cell phones retailer business plan

8/12/2019 Cell Phones Retailer Business Plan

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1onfidentiality Agreement

he undersigned reader acknowledges that the information provided by ??????????????? in thisbusiness plan is confidential@ therefore, reader agrees not to disclose it without the e6press written

permission of ???????????????.

t is acknowledged by reader that information to be furnished in this business plan is in all respects

confidential in nature, other than information which is in the public domain through other meansand that any disclosure or use of same by reader, may cause serious harm or damage to

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pon re-uest, this document is to be immediately returned to ???????????????.

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his is a business plan. t does not imply an offering of securities.


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Table of Contents

1.0 Executive Summary...............................................................................................................................1

Chart: Highlights..................................................................................................................................2

1.1 eys to Success.................................................................................................................................21.2 !ission..............................................................................................................................................2

1." #b$ectives.........................................................................................................................................."

2.0 Com%any Summary...............................................................................................................................&2.1 Com%any #'nershi%.........................................................................................................................&

2.2 Start(u% Summary..............................................................................................................................&

Chart: Start(u%......................................................................................................................................)Table: Start(u%.....................................................................................................................................)

......................................................................................................................................................................)

&.0 !ar*et +nalysis Summary....................................................................................................................,&.1 !ar*et Segmentation.........................................................................................................................-

Table: !ar*et +nalysis........................................................................................................................-

Chart: !ar*et +nalysis Pie/...............................................................................................................-&.2 nustry +nalysis...............................................................................................................................

&.2.1 Com%etition an 3uying Patterns...............................................................................................4

&." Target !ar*et Segment Strategy.....................................................................................................10).0 Strategy an m%lementation Summary...............................................................................................10

).1 Com%etitive Ege............................................................................................................................10

).2 !ar*eting Strategy..........................................................................................................................11)." Sales Strategy...................................................................................................................................12

).".1 Sales 5orecast............................................................................................................................12

Table: Sales 5orecast.....................................................................................................................12

Chart: Sales !onthly.....................................................................................................................1"Chart: Sales by 6ear......................................................................................................................1"

).& !ilestones........................................................................................................................................1&

Table: !ilestones...............................................................................................................................1&


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Table of Contents

Table: Profit an 7oss........................................................................................................................21

-.) Pro$ecte Cash 5lo'........................................................................................................................21Table: Cash 5lo'...............................................................................................................................22

...............................................................................................................................................................2"-., Pro$ecte 3alance Sheet..................................................................................................................2&

Table: 3alance Sheet..........................................................................................................................2&

...............................................................................................................................................................2&

-.- 3usiness 9atios................................................................................................................................2)Table: 9atios......................................................................................................................................2)

Table: Sales 5orecast...................................................................................................................................1

......................................................................................................................................................................1

Table: Personnel...........................................................................................................................................2

......................................................................................................................................................................2

Table: Profit an 7oss.................................................................................................................................."

......................................................................................................................................................................"

Table: Cash 5lo'.........................................................................................................................................&

......................................................................................................................................................................)

Table: 3alance Sheet....................................................................................................................................,


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8arbles Cellular Phones

9.+ C6ecutive #ummary

1ellular telephones have revolutioniDed the communications arena, redefining how we perceivevoice communications. raditionally, cellular phones remained out of the hands of most

consumers due to their high cost. As a result, cell phone carriers have invested time and

resources into finding ways to give the systems higher capacity and thus lower cost. 1ellsystems are benefiting from this research and starting to develop into large:scale consumer

products.

oday, cellular phones are truly consumer electronics devices with over 2< million subscribers.

he 5okia 'owl and Eualcomm #tadium are further evidence of the idea that cell phones areconsumer electronics devices. 1ell phones have ceased to be an e6clusive status symbol of

high:powered lawyers and are now in the hands of millions of consumers.

