Morningstar Bakery will be located in downtown [Name omitted] in a historical building. This downtown district is a very popular destination because of the historical architecture for weekenders and tourists. It is also a prime location for all the employees of the surrounding downtown businesses. The bakery sells non-wheat and other health specific breads, sweets and pastries to the surrounding community every Tuesday through Sunday.
2.1 Company Ownership
Currently Morningstar Bakery is a sole proprietorship owned by Donna Sharp. Eventually, as the company becomes established, Morningstar Bakery will apply to be incorporated.
2.2 Start-up Summary
The primary expense to establish the Morningstar Bakery is the mortgage loan estimated at $175,000 to purchase the vacant space on [Name omitted] street. The building was previously used as a bakery and we plan to buy the used equipment along with the space. This cost is also calculated into the loan estimate. Donna Sharp intends to invest $7,500 of her savings to cover the other cost of start-up.
These costs include:
- Advertising brochures.
- Bakery ingredients.
- Bakery accessories, i.e. paper bags, cartons, etc.
|Research and development||$0|
|Total Start-up Expenses||$5,408|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$5,408|
|Start-up Assets to Fund||$187,092|
|Total Funding Required||$192,500|
|Non-cash Assets from Start-up||$175,000|
|Cash Requirements from Start-up||$12,092|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$12,092|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$12,000|
|Additional Investment Requirement||$0|
|Total Planned Investment||$7,500|
|Loss at Start-up (Start-up Expenses)||($5,408)|
|Total Capital and Liabilities||$187,092|