36
Ritual Company, LLC Business Plan TM
Ritual Company, LL CBusiness Plan
TM
1.0 Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41.3 Past Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41.4 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51.5 Company Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
2.0 Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62.1 Product and Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82.2 Future Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
3.0 Market Analysis Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.1 Market Segmentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.3 Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.4 Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.0 Strategy and Marketing Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.2 Press and Media Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.3 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.3.1 Marketing Strategy for Men. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.3.2 Marketing Strategy for Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.4 Marketing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164.5 Coffee Sleeve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174.6 Billboard Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.0 Financial Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216.2 Sales Assumptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226.3 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236.4 Projected Profit and Loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246.5 Projected Cash Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266.6 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276.7 Sensitivity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Citations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Table of Contents
ContactTy Lifeset
Phone: (310) 849-5798
E-mail: [email protected]
Scott McEwen
Phone: (310) 918-3509
E-mail: [email protected]
1.0 Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31.2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41.3 Past Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41.4 Company Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51.5 Company Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
2.0 Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62.1 Product and Service Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82.2 Future Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
3.0 Market Analysis Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.1 Market Segmentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.3 Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.4 Competitive Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.0 Strategy and Marketing Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.1 Competitive Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.2 Press and Media Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.3 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.3.1 Marketing Strategy for Men. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.3.2 Marketing Strategy for Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.4 Marketing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164.5 Coffee Sleeve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174.6 Billboard Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5.0 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185.1 Personnel Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.0 Financial Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206.1 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216.2 Sales Assumptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226.3 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236.4 Projected Profit and Loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246.5 Projected Cash Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266.6 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276.7 Sensitivity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Citations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Table of Contents
ContactTy Lifeset
Phone: (310) 849-5798
E-mail: [email protected]
Scott McEwen
Phone: (310) 918-3509
E-mail: [email protected]
R itual Company, LLC (dba “Ritual” and also referred to as “the Company”) is an existing Los Angeles-based company
with definitive proof of concept that is seeking funding to expand operations. Ritual is a line of innovative men’s grooming products based on the age-old male morning ritual known as the “Triple S” (Sh!t, Shower and Shave). With its line of shaving cream, aftershave balm, and hair, body, and face wash, as well as innovative products like a toilet deodorizer and shaving blade antiseptic, Ritual takes a traditional, masculine approach to everyday grooming and maintenance. With strong branding and a rugged image, the Company has experienced initial success in the local, national, and international markets. These markets are flooded with non-solution-based, metrosexual-oriented products that miss the mark – Ritual is poised to fulfill this unique selling proposition with its innovative and solution-driven product line. As the Company expands, it plans to increase its market penetration and gain more exposure, bol-ster its website, introduce a new line of products to the market, and eventually bring the products’ fulfillment and distribution in-house to streamline the process and increase profit margins.
The Company will distribute its products through online retailers, brick-and-mortar retail stores, and through its website, www.YourRitual.com. Ritual’s range of distribution channels will allow it to effectively tap into the booming men’s groom-ing industry. In 2006, men’s grooming products reached more than $2.4 billion in sales; similarly, men’s toiletries topped out at almost $2.7 billion. These figures represent a 54% and 44% increase in sales, respectively, since 1997. The market is expected to continue to grow, with grooming products reaching $5.2 billion and toiletries reach-ing $2.7 billion by 2010. The Company will create a niche with its essential, unique, and innovative products made for men, by men. Ritual will target men who value self-image, but do not want to com-
promise their masculinity. The Company also will have programs to reach the wives and girlfriends of their target male demographic – an unprec-edented approach in this category. Operating in the Toiletries sub-sector of the larger wholesale Drugs, Proprietaries, and Sundries industry, the Company will compete with 242 nationwide com-panies that earn average revenues of $4.4 million. Ritual’s direct competition will come from spe-cialty men’s grooming lines, including Jack Black, Anthony Logistics, and Art of Shaving. However, the Company will outperform its competition with a simplified, yet innovative product line and an image that resonates with manly tradition.