Farbles 1ellular hones, nc. is taking advantage of an opportunity to become a highly

distinguished and recogniDed leader in the cellular communications industry. t is the goal ofour company to become established as the leading distributor of wireless communications

services in the metro 5iceburg area.

n order to achieve this goal, Farbles 1ellular honesG critical success factors will be to identify

emerging trends and integrate them into our company operations, respond -uickly totechnology changesHbe there early, provide high:-uality services, invest time and money in

marketing and advertising, e6pand into specialty markets, and stay ahead of the Itechnologycurve.I

he company was initially formed as a sole proprietorship by Jr. #eramed Farbles in the CastAtlantic sland Archipelago $CAA&, and succeeded tremendously in that market. 1apitaliDing on

the growing wireless communications industry and based on their success in CAA the Farblesfamily decided to e6pand their companyGs operations to the .#.A. and create a niche market

for its products and accessories.


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1hart! Kighlights

9.9 eys to #uccess

Mur company keys to success will include!

9. rovide e6cellent customer service

*. Frow and maintain a referral network of customers

N. )ocus e6pertise in F#J cellular phones and F#J cellular phone programsO. 7espond rapidly to customer problems with product or plan

9 * Jission


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9.N Mbjectives

he company plans to focus on the following target markets that will provide us with thegreatest market penetration! the specialty business users, the general business users, and the

personal users. We intend to offer products and service packages that are priced appropriately

for each segment and will offer the services that best suit each segmentGs needs.

he suburb of leasant Pillage, picked to be our head-uartersG location, is a focal point in the

5iceburg area. Located a few miles south of downtown 5iceburg, it is a community with a smalltown atmosphere but big city conveniences.

he Jetro 5iceburg area is populated today by more than =++,+++ inhabitants, is home to 9N)ortune 2++ and *O )ortune 9,+++ company head-uarters. he Jetropolitan 5iceburg 1hamber

of 1ommerce and corporate e6ecutives are committed to actively recruiting new companies tothe region. ublic and private partnerships with business, financial and nonprofit communities

are key to spurring -uality job creation and investment throughout the citys neighborhoods.

Mur company will center on serving the growing the 5iceburg community $presently at a >3per year rate& as well as concentrating on the local leasant Pillage population, banking on the

current growing trend of using mobile phones.

Mur company will concentrate on selling Flobal #ystem for Jobile 1ommunications $F#J&protocol cellular phones : sales, services and support.

B&siness '()ecti%es

1ompany growth

'ecome established as the leading distributor of cellular phones and wirelesscommunications services

ncrease number of retail outlets


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*.+ 1ompany #ummary

Farbles 1ellular hones, nc. will offer its customers F#J cellular phones, and cellular phonesaccessories.

F#J stands for IFlobal #ystem for Jobile 1ommunications.I F#J is originally a Curopean

system and is largely being adopted today in the nited #tates. ts greatest advantage, atechnical one, is that the owner can use the phone all over the world since the system is used

mostly anywhere.

Jarket demand drives cell phone manufactures and service providers to offer new andimproved services and functions in their cell phones. he demand for more visual interactionand entertainment with cell phones in the Qapanese market, for instance, is great and as such,

their phones are many years ahead of what we will see in the .#.A. hones have definitelybecome an important part of peopleGs lives all over the world, whereas in 5orth America many

still view the cell phone as a tool and not as a entertainment device. he average phone in5orth America lasts N:2 years before being replaced, in Qapan it is a fraction of this time.

We believe that, with our long and thorough e6perience in the CAA, our store will be in the

perfect location to start our operations in the .#.A., and will start operating in the right time.

Farbles 1ellular hones will provide its customers support and convenience second to none.

*.9 1ompany Mwnership

Farbles 1ellular hones is wholly owned by Jr. #eramed Farbles, who is a citiDen of the CastAtlantic sland Archipelago and the owner of Farbles 1ellular hones Ltd in that country.

