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The undersigned reader acknowledges that the information provided by Hill Country

Outfitters, LLC in this business plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of Stephen Rivers, owner.
It is acknowledged by the reader that information to be furnished in this business
plan is in all respects confidential in nature, other than information which is in the public
domain through other means and that any disclosure or use of same by reader may
cause serious harm or damage to Hill Country Outfitters, LLC.
Upon request, this document is to be immediately returned to Stephen W. Rivers.

Signature

Name (typed or printed)

Date

This is a business plan. It does not imply an offering of securities.

Table of Contents
EXECUTIVE SUMMARY .......................................................................6
COMPANY DESCRIPTION ....................................................................9
2.1.
2.2.
2.3.
2.4.

COMPANY OVERVIEW: .....................................................................................................................................9


VISION ..........................................................................................................................................................9
MISSION ........................................................................................................................................................9
CHALLENGES ...................................................................................................................................................9

SERVICES OVERVIEW ........................................................................ 10


3.1.
3.2.
3.3.

SERVICES: ....................................................................................................................................................10
COMPETITIVE ADVANTAGE ..............................................................................................................................11
BENEFITS AND FEATURES: ...............................................................................................................................11

MARKETING PLAN ............................................................................ 12


4.1.
MARKET ANALYSIS:........................................................................................................................................12
4.1.1. Market Description ..............................................................................................................................12
4.1.2. Market Growth ....................................................................................................................................12
4.1.3. Market Gap ..........................................................................................................................................13
4.1.4. Target Market ......................................................................................................................................13
4.1.5. Market Growth Forecast ......................................................................................................................16
4.1.6. Regulations ..........................................................................................................................................17
4.1.7. Porters Five Force Model: ....................................................................................................................17
4.1.8. SWOT Analysis .....................................................................................................................................18
4.1.9. Competitive Analysis ............................................................................................................................19
4.2.
MARKETING STRATEGY ...................................................................................................................................21
4.2.1
Value Proposition .................................................................................................................................21
4.2.2
Branding...............................................................................................................................................21
4.2.3
Marketing Strategy: Challenger ...........................................................................................................22
4.2.4
Business Strategy: Analyzer .................................................................................................................22
4.3.
MARKETING MIX STRATEGY ............................................................................................................................22
4.3.1
Product Strategy: .................................................................................................................................22
4.3.2
Pricing Strategy: ...................................................................................................................................22
4.3.3
Place Strategy: .....................................................................................................................................23
4.3.4
Promotion Strategy: .............................................................................................................................24
4.3.5
First Year Advertising budget ...............................................................................................................25
4.3.6
Marketing Strategy Summary: .............................................................................................................26

OPERATIONAL PLAN ......................................................................... 27


5.1.
PERSONNEL PLAN ..........................................................................................................................................27
5.1.1
Stephen Rivers: Chief Executive Officer ................................................................................................27

5.1.2
5.2.
5.3.
5.4.
5.5.
5.6.

Tonia Rivers: General Manager ...........................................................................................................27


TRAINING .....................................................................................................................................................28
FEEDBACK AND CONTROL ................................................................................................................................28
STORE LOCATION...........................................................................................................................................28
PERSONNEL PLAN ..........................................................................................................................................29
RISK ANALYSIS: .............................................................................................................................................29

FINANCIAL PLAN .............................................................................. 32


6.1.
6.2.
6.3.
6.4.
6.5.
6.6.

ASSUMPTIONS ..............................................................................................................................................32
START-UP EXPENSES: .....................................................................................................................................34
SALES PROJECTIONS .......................................................................................................................................35
PROFIT & LOSS PROJECTIONS...........................................................................................................................37
CASH FLOW PROJECTIONS ...............................................................................................................................40
PROJECTED BALANCE SHEETS ...........................................................................................................................41

List of Tables and Figures


Table 1: Summary of Financial Projections .................................................................................................. 7
Table 2: Target Market of Individual Customers in terms of Age, 2011 ..................................................... 13
Table 3: Target Market of Individual Customers in terms of Income, 2011 ................................................ 14
Table 4: Target Market 2010 ....................................................................................................................... 14
Table 5: Federal Corporate Tax Rates 2013 .............................................................................................. 17
Table 6: Competitive Profile Matrix ............................................................................................................. 20
Table 7: Billboard Advertising Rates in North Carolina ............................................................................... 25
Table 8: Sports Illustrated Advertising Rates .............................................................................................. 25
Table 9: Outdoor Recreation Event Pricing ................................................................................................ 25
Table 10: Email Marketing Package ........................................................................................................... 25
Table 11: Website Advertising Rates .......................................................................................................... 25
Table 12: Risk Analysis ............................................................................................................................... 30
Table 13: Investment Budget ...................................................................................................................... 34
Table 14: Sales Projections by Month Year 1 .......................................................................................... 35
Table 15: Revenues Monthly Break Ups - Year 2....................................................................................... 36
Table 16: Revenues Monthly Break Ups- Year 3........................................................................................ 36

Table 17: P&L Projections 5 Years .......................................................................................................... 37


Table 18: P&L Monthly Break Ups Year - 1 ................................................................................................ 38
Table 19: Cash Flow Projections 5 Years ................................................................................................ 40
Table 20: Cash Flow Projections by Month Year 1 .................................................................................. 40
Table 21: Projected Balance Sheet 5 Years ............................................................................................ 41
Table 22: Projected Balance Sheets by Month - Year 1 ............................................................................. 42
Table 23: Amortization Schedule ................................................................................................................ 43

Figure 1: Capital Utilization ........................................................................................................................... 8


Figure 2: Growth of Camping Equipment Sales in the U.S. ($ billions) ...................................................... 12
Figure 3: Growth of Fishing and Hunting Equipment in the U.S. ($ billions) .............................................. 13
Figure 4: Potential Growth of the U.S. Adventure Sports Equipment Market ($ billions) ........................... 16
Figure 5: Value Proposition ......................................................................................................................... 21
Figure 6: Operating Expenses for Year 1 ................................................................................................... 32
Figure 7: Salaries of Year 1 ........................................................................................................................ 32
Figure 8: Assets Purchased ........................................................................................................................ 33
Figure 9: Capital Utilization ......................................................................................................................... 34
Figure 10: Sales Projections Year 1 ........................................................................................................ 35
Figure 11: Sales Projection Years - 5 ......................................................................................................... 36
Figure 12: Profit and Loss Projections - 5 Years ........................................................................................ 38
Figure 13: P&L Projections by Month Year 1 ........................................................................................... 39

Executive Summary
There is prevalent tradition of hunting and camping in the United States and we want to
play our part in keeping this great tradition alive. Hill Country Outfitters is a startup
Limited Liability Company, located in Aberdeen, North Carolina, USA. The company is
strategizing to bring those interested in fishing, hunting and camping to a warm, inviting
and adventurous shopping experience. The business focuses primarily on offering a
varied array of hunting, fishing and camping equipment. The entity is seeking business
loan / SBA loan from the bank. The website www.hillcountryoutfitter.com is under
construction.
In America, hunting, fishing and camping outlets are growing tremendously in popularity
and Aberdeen is no exception. It is a thriving town of more than 7,000 residents and
hundreds of businesses. Downtown Aberdeen is a residential and commercial area that
is located adjacent to downtown Southern Pines. Nearly everything in this part of
Aberdeen and Southern Pines will be within a short driving distance. There are over
1500 residential units within a 5 minute driving distance of the location for the Hill
Country Outfitters that will provide us with considerable marketing opportunities and
maximize business profits. We believe the business will be profitable since many
individuals like shopping in mom and pop stores instead of larger national chain stores.
Our store offers a shopping alternative to customers who need to deal with business
that is local to a town, and where the owner of the business is established member of
the community.
After successfully going through the initial phase, the company is expected to share the
local market evenly with the local competition. Currently, there is a great demand for
hunting, fishing and camping retail store in the area. Conversations at the three most
popular hunting, fishing and camping supply retail stores by patrons indicate that many
would support a new and innovative hunting, fishing and camping type of retail store.
We believe this aspect will be of great benefit to our business. The product range which
we are offering under a single roof is difficult to spot elsewhere, which sets us apart
from our competitors. Our customers will always get their money's worth, unlike the
ones who pay huge amount for sub-standard products and get nothing but
disappointment in the end.
Hill Country Outfitters will offer shopping experience that will have something for all
members of the family to enjoy. The atmosphere provided will be that of a wholesome
family environment. We will ensure matching low prices with high quality products. We
will, in the future, look forward to providing a more realistic experience by eventually
providing an outdoor archery range with 3D targets.

