Transcript
Refurbish, Inc.
Sample On-line Plans
Executive Summary _____________________________________________________ 3 Company Analysis ______________________________________________________ 4
Name _____________________________________________________________________ 4 Company History/Current Situation ___________________________________________ 4 Goals______________________________________________________________________ 4 Company Location and facilities _______________________________________________ 4 Legal Form of Ownership/Profile of the Management Team________________________ 4 Insurance __________________________________________________________________ 5
Market Analysis ________________________________________________________ 6
Product____________________________________________________________________ 6 Price ______________________________________________________________________ 6 Distribution ________________________________________________________________ 6 Promotion/Advertising _______________________________________________________ 6 Industry History/Trends _____________________________________________________ 6 Target Market and Customer Base_____________________________________________ 7 Barriers to Entry____________________________________________________________ 7 Growth Opportunities _______________________________________________________ 7 Trade Agreements __________________________________________________________ 7 Exit Strategy _______________________________________________________________ 7 Company Revenues (projected)________________________________________________ 8
Financial Analysis _____________________________________________________ 13
Start-up Cost Estimates _____________________________________________________ 13 Income Statement __________________________________________________________ 13 Balance Sheet _____________________________________________________________ 13 Personal Financial Statements________________________________________________ 13 Company & Legal Documents________________________________________________ 13
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Refurbish, Inc.
Sample On-line Plans
Company Analysis
Name
The company's name is Refurbish, Incorporated which is descriptive in what the company does. It is specifically inconspicuous due to financial institution requests.
Company History/Current Situation
Refurbish originally started in 1996 when the principals Gadda Mooga and Edgar Pekin met. Each individual owned a house, so they decided to rent one as rental income and as a tax deduction. The home has been consistently rented since 1996 and the owners have learned a great deal about working with tenants, maintenance, etc. Over the years, the owners decided they enjoyed being a landlord and working with tenants, so they have decided to take the business to the next level. In early 2001, Refurbish incorporated and is an S-Corporation in the buying and selling of real estate. Refurbish will buy homes and commercial buildings in need of repair below market value, and refurbish them to market conditions and sell. Refurbish is currently in the process of arranging financing through a local lending institution and has obtained credit from MasterCard and American Express. The money will be used to purchase homes and buildings that are 'good buys'. Refurbish estimates that two or three monthly mortgage payments will be made in the time a contractor is hired, materials purchased, and job completed. The money will be used to pay the monthly mortgage, fund materials, pay contractors, and for general cash flow. Refurbish's goal is to buy and sell homes and single dwellings up to 6-plexes. Refurbish will be concentrating on two types of properties, those that can be fixed and sold, and those that are attractive for rentals. Refurbish is particularly interested in buildings that are structurally sound, however need substantial work to make them habitable. These buildings can usually be found at low prices, and with modest expenditures, can be rehabilitated into nice, sturdy, homes. Refurbish estimates buying two buildings in calendar year 2001. This will depend on the properties that are available. To mitigate Refurbish's risk, initially they plan on pursuing homes that require less work and lower profits. This will allow them to further enhance their skills and experience.
Goals
• • Within three years, Refurbish will have bought and rehabilitated six properties. Annual net income of $14,000 - $21,000. Within five years, Refurbish will have experience with 10 properties and retain four as rental properties. Annual net income of $26,000 - $36,000 ($21,000-$38,000 for selling homes and $5,000 $8,000 for rental income)
Company Location and facilities
Refurbish is being operated out of the owners' home. They have established a home office where they manage the paperwork and daily operations. The office is complete with computer, phone, printer, and desk.
Legal Form of Ownership/Profile of the Management Team
Refurbish, Inc. has been organized as an S-Corporation with Gadda Mooga and Edgar Pekin splitting ownership 50/50. Edgar Pekin will be President and Gadda Mooga will be Secretary and Treasurer. Gadda Mooga will be primarily responsible for the finances. The S-Corporation was chose in order to protect the owners from liability. Refurbish's advisor is attorney Jeff Minor. copyright 2001 SmallBusinessPoint.com, Inc 4
Refurbish, Inc.
Sample On-line Plans
Company Revenues (projected)
2001 Property Sales Sale of Property Property Revenue Rental Property Monthly Rent Rental Revenue Total Revenue 1 60,000 60,000 1 800 9,600 2002 2 60,000 120,000 2 800 19,200 2003 2 60,000 120,000 3 800 28,800 2004 2 60,000 120,000 4 800 38,400 2005 2 60,000 120,000 5 800 48,000
$ 69,600 $ 139,200 $ 148,800 $ 158,400 $ 168,000
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Refurbish, Inc.
Sample On-line Plans
Financial Analysis
Start-up Cost Estimates
Appendix B
Income Statement
Appendix D, 12-months ending December 31, 2001 - 2005
Balance Sheet
Appendix E, 12-months ending December 31, 2001 - 2005
Personal Financial Statements
Appendix F
Company & Legal Documents
Appendix G
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Appendix E
Refurbish, Inc. Balance Sheet For the 12-Months Ending December 31st
Cash in Bank Line of Credit(LOC) Office Supplies/Equipment Rental Deposits Total Current Assets Real Estate Total Long-term Assets Total Assets Accounts Payable(Contractors) Notes Payable(LOC) Income Taxes Payable Current Portion of Long-term Debt Total Current Liabilities Mortgage Payable Total Long-term Liabilities Total Liabilities
$
2001 5,000 70,000 1,000 400 76,400 80,000
$
2002 12,724 35,000 1,000 800 49,524 160,000
$
2003 12,717 35,000 1,000 1,200 49,917 240,000
$
2004 11,809 35,000 1,000 1,600 49,409 320,000
$
2005 11,401 35,000 1,000 2,000 49,401 400,000
$ $
80,000 156,400 3,000
$ $
160,000 209,524 6,000 35,000 2,000 1,224 44,224 105,000 105,000 149,224
$ $
240,000 289,917 6,000 35,000 2,500 1,924 45,424 165,000 165,000 210,424
$ $
320,000 369,409 6,000 35,000 3,300 2,624 46,924 220,000 220,000 266,924
$ $
400,000 449,401 6,000 35,000 4,400 3,324 48,724 275,000 275,000 323,724
$
524 3,524 45,000 45,000 48,524
$
$
$
$
$
$
$
$
$
Common Stock Beginning Retained Earnings Current Earnings Total Net Worth Total Liabilities & Net Worth
$
1,000 4,832 107,876 156,400
$
1,000 4,832 7,724 60,300 209,524
$
1,000 12,556 7,717 79,493 289,917
$
1,000 20,273 6,809 102,485 369,409
$
1,000 27,082 6,401 125,677 449,401
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Balance Sheet
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