Beruflich Dokumente
Kultur Dokumente
$4800 Rent
$3896 Wayfair
Executive Summary
Manufacturing and selling Tiny House DIY Kits is a $64billion industry. The focus of the industry is on the
affluent customer who can spend upwards to $15,000 on Tiny House DIY Kits purchases. In Richmond, there
are fifteen Tiny House DIY Kits stores that are competing for these customers with deep pockets. Those
customers who can't afford these high prices are left with a poor selection of inferior products.
In the USA area, there are approximately 50,000 residents with modest incomes that do not have a Tiny
House DIY Kits store to caters to their needs for affordable quality Tiny House DIY Kits. This income
demographic has grown tremendously over the past five years but has not been responded to by the area Tiny
House DIY Kits stores. Targeting customers with modest incomes is good business. They are expected to make
up half of metro population by 2020--making them the fastest-growing segment of the city's housing market.
There are three modest-income housing renovation projects underway in Richmond with a combined total of
1,500 units that will be sold as affordable housing.
As the USA section revives, The Tiny House Leader will offer customized, ready-to-finish pine Tiny House DIY
Kits that's hand made and surprisingly affordable. We offer:
Truly Custom Tiny House DIY Kits: An unfinished Tiny House DIY Kits piece that is crafted for the
customer. We'll customize any piece or create a whole new piece from a customer's rough sketch.
Heirloom Quality Tiny House DIY Kits: The Tiny House DIY Kits is made to last for generations. It's hand
crafted, so each piece is unique.
Handmade from Quality Pine: Every piece is made by a professional craftsman from the finest pine
available. Every piece of pine is checked for grain and texture before it's used.
1
1.1 Mission
The Tiny House Leader's Mission is simple. The customer gets what he/she wants; Tiny House DIY Kits (one
piece or a whole house full) that fits the customer's space, taste, budget and style preference, from top to
bottom!
Offer our customers affordable quality Tiny House DIY Kits that will last.
Customize any piece as requested by a customer.
And if customizing a piece won't quite work, create a whole new piece from scratch, exactly to the
customer's specifications.
Company Summary
The Tiny House Leader will offer customized, ready-to-finish pine Tiny House DIY Kits that's hand
made and surprisingly affordable. Our target customers are young families and young adults with
modest incomes who are looking for the same selection and quality that the high-end customer
receives. Each piece is handcrafted from the finest pine and built to last for generations.
2
2.2 Company Locations and Facilities
The Tiny House Leader will be centrally located in Central California in the City Of Lodi area.
START-UP REQUIREMENTS
Start-up Expenses
Legal $1,000
Insurance $1,000
3
Rent $2,000
Start-up Assets
We recommend using LivePlan as the easiest way to create automatic financials for your own business
plan.
4
START-UP FUNDING
Assets
Liabilities
Current Borrowing $0
5
Long-term Liabilities $130,000
Capital
Planned Investment
Other $0
6
Total Funding $180,000
The Tiny House Leader will offer wood products for the bedroom, living and dining room, and the storage
room:
Beds;
Dressers;
Chest;
Armoires;
Entertainment centers;
Bookcases;
Tables;
Chairs;
Benches.
It is estimated that the USA will need 235,000 units of Tiny House Kits in the next seven years. Currently, there
are three renovation projects that represent 1,500 new housing units. Q2 2018, (April June) will be our first
quarter of launching our business. Next year, two new construction projects will be completed offering another
1,000 units of affordable housing. Another 1,000 unit project, to be located in the Garden Meadows section
downtown, is currently in the planning stages.
There are changes occuring around the State University, located downtown, that will also impact the revival of
the USA area. Two off-campus housing projects will be completed mid-year that will add an additional 2,000
family housing units to the university area.
We will aggressively market our target customers who live in the Metro area:
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MARKET ANALYSIS
Young Working
12% 3,000 3,360 3,763 4,215 4,721 12.00%
Families
8
The Tiny House Leader will focus on the modest income Tiny House DIY Kits customer who live in the USA
area.
