Cutting Edge Drapery

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Drapery Fabricator Business Plan

Management Summary

Cutting Edge Drapery is presently made up of six employees and the principal. Outside installers are used. Four stitchers and one production supervisor are kept busy nearly full-time. Two of the stitchers are putting in 30 hour weeks and two are working full 40 hour weeks. As work volume increases, a fifth stitcher will need to be hired and longer hours will need to be worked by those now working only 30 hours/week. There is sufficient room in the production facilities to add a sixth stitcher if volume dictates. It is planned that some less-critical work may need to be farmed out to subcontractors.

An administrative assistant has been hired and is presently being trained in. It is planned that this assistant will take substantial paperwork and mundane computer work away from the owner as well as much of the non-production related work now being handled by the production supervisor. This would include recording receipts, maintaining the accounts receivable files, customer files, scheduling of installations, etc.

At present, nearly 50% of the owner's time is taken up with administrative matters. It is hoped that these matters will occupy less than 20% of her time.

A new outside accountant has been engaged who is streamlining the computerized accounts.

6.1 Personnel Plan

All work is, at the moment, produced by four production staff and one production supervisor. Two of these stitchers are kept busy 30 hours/week and the other two are putting in full 40-hour weeks. Additional stitchers will be added where necessary and in line with success in penetrating the plan's targeted new business. By the end of March 1998, it is assumed that increased business volume will require two stitchers to put in a full 40-hour week. By the end of June 1998, increased volume will require hiring a new stitcher working a 30-hour/week, and increasing to 40 hour/week by end of September. In 1999, Cutting Edge Drapery will have five stitchers working full-time, with an increasing amount of less sensitive work being farmed out to subcontractors. It is assumed that a sixth stitcher will be added in either year 1999 or 2000, depending on demand volume.

The hourly wage includes basic wage plus 7.65% social security, 2% unemployment tax, and 3% workers compensation.

The owner's income is calculated at $60,000 per year.

Personnel Plan
1998 1999 2000
Production Personnel
Stitcher 1 $19,260 $20,544 $20,544
Stitcher 2 $17,244 $18,394 $18,394
Stitcher 3 $17,299 $17,299 $17,299
Stitcher 4 $16,358 $16,358 $16,358
Supervisor $24,000 $24,000 $24,000
New stitcher $6,134 $12,269 $12,269
Subtotal $100,296 $108,864 $108,864
Sales and Marketing Personnel
Owner $60,000 $60,000 $60,000
Other $0 $0 $0
Subtotal $60,000 $60,000 $60,000
General and Administrative Personnel
Administrative assistant $11,520 $11,520 $11,520
Other $0 $0 $0
Subtotal $11,520 $11,520 $11,520
Other Personnel
Name or title $0 $0 $0
Other $0 $0 $0
Subtotal $0 $0 $0
Total People 6 0 0
Total Payroll $171,816 $180,384 $180,384