ImagiNation Inc. 2011-2012 Business Plan

7/27/2019 ImagiNation Inc. 2011-2012 Business Plan

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Table of ContentsIntroductory Components

Executive Summary.... 3 Company Description.. 4 Mission Statement 4

Management Functions Planning..... 4 Organization ..... 5 Directing.... 7 Controlling..... 7

Assessment of the Environment Current Economic Conditions........ 7 Industry Analysis

o Real...... 9

o Virtual..... 10o Competitive Analysis........ 11

Target Market. 11 Market Segmentation.... 12

The Marketing Mix Product.... 13 Pricing.. 15 Placement... 15 Promotion 16 Positioning... 17

Break-even Analysis 17

SWOT Analysis & Discussion of Business Risks SWOT 18 Risks... 19

Financial Data Financial Write-up.. 20 Income Statement. 21 Balance Sheet... 22 Cash Budget.. 23

Appendix Bank Statement 24 Loan Amortization Table.. 24 Kadabra! Teaser Ad. 26 Market Research Survey 27


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Executive Summary

ImagiNation Inc. is a new Virtual Enterprise firm that operates in the novelty industry. We strive

to inspire our customers. This is why we have created the Kadabra! brand, which aims to unlock

something extraordinary within each of our customers.

We provide products that seem particularly out of reach, but are appealing to most people,

regardless of their gender, nationality and even age. Our products appeal to those who seek

efficiency and those more inclined to fun accessories. We offer intelligence that exceeds ones

expectations, effortless singing abilities, precious magic carpet rides, and explosions of

happiness!

Our goal for our first year in business is to achieve $115,000 in sales of special powers. In order

to meet this goal, we hope to create an effective website by December and develop aggressive

advertising campaigns. These campaigns consist of three months of advertisement on the VE

website, possible ads on other firms websites, establishing partnerships with international firms

andpromoting the idea of our products through How To videos. This, we hope, will promote

our image properly to domestic and international firms, assisting us in accomplishing our

projections.

ImagiNation Inc. revenue will come from four different sources: the internet, the NYC Trade

Fair, the International Trade Fair in Vienna, Austria, and contractual sales. Our focus is internet

sales, although we expect higher sales to be achieved at trade fairs. We will break even when our

firm achieves $106,316 in sales.

Being the only company to sell our products, we will implement a price skimming strategy: we

can charge prices on the top end of the V.E. general income scale, even if we lack quality.

Psychological pricing is implemented because customers will only buy our products if they

believe that they truly are otherwise unattainable.

ImagiNation Inc. is, fundamentally, a creative and fun company. We hope to inspire our

customers to unlock something extraordinary about them, making the little things not seem so

big. When our customers think Kadabra!, we want them to think of something unique,

creative, imaginative, fun and inspirational.

If we can accomplish all the goals set, we project total profit of $6,109 in this fiscal year.


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Company Description

ImagiNation Inc. is a new Virtual Enterprise firm that will operate in the novelty industry from

the High School for Arts, Imagination and Inquiry. Our firm aims to exercise the imagination of

our customers through our Kadabra! brand products. ImagiNation inc. began its first year of

operation in September, 2011 with 18 employees. The firm filed with VE Law & Management

and became incorporated as of November 5th 2011. ImagiNation Inc. is located at 122

Amsterdam Ave, Room 376, New York, NY 10023.

Mission Statement

At ImagiNation inc., it is our mission to help our customers unlock their natural potential. We

believe every human being is an individual and has something that makes them extraordinary.

We strive to create products that inspire our customers to become the best versions of

themselves.

Management Functions

Planning

ImagiNation inc. is a new novelty company with unique products. The main goal of our

company is not only to meet our sales objectives but to express our message and idea through

our products. We have objectives and strategies to meet each of these goals.

One of our first objectives is to develop a website by December . The website will be

structured to increase our sales and help express the message of our company.

Develop an aggressive advertising campaign. Our design department will work to develop ads

that express what our company represents and attract customers to our website through

placement on the VE website and other firms websites.

Establish advertising partnerships with other firms. This will be done by direct

communication with those firms. We will explore domestic and international firms that offer

advertising space on their websites.


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Have a strong appearance at both the NYC and Vienna Trade Fairs. Our strategy is to make

sure each of our employees has a clear idea of what our company is and how best to represent us.

We will use our advertising campaigns to promote these appearances.

Achieve $115,000 in sales in our first year of business . This is the amount our company would

like to achieve. If we can successfully accomplish the previous goals, we should be able to reach

this projection.