We are dedicated to providing consistently high-quality specialty products and services


to wholesalers, retail distributors, and consumers as well as provide our patrons a
warm, inviting and exciting shopping experience like no other. Our product line will
include camouflage clothing, outerwear, archery supplies, bows, crossbows,
ammunition and gun maintenance products, as well as a selection of related safety and
convenience items. For anglers, we will offer fishing apparel, fresh and saltwater poles,
fly fishing poles, fishing line, reels and lures. Campers through our retail shop and the
website can buy tents, stoves, sleeping bags, pillows, and cooking gear. We know that
many hunters and anglers love the idea of having a cold drink while talking, and find the
idea of such a treat after a good day of fishing or hunting extremely appealing, so we
will offer them delicious comestibles.
Our focus would be more on target market that will include people aged 30-50 and with
median income level of $32,000. In 2011, the revenue generated by the U.S. fishing
equipment market was $6.1 billion1. On the other hand, the total earnings generated by
hunting equipment stood at $7.7 billion2, in the same year. By the year 2016, the total
sales of adventure sports equipment in the U.S. are expected to reach a volume of
$7.73 billion3.
Stephen Rivers is the owner and CEO of Hill Country Outfitters. He is a retiree from the
United States Army Special Operations Command. He has natural aptitude for
business, inherent leadership abilities, strong interpersonal skills and years of relevant
experience. These qualities will play a significant part in running the affairs of the entity.
Table 1: Summary of Financial Projections

Year-1

Financial Summary
Year-2
Year-3

Year-4

Year-5

Revenues

600,000

780,000

$ 1,014,000

$ 1,318,200

$ 1,713,660

Total Operating Expenses

61,805

123,740

168,101

183,932

201,382

Operating Profit

238,195

266,260

338,899

475,168

655,448

Tax @ 30%

71,459

79,878

101,670

142,551

196,634

Net Profit

166,737

186,382

237,230

332,618

458,814

We are looking for a loan of $72,000 that will be utilized towards initiating the
operations. Following is the chart of capital utilization

rd

US Census, accessed April 3 2013, http://www.census.gov/prod/2012pubs/fhw11-nat.pdf


rd
US Census, accessed April 3 2013, http://www.census.gov/prod/2012pubs/fhw11-nat.pdf
3
rd
Report linker, accessed April 3 2013, http://www.reportlinker.com/ci02221/Sporting-Goods.html
2

Figure 1: Capital Utilization

$10,000.00

$5,000.00

$17,000.00

$6,000.00

Capital equipment
Location/administration expenses
Opening inventory
Advertising/promotional expenses
Contingency fund

$12,000.00
Working capital
$30,000.00

Company Description
2.1. Company Overview:
Hill Country Outfitters is a startup venture, incorporated as Limited Liability Company
(LLC), located in Aberdeen, North Carolina, USA. The core competency of Hill Country
Outfitters is that, it offers a huge array of hunting, fishing and camping equipment. Along
with this, we also offer comestibles including cold refreshment. The website:
http://www.hillcountryoutfitter.com is currently under development. Stephen Rivers is the
owner of Hill Country Outfitters.
Downtown Aberdeen is a residential and commercial area that is located adjacent to
downtown Southern Pines. Nearly everything in this part of Aberdeen and Southern
Pines will be within a short driving distance. In fact, there are over 1500 residential units
within a fiveminute driving distance of the location for the Hill Country Outfitters store.
Aberdeen is a thriving town of more than 7,000 residents and hundreds of businesses.

2.2. Vision
Help people get closer to nature where everyone is involved in any sport or outdoor
recreation activity.

2.3. Mission
To work towards helping people in attaining physical fitness and mind relaxation by
offering wide range of high quality and innovative outdoor recreation equipments.

2.4. Challenges
Hill Country Outfitters will be encountering few core challenges, which include:

Intense competition
Competitive prices
Establish our name in the market
Obtain a market share amongst the competition remain competitive within the
fishing and hunting industry

Services Overview
3.1. Services:
Hill Country Outfitters offers huge array of hunting, fishing and camping
equipment/products to wholesalers, retail distributors, and consumers, especially those
residing in Aberdeen town.
Hunting
Hill Country Outfitters will provide a full line of hunting clothing and accessories for the
large hunting market in the area through our retail shop and website. Our product line
will include camouflage clothing, outerwear, archery supplies, bows, crossbows,
ammunition and gun maintenance products, as well as a selection of related safety and
convenience items. Examples of our product brand names include Browning, Bushnell,
Colt, Remington, Columbia, Bear, Bass Pro Shop, Duck Head, and more. When
authorized, the store will eventually buy and sell firearms.
Fishing
Hill Country Outfitters will provide both top-quality and economical products to anglers,
through our retail shop and website. Our product line will include fishing apparel, fresh
and saltwater poles, fly fishing poles, fishing line, reels and lures, as well as a selection
of miscellaneous tackle and convenience items. Examples of our product brand names
include R.L. Winston, Orvis, Duck Head, Bass Pro Shop, Columbia, Dr. Slick, Scientific
Anglers, Shimano, Shakespeare and more. We will also carry custom made fishing
lures that are hand crafted in the Asheville area.
Camping
Hill Country Outfitters offers top-notch quality products for campers through our retail
shop and website. Our product line will include items such as tents, stoves, sleeping
bags, pillows, and cooking gear, as well as some clothing. Brands that will be carried
include Duck Head, Bass Pro Shop, Columbia, Remington, Browning, Coleman and
more.
Comestibles
We will carry a number of comestibles, including cold refreshments. These products will
be available to patrons who either sit in the lounge area or take with them to go. We
have found that many hunters and anglers love the idea of a cold drink while talking,

and find the idea of such a treat after a good day of fishing or hunting extremely
appealing. We have also searched for, but never found, any other business like ours
offering the same service in a lounge environment.

3.2. Competitive Advantage


A one-stop buying solution for all outdoor recreation and adventure sports equipments
and accessories.

3.3. Benefits and Features:


These benefits and features will definitely add value to our products/services:

Environment friendly
Durable and long-lasting products
Affordable prices

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Marketing Plan
4.1.

