With the merger of Kadmus, Homer & Company and Delphi/Ouroboros, Building Blocks is a cooperative comprised of members who are entrepreneur-retailers. Building Blocks is committed to empowering the independent retailer by setting industry and market standards with their niche businesses and unique brand of creative marketing, wide product assortment, award winning merchandising and technology, and quality training and business expertise. Building Blocks’ buying power of more than $2.5 billion annually helps pass on benefits to independent members.
Building Blocks has been a world leader in the hardware industry in product selection and customer service for do-it-yourselfers since 1948.
Vision To be the best-in-class provider of products and solution choices that drive our members’ and our co-op’s profitability. Mission To provide: Choices of retail and commercial solutions to drive members’ sales and profits Assortments to support the solutions Operational excellence in the delivery of products and solutions
Building Blocks has a wealth of experience and know-how on opening new hardware stores, with 6,567 stores worldwide. Building Blocks has become a leader in determining what factors make a hardware retailer successful.
Building Blocks currently uses a service called Yorikle. This service is used to define the demographics and the expenditure potential of new markets. For Hisarlik Hardware , the report was run on a one-, two-, and three-mile radius around the proposed location. The report showed an exceptional amount of business (only reporting households, the study does not include property managers, businesses, or commuters), especially considering that there is no direct competition in the area. The reports also get very specific as far as what the potential market is for hardware overall as well as specific categories within a store. There are also numbers reports for the expected growth in the area over the next five years.
Building Blocks supplies professional design services to maximize merchandisable space and traffic flow. Services include fixture plans, interior signage and decor, merchandising plans, lighting, basic site plans, and exterior storefront elevations. These plans are custom developed for each location and each store’s footprint. The associated costs are included in the start-up costs.
A unique plan will be done for the proposed site for Hisarlik Hardware . This process will begin as soon as the lease for the property is signed.
Building Blocks provides a variety of support to all current members as well as prospects seeking to join the co-op. The support comes to members in the form of retail consultants, knowledge, profit building programs, retail automation, training, advertising & promotion, a national brand, buying power, semi-annual markets, and an operations and distribution network.
Retail Consultant
Every member and prospect is assigned a retail consultant who works with them on an ongoing basis. There is also a retail operations specialist who helps prospects open new stores. There are regional marketing staff that are available as well as individual Building Blocks staff for individual marketing programs.
All specialists share their wealth of personal knowledge as well as having access to Building Blocks’ cumulative knowledge and experience. Building Blocks has made this model work since 1948. It works very well and enables members to be very successful business people and has made Building Blocks the largest retail hardware co-operative in North America.
Proven Profit Building
Building Blocks makes available a large number of programs that entrepreneurs can choose to participate in. They include retail pricing systems, electronic order entry systems, commercial and industrial sales, category specific planograms, and direct mail circulars, just to name a few.
Building Blocks leads the industry in automating their stores. Building Blocks has brought their stores into the future with the automation which is made available to members. This is a strength of Building Blocks and a service that is available to all of their members. This automation helps the members in many different ways including inventory control, ordering, sales, and accounts receivable, all tied together in one system called Delian .
Experienced technical support personnel work with members to ensure current retail automation capabilities are compatible with Building Blocks’ existing system. Building Blocks’ existing system is Delian, an industry leading software program based on Triad Eagle for Windows platform. Delian is an easy-to-use, easy-to-learn tool that contains up-to-the-minute ordering and inventory accuracy, point of sale, accounts receivable, and much more. It contains all the daily business tools needed to manage Hisarlik Hardware .
There are five core programs for new store owners which make up the initial training. They are:
When a member opens a The Tool Room Rentals business there is also required training that applies only to The Tool Room Rentals . There is also a wide range of do-it-yourself programs that are on CD-ROM and video.
Building Blocks’ marketing programs are second to none in the industry. They include every tool needed to be successful in the retail hardware business. They include Power Events, interior and exterior signage, online programs, and custom circulars.
Every member store is assigned a field marketing manager. The marketing manager makes the members aware of the marketing tools available and how best to use them.
There are marketing strategy programs, programs that increase traffic, increase transactions, and those that merely build the brand. All are made available, and it is the savvy member who uses the right programs and spend their advertising dollars best. Based on the marketing experience Hisarlik Hardware has, this is a strength most start-up businesses do not possess.
For over 40 years, the name Building Blocks has stood for trust, service and fair prices. Building Blocks’ brand positioning statement is “ Building Blocks is the best place to get just what you need to complete home repair and maintenance projects quickly and easily.” It is a name with heritage and integrity. Consistent national media and the fact that Building Blocks is the largest co-op of independent hardware store owners, has established Building Blocks as a recognizable name in retail hardware.
The bottom line is people know that the Building Blocks name means hardware. That is an asset new businesses work for years to establish.
An independent hardware store cannot compete in the current market, without a co-op behind them. A Building Blocks member has the benefit of $2.5 billion in buying power which is passed on in savings and profits. That makes Building Blocks the largest co-op of its kind in North America.
This is the main factor in making sure all Building Blocks members are getting products at the best possible prices to enable them to maximize profits.
Building Blocks holds semi-annual markets where members can buy products and plan purchases for the upcoming seasons. Markets are held in March (Fall/Winter) and October (Spring/Summer). Members are informed of new items and trends in the industry at these markets enabling them to make good purchasing decisions. There are also programs which allow members to make purchasing commitments at large cash savings.
Building Blocks has established a network of strategically placed distribution centers throughout the United States to assure timely deliveries regardless of where the store is located. Trucks deliver at least once per week and twice if necessary. This is a huge benefit, because this process allows excess inventory to sit in the distribution center as opposed to the store shelves. Over 64,000 items can be purchased on a per piece basis enabling stores to get whatever quantity is needed at any time.
Troy Enterprises, Inc. is a privately-held S corporation, currently 100% owned by its founder and president, Hector Priamson and his wife Andromache Eetion. The company will be operating under the name of Hisarlik Hardware. There are expected to be investors in the new venture. Individual investors will own no more than 15% of Troy Enterprises, Inc. These investors will provide investment in the way of seed cash to help start the business and none of the investors will be active participants in any management decisions.
Troy Enterprises, Inc. founder and president is Hector Priamson. Hector is a resident of Ilion. He is married to Andromache Eetion who is currently a realtor with Ahhiyawa, Hatti & Company.
Hector will spend 100% of his time on this new start-up venture. Hector has a wealth of experience in business. He started his career straight out of college with a very exclusive “Big Eight” Accounting firm. While with Manapa Tarhunda and Co. Hector earned his CPA license. His interests led him to Wilusa, where he became involved in one of the city’s unique industries, Samothracing. He started on the accounting side of the racing business and soon broke out into the part of the business that generates the revenue, sponsorship sales.
His career led him to Trireme Racing Group where he served as the Vice President of Business Operations. He led the turn-around of this team and company solidifying major sponsorships with companies like Corinthian Leather, Medusa-Gorgon Oars, and Posidon Libations. He served in that position from 1996 through 2001. During that period of time, Hector also served on the CURRAGH Franchise Board (rules making board of the sanctioning body). His reputation and success led him to the top marketing position, Vice President of Sales and Marketing. Hector served in that capacity from December of 2001 through July of 2003, at which time he left the company to pursue his current business, Troy Enterprises, Inc.
Hector’s expertise in the entrepreneurial business of oarsports will be invaluable in his new venture. He has a keen sense of finance, marketing, management of inventory, accounting and bookkeeping practices, and staff management. This experience will be invaluable in leading Troy Enterprises and making sound business decisions in the future.
Hector’s resume, as Confidential and Proprietary information, has been omitted from this sample business plan.
When Hisarlik Hardware began this project the key component was the location. Hector Priamson/Troy Enterprises and Building Blocks felt several criteria were crucial to making this venture a success. The ideal size was determined to be between 7,500 and 10,000 sq.ft. The price per square foot was important because the economics obviously had to work. Adequate parking and easy access were must-have criteria while searching for locations. A location with only street parking was not considered an alternative. Being located on a major thoroughfare with visibility is important to get the store recognized as a solution for hardware. Adequate signage that traffic can recognize is key. Additionally, intangibles such as other commercial neighbors and the neighborhood makeup were considered.
Based on these criteria, a site at 310 East Anglia Street is was selected. It is part of the Troas Marketplace.
This property shares a parking lot with Scamander’s Food Market and Buckbasket Cleaners which is the most important of the intangible factors. This Scamander’s generates $12.0 million in revenue and is Scamander’s most successful store in Wilusa. Scamander’s is the only grocery store in the downtown area, and is an icon in the downtown residential community. In discussions with Scamander’s, they said the Troas store has much more traffic than their other locations. They have found the average customer visits the Troas store every two days versus once a week for the others. Hisarlik feels this is a huge advantage for its venture as this will drive more traffic, more often to the Troas parking lot. Scamander’s is in the middle of its lease for this property and seems pleased with the results. Hisarlik does not anticipate this advantage changing by a move by Scamander’s, whose lease extends through the year five.
The proposed site has plenty of parking spots and excellent access from eastbound Anglia Street and northbound Mercia Blvd.
Signage marquees sit on both streets as well as on the north, west, and south sides of 310 East Anglia Street. Furthermore, the location is perfectly set on eastbound Anglia Street, which is one of the major thoroughfares. There is a driveway entrance and exit to Anglia Street.
The proposed site is ideal in size measuring 9,509 sq. ft. and was formerly an Osco Drug store that was closed as Osco downsized their Wilusa operations. According to the landlord, the closing of this location by Osco had nothing to do with the location, but rather, a change in priority within the company. The property needs very little in tenant improvements in order to be open for business. The terms of the lease are currently being negotiated. It is anticipated that Hisarlik Hardware will retain the property within the budgeted guidelines. There were many properties that were investigated; however, for the stated reasons this is the best option as of last November.
The neighborhood has gone through major renovation over the past 10 years. It is now a rejuvenated upscale neighborhood. There is also major new development around the proposed site. There is a brand new condominium development directly across East Anglia Street. The development is called Lemnos Square.
There are three other new condominium developments under construction that are one block away. They are Troas Terrace, The Anatolia, and The Konya.
The proposed location is one block from the successful Wessex Avenue District. Wilusa has done a fantastic job in bringing in new business and culture into this area of downtown.
According to Wilusa Downtown Inc., Downtown has seen record demand and occupancy levels, driving the surge of residential development. This has led to more than 615 new residential units currently in the pipeline.
The city of Wilusa is also reviewing plans for the former Cressida Agora site. The plans all include a large number of residential and retail sites on the 29 acre site. This site is located 2 blocks south of the proposed location.
Development downtown is happening in many different ways. There is commercial, residential, as well as government development currently in process or planned. All of these things add to the desirable nature of the proposed site. We would be “right in the middle of it.”
Hisarlik Hardware will offer traditional retail hardware. These products include electrical supplies, automotive, hardware, housewares, lawn and garden, building supplies, paint, plumbing, tools and rental. There are other small services that will be offered including key cutting, glass cutting, and other small repairs.
