Stretch 'r Wings
Company Summary
Stretch ‘r Wings is a start-up company which provides quality-designed and manufactured medical units for aircraft and helicopters. The business will be located in the Metro, IL area. This area has many advantages for shipping and receiving, including: manpower, access to State University’s engineering program, and an abundance of manufacturing space for lease.
2.1 Company Ownership
Stretch ‘r Wings will be incorporated. The company will be privately owned by **, who has worked for thirty-four years in the aircraft field. For fourteen years, the owner has designed and manufactured aircraft medical units under the FAA, STC, and PMA.
**Names have been removed for confidentiality.
2.2 Start-up Summary
Stretch ‘r Wings’ start-up costs will be $82,000. This includes $12,000 for start-up expenses, $60,000 for cash reserve, and $10,000 in shop equipment assets (furnished by the owner). High cash reserves are required to offset the operating expenses before the company reaches its sales targets. The start-up expenses will be covered by the owner, a second investor, and a $20,000, five-year loan from the bank.

Start-up Funding | |
Start-up Expenses to Fund | $12,000 |
Start-up Assets to Fund | $70,000 |
Total Funding Required | $82,000 |
Assets | |
Non-cash Assets from Start-up | $10,000 |
Cash Requirements from Start-up | $60,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $60,000 |
Total Assets | $70,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $20,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $20,000 |
Capital | |
Planned Investment | |
Owner | $35,000 |
Investor 1 | $27,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $62,000 |
Loss at Start-up (Start-up Expenses) | ($12,000) |
Total Capital | $50,000 |
Total Capital and Liabilities | $70,000 |
Total Funding | $82,000 |
Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $1,000 |
Stationery etc. | $800 |
Accounting | $600 |
Jig and Fabricating Equipment | $1,000 |
Aug. Rent and Security Deposit | $1,050 |
Research and Development Prototype | $3,000 |
Aluminum Inventory | $1,000 |
Software | $500 |
Engineering Fee – April, May, June, July | $2,500 |
Other | $550 |
Total Start-up Expenses | $12,000 |
Start-up Assets | |
Cash Required | $60,000 |
Start-up Inventory | $0 |
Other Current Assets | $10,000 |
Long-term Assets | $0 |
Total Assets | $70,000 |
Total Requirements | $82,000 |