Sit n' Caddy

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Garden Furniture Maker Business Plan

Company Summary

Garden Crafts is a small business subchapter S privately-held corporation with sales and production facilities located in Alpharetta, Georgia. Entrepreneur Keith Jones designed the prototype of Sit N' Caddy, and has joined business forces with Rob Kane to market and produce this unique product The corporation will target its initial annual production at 10,000 units.

Garden Crafts' sales and administration will be located in a home office shared by Mr. Jones' Internet mail order business in Alpharetta. Mrs. Jill Jones will handle a majority of these duties.

Production facilities will be housed in an existing wood cabinet shop in Roswell, Georgia. The existing equipment was sold to Garden Crafts by the retiring owner. The building will be rented on a six-month lease with a month-to-month extension. Messrs. Jones and Kane will manufacture the product on a part-time production schedule.

2.1 Company Ownership

The corporate name of Garden Crafts was researched in the Georgia Department of State database, and has been reserved.

Garden Crafts will file articles of subchapter S incorporation in Fulton County, Georgia.

The corporation will have no more than 35 shareholders. It will only have individuals, estates, or certain trusts as shareholders, it will not have nonresident, alien shareholders. It will have only one class of stock.

At that time of filing with the State of Georgia, IRS form 2553 will be filed with approval of the board of directors and shareholders for subchapter S election. The fiscal year will coincide with the calendar year.

The Board of Directors will have the following members:

Mr. Keith Jones of Alpharetta, Ga., Mr. Rob Kane of Marietta, Ga., Ms. Jill Jones of Alpharetta, Ga., Mr. David Hogan CPA of Atlanta, Ga., and Mr. Ted Barner PA of Roswell, Ga.

President and Secretary of the corporation will be Keith Jones of Alpharetta, Georgia, Vice-President and Treasurer will Rob Kane of Marietta, Georgia.

Under the securities laws of Georgia, issuing stock to organizers, officers, and family members are exempt from registration. Hence, under the articles of incorporation, the directors will authorize 1,000 issued shares in Garden Crafts. Mr. Jones will be issued 100 shares (50% ownership), and Mr. Kane will be issued 100 shares (50% ownership). In consideration for each share issued, the shareholder will have a capital requirement of $20. Additional capitalization may be raised by owner's contribution in return for additional stock, or by loan.

2.2 Start-up Summary

Our total start-up costs are projected in the tables and chart below. The majority of this cost is associated with a note held by Mr. John Houseman, former owner of Kustom Kabinets. He has agreed to sell us the equipment and supplies used in his previous business. The remainder of expenses come from legal, office supplies, insurance, and rent. The building that formerly housed Kustom Kabinets will be leased on a six-month basis with an option to extend.

Capital will also be raised by the sale of stock to the shareholders as outlined in the Company Ownership portion of this plan. Details are shown in the following chart and table.

Start-up Funding
Start-up Expenses to Fund $3,500
Start-up Assets to Fund $11,500
Total Funding Required $15,000
Non-cash Assets from Start-up $11,000
Cash Requirements from Start-up $500
Additional Cash Raised $0
Cash Balance on Starting Date $500
Total Assets $11,500
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Planned Investment
John Houseman - Cabinet Shop $10,000
Keith Jones - Stock Purchase $2,500
Rob Kane - Stock Purchase $2,500
Other $0
Additional Investment Requirement $0
Total Planned Investment $15,000
Loss at Start-up (Start-up Expenses) ($3,500)
Total Capital $11,500
Total Capital and Liabilities $11,500
Total Funding $15,000
Start-up Expenses
Incorporation and Tax Preparation $380
Stationery $20
Brochures and Promotional Materials $200
Consultants $0
Insurance Premium (First Year) $500
Rent (First Month) $800
Security Deposit $800
Expensed Equipment (First Payment) $700
Website $100
Other $0
Total Start-up Expenses $3,500
Start-up Assets
Cash Required $500
Start-up Inventory $1,000
Other Current Assets $10,000
Long-term Assets $0
Total Assets $11,500
Total Requirements $15,000

2.3 Company Locations and Facilities

Sales and Administration Office: Alpharetta, Georgia

Production facilities: Alpharetta, Georgia

Certified Public Accountant: David Hogan, Ronald Blue & Co. (Atlanta, Ga.)

Legal Counsel: Mr. Ted Barner, PA (Roswell, Ga.)