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Independent Choice Flicks
Company Summary
ICF will be based in Eugene Ore. It will offer Eugene an alternative to the traditional large franchise, commercial movie rental stores. ICF’s selections will be made up of non-commercial releases, independent films, foreign films, and films that are present at the international film festivals, including the Sundance Film Festival.
ICF will offer a wide range of business hours and exceptional customer service. ICF will generally be willing to special order a movie for a customer if the movie falls within a genre of films that ICF currently stocks. The business will be located in a high traffic area in Eugene and will have a total of five employees by the end of year one. ICF is forecasted to reach profitability by month nine and will have $32,000 in profit by year three.
2.1 Company Ownership
ICF will be a sole proprietorship owned by Janet Sinemma.
2.2 Start-up Summary
ICF will have the following start-up costs, of which everything that is a long-term asset (any asset that will be used for more than one year) will be depreciated using the straight-line method.
- Legal fees: used for business formation and generation and review of contracts.
- Advertising costs: costs attributed to advertisements placed in the Register Guard, Eugene Weekly, and Bijou Arts Cinema.
- Display shelves (purchased used).
- Cash register, with bar code printer, scanner, and software for tracking inventory.
- Cases for the video cassettes.
- Computer for the back office including a printer, CD-RW, and Internet connection.
- Furniture for the back office.
- Phone lines (2).
- Fax machine and copier.
- Movies (these are listed under long-term assets).
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $300 |
| Stationery etc. | $200 |
| Rent | $0 |
| Other | $0 |
| Total Start-up Expenses | $500 |
| Start-up Assets | |
| Cash Required | $28,800 |
| Start-up Inventory | $0 |
| Other Current Assets | $0 |
| Long-term Assets | $15,700 |
| Total Assets | $44,500 |
| Total Requirements | $45,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $500 |
| Start-up Assets to Fund | $44,500 |
| Total Funding Required | $45,000 |
| Assets | |
| Non-cash Assets from Start-up | $15,700 |
| Cash Requirements from Start-up | $28,800 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $28,800 |
| Total Assets | $44,500 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $0 |
| Capital | |
| Planned Investment | |
| Janet | $45,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $45,000 |
| Loss at Start-up (Start-up Expenses) | ($500) |
| Total Capital | $44,500 |
| Total Capital and Liabilities | $44,500 |
| Total Funding | $45,000 |