Basket of Goodies
BOG, soon to be located in Salem, OR will offer a wide range of gourmet gift baskets, production as well as custom units. BOG will be hand assembling the baskets out of premier ingredients, local when possible. The business will be based out of Susan Presento’s home. Although this will be a home-based business, toward the end of year one Susan will have an employee. If the business goes per the forecasted plan, the business will achieve profits by the end of year one.
2.1 Company Ownership
The Basket of Goodies will be a sole proprietorship, owned by Susan Presento.
2.2 Start-up Summary
BOG’s start-up costs will include all the equipment needed for the home-based office, legal fees, website creation, and start-up advertising. The home office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies, cellular phone, and pager. The computer should have a 500 megahertz Celeron/Pentium processor, 64 megabytes of RAM (preferably 128), 6 gigabyte hard drive, and a rewritable CD-ROM for backing up the system. Additionally, there will be the expense installation of a broadband connection. While a broadband connection is not totally necessary, it only costs between $40-50 per month for service and will make working on the Internet significantly faster and easier.
The home office will also require a few pieces of furniture such as a desk, chair, and bookshelf to transform a standard room into an office. Lastly, an additional land phone line will be required. The legal fees are used for the formation of the business as well as for reviewing/generating standard client contracts. The Web creation fees at start-up costs are for design and creation of the website. The start-up advertising will be the production of brochures.
|Total Start-up Expenses||$3,350|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$3,350|
|Start-up Assets to Fund||$24,650|
|Total Funding Required||$28,000|
|Non-cash Assets from Start-up||$2,000|
|Cash Requirements from Start-up||$22,650|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$22,650|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$28,000|
|Loss at Start-up (Start-up Expenses)||($3,350)|
|Total Capital and Liabilities||$24,650|