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Business Plan

A Bun In The Oven Clothing Company

Fashionable Mid-Term Maternity Wear

…and More!

Matt Cranston Julie Letendre Kristin Rathaus Tomas Rose Denice Wagner

not too cluttered. Second. and women who are 7 to 9 months pregnant can probably fit into traditional maternity wear with an “expandable panel” on pants. Some items we offer will be able to be used even beyond the maternity period. In addition. and professional-dress and pampers. We will also provide links to other websites who provide advice throughout the duration of the pregnancy. proportions and clothing choices. However. we will form alliances with other clothing e-tailers that do not offer maternity clothes. we will send a supply of “$5 off your purchase of $25 or more at abunintheoven. We plan to promote our company in several different ways. First. and our ability to fill that void is what makes A Bun in the Oven Clothing Company unique. but with flare and pizzazz to entice a deeper dive into the site. scarves and accessories. We will offer casual. Some of its features will include a chat room for expectant mothers to share stories and ideas. a simulated model with changeable hair. and skirts. such as landsend. 2 . pregnant women have a difficult time finding clothes to fit in months 2 through 7. Pregnant women are faced with a unique challenge in finding stylish clothes that provide a good fit. shorts. we will buy advertising on various parenting websites such as babycenter. and a shopping and llbean. Women who are 1 to 2 months pregnant can probably still fit in their “pre-pregnancy” clothes. STRATEGY We will achieve our primary purpose by offering high quality maternity clothes at a good price to our customers. We will achieve profitability by keeping sales volumes high and fixed overhead low.PRIMARY PURPOSE The purpose of A Bun in the Oven Clothing Company is to meet or exceed our financial goals by selling maternity clothes over the Internet. such as sweater sets. Our website will be inviting to the” flyers to OBGYNs so that they can be distributed to expectant mothers. business casual. we will sell larger sweaters and sundresses that may also be worn beyond the woman’s pregnancy.

Each member holds a 20% share. Our primary source of revenue will be the sale of our clothes and accessories. We will attempt to develop a contract with a manufacturer of clothing for another company such as Lands End in order to keep costs down by using some of their excess capacity. and related workers involved with purchasing products/services Responsibilities Set marketing policies and direct Internet sales activities Responsibilities Plan. We will feature real-time online customer support 24 hours a day. working women in households earning $30. although this will be kept to a minimum so as not to “clutter” the site. process orders. and coordinate activities of buyers.S. direct. They will also warehouse the merchandise and accept and process returns. Census data). Technology Matt Cranston Vice President Merchandising Julie Letendre Vice President Sales & Marketing Denice Wagner Vice President Finance Kristin Rathaus Responsibilities Plan. We will also generate revenue by selling advertising space on our website. Expenses will include the following: • Marketing/Direct Mail Expenses • Website Hosting Fees • Website Development • Hardware and Software for Employees • Salary and Benefits for Employees • Cost to Purchase and Warehouse Merchandise We will have another company produce the clothes. and coordinate all activities related to Internet communications and corporate public relations Responsibilities Provide technology design and support by converting project specifications into logical useful website Responsibilities Plan. there will continue to be a huge market for our apparel. We will hire employees to work out of their homes and work in shifts to provide customer support. and ship clothes. and if that trend continues. Because they will work out of their homes. Organizational Chart Vice President Communications Tomas Rose Vice President Info. A Bun in the Oven Clothing Company has an impressive group of people running the company. An estimated 20 million babies were born in 2001 (according to U.000 to $80.000 per year. direct. direct. We will provide each of our employees with a computer.SUPPORT Our target market is pregnant. we will have minimal office expense. and coordinate all financial business activities 3 .

Develop a business plan.”. Develop alliances with other pregnancy.and child-related e-businesses such as babycenter. 6. FINANCIALS A copy of our Balance Sheet. 2. and returns will go back to that vendor. PROCESS In order to successfully build our e-business. 4. Hire customer service personnel. Closely monitor the number of visitor hits on the site to make a forecast of our market potential. 11. Develop a logo for clothing labels and Select a web hosting company. 3. 5. Items will be shipped out from our selected vendor. All transactions will be performed via our website.BUSINESS MODEL The model we will use is a Business-to-Consumer model. Develop alliances with other online clothing companies that do not offer maternity apparel such as landsend. 7. Design a website. Select manufacturers/negotiate contracts. and Start-Up Costs follows: 4 . and 8. Develop marketing piece to mail out to OBGYNs. Customers will need to go online to print a return authorization form to include with their return. llbean. etc. 10. the following steps need to occur (not necessarily in this order): 1. Projected Income Obtain financing. This will enable the management of A Bun in the Oven Clothing Company to identify problems or trends and act on them as quickly as possible. Register domain name “abunintheoven. 9. 12.

