Stretch 'r Wings
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 Expenses to Fund||$12,000|
|Start-up Assets to Fund||$70,000|
|Total Funding Required||$82,000|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$62,000|
|Loss at Start-up (Start-up Expenses)||($12,000)|
|Total Capital and Liabilities||$70,000|
|Jig and Fabricating Equipment||$1,000|
|Aug. Rent and Security Deposit||$1,050|
|Research and Development Prototype||$3,000|
|Engineering Fee – April, May, June, July||$2,500|
|Total Start-up Expenses||$12,000|
|Other Current Assets||$10,000|