Doggie Pause will be established as a Subchapter S corporation owned in equal shares by two founders, Barque Oldeyeller and Rufe Rintintin. We are working with the local legal firm Akita, Shar-Pei, Pug & Kesshond, to establish the legal entity.
2.1 Start-up Summary
The start up for Doggie Pause will be simple and cost efficient. Rent and utilities will be the main expense, which will consist of a large building space and office. There will be many advertising expenses in the beginning that will promote the service, and this expense will lessen as months go on and people become aware of our service. Start-up inventory will be mainly shampoo and grooming supplies, food for the dogs, and other supplies like bedding. Assets will be the kennels and play structures for the dogs, and the bathing facilities.
Loans will be needed to start up the company, and we will also be investing some of our own funds. At this point we’re planning to invest $10,000 each as founders, and to take a small business loan of $42K. The loan will be paid off over three years as shown in the cash flow.
|Start-up Expenses to Fund||$32,500|
|Start-up Assets to Fund||$27,500|
|Total Funding Required||$60,000|
|Non-cash Assets from Start-up||$10,140|
|Cash Requirements from Start-up||$20,000|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$20,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$20,000|
|Loss at Start-up (Start-up Expenses)||($32,500)|
|Total Capital and Liabilities||$27,500|
|Total Start-up Expenses||$32,500|
|Other Current Assets||$0|