Market Analysis:

4.1.1. Market Description


Target market for Hill Country Outfitters comprises different segments, as we are
dedicated to providing consistently high-quality products and service to wholesalers,
retail distributors, and consumers as well as provide our patrons a warm and inviting
shopping experience like no other.
This market continues to alter itself in the different product life cycle stages in
accordance with the marketing environment and economic scenario. However, the
hunting and camping industry is still in the growing stage.
Factors that may have influence on our business are seasonal demand, weather
conditions propensity to consume (among consumers) and government regulations
related to wild life and marine life safety.
4.1.2. Market Growth
Equipment used in outdoor recreation activities like camping, fishing and hunting has
shown growth in sales, in recent years, in the United States.
Figure 2: Growth of Camping Equipment Sales in the U.S. ($ billions)

1.59
1.6

1.44

1.5
1.4
1.3
2010

2011

Source: Outdoor foundation

The chart represents that in 2010, the total sales of camping equipment across the
country was $1.44 billion. Year 2011 proved to be a growth oriented one for this industry
and the increment observed was 10.41%, this raised the volume of sales to $1.59
billion.
4

rd

Outdoor foundation, accessed April 3 2013, http://www.outdoorfoundation.org/pdf/research.camping.2012.pdf

Figure 3: Growth of Fishing and Hunting Equipment in the U.S. ($ billions)

7.7
5.9

6.0

6.1

Fishing
Equipment

6
4

Hunting
Equipment

2
0
2006

2011

Source: US Census

In 2006, the revenue generated by fishing equipment market was $5.9 billion, which
grew by 3.38% to reach $6.1 billion in 2011. On the other hand, the total earnings
generated by hunting equipment stood at $6.0 billion in 2006, and increased in the next
5 years to reach $7.7 billion in 2011.
4.1.3. Market Gap
Tourism, hunting and camping play a big part in the U.S. economy. Considering the
fact that the number of people associated with the same have been increasing
exceptionally, which has increased the demand for companies offering hunting and
camping products and accessories across the United States.
Hill Country Outfitters will enter in this industry with its wide range of quality products to
meet the escalating demand for hunting, fishing, and camping products.
4.1.4. Target Market
Target market of our company includes people aged 30-50 with median income level of
$32,000. Target market also includes retailers and wholesalers, who deal in hunting and
fishing equipment.
Table 2: Target Market of Individual Customers in terms of Age, 2011

Age Group
20 to 24 years
25 to 34 years
35 to 44 years
45 to 54 years
55 to 59 years
60 to 64 years
65 to 74 years
5

Pinehurst village
193
645
1,329
1,358
901
1,679
2,480

Southern pines Town


519
1,247
1,434
1,419
640
923
1,314

Aberdeen town
290
896
766
723
273
433
670

rd

US Census, accessed April 3 2013, http://www.census.gov/prod/2012pubs/fhw11-nat.pdf

13

Source: Fact finder

Table 3: Target Market of Individual Customers in terms of Income, 2011

Income Group
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 to $199,999
$200,000 or more

Pinehurst
566
784
1,230
892
790
324
411

Southern Pines
500
705
764
516
531
182
271

Aberdeen
202
252
358
154
193
27
18

Source: Fact finder

For conventional retail channels, we would be targeting individual customers. This factor
will help us in remaining successful and profitable for a longer period of time. We are
almost covering the whole town and the nearby, surrounding areas. We are also
offering information for the track of other locations besides Aberdeen. This factor will
also help us, if we decide to expand our market at any point, in the future.
Table 4: Target Market 2010

Particulars
Sporting and recreational goods and supplies merchant wholesalers
Fishing, hunting and trapping Retailers
Recreational goods rental
Fitness and recreational sports centers

Firms
4,647
2,392
1,744
25,613

Source: U.S. Census

Our business to business target market comprises different segments, among which
retailers and wholesalers of outdoor recreation equipment would be the prime ones. The
focus of our online channel will be to target these segments through online medium.
Trends
Fishing and Hunting

Anglers in 2011spent $6.1 billion on fishing equipment such as rods, reels, tackle
boxes, depth finders, and artificial lures and flies9
The 2011 survey revealed that over 90 million U.S. residents above 16 years of
age participated in wildlife related recreation10
Almost 11.6 million hunters pursued big game such as deer and elk on 212
million days11
rd

Fact finder, accessed April 3 2013, http://factfinder2.census.gov


rd
Fact finder, accessed April 3 2013, http://factfinder2.census.gov
8
rd
US Census, accessed April 3 2013, http://www.census.gov/econ/susb/index.html
9
rd
US Census, accessed April 3 2013, http://www.census.gov/prod/2012pubs/fhw11-nat.pdf
10
rd
US Census, accessed April 3 2013, http://www.census.gov/prod/2012pubs/fhw11-nat.pdf
7

14

In the United States , the hunting activities consist of12:


Hunters
13.7 million
Big game
11.6 million
Small game
4.5 million
Migratory birds
2.6 million
Other animals
2.2 million

Camping

The top most growth rates of camping equipments in the US includes13:


Lifestyle/Travel Packs & Bags
18.41%
Tents & Shelters
13.70%
Coolers/Containers
14.25%
Technical Packs & Bags
10.89%
In 2011, there were slightly more new items (51 percent) purchased than
replacement items (49%) 14.
16% of 55 + age group members review new camping equipment via online
channel. 4% of 45-55 age group members review camping equipment online for
replacement15.

Target Market Profile of Individual Customers


Demographics
Age: Above 20
Social status: Middle and upper income
Needs:
To buy quality outdoor recreation equipment for different activities and purposes like
fishing, hunting and camping
Renting Decision Influencers:
Friends
Family
Place Preferences:
Online
Retail Outlet

11

rd

US Census, accessed April 3 2013, http://www.census.gov/prod/2012pubs/fhw11-nat.pdf


rd
US Census, accessed April 3 2013, http://www.census.gov/prod/2012pubs/fhw11-nat.pdf
13
rd
Outdoor foundation, accessed April 3 2013, http://www.outdoorfoundation.org/pdf/research.camping.2012.pdf
14
rd
Outdoor foundation, accessed April 3 2013, http://www.outdoorfoundation.org/pdf/research.camping.2012.pdf
15
rd
Outdoor foundation, accessed April 3 2013, http://www.outdoorfoundation.org/pdf/research.camping.2012.pdf
12

15

Preferred Media:
Sports Magazines
Radio
Social Networking sites
Target Market Profile of Wholesalers & Retailers
Demographics:
Corporate status: Retailers & wholesalers
Needs:
Online service, which can help them in buying quality adventure sports equipment at
reasonable rates with quick on time delivery
Place Preferences:
Online
Preferred Media:
Websites
Market places
4.1.5. Market Growth Forecast
Adventure sports are expected to be performed with more intensity in coming years
across the US. Forecasts for adventure sports equipment are motivating for investors.
Figure 4: Potential Growth of the U.S. Adventure Sports Equipment Market ($ billions)

7.73
7.00

8
7
6

2011

2016

16

Source: Report linker

By the year 2016, the total sales are expected to reach a volume of $7.73 billion. This
represents a growth of 10.42% as compared to 2011, when the income figure was $7 billion.
Therefore, in the five years duration, the expected CAGR will be 2.0%.

16

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Report linker, accessed April 3 2013, http://www.reportlinker.com/ci02221/Sporting-Goods.html

16

4.1.6. Regulations
The United States has several laws related to trading services, which may also directly
affect our business. Hill Country Outfitters will also be required to deal with certain
organizations and associations, such as North Carolina Wildlife Resources
Commission, North Carolina Division of Marine Fisheries and the U.S. Fish and Wildlife
Service. Regulations, which are applicable on offline and online businesses, are not
only comprehensive and strict but are also subjected to changes on a regular basis;
consumer rights are dealt by the Bureau of Consumer Protection. And e-commerce
issues are determined by the Federal Trade Commission (FTC).
Tax:
For the year 2013, corporate entities are required to pay income tax at following rates:
Table 5: Federal Corporate Tax Rates 2013

Taxable Income ($)


$0 to $50,000
$50,000 to $75,000
$75,000 to $100,000
$100,000 to $335,000
$335,000 to $10,000,000
$10,000,000 to $15,000,000
$15,000,000 to $18,333,333
$18,333,333 and Above
Source: Tax-rates

Tax Rate
15%
$7,500 + 25% Of the amount over 50,000
$13,750 + 34% Of the amount over 75,000
$22,250 + 39% Of the amount over 100,000
$113,900 + 34% Of the amount over 335,000
$3,400,000 + 35% Of the amount over 10,000,000
$5,150,000 + 38% Of the amount over $15,000,000
35%

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The state tax of North Carolina for the year 2013 over corporate entities is 6.9018.
4.1.7. Porters Five Force Model:
Rivalry among Competitors (Medium)
There is a severe competition in the hunting outfitting industry, but the product range
which we offer under one roof are not being offered by any other company in the United
States; therefore, the competition would be on a medium scale.
Bargaining Power of Customers (Medium)
Since the competition associated with our line of products is on a medium scale, the
customers have few options available in buying similar products. Therefore, the
bargaining power of the customers is also deemed as medium.

