Dollar Store



BUSINESS PLAN     DOLLAR DAZE


3535 Lincoln Plaza Drive
Dayton, Ohio 45402


Dollar Daze is a business specializing in general merchandise. The store has access to the purchasing power of buying centers offering merchandise at prices 10 to 30 percent below wholesale with immediate delivery and low to no minimum orders. These centers are well stocked and prepared to meet the increased demands of the peak selling seasons. Our mission is to provide the Dayton area with a wide variety of quality general merchandise generally priced at one dollar, in a clean and friendly atmosphere.


EXECUTIVE SUMMARY

Dollar Daze is a business specializing in general merchandise. It will be located in the brand-new Town Square Plaza, which is in a high traffic area. The space will be next to Nicky's, a café and bakery. The space is easily accessible and provides ample parking for its customers. The space is visible from all points within the center itself as well as the traffic from Martin and Washington Streets. The business is a retail establishment selling current dollar variety merchandise at retail. The majority of the merchandise is priced within a one-dollar price range, thus attracting the widest possible range of customers.

Dollar Daze has access to the purchasing power of buying centers offering merchandise at prices 10 to 30 percent below wholesale with immediate delivery and low to no minimum orders. These centers are well stocked and prepared to meet the increased demands of the peak selling seasons such as Seasonal Changes, Back-to-School, Holiday Needs, etc. Since delivery from these centers to the business takes only five to ten days, Dollar Daze is assured of a well-stocked store regardless of seasonal demands. Also, since these buying centers are able to deliver in such a short time, there is not a necessity to carry an extremely large inventory in advance of peak selling periods.

Dollar Daze attracts its customers through the use of specialized advertisements, handbills, news releases in newspapers, as well as the traffic flow of which the area itself generates.

A Grand Opening will commence after Dollar Daze has been in business for six to eight weeks. This event will be held on a Saturday. Dollar Daze's owner Melinda Parker will coordinate the Grand Opening. It will include a local political official, ribbon-cutting ceremonies, pictures, speaking, etc. Professional news releases will be submitted to the local and market area newspapers, and possibly radio and television.

The storeowner of Dollar Daze has access to over 250 of the best buying centers in the country. The buying centers provide inventory and fixtures. Melinda Parker will take a buying trip for initial inventory with her close friend and professional buyer Jill Smythson. All staff will be provided with in-store training.

According to the information contained in this business plan, we feel that Dollar Daze is a sound business investment for the financial institution to consider for a loan in the amount of $35,000.

Key to Success

The key to our successful retail business is our flexibility. The buying habits of customers change and vary. The availability of equally varied merchandise gives us the freedom to change with our customers.

Mission

Our mission is to provide the Dayton area with a wide variety of quality general merchandise generally priced at one dollar, in a clean and friendly atmosphere.

COMPANY SUMMARY

Dollar Daze will rent a 1,300-square-foot space, having 1,000 square feet of selling space from Noel Sparks. Located in the brand-new Town Square Plaza, it is a high traffic area. The space will be next to Nicky's, a café and bakery. The space is easily accessible and provides ample parking for its customers. The space is visible from all points within the center itself as well as the traffic from Martin and Washington Streets.

Proposed hours of operation are from 9:00 A.M. to 7:00 P.M., Monday through Saturday and 12:00 P.M. to 6:00 P.M. on Sunday. Dollar Daze will also maintain extended holiday hours. The business will be closed Christmas Day as well as three other national holidays yet to be decided.

Since the selected location is in the heart of one of the busiest retail corridors in the area, we feel that this space is the best possible location in Dayton and surrounding areas.

Company Ownership

Dollar Daze is a sole-proprietorship and is registered to the owner, Melinda Parker.

Start-up Summary

Start-up costs will be financed through a combination of owner investment and a short-term loan. The start-up chart shows the distribution of financing.