Organization

ImagiNation Inc. is a diverse firm, where each employee is placed upon their capability. We are

broken down into five departments: Administration, Sales & Marketing, Accounting & Finance,

Human Resources and Technology. The duties in each department are divided between

Executives, Vice Presidents, Managers and Associates. Each departments Executive or Manager

reports to the Chief Executive Officer. Many of our strategies and plans will require the

collaboration of several departments.

Administration

The duties of the Administration department are to support the pursuit of excellence &

innovation of our mission. Also, this department must ensure that all sales and business activities

are effective and efficient.Sales & Marketing

This department is responsible for setting and meeting sales objectives, developing new products

and conducting research to implement advertising and promotion strategies.

Accounting & Finance

The Accounting & Finance department is responsible for monitoring all financial records,

providing financial strategies, listing all planned expenses and revenues. They also manage

money owed to us (accounts receivable manager), money owed by us (accounts payable

manager), and online bank accounts. Financial reports from this department provide information

on financial performance, planning and analysis.


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Human Resources

The Human Resources department is responsible for overseeing employee activities such as

attendance, performance and possible conflicts, which they resolve through the conflict

resolution policy in the ImagiNation Inc. Employee Manual. They monitor each employees

performance through daily progress logs and evaluations. The Human Resources department also

develops methods to motivate employees. These include Employee of the Month, Music

Privileges, and Excused Dress for Success.

Technology

The technology department is responsible for maintenance of technological resources, as well as

storage and protection of information.

ImagiNation Inc. Organization Chart


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Directing

At ImagiNation Inc., we hold meetings on a daily basis, check-in meetings in the beginning and

follow-up meetings at the end of class sessions. In check-in meetings, the agenda and tasks for

the day are discussed; in follow-up meetings, each employee reports to the others about their

progress for the day and what has to be done the following day. In case of misunderstandings,

departmental meetings are arranged so that each department is on track to meet objectives.

Controlling

ImagiNation Inc. holds follow-up meetings to assure that every employee is on track and tasks in

the agenda have been accomplished. Weekly and monthly status meetings are also done to see if

the firm has achieved the projected goals for that period of time. Department evaluations are

performed to rate employee and departmental performance. Monthly meetings with department

heads compare actual results to projections.

Current Economic Conditions

Generally, expectations for improvement in global and home economies are very low. According

to a survey from McKinsey & Company, the majority of global business executives believe both

will be either the same or moderately worse 6 months from now. Their projections have become

less hopeful in subsequent surveys.

The pessimistic projections can be attributed to the instability of economic factors within the

United States. The current situation is confusing for companies. A recent decrease in personal

saving rates shows that consumers have been spending money, which is supported by the chart

on U.S. Consumer Average Daily Spending, but unemployment is still at 9%.


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These expectations affect the

economy at a company level

because factors like unemployment

and inflation affect consumers

confidence and spending, which is

alarming for a wide range of

companies in different industries.

This lowers profit expectations and

companies are forced to rearrange

their economic strategies and

review their projections.

Emerging markets have the most favorable outlook regarding their financial future. A survey,

similar to the one shown above, revealed that 58% percent of business executives in India expect

their economy to be substantially or moderately better 6 months from now. Other developing

markets have presented similar results.

In India, China and Latin America, there is little fear of low consumer demand. The positive

expectations tempt more companies into business, which increases competition and lowers

prices. As of June 2011, in North America and Europe, low consumer demand scared about 48%

of executives. Inflation in these places, along with fluctuations in currency exchange rates, poses

both opportunities and threats for global trade.

Unemployment and inflation do not affect the development and financial success of Virtual

Enterprise firms. Low consumer demand is a risk, but not a very probable threat for the success

of Kadabra! since we have exclusivity in our market.

During international trade fairs, purchases are being made by employees of VE firms from other

countries. The decrease in the value of the dollar could be an advantage for us. As we convert

our prices to other currencies, they will be comparably lower for our customers.


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Real Industry Analysis

Companies in the novelty industry can have a varied portfolio of products

such as toys, trinkets and other items. Novelties are

popular in companies such as Rickys NYC, Spencers,

and Brooklyn Superhero Supply Company, which are our

real world competitors. The Brooklyn Superhero Supply

Co. is most similar to our company. As they say on their website,1 they are the

Online purveyors of high quality crime fighting merchandise. One of their products is a Secret

Identity Starter Kit (above right) including a short brown wig, clip-on tie and plastic glasses.

