Jerseys R Us

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Sports Memorabilia Business Plan

Company Summary

Jerseys is an existing business that is being purchased by Phil Garment. The business will be a sole proprietorship. The business is being sold because the previous owner is ready to retire. For a lump sum, the lease will be transferred and Phil will receive the current inventory as well as the good will of the business. The name will remain the same and the inventory will also be similar, however, in addition to baseball and football jerseys, Phil will stock cycling jerseys as well.

2.1 Company History

The business began as Jerseys R Us back in 1980 by Chuck Jack. Chuck is ready to retire and was looking to get a bit of cash from his business, recognizing that a large portion of his retirement account will be supplied by his wife's pension.

Past Performance
2000 2001 2002
Sales $114,000 $112,000 $111,000
Gross Margin $65,000 $63,000 $59,000
Gross Margin % 57.02% 56.25% 53.15%
Operating Expenses $0 $0 $0
Inventory Turnover 1.53 1.66 1.76
Balance Sheet
2000 2001 2002
Current Assets
Cash $12,000 $10,000 $8,000
Inventory $32,000 $27,000 $32,000
Other Current Assets $12,000 $14,000 $18,000
Total Current Assets $56,000 $51,000 $58,000
Long-term Assets
Long-term Assets $12,000 $22,000 $34,000
Accumulated Depreciation $3,400 $5,200 $6,700
Total Long-term Assets $8,600 $16,800 $27,300
Total Assets $64,600 $67,800 $85,300
Current Liabilities
Accounts Payable $3,200 $2,500 $15,000
Current Borrowing $1,700 $1,300 $2,200
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $4,900 $3,800 $17,200
Long-term Liabilities $12,000 $8,000 $8,000
Total Liabilities $16,900 $11,800 $25,200
Paid-in Capital $0 $0 $0
Retained Earnings $47,700 $56,000 $60,100
Earnings $0 $0 $0
Total Capital $47,700 $56,000 $60,100
Total Capital and Liabilities $64,600 $67,800 $85,300
Other Inputs
Payment Days 0 0 0

2.2 Company Ownership

Phil Garment is the sole proprietor.