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Tax-rates, accessed on April 5 2013, http://www.tax-rates.org/north_carolina/corporate-income-tax


th
Tax-rates, accessed on April 5 2013, http://www.tax-rates.org/north_carolina/corporate-income-tax

17

Bargaining Power of Suppliers (Low)


This aspect is relatively in favor of our company. Suppliers are also in large numbers
and therefore, not much of the bargaining power is vested with them.
Threat of New Entrant
Entry Barriers (Low)
This factor is not very supportive for us, since not many restrictions are in place on
entering into this business. New entrants may easily enter this business and pose a
threat for us and may eat our market share and profit.
Exit Barriers (Low)
This factor may be deemed favorable for us. The companies are not restrained from
leaving the business and may exit.
Threat of Substitute Products (Low)
This factor is not very significant, since there is no chance of any new product entering
in this industry. However, there are already too many substitutes available in the
market. Tourists for instance can have camping, clothing and other accessories on rent.
4.1.8. SWOT Analysis
Strength
Competent Management
Hill Country Outfitters has a competent and effective team of management, operating
the company with all sorts of efficacy and competence.
Customer Friendly Charges
We are offering competitive charges, which are also very flexible. This way we may be
able to serve the wide range of customers.
Huge range of products
We are providing huge range of outfits, clothing, and accessories related to hunting,
fishing, camping, and comestibles for our customers.
Customized Products
Hill Country Outfitters is providing customized products to its customers, made
according to the customers demand.

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Weaknesses
Low Brand Recognition
Hill Country Outfitters is a new company and will need to encounter the problem of low
brand recognition. But with the passage of time, the entity will overcome this weakness
by implementing right and useful strategies.
Opportunities
Inviting a New Shopping Experience
Hill Country Outfitters offers new shopping experience for the customers. This will
provide us with an effective opportunity for us in the future.
High Tradition of Hunting and Camping In the U.S. the tradition of hunting and camping
is quite strong and this will offer a big opportunity for us in the future.
Threats
Extreme Weather
During extremely hot and cold weather, people generally tend to avoid hunting and
camping. This reduces the demand for buying hunting and camping clothing and
accessories, in such seasons.
4.1.9. Competitive Analysis
Dicks Sporting Goods
Dicks Sporting Goods was founded in 1948, is a well recognized full-line sporting goods
retailer, offering a broad assortment of brand name sporting equipment, apparel and
footwear as a specialty store. They own and operate Golf Galaxy, a golf specialty
retailer. They have e-commerce websites and catalog operations for both Dick's
Sporting Goods and Golf Galaxy. Dicks Sporting Goods would be in a severe
competition with our business since they offer and address the needs of adventure
sports lovers.

Sports Authority
Sports Authoritys customers are passionate about the sports they pursuethey want to
run faster, jump higher, hit the ball harder, carry their team to victory, and more. We
understand the passion that comes with being dedicated to a goal. Therefore, we offer
wide range of products and services; such as, Ski & Snowboard Services & Rentals,
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Bike Services, CO2 Refills, Racquet Stringing, Fishing Line winding, Skate Sharpening,
Golf Day Shop, Delivery & Assembly Services etc.
Gander Mountain
Gander Mountain is a retail network of stores for hunting, fishing, camping, marine, and
other outdoor recreation products and services. Gander Mountain offers a wide array of
sportswear for men, women, and children, camouflage and field wear, kayaks and
canoes. Moreover, it incorporates enormous product categories, include: Apparel,
Footwear, Firearms, Shooting, Hunting, Archery, Camping, Fishing, Boating, Auto &
ATV and Home & Gifts.
Table 6: Competitive Profile Matrix

Competitive Profile Matrix


W

HCO
Wd

DSG
Wd

Wd

Wd

Variety in Fishing, Hunting & Camping Equipments

0.22

0.88

0.66

0.66

0.66

Retail Stores Across U.S.

0.15

0.30

0.60

0.60

0.60

Customization Feature

0.18

0.72

0.54

0.54

0.54

Low Price Appeal

0.13

0.52

0.26

0.26

0.39

Customer Satisfaction

0.08

0.24

0.32

0.24

0.32

Market Share

0.08

0.16

0.24

0.24

0.24

Financial Stability

0.10

0.20

0.40

0.40

0.40

Brand name

0.06

0.12

0.18

0.18

0.24

Total

1.00

Key Success Factors

3.14
Major Strength
Minor Strength

SA

3.20

GM

3.12

3.39

Weight

Rating

Minor Weakness

Weighted

Major Weakness

Wd

Current Market Position


The competition is extremely tough for us and we would be required to make efficient
utilization of resources. The competitive position of our company as compared to our
rivals is not very much different. Therefore, we will strategize in a manner that could
allow us to capture and retain market share on long term basis.

20

4.2.

Marketing Strategy

4.2.1 Value Proposition


Figure 5: Value Proposition

Stylish,
Accurate

Light Weight

Wide Range

Value
Proposition

Online &
Offline

Innovative
Technology

Comfortable, accurate and innovatively designed and manufactured equipment, clothing


and accessories that allows you to fully enjoy your outdoor recreation activities.
4.2.2 Branding
An up-to-date online and offline retail store that offer wide range of outdoor recreation
equipments at an affordable price.

4.2.3 Marketing Strategy: Challenger


The reason to choose this particular marketing strategy is to cater to the needs of a
huge market in the U.S.; especially in North Carolina, where outdoor recreation
activities are growing and competition among companies providing related products is
also intense. There is an opportunity for us to cater to this gap and become one of the
leading suppliers of such equipment in the region. The owner has vast experience in
business administration and management, under tough business conditions. We
believe that we can fill the market gap, which exists in the market and is continuing to
grow with the increase in demand for adventure sports equipment.
4.2.4 Business Strategy: Analyzer
Hill Country Outfitters, in terms of providing different services to prestigious customers,
will continue to look for new opportunities. We look to establish ourselves nationwide,
with our full service adventure sports equipment, through both the online and offline
mediums. We have plans to expand ourselves both horizontally and vertically in
adventure sports. We will add new products related to other activities like hiking and will
also cater to different segments.
Our expansion phase will encompass high quality services delivered to adventure
sports associations and facilities.

4.3.

Marketing Mix Strategy

4.3.1 Product Strategy:


Our product strategy is to provide all possible options to our clients in order to facilitate
them at maximum level. Initially, the prime characteristic of our product strategy is to
offer wide range of hunting, fishing, camping equipment and accessories. All three
recreational activities will be on our top list, in terms of offering relevant products and
accessories. We, apart from improving the current standards, will also keep on offering
new products in the future. We, for this purpose, will constantly look for customers
feedback, as we will be in direct contact with them.
We will retail and wholesale all the renowned brands that are high in demand.