Hisarlik will work with Building Blocks to develop the right product mix. The initial order of inventory will take into account the fact that this is an urban store and the product mix may contain different items than a suburban store. Hisarlik Hardware will rely on Building Blocks’ expertise, knowledge, and their IAIS inventory management program in developing this initial order.
Hisarlik Hardware will stock traditional retail hardware items. The product mix will be changed slightly from suburban stores. The history of the store will then be used along with IAIS to develop the right product mix that takes advantage of the available square footage and maximizes profits.
Hisarlik Hardware will open a The Tool Room Rentals store within the hardware store. This is a program that will help cash flow as well as increase sales of rental accessories and support items.
Hisarlik will also have key cutting, glass cutting, and other small services like screen repairs.
IAIS stands for Inventory Always In Stock. This is a program that was developed by Building Blocks based on feedback from their members. The members were looking for assistance in managing their departments and knowing what is selling and what is not.
This program has the following benefits to members who take part in it:
Building Blocks delivers to member stores IAIS merchandising guides, assortment guides, and recommends what inventory to carry and what not to carry.
This is an invaluable tool for a new member because the new store can rely on the history of current stores to help in their merchandising.
Hisarlik Hardware will once again rely on Building Blocks to deliver the correct pricing for the market. As discussed earlier, low cost is not one of the main factors for customers to shop at a convenient hardware store location. Hisarlik will continue to work with Building Blocks to charge the right price to maximize profits.
Hisarlik Hardware will listen to its customers to understand what other needs are not being met. Those needs could include additional store locations in the future and an expansion of products and services offered at the current location. There may be other businesses that can be offshoots of retail hardware that help service or provide convenience to Hisarlik customers.
The Market Analysis looks at potential customers and potential business. Hisarlik Hardware explored the market segments, their needs, and did a marketing analysis.
The need for this venture was looked at first. Does downtown need a hardware store? The answer was a resounding yes.
Once the need was established, Hisarlik needed to analyze the make up of its customers, who and how many. Who is the potential customer? How many potential customers are there?
Once it was determined that there was a need and who the customer is, the next step was to figure out how to make them Hisarlik Hardware customers. How to get the potential customer in the store?
There are six major market segments:
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Downtown Residents | 0% | 450,000 | 450,000 | 450,000 | 450,000 | 450,000 | 0.00% |
Property Managers | 0% | 297,000 | 297,000 | 297,000 | 297,000 | 297,000 | 0.00% |
Contractors | 0% | 255,000 | 255,000 | 255,000 | 255,000 | 255,000 | 0.00% |
Downtown Businesses | 0% | 180,000 | 180,000 | 180,000 | 180,000 | 180,000 | 0.00% |
Suburban Commuters | 0% | 110,000 | 110,000 | 110,000 | 110,000 | 110,000 | 0.00% |
Commercial Sales | 0% | 38,930 | 38,930 | 38,930 | 38,930 | 38,930 | 0.00% |
Total | 0.00% | 1,330,930 | 1,330,930 | 1,330,930 | 1,330,930 | 1,330,930 | 0.00% |
Each market segment is unique and requires different marketing to attract them.
Downtown residents have already expressed the need for a local hardware store, as is documented in the April 2003 issue of Wilusa Magazine . Residents recognize the need and will be supportive of a retailer answering their concerns. The data that has been supplied to Hisarlik Hardware (by Yorikle, a market research firm used by Building Blocks ) shows there is a population of nearly 53,000 people and more than 20,000 households within two miles of the proposed location. The analysis provided by Yorikle states the area could support a 19,000 sq. ft. store. We are proposing a 9,500 sq. ft. store. In other words, there is enough business in this area to support a store twice the proposed size. The report has also found there is more than $2.5 million of potential sales revenue, based on the number of households alone (not including any of the other segments). The potential is expected to grow to more than $3.0 million by 2007.
Hisarlik Hardware believes the key to the need analysis is that all of the research and potential was measured by households, and households only. The households only make up one segment of the potential business the store expects to generate.
When Hector Priamson initially looked at the hardware business, one of the most important factors was the fact this industry seems to be immune to significant fluctuations in the economy. Based on information from the US Department of Commerce, the home improvement retailing industry has consistently grown at a rate of 7% for the past decade and similar growth is expected for the foreseeable future.
In the 1990’s the growth in the industry was attributable to strong home sales, economic prosperity, and significant amounts of home renovation. Since 2000, growth has stayed at the same levels even though some of these factors have changed. Growth since the year 2000 was attributable to low interest rates and refinancing. According to the Federal Reserve Board, 35% of all refinancing goes to home improvement.
What does the future hold? 93% of all Americans plan to stay in their current homes and 78% of homeowners plan to undertake home improvement projects in the next year. How much will they spend? 69% of homeowners plan to spend as much or more in the coming year than they did last year. Home improvement budgets have grown 31% since the year 2000.
Hisarlik Hardware is being encouraged by Building Blocks to enter the equipment and party rental business upon opening the store. Based on conversations with other members, the rental component has been an overwhelming success adding to cash flow of the business as well as increasing traffic to the store. Reports of success unanimously talk about the fact that “renters” need tools and accessories to go with the rental equipment adding to the overall profitability of the store.
In the downtown market, the make-up of the rental inventory will vary a bit from what a suburban store might have. Hisarlik Hardware will work with the Building Blocks Rental people to determine the inventory. Hisarlik will rely on the knowledge and expertise of Building Blocks.
An investmentm is required upon opening for the initial purchase of the equipment to rent. Building Blocks has the necessary training and computer support to make this a very logical addition to the traditional hardware store.
The “Big Boxes”, such as Lowe’s, Menard’s, and Home Depot have had a significant effect on the Home Improvement industry. According to the National Retail Hardware Association, based in Wilusa, the Big Boxes have expanded the market, increasing consumer participation in home improvement. However, the National Retail Hardware Association feels that the Big Boxes are nearing a saturation point, and in the future, they cannot open many more stores without it affecting and threatening other current Big Box locations.
“This competition has not kept independent hardware stores, home centers, and lumberyards from prospering. These stores are much more professionally operated than they were just a decade ago, and most posted strong profits last year.” —NRHA, 2004 Market Measure
Independent Hardware stores need to focus on their strengths.
Service. 88% of consumers have a favorable opinion of small business vs. 61% for big business (the lowest since 1993).
Convenience. Consumers want to get everything they need in one trip to the store. The Independent hardware stores are able to do this, because they work with their customers.
“There are four ways to compete
But price is only one of them.” —M. Chandler, a retail industry consultant
There is no immediate local competition. The nearest hardware store is 1.8 miles away on South Hasan Dag Avenue. The store is a small, 4,000 sq. ft., and isn’t current in its products or presentation.
Because of the lack of product and poor shopping presentation, residents do not consider this an option for hardware. The next closest hardware store is 2.7 miles away. There are several stores that are 3 to 4 miles from the proposed site. Studies say customers do not want to travel more than 3-7 minutes to a location. While these stores could serve the need, their location does not make them a viable option to downtown residents because of distance and neighborhoods.
The “Big Box” stores such as Lowe’s, Home Depot, and Menard’s are built to serve suburban Wilusa. The closest Lowe’s is 12.5 miles and 17 minutes west of Hisarlik Hardware’s proposed location. The nearest Home Depot is 10.5 miles or 16 minutes west of Hisarlik . Menard’s is 9.3 miles and 14 minutes east of the location. There are no stores that are convenient to the downtown market. To get to any of these, customers must plan on spending 30-40 minutes of driving roundtrip at a minimum before even walking into the store. Hisarlik Hardware will be a 2-3 mile drive or 5-10 minutes maximum travel to the store. This convenience will be a major selling point for the business.
From discussions between Hisarlik Hardware and the parent company of Building Blocks , regarding the possibility of a “Big Box” store opening in the downtown area, it seems unlikely due to the size of the potential market, cost, and lack of real estate, to build such a structure in Arazawa Township.
An analysis of competitors in the equipment and party rental field is similar to that of the hardware industry. There is one competitor that is southeast of downtown, 1.5 miles from the proposed location. The company, Best Rentals, Inc., handles equipment and party rentals.
Tent rental has one competitor that is downtown. An factor in tent rental may be the clean new equipment and, once again, great service available from Hisarlik . American Tent and Awning is located 1.8 miles from the proposed location. One advantage for Hisarlik in tent/party rental is that a customer can cover more bases with the variety of equipment and supplies from a rental and hardware store versus a company that focuses solely on tent rental.
The closest tool rental company is 2.3 miles from the proposed location. Hisarlik Hardware feels that significant progress can be made into the tool rental business because of convenience. Hisarlik expects to be a fantastic solution for contractors working downtown who need equipment for the day or for the project. Residents downtown have smaller homes and condominiums, consequently they do not have room to own bulky or large quantities of equipment. This is expected to be a benefit for the rental business.
Emphasize Customer Service
Hisarlik Hardware will build a reputation of fantastic customer service, building upon what Building Blocks stores and the Building Blocks brand have already established. We will establish our business, by offering a clear cut leader in retail hardware in downtown Wilusa.
Build a Relationship-Oriented Business
Fantastic service will lead to long term loyal relationships with our customers and clients. The goal is to have our customer base become reliant on Hisarlik to stock items and have solutions for their needs. The customers will soon understand the value of the relationship.
Focus on Target Markets
Hisarlik will focus on the market segments identified earlier in this document. Each of the market segments will have sales initiatives to focus on each group.
Differentiate and Fulfill the Promise
Hisarlik Hardware can’t just market and sell products and services, we must actually deliver as well. We need to make sure we have the knowledge-intensive business and service-intensive business we claim to have. This service has to be consistent and deliver what the customer is looking for.
The Building Blocks Power Events are advertising programs supported by national advertising during peak buying periods for planned home care products. Power Events focus on those high traffic times of the year with a multimedia campaign. A strong mix of national television and radio advertising, circulars, Sunday supplements, and POP sign kits deliver a sense of urgency to visit the store. A small 8-page and large 12-page circular are available for each Power Event to help carry the theme and promote the sale. There are four Power Events each year.
Hisarlik Hardware will also place ads in the Yellow Pages. The Yellow Pages continue to be a source of a good number of customers.
Hisarlik Hardware will also rely on the media to help spread the word about this new business downtown. Fox Television’s local morning TV show goes on location to promote local businesses. Radio can be used in many different ways, radio remotes for the opening of the store. Wilusa Magazine has already identified an issue, a follow up story is very appropriate. The Wilusa Star covers new and significant businesses in Wilusa, Hisarlik feels this store will fit that description.
