Nine Lives Outdoor Gear Consignment Shop
Nine Lives, to be located in Eugene, OR will be a consignment shop for outdoor clothing and gear. Nine Lives will offer used outdoor clothing and gear for reasonable prices, allowing a wider range of people to enjoy the outdoors. Nine Lives will sell the items on consignment, meaning Nine Lives will sell other owner’s items and pay for them when sold. Typically the items on consignment will be used. They will also consist of new manufacturers’ closeouts and seconds. Occassionally, Nine Lives will purchase outright manufacturers’ closeouts and seconds. This will only occur when the savings are large and the items are likely to be sold quickly.
The business will make a profit in month six, and will grow steadily each consecutive month.
2.1 Company Ownership
Nine Lives will be an Oregon corporation. Its founder and sole stock holder is Jim Gearboy.
2.2 Start-up Summary
Nine Lives’ start-up costs will include:
- Computer system, with CD-RW, printer, Internet connection.
- Copier, fax.
- Assorted office supplies.
- Office furniture (used).
- Display equipment including racks, hangers, and shelves (these will be purchased used from a recent retailer bankruptcy.
- Mirrors (for theft protection, also to be found used).
- Bar code label printer, scanner and corresponding inventory management software.
- Advertising- in local outdoors publications and general newspaper in the outdoor section.
- Legal fees for the creation of the corporation and general business forms.
The items appropriate for depreciation will be depreciated using the straight-line method.
|Total Start-up Expenses||$2,150|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$2,150|
|Start-up Assets to Fund||$17,850|
|Total Funding Required||$20,000|
|Non-cash Assets from Start-up||$3,700|
|Cash Requirements from Start-up||$14,150|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$14,150|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$20,000|
|Loss at Start-up (Start-up Expenses)||($2,150)|
|Total Capital and Liabilities||$17,850|