00 $ $ $ $175.A Bun In The Oven Clothing Company Balance Sheet 1-Mar-02 (Unaudited) ASSETS CURRENT Cash Accounts receivable Inventory (Note 1) Due from shareholders CAPITAL ASSETS (Note 2) INTANGIBLES (Note 3) DUE FROM SHAREHOLDERS Total LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT Accounts payable (Note 4) Income taxes payable Management fees payable (Note 5) Current portion of long term debt Bonuses payable LONG TERM DEBT (Note 6) SHAREHOLDERS’ EQUITY Total $250.000.00 5 .00 $ $ $ 50.000.00 $175.00 $ $475.000.000.00 $ $475.000.000.00 $ $ $250.

00 $ $ $1.075.00 $ 84. These are our start-up equipment costs.800.000.00 $ $ 19.00 $ 2.00 3.628.000.00 $ 25.000.150. We have no building.569.727.00 $ 50.601.00 $1.00 $ 720.431.000.000.00 $ 975.425.500.000.30 $ 352.00 $ 557.000.00 $ 2.575. property.00 $ 52.70 $ 677.00 $2.00 $ 19.00 $ $ $1.00 1.70 Note 1 Note 2 Inventory is non-existent because we subcontract out our manufacturing and warehousing.850.00 March.375.00 $ 58. 2004 $3.00 $2.211.00 $ $ $ $ $ $ $ $ 666.350. 2007 $ $ $ $ 2.500.250.00 Expenses Salaries and wages (Note 7) Hardware and software Printing.372.240.00 $ 105. 2005 March.000.00 $ $ $ 960.00 $ 529.000. These were the signing bonuses required to be paid to the top management for their experience and knowledge (goodwill) in e-business.00 $ 203.010. mailings Server Hosting Domain Name Insurance Interest Long term debt (Note 6) Total expenses $ 530.00 $ 20.00 $ $2.50 $ 246.00 $ 950.000.000.450.829.00 $ 75.50 $ 158.694.500.00 $ $ 586. Note 3 Note 4 Note 5 6 . or manufacturing equipment.00 $2.00 $ 900.650.50 $ 461.00 772. Intangible assets primarily include goodwill.000.00 $ 688.500.30 $ 323.00 $ 925.250. 2006 March.925.000.000.A Bun In The Oven Clothing Company Projected Income Statement 1-Mar-02 (Unaudited) March. 61.00 $ 678.000. Our capital assets are our start-up equipment.000.50 $ 370.00 $ 17.697.00 25.00 $ 25.419.00 16.347. 2003 Sales (Note8) Cost of goods sold Opening inventory (Note 1) (Closing inventory) (Note 1) Gross Profit $3.581.000.900.474.528.600.00 $ $ $ $ $1.00 $ 25.00 March.000.60 $ 474.750.000. This goodwill represents the un-amortized balance of the excess of the acquisition cost over market value of identifiable net assets acquired at the date of acquisition.00 $ 657.040.000.577.00 $ 55.00 Income before Taxes Income Taxes 30% Net Income $ 281.00 $ 138.100.00 $3.00 $ 616.40 $ 197.00 $ $ 2.000.

000.000.000 each 1 Fashion Designer @ $30. Note 8 Sales revenue is achieved through clothing sales to the consumer.00 $ 2. envelopes.000 each Total $250. We also hired a fashion designer at 30K/year for 12 months prior.33 $ 30.00 $ 50.000.00 $250.000 required to get started at 8% annual interest compounded monthly. Description of expense Wages for 5 Vice-Presidents at 50K/year for 3 months Wages for 10 Customer Assistants at 25K/year for 1 month Wages for Fashion Designer at 30K/year for 12 months Web page design Computers for 10 Customer Assistants Letterhead.833.00 $530.500. We anticipate 40.500. We rounded up the startup costs from $240k to $250K to cover any unforeseen expenses.00.000 each 10 Customer Assistants @ $25.00 $ 30.00 $ 900.33 7 .00 Everyone receives 5% raises each year thereafter.00 $ 25.000. etc Server hosting costs Domain Name Liability insurance Total startup costs Costs $ 62. to get some designs together so our website could be assembled and we could get subcontractor pricing for our clothes to be manufactured. but the Customer Assistants were hired at the time we went online with our e-business.00 $241.Note 6 Note 7 Bank loan of $ We knew that we would not receive any revenue for a period of 2-3 month as we got things setup.00 $ 19.000 orders the first year with the average order value of $75. Salaries 5 Vice-Presidents @ $ $ 50. We needed financing to cover our startup costs. The Vice-Presidents' wages were paid during this entire time.00 $ 20. A Bun In The Oven Clothing Company Start-Up Costs 1-Mar-02 (Unaudited) We went to the bank with a concept and an idea.