Every person is a potential customer of a hardware store. Hisarlik Hardware will carry items everyone needs. The average household spends $135 per year on items found in a hardware store according to Yorikle, a research firm retained by Building Blocks . The key to getting the potential customer to spend their $135 or more in Hisarlik Hardware are include the following attributes:
All of these attributes will be present in Hisarlik Hardware. In order to be convenient, Hisarlik will have to adapt to its environment, the location will be key to making it easy for customers to get to the store. The store must also be open when the customers arrive. In addition, a delivery service will be available to make it easier for regular customers to not have to leave what they are doing to get the products they need. There will also be accounts set up to make it easier for regular customers to get items, without having to deal with petty cash, company credit cards, or company checks for each visit to the store.
Customers expect to get great service at Building Blocks Hardware stores, which is evidenced by the fact 50% of all hardware shoppers will avoid the “Big Box” retailers and opt instead for the personal service like Hisarlik Hardware . We will also need to be reliable, which means that customers will depend on us to inventory what they need and understand and anticipate their needs. Customers want to come into a hardware store having the confidence they will find what they need. The store will possess a knowledgeable and friendly staff. The staff has to understand and interpret what the customer needs and find the product that will fit that need. Hisarlik Hardware will also be progressive, by that we mean we will continue to evolve and understand what the customer needs and develop new markets where the need exists.
Hisarlik Hardware will be offering a convenient solution which all downtown residents need. Customers will be introduced to Hisarlik through targeted advertising, direct mail, signage, and word of mouth. Hisarlik will also take advantage of all the Building Blocks programs that help create loyalty and awareness among the potential customers in the market.
The direct sales force will consist of two seasoned sales people led by Hector Priamson. The focus will be on property managers and all downtown businesses to create an awareness of the store location and the fact that the store is a potential solution for retail hardware needs.
Glaucus Sarpedon will also work on the commercial accounts and government accounts located in the downtown market.
The sales projections start in the month of March, 2004. Sales steadily increase along with the awareness of the store through September. In September, there is a small dip in sales then a steady rise through the Christmas season and December the stores best month of the year. There is a traditional slow season that runs through January and February each year. The goal of Hisarlik Hardware will be to develop programs that take as much slack out of the sales as possible and get them in line with the rest of the sales year.
Sales are estimated by Building Blocks to be $125 to $175 per square foot of the total area of the store. The Gross Margin will range from 40% to 45%. There is a 25% growth predicted for the second year of sales driven by awareness, growth in rentals and growth in commercial sales.
The immediate goal is to achieve robust sales in the first year. It is thought that double digit percentage total sales increases can be achieved and maintained throughout the five years of this business plan.
Sales Forecast | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Sales | |||||
Monthly Net Sales | $1,410,502 | $1,757,402 | $2,108,883 | $2,214,327 | $2,325,043 |
Rental | $38,930 | $50,609 | $65,792 | $85,529 | $111,188 |
Other | $27,471 | $32,965 | $39,558 | $43,514 | $47,865 |
Total Sales | $1,476,903 | $1,840,977 | $2,214,233 | $2,343,370 | $2,484,097 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Cost of Goods Sold | $818,091 | $1,019,293 | $1,223,152 | $1,284,310 | $1,348,525 |
Other | $0 | $0 | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $818,091 | $1,019,293 | $1,223,152 | $1,284,310 | $1,348,525 |
Building Blocks has loyalty programs like Building Blocks Rewards that Hisarlik Hardware will participate in. This program has been developed to build a loyal following of customers that use the card for shopping benefits.
By the second year accounts will be set up for businesses, property managers, and contractors to make shopping easy for them. This program will allow these customers to shop and make it easy for them to pay for items on account. This program will have to be managed very carefully, and Hector Priamson’s financial background will prove to be very useful in managing these accounts.
Hisarlik Hardware has already contacted Scamander’s Food Market and have the word of the General Store Manager that they would be interested in developing programs to work together with Hisarlik for the betterment of both businesses. Both will stand to benefit from each other.
Hisarlik True Value has worked with True Value to establish a realistic time line to work within to have the store open for business in March of 2004. The time line is listed in the Milestones table below.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Research Feasibility | 9/1/2003 | 11/15/2003 | $0 | Hector Priamson | Department |
Prepare Business Plan | 10/15/2003 | 12/1/2003 | $500 | Hector Priamson | Department |
Secure Financing | 11/15/2003 | 12/15/2003 | $0 | Hector Priamson | Department |
Finalize the Lease | 12/15/2003 | 12/15/2003 | $0 | Hector Priamson | Department |
Sign Building Blocks Member Agreement | 12/15/2003 | 1/15/2004 | $6,000 | Hector Priamson | Department |
Start Work on Interior of Proposed Site | 12/15/2003 | 2/1/2004 | $4,000 | Hector Priamson | Department |
Review Fixture Layout Plan | 12/20/2003 | 1/15/2004 | $0 | Hector Priamson | Department |
Order Exterior Signage | 12/22/2003 | 1/15/2004 | $25,000 | Hector Priamson | Department |
Order Fixtures | 12/23/2003 | 12/23/2003 | $50,000 | Hector Priamson | Department |
Begin Interviewing and Hiring Employees | 1/15/2004 | 3/1/2004 | $0 | Hector Priamson | Department |
Initial Merchandise Order is Placed | 1/5/2004 | 1/15/2004 | $0 | Hector Priamson | Department |
Leasehold Improvements Complete | 1/15/2004 | 2/1/2004 | $0 | Hector Priamson | Department |
Order Interior Signage | 1/15/2004 | 2/1/2004 | $7,500 | Hector Priamson | Department |
Fixtures Arrive | 1/25/2004 | 2/1/2004 | $0 | Hector Priamson | Department |
Merchandise Arrives | 2/5/2004 | 2/15/2004 | $0 | Hector Priamson | Department |
Merchandisers Set Up Store | 2/10/2004 | 2/25/2004 | $0 | Hector Priamson | Department |
Exterior Signage Installed | 2/10/2004 | 2/15/2004 | $0 | Hector Priamson | Department |
Run Local Advertising | 3/1/2004 | 3/15/2004 | $0 | Hector Priamson | Department |
Open Informally | 3/10/2004 | 3/14/2004 | $0 | Hector Priamson | Department |
Grand Opening | 3/14/2004 | 3/15/2004 | $0 | Hector Priamson | Department |
Totals | $93,000 |
The competitive edge has been covered throughout this document. Location is the biggest key to this business. There are no true competitors in our business in downtown Wilusa. Our future customers have had to work harder to get the same or lesser service less conveniently. We will be in their back yard and be easy to work with and have products they need.
Hisarlik Hardware have staff that understand customer service and how to treat customers so that they want to shop in the Hisarlik Hardware environment.
Obviously, we are in the age of computers and the Internet. Customers are ultimately looking for the simplest, most reliable, and least consuming way to get the goods and services they need.
Therefore, a Web strategy is important to keep up with the changing world and stay ahead of potential competition. Customers that buy on the Internet do not care where a business is located, so it is important that a name and a reputation be established that customers can rely on whether it is in the store or on the Internet.
Building Blocks has a sensational program for their members. It allows a member to establish their own website with member information and use the established product background linked to buildingblockshardware.com. Customers can then go on line and order products very easily. This is a program that a normal small business could not afford to invest in.
The Internet is also a valuable communication tool with customers. The site includes a custom home page, store location along with a map, store hours, services and selection, in-store coupons, 1,000 item in-store catalog, and as many custom pages as a member needs.
Hisarlik Hardware will be managed by Hector Priamson on a day-to-day basis. He will devote 100% of his time to this venture. There are two key employees joining Hector in this venture, Penthesilea Thracian and Glaucus Sarpedon.
Hisarlik expects that there will be up to 17 employees in total, some full time and others part time.
Hisarlik Hardware will be managed, organized, and run by Hector Priamson. The company will have three key employees, Hector, Penthesilea (Penthe) Thracian, and Glaucus (Glus) Sarpedon. These three all know each other very well, Penthe and Glus having worked for Hector in the past in the oarsports industry. They bring a unique set of skills to this venture which will prove invaluable in the future.
The company will be organized with Hector Priamson as its president. He will be responsible for all of the financial affairs, inventory management, cash management, manage the cashier staff, advertising, marketing, as well as the day-to-day contact with Building Blocks . Hector will also have relationships with attorneys and accountants to stay on top of all business matters. Additionally, he will also manage the day-to-day operation of the rental business. While this seems like a lot, these are routine tasks Hector has performed for many different companies for many years. As good as Hector is, he can’t do it all. He will rely on two former employees from his.
Penthesilea Thracian has been in the oarsports business for the better part of 30 years. She is looking for a change and Hisarlik Hardware is just what she had in mind. Penthe has managed teams, and developed and run programs from the ground up. Her experience led her to winning the 1981 Salamis 500 as the crew chief of Al Cibiades’ trireme at Dardanelles Racing. Working with large companies and manufacturers that wanted absolute accountability in their programs, Penthe was the gal that was brought in to handle it. Over the past 5 years, she has added another unique skill that will nicely complement her mechanical skills; hospitality. Penthe managed the hospitality program for Corinth Racing. That job really entailed looking after people and providing great service, a skill that will be invaluable for Hisarlik Hardware .
Glaucus Sarpedon is an extremely driven young man who graduated from Hattusili University. Glus decided he wanted to work in oarsports. When he put his mind to it, that is exactly where he ended up. He joined Dardanelles Racing where he worked in the hospitality area, also gaining the valuable service quality that will be necessary for this new role. He also had the responsibility of moving, setting up, and servicing the complete hospitality fleet. He has mechanical skills that he will bring with him as well. Glus also filled the role of Team Coordinator, this role is the “quarterback” of the organization. He was responsible for anticipating what the team was going to need, when they would need it, and how much they would need. Glus will be a huge asset to the company.
Each of these folks have departments that will be assigned to them and a staff that will help them manage the departments. They will be responsible for hiring the staff that will report directly to them. Hisarlik Hardware will also develop an incentive plan rewarding successful departments and department sales growth. The experience and trust Hector Priamson has in these two individuals will allow him to focus on managing the business.
A review of potential gaps in the experience or know-how of this venture does not show any glaring weaknesses. Hisarlik Hardware ‘s Achilles heel is the lack of actual hardware store business experience. While the three key individuals do not have that direct experience, they will draw heavily upon the instruction, training, and specialist support available from the Building Blocks co-op organization. Building Blocks is in the business of passing on their experience and knowledge to assist their members to be be successful.
The personnel plan was developed in conjunction with Building Blocks and some consulting with the folks at Konya Building Blocks Hardware in Catalhoyuk.
The plan was developed so there are at least 2 managers, 1 cashier, and 2 specialists on duty at all times. The average number of people working at any one time is between 5.5 and 7.1 on busy Saturdays. All employees will have the ability and knowledge to run the cash registers.
Hector Priamson, Penthesilea Thracian and Glaucus Sarpedon will start with base pay as laid out in the following table. The cashiers will be paid $7-$8 per hour. Full-time specialist staff will be paid between $9 and $10 per hour. Other part-time help will be paid $6 per hour.
