Mahogany Western Wear

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Clothing Retail Business Plan

Company Summary

Mahogany Western Wear is organized as a partnership among the two partners of Chandra E. Miller and Derrick L. McCoy.

We will be located at 13328 1/2 Almeda Rd, Houston, TX, being the epi-center of the African-American cowboy community on the south side of Houston.

The hours of operation will be Monday - Tuesday 10 a.m. - 6 p.m., Wednesday - Saturday 10 a.m. - 8 p.m., and Sunday 12 p.m. - 6 p.m. There will be extended special hours designated during The Houston Livestock Show & Rodeo season and during the Christmas holiday shopping season.

All merchandise will be purchased according to the company's mission and customer focus of outfitting all sizes including women's plus sizes and men's big and tall.

2.1 Company Ownership

Mahogany Western Wear is organized as a partnership among the two partners of Chandra E. Miller and Derrick L. McCoy. Chandra E. Miller will handle all administrative and managerial duties while Derrick L. McCoy acts as a silent partner.

2.2 Start-up Summary

Mahogany Western Wear's incorporation costs are listed below. The company will start with three months inventory on hand for apparel and accessories as this is the main revenue generator. The majority of the company's assets will reside in inventory. The opening days cash on hand balance will be $384.

The purpose of this business plan is to secure a $16,700 ACCION loan. This supplemental financing is required to work on site preparation, inventory, and operational expenses. The loan amount appears in the long-term liability row of the start-up summary. Other financing will include an owners investment of $5,100 and a short term revolving line of credit of $2,000 for inventory replenishment during months of high receipts.

Successful operation and building a loyal customer base will allow Mahogany Western Wear to be self sufficient and profitable in year two.

Start-up Funding
Start-up Expenses to Fund $9,416
Start-up Assets to Fund $14,384
Total Funding Required $23,800
Non-cash Assets from Start-up $14,000
Cash Requirements from Start-up $384
Additional Cash Raised $0
Cash Balance on Starting Date $384
Total Assets $14,384
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $16,700
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $2,000
Total Liabilities $18,700
Planned Investment
Owners Investment - Cash $5,100
Other $0
Additional Investment Requirement $0
Total Planned Investment $5,100
Loss at Start-up (Start-up Expenses) ($9,416)
Total Capital ($4,316)
Total Capital and Liabilities $14,384
Total Funding $23,800
Start-up Expenses
Rent $1,606
Grand Opening Event $400
Telephone & Utilities (3 months) $1,575
Travel - Dallas Market Buying Trip $350
Business Insurance $600
Advertising & Promotion $1,010
Store Fixtures/Decorations $1,500
Computer/Cash Register $950
Signage (Including Permits) $400
Organizational Dues & Subscriptions $125
Business/Office Supplies $400
Other $500
Total Start-up Expenses $9,416
Start-up Assets
Cash Required $384
Start-up Inventory $14,000
Other Current Assets $0
Long-term Assets $0
Total Assets $14,384
Total Requirements $23,800

2.3 Company Locations and Facilities

Mahogany Western Wear will be located at 13328 1/2 Almeda Rd., Houston, TX 77045. This space has 1,020 square feet and has been leased for two years. This location is central to the geographical location for the African-American cowboy community in the southern part of Houston, TX. We feel it is essential to our initial and ongoing success that we locate ourselves in the heartbeat of the community. We also strive to create an atmosphere of acceptance and community, as well as a retail environment where individuals can identify and bond with their culture.

All business deliveries and shipments will be handled through the store. The company office will also be housed at this location.

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