Ritual Company recognizes that its unique prod-uct line must be complemented by a distinctive representation of its goals and merchandise. The Company’s marketing strategy in regard to men aligns the brand with men’s daily rituals: drink-ing coffee and reading newspapers (online and in-home). For these activities, Ritual will identify a vehicle to deliver sample products to the con-sumer. For instance, in coffee shops consumers will find sample products fastened to their coffee sleeves (see section 4.5 Coffee Sleeve Program)and on Sunday mornings, they’ll find samples in their newspaper’s polybag (plastic wrap). It is Ritual’s belief that consumer acquisition starts with product trial which will lead to the highest conversion rates. The Company is confident that once a “Barbasol Man” tries Ritual, he won’t ever go back. As brand recognition occurs, brand loyalty and ultimately brand equity will ensue. This will secure the necessary capital to advance its line of merchandise and expand its marketing avenues to reach a global audience.
Regarding operations currently in place, the Com-pany has already leveraged its definitive proof of concept to ramp up several elements of market penetration. It should be noted that a large amount of inventory has already been acquired, stored, and
is awaiting distribution. As such, the Company has cut down on delivery lag times from manufacturing suppliers, and though the ample inventory creates a bias in projections depicting a first year loss, the Company’s model, method, and marketing assure a different picture upon correction.
The Company is owned and operated by Ty Lifeset and Scott McEwen. Mr. Lifeset is a for-mer creative executive for advertising agencies and marketing companies, with clients such as Nintendo, Playboy, and Gateway Computers.
He also has extensive experience in the beauty and hygiene industries. Mr. McEwen is a for-mer creative executive, as well. He has helped develop marketing and communications for brands such as Carl’s Jr. and BMW. He also founded and currently operates his own hous-ing development company.
To achieve the Company’s objectives, Ritual Company is seeking $1 million in total funding through outside investment.
1.0 Executive Summary
1.1 ObjectivesThe following table and graphs illustrate the financial goals of the Company over the next five years:
-$1,000
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Operating Highlights By Year ($000)
Sales Gross Margin EBITDA Net Income
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Sales By Year ($000)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Cash Flow By Year ($000)
Net Cash Flow Cash Balance
-$500
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Net Income By Year ($000)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Year 2 Year 3 Year 4
Sales 19 20 21 22 23 24 25 27 28 29 31 32 300 753 1567 3100
Gross Margin 12 13 13 14 15 16 16 17 18 19 20 21 194 505 1057 2102
Operating Expenses 22 22 22 22 22 22 22 22 22 22 22 22 259 397 557 599
EBITDA (9) (9) (8) (7) (7) (6) (5) (4) (3) (2) (2) (1) (63) 111 505 1510
Net Income (9) (9) (8) (7) (7) (6) (5) (4) (4) (3) (2) (1) (64) 108 500 1503
Gross Margin/Sales 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 67% 67% 68%EBITDA/Sales -49% -43% -38% -33% -29% -24% -20% -16% -12% -8% -5% -2% -21% 15% 32% 49%
Net Income/Sales -50% -44% -39% -34% -29% -25% -21% -16% -13% -9% -5% -2% -21% 14% 32% 48%
Net Cash Flow 833 (9) (9) (8) (7) (7) (6) (5) (4) (4) (3) (2) 769 33 366 1260
Cash Balance - Ending 837 828 819 811 804 797 791 786 781 778 775 773 773 806 1172 2432
Financial Highlights ($000)
32
R itual Company, LLC (dba “Ritual” and also referred to as “the Company”) is an existing Los Angeles-based company
with definitive proof of concept that is seeking funding to expand operations. Ritual is a line of innovative men’s grooming products based on the age-old male morning ritual known as the “Triple S” (Sh!t, Shower and Shave). With its line of shaving cream, aftershave balm, and hair, body, and face wash, as well as innovative products like a toilet deodorizer and shaving blade antiseptic, Ritual takes a traditional, masculine approach to everyday grooming and maintenance. With strong branding and a rugged image, the Company has experienced initial success in the local, national, and international markets. These markets are flooded with non-solution-based, metrosexual-oriented products that miss the mark – Ritual is poised to fulfill this unique selling proposition with its innovative and solution-driven product line. As the Company expands, it plans to increase its market penetration and gain more exposure, bol-ster its website, introduce a new line of products to the market, and eventually bring the products’ fulfillment and distribution in-house to streamline the process and increase profit margins.
