Tucson Electronics is envisioned to be the low cost leader in TV/DVD/VCR and home stereo repair for the Tucson area that will also be able to eventually provide satellite TV installation/servicing and new electronics sales, making it the local leader in comprehensive electronic sales/services.
The company will be a sole proprietorship registered in the state of Arizona and owned by Mr. James Munroe. The firm will have facilities on 530 W. Prince Ave. The initial facilities will contain a sales area, repair room in the back of the shop, office space and storage for parts and equipment.
The company is seeking a loan in order to finance the start of operations for the company. The owners will be putting up additional capital of their own as equity.
2.1 Start-up Summary
The data obtained for the start-up table comes from research done in the Tucson area with other small electronics shops who have started their own business, in addition to Mr. Munroe’s previous experience within the industry. Inflation has been taken into account between the estimates of these fellow business owners (and when they started) and the current prices for expensed items. Much of the equipment to go into the facilities such as tools, are currently owned by Mr. Munroe.
|Start-up Expenses to Fund||$26,300|
|Start-up Assets to Fund||$51,200|
|Total Funding Required||$77,500|
|Non-cash Assets from Start-up||$15,000|
|Cash Requirements from Start-up||$36,200|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$36,200|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$13,600|
|Additional Investment Requirement||$0|
|Total Planned Investment||$48,500|
|Loss at Start-up (Start-up Expenses)||($26,300)|
|Total Capital and Liabilities||$51,200|
|Total Start-up Expenses||$26,300|
|Other Current Assets||$8,000|