Those expenses include:

Dollar Store

Start-up Plan
Start-up Expenses
Deposit on Location $2,500
Rent (2 months) $2,000
Build-out of location (including sign) $3,000
Telephone Deposits/2 months' payments $750
Credit Card Machine $150
License and Permits $100
Insurance (6 months) $300
Advertising (2 months) $600
Miscellaneous $200
Total Start-up Expense $9,600
Start-up Assets Needed
Cash Requirements $6,000
Start-up Inventory $24,400
Other Short-term Assets $0
Total Short-term Assets $30,400
Long-term Assets $0
Total Assets $30,400
Total Start-up Requirements: $40,000
Left to Finance: $0
Start-up Funding Plan
Investment
Melinda Parker $5,000
Investor 2 $0
Other $0
Total Investment $5,000

Dollar Store

Short-term Liabilities
Unpaid Expenses $0
Short-term Loans $35,000
Interest-free Short-term Loans $0
Subtotal Short-term Liabilities $35,000
Long-term Liabilities $0
Total Liabilities $35,000
Loss at Start-up ($9,600)
Total Capital ($4,600)
Total Capital and Liabilities $30,400
Checkline $0

Equipment and Supplies

Listed below is our equipment and supplies list:

Inventory at cost
Gondolas
Shelving
Pegboard & Slatwall
Pegboard & Slatwall Hooks
Cash Register (Multi-Department)
2 Rolls Register Tape
2,000 Plastic Bags
12 Shopping Baskets
1 2-Line Labeler
6 Rolls for Labeler
Tissue Paper
Weekly Bookkeeping & Record System
Inventory Control System
Supplier/Order System
Advertising Manual
Training Manual
Promotional Idea Manual
Custom Designed Handbills
Customer Register Cards
Pre-opening Guide
Store Merchandise Guide
Store Manual
Buyers Guide
Newsletter Service

PRODUCTS

Our product line will include items from the following categories:

We will always have an abundant selection of items available from which to choose.

MARKET ANALYSIS SUMMARY

The Dayton market faces the economic challenges of poverty, single parenthood, and public assistance, plus the generational squeeze of caring for the young and elderly at the same time. The majority of their budget goes to basics, such as rent and groceries. They are top-ranked for buying major household appliances and baby products and they tend to purchase fast food and takeout food.

General Statistics for 1999 in the 45402 zip code area are as follows:

Total Population - 39,889

Number of Households - 14,344

Population by Race

White - 11.8% Black - 86.5% Asian Pacific Islander - 0.1% Other - 1.6%

Population by Gender

Male - 46.2% Female - 53.8%

Income Figures

Median Household Income - $21,729

Household Income Under $50K - 75.3% Household Income $50K-$100K - 20.8% Household Income Over $100K - 4.0%

1990 Housing Figures

Average Home Value - $38,152 Average Rent - $272

Market Segmentation

Dollar Daze will provide high quality merchandise at a discount price range to its customers. Since the majority of its items offered will be in the one-dollar price range, Dollar Daze will be able to maintain its competitiveness.

The target female market is in a growing community that has a population in excess of 39,889 people, well over 14,344 households, of which approximately 53.8 percent are female. The median family income for Dayton is $21,729.

Target Market Segment Strategy

The approaches to be used to attract these customers will be a website, radio and print advertising, signs in the store windows, and word of mouth advertising from our satisfied customers.

Industry Analysis

In 1999, retail sales grew 9 percent to almost $3 trillion dollars. General merchandise and apparel grew to $784.5 billion, a 7.6 percent rise over 1998. According to the Department of Commerce, Internet shopping reached $5.3 billion or .64 percent of U.S. retail sales in 1999. The growth of traditional U.S. retailing should not be robust due to a dearth of economically favorable store locations. Many companies have responded by using their capital for other purposes such as reducing long-term debt and repurchasing their common stock.

Some companies can continue to grow their store count where they have a very specific demographic group to serve and locations can be developed in sparse locations at minimal costs. General Washington and Family Cents Savings for instance, continue to expand their store counts. Keys to their success are convenient locations, relatively small stores, and the ability to provide most nonfood merchandise to their lower-income customer bases.

The retailing industry is mature and slow growing. These factors mean companies will have to do a better job of managing their operations. Specifically, retailers must close unprofitable stores, locate in regions with faster growth, and manage their inventory better. Retailers must also invest in automated processes to keep their costs down. Some companies have taken steps to reduce their exposure to economic cycles and consumer trends.