The Company will distribute its products through online retailers, brick-and-mortar retail stores, and through its website, www.YourRitual.com. Ritual’s range of distribution channels will allow it to effectively tap into the booming men’s groom-ing industry. In 2006, men’s grooming products reached more than $2.4 billion in sales; similarly, men’s toiletries topped out at almost $2.7 billion. These figures represent a 54% and 44% increase in sales, respectively, since 1997. The market is expected to continue to grow, with grooming products reaching $5.2 billion and toiletries reach-ing $2.7 billion by 2010. The Company will create a niche with its essential, unique, and innovative products made for men, by men. Ritual will target men who value self-image, but do not want to com-
promise their masculinity. The Company also will have programs to reach the wives and girlfriends of their target male demographic – an unprec-edented approach in this category. Operating in the Toiletries sub-sector of the larger wholesale Drugs, Proprietaries, and Sundries industry, the Company will compete with 242 nationwide com-panies that earn average revenues of $4.4 million. Ritual’s direct competition will come from spe-cialty men’s grooming lines, including Jack Black, Anthony Logistics, and Art of Shaving. However, the Company will outperform its competition with a simplified, yet innovative product line and an image that resonates with manly tradition.
Ritual Company recognizes that its unique prod-uct line must be complemented by a distinctive representation of its goals and merchandise. The Company’s marketing strategy in regard to men aligns the brand with men’s daily rituals: drink-ing coffee and reading newspapers (online and in-home). For these activities, Ritual will identify a vehicle to deliver sample products to the con-sumer. For instance, in coffee shops consumers will find sample products fastened to their coffee sleeves (see section 4.5 Coffee Sleeve Program)and on Sunday mornings, they’ll find samples in their newspaper’s polybag (plastic wrap). It is Ritual’s belief that consumer acquisition starts with product trial which will lead to the highest conversion rates. The Company is confident that once a “Barbasol Man” tries Ritual, he won’t ever go back. As brand recognition occurs, brand loyalty and ultimately brand equity will ensue. This will secure the necessary capital to advance its line of merchandise and expand its marketing avenues to reach a global audience.
Regarding operations currently in place, the Com-pany has already leveraged its definitive proof of concept to ramp up several elements of market penetration. It should be noted that a large amount of inventory has already been acquired, stored, and
is awaiting distribution. As such, the Company has cut down on delivery lag times from manufacturing suppliers, and though the ample inventory creates a bias in projections depicting a first year loss, the Company’s model, method, and marketing assure a different picture upon correction.
The Company is owned and operated by Ty Lifeset and Scott McEwen. Mr. Lifeset is a for-mer creative executive for advertising agencies and marketing companies, with clients such as Nintendo, Playboy, and Gateway Computers.
He also has extensive experience in the beauty and hygiene industries. Mr. McEwen is a for-mer creative executive, as well. He has helped develop marketing and communications for brands such as Carl’s Jr. and BMW. He also founded and currently operates his own hous-ing development company.
To achieve the Company’s objectives, Ritual Company is seeking $1 million in total funding through outside investment.
1.0 Executive Summary
1.1 ObjectivesThe following table and graphs illustrate the financial goals of the Company over the next five years:
-$1,000
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Operating Highlights By Year ($000)
Sales Gross Margin EBITDA Net Income
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Sales By Year ($000)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Cash Flow By Year ($000)
Net Cash Flow Cash Balance
-$500
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Net Income By Year ($000)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Year 2 Year 3 Year 4
Sales 19 20 21 22 23 24 25 27 28 29 31 32 300 753 1567 3100
Gross Margin 12 13 13 14 15 16 16 17 18 19 20 21 194 505 1057 2102
Operating Expenses 22 22 22 22 22 22 22 22 22 22 22 22 259 397 557 599
EBITDA (9) (9) (8) (7) (7) (6) (5) (4) (3) (2) (2) (1) (63) 111 505 1510
Net Income (9) (9) (8) (7) (7) (6) (5) (4) (4) (3) (2) (1) (64) 108 500 1503
Gross Margin/Sales 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 67% 67% 68%EBITDA/Sales -49% -43% -38% -33% -29% -24% -20% -16% -12% -8% -5% -2% -21% 15% 32% 49%
Net Income/Sales -50% -44% -39% -34% -29% -25% -21% -16% -13% -9% -5% -2% -21% 14% 32% 48%
Net Cash Flow 833 (9) (9) (8) (7) (7) (6) (5) (4) (4) (3) (2) 769 33 366 1260
Cash Balance - Ending 837 828 819 811 804 797 791 786 781 778 775 773 773 806 1172 2432
Financial Highlights ($000)
32
“To make every guy’s daily grooming and maintenance ritual the
best possible experience with an innovative approach to solutions,
higher quality ingredients, and harder working, more accessible
products that easily fit into their everyday lives.”