It is felt there is a pool of retired “handy men” that can fill many of these roles. The $6 per hour employees are thought to be high school or college kids.
Employee hiring will start in January, training will begin in February and work in March.
Personnel Plan | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
President (Hector Priamson) | $55,000 | $60,000 | $65,000 | $70,000 | $75,000 |
General Manager (Penthesilea Thracian) | $40,000 | $45,000 | $50,000 | $55,000 | $55,000 |
Asst. Gen. Manager (Glaucus Serpadon) | $35,000 | $40,000 | $45,000 | $45,000 | $45,000 |
Cashiers | $27,876 | $28,852 | $29,861 | $30,907 | $31,988 |
Specialists | $90,348 | $99,383 | $109,321 | $113,147 | $117,107 |
Other | $0 | $0 | $0 | $0 | $0 |
Total People | 17 | 20 | 20 | 21 | 21 |
Total Payroll | $248,224 | $273,234 | $299,183 | $314,054 | $324,096 |
The business will need substantial start-up capital. It is expected that a good portion of that amount will be secured through SBA financing.
Sales are expected to start conservatively the first year and increase steadily through the fifth year of operations. Operating income will pay back the start-up loan over a seven year amortization.
Inventory Turnover ratios are predicted to be in excess of 4.3. The goal will be to get this ratio to exceed 5.0. To do that Hisarlik will be required to purchase smartly and drive sales.
Cash will be retained in the business to cover cash operating needs as well as future expansion of other Hisarlik Hardware locations.
It is expected that dividends will be paid to the investors annually. The amount of the dividends is estimated to be 50% of profits.
After the first year of operations, it is expected that Hector Priamson will be able to trim expenses in the business as efficiency, experience, and knowledge work together and help the business operate better. Estimates are extremely conservative in the budgeting process.
Hector Priamson will invest cash, benefits and labor to the start up.
Troy Enterprises is in the process of negotiating with potential investors for the seed cash needed to start the business. It is expected that a tidy sum will be raised to start the business. It is expected that no more than 15% interest will be given to each investor.
Bank Financing
Troy Enterprises is submitting business plans and other requested documents to financial institutions in pursuit of the additional money needed to finance the rest of the company and provide operating cash for the business. It is expected that the loan will be a part of the SBA 7(a) program. It is assumed that the terms of the loan will require repayment in 7 years, at a rate of 8%.
Start-up Funding | |
Start-up Expenses to Fund | $83,332 |
Start-up Assets to Fund | $716,668 |
Total Funding Required | $800,000 |
Assets | |
Non-cash Assets from Start-up | $620,504 |
Cash Requirements from Start-up | $96,164 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $96,164 |
Total Assets | $716,668 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $625,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $625,000 |
Capital | |
Planned Investment | |
Hector Priamson | $50,000 |
Investor 1 | $75,000 |
Investor 2 | $50,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $175,000 |
Loss at Start-up (Start-up Expenses) | ($83,332) |
Total Capital | $91,668 |
Total Capital and Liabilities | $716,668 |
Total Funding | $800,000 |
The table below presents the assumptions used in the financial calculations of this business plan.
General Assumptions | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Plan Month | 1 | 2 | 3 | 4 | 5 |
Current Interest Rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
Long-term Interest Rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 | 0 | 0 |
As shown in the Benchmarks chart below, our key financial indicators are:
The Break-even Analysis has determined approximate break-even sales as shown below. There will be a constant monitor on this number in an attempt to lower it. Once again, it is believed that efficiencies, experience, and knowledge will help in decreasing the break-even number.
Sales are expected to be well in excess of this number for each month.
Break-even Analysis | |
Monthly Revenue Break-even | $102,932 |
Assumptions: | |
Average Percent Variable Cost | 55% |
Estimated Monthly Fixed Cost | $45,915 |
The Profit and Loss statement makes it very clear which areas will need attention. Payroll is by far the largest expense the company incurs (besides cost of goods sold). Staff will need to be managed and hours regulated so that hours worked correlate to sales. Emphasis will be placed on minimizing expenses that do not help generate bottom line.
The company generates a profit as sales revenue gets above the break-even line. A push on sales will be very important in generating bottom line profits. Interest expense is also a large line item that diminishes over time, but is a necessary expense on the front end of the business.
Pro Forma Profit and Loss | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Sales | $1,476,903 | $1,840,977 | $2,214,233 | $2,343,370 | $2,484,097 |
Direct Cost of Sales | $818,091 | $1,019,293 | $1,223,152 | $1,284,310 | $1,348,525 |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 |
Total Cost of Sales | $818,091 | $1,019,293 | $1,223,152 | $1,284,310 | $1,348,525 |
Gross Margin | $658,812 | $821,683 | $991,081 | $1,059,061 | $1,135,572 |
Gross Margin % | 44.61% | 44.63% | 44.76% | 45.19% | 45.71% |
Expenses | |||||
Payroll | $248,224 | $273,234 | $299,183 | $314,054 | $324,096 |
Account Name | $0 | $0 | $0 | $0 | $0 |
Depreciation | $48,021 | $48,021 | $48,021 | $48,021 | $48,021 |
Advertising Expense-Circulars | $15,136 | $18,867 | $22,693 | $24,016 | $25,458 |
Advertising Expense-Newspapers | $3,397 | $4,234 | $5,093 | $5,390 | $5,713 |
Advertising Expense-Yellow Pages | $2,604 | $2,604 | $2,604 | $2,604 | $2,604 |
Advertising Expense-National | $7,680 | $9,573 | $11,514 | $12,186 | $12,917 |
Lease | $114,638 | $125,424 | $134,933 | $144,442 | $153,951 |
Utilities | $9,000 | $9,250 | $9,500 | $9,750 | $10,000 |
Telephone | $4,431 | $5,523 | $6,643 | $7,030 | $7,452 |
Accounting and Legal | $6,384 | $7,661 | $9,193 | $11,032 | $13,238 |
Store and Office Supplies | $14,769 | $18,410 | $18,821 | $19,919 | $21,115 |
Insurance | $10,032 | $10,338 | $10,648 | $10,967 | $11,296 |
Delivery Vehicle Expense | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
Payroll Taxes | $22,321 | $24,591 | $26,926 | $28,265 | $29,169 |
Employee Benefits | $16,428 | $18,071 | $19,426 | $20,883 | $22,449 |
State Property Tax Expense | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Travel | $2,871 | $3,000 | $3,200 | $3,500 | $4,000 |
Other | $16,548 | $17,052 | $18,600 | $20,400 | $21,600 |
Total Operating Expenses | $550,984 | $604,353 | $655,497 | $690,957 | $721,579 |
Profit Before Interest and Taxes | $107,828 | $217,330 | $335,584 | $368,104 | $413,992 |
EBITDA | $155,849 | $265,351 | $383,605 | $416,125 | $462,013 |
Interest Expense | $47,148 | $41,783 | $35,771 | $29,260 | $22,208 |
Taxes Incurred | $18,204 | $52,664 | $89,944 | $101,653 | $117,535 |
Other Income | |||||
Interest Income | $0 | $0 | $0 | $0 | $0 |
Other Income Account Name | $0 | $0 | $0 | $0 | $0 |
Total Other Income | $0 | $0 | $0 | $0 | $0 |
Other Expense | |||||
Account Name | $0 | $0 | $0 | $0 | $0 |
Other Expense Account Name | $0 | $0 | $0 | $0 | $0 |
Total Other Expense | $0 | $0 | $0 | $0 | $0 |
Net Other Income | $0 | $0 | $0 | $0 | $0 |
Net Profit | $42,476 | $122,883 | $209,869 | $237,191 | $274,249 |
Net Profit/Sales | 2.88% | 6.67% | 9.48% | 10.12% | 11.04% |
The company generates a net positive cash flow in its first year. It is assumed that Accounts Payable will be repaid in 45 days. Repayment of debt is a significant factor in the amount of cash that gets paid out. Long-term debt is on a 7-year amortization.
Dividends are paid in December of each year. The assumption is that 50% of profits are paid out to shareholders and investors.
Pro Forma Cash Flow | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Cash Received | |||||
Cash from Operations | |||||
Cash Sales | $1,476,903 | $1,840,977 | $2,214,233 | $2,343,370 | $2,484,097 |
Subtotal Cash from Operations | $1,476,903 | $1,840,977 | $2,214,233 | $2,343,370 | $2,484,097 |
Additional Cash Received | |||||
Non Operating (Other) Income | $0 | $0 | $0 | $0 | $0 |
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 | $0 | $0 |
Subtotal Cash Received | $1,476,903 | $1,840,977 | $2,214,233 | $2,343,370 | $2,484,097 |
Expenditures | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Expenditures from Operations | |||||
Cash Spending | $248,224 | $273,234 | $299,183 | $314,054 | $324,096 |
Bill Payments | $998,841 | $1,351,063 | $1,682,641 | $1,761,830 | $1,851,152 |
Subtotal Spent on Operations | $1,247,065 | $1,624,298 | $1,981,824 | $2,075,884 | $2,175,248 |
Additional Cash Spent | |||||
Non Operating (Other) Expense | $0 | $0 | $0 | $0 | $0 |
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $66,629 | $72,159 | $78,148 | $84,634 | $91,659 |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 |
Dividends | $21,311 | $61,442 | $104,935 | $118,596 | $137,125 |
Subtotal Cash Spent | $1,335,005 | $1,757,898 | $2,164,906 | $2,279,113 | $2,404,032 |
Net Cash Flow | $141,898 | $83,078 | $49,327 | $64,257 | $80,065 |
Cash Balance | $238,062 | $321,140 | $370,467 | $434,724 | $514,789 |
The balance sheet is very straight forward. No significant purchases of assets are expected or anticipated.
Using Building Blocks’ IAIS, online ordering, and weekly delivery systems allows Hisarlik Hardware to restock inventory in a just-in-time fashion. Inventory levels will be maintained with re-orders tied to Cost of Goods Sold. Additional inventory purchases will be made one month prior to participation in the quarterly Building Blocks nationally advertised Power Event sales. The first Power Event coincides with Hisarlik Hardware’s Grand Opening. Inventory will be allowed to drop somewhat at the end of December, after the Holiday purchasing, and for year-end tax accounting purposes.
There is a possibility of rental purchases in the future if the right products are found to add to the current inventory.