Another is Muscle (above left), which comes in a 32 oz. can. Although the products are not real,

the idea is to give the customers a feeling of self improvement.

According to a report from First Research Inc, the US gift, novelty, and souvenir store industry

includes about 30,000 stores. Major companies include Hallmark, Spencer Gifts, and Disney

Stores. The industry is fragmented: the top 50 companies account for about 30 percent of sales.

The industry's revenue for the year 2010 was approximately $711.1 million USD, with an

estimated gross profit of 32.78%. Import was valued at $1.9 billion USD from 104 countries.

The industry also exported $287.8 million USD worth of merchandise to 127 countries. Adding

import value to and subtracting export value from the industry's shipment value, the total

domestic demand for the industry in 2010 was $2.3 billion USD.

A snapshot from the Small Business Development Center on Gift and Greeting Card Stores

(2006) states the following:

In order to maintain a competitive advantage, it is important for novelty shops to beunique and offer items not found in other stores. One rapidly growing trend in novelty

1http://www.superherosupply.com


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shops is the use of technology. Shops without computerized systems or an Internetpresence are at a disadvantage. Computerization and software allow the gift shop ownerto keep track of revenues, product movement, and the customers themselves.Approximately 75% of all stores have an online presence.

These current trends in the novelty industry would benefit our company because one of our most

reliable sources of revenue is the Internet.

Virtual Competition

Below is a chart listing VE firms that offer creative products. This chart also includes brief

explanations and examples of products and prices.

About Them Products Prices Website

Katz & Dogs is a firmfrom Calhoun HighSchool that sells petsand pet services suchas daycare, dentist,and grooming.

German SheppardOrange Tabby CatBlack CatWhite TigerPandaPenguin

$100$40$40$200$300$150

http://www.wix.com/colekalibat/katz-and-dogs

The Student SuperStore sellsoffice/school suppliesat high and low pricesdepending on the

chosen item or package.

Metropolis (schoolsupplies package)Lois Lane (mp3 playerand headphone package)Kryptonite (iPad andprinter)

Clark Kent (desktoppublishing package)

$39

$299.99

$659.99

$999.98

http://www.studentsuperstore.biz

Stubway sells tickets forconcerts, sport events,and theatre. The pricesvary.

Yankees vs. MetsCeltics vs. LakersHeat vs. MavericksLil Wayne and DrakeKanye West and Jay-ZUsher / Chris Brown

$52.20$120.00$120.00$82.50$105.00$82.50

http://schools.lcss.us/stubway/

Electric Avenuesellstechnologicallyadvancedproducts and

very abstract items. Product titles, for themost part, are self explanatory.

Wireless Keyboard PantMens Air Force OneSpeaker ShoeBody SuitSeadoo Sea Scooter

Off Road WheelchairSolarwing Electric GoKart

$175.00$175.00

$65.00$220.00

$1900.00$500.00

file:///C:/Users/pangel/Desktop/Untitled%20Document.htm
http://www.wix.com/colekalibat/katz-and-dogshttp://www.wix.com/colekalibat/katz-and-dogshttp://www.wix.com/colekalibat/katz-and-dogshttp://www.studentsuperstore.biz/http://www.studentsuperstore.biz/http://www.studentsuperstore.biz/http://schools.lcss.us/stubway/http://schools.lcss.us/stubway/http://schools.lcss.us/stubway/http://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://c/Users/pangel/Desktop/Untitled%20Document.htmhttp://schools.lcss.us/stubway/http://schools.lcss.us/stubway/http://www.studentsuperstore.biz/http://www.studentsuperstore.biz/http://www.wix.com/colekalibat/katz-and-dogshttp://www.wix.com/colekalibat/katz-and-dogshttp://www.wix.com/colekalibat/katz-and-dogs


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Competitive Analysis

The total sales revenue for New York City VE retail firms for 20102011 was $2,120,412.2 All

retail firms are our indirect competitors. Since we sell products directly to individuals (rather

than to other businesses, for example), we are competing with every other retail firm for the

employee dollar. We project $115,000 worth of sales for ImagiNation Inc. at the end of the fiscal

year and we hope that, with this value, we will achieve a 5% share of the NYC retail market.

Target Market

Our target market age range is generally from 15 to 21 years of age and our product appeals

equally to both men and women of any race. The general income is that of V.E. students, which

ranges from $75 to $150 a week. Most of our customers will come from the following locations:

New York, California, South Carolina, Illinois, New Jersey and Tennessee. We also anticipate a

portion of our customers will come from international firms.

