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Earthly Clean has been formed as an Illinois registered LLC. The company has been founded by Devon McGregor. The company exists to distribute environmentally friendly cleaning supplies through an efficient, networking distribution system.
2.1 Start-up Summary
Earthly Clean has incurred the following expenses for the start-up phases of the organization:
- Storage space: This will be used for the storage of product inventory. While Earthly Clean could get away with a smaller space such as a closet in Devon’s home, he is able to achieve costs breaks by purchasing larger quantities and will take these discounts and place the inventory in storage.
- Service provider fees: Earthly Clean has incurred both accountant and attorney fees in the set up of the business. The accountant will set up the PeachTree accounting system and the attorney will develop and register the business formation as well as draft some sale agreements for distributors.
- Computer system: The computer system will be used for correspondence, accounting purposes as well as to develop marketing and sales information. The system will include a laptop computer, printer, fax/scanner, and a broadband Internet connection. Earthly Clean will use Microsoft Office and PeachTree Accounting as their preferred software.
- Assorted types of paper and stationery: Personalized with a logo, return addresses, etc. for catalogs, and brochures.
- Assorted office furniture and accessories: The office will be located in Devon’s house.
|Start-up Expenses to Fund||$9,140|
|Start-up Assets to Fund||$40,860|
|Total Funding Required||$50,000|
|Non-cash Assets from Start-up||$5,000|
|Cash Requirements from Start-up||$35,860|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$35,860|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Family & Friends||$20,000|
|Additional Investment Requirement||$0|
|Total Planned Investment||$30,000|
|Loss at Start-up (Start-up Expenses)||($9,140)|
|Total Capital and Liabilities||$40,860|
|Professional service providers||$4,000|
|Expensed Equipment – Computer system||$2,500|
|Total Start-up Expenses||$9,140|
|Other Current Assets||$0|
2.2 Company Ownership
Earthly Clean is solely owned by Devon McGregor. In addition to his own investment Devon has received an investment from friends and family as well as a long-term bank loan.