University Mopeds

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Mopeds Rental Business Plan

Company Summary

University Mopeds will rent mopeds to University of Oregon students, as well as others who would have a need. There is currently no business like this, in Eugene, which caters to this market. For slightly more than the cost of a monthly cellular phone bill, it is possible for a student to have their own mode of transportation that is fairly inexpensive. The target market for this business would be the approximately 15,000 full-time U of O students.

There are thousands of students who are commuting daily from the Autzen Field area. Parking on campus is hard to find, and the bus offers few options. This is where the economical moped comes into play. Many students do not have the disposable income that it takes to purchase a moped, but they are in a position to pay $50 per month to rent. Assuming an average purchase price of $550, and a ten month rental at $50 per month, it is possible for University Mopeds to be profitable in year two.

2.1 Start-up Summary

This company will be funded by Matthew Cavanaugh. The majority of the funding will come from private savings and local investors, plus loans backed by starting assets. The cost of the start-up, including inventory, legal expenses, and advertising, will total $100,000. We anticipate that this company will start generating immediate cash flow.

Start-up Expenses
Legal $500
Stationery etc. $150
Brochures $0
Consultants $0
Insurance $500
Rent $1,000
Research and development $750
Expensed equipment $1,500
Other $0
Total Start-up Expenses $4,400
Start-up Assets
Cash Required $33,100
Start-up Inventory $82,500
Other Current Assets $50,000
Long-term Assets $300,000
Total Assets $465,600
Total Requirements $470,000
Start-up Funding
Start-up Expenses to Fund $4,400
Start-up Assets to Fund $465,600
Total Funding Required $470,000
Non-cash Assets from Start-up $432,500
Cash Requirements from Start-up $33,100
Additional Cash Raised $0
Cash Balance on Starting Date $33,100
Total Assets $465,600
Liabilities and Capital
Current Borrowing $40,000
Long-term Liabilities $300,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $340,000
Planned Investment
Investor 1 $100,000
Investor 2 $10,000
Other $20,000
Additional Investment Requirement $0
Total Planned Investment $130,000
Loss at Start-up (Start-up Expenses) ($4,400)
Total Capital $125,600
Total Capital and Liabilities $465,600
Total Funding $470,000

2.2 Company Ownership

The official name of this company will be University Mopeds, Incorporated. It will be an S corporation. The reason that the company will incorporate will be for tax advantages and to decrease liability.

2.3 Company Locations and Facilities

The company will be located in Eugene, Oregon. This location is ideal because of the need for inexpensive transportation by the large student population. If University Mopeds is successful, which we believe that it will be, other locations will be opened at various other university towns.