Magnolia Inn
Company Summary
The Magnolia Inn is a beautiful facility that sits atop a bluff over looking the Pacific Ocean in scenic Half Moon Bay California. We are a new start-up enterprise that will offer seven wonderfully furnished rooms to guests who want to get away from the ordinary. Each room is individually furnished with antiques and there is a large deck with a hot tub overlooking the ocean. The Magnolia will provide a full breakfast each morning to our guests with no expense spared. Our target market is the professional couple who lives in the San Francisco area, or people looking for a place to honeymoon.
2.1 Company Ownership
The Magnolia Inn is owned and operated solely by Jim and Nancy Anderson. Jim and Nancy have refurbished a beautiful victorian home to accommodate 14 guests at a time in seven rooms. This is a start-up enterprise for the Andersons who are equal owners in the business. Jim and Nancy purchased the property a little over a year ago and have worked this past year preparing to open the Inn.
2.2 Start-up Summary
The start-up costs will come to $38,000 (including cash required at start-up) which will be primarily financed by Jim and Nancy Anderson. Joe Anderson, Jim’s father has contributed $15,000 into the enterprise. The costs of improvements to the building totaled $30,000. Jim and Nancy purchased the property a year ago with the intent of renovating and opening the business.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $500 |
| Stationery etc. | $500 |
| Insurance | $500 |
| Improvements to Inn | $30,000 |
| Flowers | $500 |
| Total Start-up Expenses | $32,000 |
| Start-up Assets | |
| Cash Required | $6,000 |
| Other Current Assets | $10,000 |
| Long-term Assets | $370,000 |
| Total Assets | $386,000 |
| Total Requirements | $418,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $32,000 |
| Start-up Assets to Fund | $386,000 |
| Total Funding Required | $418,000 |
| Assets | |
| Non-cash Assets from Start-up | $380,000 |
| Cash Requirements from Start-up | $6,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $6,000 |
| Total Assets | $386,000 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $353,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $353,000 |
| Capital | |
| Planned Investment | |
| Jim & Nancy Anderson | $50,000 |
| Joe Anderson | $15,000 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $65,000 |
| Loss at Start-up (Start-up Expenses) | ($32,000) |
| Total Capital | $33,000 |
| Total Capital and Liabilities | $386,000 |
| Total Funding | $418,000 |
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