tier 1 business plan sample

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Business Plan


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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by Development Groupin thisbusiness plan is confidential; therefore, reader agrees not to disclose it without the expresswritten permission of Development Group.It is acknowledged by reader that information to be furnished in this business plan is in all respectsconfidential 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 toDevelopment Group.Upon request, this document is to be immediately returned to Development Group.

___________________Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.


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Table of Contents

1.0 E xecutive Summary ................................................................................... ..............................................1Chart: Highlights ........................................................................... ..............................................1

1.1 Compa ny Summary ......................................................................... ..............................................22.0 Products ....... ............................................................................................. ..............................................23.0 Market Analysis Summary ......................................................................... ..............................................24.0 Strategy and I mplementation Summary ..................................................... ..............................................2

4.1 Competi tive Edge ............................................................................ ..............................................34.2 Marketing Strategy .......................................................................... ..............................................34.3 Sales St rategy ................................................................................. ..............................................34.4 Milestones ....................................................................................... ..............................................4

Table: M ilestones ......................................................................... ..............................................5Chart: M ilestones ......................................................................... ..............................................5

5.0 Management S ummary ............................................................................. ..............................................56.0 Fina ncial Plan ........................................................................................... ..............................................5

Table: Financials ........................................................................................................................6Chart: Profit Monthly ..................................................................................................................7Chart: Profit Yearly .....................................................................................................................7Chart: Sales Monthly ..................................................................................................................8Chart: Sales by Year ..................................................................................................................8

6.1 Projected Cash Flow ......................................................................................................................8Chart: Cash ................................................................................................................................9

Table: Financials ...........................................................................................................................................1


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1.0 Executive Summary

Development Group is dedicated to providing a quality choice for people looking for fruit,plants, and accessories for gradening and planting as well as serving contractors who need areliable source of products. Our start-up expenses come to $150,000 which includes the costof all the thing sthat are need to get going. The start-up costs will be financed entirelyby Kevin and Matt Smith who are also owners.We will offer a wide variety of fruits, trees, accessories, along with amazing customer servicethat defines us. Most of the things we sell will be better than can be found anywhere else.With a convenient location Develpoment Group intends to successfully market to the retailcustomers, as well as contractors and home ownersWe would like to see a six to eight percent increase in our sales and customer base eachquarter. Ourmarketing strategy includes providing a unique great customer service environment, really goodlow prices, a nice friendly location, and top notch products.Development Group has been the dream of the 2 founderds Kevin and Matt Smith for manyyears, andhas been a project in the making for the last 2 years. Kevin and Matt will manage all aspects of operations at the Nursery, but hire who is needed when they are needed. Dan will oversee thestaff and be involved with making sure top notc h customer service is provided, while Jim will beresponsible for making sure the right product of the best quality is present at the store at alltimes and replenish when need be.Our goal is to experience a growth rate of 35% in sales and increased customer traffic forthe first year of operation and build upon that as the company grows. With aggressivemarketing, and many choices that competitors do not habe, plants and accessories and fruits forour buyers our Nursery intends to make its presence in the nursery community.


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1.1 Company Summary

Development Group is the brainstorming of brothers Kevin and Matt Smith, and ovder the yearshas been a project that has taken many forms in the making and aggressivelyfor several years. With an intended opening date of August of this year, Kevin and Mattare realizing that the dream of operating a nursery is on the very verge of become a reality.Located in Chicago, Illinois, the Nursery will focus on selling the first rate quality fruits andtrees and accessories that the owners envision it to. Our number one priority is to serve bothretail customers and landscaping contractors. We will also have a large variety of fruitplanting accessories and other products that are typically found in a great nursery like the onewe are building.

2.0 Products

Development Group will offer a wide variety of fruits, plants, accessories, and other thingsthat would typically be found in a top notch nursery and that go hand in hand with palntingand gardening. The things we sell will be well thought out and proven products t hat have shownin the past a great deal of success in other nursery operations. We do not intend to recreatewhat is already being down corectly, we can grab a percentage of market share with ourservice.

3.0 Market Analysis Summary

Development Group target market strategy is based on bec oming an outstanding choice forhomeowners and landscape contractors in the Chicago, Illinois region. The targetmarkets we are going to pursue are the residential/retail consumers looking for a wide varietyof plants


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4.1 Competitive Edge

Our Nursery will have one of the most biggest selection and affordable plant and flowerselectionsin the Chicago, Illinois area, and a very top notch crack staff ready to provide the absaloutebest customer service. Contractors looking for the best nursery in town will find us verysupportive and easy to work with. The ease and convenience of our location and the amazingprices is a very big draw.

4.2 Marketing Strategy

In addition to price, selection, and item promotional announcements, the nursery will focus itsmarketing efforts via several key direct-to-consumer advertising venues:Local and Regional Magazine Publications: Each of these advertising venues provides anabsaloure great demographic base that lines up perfectly with that of the nursery.

Direct Mail Flyers: The nursery will seek to increase buyer awareness, retain theexisting contractors base and promote increased sales via seasonal flyer mailings. These mailingswill be targeted around promotional events and are intended to real sell products orshowcase c ontractor negotiated specials.Website Marketing: As we continue to establish our e-commerce business segmentduring 2nd and 3rd years of operation, we will support the business via search enginemarketing, google advertising, URL links and e-mail marketing. This third channel of business willincrease the buyers base, sales potential and service opportunities provided by the internetand contractors.

