/2uj4fgo September 2010_______________________________________________________________________________
CONFIDENTIAL – Do Not Distribute Without Permission10
Tsunami Body Works will sell its product line via the Internet, allowing the Company to have unlimited access to the entire population of the United States. The Company will primarily target women, and, as the above chart shows women are a large percentage of the population.
Industry AnalysisTsunami Body Works will operate within the Drugs, Proprietaries, and Sundries industry (Standard Industrial Classification 5122). The table below shows Dun & Bradstreet data regarding the performance of the businesses in this industry on a national, state, and local level. The Company will also operate in the industry subsets of Cosmetics, Perfumes, and Hair Products and Cosmetics. Industry subset data is measured on a national scale only.4
Industry: Drugs, Proprietaries, and Sundries (5122)Establishments primarily engaged in the wholesale distribution of prescription drugs, proprietary drugs, druggists' sundries, and toiletries.Market Size Statistics Estimated number of U.S. establishments: 11,338Number of people employed in this industry: 141,603Total annual sales in this industry: $317.3 billionAverage number of employees per establishment: 13Average sales per establishment (unknown values are excluded from the average): $34.1 millionMarket Analysis by State and Metropolitan Area
State/Metro No Bus. % TotalTotal
EmployeesTotalSales
AverageEmployees
AverageSales
Nevada 119 1 1,003 $122.8 million 9 $1.3 millionLas Vegas, NV 82 0.7 680 $79.6 million 9 $1.2 million
Market Analysis by Specialty (8-digit SIC Code)
SIC Code SIC Description No Bus. % TotalTotal
EmployeesTotalSales
AverageEmployees
AverageSales
5122-0100 Cosmetics, perfumes, and hair products 1,346 11.9 7,805 $1.6 billion 6 $1.3 M5122-0101 Cosmetics 1,923 17 15,355 $1.8 billion 8 $1 M
Competitive ComparisonOnline shopping is quickly becoming one of the most common purchasing methods in the United States. Many high-end retailers carry their full product lists online, often times offering deals on shipping and handling when items are purchased through their Internet retail outlets. Tsunami Body Works, with its intention of its business over the Internet, will face competition from a variety of types of businesses. These businesses include large retail outlets with well established retail locations nationwide, wholesalers, and individual cosmetics companies that sell their products direct to consumers via their websites. Tsunami Body Works is aware of the need to evaluate its competitors. A detailed analysis of the competitive landscape will prepare the Company for any potential market variables that may arise. A description of Tsunami Body Works’ competition is as follows:
Sephorawww.sephora.com
Overview: Sephora is a chain of cosmetics stores founded in 1969 in France. The Sephora chain includes more than 750 stores in 21 countries.
4 Dun & Bradstreet, Industry Data for SIC 5122-0000; obtained September 2010 _______________________________________________________________________________
CONFIDENTIAL – Do Not Distribute Without Permission11
Advantages: Sephora offers a wide range of cosmetic products in a selection of categories, including makeup, skincare, fragrance, bath and body, hair, tools, men, and natural and organic. Sephora also sells all of its products online.
Disadvantages: Sephora offers a selection of natural and organic products, but does not specialize in that type of product.
The Body Shopwww.thebodyshop-usa.com
Overview: The Body Shop is a cosmetics company founded in 1976 in England. There are currently 2,400 in 61 countries, making The Body Shop the second largest cosmetic franchise in the world.
Advantages: The Body Shop specializes in natural cosmetics products and is active in many social services and charity programs around the world.
Disadvantages: The Body Shop sells products only in its own retail stores, and does not sell products to salons and spas.
Saffron Rougewww.saffronrouge.com
Overview: Saffron Rouge is the first beauty retailer in the world to focus exclusively on organics. Offering over 1,000 of the world’s finest organic beauty and aromatherapy products, Saffron Rouge is North America’s number-one online retailer of organic skin care and cosmetic products.
Advantages: Saffron Rouge offers only products that have at least one of the organic body care certifications, or provide evidence that certified organic content is being used as much as possible. Saffron Rouge offers almost 30 organic cosmetic brands.
Disadvantages: Saffron Rouge is only an online retail outlet, selling products provided by other companies and nothing of its own design.
For more information regarding the Company’s competitive advantages, see Competitive Edge.
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
12
Strategy and Implementation Summary“The European Secret to Beauty and Wellness™”Tsunami Body Works will develop a brand that encompasses quality and availability in its provision of body care products to the Las Vegas marketplace. To increase brand awareness, the Company has developed a memorable brand logo, as well as multiple product logos, that it will use throughout its promotional strategy and within its various marketing materials.
With its guiding principles established, Tsunami Body Works will send a clear message about the key benefits of its solutions-based products, indicating its functionality beyond skin care and more towards overall health and vitality of the body. The Company will illustrate this message with a diverse marketing campaign involving a number of modern and conventional techniques to bolster awareness at the street level as well as online. This approach intends to help Tsunami Body Works achieve the following objectives:
Establish a strong brand name and reputation Fuel growth through positive word of mouth referrals Earn enough revenue to expand operations
To reach these operational benchmarks, the Company will build on its strengths and advantages as outlined in the following section.
Competitive EdgeTsunami Body Works intends to capitalize on its core strengths in order to establish itself as a leading supplier of spa and beauty products to the Las Vegas marketplace. These competitive advantages are outlined in greater detail below.