Traditional retailers may have finally recognized the potential of Internet commerce and its impact on their business. Initially, retailers had just a website that was more for informational purposes than e-commerce transactional purposes. However, beginning in the year 2000, several retailers will devote more time to developing full blown e-commerce sites. Most notably, Target Stores plans to launch a major e-commerce program in the year 2000. Savings Marts' purchase of Billings in March 1999 is significant. It allows Savings Marts to use Billings's expertise and technology in direct marketing to further promote and enhance Savings Marts's Yonkers.com Internet site. Picway also launched a comprehensive Internet site focused on their shoe retailing concept.

Industry Trends

Consumers are more value conscious than they've been in the past. Their shopping habits have shifted from department stores to discounters and mass merchandisers. Many consumers can find the same items at a mass merchandiser that they can find at a department store at a substantially lower price.

Competition and Buying Patterns

There is currently no other store of this kind in the area, which ensures its success!

Dollar Daze will offer a wide selection of general merchandise priced at only one dollar. Having over 25,000 different items to choose from for its inventory selection insures that Dollar Daze will be able to maintain a full and diverse inventory for its customers. It will have suppliers that can deliver these items within 5-10 working days, so the shelves and walls will remain full and well-stocked.

The Christmas season has traditionally been important to retailers but there has been lackluster growth in the past few years despite the booming economy. Part of the problem is shifting demographics. Older people tend to buy fewer items as they age. Since the baby boom generation is approaching their fifties, they will have less need for more items. So the target market of these stores lean towards men and women ages 18-49.

Some retailers have responded by offering theme promotions during other parts of the year, such as Valentine's Day, Independence Day, and Easter. Retailers are also requiring their suppliers to develop unique and exclusive merchandise and product assortments for their stores to avoid competition with another store for the same product.

Consumers are much more value-oriented which has contributed to the growth of mass merchandise stores. Another indication is the growth of the wholesale club and dollar store concept over the past two decades. These stores allow consumers to buy products in bulk and get more products for their money. These stores mostly carry fast-moving merchandise brands which are number one or two in their respective product categories.

The Dayton area continues to expand, offering the retail establishments an ever-growing opportunity for success.

STRATEGY & IMPLEMENTATION SUMMARY

Melinda Parker has chosen three strategies for implementation of Dollar Daze and they are:

  1. to build sales volume
  2. to create a customer database
  3. to develop an effective product line and pricing strategy

During the first few years, the store's sales, she hopes, will grow through the use of promotional campaigns, magazine advertisements, and website sales. Trisha will develop the customer database through careful selection and screening of mailing lists. She plans to select an inventory she feels is affordable and unique when compared to the other dollar store products. For her pricing strategy, she will establish an ongoing campaign to purchase products at pennies less than her competitors, whereas sometimes she can sell items at $.99 instead of $1.00.

Competitive Edge

Dollar Daze will be locally owned and operated, insuring that the needs and desires of the local community are met. It will also be able to provide special ordering of items for its customers and offer a personal and friendly atmosphere that you cannot find in larger chain variety stores.

Sales Strategy

Our sales strategy is to:

Sales Forecast

Revenues of stores of this nature, using the available demographics, average between $176 to $177 in sales per square foot of selling space during their first year of business. This business projected its first year at 90 percent of low average.

Each year reflects an increase of 5 percent per year in fixed expenses to more than keep up with the current consumer price index (CPI).

Year 2 reflects a conservative growth rate of 15 percent. Year 3 reflects a growth rate of 10 percent. The information in the chart below is based on a 1,300-square-foot unit with 1,000 square feet of actual selling space.

Dollar Store

Sales FY2002 FY2003 FY2004
Row 1 $158,400 $182,160 $200,376
Other $0 $0 $0
Total Sales $158,400 $182,160 $200,376
Direct Cost of Sales
Row 1 $91,080 $104,742 $115,216
Other $0 $0 $0
Subtotal Cost of Sales $91,080 $104,742 $115,216

MANAGEMENT SUMMARY

Melinda Parker, owner of Dollar Daze, has a B.A. degree in Marketing. For two years she has managed a dollar store similar to Dollar Daze. She has a full understanding of how to operate and manage a dollar store and its employees.

Personnel Plan

The personnel plan is included in the following table. It shows the owner's salary (Other) and two full-time salaries for cashiers. There will be no benefits offered at this time. Cashiers will have other duties as assigned.

