University Mopeds
Company Summary
University Mopeds will rent mopeds to University of Oregon students, as well as others who would have a need. There is currently no business like this, in Eugene, which caters to this market. For slightly more than the cost of a monthly cellular phone bill, it is possible for a student to have their own mode of transportation that is fairly inexpensive. The target market for this business would be the approximately 15,000 full-time U of O students.
There are thousands of students who are commuting daily from the Autzen Field area. Parking on campus is hard to find, and the bus offers few options. This is where the economical moped comes into play. Many students do not have the disposable income that it takes to purchase a moped, but they are in a position to pay $50 per month to rent. Assuming an average purchase price of $550, and a ten month rental at $50 per month, it is possible for University Mopeds to be profitable in year two.
2.1 Start-up Summary
This company will be funded by Matthew Cavanaugh. The majority of the funding will come from private savings and local investors, plus loans backed by starting assets. The cost of the start-up, including inventory, legal expenses, and advertising, will total $100,000. We anticipate that this company will start generating immediate cash flow.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $500 |
| Stationery etc. | $150 |
| Brochures | $0 |
| Consultants | $0 |
| Insurance | $500 |
| Rent | $1,000 |
| Research and development | $750 |
| Expensed equipment | $1,500 |
| Other | $0 |
| Total Start-up Expenses | $4,400 |
| Start-up Assets | |
| Cash Required | $33,100 |
| Start-up Inventory | $82,500 |
| Other Current Assets | $50,000 |
| Long-term Assets | $300,000 |
| Total Assets | $465,600 |
| Total Requirements | $470,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $4,400 |
| Start-up Assets to Fund | $465,600 |
| Total Funding Required | $470,000 |
| Assets | |
| Non-cash Assets from Start-up | $432,500 |
| Cash Requirements from Start-up | $33,100 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $33,100 |
| Total Assets | $465,600 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $40,000 |
| Long-term Liabilities | $300,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $340,000 |
| Capital | |
| Planned Investment | |
| Investor 1 | $100,000 |
| Investor 2 | $10,000 |
| Other | $20,000 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $130,000 |
| Loss at Start-up (Start-up Expenses) | ($4,400) |
| Total Capital | $125,600 |
| Total Capital and Liabilities | $465,600 |
| Total Funding | $470,000 |
2.2 Company Ownership
The official name of this company will be University Mopeds, Incorporated. It will be an S corporation. The reason that the company will incorporate will be for tax advantages and to decrease liability.
2.3 Company Locations and Facilities
The company will be located in Eugene, Oregon. This location is ideal because of the need for inexpensive transportation by the large student population. If University Mopeds is successful, which we believe that it will be, other locations will be opened at various other university towns.
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