*.* #tart:up #ummary

Jr. #eramed Farbles will invest RON,+++ in Farbles 1ellular hones, nc. Ke will also investan additional R2+,+++ when operation takes off in April Year 9. he following chart and table


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1hart! #tart:up

able! #tart:up

Start-up

Requirements

Start-up Expenses

Legal $5,000Insurance $1,000Rent $2 000


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".0 Prouctshe following are the products that will be offered by Farbles 1ellular hones!

S+ Cell&lar Phones! Jotorola, 5okia, #harp, #iemens, #amsung, Alcatel, Cricsson,

)ujitsu, Kyundai, LF Clectronics, and others.

*i-ed ireless Phones

Cell&lar Phone Accessories! antennas, batteries, belt clips, cables and adapters, cases,

chargers, faceplates, and modems.

O.+ Jarket Analysis #ummary

he market potential is huge for our products, evidenced by what appears to be the

unstoppable growth of the telecom industry. 1urrently, the telecom industry is among thestrongest growth industries and is responsible for huge gains in the capital markets. he

proliferation of cellular phones is increasing at rates which at one time were unimaginable. Mneillustrative e6ample is that it is forecasted that within two years over >23 of children from age

of 9+:92 will have cell phones.

)uture growth of the marketHproducts is projected in the following areas!

e6t messages between friends $in Qapan this big&. sers can send regular #hort:Jessage#ervice $#J#& or email on their phones. Cmail is of course limited to small file siDes, but many

of the phones allow for Cnglish characters to be sent. Cach provider also allows specialcharacters to be sent, such as an array of happy and sad faces, small animated images,

animals, people, hearts, etc. When special characters are not available, people often use aspecialiDed set of faces to show emotion. Cmail can also be sent between different provider

phones, but many of the special characters are lost, hence users may try to keep a circle offriends on the same provider to receive the special characters. Cmail, of course, may be sent

from computers as well, but files are often stripped of headers and attachments when receivedon cell phones.

Jost 5orth American phones come with a few games to keep people entertained for a limited


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O.9 Jarket #egmentation

Farbles 1ellular hones, nc. will focus on five customer groups, bearing in mind that it is -uitecustomary today to have more than one cell phone per family!

1hildren in the age group of 9+:9= years old

#tudents

Feneral public

rofessionals

#ervice organiDations and companies that need to be in constant communication with their

employees.

able! Jarket Analysis

Market Analysis

(ear 1 (ear 2 (ear & (ear ' (ear 5

)tential "ustmers *r+th "!*R

"hil#ren 10-1 %ears l# & .0,000 .2,00 .5,'/1 ./,&'5 101,2.5 &00Stu#ents 2 50,000 51,000 52,020 5&,00 5',121 200)ressinals 2 '0,000 '0,/00 '1,1 '2,''/ '&,2. 200*eneral )u3lic 2 250,000 255,000 20,100 25,&02 20,0/ 200Operating Serice "mpanies ' '0,000 '1,00 '&,2' '',..5 ',.5 '00Other 1 &0,000 &0,&00 &0,0& &0,.0. &1,21/ 100

Total 22. 500,000 511,'00 52&,0/' 5&5,05. 5',&&' 22.

1hart! Jarket Analysis $ie&


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O.* ndustry Analysis

he .#. market is dominated today by three large companies!

T"+o(ile ireless: owned by a subsidiary of Beutsche elekom since Jay N9, *++9.

7evenues!C6ceeding R9N.> billion in *++9.

Wireless hone #ervice #ubscribers! 1ellular voice, messaging and high:speed wireless data

services to more than ; million customers.

1ellular hone #ervice and echnology! :Jobile Wireless operates the largest all digital,wireless network based e6clusively on F#J $Flobal #ystem for Jobile 1ommunications&technology. F#J is the most widely used digital standard worldwide, accounting for more

than =+ percent of the total digital wireless market.

Cing&lar irelessis the second largest wireless company in the .#. A leader in mobile voice

and data communications, 1ingular is a wireless company determined to promote the individualto a new level.