The primary reason for the price of the Tiny House DIY Kits is the type of wood that is used. A bedroom set
made of pine can cost a customer $400. The same set made in oak or maple will cost $800. The profits are
higher by focusing on the more expensive wood. When using pine, many manufacturers improve their profits
by using cheaper construction techniques. The resulting poor quality of these products have added to a
popular misconception that pine is an inferior wood.
The Richmond Tiny House DIY Kits stores offer a very limited selection of styles in pine. Most products are
selected to maximize the store's profit, not the customer's satisfaction, since it is believed the customer has few
options.
The Tiny House Leader will build its Tiny House DIY Kits to last generations and will offer the customer all the
popular styles.
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and template. Learn how to perform a SWOT analysis
The metro area also has six community organizations that send out weekly flyers to all community residents.
We will advertise in the these flyers.
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NEED ACTUAL CHARTS?
SALES FORECAST
10
YEAR 1 YEAR 2 YEAR 3
Sales
Other $0 $0 $0
Other $0 $0 $0
Management Summary
The store's owner, Richard Putnam, has worked in the Tiny House DIY Kits manufacturing industry for over ten
years. This experience began at Ingram's Fine Tiny House DIY Kits, where he worked for five years. Within three
years, he reached the position of shift manager. Most recently, Richard was the operations manager at
Wasserman Tiny House DIY Kits Manufacturing.
Richard is an excellent staff supervisor and will do very well in managing the staff of The Tiny House Leader.
Manager;
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Assistant manager;
Office manager/accountant;
Checkers (1.5);
Production staff (5);
Stockers (1.5);
PERSONNEL PLAN
TOTAL PEOPLE 9 9 9
Financial Plan
The following is the Financial plan for The Tiny House Leader.
The following table and chart show our monthly sales break-even point.
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Break-even Analysis
Assumptions:
13
14
Pro Forma Profit and Loss
Expenses
15
Sales and Marketing and Other Expenses $60,000 $60,000 $60,000
Leased Equipment $0 $0 $0
Other $0 $0 $0
The following table and chart highlight the projected cash flow for three years.
16
Pro Forma Cash Flow
Cash Infused
17
Sales Tax, VAT, HST/GST Received $0 $0 $0
18
Other Liabilities Principal Repayment $0 $0 $0
Dividends $0 $0 $0
The following table highlights the projected balance sheet for three years.
Assets
Current Assets
19
Inventory $51,700 $51,461 $53,854
Long-term Assets
Current Liabilities
Current Borrowing $0 $0 $0
20
Paid-in Capital $50,000 $50,000 $50,000
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC)
code 5712, Tiny House DIY Kits Stores, are shown for comparison.
The following is an explanation of the plans divergence with industry ratio profile.
Sales Growth - will start below the industry average but will be closer to the average after the third year of operation.
Accounts Receivable - is slightly below average due to the low use of credit for purchases (25%).
Inventory - is below the industry average because 20% of the Tiny House DIY Kits will be built to order.
Long Term Assets, Long Term Liabilities, and Expense of Sales - are higher because The Tiny House Leader builds Tiny House DIY Kits
on site.
Ratio Analysis
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Other Current Assets 0.00% 0.00% 0.00% 21.70%
Percent of Sales
Main Ratios
22
Quick 1.49 2.49 3.09 0.76
Activity Ratios
Debt Ratios
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Current Liab. to Liab. 0.40 0.36 0.43 n.a
Liquidity Ratios
Additional Ratios
Appendix
Sales Forecast
Month Month Month Month Month Month Month Month Month Month Month
Month 7
1 2 3 4 5 6 8 9 10 11 12
Sales
Tiny
House 0 $50,00 $60,00 $70,00 $75,00 $85,00 $90,00 $100,00 $85,00 $90,00 $85,00 $79,00 $95,00
DIY % 0 0 0 0 0 0 0 0 0 0 0 0
Kits
0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
%
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Total
$50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Sales
Direct
Month Month Month Month Month Month Month Month Month Month Month
Cost of Month 7
1 2 3 4 5 6 8 9 10 11 12
Sales
Tiny
House $20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
DIY Kits
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtota
l Direct
$20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Cost of
Sales
We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.