4.3.2 Pricing Strategy:


The pricing strategy adopted by our business will be competitive. We know that we are
catering to the needs of the market, which has not been reached by small and big
competitors. Therefore, in order to attract our price conscious customers, we will be

targeting them through competitive prices. However, pricing would not be the major
factor, in attracting and making them loyal to us.
Pricing Strategy Model:
Pricing Objectives
- Capture
Capture
Market
Market
Share
Share
Build
Loyal
Customers

Pricing Strategy
Determinants

High
Competition

Growing Market

Competitive

Customer
Bargaining
Power

Firm Characteristics
- Start up Business
-- Online & Offline Channels

4.3.3 Place Strategy:


In our place strategy, we will aim to cater to our clients through all possible mediums in
order to facilitate them at our best.

23

The place strategy would comprise both offline and online mediums. The company
would be directly serving its customers without involving any intermediary in offline
channel. In terms of online channel, we will be targeting wholesalers and retailers.
4.3.4 Promotion Strategy:
Hill Country Outfitters will use pull strategy to promote its products amongst the target
market. Pull strategy comprises both online and offline mediums.
Offline
Bill Board Advertisement
We will advertise our products through bill board advertisement, in which we will market
our products along with its ranges on different bill boards across North Carolina to
attract our target audience. This strategy will certainly increase the recognition of our
products amongst the customers.
Magazine Ads
Local newspapers, published in different parts of North Carolina will be used for
advertisement and promotion; especially the sports sections will be targeted in this
regard. This will help in catching the attention and attracting people of the state. We will
advertise in Southern zone edition of Sports Illustrated, which would help us to
concentrate on retailers and wholesalers of this region.
Kiosk Utilization
We will design and set up sufficient informative kiosks throughout North Carolina in
order to give thorough knowledge and information to the people regarding our product
range. This will certainly prove a useful medium for us.
Local Events
We will participate in different local events, specially arranged in Aberdeen and all
across North Carolina, in which we will promote our products in the general public.
Online
Social Media
Social media has now become an integral medium in promoting the products in the
general public and we will do the same for promoting our products.

24

Email
Email has now become one of the most widely used mediums in promoting the products
and services, and we will use the same to reach our target market.
4.3.5 First Year Advertising budget
Table 7: Billboard Advertising Rates in North Carolina

Specification
Two sides, once per minute

Circulation
Monthly Impressions: 810,000

Pricing
$7,200/year

Circulation
497,000/week

Pricing
$69,300

19

Source: Alamance billboard

Table 8: Sports Illustrated Advertising Rates

Specification
4-color
20

Source: Simediakit

Table 9: Outdoor Recreation Event Pricing

Specification
10x30 Booth

Pricing
$975

21

Source: Rite auctions

Table 10: Email Marketing Package

Email Addresses
10,001-25,000

Pricing
$150/month

Yearly Pricing
$150x12=$1800

22

Source: Constant contact

Table 11: Website Advertising Rates

Duration
4 months

Pricing
$550

Yearly Pricing
$550x3=$1650

23

Source: Bugon

19

Alamance billboard, accessed April 4, 2013, http://alamancebillboard.com/pricing.php


Simediakit, accessed April 4, 2013,
http://simediakit.com/files/SportsIllustratedMag/Sports%20Illustrated%202013%20Rate%20Card.pdf
21
Rite auctions, accessed April 4, 2013, http://www.all-riteauctions.com/vendors.asp
22
Constant contact, accessed April 4, 2013, http://www.constantcontact.com/pricing/email-marketing.jsp
23
Bugon, accessed April 4, 2013, http://www.bugon.com/marketing-packages.htm
20

25

4.3.6 Marketing Strategy Summary:

Marketing Strategy

Business Approach

Challenger

Analyzer

Product Strategy

Pricing Strategy

Flank Attack

Competitive

Place Strategy

Promotion Strategy

Zero Level Channels


One Level Channel

Pull

26

Operational Plan
5.1.

Personnel Plan

5.1.1 Stephen Rivers: Chief Executive Officer


Stephen Rivers is the owner and Chief Executive Officer of Hill Country Outfitters, a
local hunting, fishing and camping retail store. Mr. Rivers is pursuing Bachelors degree
in Business Administration from American Military University. Mr. Rivers is also a retiree
from the United States Army Special Operations Command after having served, 23
years honorably.
Job Responsibilities

Responsible for maintaining the vision, mission, and philosophy of the company
Oversees the retail business as a whole, maintaining the integrity of the
operations along with the marketing and sales through advisors and others on
the team
Manage all budgets, projections, and all statements necessary for tax filings
Prepares financial reports to help make business decisions
Manages all aspects of inventory and purchase orders
5.1.2 Tonia Rivers: General Manager

Tonia Rivers is the General Manager and sales representative for Hill Country
Outfitters. Tonia Rivers has 5 years of experience in the retail business, having worked
for and assisted her parents with their motorcycle accessory retail store (Hot Hog
Leather) in Fayetteville, N.C.
Job Responsibilities

Handle customers
Assist in product orders, delivery and inventory
Assist in daily accounting activities
Assist in preparing financial reports to help make business decisions
Assist in inventory and purchases

5.2.

Training

In-house training shall be continuous with regular external training being undertaken
particularly following any new developments in the market. This is so as to ensure that
we are continuously able to anticipate our markets needs. Internal training will not only
include product and technical aspects, but also expand to give much greater knowledge
of customers, market trends, products, new technology aids, and time management
amongst other such variables. Hill Country Outfitters intends to conduct health
education sessions for individuals on health risks in the workplace. Hill Country
Outfitters acknowledges the fact that successful recruiting, motivation and discipline
procedures are keys to the growth of the organization. Hence we intend to promote and
maintain good labor relations, strong morale and high quality work per employee.

5.3.

Feedback and Control

Hill Country Outfitters intends to use employee satisfaction surveys to help shape the
business, making sure that the employee understands the goals of the firm, is customer
focused, proud of their work and work as a team. This will encourage employees to
become entrepreneurial and customer responsible, in addition to unifying staff in
customer focus and values. Important notices and developments will be continuously
communicated to employees so as to keep them abreast of developments and
promoting a sense of belonging and oneness in the organization. Hill Country Outfitters
will encourage our employees to put forward any suggestions they might have regarding
the improvement of any of the company's functions. An open door policy will enhance
innovativeness and creativity in turn leading to job satisfaction and enrichment.

5.4.

Store Location

This landmark center draws from many surrounding counties, and has the highest traffic
count in the region of 36,000 vehicles per day. With major retailers such as the WalMart Supercenter, Lowes, Harris Teeter, Peebles, Staples and Pet smart within a mile
radius, this newly renovated center is in an ideal location to take advantage of this traffic
flow. The 162,000 square foot shopping center is strategically located just south of the
intersection of Route 1 and Route 15 - 501. With a former theater space (now Texas
Road House restaurant) and a variety of spaces available from 900 Square Feet to
11,000 Square Feet, the leasing agents are happy to discuss what competitive rates
and terms will work for the company.

28

5.5.

Personnel Plan

When Hill Country Outfitters reaches the point for expansion it shall have a continuous
evaluation for the jobs / positions it provides, paying competitive wages along with
benefit packages to employees for their agreed upon set of tasks. Consonant with its
efforts to create added value by employees, Hill Country Outfitters seeks to implement
an effective performance management system to effectively meet employer and
employee needs.
The company management system will revolve around communicating openly and
transparently by focusing on three factors:

Internal communication
External communication
Employee inclusivity

Hill Country Outfitters intends to compensate our personnel well, to retain their
invaluable expertise and to ensure job satisfaction and enrichment through delegation of
authority. Our compensation will include health care, generous profit sharing when
feasible, plus a minimum of two weeks vacation. As an equal opportunity employer, Hill
Country Outfitters respects the diversity and human rights of our people, and strive to
achieve optimal productivity, while realizing the full potential of each employee. An
awards system will be utilized and awards will be given out to outstanding individuals or
groups for hard work and production so as to instill a sense of fun into the work and
promote the maintenance of high standards. We intend to attract and retain people of
quality, through benefits such as health care, vacation time, bonuses and profit sharing.

