Massage Tools Products Inc. is a start-up business, established in Eugene, Oregon in October 2002. We sell Massage Tools to both the professional and retail market. Our products are designed to address the chronic overuse injuries and discomfort experienced by busy massage therapy professionals. Massage Tools products can be used for massage therapy in place of or in addition to a therapists’ hands to provide sufficient pressure for therapeutic massage. This product fills the need of a growing group of health care professionals whose careers are limited by their ability to serve multiple clients a day without interruption by injury.
2.1 Start-up Summary
Our start-up costs come to $19,300, which is mostly insurance and product development, legal costs, and expenses associated with opening our office. The start-up costs are to be financed by direct owner investment and a $15,000 line of credit with the bank. The assumptions are shown in the following table and illustration.
|Start-up Expenses to Fund||$19,300|
|Start-up Assets to Fund||$25,700|
|Total Funding Required||$45,000|
|Non-cash Assets from Start-up||$13,000|
|Cash Requirements from Start-up||$12,700|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$12,700|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$45,000|
|Loss at Start-up (Start-up Expenses)||($19,300)|
|Total Capital and Liabilities||$25,700|
|Research and Development||$6,500|
|Total Start-up Expenses||$19,300|
|Other Current Assets||$5,000|
2.2 Company Ownership
Massage Tools Products Inc. is a privately owned, C-corporation with a single owner.