.ainrofilaCfoetatsehtnideretsiger)CLL(ynapmoCytilibaiLdetimiLaeblliwynapmoClautiRThe Company will be jointly owned by Ty Lifeset (50%) and Scott McEwen (50%).
Ritual Company, LLC will be located in Los Angeles, California.
1.2 MissionThe Company’s mission statement is as follows:
1.3 Past Performance
1.4 Company Ownership
1.5 Company Location
Past Performance CurrentSales $80,735Gross Margin $55,708Gross Margin % 69%Operating Expenses $53,777
Balance Sheet CurrentCurrent AssetsCash $4,118Other Current Assets $60,884Total Current Assets $100,002
Long-term AssetsLong-term Assets $3,123Accumulated Depreciation $0Total Long-term Assets $3,123
Total Assets $103,126
Current LiabilitiesAccounts Payable $0
Current Borrowing $126,949Other Current Liabilities $1,025Total Current Liabilities $127,974
Long-term Liabilities $0Total Liabilities $127,974
Paid-in Capital $0
Retained Earnings $0Earnings ($24,848)
Total Capital ($24,848)
Total Capital and Liabilitie $103,126
-$10 000
$0
$20,000
$40,000
$60,000
$80,000
Sales
-$70,000
-$60,000
-$50,000
-$40,000
-$30,000
-$20,000
-$10,000
Current
Gross Margin
Earnings
4 5
“To make every guy’s daily grooming and maintenance ritual the
best possible experience with an innovative approach to solutions,
higher quality ingredients, and harder working, more accessible
products that easily fit into their everyday lives.”
.ainrofilaCfoetatsehtnideretsiger)CLL(ynapmoCytilibaiLdetimiLaeblliwynapmoClautiRThe Company will be jointly owned by Ty Lifeset (50%) and Scott McEwen (50%).
Ritual Company, LLC will be located in Los Angeles, California.
1.2 MissionThe Company’s mission statement is as follows:
1.3 Past Performance
1.4 Company Ownership
1.5 Company Location
Balance Sheet CurrentCurrent AssetsCash $4,118Other Current Assets $60,884Total Current Assets $100,002
Long-term AssetsLong-term Assets $3,123Accumulated Depreciation $0Total Long-term Assets $3,123
Total Assets $103,126
Current LiabilitiesAccounts Payable $0
Current Borrowing $126,949Other Current Liabilities $1,025Total Current Liabilities $127,974
Long-term Liabilities $0Total Liabilities $127,974
Paid-in Capital $0
Retained Earnings $0Earnings ($24,848)
Total Capital ($24,848)
Total Capital and Liabilitie $103,126
-$10 000
$0
$20,000
$40,000
$60,000
$80,000
Sales
-$70,000
-$60,000
-$50,000
-$40,000
-$30,000
-$20,000
-$10,000
Current
Gross Margin
Earnings
4 5
2.0 Products and ServicesRitual:
Nature Calls Toilet Deodorizer
Trifecta Body, Hair, and Face Wash
Razor Rinse Shaving Blade Antiseptic
The Whip Shave Cream
The Balm Post-Shave Gel
The Kit
Shave Kit (available online)
Product Samples
Future products and services:
Website experience
New men’s grooming products
Travel Kit
Women’s products (As a sister company – Ritual is only for men)
Ritual is a line of men’s grooming products designed to simplify daily maintenance by paring down the process to a familiar
routine: Sh!t, Shower and Shave. Currently, the line consists of five products. Ritual is branded to appeal to the everyday, manly man who wants to put his best face forward without sacrificing masculinity. Each product is packaged in a sleek, black bottle with a well-designed, simple label. Ritual’s logo and packaging are precisely emblematic of the fact that the Company, its ideals, and products bridge the perceived gap between a more traditional masculinity and the emerging masculine dynamic of the present.
