Marrowstone Advertising Consultants will be a limited liability partnership registered in the state of Delaware for tax purposes. Its founder is Mr. Curtiss Cole, a former marketing executive with the Boy Scouts of America. Mr. Cole has brought together a highly respected group of marketing, development, and graphic art specialists who, combined, have a total of 35 years of experience with nonprofit organizations.
The company has a limited number of private investors and does not plan to go public. The company has its main offices in Reston, Virginia. The facilities include a design lab, conference rooms and office spaces. The company expects to begin offering its services in January.
The company’s main clients will be small and start-up nonprofit institutions and local governments. By focusing on institutions such as these that have special needs, we believe we will be able to better serve our clients and produce a superior service that is more effective that other advertising firms.
2.1 Start-up Summary
Start-up assets required are $122,300, which includes cash needed to support operations until revenues reach an acceptable level. Start-up expenses are $31,700. Most of the company’s liabilities will come from outside private investors and management investment, however, we have obtained $16,000 in current borrowing from Bank of America Commercial Investments, the principal to be paid off in two years. A long-term loan of $45,000 through Charter Bank of Richmond will be paid off in ten years.
|Accounting and bookkeeping fees||$2,000|
|Total Start-up Expenses||$31,700|
|Other Current Assets||$5,000|
|Start-up Expenses to Fund||$31,700|
|Start-up Assets to Fund||$132,300|
|Total Funding Required||$164,000|
|Non-cash Assets from Start-up||$15,000|
|Cash Requirements from Start-up||$117,300|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$117,300|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$3,000|
|Other Current Liabilities (interest-free)||$0|
|Mr. Curtis Cole||$25,000|
|Ms. Jennie Marks||$20,000|
|Mr. David Danielson||$20,000|
|Mr. Milo Winn||$8,000|
|Additional Investment Requirement||$0|
|Total Planned Investment||$100,000|
|Loss at Start-up (Start-up Expenses)||($31,700)|
|Total Capital and Liabilities||$132,300|
2.2 Company Ownership
The company will have a number of outside private investors who will own 27% of the company’s shares. The rest will be owned by the senior management including Mr. Curtis Cole, (25%), Ms. Jennie Marks (20%), Mr. David Danielson, (20%), and Mr. Milo Winn (8%). All other financing will come from loans.