Mwnership! 1ingular Wireless is a joint venture between the domestic wireless divisions of

#'1 $5Y#C!#'1& and 'ell#outh $5Y#C! 'L#&. Kead-uarters in Atlanta, Feorgia. #'1 owns>+ percent of the company and 'ell#outh owns O+ percent, based on the value of the assets

both contributed to the venture.

7evenue on the cellular service in Year *++* was more than R9O.= billion.

1ellular hone #ervice #ubscribers! more than ** million voice and data customers across

the .#.A.

1ellular hone #ervice and echnology! A leader in mobile voice and data communications,1ingular is the only .#. wireless carrier to offer 7ollover, the wireless plan that lets

customers keep their unused monthly minutes. 1ingular provides cellularH1# service in ON

of the top 2+ markets nationwide, and provides corporate e:mail and other advanced data


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O.*.9 1ompetition and 'uying atterns

'rand names are of little, if any, importance. he key to the buying decision on the part of theconsumer is the salesman and the cell phone being in front of them. As has been pointed out inthe 1ompetitive Analysis section there are other sellers with similar brand names as those

supplied by Farbles 1ellular hones, nc. which may even be less e6pensive. t is essential thatthe salesman point out the salient features and selling points favoring our products. Jost

importantly, our products must be available in the retail outlet, since whatever products ourstore carries are the ones that are going to be sold.

he need to attract, ac-uire, leverage, and retain customers remains a primary concern to

business. 7evenue growth through customer ac-uisition and retention is as important are-uirement in e:commerce as it is in other business. 1ustomers, especially in the Westernbusiness culture, count speed of service as a key reason why they do business with a company.

hey resent delays and hate waiting for service. n the nited #tates, almost ;+3 of the grossdomestic product $FB& is generated through different kinds of services, and speed of service

no longer distinguishes an enterprise as providing superior value. 1ustomers generally are notthrilled if they receive good service, but they are highly dissatisfied if they do not. Farbles

1ellular will provide the necessary framework to cope with these demands by cutting thewaiting time for a service.

1ustomers also want consistent, reliable, and easy:to:use service. As the speed of serviceincreases, customer e6pectations grow, making friendly, easy, and solution:oriented customer

service an important business trend.

7eflective shoppers get some support from e:commerce as well. hey like to investigate

products precisely and consciously. Kowever, when browsing costs a lot because of on:linecharges, they do less of it. 1onse-uently, they do not get a holistic view of the available

options, and their e6pectations often are not met. 7eference:spending customers do not letthemselves be hurried or forced. hey use alternative offline sources to get information. heyrefuse aggressive marketing, which is accepted in Western e:commerce.

# h ill i l th i ll h th it th t d th h ill


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O.N arget Jarket #egment #trategy

he market for cellular phones and their accessories is very fragmented, crowded andcompetitive. Among these, there are only a few large local firms that serve the entire city of

5iceburg and its surroundings. he remainder are small firms that sell from kiosks in the

surrounding malls. Farbles 1ellular hones current niche in its location, variety of products ande6pertise in serving the public will assure the projected sales.

We e6pect to take full advantage of the trends described in the Jarket Analysis above, and tryto penetrate the market with new innovations and gadgets U mainly with the younger

generation, using advertisements and demonstrations. We shall also try to lure independentsmall sellers to join our effort.

2.+ #trategy and mplementation #ummary

Farbles 1ellular hones will use a strategy of total market service. Assumptions!

9. Cvery person is a potential customer and all our potential markets will e6perience growth.*. Jarketing to one segment of the population will lead to an e6pansion in overall market

growth.

he following sections review the various strategies that will support this effort.

2.9 1ompetitive Cdge

he #eramed 1ommunicationGs competitive edge will be!

0ocation! Locating the company in a suburb of 5iceburg, Komestate enables the company tocover a large and rapidly developing customer populace.