4.3 Sales Strategy


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tier 1 samplewithin this category of business. Attending market stuff like this will not only allow us toensure our product offer is current and up-to-date but will provide us with great new storeadvertising and display ideas.To stay abreast of market and buyer trends, we will utilize the following trade publications toreinforce and to continue to expand our knowledge base:

News Home Today Home Buyer Residential Mag Accessory News Decorative Plants Growers Daily

MERCHANDISING

Products will be showcased via unique merchandising designing that inspires and promotesmultiple purchases. We look to make the best and a strong visual impact creating an invitationto feel and purchase.PRICING

It is the goal of Nursery to offer style and quality at a very extremely aggressive price to theconsumer. Our pricing structure will support a 75% gross margin and position us competitivelywher no one ese can tough us within the marketplace. Seasonal promotional offers and theabsaloute best anniversary sale events will make a lot of additional sales and multiple unitpurchases take place.OUR EMPLOYEES

Employees of the company are an integral part of the shopping experience for the buyer. Allemployees will be developed for education and advancement, and compensated higher thanother companies with effective training that will enable them to confidently impress the buyers.TECHNOLOGY


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Table: MilestonesMilestones

Milestone Start Date End Date Budget Manager DepartmentEquipment 12/13/2009 1/12/2010 $190 Matt AccInventory 12/13/2009 1/12/2010 $1,870 Matt MainComputer 12/13/2009 1/12/2010 $1,500 Kevin FinComputer 12/13/2009 1/12/2010 $2,000 Matt AccLegal 12/13/2009 1/12/2010 $1,650 Matt SalesLaunch 12/13/2009 1/12/2010 $1,800 Kevin SalesDue Diligence 12/13/2009 1/12/2010 $1,200 Kevin AccOther 12/13/2009 1/12/2010 $400 Kevin MainMiscellaneous 12/13/2009 1/12/2010 $200 Kevin Main

Totals $10,810


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Table: FinancialsFinancials

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012Beginning BalanceOpening Balance Cash & Checking $149,500 $236,300 $307,700 $394,500 $486,100

Plus Money ReceivedNew Investment $0 $0 $0 $0 $0New Loans $0 $0 $0 $0 $0Sales $243,000 $250,000 $275,000 $315,000 $325,000Other $12,000 $0 $0 $0 $0Subtotal Money Received $255,000 $250,000 $275,000 $315,000 $325,000

Less Mone y Spent

Direct CostsDirect Cost of Sales $120,000 $125,000 $129,000 $143,000 $165,000Other Costs of Sales $12,000 $14,000 $16,000 $20,000 $25,000

Normal Operating ExpensesPayroll and Payroll Taxes, Benefits, Etc. $15,900 $16,500 $18,000 $19,000 $23,000Rent and Util i ties $5,900 $6,500 $7,500 $8,500 $9,600Sales and Marketing Expenses $12,000 $14,000 $15,000 $20,000 $21,000Other Operating Expenses $2,400 $2,600 $2,700 $2,900 $3,000

Other OutflowsPayments of Taxes $0 $0 $0 $0 $0Debt Payments $0 $0 $0 $0 $0Purchase of Assets $0 $0 $0 $10,000 $0Other $0 $0 $0 $0 $0Subtotal Money Spent $168,200 $178,600 $188,200 $223,400 $246,600

Ending Balance


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Appendix

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Table: Financials

Financials

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovBeginning Balance

Op en in g Ba la nce Ca sh & Ch eckin g $ 1,0 00 $ 14 9,5 00 $ 15 9,3 00 $ 16 6,1 00 $ 17 2,6 00 $ 17 9,4 00 $ 18 6,0 00 $ 19 2,4 00 $ 19 9,7 00 $ 20 7,1 00 $ 21 4,4 00 $ 22 1,7 00 $ 22 9,0 00

Plus Money ReceivedNew Investment $150,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales $0 $23,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000Other $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000Subtotal Money Received $150,000 $24,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000 $21,000

Less Money Spent

Direct CostsDirect Cost of Sales $0 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000Other Costs of Sales $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Normal Operating ExpensesPayroll and Payroll Taxes, Benefits, Etc. $0 $1,500 $1,500 $1,800 $1,500 $1,700 $1,900 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000Rent and Utilities $500 $500 $500 $500 $500 $500 $500 $500 $400 $500 $500 $500 $500Sales and Marketing Expenses $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000Other Operating Expenses $0 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Other OutflowsPayments of Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Debt Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase of Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Money Spent $1,500 $14,200 $14,200 $14,500 $14,200 $14,400 $14,600 $13,700 $13,600 $13,700 $13,700 $13,700 $13,700

Ending BalanceEn din g Ba la nce Ca sh a nd Ch eckin g $ 14 9,5 00 $ 15 9,3 00 $ 16 6,1 00 $ 17 2,6 00 $ 17 9,4 00 $ 18 6,0 00 $ 19 2,4 00 $ 19 9,7 00 $ 20 7,1 00 $ 21 4,4 00 $ 22 1,7 00 $ 22 9,0 00 $ 23 6,3 00

Profit Before Interest and TaxesSales $23,000 $20,000 $20,000 $20,000 $ 20,000 $20,000 $ 20,000 $20,000 $ 20,000 $20,000 $ 20,000 $20,000Less Cost of Sales ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000) ($11,000)

Gross Margin $12,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000Less Operating Expenses ($3,200) ($3,200) ($3,500) ($3,200) ($3,400) ($3,600) ($2,700) ($2,600) ($2,700) ($2,700) ($2,700) ($2,700)

Profit Before Interest and Taxes $8,800 $5,800 $5,500 $5,800 $5,600 $5,400 $6,300 $6,400 $6,300 $6,300 $6,300 $6,300


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Appendix

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Net Cash Flow $9,800 $6,800 $6,500 $6,800 $6,600 $6,400 $7,300 $7,400 $7,300 $7,300 $7,300 $7,300

tier 1 business plan sample

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