In terms of psychographics, we are aiming to sell to individuals who generally search for

efficiency. We conducted a market research survey throughout the month of November. As

shown in the graph below, 50% of those who responded to our survey said they wish to improve

in time management.3

2According to the NYC VE firm financial data (FY 2010 2011).

3Results of ImagiNation Market Research Survey, November 17, 2011


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Product

Kadabra! is a new brand by ImagiNation Inc. that sells special powers. We do not literally sell

special powers, but accessories that stimulate them. The purpose of Kadabra! is to satisfy and

improve our customers. Our goal is to provide our consumers with the confidence and strength

one might need to be the best they can without actually selling any substantial power.

In the V.E industry there is much room for creativity. We have created products that satisfy our

customers needs. We want to keep producing products using the ideas of our customers. We

intend on doing this through surveys that can be found and completed on our website. We will

have a FAQ tab and How To videos for each of our products. Each special powerwill come

with an accessory or starter kit.

Products

Super Smarts: Our package to help one improve on their intelligence will come complete

with a pair of glasses that will help you feel smarter and work more efficiently.

Price: $100 Cost of goods sold: $8


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Special Voices Package: Will come complete with a microphone and wig of the celebritys

voice you have purchased.


Super Speed: Consists of a pair of sneakers with wings. These will have you going

anywhere in a flash.


Magic Carpet:This carpet will take you to A Whole New World. (Results may vary.)


Special Healing Power: Our own line of the much loved confectionary,

Pop Rocks. The idea of this is that one will feel instantly more content

because of the popping.



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Our products are designed to help the individual improve and feel better about who they are and

give them confidence so that they can think about who they want to be. Kadabra! will have a

range of prices to accommodate all consumers. We are always looking for ideas on inventing

anything new for our customers. We plan on keeping people interested in Kadabra! by

constantly conducting plenty of research so that we can stay on top of the market. Our main

priority is our costumer and their well being.

Pricing

Our focus isprice skimming. We have a substantial competitive advantage in the V.E. market for

being the only company selling the products we sell. Nevertheless, the creation of a new market

tends to attract new competitors, which would force us to decrease our prices. Thus far, our

products could be sold at a high price, even if they lack quality. However, our prices are not so

high that they will be out of reach or promote bad debt, but they are on the top end of V.E.

employees affordability. As other companies are tempted into our industry, other pricing

strategies will have to be implemented.

Psychological pricingis also a big part of our strategy. Our product depends strongly on our

customers capacity to ignore rationality and common sense for the chance of being inspired.

Much of our pricing will take psychological features into consideration. The majority of our

products have a low cost of goods sold. At the same time (and this is where the psychological

part of our business steps in), we sell many unattainable things. Because our products seem out

of reach or improbable, we assume that people are willing to pay a lot for them.

Placement

Our firm counts on four sources of revenue. Below, the total projected sales for the 2011-2012

year are depicted:

Source of Revenue Total Projected Sales for Source % of Projected SalesInternet $21,000 18%

NYC Trade Fair $50,000 43%

International Trade Fair $20,000 17%

Contractual Sales $24,300 21%

Total Projected Sales $115,300 100%


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Although trade fairs happen only now and then, we speculate that they will result in more sales

because we will have the opportunity to reach a broader audience and explain our idea,

convincing customers that they should buy our products. The internet will still be a focus when it

comes to the promotion of Kadabra! and ImagiNation Inc. Our website is being developed and is

expected to be ready by December of 2011. There, customers will be able to view and purchase

our products. In order to expand our market, we plan on building our website in a few different

languages, so that the internet continues to be a focus when regarding international sales.

Our internet sales are expected to increase gradually. We projected that the month of November

would bring about $2,000 worth of test sales made by our employees. In December, we project

sales of about $1,000, being our first month of public sales. In January we expect to increase

sales to about $3,000. In February, this number is expected to increasereaching $5,000

and it will, we hope, stay steady through the end of the fiscal year.

Promotion

For a Virtual Enterprise firm, promotion is done mostly on the internet. Our goal is to advertise

as much as possible, which means sending e-mails to promote our image, creating advertising

partnerships with other firms and include commercials on our website. In order to promote our

website internationally and reach a broader audience, we plan on building our website in various

different languages.

We are aware that our product may be difficult to understand. Therefore, we will have How To

videos on our website. This way, customers will be able to get what Kadabra! is, what it does

and how it works. When our customers have that better understanding, the products we sell are

likely to be more appealing to them.