C&stomer Ser%ice! Jr #eramed Farbles owner and 1CM of Farbles 1ellular nc has been


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2.* Jarketing #trategy

#hort:term marketing strategies are those that bring will bring us a temporary boost in traffic.Although these techni-ues are very important to our over:all plan, they are only a temporary

traffic source and must not be solely relied upon. #hort:term marketing strategies include!

urchasing Advertising

'ulletin 'oards

#earch Cngines

Long:term marketing strategies are those that will bring us a steady stream of targeted trafficover time. hese strategies will continue to produce results even years down the road. Long:term marketing strategies include!

Mpt:in Lists

)reebies

1ontent

'y creating and implementing a balanced marketing strategy, using both short:term and long:term strategies, Farbles 1ellular will drive a steady stream of targeted traffic to our website.

sing this simple formula when creating our nternet marketing strategy and e6celling at all

three, we hope to guarantee our success.

Mur short:term marketing strategy will focus heavily on sales promotion, niche positioning in

the market and customer service with loyalty and retention in sales.

Mur promotions will always stay in tune with our company objectives and mission statement.


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2.N #ales #trategy

1onstructing our #ales #trategy we shall follow the following steps!

Sales S&ccess 2e3&ires Planning: we shall formulate our sales strategy and tactics toachieve our sales success.

Analy4e '&r Potential: we shall step through a structured process that will prepare us forthe development of our sales strategy.

Strategi4e Aro&nd Strengths: the description of our sales activity will be analyDed producinga report that reveals factors impacting our sales potential.

5e%elop '&r Tactics: we shall receive guidance to develop a comprehensive tactical plan to

achieve our success.

+eas&re '&r S&ccess: we shall constantly develop key measurements that mark theprogress of financial estimates that guide our growth.

mploy An Action Plan for S&ccess: we shall provide our sales force a clear tactical planthat is also aligned with managementGs strategic objectives.

he sales strategy of Farbles 1ellular hones is simple. he key to customer satisfaction ishaving the product and services that meet the customerGs needs. A crucial part of that is to also

have knowledgeable employees to help customers -uickly find what they want.

2.N.9 #ales )orecast

#ales forecast displayed here is very conservative U although we aim very high, we decided toshow a very slow growth and revise the plan on a yearly basis. As a rule we e6pect to e6pand

the volume much more rapidly


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1hart! #ales Jonthly

1hart! #ales by Year


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>.+ Janagement #ummary

he management of Farbles 1ellular hones, nc. is made up of the owner, a Jarketingmanager $Jr. 5omassu eroDia& and three other members who will be hired locally and will

be added! a rogrammer, and two store attendants with one serving at the beginning as

secretary.

>.9 ersonnel lan

he Farbles 1ellular honesG store will operate virtually *O hours a day = days a week. Although

the store opening hours will be officially 9+!++ a.m. to >!++ p.m., it is clear that due to ournternet operation the customer support will be a non:stop one. he personnel plan, as detailedin the following table, has been developed to support these hours.

Assumptions regarding personnel have been made for year 9 through year N as follows!

6ear 1 nding +arch, #$$7: Mwner, Jr. #eramed Farbles, will draw a salary of RO*,+++.

he Jarketing Janager, Jr. 5omassu eroDia will receive a yearly salary of R*>,O++. heprogrammer will have R*9,+++ a year plus a percentage of his nternet sales, and the two store

attendants will earn R9>,;++ each. Kowever, they will divide the total week hours betweenthem so that only during busy hours will they both be present.

6ear # nding +arch, #$$8: #alaries will be boosted by 9+ : 92 percent. Additional staff willbe hired if significant increases in sales warrant.

he same applies to 6ear 9 nding +arch, #$$:.

able! ersonnel

Personnel Plan


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-.0 5inancial Plant is assumed that the ownerGs private resources will be sufficient to finance any monthly cash:

flow shortage. Kowever, it would be advisable to establish a bank relationship as soon aspossible. #ales could very well increase at a much sharper rate than assumed in theseconservative projections. #harper sales will result in a greater need for funds in support of

inventory and receivables. An over:draft line of credit with the bank will be an e6cellent cushionto fall back on.

his is considered a very good time to start a new business. he economy is beginning itstrek up, and consumer spending is up. he 1ommerce Bepartment reported, I1onsumers had

increased their spending, the largest advance in nine months.I

A shorter learning curve will be brought to the business by the owner due to his e6tensive

background and in:depth market knowledge. Ke has a clear understanding of the need tomanage costs and forecast future needs so that the business is not IbroadsidedI by the

une6pected.