This is a product presentation that conjures the ultimate American aesthetic of the Old West, while simultaneously communicating an inher-ent ingenuity and innovation surrounding Ritual and its market offerings. Products such as the “Nature Calls Toilet Deodorizer” and “Razor Rinse Shaving Blade Antiseptic” are truly first-to-market products that speak well of the Company’s future intentions to push the industry in unexplored and necessary directions.
The Company will form synergistic connections with hotels, men’s commerce companies, barber-shops and salons, and other strategic partners to distribute products or private labeling services
(see section 4.3 Marketing Programs: Co-op Market-ing and Partnerships). So-called “private labeling” has proven highly effective in the skin care and grooming industries, and Ritual believes such business-to-business (B2B) relationships will sig-nificantly impact revenues. These relationships will be developed and cultivated as the Company begins market penetration.
To support its existing line of products, the Com-pany plans to launch an Internet “experience” to create a lifestyle and community around the Ritual. The Company’s website – www.YourRitual.com – will contain social networks within the site
through corollary URLs. One such link – www.ShitShowerandShave.com – will be a forum where men can post questions and discuss shaving, products, and other grooming advice. Eventually, Ritual will complement its original line with more products such as pre-shave oil, face moisturizer, shave brushes, travel kits, accessories, and more. The Company’s existing products and future goods and services are outlined above.
76
2.0 Products and ServicesRitual:
Nature Calls Toilet Deodorizer
Trifecta Body, Hair, and Face Wash
Razor Rinse Shaving Blade Antiseptic
The Whip Shave Cream
The Balm Post-Shave Gel
The Kit
Shave Kit (available online)
Product Samples
Future products and services:
Website experience
New men’s grooming products
Travel Kit
Women’s products (As a sister company – Ritual is only for men)
Ritual is a line of men’s grooming products designed to simplify daily maintenance by paring down the process to a familiar
routine: Sh!t, Shower and Shave. Currently, the line consists of five products. Ritual is branded to appeal to the everyday, manly man who wants to put his best face forward without sacrificing masculinity. Each product is packaged in a sleek, black bottle with a well-designed, simple label. Ritual’s logo and packaging are precisely emblematic of the fact that the Company, its ideals, and products bridge the perceived gap between a more traditional masculinity and the emerging masculine dynamic of the present.
This is a product presentation that conjures the ultimate American aesthetic of the Old West, while simultaneously communicating an inher-ent ingenuity and innovation surrounding Ritual and its market offerings. Products such as the “Nature Calls Toilet Deodorizer” and “Razor Rinse Shaving Blade Antiseptic” are truly first-to-market products that speak well of the Company’s future intentions to push the industry in unexplored and necessary directions.
The Company will form synergistic connections with hotels, men’s commerce companies, barber-shops and salons, and other strategic partners to distribute products or private labeling services
(see section 4.3 Marketing Programs: Co-op Market-ing and Partnerships). So-called “private labeling” has proven highly effective in the skin care and grooming industries, and Ritual believes such business-to-business (B2B) relationships will sig-nificantly impact revenues. These relationships will be developed and cultivated as the Company begins market penetration.
To support its existing line of products, the Com-pany plans to launch an Internet “experience” to create a lifestyle and community around the Ritual. The Company’s website – www.YourRitual.com – will contain social networks within the site
through corollary URLs. One such link – www.ShitShowerandShave.com – will be a forum where men can post questions and discuss shaving, products, and other grooming advice. Eventually, Ritual will complement its original line with more products such as pre-shave oil, face moisturizer, shave brushes, travel kits, accessories, and more. The Company’s existing products and future goods and services are outlined above.