Our initial advertising budget is $30,000 dollars: the price of three months of advertising on the

V.E. International website. Our first advertisement has been put up for the month of November

and it consists of a teaser to our brand and link to our market research survey. This, we hope, will

get people used to our name. Our next advertisements will be on the website for the course of the

months of February and March in order to promote ourselves for upcoming trade fairs.

Additional capital raised through the sale of common stock will be used to advertise with other

VE firms, including finding international partnerships.


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In order to improve our promotional strategies, it is necessary to know how successful each of

them is. To gather that information, we intend to give our customers different coupon codes

through surveys, e-mails and other means of promotion. When placing an order, customers will

be able to provide any available codes for discounts. By checking which codes are used the most,

we will know where our promotion works best and where we should focus our marketing efforts.

Positioning

ImagiNation Inc. is, fundamentally, a creative and fun company. The creation of the Kadabra!

brand allows us to sell items that will inspire our customers to unlock something extraordinary

about them because, that way, we can bring solutions and make the little things not seem so big.

When our customers think Kadabra!, we want them to think of something unique, creative,

imaginative, fun and inspirational. This is the only company that sells these products and they

are sold with the intention of inspiring imagination and providing confidence. Our authenticity is

a reflection of our customers and the idea that we want them to get from what we do.

Break Even Analysis

After doing a Break Even Analysis, we found our break-even point to be $106,316. This means

that, once we have earned that amount in sales, we will have no profit and no loss. The analysis

was done with the estimation of 20% costs of goods sold and 80% gross profit margin. Each of

our products has a different cost of goods sold and gross profit margin, but averaged together,

they come out to the aforementioned percentages. We have the opportunity to have a relatively

low break-even point because we have a fixed cost of $85,053 and very low costs of goods sold.

This is because we use a price skimming strategy: our products are not of exceptional quality,

but we have a substantial advantage for being the only ones selling them.


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S.W.O.T.

ImagiNation Inc. conducted an internal and external audit. Strengths and weaknesses are

internal factors; opportunities and threats are external factors. The results are compiled in the

chart below.

Strengths:

Communication is strong because of our dailymeeting system and organization

We have many creative employees in our firm whichhelps us offer unique products

Our idea is original and easy to deliver into ourcostumers minds

Diversity of employees

Weaknesses:

Punctuality Many of our employees havedifficulty in getting to work on time

VE Learning Curve As a new firm we are stilllearning to adapt to the VE market place

Time management Creative minds struggle tostay on task

Opportunities:

New Market is a great chance for us to deliver ouridea

New Idea that has never been introduced to themarket

Exclusivity-No direct competition

Potential to inspire our costumers

Threats:

Difficult to convey idea to customers which maylead to lower than projected sales

Failure of technology could cause problemsbecause all work is done electronically

More established retail companies that arecompeting for the retail dollar


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Risks

One of the major risks the firm faces this year is not meeting our sales goals. The chart below

indentifies three reasons that may lead to lower than projected sales.

Problem SolutionCustomers dont understand or are confusedabout our idea and products.

How To diagrams easily located andhighlighted on the website

Videos and commercials that willdeliver the idea to the customers

FAQ section on the website

Not being able to attend the international tradefair.

Refocus marketing efforts towardsincreasing web traffic and thusincreasing sales revenue

Not meeting deadlines and marketingobjectives.

Keeping up with employee progresslogs & To Do lists Daily follow up meetings

Weekly/monthly progress meetings tocompare actual results with projections

Backup Data Plan

ImagiNation Inc. has all computers connected through a network drive, which allows us to save

our work onto a public folder so that it can be revised from any computer. We have all data and

files saved in a RAID (Redundant Arrays of Inexpensive Disks) configuration so that, if there are

any problems regarding technology, we do not lose any of our work. Our VP of technology also

has a password recovery system for computers and the company e-mail.


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Financial Summary

Income Statement

This year ImagiNation Inc. began its operations in September 2011. We project $115,300 in

sales from November to April. We are hoping to participate in two trade fairs. We are projecting

to bring in $20,000 at the International trade fair and $50,000 from the NYC trade fair in March.

Our projected Internet sales are $21,000 starting from the month of November. Our projected

operating expenses from the period of September through April will be $85,053. Overall that

leaves us with a projected profit of $6,109 for FY 11/12.