Mne other component on which the financial plan is based is wise purchases. )inding the right

product, at the right price will enable the business to meet planned margins and maintaininventory at an attractive level with a high turn rate.

=.9 #tart:up )unding

Jr. #eramed Farbles will invest RON,+++ in Farbles 1ellular hones, nc. to cover start:up

costs. Ke will also invest an additional R2+,+++ when operation takes off in April *++2. hetable below illustrates funding sources for our start:up costs.


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able! #tart:up )unding

Start-up Funding

Start-up Expenses t 4un# $11,000Start-up !ssets t 4un# $&2,000Ttal 4un#ing Require# $'&,000

!ssets

$0Ttal Lia3ilities $0

"apital

)lanne# Inestment

O+ner $'&,000Inestr $0!##itinal Inestment Requirement $0Ttal )lanne# Inestment $'&,000

Lss at Start-up =Start-up Expenses> =$11,000>Ttal "apital $&2,000

T t l " it l # Li 3iliti $&2 000


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able! 'reak:even Analysis

Break-even Analysis

7nthl% Reenue 8rea;-een $1,.1

!ssumptins?

!erage )ercent @aria3le "st 2'

Estimated Monthly Fixed Cost $1&,25

1hart! 'reak:even Analysis


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1hart! rofit Jonthly

1hart! rofit Yearly


25/37


1hart! Fross Jargin Jonthly

1hart! Fross Jargin Yearly


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able! rofit and Loss

Pro Forma Profit and Loss

(ear 1 (ear 2 (ear &

Sales $&5,000 $500,000 $10,0006irect "st Sales $/5,510 $12&,/0 $15,.00Other "sts Sales $2,/2' $&0,000 $'5,000Ttal "st Sales $112,&&' $15&,/0 $220,.00

*rss 7argin $2'', $&',1'0 $'/.,100*rss 7argin /5& .2& //.

Expenses

)a%rll $12&,000 $1&5,.0 $1'/,007ar;eting9)rmtin $',500 $10,000 $25,0006epreciatin $0 $0 $0Rent $2',000 $2',000 $2',000Insurance $12,000 $12,000 $12,000)a%rll Taxes $0 $0 $0Other $0 $0 $0

Ttal Operating Expenses $1&,500 $1/1,.0 $20.,00

)rit 8ere Interest an# Taxes $/1,1 $1',1/0 $2.,500E8IT6! $/1,1 $1',1/0 $2.,500

Interest Expense $0 $0 $0Taxes Incurre# $2',&50 $'.,25' $/&,/50


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able! 1ash )low

Pro Forma Cash Flow


"ash Receie#

"ash rm Operatins

"ash Sales $&5,000 $500,000 $10,000Su3ttal "ash rm Operatins $&5,000 $500,000 $10,000

!##itinal "ash Receie#

Sales Tax @!T :ST9*ST Receie# $0 $0 $0


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Cash !alance $1',/5 $25',5 $'51,&0


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=.> rojected 'alance #heet

he table shows the annual balance sheet results, with a healthy projected increase in networth. Betailed monthly projections are in the appendi6.

able! 'alance #heet

Pro Forma Balance Sheet


!ssets

"urrent !ssets

"ash $1',/5 $25',5 $'51,&0Inentr% $/,000 $20,.' $2/,/1'Other "urrent !ssets $0 $0 $0Ttal "urrent !ssets $15',/5 $25,21 $'/0,121