Pro Forma Balance Sheet | |||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Assets | |||||
Current Assets | |||||
Cash | $238,062 | $321,140 | $370,467 | $434,724 | $514,789 |
Inventory | $334,000 | $330,689 | $396,826 | $419,970 | $445,190 |
Other Current Assets | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 |
Total Current Assets | $602,462 | $682,229 | $797,693 | $885,094 | $990,379 |
Long-term Assets | |||||
Long-term Assets | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 |
Accumulated Depreciation | $48,021 | $96,042 | $144,063 | $192,084 | $240,105 |
Total Long-term Assets | $198,083 | $150,062 | $102,041 | $54,020 | $5,999 |
Total Assets | $800,545 | $832,291 | $899,734 | $939,114 | $996,378 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Current Liabilities | |||||
Accounts Payable | $129,341 | $171,805 | $212,461 | $217,880 | $229,679 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $129,341 | $171,805 | $212,461 | $217,880 | $229,679 |
Long-term Liabilities | $558,371 | $486,212 | $408,064 | $323,430 | $231,771 |
Total Liabilities | $687,712 | $658,017 | $620,525 | $541,310 | $461,450 |
Paid-in Capital | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 |
Retained Earnings | ($104,643) | ($123,609) | ($105,660) | ($14,387) | $85,679 |
Earnings | $42,476 | $122,883 | $209,869 | $237,191 | $274,249 |
Total Capital | $112,833 | $174,274 | $279,209 | $397,804 | $534,928 |
Total Liabilities and Capital | $800,545 | $832,291 | $899,734 | $939,114 | $996,378 |
Net Worth | $112,833 | $174,274 | $279,209 | $397,804 | $534,928 |
The Ratio Analysis looks very encouraging. Industry Profile data is based on Standard Industrial Classification code 5252, Hardware Stores.
Ratio Analysis | ||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Industry Profile | |
Sales Growth | 0.00% | 24.65% | 20.27% | 5.83% | 6.01% | 5.13% |
Percent of Total Assets | ||||||
Inventory | 41.72% | 39.73% | 44.10% | 44.72% | 44.68% | 47.00% |
Other Current Assets | 3.80% | 3.65% | 3.38% | 3.24% | 3.05% | 22.34% |
Total Current Assets | 75.26% | 81.97% | 88.66% | 94.25% | 99.40% | 82.03% |
Long-term Assets | 24.74% | 18.03% | 11.34% | 5.75% | 0.60% | 17.97% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 16.16% | 20.64% | 23.61% | 23.20% | 23.05% | 31.52% |
Long-term Liabilities | 69.75% | 58.42% | 45.35% | 34.44% | 23.26% | 21.36% |
Total Liabilities | 85.91% | 79.06% | 68.97% | 57.64% | 46.31% | 52.88% |
Net Worth | 14.09% | 20.94% | 31.03% | 42.36% | 53.69% | 47.12% |
Percent of Sales | ||||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 44.61% | 44.63% | 44.76% | 45.19% | 45.71% | 34.51% |
Selling, General & Administrative Expenses | 41.72% | 37.96% | 35.28% | 35.07% | 34.67% | 21.03% |
Advertising Expenses | 1.02% | 1.02% | 1.02% | 1.02% | 1.02% | 1.71% |
Profit Before Interest and Taxes | 7.30% | 11.81% | 15.16% | 15.71% | 16.67% | 2.01% |
Main Ratios | ||||||
Current | 4.66 | 3.97 | 3.75 | 4.06 | 4.31 | 2.22 |
Quick | 2.08 | 2.05 | 1.89 | 2.13 | 2.37 | 0.67 |
Total Debt to Total Assets | 85.91% | 79.06% | 68.97% | 57.64% | 46.31% | 56.39% |
Pre-tax Return on Net Worth | 53.78% | 100.73% | 107.38% | 85.18% | 73.24% | 4.50% |
Pre-tax Return on Assets | 7.58% | 21.09% | 33.32% | 36.08% | 39.32% | 10.32% |
Additional Ratios | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Net Profit Margin | 2.88% | 6.67% | 9.48% | 10.12% | 11.04% | n.a |
Return on Equity | 37.64% | 70.51% | 75.17% | 59.63% | 51.27% | n.a |
Activity Ratios | ||||||
Inventory Turnover | 2.38 | 3.07 | 3.36 | 3.14 | 3.12 | n.a |
Accounts Payable Turnover | 8.72 | 8.11 | 8.11 | 8.11 | 8.11 | n.a |
Payment Days | 40 | 39 | 41 | 44 | 44 | n.a |
Total Asset Turnover | 1.84 | 2.21 | 2.46 | 2.50 | 2.49 | n.a |
Debt Ratios | ||||||
Debt to Net Worth | 6.09 | 3.78 | 2.22 | 1.36 | 0.86 | n.a |
Current Liab. to Liab. | 0.19 | 0.26 | 0.34 | 0.40 | 0.50 | n.a |
Liquidity Ratios | ||||||
Net Working Capital | $473,121 | $510,424 | $585,232 | $667,214 | $760,700 | n.a |
Interest Coverage | 2.29 | 5.20 | 9.38 | 12.58 | 18.64 | n.a |
Additional Ratios | ||||||
Assets to Sales | 0.54 | 0.45 | 0.41 | 0.40 | 0.40 | n.a |
Current Debt/Total Assets | 16% | 21% | 24% | 23% | 23% | n.a |
Acid Test | 2.08 | 2.05 | 1.89 | 2.13 | 2.37 | n.a |
Sales/Net Worth | 13.09 | 10.56 | 7.93 | 5.89 | 4.64 | n.a |
Dividend Payout | 0.50 | 0.50 | 0.50 | 0.50 | 0.50 | n.a |
The long term plan is to develop a steady retail hardware business in the downtown Wilusa market. As discussed, there is currently no competition. They key will be to establish a solid business to discourage any competition from coming into the market or creating a level of loyalty that will not be fazed by competition.
After two solid years of performance and establishment of Hisarlik Hardware , there are two areas of potential expansion. First, look for opportunities in the current market. What businesses can be combined logically with what has been established that will deliver additional bottom line profit. Secondly, a second location will be developed in a new part of Wilusa. An area that will deliver a similar characteristic to the first store that appears to be headed down the road of success.
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Monthly Net Sales | 0% | $91,241 | $99,041 | $106,241 | $121,759 | $122,972 | $125,793 | $122,579 | $127,490 | $137,524 | $152,076 | $105,152 | $98,634 |
Rental | 0% | $2,845 | $2,845 | $2,845 | $3,048 | $3,210 | $3,454 | $3,292 | $3,413 | $3,820 | $4,429 | $2,966 | $2,763 |
Other | 0% | $2,007 | $2,007 | $2,007 | $2,151 | $2,265 | $2,437 | $2,323 | $2,409 | $2,696 | $3,126 | $2,093 | $1,950 |
Total Sales | $96,093 | $103,893 | $111,093 | $126,958 | $128,447 | $131,684 | $128,194 | $133,312 | $144,040 | $159,631 | $110,211 | $103,347 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Cost of Goods Sold | $52,920 | $57,444 | $61,620 | $70,620 | $71,324 | $72,960 | $69,936 | $75,104 | $79,764 | $88,204 | $60,988 | $57,208 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $52,920 | $57,444 | $61,620 | $70,620 | $71,324 | $72,960 | $69,936 | $75,104 | $79,764 | $88,204 | $60,988 | $57,208 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
President (Hector Priamson) | 0% | $4,583 | $4,583 | $4,583 | $4,583 | $4,583 | $4,583 | $4,583 | $4,583 | $4,583 | $4,583 | $4,583 | $4,587 |
General Manager (Penthesilea Thracian) | 0% | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,337 |
Asst. Gen. Manager (Glaucus Serpadon) | 0% | $2,916 | $2,916 | $2,916 | $2,916 | $2,916 | $2,916 | $2,916 | $2,916 | $2,916 | $2,916 | $2,916 | $2,924 |
Cashiers | 0% | $2,323 | $2,323 | $2,323 | $2,323 | $2,323 | $2,323 | $2,323 | $2,323 | $2,323 | $2,323 | $2,323 | $2,323 |
Specialists | 0% | $7,529 | $7,529 | $7,529 | $7,529 | $7,529 | $7,529 | $7,529 | $7,529 | $7,529 | $7,529 | $7,529 | $7,529 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 17 | 17 | 17 | 17 | 17 | 17 | 17 | 17 | 17 | 17 | 17 | 17 | |
Total Payroll | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,700 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
Long-term Interest Rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $96,093 | $103,893 | $111,093 | $126,958 | $128,447 | $131,684 | $128,194 | $133,312 | $144,040 | $159,631 | $110,211 | $103,347 | |
Direct Cost of Sales | $52,920 | $57,444 | $61,620 | $70,620 | $71,324 | $72,960 | $69,936 | $75,104 | $79,764 | $88,204 | $60,988 | $57,208 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $52,920 | $57,444 | $61,620 | $70,620 | $71,324 | $72,960 | $69,936 | $75,104 | $79,764 | $88,204 | $60,988 | $57,208 | |
Gross Margin | $43,173 | $46,449 | $49,473 | $56,338 | $57,123 | $58,724 | $58,258 | $58,208 | $64,276 | $71,427 | $49,223 | $46,139 | |
Gross Margin % | 44.93% | 44.71% | 44.53% | 44.38% | 44.47% | 44.59% | 45.45% | 43.66% | 44.62% | 44.75% | 44.66% | 44.65% | |
Expenses | |||||||||||||
Payroll | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,700 | |
Account Name | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | 4% | $4,002 | $4,002 | $4,002 | $4,002 | $4,002 | $4,002 | $4,002 | $4,002 | $4,002 | $4,002 | $4,002 | $4,002 |
Advertising Expense-Circulars | 3% | $2,783 | $293 | $293 | $2,783 | $293 | $293 | $1,953 | $293 | $2,783 | $2,783 | $293 | $293 |
Advertising Expense-Newspapers | 0% | $221 | $239 | $256 | $292 | $295 | $303 | $290 | $311 | $331 | $367 | $253 | $238 |
Advertising Expense-Yellow Pages | 0% | $217 | $217 | $217 | $217 | $217 | $217 | $217 | $217 | $217 | $217 | $217 | $217 |
Advertising Expense-National | 1% | $500 | $540 | $578 | $660 | $668 | $685 | $656 | $704 | $749 | $830 | $573 | $537 |
Lease | 10% | $9,553 | $9,553 | $9,553 | $9,553 | $9,553 | $9,553 | $9,553 | $9,553 | $9,553 | $9,553 | $9,553 | $9,553 |
Utilities | 1% | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 |
Telephone | 0% | $288 | $312 | $333 | $381 | $385 | $395 | $379 | $406 | $432 | $479 | $331 | $310 |
Accounting and Legal | 1% | $532 | $532 | $532 | $532 | $532 | $532 | $532 | $532 | $532 | $532 | $532 | $532 |
Store and Office Supplies | 1% | $961 | $1,039 | $1,111 | $1,270 | $1,284 | $1,317 | $1,262 | $1,353 | $1,440 | $1,596 | $1,102 | $1,033 |
Insurance | 1% | $836 | $836 | $836 | $836 | $836 | $836 | $836 | $836 | $836 | $836 | $836 | $836 |
Delivery Vehicle Expense | 1% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
Payroll Taxes | 9% | $1,860 | $1,860 | $1,860 | $1,860 | $1,860 | $1,860 | $1,860 | $1,860 | $1,860 | $1,860 | $1,860 | $1,860 |
Employee Benefits | 1% | $1,369 | $1,369 | $1,369 | $1,369 | $1,369 | $1,369 | $1,369 | $1,369 | $1,369 | $1,369 | $1,369 | $1,369 |
