FireStarters
Company Summary
FireStarters will offer youth-oriented products and clothing, online, that are popular nationwide but not available locally. Jill Stranton and Bobbi Hanson, co-owners of FireStarters, will create a cost-effective operation that will quickly ship clothing and product purchases to the customer.
FireStarters will focus on marketing products to its target customers in small cities with populations between 100,000 and 150,000 residents. The key to marketing strategy will be staging events that will increase the visibility of the online store with the target customer base. We will use existing local businesses that serve the same target customer base to co-sponsor these events.
2.1 Company Ownership
Jill Stranton and Bobbi Hanson are the co-owners of FireStarters.
2.2 Start-up Summary
The start-up costs of FireStarters consists of product inventory, creating a promotion campaign and establishing its website. FireStarters is funding start up with owner investments and a long-term business loan.
| Start-up Funding | |
| Start-up Expenses to Fund | $155,400 |
| Start-up Assets to Fund | $194,600 |
| Total Funding Required | $350,000 |
| Assets | |
| Non-cash Assets from Start-up | $130,000 |
| Cash Requirements from Start-up | $64,600 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $64,600 |
| Total Assets | $194,600 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $150,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $150,000 |
| Capital | |
| Planned Investment | |
| Jill Stranton | $100,000 |
| Bobbi Hanson | $100,000 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $200,000 |
| Loss at Start-up (Start-up Expenses) | ($155,400) |
| Total Capital | $44,600 |
| Total Capital and Liabilities | $194,600 |
| Total Funding | $350,000 |
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $2,000 |
| Stationery etc. | $400 |
| Website Development | $30,000 |
| Insurance | $1,000 |
| Rent | $2,000 |
| Marketing | $120,000 |
| Expensed Equipment | $0 |
| Other | $0 |
| Total Start-up Expenses | $155,400 |
| Start-up Assets | |
| Cash Required | $64,600 |
| Start-up Inventory | $80,000 |
| Other Current Assets | $0 |
| Long-term Assets | $50,000 |
| Total Assets | $194,600 |
| Total Requirements | $350,000 |
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