Grutzen Watches
Company Summary
Grutzen Watches sells quality watches and provides excellent customer service for customers seeking a reliable watch. In the future Grutzen Watches intends to enter the luxury watch market.
2.1 Company Ownership
Grutzen Watches is a privately held international corporation. Production takes place in Germany and sales and marketing are focused on the United States – California for the short-term future.
Ownership:
- Franz Grutzen: 55% (Germany)
- Henry Winster: 30% (U.S.)
- Walter Young: 15% (U.S.)
2.2 Start-up Summary
Sixty percent (60%) of start-up costs will go to assets. Start-up costs will be financed through the owners’ investments, and loans. The assumptions are shown in the following table and chart.
*NOTE: The tables in this sample plan were converted from German deutschmarks to dollars. However, the numbers do not reflect current monetary exchange rates.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $20,000 |
| Stationery etc. | $500 |
| Brochures | $3,000 |
| Consultants | $10,000 |
| Insurance | $10,000 |
| Rent | $20,000 |
| Research and Development | $10,000 |
| Expensed Equipment | $10,000 |
| Other | $7,500 |
| Total Start-up Expenses | $91,000 |
| Start-up Assets | |
| Cash Required | $70,000 |
| Start-up Inventory | $25,000 |
| Other Current Assets | $5,000 |
| Long-term Assets | $35,000 |
| Total Assets | $135,000 |
| Total Requirements | $226,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $91,000 |
| Start-up Assets to Fund | $135,000 |
| Total Funding Required | $226,000 |
| Assets | |
| Non-cash Assets from Start-up | $65,000 |
| Cash Requirements from Start-up | $70,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $70,000 |
| Total Assets | $135,000 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $30,000 |
| Long-term Liabilities | $20,000 |
| Accounts Payable (Outstanding Bills) | $5,000 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $55,000 |
| Capital | |
| Planned Investment | |
| Investor 1 | $100,000 |
| Investor 2 | $71,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $171,000 |
| Loss at Start-up (Start-up Expenses) | ($91,000) |
| Total Capital | $80,000 |
| Total Capital and Liabilities | $135,000 |
| Total Funding | $226,000 |
2.3 Company Locations and Facilities
- The German factory is located at 210 Autoroute 17, Frankfurt, Germany.
- The factory is 1000 square meters and should be large enough for the first three years of the company’s growth.
- The watches will be shipped to and distributed from Henry Winster’s house at 343 Palm Avenue in Los Angeles, California.
- The watches will be initially sold in upscale watch stores in Los Angeles and San Francisco.
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