Personnel Plan
Month Month Month Month Month Month Month Month Month Month Month
Month 12
1 2 3 4 5 6 7 8 9 10 11
0
Manager $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
%
0
Assistant Manager $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
%
Office 0
$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Manager/Bookkeeper %
0
Checkers $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700
%
0
Production Staff $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
%
0
Stockers $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300
%
Total People 9 9 9 9 9 9 9 9 9 9 9 9
Total Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
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General Assumptions
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current
Interest 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Long-term
Interest 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sales $50,000 $60,000 $70,000 $75,000 $85,000 $90,000 $100,000 $85,000 $90,000 $85,000 $79,000 $95,000
Direct Cost
$20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
of Sales
Other
Production $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Total Cost of
$20,000 $22,000 $31,000 $34,000 $40,000 $42,000 $45,000 $38,000 $41,000 $37,000 $35,000 $47,000
Sales
Gross
$30,000 $38,000 $39,000 $41,000 $45,000 $48,000 $55,000 $47,000 $49,000 $48,000 $44,000 $48,000
Margin
Gross
60.00% 63.33% 55.71% 54.67% 52.94% 53.33% 55.00% 55.29% 54.44% 56.47% 55.70% 50.53%
Margin %
Expenses
Payroll $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
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Sales and
Marketing
$5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
and Other
Expenses
Depreciation $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952 $952
Leased
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment
Utilities $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
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
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Taxes 15% $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total
Operating $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502 $38,502
Expenses
Profit Before
Interest and ($8,502) ($502) $498 $2,498 $6,498 $9,498 $16,498 $8,498 $10,498 $9,498 $5,498 $9,498
Taxes
EBITDA ($7,550) $450 $1,450 $3,450 $7,450 $10,450 $17,450 $9,450 $11,450 $10,450 $6,450 $10,450
Interest
$1,069 $1,056 $1,042 $1,028 $1,014 $1,000 $986 $972 $958 $945 $931 $917
Expense
Taxes
($2,871) ($467) ($163) $441 $1,645 $2,549 $4,654 $2,258 $2,862 $2,566 $1,370 $2,574
Incurred
Net Profit ($6,700) ($1,090) ($381) $1,029 $3,839 $5,949 $10,858 $5,268 $6,678 $5,987 $3,197 $6,007
Net
-13.40% -1.82% -0.54% 1.37% 4.52% 6.61% 10.86% 6.20% 7.42% 7.04% 4.05% 6.32%
Profit/Sales
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
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Cash
Received
Cash from
Operations
Cash Sales $37,500 $45,000 $52,500 $56,250 $63,750 $67,500 $75,000 $63,750 $67,500 $63,750 $59,250 $71,250
Cash from
$0 $417 $12,583 $15,083 $17,542 $18,833 $21,292 $22,583 $24,875 $21,292 $22,458 $21,200
Receivables
Subtotal
Cash from $37,500 $45,417 $65,083 $71,333 $81,292 $86,333 $96,292 $86,333 $92,375 $85,042 $81,708 $92,450
Operations
Additional
Cash
Received
Sales Tax,
VAT,
0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST
Received
New
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
New Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-
free)
New Long-
term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets
Sales of
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New
Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
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Subtotal Cash
$37,500 $45,417 $65,083 $71,333 $81,292 $86,333 $96,292 $86,333 $92,375 $85,042 $81,708 $92,450