5.6.

Risk Analysis:

Hill Country Outfitters provides hunting, fishing and camping equipment. There are
several systematic & nonsystematic risks involved in the area in which we are
operating. Following are some of the risk factors associated with our business:

29

Table 12: Risk Analysis

Risk

Risk
category

High Cost of
Finished Goods

Operational

Regulatory
Requirements in
the U.S.

Operational

Inventory
Management

Operational

Safety Issues

Operational

Customer
Retention

Operational

Resource
Maintenance

Operational

Risk Analysis Report Sheet


Level of Plan of action (corrective action or preventive action)
severity
(Low,
What
Medium, Priority Responsible
High)
Management would also be
required to ensure the
finished goods have sufficient
low cost, which helps in
High
High
Management
keeping the required profit
margins intact.
Transportation services cost
would be included in this
charge.
Regulatory requirements in
the U.S. can create problems
High
High
Management
for the company; hence, it is
extremely important to have a
close look over them.
Company has to manage
supply and demand factor
accordingly and this can only
Medium
High
Management
be achieved through strong
relationships with suppliers
and customers.
We would be required to
ensure extensive safety
arrangements for our
High
High
Management employees, in order to negate
any unpleasant incident;
which may cause harm, injury
or even fatality.
We should provide quality
products and services to our
High
High
Management
customer in order to retain
them for a long period of time.
We, in order to provide quality
services will be required to
maintain our physical
resources on a regular basis.
Low
Medium Management
Negligence may result in the
non-satisfaction of our clients
making it difficult for us to
retain them.

30

External Risk Factors


Legal risks
In the United States legal system is very comprehensive and there are many regulations
associated with business operations. To negate such risks, there should be a clear
understanding of these regulations. Policies should be made accordingly, which can
benefit business as well as predict any uncertainty.
Other risks
This includes natural disasters like flood, earthquakes, etc. We cannot predict or stop
such events; but we can ensure that our records are secured. Backup of clients data
should be in hand.

31

Financial Plan
6.1.

Assumptions

The company is expecting to have 6,000 customers a year from the year 1 which grows @ 30% each year
Each Customer is expected pay $100 on average
The Cost of Goods sold is 50%
Following is the yearly operating expenses of the company which grows @10% each year:
Figure 6: Operating Expenses for Year 1

Rent & Related Costs


Utility Expenses
Insurance

Operating Expenses
$15,000 Advertising/promotional expenses
$1,000 Location/administration expenses

$12,000
$17,000
$1,000

Salaries details are as follows:


Figure 7: Salaries of Year 1

Salaries

Year-1
$12,000

Salaries
Year-2
$70,000

Year-3
$110,000

Year-4
$121,000

Year-5
$133,100

The tax on operating income is 30%


Following are the assets purchased by the company on the start of the business:

32

Figure 8: Assets Purchased

Assets
Capital equipment

$5,000

The depreciation rate on fixed assets is 10%.


The Equity Capital investment by the owners is $8000
Company took a loan from bank @5% for 5 years.
The Inventory purchased by the company is $30000 in the business start.

33

6.2.

Start-Up Expenses:

Table 13: Investment Budget


Investment Budget
Capital equipment
Location/administration expenses
Opening inventory
Total Startup Expenses

Start-Ups
$5,000.00
$17,000.00
$30,000.00

Advertising/promotional expenses
Contingency fund
Working capital

Start-Ups
$12,000.00
$6,000.00
$10,000.00
$80,000.00

Figure 9: Capital Utilization

13%

Capital equipment

6%

8%

21%

15%

Location/administration expenses
Opening inventory
Advertising/promotional expenses

37%

Contingency fund
Working capital

34

6.3.

Sales Projections

Table 14: Sales Projections by Month Year 1

Average No. of customers


Payment per customer
Revenues

Month-1
432
$100
$43,200

Month-2
450
$100
$45,000

Month-3
462
$100
$46,200

Revenues Monthly Break Ups Year-1


Month-4 Month-5 Month-6 Month-7
480
492
480
504
$100
$100
$100
$100
$48,000
$49,200
$48,000
$50,400

Month-8
522
$100
$52,200

Month-9
534
$100
$53,400

Month-10
540
$100
$54,000

Month-11
558
$100
$55,800

Month-12
546
$100
$54,600

Figure 10: Sales Projections Year 1

$60,000
$50,000

$40,000
$30,000
$20,000
$10,000
$Month-1

Month-2

Month-3

Month-4

Month-5

Month-6

Month-7

Month-8

Month-9 Month-10 Month-11 Month-12

35

Table 15: Revenues Monthly Break Ups - Year 2

Average No. of customers


Payment per customer
Revenues

Month-1
561.6
$100
$56,160

Month-2
585
$100
$58,500

Month-3
600.6
$100
$60,060

Revenues Monthly Break Ups Year - 2


Month-4 Month-5 Month-6 Month-7
624
639.6
624
655.2
$100
$100
$100
$100
$62,400
$63,960
$62,400
$65,520

Month-8
678.6
$100
$67,860

Month-9
694.2
$100
$69,420

Month-10
702
$100
$70,200

Month-11
725.4
$100
$72,540

Month-12
709.8
$100
$70,980

Revenues Monthly Break Ups Year - 3


Month-4 Month-5 Month-6 Month-7
811.2
831.48
811.2
851.76
$100
$100
$100
$100
$81,120
$83,148
$81,120
$85,176

Month-8
882.18
$100
$88,218

Month-9
902.46
$100
$90,246

Month-10
912.6
$100
$91,260

Month-11
943.02
$100
$94,302

Month-12
922.74
$100
$92,274

Table 16: Revenues Monthly Break Ups- Year 3

Average No. of customers


Payment per customer
Revenues

Month-1
730.08
$100
$73,008

Month-2
760.5
$100
$76,050

Month-3
780.78
$100
$78,078

Figure 11: Sales Projection Years - 5

$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$Year-1

Year-2

Year-3

Year-4

Year-5

36

6.4.

Profit & Loss Projections

Table 17: P&L Projections 5 Years

Average No. of customers


Payment per customer
Revenues
Cost of goods sold
Gross Income
Salaries
Rent & Related Costs
Utility Expenses
Insurance
Advertising/promotional expenses
Interest
Location/administration expenses
Depreciation
Total Operating Expenses
Operating Profit
Tax @ 30%
Net Profit

Income Statement 5 Years


Year-1
Year-2
6,000
7,800
$100
$100
$600,000
$780,000
$300,000
$390,000
$300,000
$390,000
$12,000
$70,000
$15,000
$16,500
$1,000
$1,100
$1,000
$1,100
$12,000
$13,200
$3,305
$2,640
$17,000
$18,700
$500
$500
$61,805
$123,740
$238,195
$266,260
$71,459
$79,878
$166,737
$186,382

Year-3
10,140
$100
$1,014,000
$507,000
$507,000
$110,000
$18,150
$1,210
$1,210
$14,520
$1,941
$20,570
$500
$168,101
$338,899
$101,670
$237,230

Year-4
13,182
$100
$1,318,200
$659,100
$659,100
$121,000
$19,965
$1,331
$1,331
$15,972
$1,206
$22,627
$500
$183,932
$475,168
$142,551
$332,618

Year-5
17,137
$100
$1,713,660
$856,830
$856,830
$133,100
$21,962
$1,464
$1,464
$17,569
$433
$24,890
$500
$201,382
$655,448
$196,634
$458,814