Dollar Store

Personnel Plan FY2002 FY2003 FY2004
Cashier (1) $6,000 $6,000 $6,000
Cashier (2) $6,000 $6,000 $6,000
Other $18,000 $18,000 $18,000
Total Payroll $30,000 $30,000 $30,000
Total Headcount 3 3 3
Payroll Burden $4,500 $4,500 $4,500
Total Payroll Expenditures $34,500 $34,500 $34,500

FINANCIAL PLAN

Our financial plan includes:

Important Assumptions

We do not sell anything on credit. The personnel burden is low because benefits are not paid to our staff. We will continue to work on a short-term interest rate that is lower. We are also assuming the economy will continue to grow and there will continue to be a need for stores such as Dollar Daze.

Dollar Store

General Assumptions FY2002 FY2003 FY2004
Short-term Interest Rate % 10.00% 10.00% 10.00%
Long-term Interest Rate % 10.00% 10.00% 10.00%
Payment Days Estimator 30 30 30
Collection Days Estimator 45 45 45
Inventory Turnover Estimator 6.00 6.00 6.00
Tax Rate % 25.00% 25.00% 25.00%
Expenses in Cash % 10.00% 10.00% 10.00%
Sales on Credit % 0.00% 0.00% 0.00%
Personnel Burden % 15.00% 15.00% 15.00%

Break-even Analysis

A break-even analysis label has been completed on the basis of average costs/prices. With fixed costs averaging $5,979 and $176 to $177 in sales per square foot, we need $7,972 in sales per month to break-even.

Dollar Store

Break-even Analysis:
Monthly Units Break-even 7,972
Monthly Sales Break-even $7,972

Dollar Store

Assumptions:
Average Per-Unit Revenue $1.00
Average Per-Unit Variable Cost $0.25
Estimated Monthly Fixed Cost $5,979

Projected Profit and Loss

We predict advertising costs will go down in the next three years as word of our store gets out to the public. Our net profit/sales ratio will be low the first year. We expect this ratio to rise at least 12 percent the second year and at least 3 percent in our third year. Normally, a startup concern will operate with negative profits through the first two years. We will avoid that kind of operating loss on our second year by knowing our competitors and having a full understanding of our target markets.

Dollar Store

Profit and Loss (Income Statement) FY2002 FY2003 FY2004
Sales $158,400 $182,160 $200,376
Direct Cost of Sales $91,080 $104,742 $115,216
Production Payroll $0 $0 $0
Other $6,000 $0 $0
Total Cost of Sales $97,080 $104,742 $115,216
Gross Margin $61,320 $77,418 $85,160
Gross Margin % 38.71% 42.50% 42.50%
Operating Expenses:
Sales and Marketing Expenses
Sales and Marketing Payroll $0 $0 $0
Rent $10,000 $12,000 $12,000
Repairs and Maintenance $550 $600 $600
Insurance $300 $600 $600
Professional Fees $600 $600 $600
Interest and Bank Charges $300 $300 $300
Advertising $3,000 $2,000 $1,000
Telephone $750 $900 $900
Utilities $3,000 $3,000 $3,000
Operating Supplies $1,200 $1,200 $1,200
Loan Payment $6,391 $6,972 $6,972
Capital Purchases $2,000 $2,000 $2,000
Travel $0 $0 $0
Miscellaneous $14,400 $1,200 $1,200
Total Sales and Marketing Expenses $0 $0 $0
Sales and Marketing % 0.00% 0.00% 0.00%

Dollar Store

General and Administrative Expenses FY2002 FY2003 FY2004
General and Administrative Payroll $0 $0 $0
Payroll Expense $30,000 $30,000 $30,000
Payroll Burden $4,500 $4,500 $4,500
Depreciation $0 $0 $0
Other $0 $0 $0
Total General and Administrative Expenses $0 $0 $0
General and Administrative % 0.00% 0.00% 0.00%
Other Expenses
Other Payroll $0 $0 $0
Other $0 $0 $0
Total Other Expenses $0 $0 $0
Other % 0.00% 0.00% 0.00%
Total Operating Expenses $76,991 $65,872 $64,872
Profit Before Interest and Taxes ($15,671) $11,546 $20,288
Interest Expense Short-term $3,500 $3,500 $3,500
Interest Expense Long-term $0 $0 $0
Taxes Incurred ($4,793) $2,012 $4,197
Extraordinary Items $0 $0 $0
Net Profit ($14,378) $6,035 $12,591
Net Profit/Sales -9.08% 3.31% 6.28%

Projected Cash Flow

We are positioning ourselves in the market as a medium risk concern with steady cash flows.