Unmatched customer service All-natural European products Solutions-based to help firm and smooth the skin Competitive pricing structure Ownership experienced in salon atmospheres Consistency in product availability Aggressive marketing campaign
Marketing StrategyThe Company will generate interest in its beauty products by utilizing a variety of advertising channels to increase Tsunami Body Works’ exposure among its target demographic. Specific channels will include the following:
Television advertising: The Company recognizes that television advertising is still an effective means of reaching a large target population. For this reason the Company will create commercials to be aired on home shopping networks such as QVC.
Flyers: Tsunami Body Works will create colorful and informative flyers that will display the Company’s range of products. These will be distributed within a considerable radius of the Company’s proximity to businesses and residences, allowing for increased brand exposure.
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
13
Website: The Company will capitalize on its existing website (www.tsunamibodyworks.com) to generate interest in its beauty products. This website will be search engine optimized and contain a number of features including: product information, testimonials, photo gallery, company profile, location, and list of services.
**suggestion** Internet advertising: Tsunami Body Works will benefit from using a combination of Internet advertising including Cost-per-Click, Google AdWords, Tags, and banner ads. This effort will help generate interest in the Company from the online community and general public.
**suggestion** Networking: As with any relationship-based business, the Company will benefit from participating in a number of networking opportunities that have the potential to yield new business contacts as well as nourish existing ones. Tsunami Body Works will attend a variety of events that draw substantial numbers of prospective customers. Events may include seminars, mixers, and luncheons which provide opportunities to speak to and associate with larger audiences. This will create a positive business environment that encourages discourse among the Company and its target market.
**suggestion** Print media: Tsunami Body Works will place ads in national print publications. These advertisements will include the Company’s location and will also offer limited time discounts or other promotions.
**suggestion** Word of mouth: Word travels quickly between family members, peers, and colleagues who are pleased with their experiences with a particular business. The Company will rely on this effective and inexpensive resource to generate interest in its beauty products. According to research conducted by Forrester, there were “256 billion influence impressions occurring per year [in 2009]. Influence posts were numbered at 1.64 billion per year, which accounted for generating another 250 billion impressions. In other words, people are making 500 billion influence impressions on one another about products and services every year.”5
5 Dybwad, Barb. Mashable: the Social Media Guide. “The State of Online Word of Mouth Marketing [Stats].” Obtained at: http://mashable.com/2010/04/25/word-of-mouth-marketing-stats/_______________________________________________________________________________
CONFIDENTIAL – Do Not Distribute Without Permission14
Management SummaryShannon Cobb, OwnerMs. Cobb is an entrepreneur at heart, and has devoted her entire professional career as a stylist. For the last 25 years, she has owned and operated her salon Hair at the Lakes, performing hairdressing for a devoted, long-term clientele.
Aleksandar Maric, OwnerMr. Maric is a Serbian immigrant who has spent only the last five years in the United States. His professional expertise includes providing concierge-level service among cruise lines, serving as a massage therapist for domestic and international clients.
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
15
Financial IndicatorsThe following table and graph illustrate the financial goals of the Company during the next three years:
Year 1 Year 2 Year 3
Revenue $437,427 $656,141 $885,790
Gross Margin $368,279 $552,418 $745,764
Operating Expenses $429,293 $498,010 $542,549
EBITDA* ($60,614) $54,808 $203,615
Net Profit ($70,969) $45,698 $195,838
Profitability Ratios
Gross Margin/Revenue 84% 84% 84%
EBITDA/Revenue -14% 8% 23%
Net Profit/Revenue -16% 7% 22%
Debt Ratios
Debt Ratio (Total Debt/Total Assets) 352.11% 188.71% 48.73%
Interest Coverage Ratio -6.09 6.29 27.60
Debt Service Coverage Ratio -2.23 2.02 7.49
Net Cash Flow ($65,619) $29,941 $181,565
Cash Balance - Ending $18,406 $48,346 $229,911
*Earnings before interest, taxes, depreciation & amortization
FIN
AN
CIA
L H
IGH
LIG
HT
S
Financial Highlights
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
Year 1 Year 2 Year 3
Revenue
Direct Costs
Operating Expenses
Net Profit
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
16
The following is a three-year revenue forecast. Direct costs include all costs which can be directly tied to revenue and include “cost of goods.”