37

Figure 12: Profit and Loss Projections - 5 Years

$500,000
$400,000
$300,000
$200,000
$100,000
$Year-1

Year-2

Year-3

Year-4

Year-5

Table 18: P&L Monthly Break Ups Year - 1


Average No. of customers
Payment per customer
Revenues
Cost of goods sold
Gross Income
Salaries
Rent & Related Costs
Utility Expenses
Insurance
Advertising/promotional
expenses
Interest
Location/administration
expenses
Depreciation
Total Operating Expenses
Operating Profit
Tax @ 30%
Net Profit

Month-1

Month-2

Month-3

Income Statement Monthly Break Ups Year-1


Month-4
Month-5
Month-6
Month-7

Month-8

Month-9

Month10

Month11

Month-12

432
$100
$43,200
$21,600
$21,600
$1,000
$1,250
$83
$83

450
$100
$45,000
$22,500
$22,500
$1,000
$1,250
$83
$83

462
$100
$46,200
$23,100
$23,100
$1,000
$1,250
$83
$83

480
$100
$48,000
$24,000
$24,000
$1,000
$1,250
$83
$83

492
$100
$49,200
$24,600
$24,600
$1,000
$1,250
$83
$83

480
$100
$48,000
$24,000
$24,000
$1,000
$1,250
$83
$83

504
$100
$50,400
$25,200
$25,200
$1,000
$1,250
$83
$83

522
$100
$52,200
$26,100
$26,100
$1,000
$1,250
$83
$83

534
$100
$53,400
$26,700
$26,700
$1,000
$1,250
$83
$83

540
$100
$54,000
$27,000
$27,000
$1,000
$1,250
$83
$83

558
$100
$55,800
$27,900
$27,900
$1,000
$1,250
$83
$83

546
$100
$54,600
$27,300
$27,300
$1,000
$1,250
$83
$83

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$300

$296

$291

$287

$282

$278

$273

$269

$264

$260

$255

$250

$1,417

$1,417

$1,417

$1,417

$1,417

$1,417

$1,417

$1,417

$1,417

$1,417

$1,417

$1,417

$5,133
$16,467

$5,129
$17,371

$5,124
$17,976

$5,120
$18,880

$5,116
$19,484

$5,111
$18,889

$5,107
$20,093

$5,102
$20,998

$5,098
$21,602

$5,093
$21,907

$5,088
$22,812

$16,467

$17,371

$17,976

$18,880

$19,484

$18,889

$20,093

$20,998

$21,602

$21,907

$22,812

$500
$5,584
$21,716
$71,459
$(49,742)

38

Figure 13: P&L Projections by Month Year 1

30,000
20,000
10,000
(10,000)

Month-1 Month-2 Month-3 Month-4 Month-5 Month-6 Month-7 Month-8 Month-9 Month-10 Month-11 Month-12

(20,000)
(30,000)
(40,000)
(50,000)
(60,000)

39

6.5.

Cash Flow Projections

Table 19: Cash Flow Projections 5 Years


Cash Flow Statement 5 Years
Year-1
Year-2
$166,737
$186,382
$500
$500
($30,000)
($5,000)
$137,237
$181,882
($5,000)
($5,000)
$0
$8,000
$72,000
($13,000)
($13,665)
$67,000
($13,665)
$199,237
$199,237
$367,454

Net Income
Add Depreciation
Inventory
Cash Flow from Operating activities
Capital equipment
Cash Flow from investing activities
Capital Invested
Bank Loan
Loan repayment
Cash Flow from Financing activities
Opening Cash Balance
Cash Ending Balance

Year-3
$237,230
$500
($5,000)
$232,730

Year-4
$332,618
$500
($5,000)
$328,118

Year-5
$458,814
$500
($5,000)
$454,314

$0

$0

$0

($14,364)
($14,364)
$367,454
$585,819

($15,099)
($15,099)
$585,819
$898,838

($15,872)
($15,872)
$898,838
$1,337,280

Table 20: Cash Flow Projections by Month Year 1

Cash Flow Statement Monthly Break Ups Year-1


Net Income
Add Depreciation
Inventory
Cash Flow from Operating activities
Capital equipment
Cash Flow from investing activities
Capital Invested
Bank Loan
Loan repayment
Cash Flow from Financing activities
Opening Cash Balance
Cash Ending Balance

Month-1
$16,467
$$(30,000)
$(13,533)
$(5,000)
$(5,000)
$8,000
$72,000
$(1,059)
$78,941
$60,408

Month-2
$17,371
$$(1,000)
$16,371

Month-3
$17,976
$$(2,000)
$15,976

Month-4
$18,880
$$(3,000)
$15,880

Month-5
$19,484
$$4,000
$23,484

Month-6
$18,889
$$2,000
$20,889

Month-7
$20,093
$$(1,000)
$19,093

Month-8
$20,998
$$(2,000)
$18,998

Month-9
$21,602
$$(3,000)
$18,602

Month-10
$21,907
$$4,000
$25,907

Month-11
$22,812
$$1,000
$23,812

Month-12
$(49,742)
$500
$1,000
$(48,242)

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$-

$(1,063)
$(1,063)
$60,408
$75,716

$(1,068)
$(1,068)
$75,716
$90,624

$(1,072)
$(1,072)
$90,624
$105,432

$(1,076)
$(1,076)
$105,432
$127,840

$(1,081)
$(1,081)
$127,840
$147,648

$(1,085)
$(1,085)
$147,648
$165,656

$(1,090)
$(1,090)
$165,656
$183,564

$(1,095)
$(1,095)
$183,564
$201,071

$(1,099)
$(1,099)
$201,071
$225,879

$(1,104)
$(1,104)
$225,879
$248,587

$(1,108)
$(1,108)
$248,587
$199,237

40

6.6.

Projected Balance Sheets

Table 21: Projected Balance Sheet 5 Years

Cash
Inventory
Current Assets
Capital equipment
Accumulated Depreciation
Fixed Assets
Total Assets
Current Liabilities
Bank Loan
Loan repayment
Long-Term Liabilities
Total Liabilities
Equity Capital
Accumulated Profits
Total Owner's Equity
Total Liabilities & Owner's Equity

Balance Sheet 5 Years


Year-1
Year-2
$199,237
$367,454
$30,000
$35,000
$229,237
$402,454
$5,000
$5,000
$(500)
$(1,000)
$4,500
$4,000
$233,737
$406,454
$$$72,000
$59,000
$(13,000)
$(13,665)
$59,000
$45,335
$59,000
$45,335
$8,000
$8,000
$166,737
$353,119
$174,737
$361,119
$233,737
$406,454

Year-3
$585,819
$40,000
$625,819
$5,000
$(1,500)
$3,500
$629,319
$$45,335
$(14,364)
$30,971
$30,971
$8,000
$590,349
$598,349
$629,319

Year-4
$898,838
$45,000
$943,838
$5,000
$(2,000)
$3,000
$946,838
$$30,971
$(15,099)
$15,872
$15,872
$8,000
$922,966
$930,966
$946,838

Year-5
$1,337,280
$50,000
$1,387,280
$5,000
$(2,500)
$2,500
$1,389,780
$$15,872
$(15,872)
$(0)
$(0)
$8,000
$1,381,780
$1,389,780
$1,389,780

41

Table 22: Projected Balance Sheets by Month - Year 1

Cash Flow Statement Monthly Break Ups Year-1 ($)


Month1

Month2

Month-3

Month4

Month5

Month6

Month7

Month-8

Month9

Month10

Month11

Month12

Cash

60,408

75,716

90,624

105,432

127,840

147,648

165,656

183,564

201,071

225,879

248,587

199,237

Inventory

30,000

31,000

33,000

36,000

32,000

30,000

31,000

33,000

36,000

32,000

31,000

30,000

Current Assets

90,408

106,716

123,624

141,432

159,840

177,648

196,656

216,564

237,071

257,879

279,587

229,237

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

(500)