Dollar Store

FY2002 FY2003 FY2004
Net Profit ($14,378) $6,035 $12,591
Plus:
Depreciation $0 $0 $0
Change in Accounts Payable $2,992 $8,210 $318
Current Borrowing (repayment) $0 $0 $0
Increase (decrease) Other Liabilities $0 $0 $0
Long-term Borrowing (repayment) $0 $0 $0
Capital Input $0 $0 $0
Subtotal ($11,387) $14,244 $12,909
Less:
Change in Accounts Receivable $0 $0 $0
Change in Inventory ($9,825) $1,150 $1,573
Change in Other Short-term Assets $0 $0 $0
Capital Expenditure $0 $0 $0
Dividends $0 $0 $0
Subtotal ($9,825) $1,150 $1,573
Net Cash Flow ($1,562) $13,094 $11,337
Cash Balance $4,438 $17,532 $28,869

Projected Balance Sheet

All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based on past performance but rather on economic cycle activity, regional industry strength, and future cash flow possibilities. We expect a solid growth in net worth by the year 2005.

Dollar Store

Assets FY2002 FY2003 FY2004
Short-term Assets
Cash $4,438 $17,532 $28,869
Accounts Receivable $0 $0 $0
Inventory $14,575 $15,725 $17,298
Other Short-term Assets $0 $0 $0
Total Short-term Assets $19,013 $33,258 $46,167
Long-term Assets
Capital Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $19,013 $33,258 $46,167
Liabilities and Capital
Accounts Payable $2,992 $11,201 $11,520
Short-term Notes $35,000 $35,000 $35,000
Other Short-term Liabilities $0 $0 $0
Subtotal Short-term Liabilities $37,992 $46,201 $46,520
Long-term Liabilities $0 $0 $0
Total Liabilities $37,992 $46,201 $46,520
Paid in Capital $5,000 $5,000 $5,000
Retained Earnings ($9,600) ($23,978) ($17,944)
Earnings ($14,378) $6,035 $12,591
Total Capital ($18,978) ($12,944) ($353)
Total Liabilities and Capital $19,013 $33,258 $46,167
Net Worth ($18,978) ($12,944) ($353)

APPENDIX

Sales Forecast

Dollar Store

Sales Mar Apr May Jun Jul Aug Sep
Row 1 $12,672 $14,256 $11,880 $11,088 $11,088 $9,500 $14,256
Other $0 $0 $0 $0 $0 $0 $0
Total Sales $12,672 $14,256 $11,880 $11,088 $11,088 $9,500 $14,256
Direct Cost of Sales
Row 1 $7,286 $8,197 $6,831 $6,376 $6,376 $5,463 $8,197
Other $0 $0 $0 $0 $0 $0 $0
Subtotal Cost of Sales $7,286 $8,197 $6,831 $6,376 $6,376 $5,463 $8,197

Personnel Plan

Dollar Store

Personnel Mar Apr May Jun Jul Aug Sep
Cashier (1) $500 $500 $500 $500 $500 $500 $500
Cashier (2) $500 $500 $500 $500 $500 $500 $500
Other $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Total Payroll $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Total Headcount 3 3 3 3 3 3 3
Payroll Burden $375 $375 $375 $375 $375 $375 $375
Total Payroll
Expenditures $2,875 $2,875 $2,875 $2,875 $2,875 $2,875 $2,875

General Assumptions

Dollar Store

Mar Apr May Jun Jul Aug Sep
Short-term Interest Rate % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Payment Days Estimator 30 30 30 30 30 30 30
Collection Days Estimator 45 45 45 45 45 45 45
Inventory Turnover Estimator 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Tax Rate % 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Expenses in Cash % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Sales on Credit % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Personnel Burden % 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Dollar Store

Oct Nov Dec Jan Feb FY2002 FY2003 FY2004
$14,256 $15,840 $22,972 $9,504 $11,088 $158,400 $182,160 $200,376
$0 $0 $0 $0 $0 $0 $0 $0
$14,256 $15,840 $22,972 $9,504 $11,088 $158,400 $182,160 $200,376
$8,197 $9,108 $13,208 $5,465 $6,376 $91,080 $104,742 $115,216
$0 $0 $0 $0 $0 $0 $0 $0
$8,197 $9,108 $13,208 $5,465 $6,376 $91,080 $104,742 $115,216