Year 1 Year 2 Year 3
Revenue
Tsunami Hot 4 oz. $51,300 $76,950 $103,883
Tsunami Hot 6 oz. $52,920 $79,380 $107,163
Tsunami Cool 4 oz. $32,250 $48,375 $65,306
Tsunami Cool 6 oz. $29,925 $44,888 $60,598
Vegas Baby Body Cream 4 oz. $15,540 $23,310 $31,469
Vegas Baby Body Cream 6 oz. $14,153 $21,229 $28,659
Vegas Baby Body Lotion 4 oz. $10,194 $15,291 $20,643
Vegas Baby Body Lotion 6 oz. $9,900 $14,850 $20,048
Vegas Baby Show er Gel & Scrub 4 oz. $11,394 $17,091 $23,073
Vegas Baby Show er Gel & Scrub 6 oz. $10,575 $15,863 $21,414
Vegas Baby Hand Cream 2 oz. $35,970 $53,955 $72,839
Vegas Baby Balm 4 oz. $14,394 $21,591 $29,148
Lavendina Body Cream 4 oz. $18,720 $28,080 $37,908
Lavendina Body Cream 6 oz. $16,349 $24,523 $33,106
Lavendina Body Lotion 4 oz. $13,194 $19,791 $26,718
Lavendina Body Lotion 6 oz. $12,375 $18,563 $25,059
Lavendina Show er Gel & Scrub 4 oz. $13,380 $20,070 $27,095
Lavendina Show er Gel & Scrub 6 oz. $12,825 $19,238 $25,971
Lavendina Hand Cream 2 oz. $44,970 $67,455 $91,064
Lavendina Balm 4 oz. $17,100 $25,650 $34,628
Total Revenue $437,427 $656,141 $885,790
Direct Cost of Revenue
Tsunami Hot 4 oz. $7,776 $11,664 $15,746
Tsunami Hot 6 oz. $8,019 $12,029 $16,238
Tsunami Cool 4 oz. $4,830 $7,245 $9,781
Tsunami Cool 6 oz. $4,484 $6,725 $9,079
Vegas Baby Body Cream 4 oz. $2,544 $3,816 $5,152
Vegas Baby Body Cream 6 oz. $2,610 $3,915 $5,285
Vegas Baby Body Lotion 4 oz. $1,722 $2,583 $3,487
Vegas Baby Body Lotion 6 oz. $1,692 $2,538 $3,426
Vegas Baby Show er Gel & Scrub 4 oz. $2,028 $3,042 $4,107
Vegas Baby Show er Gel & Scrub 6 oz. $2,043 $3,065 $4,137
Vegas Baby Hand Cream 2 oz. $6,810 $10,215 $13,790
Vegas Baby Balm 4 oz. $2,580 $3,870 $5,225
Lavendina Body Cream 4 oz. $2,544 $3,816 $5,152
Lavendina Body Cream 6 oz. $2,610 $3,915 $5,285
Lavendina Body Lotion 4 oz. $1,722 $2,583 $3,487
Lavendina Body Lotion 6 oz. $1,692 $2,538 $3,426
Lavendina Show er Gel & Scrub 4 oz. $2,028 $3,042 $4,107
Lavendina Show er Gel & Scrub 6 oz. $2,025 $3,038 $4,101
Lavendina Hand Cream 2 oz. $6,810 $10,215 $13,790
Lavendina Balm 4 oz. $2,580 $3,870 $5,225
Subtotal Cost of Revenue $69,149 $103,723 $140,026
Other Direct Costs $0 $0 $0
Total Direct Costs $69,149 $103,723 $140,026
Gross Margin $368,279 $552,418 $745,764Gross Margin % 84% 84% 84%
RE
VE
NU
E F
OR
EC
AS
T
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
17
The table below shows the units and pricing assumptions underlying the revenue forecast:
Year 1 Year 2 Year 3
Units
Tsunami Hot 4 oz. 1,800 2,700 3,645
Tsunami Hot 6 oz. 1,350 2,025 2,734
Tsunami Cool 4 oz. 1,500 2,250 3,038
Tsunami Cool 6 oz. 1,050 1,575 2,126
Vegas Baby Body Cream 4 oz. 600 900 1,215
Vegas Baby Body Cream 6 oz. 450 675 911
Vegas Baby Body Lotion 4 oz. 600 900 1,215
Vegas Baby Body Lotion 6 oz. 450 675 911
Vegas Baby Show er Gel & Scrub 4 oz. 600 900 1,215
Vegas Baby Show er Gel & Scrub 6 oz. 450 675 911
Vegas Baby Hand Cream 2 oz. 3,000 4,500 6,075
Vegas Baby Balm 4 oz. 600 900 1,215
Lavendina Body Cream 4 oz. 600 900 1,215
Lavendina Body Cream 6 oz. 450 675 911
Lavendina Body Lotion 4 oz. 600 900 1,215
Lavendina Body Lotion 6 oz. 450 675 911
Lavendina Show er Gel & Scrub 4 oz. 600 900 1,215
Lavendina Show er Gel & Scrub 6 oz. 450 675 911
Lavendina Hand Cream 2 oz. 3,000 4,500 6,075
Lavendina Balm 4 oz. 600 900 1,215
Total Units 19,200 28,800 38,880
Unit Price
Tsunami Hot 4 oz. $28.50 $28.50 $28.50
Tsunami Hot 6 oz. $39.20 $39.20 $39.20
Tsunami Cool 4 oz. $21.50 $21.50 $21.50
Tsunami Cool 6 oz. $28.50 $28.50 $28.50
Vegas Baby Body Cream 4 oz. $25.90 $25.90 $25.90
Vegas Baby Body Cream 6 oz. $31.45 $31.45 $31.45
Vegas Baby Body Lotion 4 oz. $16.99 $16.99 $16.99
Vegas Baby Body Lotion 6 oz. $22.00 $22.00 $22.00
Vegas Baby Show er Gel & Scrub 4 oz. $18.99 $18.99 $18.99
Vegas Baby Show er Gel & Scrub 6 oz. $23.50 $23.50 $23.50
Vegas Baby Hand Cream 2 oz. $11.99 $11.99 $11.99
Vegas Baby Balm 4 oz. $23.99 $23.99 $23.99
Lavendina Body Cream 4 oz. $31.20 $31.20 $31.20