Cash Budget

We received a start up loan of $80,000 in November 2011 along with $60,000 from the sale of

common stock. We assume that internet sales will be received in the following breakdown: 50%during the month of sale, 30% in the following month, and 20% in the second month. We assume

that 50% of NYC Trade Fair sales will be paid by check and the other 50% will be paid on

account. We project our total receipts by the end of April to be $258,057. Our total payments

should be $121,516. Lastly our cash balance by the end of the Fiscal Year is projected to be

$136,541.

Balance Sheet

This year we are projecting to have $136,541 in cash on April 30th, 2012 with $9,516 in accounts

receivables, bringing our total current assets to $146,657. Our fixed assets lose their value after 5

years; total depreciation for this year is $3,000. We project our total assets to be $172,657. Our

current liabilities as of April 30th , 2012 should be $9,586 in total. That includes shipping, sales

tax, salaries, payroll tax, and corporate tax. In November we received a loan of $80,000 to begin

our business. After making payments, our loan balance should be $72,539 at the conclusion of

our fiscal year. VEC invested $90,000 in ImagiNation Inc. and in exchange they received 9,000

shares of common stock. We used that money to buy our fixed assets including computers,

furniture, fixtures, and other office supplies. Overall that accounted for $30,000 and we received

the remaining $60,000 in cash which will be used to develop advertising partnerships with other

firms.


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Income Statement

FY 2011-2012Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 Totals

Sales revenues

Internet Sales 2,000 1,000 3,000 5,000 5,000 5,000 21,000NYC Trade Fair 50,000 50,000International Trade Fair 20,000 20,000Contractual Sales 24,300 24,300

Total sales revenues 0 0 2,000 25,300 3,000 25,000 55,000 5,000 115,300

Cost of goods sold or services provided 400 5,060 600 5,000 11,000 1,000 23,060

Gross profit 0 0 1,600 20,240 2,400 20,000 44,000 4,000 92,240

Operating expensesSalaries 5,400 5,400 4,050 4,050 4,050 5,400 4,050 32,400Payroll tax 413 413 310 310 310 413 310 2,479

Rent 872 872 872 872 872 872 872 872 6,975Advertising/ Promotion 10,000 10,000 10,000 30,000Trade Fair Booth 500 500 1,000Insurance 42 42 42 42 42 42 42 42 333Accounting & Legal fees 42 42 42 42 42 42 42 42 333Utilities 297 297 297 297 297 297 297 297 2,375Interest Expense 0 311 306 301 297 292 1,507Pension or 401(k) 0Depreciation 500 500 500 500 500 500 500 500 4,000Other or miscellaneous 150 500 500 500 500 500 500 500 3,650

Total operating expenses 1,902 8,065 18,065 6,923 6,918 17,413 18,862 6,904 85,053

Income from operations -1,902 -8,065 -16,465 13,317 -4,518 2,587 25,138 -2,904 7,187Other gains and lossesNet income before taxes -1,902 -8,065 -16,465 13,317 -4,518 2,587 25,138 -2,904 7,187Corporate income tax 1,078Net income after taxes -1,902 -8,065 -16,465 13,317 -4,518 2,587 25,138 -2,904 6,109

* Payroll for Oct. Nov. Mar. are based on 4 work weeks in the month. Dec. Jan. Feb. Apr. are based on 3 work weeks due to school breaks.*Other Miscellaneous expenses include office supplies*Contractual sales are capped at 75% of projected salaries


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Projected BalanceSheet

FY 2011-20124/30/2012

AssetsCurrent Assets

Cash 136,541

Investments in stocks 0

Accounts receivable 9,516

Merchandise inventory 0

Supplies 600

Total Current Assets 146,657

Fixed Assets

Computers 10,000

Less: accumulated depreciation 1,333

Furniture and fixtures 15,000

Less: accumulated depreciation 2,000Office equipment 5,000

Less: accumulated depreciation 667

Total Fixed Assets 26,000

Total Assets 172,657

Liabilities and Shareholders' Equity

Current Liabilities

Accounts payable 0

Unearned revenue 0

Shipping Payable 1,125

Sales tax payable 4,813

Salaries payable 1,789

Payroll tax payable 782

Corporate tax payable 1,078

Total Current Liabilities 9,586

Long Term Liabilities

Loan payable 72,539

Total Liabilities 82,125

Shareholders' Equity

Common stock, $10 par value, * # shares issued 90,000

Additional paid-in-capital 0Retained earnings 531

Total Shareholders' Equity 90,531

Total Liabilities and Shareholders' Equity 172,657


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Projected Cash Budget

FY 2011-2012Description September October November December January February March April

