Mojo Music
Company Summary
Mojo Music offers popular new CDs, used CDs, DVD rentals, and CD/DVD recording media. The target customers for the store are the 23,000 students of the State University. The store is located one half block from the major entrance to the university. The student group represents a unique music buying and DVD rental group that is not being served by the area’s existing CD stores or video rental outlets.
2.1 Start-up Summary
The start-up cost of Mojo Music will consist primarily of inventory and display equipment. Karl Payne will invest $50,000. In addition to securing a $100,000 SBA loan, Karl has also obtained an investment of $100,000 from a silent partner.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $1,000 |
| Stationery etc. | $0 |
| Brochures | $0 |
| Consultants | $0 |
| Insurance | $0 |
| Rent | $4,000 |
| Inventory | $120,000 |
| Expensed Equipment | $20,000 |
| Display Equipment | $6,000 |
| Other | $0 |
| Total Start-up Expenses | $151,000 |
| Start-up Assets | |
| Cash Required | $49,000 |
| Start-up Inventory | $0 |
| Other Current Assets | $0 |
| Long-term Assets | $50,000 |
| Total Assets | $99,000 |
| Total Requirements | $250,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $151,000 |
| Start-up Assets to Fund | $99,000 |
| Total Funding Required | $250,000 |
| Assets | |
| Non-cash Assets from Start-up | $50,000 |
| Cash Requirements from Start-up | $49,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $49,000 |
| Total Assets | $99,000 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $100,000 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $100,000 |
| Capital | |
| Planned Investment | |
| Karl Payne | $50,000 |
| Investor 2 | $100,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $150,000 |
| Loss at Start-up (Start-up Expenses) | ($151,000) |
| Total Capital | ($1,000) |
| Total Capital and Liabilities | $99,000 |
| Total Funding | $250,000 |
2.2 Company Ownership
The store owner is Karl Payne who has worked in CD stores for over ten years. Most recently, he was the store manager for CD Warehouse for seven years supervising a staff 10.
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