State Property Tax Expense | 0% | $0 | $0 | $0 | $2,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Travel | 1% | $1,437 | $0 | $0 | $0 | $0 | $0 | $0 | $1,434 | $0 | $0 | $0 | $0 |
Other | 1% | $1,379 | $1,379 | $1,379 | $1,379 | $1,379 | $1,379 | $1,379 | $1,379 | $1,379 | $1,379 | $1,379 | $1,379 |
Total Operating Expenses | $47,872 | $44,105 | $44,252 | $49,568 | $44,608 | $44,675 | $46,222 | $46,183 | $47,418 | $47,737 | $44,234 | $44,110 | |
Profit Before Interest and Taxes | ($4,699) | $2,344 | $5,221 | $6,770 | $12,515 | $14,049 | $12,036 | $12,025 | $16,858 | $23,689 | $4,988 | $2,030 | |
EBITDA | ($697) | $6,346 | $9,223 | $10,772 | $16,517 | $18,051 | $16,038 | $16,027 | $20,860 | $27,691 | $8,990 | $6,031 | |
Interest Expense | $4,131 | $4,095 | $4,059 | $4,023 | $3,986 | $3,949 | $3,912 | $3,874 | $3,837 | $3,799 | $3,761 | $3,722 | |
Taxes Incurred | ($2,649) | ($525) | $349 | $824 | $2,559 | $3,030 | $2,437 | $2,445 | $3,906 | $5,967 | $368 | ($508) | |
Other Income | |||||||||||||
Interest Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Income Account Name | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Other Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Expense | |||||||||||||
Account Name | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Expense Account Name | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Other Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Other Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($6,181) | ($1,225) | $813 | $1,923 | $5,970 | $7,070 | $5,687 | $5,705 | $9,115 | $13,923 | $859 | ($1,185) | |
Net Profit/Sales | -6.43% | -1.18% | 0.73% | 1.51% | 4.65% | 5.37% | 4.44% | 4.28% | 6.33% | 8.72% | 0.78% | -1.15% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $96,093 | $103,893 | $111,093 | $126,958 | $128,447 | $131,684 | $128,194 | $133,312 | $144,040 | $159,631 | $110,211 | $103,347 | |
Subtotal Cash from Operations | $96,093 | $103,893 | $111,093 | $126,958 | $128,447 | $131,684 | $128,194 | $133,312 | $144,040 | $159,631 | $110,211 | $103,347 | |
Additional Cash Received | |||||||||||||
Non Operating (Other) Income | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $96,093 | $103,893 | $111,093 | $126,958 | $128,447 | $131,684 | $128,194 | $133,312 | $144,040 | $159,631 | $110,211 | $103,347 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,684 | $20,700 | |
Bill Payments | $0 | $41,380 | $79,105 | $88,519 | $92,797 | $94,318 | $104,264 | $98,138 | $101,208 | $111,491 | $99,990 | $87,632 | |
Subtotal Spent on Operations | $20,684 | $62,064 | $99,789 | $109,203 | $113,481 | $115,002 | $124,948 | $118,822 | $121,892 | $132,175 | $120,674 | $108,332 | |
Additional Cash Spent | |||||||||||||
Non Operating (Other) Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $5,352 | $5,387 | $5,423 | $5,459 | $5,496 | $5,533 | $5,569 | $5,607 | $5,644 | $5,682 | $5,719 | $5,758 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $21,311 | $0 | $0 | |
Subtotal Cash Spent | $26,036 | $67,451 | $105,212 | $114,662 | $118,977 | $120,535 | $130,517 | $124,429 | $127,536 | $159,168 | $126,393 | $114,090 | |
Net Cash Flow | $70,057 | $36,442 | $5,881 | $12,296 | $9,470 | $11,149 | ($2,323) | $8,883 | $16,504 | $463 | ($16,182) | ($10,743) | |
Cash Balance | $166,221 | $202,663 | $208,543 | $220,840 | $230,310 | $241,459 | $239,136 | $248,020 | $264,524 | $264,987 | $248,805 | $238,062 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $96,164 | $166,221 | $202,663 | $208,543 | $220,840 | $230,310 | $241,459 | $239,136 | $248,020 | $264,524 | $264,987 | $248,805 | $238,062 |
Inventory | $344,000 | $344,000 | $344,000 | $354,000 | $344,000 | $344,000 | $354,000 | $344,000 | $354,000 | $354,000 | $324,000 | $324,000 | $334,000 |
Other Current Assets | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 | $30,400 |
Total Current Assets | $470,564 | $540,621 | $577,063 | $592,943 | $595,240 | $604,710 | $625,859 | $613,536 | $632,420 | $648,924 | $619,387 | $603,205 | $602,462 |
Long-term Assets | |||||||||||||
Long-term Assets | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 | $246,104 |
Accumulated Depreciation | $0 | $4,002 | $8,004 | $12,005 | $16,007 | $20,009 | $24,011 | $28,012 | $32,014 | $36,016 | $40,018 | $44,019 | $48,021 |
Total Long-term Assets | $246,104 | $242,102 | $238,101 | $234,099 | $230,097 | $226,095 | $222,094 | $218,092 | $214,090 | $210,088 | $206,087 | $202,085 | $198,083 |
Total Assets | $716,668 | $782,723 | $815,163 | $827,042 | $825,337 | $830,805 | $847,953 | $831,628 | $846,510 | $859,012 | $825,474 | $805,290 | $800,545 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $77,588 | $116,640 | $133,129 | $134,959 | $139,954 | $155,564 | $139,121 | $153,904 | $162,936 | $142,467 | $127,143 | $129,341 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $77,588 | $116,640 | $133,129 | $134,959 | $139,954 | $155,564 | $139,121 | $153,904 | $162,936 | $142,467 | $127,143 | $129,341 |
Long-term Liabilities | $625,000 | $619,648 | $614,261 | $608,838 | $603,379 | $597,883 | $592,350 | $586,781 | $581,174 | $575,530 | $569,848 | $564,129 | $558,371 |
Total Liabilities | $625,000 | $697,236 | $730,901 | $741,967 | $738,338 | $737,837 | $747,914 | $725,902 | $735,078 | $738,466 | $712,315 | $691,272 | $687,712 |
Paid-in Capital | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 | $175,000 |
Retained Earnings | ($83,332) | ($83,332) | ($83,332) | ($83,332) | ($83,332) | ($83,332) | ($83,332) | ($83,332) | ($83,332) | ($83,332) | ($104,643) | ($104,643) | ($104,643) |
Earnings | $0 | ($6,181) | ($7,406) | ($6,593) | ($4,670) | $1,301 | $8,371 | $14,058 | $19,763 | $28,878 | $42,802 | $43,661 | $42,476 |
Total Capital | $91,668 | $85,487 | $84,262 | $85,075 | $86,998 | $92,969 | $100,039 | $105,726 | $111,431 | $120,546 | $113,159 | $114,018 | $112,833 |
Total Liabilities and Capital | $716,668 | $782,723 | $815,163 | $827,042 | $825,337 | $830,805 | $847,953 | $831,628 | $846,510 | $859,012 | $825,474 | $805,290 | $800,545 |
Net Worth | $91,668 | $85,487 | $84,262 | $85,075 | $86,998 | $92,969 | $100,039 | $105,726 | $111,431 | $120,546 | $113,159 | $114,018 | $112,833 |
Long-term | ||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
Sales | $1,476,903 | $1,840,977 | $2,214,233 | $2,343,370 | $2,484,097 | $0 | $0 | $0 | $0 | $0 |
Cost of Sales | $818,091 | $1,019,293 | $1,223,152 | $1,284,310 | $1,348,525 | $0 | $0 | $0 | $0 | $0 |
Gross Margin | $658,812 | $821,683 | $991,081 | $1,059,061 | $1,135,572 | $0 | $0 | $0 | $0 | $0 |
Gross Margin % | 44.61% | 44.63% | 44.76% | 45.19% | 45.71% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Operating Expenses | $550,984 | $604,353 | $655,497 | $690,957 | $721,579 | $0 | $0 | $0 | $0 | $0 |
Operating Income | $107,828 | $217,330 | $335,584 | $368,104 | $413,992 | $0 | $0 | $0 | $0 | $0 |
Net Income | $42,476 | $122,883 | $209,869 | $237,191 | $274,249 | $0 | $0 | $0 | $0 | $0 |
Current Assets | $602,462 | $682,229 | $797,693 | $885,094 | $990,379 | $0 | $0 | $0 | $0 | $0 |
Long-term Assets | $198,083 | $150,062 | $102,041 | $54,020 | $5,999 | $0 | $0 | $0 | $0 | $0 |
Current Liabilities | $129,341 | $171,805 | $212,461 | $217,880 | $229,679 | $0 | $0 | $0 | $0 | $0 |
Long-term Liabilities | $558,371 | $486,212 | $408,064 | $323,430 | $231,771 | $0 | $0 | $0 | $0 | $0 |
Equity | $112,833 | $174,274 | $279,209 | $397,804 | $534,928 | $0 | $0 | $0 | $0 | $0 |
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What's Your Question?
Are you considering starting your own electrical supply store? As the demand for electrical components and equipment continues to grow, now is a great time to enter the market. But before you dive in, it’s important to have a solid plan in place. In this step-by-step guide, we will walk you through the process of starting your own electrical supply store.
Before embarking on any business venture, it’s crucial to conduct thorough research and create a comprehensive plan. This will help you understand the market, identify potential competitors, and determine your target audience.
Start by researching the local electrical supply market in your area. Look for gaps or untapped opportunities that you can leverage. Consider factors such as population density, existing competition, and potential growth prospects.
Next, outline your business plan. Define your goals, objectives, and strategies for success. Determine how you will differentiate yourself from competitors and what products or services you will offer. Conduct a financial analysis to understand the costs involved in setting up and running your store.
Starting an electrical supply store requires significant upfront investment. You’ll need to secure funding to cover various expenses such as leasing a space, purchasing inventory, hiring staff, marketing efforts, and more.
Consider different funding options such as personal savings, loans from banks or investors, or even crowdfunding platforms. Prepare a detailed financial projection that outlines your expected revenue and expenses for at least the first year of operation.
Choosing the right location is crucial for the success of your electrical supply store. Look for areas with high foot traffic or proximity to construction sites or industrial areas where there is a demand for electrical supplies.
Consider factors such as visibility from main roads, parking availability for customers’ convenience, accessibility for deliveries, and proximity to other complementary businesses like electricians or contractors.
Additionally, evaluate the cost of leasing or purchasing the space and ensure it aligns with your budget. Negotiate lease terms to get the best deal possible.