Fixed Assets

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

4,500

Total Assets

95,408

111,716

128,624

146,432

164,840

182,648

201,656

221,564

242,071

262,879

284,587

233,737

72,000

70941.2

69878.13

68810.5

67738.54

66662.0

65581.0

64495.613

63405.61

62311.07

61211.97

60108.29

1058.72
8822

1063.14
0192

1067.569
943

1072.01
8151

1076.484
894

1080.97
0247

1085.47
429

1089.9971

1094.538
754

1099.099
332

1103.678
913

1108.277
575

Long-Term Liabilities

70,941

69,878

68,811

67,739

66,662

65,581

64,496

63,406

62,311

61,212

60,108

59,000

Total Liabilities

70,941

69,878

68,811

67,739

66,662

65,581

64,496

63,406

62,311

61,212

60,108

59,000

Equity Capital

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

Accumulated Profits

16,467

33,838

51,813

70,693

90,178

109,067

129,160

150,158

171,760

193,667

216,479

166,737

Total Owner's Equity

24,467

41,838

59,813

78,693

98,178

117,067

137,160

158,158

179,760

201,667

224,479

174,737

Total Liabilities &


Owner's Equity

95,408

111,716

128,624

146,432

164,840

182,648

201,656

221,564

242,071

262,879

284,587

233,737

Capital equipment
Accumulated
Depreciation

Current Liabilities
Bank Loan
Loan repayment

42

Table 23: Amortization Schedule


Payment #

Payment Date

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

4/1/2013
5/1/2013
6/1/2013
7/1/2013
8/1/2013
9/1/2013
10/1/2013
11/1/2013
12/1/2013
1/1/2014
2/1/2014
3/1/2014
4/1/2014
5/1/2014
6/1/2014
7/1/2014
8/1/2014
9/1/2014
10/1/2014
11/1/2014
12/1/2014
1/1/2015
2/1/2015
3/1/2015
4/1/2015
5/1/2015
6/1/2015
7/1/2015
8/1/2015
9/1/2015
10/1/2015
11/1/2015
12/1/2015
1/1/2016
2/1/2016

Beginning
Balance
$72,000.00
$70,941.27
$69,878.13
$68,810.56
$67,738.54
$66,662.06
$65,581.09
$64,495.61
$63,405.62
$62,311.08
$61,211.98
$60,108.30
$59,000.02
$57,887.13
$56,769.59
$55,647.41
$54,520.54
$53,388.98
$52,252.71
$51,111.70
$49,965.93
$48,815.40
$47,660.06
$46,499.92
$45,334.94
$44,165.11
$42,990.40
$41,810.80
$40,626.28
$39,436.83
$38,242.42
$37,043.03
$35,838.65
$34,629.25
$33,414.81

Scheduled
Payment
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73

Extra Payment
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Total Payment
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73

Principal
$1,058.73
$1,063.14
$1,067.57
$1,072.02
$1,076.48
$1,080.97
$1,085.47
$1,090.00
$1,094.54
$1,099.10
$1,103.68
$1,108.28
$1,112.90
$1,117.53
$1,122.19
$1,126.86
$1,131.56
$1,136.27
$1,141.01
$1,145.76
$1,150.54
$1,155.33
$1,160.15
$1,164.98
$1,169.83
$1,174.71
$1,179.60
$1,184.52
$1,189.45
$1,194.41
$1,199.39
$1,204.38
$1,209.40
$1,214.44
$1,219.50

Interest
$300.00
$295.59
$291.16
$286.71
$282.24
$277.76
$273.25
$268.73
$264.19
$259.63
$255.05
$250.45
$245.83
$241.20
$236.54
$231.86
$227.17
$222.45
$217.72
$212.97
$208.19
$203.40
$198.58
$193.75
$188.90
$184.02
$179.13
$174.21
$169.28
$164.32
$159.34
$154.35
$149.33
$144.29
$139.23

Ending Balance
$70,941.27
$69,878.13
$68,810.56
$67,738.54
$66,662.06
$65,581.09
$64,495.61
$63,405.62
$62,311.08
$61,211.98
$60,108.30
$59,000.02
$57,887.13
$56,769.59
$55,647.41
$54,520.54
$53,388.98
$52,252.71
$51,111.70
$49,965.93
$48,815.40
$47,660.06
$46,499.92
$45,334.94
$44,165.11
$42,990.40
$41,810.80
$40,626.28
$39,436.83
$38,242.42
$37,043.03
$35,838.65
$34,629.25
$33,414.81
$32,195.31

Cumulative
Interest
$300.00
$595.59
$886.75
$1,173.46
$1,455.70
$1,733.46
$2,006.72
$2,275.45
$2,539.64
$2,799.27
$3,054.32
$3,304.77
$3,550.60
$3,791.80
$4,028.34
$4,260.20
$4,487.37
$4,709.82
$4,927.54
$5,140.51
$5,348.70
$5,552.10
$5,750.68
$5,944.43
$6,133.33
$6,317.35
$6,496.48
$6,670.69
$6,839.96
$7,004.28
$7,163.63
$7,317.97
$7,467.30
$7,611.59
$7,750.82

43

Payment #

Payment Date

36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

3/1/2016
4/1/2016
5/1/2016
6/1/2016
7/1/2016
8/1/2016
9/1/2016
10/1/2016
11/1/2016
12/1/2016
1/1/2017
2/1/2017
3/1/2017
4/1/2017
5/1/2017
6/1/2017
7/1/2017
8/1/2017
9/1/2017
10/1/2017
11/1/2017
12/1/2017
1/1/2018
2/1/2018
3/1/2018

Beginning
Balance
$32,195.31
$30,970.73
$29,741.04
$28,506.23
$27,266.28
$26,021.16
$24,770.86
$23,515.34
$22,254.59
$20,988.59
$19,717.31
$18,440.74
$17,158.85
$15,871.61
$14,579.02
$13,281.03
$11,977.64
$10,668.82
$9,354.54
$8,034.79
$6,709.54
$5,378.77
$4,042.45
$2,700.57
$1,353.09

Scheduled
Payment
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73

Extra Payment
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Total Payment
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,358.73
$1,353.09

Principal
$1,224.58
$1,229.68
$1,234.81
$1,239.95
$1,245.12
$1,250.31
$1,255.52
$1,260.75
$1,266.00
$1,271.28
$1,276.57
$1,281.89
$1,287.23
$1,292.60
$1,297.98
$1,303.39
$1,308.82
$1,314.28
$1,319.75
$1,325.25
$1,330.77
$1,336.32
$1,341.89
$1,347.48
$1,347.45

Interest
$134.15
$129.04
$123.92
$118.78
$113.61
$108.42
$103.21
$97.98
$92.73
$87.45
$82.16
$76.84
$71.50
$66.13
$60.75
$55.34
$49.91
$44.45
$38.98
$33.48
$27.96
$22.41
$16.84
$11.25
$5.64

Ending Balance
$30,970.73
$29,741.04
$28,506.23
$27,266.28
$26,021.16
$24,770.86
$23,515.34
$22,254.59
$20,988.59
$19,717.31
$18,440.74
$17,158.85
$15,871.61
$14,579.02
$13,281.03
$11,977.64
$10,668.82
$9,354.54
$8,034.79
$6,709.54
$5,378.77
$4,042.45
$2,700.57
$1,353.09
$0.00

Cumulative
Interest
$7,884.96
$8,014.01
$8,137.93
$8,256.71
$8,370.32
$8,478.74
$8,581.95
$8,679.93
$8,772.66
$8,860.11
$8,942.26
$9,019.10
$9,090.60
$9,156.73
$9,217.47
$9,272.81
$9,322.72
$9,367.17
$9,406.15
$9,439.63
$9,467.58
$9,490.00
$9,506.84
$9,518.09
$9,523.73

44