Lavendina Body Cream 6 oz. $36.33 $36.33 $36.33
Lavendina Body Lotion 4 oz. $21.99 $21.99 $21.99
Lavendina Body Lotion 6 oz. $27.50 $27.50 $27.50
Lavendina Show er Gel & Scrub 4 oz. $22.30 $22.30 $22.30
Lavendina Show er Gel & Scrub 6 oz. $28.50 $28.50 $28.50
Lavendina Hand Cream 2 oz. $14.99 $14.99 $14.99
Lavendina Balm 4 oz. $28.50 $28.50 $28.50
Direct Unit Cost
Tsunami Hot 4 oz. $4.32 $4.32 $4.32
Tsunami Hot 6 oz. $5.94 $5.94 $5.94Tsunami Cool 4 oz. $3.22 $3.22 $3.22Tsunami Cool 6 oz. $4.27 $4.27 $4.27Vegas Baby Body Cream 4 oz. $4.24 $4.24 $4.24
Vegas Baby Body Cream 6 oz. $5.80 $5.80 $5.80Vegas Baby Body Lotion 4 oz. $2.87 $2.87 $2.87Vegas Baby Body Lotion 6 oz. $3.76 $3.76 $3.76Vegas Baby Show er Gel & Scrub 4 oz. $3.38 $3.38 $3.38Vegas Baby Show er Gel & Scrub 6 oz. $4.54 $4.54 $4.54Vegas Baby Hand Cream 2 oz. $2.27 $2.27 $2.27Vegas Baby Balm 4 oz. $4.30 $4.30 $4.30Lavendina Body Cream 4 oz. $4.24 $4.24 $4.24Lavendina Body Cream 6 oz. $5.80 $5.80 $5.80Lavendina Body Lotion 4 oz. $2.87 $2.87 $2.87
Lavendina Body Lotion 6 oz. $3.76 $3.76 $3.76
Lavendina Show er Gel & Scrub 4 oz. $3.38 $3.38 $3.38
Lavendina Show er Gel & Scrub 6 oz. $4.50 $4.50 $4.50
Lavendina Hand Cream 2 oz. $2.27 $2.27 $2.27
Lavendina Balm 4 oz. $4.30 $4.30 $4.30
UN
IT A
SS
UM
PT
ION
S
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
18
Year 1 Revenue Monthly
$0$5,000
$10,000$15,000$20,000$25,000$30,000$35,000$40,000$45,000$50,000
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0
Mon
th 1
1
Mon
th 1
2
Lavendina
Vegas Baby
Tsunami
Revenue By Year
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Year 1 Year 2 Year 3
Lavendina
Vegas Baby
Tsunami
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
19
The Company’s personnel forecast is outlined below. Personnel wages indicate the average wage per position and personnel costs are total wages for each position.
Year 1 Year 2 Year 3
Personnel Count
Manager/Partner 2 2 2
Director pf Operations 1 1 1
Marketing Manager/Executive Assistant 1 1 1
Sales 1 2 3
Assistant/Receptionist 0 1 1
Total Personnel 5 7 8
Personnel Wage
Manager/Partner $70,000 $73,500 $77,175
Director pf Operations $65,000 $68,250 $71,663
Marketing Manager/Executive Assistant $60,000 $63,000 $66,150
Sales $0 $0 $0
Assistant/Receptionist $0 $23,920 $25,116
Personnel Costs
Manager/Partner $140,000 $147,000 $154,350
Director pf Operations $65,000 $68,250 $71,663
Marketing Manager/Executive Assistant $60,000 $63,000 $66,150
Sales $0 $0 $0
Assistant/Receptionist $0 $23,920 $25,116
Total Payroll $265,000 $302,170 $317,279
PE
RS
ON
NE
L F
OR
EC
AS
T
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
20
The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Loss table below, gross margin equals revenue minus direct costs. The “bottom line” or profit (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses.
Year 1 Year 2 Year 3
Revenue $437,427 $656,141 $885,790
Total Cost of Revenue $69,149 $103,723 $140,026
Gross Margin $368,279 $552,418 $745,764
Gross Margin/Revenue 84% 84% 84%
Expenses
Rent $11,700 $12,300 $12,900
Insurance $12,000 $12,600 $13,200
Marketing $21,900 $23,000 $24,200
Commission $43,743 $65,614 $88,579
Utilities $15,000 $15,800 $16,600
Phone/Internet $6,000 $6,300 $6,600
Office Supplies $1,800 $1,900 $2,000
Other/Misc. $12,000 $12,600 $13,200
Depreciation $400 $400 $400
Payroll Taxes & Benefits $39,750 $45,326 $47,592
Total Personnel $265,000 $302,170 $317,279
Total Op. Expenses $429,293 $498,010 $542,549
Profit Before Interest and Taxes ($61,014) $54,408 $203,215
EBITDA ($60,614) $54,808 $203,615
Interest Expense $9,955 $8,710 $7,376
Taxes Incurred $0 $0 $0
Net Profit ($70,969) $45,698 $195,838
Net Profit/Revenue -16.2% 7.0% 22.1%
PR
O F
OR
MA
PR
OF
IT &
LO
SS
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
21
The charts below demonstrate when the Company is expected to become profitable. Break-even occurs when revenue exceeds expenses.