76
The Company will make Ritual a lifestyle. As such, it plans to immediately add an interactive website and will slowly roll out new products to modify its line and avoid stagnation in the market. These future products and services are detailed below:
Ritual’s Website Experience:
Ritual plans to turn its current website – www.YourRi-tual.com – into an interactive experience that will cre-ate a community of Ritual Men. The site will feature user-generated forums and social networks such as:
www.ShitShowerandShave.com: This site will feature a shaving and grooming forum for men. Registered users will be able to post tips, peruse others’ habits and comments, and chat with other Ritual Men online.
www.RateMyStache.com: This site will be dedi-cated to finding the best mustaches in the country. Men can log on and post pictures of their “staches,” rate others, and post comments regarding photos
Every need of a man’s morning Ritual is addressed by one of the Company’s prod-ucts. The exclusive line is made from quality ingredients and natural extracts that mois-turize the hair and skin, soothe the face, and increase protection and comfort for better results during shaving. Ritual sells its body, hair. and face wash, Trifecta, in an eight ounce bottle; the Whip shaving cream in a six ounce bottle; and the Balm and Razor Rinse in four ounce bottles. The Nature Calls toilet
deodorizer is designed to be used sparingly and is packaged in a .5 ounce bottle. Cus-tomers can purchase items separately or together in The Kit, which is packaged in a wooden box with the Ritual logo branded on the front. Additionally, Ritual will produce small product samples for distribution within various, original marketing campaigns and other appropriate outlets. The Company’s current line of five products is explained in detail below:
2.1 Product and Service Description
2.2 Future Products and Services
The Balm:
The Balm has fresh cooling
aloe and lidocaine to
extinguish burning after a
shave. The tea tree oil and
witch hazel will continue to
work throughout the day
(or night) to soothe the skin
and prevent irritation from
shaving. It’s the perfect
ending to the “Triple S.”
Razor Rinse:
Razor Rinse kills harm-
ful staph bacteria, the
primary cause of razor burn,
unsightly red bumps, and in-
grown hairs. Other products
treat bumps post-shave,
after the harm has already
been done. Made with tea
tree oil, Razor Rinse also
acts as a blade lubricant for
a smoother shave.
The Whip:
The Whip is a richly
lathered shave cream that
spreads easily across
the face and neck no
matter how thick the facial
hair. It calms with aloe,
chamomile, and cucumber
extracts and contains just
enough lidocaine to reduce
the burning and redness
that result from shaving.
Nature Calls:
Just two drops of Nature
Calls in the toilet prior to
doing one’s business oblit-
erates any odor. This truly
revolutionary, plant-extract-
derived solution does not
just cover up unpleasant
smells, it eliminates them.
It’s the perfect way to kickoff
the “Triple S” (say goodbye
to the courtesy flush).
Trifecta:
Trifecta takes three essential
shower products and packs
them into an all-in-one
body, hair, and face wash.
It is specially formulated to
lather up with ease in both
hard and soft water. Trifecta
has powerful dirt-defying
suds and moisturizes with
soy and wheat proteins for a
spic-and-span feeling from
head to toe.
on the site. The Company will run contests for free products, as well as a “Best ‘Stache for Cash” con-test for the top ranked mustache.
Future Products:
Pre-shave Oil
Badger Bristle Shave Brush
Lip Balm
Razor Cut Antiseptic
Face Moisturizer (SPF 15)
New fragrances for all products, sold as a separate line
Travel Kit: Contains 3 oz. bottles of all products in Ritual branded plastic bag (to meet FAA requirements)
Women’s products (The Company may expand its product line to market to this important segment; for example, Ritual has already received requests for a feminine Nature Calls toilet deodorizer.)
