Crest Systems is a Value Added Reseller (VAR) that is focused on selling low-end inventory software and hardware products. The company markets Promerit Engineering software products to over 1,200 VARs that sell products in vertical markets. In addition, Crest Systems will market the software product to warehouse systems VARs who are looking for a low-end inventory software product.
2.1 Company Ownership
Richard Torres is the owner of Crest Systems. The company will be set up as a C Corporation. It is expected that this form of incorporation will allow room for growth and be an effective vehicle for acquiring additional capital in five to seven years.
2.2 Start-up Summary
The start-up cost of Crest Systems will consist primarily establishing an account receivable system and communication system for salespeople. Richard Torres will invest $50,000. He will also secure a $100,000 loan.
|Total Start-up Expenses||$16,300|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$16,300|
|Start-up Assets to Fund||$133,700|
|Total Funding Required||$150,000|
|Non-cash Assets from Start-up||$0|
|Cash Requirements from Start-up||$133,700|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$133,700|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$50,000|
|Loss at Start-up (Start-up Expenses)||($16,300)|
|Total Capital and Liabilities||$133,700|