Revenue & ExpensesYear 1 Monthly
$0$5,000
$10,000$15,000$20,000$25,000$30,000$35,000$40,000$45,000$50,000
Mo
nth
1
Mo
nth
2
Mo
nth
3
Mo
nth
4
Mo
nth
5
Mo
nth
6
Mo
nth
7
Mo
nth
8
Mo
nth
9
Mo
nth
10
Mo
nth
11
Mo
nth
12
Revenue
Expenses
Revenue & Expenses Years 1 to 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Year 1 Year 2 Year 3
Revenue
Expenses
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
22
The following depictions of the Company’s projected cash flow show that the Company expects to maintain sufficient cash balances over the three years of this plan. The “pro forma cash flow” table differs from the “pro forma profit and loss” (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include “non-cash” items and exclude funding and investment illustrations.
Cash Flow
-$100,000
-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Year 1 Year 2 Year 3
Net Cash Flow
Cash Balance
Year 1 Year 2 Year 3
Cash Received
Revenue $437,427 $656,141 $885,790
New Current Borrow ing $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sale of Other Current Assets $0 $0 $0
Sale of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $437,427 $656,141 $885,790
Expenditures
Expenditures from Operations
Personnel Expenses $265,000 $302,170 $317,279
Bill Payments $220,834 $305,574 $367,156
Subtotal Spent on Operations $485,834 $607,744 $684,435
Additional Cash Spent
Current Borrow ing Repay. $0 $0 $0
L-T Liabilities Principal Repay. $17,212 $18,456 $19,791
Purchase Inventory $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $503,046 $626,200 $704,225
Net Cash Flow ($65,619) $29,941 $181,565
Cash Balance $18,406 $48,346 $229,911
CA
SH
FL
OW
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
23
The balance sheet below highlights the Company’s projected assets, liabilities, and capital:
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $18,406 $48,346 $229,911
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $38,406 $68,346 $249,911
Long-term Assets
Long-term Assets $6,000 $6,000 $6,000
Accumulated Depreciation $400 $800 $1,200
Total Long-term Assets $5,600 $5,200 $4,800
Total Assets $44,006 $73,546 $254,711
Liabilities and Capital
Current Liabilities
Accounts Payable $22,162 $24,461 $29,578
Current Borrow ing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $22,162 $24,461 $29,578
Long-term Liabilities $132,788 $114,332 $94,541
Total Liabilities $154,950 $138,793 $124,119
Paid-in Capital $0 $0 $0
Retained Earnings ($39,975) ($110,944) ($65,246)
Earnings ($70,969) $45,698 $195,838
Total Capital ($110,944) ($65,246) $130,592
Total Liabilities and Capital $44,006 $73,546 $254,711
BA
LA
NC
E S
HE
ET
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
24
The sensitivity analysis below assumes that revenues are 15% higher or lower than figures projected earlier in this business plan:
Year 1 Year 2 Year 3
Revenue $503,041 $754,562 $1,018,658
Cost of Goods $79,521 $119,281 $161,030
Gross Margin $423,520 $635,280 $857,629
Gross Margin/Revenue 84% 84% 84%
Operating Expenses $429,293 $498,010 $542,549
Net Profit ($15,727) $128,560 $307,703
Net Profit/Revenue -3% 17% 30%
Cash Flow ($10,017) $112,841 $293,512
Cash Balance $74,008 $186,848 $480,361
BE
ST
CA
SE
SC
EN
AR
IO
REVENUE IS 15% GREATER THAN PROJECTED
Year 1 Year 2 Year 3
Revenue $371,813 $557,719 $752,921
Cost of Goods $58,776 $88,164 $119,022
Gross Margin $313,037 $469,555 $633,899
Gross Margin/Revenue 84% 84% 84%
Operating Expenses $429,293 $498,010 $542,549
Net Profit ($126,211) ($37,165) $83,974
Net Profit/Revenue -34% -7% 11%
Cash Flow ($121,221) ($52,960) $69,617
Cash Balance ($37,196) ($90,155) ($20,539)
WO
RS
T C
AS
E S
CE
NA
RIO REVENUE IS 15% LESS THAN PROJECTED
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
25
AppendixMonth 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
P ersonnel Count
Manager/P artner 2 2 2 2 2 2 2 2 2 2 2 2
Director pf Operations 1 1 1 1 1 1 1 1 1 1 1 1
Marketing Manager/Executive Assistant 1 1 1 1 1 1 1 1 1 1 1 1
Sales 1 1 1 1 1 1 1 1 1 1 1 1
Assistant/Receptionist 0 0 0 0 0 0 0 0 0 0 0 0
Total P ersonnel 5 5 5 5 5 5 5 5 5 5 5 5
P ersonnel Wage
Manager/P artner $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833 $5,833
Director pf Operations $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
Marketing Manager/Executive Assistant $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assistant/Receptionist $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
P ersonnel Costs
Manager/P artner $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667 $11,667
Director pf Operations $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417 $5,417
Marketing Manager/Executive Assistant $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assistant/Receptionist $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total P ayroll $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083
PE
RS
ON
NE
L F
OR
EC
AS
T
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
26
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue
Tsunami Hot 4 oz. $3,223 $3,384 $3,553 $3,731 $3,918 $4,113 $4,319 $4,535 $4,762 $5,000 $5,250 $5,512