Lng-term !ssets

Lng-term !ssets $0 $0 $0!ccumulate# 6epreciatin $0 $0 $0Ttal Lng-term !ssets $0 $0 $0Ttal !ssets $15',/5 $25,21 $'/0,121

Lia3ilities an# "apital (ear 1 (ear 2 (ear &

"urrent Lia3ilities

!ccunts )a%a3le $15,/. $21,51/ $&0,2."urrent 8rr+ing $0 $0 $0Other "urrent Lia3ilities $0 $0 $0Su3ttal "urrent Lia3ilities $15,/. $21,51/ $&0,2.

Lng-term Lia3ilities $0 $0 $0Ttal Lia3ilities $15,/. $21,51/ $&0,2.

)ai#-in "apital $.&,000 $.&,000 $.&,000


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=.= 'usiness 7atios

'usiness ratios for the years of this plan are shown below. ndustry profile ratios based on the#tandard ndustrial 1lassification $#1& code 2=N9.


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Di#idend Payout 000 000 000 na


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+%%enix

able! #ales )orecast

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales

Cellular Phones 0% $10,000 $ 10,000 $ 10,000 $ 11,000 $ 11,000 $ 11,000 $ 12,000 $ 12,000 $ 12,000 $ 13,000 $ 13,000 $ 13,000Ce llu lar Phones Acc es sori es 0% $9,000 $9, 000 $9 ,000 $1 0,000 $10,000 $10,0 00 $11 ,000 $1 1,000 $ 11,000 $12,00 0 $12,0 00 $12 ,000i!e" #ireless Phones 0% $3,500 $3,500 $3,500 $3,750 $3,750 $3,750 $4,000 $4,000 $4,000 $4,250 $4,250 $4,250ther Seices 0% $3,500 $ 3,500 $3,500 $ 3,750 $ 3,750 $3,750 $4,000 $ 4,000 $ 4,000 $ 4,250 $4,250 $4,250&otal Sales $26,000 $ 26,000 $26,000 $28,500 $ 28,500 $ 28,500 $31,000 $31,000 $ 31,000 $ 33,500 $33,500 $33,500

'irect Cost o( Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cellular Phones $2,300 $2,300 $2,300 $2,500 $2,500 $2,500 $2,750 $2,750 $2,750 $3,000 $3,000 $3,000

Cellular Phones Accessories $2,250 $2,250 $2,250 $2,400 $2,400 $2,400 $2,600 $2,600 $2,600 $2,900 $2,900 $2,900

i!e" #ireless Phones $900 $900 $900 $950 $950 $950 $1,000 $ 1,000 $ 1,000 $ 1,050 $1,050 $1,050

ther Serices $900 $900 $900 $950 $950 $950 $1,000 $1,000 $1,000 $1,060 $1,050 $1,050

Subtotal Direct Cost of Sales $6,350 $6,350 $6,350 $6,800 $6,800 $6,800 $7,350 $7,350 $7,350 $8,010 $8,000 $8,000

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Personnel Plan


C) 0% $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500Mar*etin+ Mana+er 0% $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200

Pro+rae r- ((ic e A" in is trator 0 % $1,7 50 $1,750 $1 ,750 $1,7 50 $1,750 $1 ,750 $1,7 50 $1,750 $1 ,750 $1,7 50 $1,750 $1 ,7502 Store Atten"ant"s 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800ther 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0&otal Peo.le 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250

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able! rofit and Loss

Pro Forma Profit and Loss


Sales $26,000 $26,000 $26,000 $28,500 $28,500 $28,500 $31,000 $31,000 $31,000 $33,500 $33,500 $33,500

'irect Cost o( Sales $6,350 $6,350 $6,350 $6,800 $6,800 $6,800 $7,350 $7,350 $7,350 $8,010 $8,000 $8,000

ther Costs o( Sales $2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487

&otal Cost o( Sales $8,350 $8,390 $8,431 $8,922 $8,965 $9,008 $9,602 $9,647 $9,693 $10,400 $10,438 $10,487