Once you have your location secured, it’s time to focus on inventory management and marketing strategies. Stock your store with a wide range of electrical components, equipment, tools, and accessories that cater to both residential and commercial customers.
Establish relationships with reputable suppliers and negotiate favorable pricing terms. Regularly assess your inventory levels to ensure you have enough stock to meet customer demand while minimizing excess inventory that ties up capital.
Invest in marketing efforts to create awareness about your electrical supply store. Develop a strong online presence through a website and social media platforms. Consider offering promotions or discounts for new customers to attract them to your store.
Implementing effective marketing strategies like search engine optimization (SEO), pay-per-click advertising (PPC), content marketing, and targeted email campaigns can help drive traffic to your store.
In conclusion, starting an electrical supply store requires careful planning, securing funding, selecting the right location, managing inventory effectively, and implementing strategic marketing efforts. By following this step-by-step guide, you’ll be well-equipped to start a successful venture in the electrical supply industry. Good luck.
This text was generated using a large language model, and select text has been reviewed and moderated for purposes such as readability.
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The hardware business is about trading tools, implements, and other items used in home life and activities such as construction, gardening etc.
This is an in-demand business, so you can easily start it without any second thought.
In this article, we will give you complete information related to the hardware shop business, which includes a business plan, Pros & cons, licenses and certificates required, hardware business cost, profit margin, etc.
In this Post
The next step is sourcing materials. For this, you have to contact different companies, salespersons and dealers. Most of the dealers will give you 25 days credit period.
You can also visit wholesale markets in big cities ( like chawri bazar in Delhi ) and buy products from the wholesalers.
Also, there are websites like indiamart.com, through which you can contact dealers from all over India.
The types and the categories of products you can sell in a hardware shop are listed in the last section of this article.
If you have a limited budget, start with materials or categories that are high in demand, later you can add more categories. The products like paint require more investment.
For a hardware shop business, you may require 2 to 3 employees. For them, you can set salaries between 15,000 and 17,000 rupees per month.
The total manpower depends upon the scale on which you are planning to start your business.
Make a good network of plumbers, carpenters, electricians, and masons in your area. They are the primary customers of your business. But usually, they purchase on credit, so you have to be careful while choosing them.
If possible, keep more varieties for products you sell and keep trending items. Over time you will get customers by word of mouth.
You can use offline line marketing like distributing flyers to promote your business. For online you can use social media marketing.
To start a hardware business, you require these licenses and certificates,
MSME registration helps you in getting a business loan from the bank. You can also approach banks like SIDBI.
To start a hardware business in India, you require an investment of 8 lakh to 10 lakh rupees.
As you know, the total investment depends upon the total categories of products you are going to sell and the product varieties you offer. So the investment relies on the scale on which you are going to do the business.
In this type of business, you require large working capital. If you have a limited category in your shop, then it would become difficult to serve the customer demand.
The initial investments required are,
To start a hardware business on a large scale you may require up to 15 lakh to 20 lakh rupees investment.
The ongoing monthly expenses are shop rent, employee salary, material purchases, utility bills, etc.
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In the Hardware business, you can expect a profit margin of 25% to 30% on your revenue.
A hardware shop has a wide range of product categories, so each product type has a different profit margin.
For example, you can expect a margin of 25% from plumbing and fabrication supplies and 10% to 15% from electrical supplies.
Also, most of the products in a hardware shop don’t have the MRP printed on them, you can set the profit margin by looking at the competitors in your area.
If you are dealing with a single brand or company for a specific product category, you may receive cash discounts and bonuses from the company.
But to achieve this you must reach the target monthly sales set by the company.
In a hardware business, you can earn up to 35 to 50 thousand rupees per month.
Of course, if you have a big shop with large product types and volume, you can earn more.
These are some of the products or items you can sell in a hardware shop. You should decide on the products as per your initial budget and the demand in your area.
You can also add shutter and gate locks, kitchen Baskets, water tanks, cleaning products, welding sticks, agricultural tools, gardening tools etc.
Adding a full range of paint products, in the beginning, may become expensive. So initially you can sell basic paints, putty, white cement, red oxide, thinner, turpentine, brushes, sanding paper, waterproofing products, etc.
You require a minimum of 1500 square feet of space to start the business.
You can start with an 8 lakh to 10 lakh rupees investment.
You can expect a profit margin of 25% to 30% on revenue.
I hope this article has resolved many of your doubts related to the Hardware business. If you have any suggestions feel free to mention them in the comment box below.
Iam hajarthalli D goudageri Nanu kundagol talluq neda ingalagi neda Nanu hardware business madabeykanth anddkondene Sir nange help madde Sir
Iam hajarthalli D goudageri Nanu kundagol talluq neda ingalagi neda Nanu cmeint business madabeykanth anddkondene Sir nange help madde Sir
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Are you considering starting an electrical business and are in need of an electrical business plan? if yes, you'll find this free book to be extremely helpful.
This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.
Checklist for Starting a Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
Here’s a Valuable Free Gift for You This is a high quality, full blown business plan template complete with detailed instructions and all related spreadsheets. You can download it to your PC and easily prepare a professional business plan for your business. Click Here! To get your free business plan template
The Single Most Important Ingredient for Business Success
The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.
Sounds exaggerated? Listen to this...
According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.
This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.
Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.
"Why Invent Mediocrity, When You Can Copy Genius?"
That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?
[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]
Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful Internet based information business. I'm also the author of numerous books, mostly in the area of small business management.
I've been involved in small business for the past 31 years of my life, as a business coach, manager of a Electrical firm, a seminar leader and as the owner of five successful businesses.
During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.
Here's what you'll discover in the 'How to Start a Electrical Business' book:
Success Tip: Setting Goals
Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.
Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.
Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.
Click here! to download your Electrical Business Plan book for free (PDF version)
Learn how to improve your leadership skills and become a better manager and leader. Here's how to be the boss people want to give 200 percent for. In the following video you'll discover 120 powerful tips and strategies to motivate and inspire your people to bring out the best in them.
For more insightful videos visit our Small Business and Management Skills YouTube Chanel .
Here're other free books in the "how to start a business" series that may interest you:
Here's a Sample 'Executive Summary' for a Electrical Business plan :
COMPANY NAME ADDRESS CITY, STATE, ZIP CODE Tel. Fax: Email:
COMPANY NAME is an Electrical Sub-Contractor, primarily doing commercial, industrial, medical and residential. COMPANY NAME offers value engineering for energy evaluation & efficiency. The purpose of the company's plan is to grow in the fields mentioned above as well as branch out into Nevada, Arizona & New Mexico. COMPANY NAME also wants to further the company's market share in the solar/energy and the service industry.
1. To fund growth of existing business & increase market share of our service business 2. Expand into the field of energy/solar 3. With additional capital the ability to bid larger projects.
COMPANY NAME 's sole purpose is to establish a profitable and well managed company while at the same time designing to please the local residents with excellent service in California. COMPANY NAME’s near future plans are to grow the company's electrical contracting business in California and other states such as Nevada, Arizona and New Mexico. The company will seek to provide these services in the timeliest manner and with an ongoing comprehensive quality control program to provide 100% customer satisfaction.
1. Servicing and maintaining our existing client base 2. Having employees that understand and implement our high standards 3. Reliability and communication with clients from beginning of each job to end.
COMPANY NAME is in the city of Orange and has been in the county of Orange since 1994, servicing Los Angeles, Riverside, San Bernardino and San Diego counties. We provide electrical contracting services to a wide range of clients, including owners and general contractors, mainly in the medical field. COMPANY NAME's current corporate office is at [INSERT ADDRESS]. The company's corporate office is a 4,650 sq ft concrete tilt up building. This corporate office houses all administrative operations, with warehouse space used for inventory and service vehicles. All of the work is done at many off-site locations.
COMPANY NAME is a privately held C Corporation where OWNER’S NAME is president & secretary and CO-OWNER’S NAME is Vice President.
In 2006 and 2007 COMPANY NAME experienced a decrease in sales due to California budget cuts for the company's voice and data division that had provided services to Employment Development Departments. The decrease in sales was also due to existing clients who were very slow in paying for services rendered. COMPANY NAME had also made the decision to focus more on the medical field and their primary client base. The company had cut ties with three general contractors and proceeded to establish new contacts within the medical field. The year of 2008 was a great year and COMPANY NAME was on track to double sales; however the economy was starting to slow. 2009 was a respectable year, however, again, due to the economy COMPANY NAME re-evaluated again to expand into solar/energy industry.
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| 2007 | 2008 | 2009 |
Sales | $987,783 | $1,508,165 | $1,070,965 |
Gross Margin | ($85,875) | $49,936 | $11,341 |
Gross Margin % | -8.69% | 3.31% | 1.06% |
Operating Expenses | $95,468 | $109,532 | $72,754 |
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Balance Sheet |
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| 2007 | 2008 | 2009 |
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Current Assets |
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Cash | $0 | $0 | $146,468 |
Other Current Assets | $2,861 | $10,861 | $233,726 |
Total Current Assets | $2,861 | $10,861 | $380,194 |
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Long-term Assets |
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Long-term Assets | $52,448 | $36,941 | $22,597 |
Accumulated Depreciation | $112,713 | $133,620 | $149,039 |
Total Long-term Assets | ($60,265) | ($96,679) | ($126,442) |
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Total Assets | ($57,404) | ($85,818) | $253,752 |
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Current Liabilities |
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Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities (interest free) | $103,222 | $142,045 | $180,228 |
Total Current Liabilities | $103,222 | $142,045 | $180,228 |
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Long-term Liabilities | $59,732 | $41,296 | $23,395 |
Total Liabilities | $162,954 | $183,341 | $203,623 |
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Paid-in Capital | $60,743 | $60,743 | $41,849 |
Retained Earnings | ($227,917) | ($240,778) | $86,063 |
Earnings | ($53,184) | ($89,124) | ($77,783) |
Total Capital | ($220,358) | ($269,159) | $50,129 |
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Total Capital and Liabilities | ($57,404) | ($85,818) | $253,752 |
3.0 Services
COMPANY NAME 's products are: 1) Design build which is based on a per square foot price. 2) Contract work which is specific to a certain set of blueprints/drawings. 3) Service work that is based on an hourly rate.
COMPANY NAME will focus on four main markets within the industry such as: MEDICAL This field is a viable source of business now and due to ever changing technology a great source of future business that will sustain us long term. SERVICE There will always be a need for service and this is an area that we have never taped into and believe there is great potential. COMMERCIAL/INDUSTRIAL This has been the company's main focus; COMPANY NAME has built great long term relationships with building owners who now look for our guidance in directing their energy improvements. SOLAR/ENERGY We feel we always need to look at new trends and stay ahead of change in our approach to long term sustainability.
We must all be efficient and productive in today's business world. Being organized helps you handle tasks quickly so that you have more time and space to do what you truly want to do.