Tsunami Hot 6 oz. $3,325 $3,491 $3,666 $3,849 $4,041 $4,243 $4,455 $4,678 $4,912 $5,158 $5,416 $5,686
Tsunami Cool 4 oz. $2,026 $2,127 $2,234 $2,345 $2,463 $2,586 $2,715 $2,851 $2,994 $3,143 $3,300 $3,465
Tsunami Cool 6 oz. $1,880 $1,974 $2,073 $2,176 $2,285 $2,399 $2,519 $2,645 $2,778 $2,917 $3,062 $3,216
Vegas Baby Body Cream 4 oz. $976 $1,025 $1,076 $1,130 $1,187 $1,246 $1,308 $1,374 $1,442 $1,515 $1,590 $1,670
Vegas Baby Body Cream 6 oz. $889 $934 $980 $1,029 $1,081 $1,135 $1,192 $1,251 $1,314 $1,379 $1,448 $1,521
Vegas Baby Body Lotion 4 oz. $640 $672 $706 $741 $778 $817 $858 $901 $946 $994 $1,043 $1,095
Vegas Baby Body Lotion 6 oz. $622 $653 $686 $720 $756 $794 $834 $875 $919 $965 $1,013 $1,064
Vegas Baby Shower Gel & Scrub 4 oz. $716 $752 $789 $829 $870 $914 $959 $1,007 $1,058 $1,110 $1,166 $1,224
Vegas Baby Shower Gel & Scrub 6 oz. $664 $698 $732 $769 $808 $848 $890 $935 $982 $1,031 $1,082 $1,136
Vegas Baby Hand Cream 2 oz. $2,260 $2,373 $2,491 $2,616 $2,747 $2,884 $3,028 $3,180 $3,339 $3,506 $3,681 $3,865
Vegas Baby Balm 4 oz. $904 $950 $997 $1,047 $1,099 $1,154 $1,212 $1,272 $1,336 $1,403 $1,473 $1,547
Lavendina Body Cream 4 oz. $1,176 $1,235 $1,297 $1,361 $1,430 $1,501 $1,576 $1,655 $1,738 $1,825 $1,916 $2,012
Lavendina Body Cream 6 oz. $1,027 $1,078 $1,132 $1,189 $1,248 $1,311 $1,376 $1,445 $1,517 $1,593 $1,673 $1,757
Lavendina Body Lotion 4 oz. $829 $870 $914 $960 $1,008 $1,058 $1,111 $1,166 $1,225 $1,286 $1,350 $1,418
Lavendina Body Lotion 6 oz. $777 $816 $857 $900 $945 $992 $1,042 $1,094 $1,149 $1,206 $1,266 $1,330
Lavendina Shower Gel & Scrub 4 oz. $841 $883 $927 $973 $1,022 $1,073 $1,126 $1,183 $1,242 $1,304 $1,369 $1,438
Lavendina Shower Gel & Scrub 6 oz. $806 $846 $888 $933 $979 $1,028 $1,080 $1,134 $1,190 $1,250 $1,312 $1,378
Lavendina Hand Cream 2 oz. $2,825 $2,967 $3,115 $3,271 $3,434 $3,606 $3,786 $3,975 $4,174 $4,383 $4,602 $4,832
Lavendina Balm 4 oz. $1,074 $1,128 $1,184 $1,244 $1,306 $1,371 $1,440 $1,512 $1,587 $1,667 $1,750 $1,837
Total Revenue $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003
RE
VE
NU
E F
OR
EC
AS
T
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
27
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Direct Cost of Revenue
Tsunami Hot 4 oz. $489 $513 $539 $566 $594 $624 $655 $687 $722 $758 $796 $836
Tsunami Hot 6 oz. $504 $529 $555 $583 $612 $643 $675 $709 $744 $782 $821 $862
Tsunami Cool 4 oz. $303 $319 $335 $351 $369 $387 $407 $427 $448 $471 $494 $519
Tsunami Cool 6 oz. $282 $296 $311 $326 $342 $360 $377 $396 $416 $437 $459 $482
Vegas Baby Body Cream 4 oz. $160 $168 $176 $185 $194 $204 $214 $225 $236 $248 $260 $273
Vegas Baby Body Cream 6 oz. $164 $172 $181 $190 $199 $209 $220 $231 $242 $254 $267 $280
Vegas Baby Body Lotion 4 oz. $108 $114 $119 $125 $131 $138 $145 $152 $160 $168 $176 $185
Vegas Baby Body Lotion 6 oz. $106 $112 $117 $123 $129 $136 $142 $150 $157 $165 $173 $182
Vegas Baby Shower Gel & Scrub 4 oz. $127 $134 $140 $147 $155 $163 $171 $179 $188 $198 $208 $218
Vegas Baby Shower Gel & Scrub 6 oz. $128 $135 $142 $149 $156 $164 $172 $181 $190 $199 $209 $220
Vegas Baby Hand Cream 2 oz. $428 $449 $472 $495 $520 $546 $573 $602 $632 $664 $697 $732
Vegas Baby Balm 4 oz. $162 $170 $179 $188 $197 $207 $217 $228 $239 $251 $264 $277
Lavendina Body Cream 4 oz. $160 $168 $176 $185 $194 $204 $214 $225 $236 $248 $260 $273
Lavendina Body Cream 6 oz. $164 $172 $181 $190 $199 $209 $220 $231 $242 $254 $267 $280
Lavendina Body Lotion 4 oz. $108 $114 $119 $125 $131 $138 $145 $152 $160 $168 $176 $185
Lavendina Body Lotion 6 oz. $106 $112 $117 $123 $129 $136 $142 $150 $157 $165 $173 $182
Lavendina Shower Gel & Scrub 4 oz. $127 $134 $140 $147 $155 $163 $171 $179 $188 $198 $208 $218
Lavendina Shower Gel & Scrub 6 oz. $127 $134 $140 $147 $155 $162 $170 $179 $188 $197 $207 $218
Lavendina Hand Cream 2 oz. $428 $449 $472 $495 $520 $546 $573 $602 $632 $664 $697 $732
Lavendina Balm 4 oz. $162 $170 $179 $188 $197 $207 $217 $228 $239 $251 $264 $277
Subtotal Cost of Revenue $4,344 $4,561 $4,790 $5,029 $5,281 $5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430
Other Direct Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Direct Costs $4,344 $4,561 $4,790 $5,029 $5,281 $5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430
Gross Margin $23,137 $24,294 $25,509 $26,784 $28,123 $29,530 $31,006 $32,556 $34,184 $35,893 $37,688 $39,573
Gross Margin % 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84%
RE
VE
NU
E F
OR
EC
AS
T
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
28
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Units
Tsunami Hot 4 oz. 113 119 125 131 137 144 152 159 167 175 184 193
Tsunami Hot 6 oz. 85 89 94 98 103 108 114 119 125 132 138 145
Tsunami Cool 4 oz. 94 99 104 109 115 120 126 133 139 146 154 161
Tsunami Cool 6 oz. 66 69 73 76 80 84 88 93 97 102 107 113