Dollar Store

Oct Nov Dec Jan Feb FY2002 FY2003 FY2004
$500 $500 $500 $500 $500 $6,000 $6,000 $6,000
$500 $500 $500 $500 $500 $6,000 $6,000 $6,000
$1,500 $1,500 $1,500 $1,500 $1,500 $18,000 $18,000 $18,000
$2,500 $2,500 $2,500 $2,500 $2,500 $30,000 $30,000 $30,000
3 3 3 3 3 3 3 3
$375 $375 $375 $375 $375 $4,500 $4,500 $4,500
$2,875 $2,875 $2,875 $2,875 $2,875 $34,500 $34,500 $34,500

Dollar Store

Oct Nov Dec Jan Feb FY2002 FY2003 FY2004
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
30 30 30 30 30 30 30 30
45 45 45 45 45 45 45 45
6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Profit and Loss (Income Statement)

Dollar Store

Mar Apr May Jun Jul Aug
Sales $12,672 $14,256 $11,880 $11,088 $11,088 $9,500
Direct Cost of Sales $7,286 $8,197 $6,831 $6,376 $6,376 $5,463
Production Payroll $0 $0 $0 $0 $0 $0
Other $6,000 $0 $0 $0 $0 $0
Total Cost of Sales $13,286 $8,197 $6,831 $6,376 $6,376 $5,463
Gross Margin ($614) $6,059 $5,049 $4,712 $4,712 $4,037
Gross Margin % -4.85% 42.50% 42.50% 42.50% 42.50% 42.49%
Operating expenses:
Sales and Marketing Expenses
Sales and Marketing Payroll $0 $0 $0 $0 $0 $0
Rent $0 $0 $1,000 $1,000 $1,000 $1,000
Repairs and Maintenance $0 $50 $50 $50 $50 $50
Insurance $0 $0 $0 $0 $0 $0
Professional Fees $50 $50 $50 $50 $50 $50
Interest and Bank Charges $25 $25 $25 $25 $25 $25
Advertising $0 $0 $300 $300 $300 $300
Telephone $0 $0 $75 $75 $75 $75
Utilities $250 $250 $250 $250 $250 $250
Operating Supplies $100 $100 $100 $100 $100 $100
Loan Payment $0 $581 $581 $581 $581 $581
Capital Purchases $0 $0 $0 $0 $0 $0
Travel $0 $0 $0 $0 $0 $0
Miscellaneous $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Total Sales and Marketing Expenses $0 $0 $0 $0 $0 $0
Sales and Marketing % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
General and Administrative Expenses
General and Administrative Payroll $0 $0 $0 $0 $0 $0
Payroll Expense $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Payroll Burden $375 $375 $375 $375 $375 $375
Depreciation $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0
Total General and Administrative Expenses $0 $0 $0 $0 $0 $0
General and Administrative % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Expenses
Other Payroll $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0
Total Other Expenses $0 $0 $0 $0 $0 $0
Other % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Operating Expenses $4,500 $5,131 $6,506 $6,506 $6,506 $6,506
Profit Before Interest and Taxes ($5,114) $928 ($1,457) ($1,794) ($1,794) ($2,469)
Interest Expense Short-term $292 $292 $292 $292 $292 $292
Interest Expense Long-term $0 $0 $0 $0 $0 $0
Taxes Incurred ($1,351) $159 ($437) ($521) ($521) ($690)
Extraordinary Items $0 $0 $0 $0 $0 $0
Net Profit ($4,054) $477 ($1,312) ($1,564) ($1,564) ($2,071)
Net Profit/Sales -31.99% 3.35% -11.04% -14.11% -14.11% -21.79%