1. One-time mail system.
Have an In Box on your desk for new mail/information. Look at your mail once a day. Review each piece of mail once to decide whether to do it, delegate it or dump it. If it adds value to your business or is required for doing business, do it or delegate it. If not, then dump it. If you keep it, then categorize it using the A, B, C system. Use your time wisely.
2. Categories for performing your work.
Set up desk trays labeled A, B, and C. Items in category A must be handled today. Category B items must be handled this week. Category C items are generally filing that must be kept because they have some value, such as invoices, tax returns, and statements.
3. Prioritize your work within categories A and B.
Sort the categories into 1, 2, and 3. A1 must be done NOW, it is "hot" or "urgent." A2 can be done this AM. A3 can be done by the end of the day. B1 is done on Monday. B2 done by Wednesday. B3 done by the end of the week. Make the decision once, then do the work.
Set a day and time each week for filing. Don't let it stack up. Give yourself space to work.
5. Purge your files on a regular schedule.
For example, purge files every six months. Send these documents to storage. This gives you more space to work.
6. Storing records.
Store documents in boxes. Mark the contents of each box. For instance, clients A-F2013. Mark the destruction date on the box, D = June 02. Base your destruction date on the legal requirements for your industry.
7. Toss out stored documents on a regular schedule.
For example, two times per year, visit the storage area and remove boxes that are beyond the destruction date. Depending on your industry, they may need to be shredded rather than put in the trash.
8. Color code your records.
For example, clients with first names beginning with A-F are in Orange folders; G-K Yellow; L-P Blue; Q-Z Green. This will save you time when you are searching for a file. You can also apply this to AP, AR, Payroll, and Taxes. This can also be done by year. For example, 2012 AP is blue; 2013 AP is purple.
9. Hot files.
Put a red cover on files that you consider "hot." These could be urgent projects, legally or financially sensitive, or important VIP clients. Keep these visually at your fingertips.
10. Use out guides.
If you work with other people and share files, create a check-out system so that files are not lost. Put the file name, taken-by name, and date on a card and place it in an out guide box. When you can't find what you want, check the box to see if your co-worker is using the file. Be sure to remove the card from the box when you return the file.
Copyright © by Bizmove Free Business Guides. All rights reserved.
By lyle boss - special to the daily herald | aug 24, 2024.
Courtesy photo
As we journey through life, our financial needs and priorities evolve. What may have been a solid financial plan in your 30s may no longer suffice in your 50s or beyond. Adjusting your financial plan as you age is crucial to ensure you remain on track to achieve your goals and maintain financial security throughout your life. Here’s a comprehensive guide on how to adapt your financial plan at different stages of life:
Before making any adjustments to your financial plan, it’s essential to assess your current financial situation thoroughly. Take stock of your assets, liabilities, income sources and expenses. This evaluation will provide a clear picture of where you stand financially and serve as a baseline for making informed decisions about your future financial strategy.
1. Establishing financial foundations: During your 30s and 40s, focus on building a solid financial foundation. This includes:
2. Saving for retirement: Take advantage of employer-sponsored retirement plans, such as 401(k)s and individual retirement accounts (IRAs). Maximize your contributions to these accounts to benefit from compound interest over time.
3. Investing for growth: Allocate your investments across a diversified portfolio that aligns with your risk tolerance and long-term goals. Consider consulting with a financial advisor to create an investment strategy that maximizes growth potential while managing risk.
1. Review retirement readiness: As you approach your 50s and beyond, evaluate your retirement savings and assess whether they are on track to meet your income needs during retirement. Consider factors such as expected retirement age, desired lifestyle, health care costs and potential longevity.
2. Transitioning to retirement: If retirement is on the horizon, start planning for the transition by:
3. Adjusting investment strategy: Shift your investment strategy to prioritize income generation and preservation of capital as you approach retirement. Consider gradually reducing exposure to high-risk investments in favor of more stable income-producing assets.
1. Estate planning: Regardless of your age, estate planning is essential to ensure your assets are distributed according to your wishes. Review and update your will, establish trusts if necessary and designate beneficiaries for retirement accounts and insurance policies.
2. Long-term care planning: Assess the potential need for long-term care as you age. Investigate long-term care insurance options or include provisions for long-term care expenses in your financial plan.
3. Monitoring and rebalancing: Regularly monitor your financial plan and investment portfolio. Rebalance your investments periodically to maintain your desired asset allocation and adjust your plan as life circumstances change.
Adapting your financial plan as you age is a proactive approach to ensure financial security and peace of mind throughout your life. By assessing your current financial situation, setting realistic goals and making strategic adjustments at each stage of life, you can navigate life’s financial challenges with confidence. Remember, financial planning is a dynamic process that requires regular review and adjustment to align with your evolving needs and goals.
Whether you’re in your 30s just starting your financial journey or approaching retirement in your 60s, taking proactive steps to adjust your financial plan will empower you to achieve a secure and fulfilling future. Start today–your financial future is in your hands.
Lyle Boss, endorsed by Glenn Beck as the premier retirement advisor for Utah and the Mountain West States. Boss Financial, 955 Chambers St. Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.
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COMMENTS
A hardware business typically manufactures or sells hand and power tools, building materials, fasteners, keys, locks, hinges, chains, electrical supplies, plumbing supplies, cleaning products, housewares, utensils, and paint. These businesses are designed for DIY consumers and handymen (as well as tradesmen) who need a location to acquire ...
Here are a few tips for writing the market analysis section of your hardware shop business plan: Conduct market research, industry reports, and surveys to gather data. Provide specific and detailed information whenever possible. Illustrate your points with charts and graphs. Write your business plan keeping your target audience in mind. 4.
Ace Hardware is a new hardware store that will be located on Main Street, San Diego, California. The store will occupy a 5,000-square-foot space in a busy and convenient shopping plaza, with ample parking and visibility. The store will be open from 8 a.m. to 8 p.m., seven days a week.
The Pre-written business plan package (PDF, Word, and Excel) costs $30 only! If you want to purchase multiple business plans at once then click here: Business Plans Store. The business plan package is a zipped compressed file containing the PDF, Word and Excel documents.
By outlining your business objectives, target market, competition analysis, marketing strategies, and financial projections, a business plan serves as a comprehensive guide for managing and growing your hardware store business. It helps to identify potential challenges and opportunities, enabling you to proactively address them.
A Sample Hardware Store Business Plan Template 1. Industry Overview. Stores in the Hardware Stores industry primarily retail a broad range of home renovation equipment and related supplies. Products such as hardware, plumbing, electrical and paint-related tools et al are the most commonly stocked goods you will likely find in a hardware store.
The Plan. Our electronics store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Offers an overview of your electronics store's business concept ...
Here's a method to spot your competition: Determine local hardware stores in your area. Analyze their product range, prices, and services. Check customer reviews for strengths and weaknesses. Look at their marketing and online presence. With this intelligence, your business plan advances from good to great.
1. Describe the Purpose of Your Hardware Business. The first step to writing your business plan is to describe the purpose of your hardware business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.
Our Advantages. Clara's Hardware's competitive edge is: Location : Clara's Hardware is located in South Gate Plaza. The foot traffic in the plaza is very strong. The closest hardware store to the South Gate area is a twenty minute drive. Seasonal Products: Each season has it own unique demand on a homeowner.
10. Writing a Business Plan. A Business Plan Is Essential: A business plan is a foundational tool for startups, critical for securing financing and attracting investors. Beyond these initial uses, it serves as a roadmap, guiding you through establishing and growing your business. It Takes Time and Effort to Create an Effective Business Plan:
Plan your Hardware Shop. Form your Hardware Shop into a Legal Entity. Register your Hardware Store for Taxes. Opening a Business Bank Account and Credit Card. Set up Accounting for your Hardware Shop. Get the Necessary Permits and Licenses for your Hardware Store. Get Hardware Shop Insurance.
In this article, you will discover the steps required to undertake while opening a hardware business of your own. Steps To Start A Hardware Store Business . Here are the steps to start a hardware store business. 1. Determine The Target Market . It is vital to carefully consider the location of your hardware store and the local community's ...
Hardware Store Business Plan Template (Microsoft Word) - $47.00 +Add Excel Worksheet (Recommended) - $35.00 +Add PowerPoint Template and 4 Funding eBooks - $65.00 +Add Business Startup, Finance, Marketing Documents 781 Templates - $185.00 +Add Operational, Employee and Policy and Procedure Templates - $35.00
Below is the sales projection for Mac Bruce™ Electrical Supply Store, Inc., it is based on the location of our business and other factors as it relates to electrical equipment supply stores startups in the United States; First Fiscal Year: $450,000. Second Fiscal Year: $950,000. Third Fiscal Year: $1. 9 million.
Explore a real-world hardware retail franchise business plan example and download a free template with this information to start writing your own business plan. ... These products include electrical supplies, automotive, hardware, housewares, lawn and garden, building supplies, paint, plumbing, tools and rental. ...
The global market size for electrical hardware is significant and continues to grow at a steady pace. According to a report by Market Research Future, the market is projected to reach a value of approximately $60 billion by 2025, growing at a compound annual growth rate (CAGR) of around 6% during the forecast period.
Operational Process. Help tip Hardware Shop Business Plan. Outline the processes and procedures you will use to run your hardware shop. Your operational processes may include inviting walk-ins, assisting customers, making sales, collection and payment, scheduling fittings, store maintenance, and order restocking.
Start by researching the local electrical supply market in your area. Look for gaps or untapped opportunities that you can leverage. Consider factors such as population density, existing competition, and potential growth prospects. Next, outline your business plan. Define your goals, objectives, and strategies for success.
Bring together all your enquiries, estimates, quotes, jobs, staff, invoices, and more — all in one place, across every device. Save time and eliminate stress with Tradify! Try Free for 14 Days! Every electrical business, new or established, needs a solid business plan. Download your free electrical business plan template today!
The hardware shop business plan is a detailed blueprint for initiating and managing a hardware and home improvement retail store. It encompasses crucial elements such as market analysis, target audience definition, competitive positioning, inventory management, marketing strategies, and financial projections. By emphasizing quality products and excellent customer service, the plan aims to ...
Hardware business plan. The first step in the hardware business is to choose a good location for your business. The area with high footfall is the ideal location for the hardware shop business. You need a shop with a minimum of 800 to 1200 square feet of space. To store additional stocks and items like pipes you may require an additional warehouse.
A complete electrical shop business plan PDF. This fill-in-the-blanks template includes every section of your business plan, including Executive Summary, Objectives, SWOT Analysis, Marketing Analysis and Strategy, Operations Plan, Financial Projections and more (a similar template is sold elsewhere for $69.95). All this and much much more.
Make sure that the insurance covers both liability and inventory loss. The fundamental monthly costs, such as rent, utilities, water, insurance, etc., should be calculated. When selecting how much to charge for each item in your store, consider your profit margins. On average, the profit margin in hardware stores in India is 15%.
Investigate long-term care insurance options or include provisions for long-term care expenses in your financial plan. 3. Monitoring and rebalancing: Regularly monitor your financial plan and ...