Vegas Baby Body Cream 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Vegas Baby Body Cream 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Vegas Baby Body Lotion 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Vegas Baby Body Lotion 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Vegas Baby Shower Gel & Scrub 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Vegas Baby Shower Gel & Scrub 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Vegas Baby Hand Cream 2 oz. 188 198 208 218 229 241 253 265 278 292 307 322
Vegas Baby Balm 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Lavendina Body Cream 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Lavendina Body Cream 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Lavendina Body Lotion 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Lavendina Body Lotion 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Lavendina Shower Gel & Scrub 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Lavendina Shower Gel & Scrub 6 oz. 28 30 31 33 34 36 38 40 42 44 46 48
Lavendina Hand Cream 2 oz. 188 198 208 218 229 241 253 265 278 292 307 322
Lavendina Balm 4 oz. 38 40 42 44 46 48 51 53 56 58 61 64
Total Units 1,206 1,267 1,330 1,396 1,466 1,540 1,616 1,697 1,782 1,871 1,965 2,063
UN
IT A
SS
UM
PT
ION
S
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
29
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit P rice
Tsunami Hot 4 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50
Tsunami Hot 6 oz. $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20 $39.20
Tsunami Cool 4 oz. $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50 $21.50
Tsunami Cool 6 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50
Vegas Baby Body Cream 4 oz. $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90 $25.90
Vegas Baby Body Cream 6 oz. $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45 $31.45
Vegas Baby Body Lotion 4 oz. $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99 $16.99
Vegas Baby Body Lotion 6 oz. $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 $22.00
Vegas Baby Shower Gel & Scrub 4 oz. $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99 $18.99
Vegas Baby Shower Gel & Scrub 6 oz. $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50 $23.50
Vegas Baby Hand Cream 2 oz. $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99 $11.99
Vegas Baby Balm 4 oz. $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99 $23.99
Lavendina Body Cream 4 oz. $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20 $31.20
Lavendina Body Cream 6 oz. $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33 $36.33
Lavendina Body Lotion 4 oz. $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99 $21.99
Lavendina Body Lotion 6 oz. $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50 $27.50
Lavendina Shower Gel & Scrub 4 oz. $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30 $22.30
Lavendina Shower Gel & Scrub 6 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50
Lavendina Hand Cream 2 oz. $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99 $14.99
Lavendina Balm 4 oz. $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50 $28.50
UN
IT A
SS
UM
PT
ION
S
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
30
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Direct Unit Cost
Tsunami Hot 4 oz. $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32
Tsunami Hot 6 oz. $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94 $5.94
Tsunami Cool 4 oz. $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22 $3.22
Tsunami Cool 6 oz. $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27 $4.27
Vegas Baby Body Cream 4 oz. $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24
Vegas Baby Body Cream 6 oz. $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80
Vegas Baby Body Lotion 4 oz. $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87
Vegas Baby Body Lotion 6 oz. $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76
Vegas Baby Shower Gel & Scrub 4 oz. $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38
Vegas Baby Shower Gel & Scrub 6 oz. $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54 $4.54
Vegas Baby Hand Cream 2 oz. $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27
Vegas Baby Balm 4 oz. $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30
Lavendina Body Cream 4 oz. $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24 $4.24
Lavendina Body Cream 6 oz. $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80 $5.80
Lavendina Body Lotion 4 oz. $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87 $2.87
Lavendina Body Lotion 6 oz. $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76
Lavendina Shower Gel & Scrub 4 oz. $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38 $3.38
Lavendina Shower Gel & Scrub 6 oz. $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50
Lavendina Hand Cream 2 oz. $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27 $2.27
Lavendina Balm 4 oz. $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30 $4.30
UN
IT A
SS
UM
PT
ION
S
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
31
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003
Total Cost of Revenue $4,344 $4,561 $4,790 $5,029 $5,281 $5,545 $5,822 $6,113 $6,418 $6,739 $7,076 $7,430
