Mt. Hood Records
Mt. Hood Records is a start-up organization that has been founded as an Oregon based L.L.C. The founder is Hillary MacQuilliams. The company was founded in January 2003.
2.1 Company Ownership
The company has been founded and is primarily owned by Hillary MacQuilliams. Hillary has invested personal funds in the business and will seek additional investment money from friends and family.
2.2 Start-up Summary
Mt. Hood Records will purchase the following equipment needed for the start up phase of the business:
- Laptop computer
- Various printed material
Mt. Hood Records will initially be located in Hillary’s home. For years two and three a small space will be used primarily for inventory management and sales operations.
Mt. Hood Records will be operating on no revenue for the first year with low overhead. Mt. Hood Records will rely on the owner’s investment and money from friends and family. It will be too difficult to secure bank debt due to the long period of time before revenue.
Hillary will not take a salary for the first two years. This becomes less important since she will not be securing unfamiliar investors or bank debt which typically want the principal to draw a salary. For the first year Hilary will be making investments of sweat equity.
|Research and Development||$0|
|Total Start-up Expenses||$6,650|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$6,650|
|Start-up Assets to Fund||$21,350|
|Total Funding Required||$28,000|
|Non-cash Assets from Start-up||$2,000|
|Cash Requirements from Start-up||$19,350|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$19,350|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Family and Friends||$18,000|
|Additional Investment Requirement||$0|
|Total Planned Investment||$28,000|
|Loss at Start-up (Start-up Expenses)||($6,650)|
|Total Capital and Liabilities||$21,350|