1 Cash balance at beginning of period: 0 0 112,802 129,078 120,490 120,585 134,618Receipts of cash:Internet 2,822 1,641 2,734 2,734 2,734NYC Trade Fair 42,656International Trade Fair 20,000Contractual Sales 27,641

Receipts of accounts receivable 328 1,203 2,297 11,266Loan proceeds 80,000Other 60,000

2 Total receipts 0 0 140,000 30,463 1,969 23,938 47,688 14,0003 Beginning balance + cash receipts 0 0 140,000 143,265 131,047 144,427 168,273 148,618

Payments:Cost of merchandise 400 5,060 600 5,000 11,000 1,000Salaries 4,771 3,578 3,578 3,578 4,771 3,578Accounts payable 5,913Rent 1,744 1,744 1,744 1,744 1,744 1,744Advertising/ promotion 10,000 10,000 10,000Payroll tax 782 1,042 782 782 782 1,042Insurance 500Accounting and legal fees 500Utilities 594 594 594 594 594 594Loan Payment 1,495 1,495 1,495 1,495 1,495 1,495Pension, 401(k)

Sales tax 175 2,520

Shipping 1,265 150 250 2,125Other or miscellaneous 500 500 500 500 500 500Corporate tax

4 Total payments 0 0 27,198 14,188 10,557 23,842 33,655 12,0785 Cash balance at end of period 0 0 112,802 129,078 120,490 120,585 134,618 136,541

6 Net increase or decrease in cash 0 0 112,802 16,276 -8,588 96 14,033 1,922

* Accounts payable for November includes payroll, rent, utilities for October* Salaries is based on projected net pay* Payroll tax includes employee with holdings and company payroll tax expense* We assume that internet sales will be received in the following breakdown: 50% month of sale,30% following month, 20% second month.* We assume that 50% of internet sales will come from NYS residents and subject to VEC sales tax of 8.75%* We assume that shipping costs will be $5 per $100 in sales and will be paid by the customer* We assume that 50% of NYC trade fair sales will be paid by check, the other 50% will be paid on account.* Shipping is paid the following month.* Other receipts of cash from VEC for sale of 6,000 shares of common stock.


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Appendix

ImagiNation Inc. Bank Statement

Loan Amortization Table

ImagiNation Inc.Loan Amortization Table

Loan Information SummaryLoan Amount

(Principal) 80,000Rate (per

period) 0.3958%

Annual InterestRate 4.75%

Number ofPayments 60

Term of Loan inYears 5

Total ofPayments 89,678.20

# of Payments perYear 12 Total Interest 9,678.20

Payment Type beginning of periodMonthly Payment ($1,494.64)

No. PrincipalInterest for the

PeriodTotal BalanceOutstanding

Payment for theperiod

PrincipalReduction

Revised BalanceOutstanding

1 80,000 0.00 80,000.00 1494.64 1494.64 78,505.36

2 78505.36 310.75 78,816.11 1494.64 1183.89 77,321.48

3 77321.48 306.06 77,627.54 1494.64 1188.57 76,132.90

4 76132.90 301.36 76,434.26 1494.64 1193.28 74,939.63

5 74939.63 296.64 75,236.26 1494.64 1198.00 73,741.63

6 73741.63 291.89 74,033.52 1494.64 1202.74 72,538.88

7 72538.88 287.13 72,826.02 1494.64 1207.50 71,331.38

8 71331.38 282.35 71,613.73 1494.64 1212.28 70,119.10

9 70119.10 277.55 70,396.65 1494.64 1217.08 68,902.01

10 68902.01 272.74 69,174.75 1494.64 1221.90 67,680.12

11 67680.12 267.90 67,948.02 1494.64 1226.74 66,453.38

12 66453.38 263.04 66,716.42 1494.64 1231.59 65,221.79


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13 65221.79 258.17 65,479.96 1494.64 1236.47 63,985.32