Gross Margin $23,137 $24,294 $25,509 $26,784 $28,123 $29,530 $31,006 $32,556 $34,184 $35,893 $37,688 $39,573
Gross Margin/Revenue 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84%
Expenses
Rent $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975
Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Marketing $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825 $1,825
Commission $2,748 $2,886 $3,030 $3,181 $3,340 $3,507 $3,683 $3,867 $4,060 $4,263 $4,476 $4,700
Utilities $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
P hone/Internet $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Office Supplies $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Other/M isc. $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Depreciation $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33
P ayroll Taxes & Benefits $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313 $3,313
Total P ersonnel $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083
Total Op. Expenses $34,877 $35,015 $35,159 $35,310 $35,470 $35,637 $35,812 $35,996 $36,189 $36,392 $36,606 $36,829
P rofit Before Int. and Tax ($11,740) ($10,721) ($9,650) ($8,526) ($7,346) ($6,107) ($4,806) ($3,440) ($2,005) ($499) $1,083 $2,743
EBITDA ($11,707) ($10,687) ($9,617) ($8,493) ($7,313) ($6,074) ($4,772) ($3,406) ($1,972) ($466) $1,116 $2,776
Interest Expense $875 $867 $859 $851 $842 $834 $826 $817 $809 $800 $792 $783
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net P rofit ($12,615) ($11,588) ($10,509) ($9,377) ($8,188) ($6,941) ($5,632) ($4,257) ($2,814) ($1,299) $291 $1,960
Net P rofit/Revenue -45.9% -40.2% -34.7% -29.5% -24.5% -19.8% -15.3% -11.0% -6.9% -3.0% 0.6% 4.2%
PR
O F
OR
MA
PR
OF
IT &
LO
SS
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
32
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Revenue $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sale of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sale of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $27,482 $28,856 $30,298 $31,813 $33,404 $35,074 $36,828 $38,669 $40,603 $42,633 $44,765 $47,003
Expenditures
Expenditures from Operations
P ersonnel Expenses $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083 $22,083
Bill P ayments $0 $18,591 $18,339 $18,703 $19,087 $19,490 $19,913 $20,358 $20,826 $21,317 $21,834 $22,376
Subtotal Spent on Operations $22,083 $40,674 $40,422 $40,787 $41,170 $41,573 $41,997 $42,442 $42,909 $43,401 $43,917 $44,459
Additional Cash Spent
Current Borrowing Repay. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
L-T Liabilities P rincipal Repay. $1,389 $1,397 $1,405 $1,413 $1,422 $1,430 $1,438 $1,447 $1,455 $1,464 $1,472 $1,481
P urchase Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
P urchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cash Spent $23,472 $42,071 $41,827 $42,200 $42,592 $43,003 $43,435 $43,888 $44,364 $44,864 $45,389 $45,940
Net Cash Flow $4,009 ($13,216) ($11,529) ($10,387) ($9,188) ($7,929) ($6,607) ($5,219) ($3,762) ($2,231) ($625) $1,063
Cash Balance $88,034 $74,819 $63,290 $52,903 $43,715 $35,787 $29,180 $23,961 $20,199 $17,968 $17,343 $18,406
CA
SH
FL
OW
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
33
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Assets
Cash $88,034 $74,819 $63,290 $52,903 $43,715 $35,787 $29,180 $23,961 $20,199 $17,968 $17,343 $18,406
Other Current Assets $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Total Current Assets $108,034 $94,819 $83,290 $72,903 $63,715 $55,787 $49,180 $43,961 $40,199 $37,968 $37,343 $38,406
Long-term Assets $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Accum. Depreciation $33 $67 $100 $133 $167 $200 $233 $267 $300 $333 $367 $400
Total Long-term Assets $5,967 $5,933 $5,900 $5,867 $5,833 $5,800 $5,767 $5,733 $5,700 $5,667 $5,633 $5,600
Total Assets $114,001 $100,752 $89,190 $78,770 $69,549 $61,587 $54,946 $49,694 $45,899 $43,635 $42,977 $44,006
Current Liabilities
Accounts P ayable $17,980 $17,716 $18,068 $18,438 $18,827 $19,235 $19,665 $20,116 $20,590 $21,088 $21,612 $22,162
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $17,980 $17,716 $18,068 $18,438 $18,827 $19,235 $19,665 $20,116 $20,590 $21,088 $21,612 $22,162
Long-term Liabilities $148,611 $147,214 $145,809 $144,396 $142,974 $141,544 $140,106 $138,659 $137,204 $135,741 $134,269 $132,788
Total Liabilities $166,591 $164,930 $163,877 $162,833 $161,801 $160,779 $159,771 $158,775 $157,794 $156,829 $155,880 $154,950
P aid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975) ($39,975)
Current Retained Earnings ($12,615) ($24,203) ($34,712) ($44,088) ($52,277) ($59,218) ($64,849) ($69,106) ($71,920) ($73,220) ($72,929) ($70,969)
Total Capital ($52,590) ($64,178) ($74,687) ($84,063) ($92,252) ($99,193) ($104,824) ($109,081) ($111,895) ($113,195) ($112,904) ($110,944)
Total Liabilities and Capital $114,001 $100,752 $89,190 $78,770 $69,549 $61,587 $54,946 $49,694 $45,899 $43,635 $42,977 $44,006
BA
LA
NC
E S
HE
ET
_______________________________________________________________________________CONFIDENTIAL – Do Not Distribute Without Permission
34
top related