8 9
The Company will make Ritual a lifestyle. As such, it plans to immediately add an interactive website and will slowly roll out new products to modify its line and avoid stagnation in the market. These future products and services are detailed below:
Ritual’s Website Experience:
Ritual plans to turn its current website – www.YourRi-tual.com – into an interactive experience that will cre-ate a community of Ritual Men. The site will feature user-generated forums and social networks such as:
www.ShitShowerandShave.com: This site will feature a shaving and grooming forum for men. Registered users will be able to post tips, peruse others’ habits and comments, and chat with other Ritual Men online.
www.RateMyStache.com: This site will be dedi-cated to finding the best mustaches in the country. Men can log on and post pictures of their “staches,” rate others, and post comments regarding photos
Every need of a man’s morning Ritual is addressed by one of the Company’s prod-ucts. The exclusive line is made from quality ingredients and natural extracts that mois-turize the hair and skin, soothe the face, and increase protection and comfort for better results during shaving. Ritual sells its body, hair. and face wash, Trifecta, in an eight ounce bottle; the Whip shaving cream in a six ounce bottle; and the Balm and Razor Rinse in four ounce bottles. The Nature Calls toilet
deodorizer is designed to be used sparingly and is packaged in a .5 ounce bottle. Cus-tomers can purchase items separately or together in The Kit, which is packaged in a wooden box with the Ritual logo branded on the front. Additionally, Ritual will produce small product samples for distribution within various, original marketing campaigns and other appropriate outlets. The Company’s current line of five products is explained in detail below:
2.1 Product and Service Description
2.2 Future Products and Services
The Balm:
The Balm has fresh cooling
aloe and lidocaine to
extinguish burning after a
shave. The tea tree oil and
witch hazel will continue to
work throughout the day
(or night) to soothe the skin
and prevent irritation from
shaving. It’s the perfect
ending to the “Triple S.”
Razor Rinse:
Razor Rinse kills harm-
ful staph bacteria, the
primary cause of razor burn,
unsightly red bumps, and in-
grown hairs. Other products
treat bumps post-shave,
after the harm has already
been done. Made with tea
tree oil, Razor Rinse also
acts as a blade lubricant for
a smoother shave.
The Whip:
The Whip is a richly
lathered shave cream that
spreads easily across
the face and neck no
matter how thick the facial
hair. It calms with aloe,
chamomile, and cucumber
extracts and contains just
enough lidocaine to reduce
the burning and redness
that result from shaving.
Nature Calls:
Just two drops of Nature
Calls in the toilet prior to
doing one’s business oblit-
erates any odor. This truly
revolutionary, plant-extract-
derived solution does not
just cover up unpleasant
smells, it eliminates them.
It’s the perfect way to kickoff
the “Triple S” (say goodbye
to the courtesy flush).
Trifecta:
Trifecta takes three essential
shower products and packs
them into an all-in-one
body, hair, and face wash.
It is specially formulated to
lather up with ease in both
hard and soft water. Trifecta
has powerful dirt-defying
suds and moisturizes with
soy and wheat proteins for a
spic-and-span feeling from
head to toe.
on the site. The Company will run contests for free products, as well as a “Best ‘Stache for Cash” con-test for the top ranked mustache.
Future Products:
Pre-shave Oil
Badger Bristle Shave Brush
Lip Balm
Razor Cut Antiseptic
Face Moisturizer (SPF 15)
New fragrances for all products, sold as a separate line
Travel Kit: Contains 3 oz. bottles of all products in Ritual branded plastic bag (to meet FAA requirements)
Women’s products (The Company may expand its product line to market to this important segment; for example, Ritual has already received requests for a feminine Nature Calls toilet deodorizer.)
8 9
T he market for men’s grooming products has grown at an exponential rate over the past few years as more men show an
increased interest in personal appearance and hygiene. In the United States, the men’s groom-ing market is expected to top $5.1 billion in 2010, while the toiletries market will reach almost $2.7 million in sales. A 2004 report by ACNielson revealed that the growth in the international personal care market “was impacted by the introduction of new male-oriented products.”1
Additionally, last year men spent more than $16 bill ion on cosmetics and associated goods internationally. The market looks set to expand further as overall global sales of men’s’ cosmet-ics is predicted to reach 67% by 2008, a figure that equals $19.5 billion. 2 The following table, provided by Euromonitor, illustrates the growth of the U.S. men’s personal care market:
Currently, the Company sells its products through three channels: direct sales through www.YourRitual.com, other online retailers,and brick and mortar retailers such as style boutiques. Second party retailers (B2B) com-prise one of the Company’s two target markets. The other target market includes consumers who purchase the products directly from the Company or from retail stores, or business-to-consumer (B2C). Both market segments are detailed below.