/ross Mar+in $17,650 $ 17,610 $ 17,569 $ 19,578 $ 19,535 $ 19,492 $ 21,398 $ 21,353 $ 21,307 $ 23,100 $ 23,062 $ 23,013

/ross Mar+in % 6788% 6773% 6757% 6869% 6854% 6839% 6902% 6888% 6873% 6895% 6884% 6870%

)!.enses

Paroll $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250 $10,250

Mar*etin+-Prootion $0 $500 $500 $500 $0 $0 $1,000 $0 $1,000 $0 $1,000 $0

'e.reciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

ent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

nsurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Paroll &a!es 15% $0 $0 $0 $ 0 $0 $ 0 $ 0 $0 $ 0 $0 $ 0 $ 0ther $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

& ot al . er at in + ) !. en se s $ 13 ,2 50 $ 13 ,7 50 $ 13 ,7 50 $ 13 ,7 50 $ 13 ,2 50 $ 13 ,2 50 $ 14 ,2 50 $ 13 ,2 50 $ 14 ,2 50 $ 13 ,2 50 $ 14 ,2 50 $ 13 ,2 50

P ro (i t e( or e nt er es t a n" & a!es $ 4, 40 0 $ 3, 86 0 $ 3, 81 9 $ 5, 82 8 $ 6, 28 5 $ 6, 24 2 $ 7, 14 8 $ 8, 10 3 $ 7, 05 7 $ 9, 85 0 $ 8, 81 2 $ 9, 76 3

)&'A $4,400 $3,860 $3,819 $5,828 $6,285 $6,242 $7,148 $8,103 $7,057 $9,850 $8,812 $9,763

nterest )!.ense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

&a!es ncurre" $1,320 $1,158 $1,146 $1,748 $1,886 $1,873 $2,144 $2,431 $2,117 $2,955 $2,644 $2,929

et Pro(it $3,080 $2,702 $2,673 $4,079 $4,400 $4,369 $5,003 $5,672 $4,940 $6,895 $6,168 $6,834

Net Profit/Sales 1185% 1039% 1028% 1431% 1544% 1533% 1614% 1830% 1593% 2058% 1841% 2040%

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able! 1ash )low

Pro Forma Cash Flow


Cash eceie"

Cash (ro .erations

Cash Sales $26,000 $26,000 $26,000 $28,500 $28,500 $28,500 $31,000 $31,000 $31,000 $33,500 $33,500 $33,500

Sutota l Ca sh (ro .erati ons $ 26,0 00 $2 6,000 $26,000 $ 28,500 $28,500 $28,50 0 $31,00 0 $31,0 00 $31,0 00 $33, 500 $33 ,500 $33 ,500

A""itional Cash eceie"

Sales &a! , A&, S&-/S& ec eie " 000% $0 $0 $0 $ 0 $0 $0 $0 $0 $0 $0 $0 $0e Current orroin+ $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

e ther :iailities ;interest


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able! 'alance #heet

Pro Forma Balance Sheet


Assets Startin+ alances

Current Assets

Cash $2,000 $67,539 $76,957 $86,008 $97,421 $105,523 $109,922 $116,710 $121,204 $126,852 $134,251 $140,484 $146,685nentor $30,000 $23,650 $17,300 $10,950 $6,800 $6,800 $6,800 $7,350 $7,350 $7,350 $8,010 $8,000 $8,000ther Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0& ot al Cu rr en t Asse ts $ 32 ,0 00 $ 91 ,1 89 $ 94 ,2 57 $ 96 ,9 58 $ 10 4, 22 1 $ 1 12 ,3 23 $ 11 6, 72 2 $ 1 24 ,0 60 $ 12 8, 55 4 $ 1 34 ,2 02 $ 14 2, 26 1 $ 1 48 ,4 84 $ 15 4, 68 5

:on+

cell phones retailer business plan

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