Dollar Store

Sep Oct Nov Dec Jan Feb FY2002 FY2003 FY2004
$14,256 $14,256 $15,840 $22,972 $9,504 $11,088 $158,400 $182,160 $200,376
$8,197 $8,197 $9,108 $13,208 $5,465 $6,376 $91,080 $104,742 $115,216
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $6,000 $0 $0
$8,197 $8,197 $9,108 $13,208 $5,465 $6,376 $97,080 $104,742 $115,216
$6,059 $6,059 $6,732 $9,764 $4,039 $4,712 $61,320 $77,418 $85,160
42.50% 42.50% 42.50% 42.50% 42.50% 42.50% 38.71% 42.50% 42.50%
$0 $0 $0 $0 $0 $0 $0 $0 $0
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $10,000 $12,000 $12,000
$50 $50 $50 $50 $50 $50 $550 $600 $600
$50 $50 $50 $50 $50 $50 $300 $600 $600
$50 $50 $50 $50 $50 $50 $600 $600 $600
$25 $25 $25 $25 $25 $25 $300 $300 $300
$300 $300 $300 $300 $300 $300 $3,000 $2,000 $1,000
$75 $75 $75 $75 $75 $75 $750 $900 $900
$250 $250 $250 $250 $250 $250 $3,000 $3,000 $3,000
$100 $100 $100 $100 $100 $100 $1,200 $1,200 $1,200
$581 $581 $581 $581 $581 $581 $6,391 $6,972 $6,972
$0 $0 $1,000 $1,000 $0 $0 $2,000 $2,000 $2,000
$0 $0 $0 $0 $0 $0 $0 $0 $0
$1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $14,400 $1,200 $1,200
$0 $0 $0 $0 $0 $0 $0 $0 $0
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$0 $0 $0 $0 $0 $0 $0 $0 $0
$2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000 $30,000 $30,000
$375 $375 $375 $375 $375 $375 $4,500 $4,500 $4,500
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$6,556 $6,556 $7,556 $7,556 $6,556 $6,556 $76,991 $65,872 $64,872
($497) ($497) ($824) $2,208 ($2,517) ($1,844) ($15,671) $11,546 $20,288
$292 $292 $292 $292 $292 $292 $3,500 $3,500 $3,500
$0 $0 $0 $0 $0 $0 $0 $0 $0
($197) ($197) ($279) $479 ($702) ($534) ($4,793) $2,012 $4,197
$0 $0 $0 $0 $0 $0 $0 $0 $0
($592) ($592) ($837) $1,437 ($2,107) ($1,602) ($14,378) $6,035 $12,591
-4.15% -4.15% -5.28% 6.26% -22.16% -14.45% -9.08% 3.31% 6.28%

Projected Cash Flow

Dollar Store

Mar Apr May Jun Jul Aug
Net Profit ($4,054) $477 ($1,312) ($1,564) ($1,564) ($2,071)
Plus:
Depreciation $0 $0 $0 $0 $0 $0
Change in Accounts Payable $5,712 $3,148 ($2,261) $1,116 $792 ($2,530)
Current Borrowing (repayment) $0 $0 $0 $0 $0 $0
Increase (decrease) Other Liabilities $0 $0 $0 $0 $0 $0
Long-term Borrowing (repayment) $0 $0 $0 $0 $0 $0
Capital Input $0 $0 $0 $0 $0 $0
Subtotal $1,658 $3,625 ($3,573) ($448) ($773) ($4,600)
Less:
Change in Accounts Receivable $0 $0 $0 $0 $0 $0
Change in Inventory ($7,286) ($720) ($2,732) ($910) $0 ($1,826)
Change in Other Short-term Assets $0 $0 $0 $0 $0 $0
Capital Expenditure $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0
Subtotal ($7,286) ($720) ($2,732) ($910) $0 ($1,826)
Net Cash Flow $8,944 $4,345 ($841) $462 ($773) ($2,774)
Cash Balance $14,944 $19,289 $18,448 $18,910 $18,137 $15,363

