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.
- 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.
|Research and Development||$10,000|
|Total Start-up Expenses||$91,000|
|Other Current Assets||$5,000|
|Start-up Expenses to Fund||$91,000|
|Start-up Assets to Fund||$135,000|
|Total Funding Required||$226,000|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$5,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$171,000|
|Loss at Start-up (Start-up Expenses)||($91,000)|
|Total Capital and Liabilities||$135,000|
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.