Received
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures
from
Operations
Cash
$25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Spending
Bill Payments $358 $11,368 $30,171 $54,228 $51,669 $61,759 $60,506 $65,809 $46,566 $60,270 $48,627 $48,604
Subtotal
Spent on $25,358 $36,368 $55,171 $79,228 $76,669 $86,759 $85,506 $90,809 $71,566 $85,270 $73,627 $73,604
Operations
Additional
Cash Spent
Sales Tax,
VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal
Repayment of
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Borrowing
Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment
Long-term
Liabilities
$1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666 $1,666
Principal
Repayment
Purchase
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash
$27,024 $38,034 $56,837 $80,894 $78,335 $88,425 $87,172 $92,475 $73,232 $86,936 $75,293 $75,270
Spent
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Net Cash
$10,476 $7,383 $8,246 ($9,561) $2,957 ($2,091) $9,120 ($6,142) $19,143 ($1,894) $6,415 $17,180
Flow
Cash Balance $16,276 $23,659 $31,905 $22,344 $25,301 $23,209 $32,329 $26,187 $45,330 $43,436 $49,851 $67,031
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Starting
Assets
Balances
Current
Assets
$16,27 $23,65 $31,90 $22,34 $25,30 $23,20 $32,32 $26,18 $45,33 $43,43 $49,85 $67,03
Cash $5,800
6 9 5 4 1 9 9 7 0 6 1 1
Accounts $12,50 $27,08 $32,00 $35,66 $39,37 $43,04 $46,75 $45,41 $43,04 $43,00 $40,29 $42,84
$0
Receivable 0 3 0 7 5 2 0 7 2 0 2 2
$50,00 $30,00 $24,20 $34,10 $37,40 $44,00 $46,20 $49,50 $41,80 $45,10 $40,70 $38,50 $51,70
Inventory
0 0 0 0 0 0 0 0 0 0 0 0 0
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total
Current $55,800 $58,776 $74,942 $98,005 $95,410 $108,676 $112,451 $128,579 $113,404 $133,472 $127,136 $128,643 $161,573
Assets
Long-term
Assets
Long-term $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00 $60,00
Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Accumulate
$10,47 $11,42
d $0 $952 $1,904 $2,856 $3,808 $4,760 $5,712 $6,664 $7,616 $8,568 $9,520
2 4
Depreciation
Total Long- $60,00 $59,04 $58,09 $57,14 $56,19 $55,24 $54,28 $53,33 $52,38 $51,43 $50,48 $49,52 $48,57
term Assets 0 8 6 4 2 0 8 6 4 2 0 8 6
Total Assets $115,800 $117,824 $133,038 $155,149 $151,602 $163,916 $166,739 $181,915 $165,788 $184,904 $177,616 $178,171 $210,149
Liabilities Month Month Month Month Month Month Month Month Month Month Month Month
and Capital 1 2 3 4 5 6 7 8 9 10 11 12
30
Current
Liabilities
Accounts $10,39 $28,36 $52,51 $49,60 $59,74 $58,28 $64,27 $44,54 $58,64 $47,03 $46,06 $73,70
$0
Payable 0 0 8 8 9 9 3 4 8 9 2 0
Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal
$10,39 $28,36 $52,51 $49,60 $59,74 $58,28 $64,27 $44,54 $58,64 $47,03 $46,06 $73,70
Current $0
0 0 8 8 9 9 3 4 8 9 2 0
Liabilities
Long-term
$130,000 $128,334 $126,668 $125,002 $123,336 $121,670 $120,004 $118,338 $116,672 $115,006 $113,340 $111,674 $110,008
Liabilities
Total
$130,000 $138,724 $155,028 $177,520 $172,944 $181,419 $178,293 $182,611 $161,216 $173,654 $160,379 $157,736 $183,708
Liabilities
Paid-in
$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Capital
Retained
($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200) ($64,200)
Earnings
Earnings $0 ($6,700) ($7,790) ($8,171) ($7,142) ($3,303) $2,646 $13,504 $18,772 $25,450 $31,437 $34,634 $40,641
Total Capital ($14,200) ($20,900) ($21,990) ($22,371) ($21,342) ($17,503) ($11,554) ($696) $4,572 $11,250 $17,237 $20,434 $26,441
Total
Liabilities $115,800 $117,824 $133,038 $155,149 $151,602 $163,916 $166,739 $181,915 $165,788 $184,904 $177,616 $178,171 $210,149
and Capital
Net Worth ($14,200) ($20,900) ($21,990) ($22,371) ($21,342) ($17,503) ($11,554) ($696) $4,572 $11,250 $17,237 $20,434 $26,441
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