Projected Balance Sheet

Dollar Store

Assets
Short-term Assets Mar Apr May Jun Jul Aug
Cash $14,944 $19,289 $18,448 $18,910 $18,137 $15,363
Accounts Receivable $0 $0 $0 $0 $0 $0
Inventory $17,114 $16,394 $13,662 $12,752 $12,752 $10,926
Other Short-term Assets $0 $0 $0 $0 $0 $0
Total Short-term Assets $32,058 $35,683 $32,110 $31,662 $30,889 $26,289
Long-term Assets
Capital Assets $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0
Total Assets $32,058 $35,683 $32,110 $31,662 $30,889 $26,289
Liabilities and Capital
Accounts Payable $5,712 $8,860 $6,599 $7,715 $8,506 $5,976
Short-term Notes $35,000 $35,000 $35,000 $35,000 $35,000 $35,000
Other Short-term Liabilities $0 $0 $0 $0 $0 $0
Subtotal Short-term Liabilities $40,712 $43,860 $41,599 $42,715 $43,506 $40,976
Long-term Liabilities $0 $0 $0 $0 $0 $0
Total Liabilities $40,712 $43,860 $41,599 $42,715 $43,506 $40,976
Paid in Capital $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Retained Earnings ($9,600) ($9,600) ($9,600) ($9,600) ($9,600) ($9,600)
Earnings ($4,054) ($3,577) ($4,889) ($6,453) ($8,017) ($10,088)
Total Capital ($8,654) ($8,177) ($9,489) ($11,053) ($12,617) ($14,688)
Total Liabilities and Capital $32,058 $35,683 $32,110 $31,662 $30,889 $26,289
Net Worth ($8,654) ($8,177) ($9,489) ($11,053) ($12,617) ($14,688)

Dollar Store

Sep Oct Nov Dec Jan Feb FY2002 FY2003 FY2004
($592) ($592) ($837) $1,437 ($2,107) ($1,602) ($14,378) $6,035 $12,591
$0 $0 $0 $0 $0 $0 $0 $0 $0
$9,197 ($4,757) $3,177 $9,775 ($20,523) $146 $2,992 $8,210 $318
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$8,605 ($5,349) $2,340 $11,213 ($22,629) ($1,455) ($11,387) $14,244 $12,909
$0 $0 $0 $0 $0 $0 $0 $0 $0
$5,468 $0 $1,822 $8,200 ($5,465) ($6,376) ($9,825) $1,150 $1,573
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$5,468 $0 $1,822 $8,200 ($5,465) ($6,376) ($9,825) $1,150 $1,573
$3,137 ($5,349) $518 $3,013 ($17,164) $4,921 ($1,562) $13,094 $11,337
$18,500 $13,152 $13,669 $16,682 ($482) $4,438 $4,438 $17,532 $28,869

Dollar Store

Sep Oct Nov Dec Jan Feb FY2002 FY2003 FY2004
$18,500 $13,152 $13,669 $16,682 ($482) $4,438 $4,438 $17,532 $28,869
$0 $0 $0 $0 $0 $0 $0 $0 $0
$16,394 $16,394 $18,216 $26,416 $20,951 $14,575 $14,575 $15,725 $17,298
$0 $0 $0 $0 $0 $0 $0 $0 $0
$34,894 $29,546 $31,885 $43,098 $20,469 $19,013 $19,013 $33,258 $46,167
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0
$34,894 $29,546 $31,885 $43,098 $20,469 $19,013 $19,013 $33,258 $46,167
$15,173 $10,416 $13,593 $23,368 $2,845 $2,992 $2,992 $11,201 $11,520
$35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000
$0 $0 $0 $0 $0 $0 $0 $0 $0
$50,173 $45,416 $48,593 $58,368 $37,845 $37,992 $37,992 $46,201 $46,520


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User Contributions:

1
francis david
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Jun 25, 2011 @ 6:06 am
Pl tell me for 1000sqft dollarstore what is ave monthly sales and monthly profit
2
Dee
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Oct 18, 2012 @ 12:12 pm
I have looked at this business plan for months and wondering why the starting inventory and cogs plus purchases doesn't match what this company says their starting and ending inventory is for each month. Ex: in April their starting inventory was 17114 cogs was 8197 and purchased 3148 if I take 17114 subtracted cogs of 8197 for April that equals 8917 in inventory and then add the purchase of 3148 which then equals a new starting inventory of 12065 but this says the new ending inventory should be 16394? Wondering what I am doing wrong here? I am trying to figure it out so I can do my numbers because I am learning and was using this as my sample and testing to make sure I knew how to do it and understand it all.
3
Dee
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Oct 19, 2012 @ 7:19 pm
In previous lesson it states business should always state what method they are using either FIFO or LIFO This business plan doesn't state what inventory method they used anywhere in their plan. I am not so sure this is a great business plan to use as a reference if one is starting out and wanting accurate numbers and information

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