14 63985.32 253.28 64,238.60 1494.64 1241.36 62,743.96

15 62743.96 248.36 62,992.32 1494.64 1246.28 61,497.68

16 61497.68 243.43 61,741.11 1494.64 1251.21 60,246.48

17 60246.48 238.48 60,484.95 1494.64 1256.16 58,990.31

18 58990.31 233.50 59,223.82 1494.64 1261.13 57,729.18

19 57729.18 228.51 57,957.69 1494.64 1266.13 56,463.06

20 56463.06 223.50 56,686.55 1494.64 1271.14 55,191.92

21 55191.92 218.47 55,410.39 1494.64 1276.17 53,915.75

22 53915.75 213.42 54,129.17 1494.64 1281.22 52,634.53

23 52634.53 208.35 52,842.87 1494.64 1286.29 51,348.24

24 51348.24 203.25 51,551.49 1494.64 1291.38 50,056.85

25 50056.85 198.14 50,255.00 1494.64 1296.49 48,760.36

26 48760.36 193.01 48,953.37 1494.64 1301.63 47,458.73

27 47458.73 187.86 47,646.59 1494.64 1306.78 46,151.95

28 46151.95 182.68 46,334.64 1494.64 1311.95 44,840.00

29 44840.00 177.49 45,017.49 1494.64 1317.15 43,522.86

30 43522.86 172.28 43,695.13 1494.64 1322.36 42,200.5031 42200.50 167.04 42,367.54 1494.64 1327.59 40,872.90

32 40872.90 161.79 41,034.69 1494.64 1332.85 39,540.06

33 39540.06 156.51 39,696.57 1494.64 1338.12 38,201.93

34 38201.93 151.22 38,353.15 1494.64 1343.42 36,858.51

35 36858.51 145.90 37,004.41 1494.64 1348.74 35,509.77

36 35509.77 140.56 35,650.33 1494.64 1354.08 34,155.70

37 34155.70 135.20 34,290.90 1494.64 1359.44 32,796.26

38 32796.26 129.82 32,926.08 1494.64 1364.82 31,431.44

39 31431.44 124.42 31,555.86 1494.64 1370.22 30,061.22

40 30061.22 118.99 30,180.21 1494.64 1375.64 28,685.58

41 28685.58 113.55 28,799.12 1494.64 1381.09 27,304.49

42 27304.49 108.08 27,412.57 1494.64 1386.56 25,917.93

43 25917.93 102.59 26,020.52 1494.64 1392.04 24,525.89

44 24525.89 97.08 24,622.97 1494.64 1397.56 23,128.33

45 23128.33 91.55 23,219.88 1494.64 1403.09 21,725.24

46 21725.24 86.00 21,811.24 1494.64 1408.64 20,316.60

47 20316.60 80.42 20,397.02 1494.64 1414.22 18,902.39

48 18902.39 74.82 18,977.21 1494.64 1419.81 17,482.57

49 17482.57 69.20 17,551.77 1494.64 1425.43 16,057.14

50 16057.14 63.56 16,120.70 1494.64 1431.08 14,626.06

51 14626.06 57.89 14,683.95 1494.64 1436.74 13,189.32

52 13189.32 52.21 13,241.52 1494.64 1442.43 11,746.89

53 11746.89 46.50 11,793.39 1494.64 1448.14 10,298.7554 10298.75 40.77 10,339.51 1494.64 1453.87 8,844.88

55 8844.88 35.01 8,879.89 1494.64 1459.63 7,385.25

56 7385.25 29.23 7,414.49 1494.64 1465.40 5,919.85

57 5919.85 23.43 5,943.28 1494.64 1471.20 4,448.65

58 4448.65 17.61 4,466.25 1494.64 1477.03 2,971.6259 2971.62 11.76 2,983.38 1494.64 1482.87 1,488.7460 1488.74 5.89 1,494.64 1494.64 1488.74 (0.00)

Totals 9,678.20 89,678.20 80,000.00


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Kadabra! Teaser Advertisement


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ImagiNation Inc. SurveyThank you for taking the time to fill out our survey. This survey will help us meet your needs as acustomer.* Required

Gender*

Male

Female

Age *

14 or younger

15

16

17

18

19 or older

Current Grade *

9th

10th

11th

12th

College

Are you an employee of a Virtual Enterprise firm? *

Yes

No

What state (or country) do you live in? *

How often are you late to work/school? *

Often

Sometimes

Not very often

Never


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One (or more) aspect(s) of yourself that you would like to improve is/areSelect all that apply

Time management

Efficiency

Punctuality

Intelligence

Artistic ability

Confidence

Sense of style

Sense of humor

Other:

If you could have any of these superpowers, which would it be?Select all that apply

Super speed Super intelligence

Invisibility

Increased healing speed

Artistic talent

Other:

Would you be willing to pay for a product that would improve abilities of your choice?

Yes

No

Maybe

Submit

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ImagiNation Inc. 2011-2012 Business Plan

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