Retailers (B2B):
Online retailers: Currently, the Company targets popular online storefronts including Shopintu-ition.com, Mensessentials.com, and Groom-inglounge.com to sell its products to Internet consumers. It also has its own affiliate sales with Amazon.com’s “Gold Merchant Program.”
Brick and mortar retailers: The Company will target small style boutiques in large metropoli-tan cities. Ritual is currently sold in specialty stores in California, New York, Minnesota, Massachusetts, Pennsylvania, Kansas, North Carolina, and Virginia. Also, international sales have already reached Canada, Ireland, Austra-lia, and Israel. The Company plans to place its products in department stores, salons, hotels, spas, and unique gift stores to reach a larger market of customers.
Consumers (B2C):
Primary customers
Men
Ages 18-49
Value self-image and latest trends
Active
Professional
Middle to higher incomes
Secondary customers
Women (specifically women with husbands or boyfriends)
Ages 18-49
Image conscious
Purchases beauty products
Middle to higher income
Business Analyst Online reports that there are approximately 61, 208, 830 U.S. individu-als earning incomes between $50,000 and $200,000 presently. With roughly 150 million males and 156 million females in the popula-tion, it is clearly a large enough market for Ritual to penetrate with the Company’s highly focused and original marketing campaign. 3
3.0 Market Analysis Summary3.1 Market Segmentation
1110
T he market for men’s grooming products has grown at an exponential rate over the past few years as more men show an
increased interest in personal appearance and hygiene. In the United States, the men’s groom-ing market is expected to top $5.1 billion in 2010, while the toiletries market will reach almost $2.7 million in sales. A 2004 report by ACNielson revealed that the growth in the international personal care market “was impacted by the introduction of new male-oriented products.”1
Additionally, last year men spent more than $16 bill ion on cosmetics and associated goods internationally. The market looks set to expand further as overall global sales of men’s’ cosmet-ics is predicted to reach 67% by 2008, a figure that equals $19.5 billion. 2 The following table, provided by Euromonitor, illustrates the growth of the U.S. men’s personal care market:
Currently, the Company sells its products through three channels: direct sales through www.YourRitual.com, other online retailers,and brick and mortar retailers such as style boutiques. Second party retailers (B2B) com-prise one of the Company’s two target markets. The other target market includes consumers who purchase the products directly from the Company or from retail stores, or business-to-consumer (B2C). Both market segments are detailed below.
Retailers (B2B):
Online retailers: Currently, the Company targets popular online storefronts including Shopintu-ition.com, Mensessentials.com, and Groom-inglounge.com to sell its products to Internet consumers. It also has its own affiliate sales with Amazon.com’s “Gold Merchant Program.”
Brick and mortar retailers: The Company will target small style boutiques in large metropoli-tan cities. Ritual is currently sold in specialty stores in California, New York, Minnesota, Massachusetts, Pennsylvania, Kansas, North Carolina, and Virginia. Also, international sales have already reached Canada, Ireland, Austra-lia, and Israel. The Company plans to place its products in department stores, salons, hotels, spas, and unique gift stores to reach a larger market of customers.
Consumers (B2C):
Primary customers
Men
Ages 18-49
Value self-image and latest trends
Active
Professional
Middle to higher incomes
Secondary customers
Women (specifically women with husbands or boyfriends)
Ages 18-49
Image conscious
Purchases beauty products
Middle to higher income
Business Analyst Online reports that there are approximately 61, 208, 830 U.S. individu-als earning incomes between $50,000 and $200,000 presently. With roughly 150 million males and 156 million females in the popula-tion, it is clearly a large enough market for Ritual to penetrate with the Company’s highly focused and original marketing campaign. 3
3.0 Market Analysis Summary3.1 Market Segmentation
1110
Ritual will meet the growing demand for groom-ing products while catering to men’s desire to feel masculine. The Company believes that men are looking for a better grooming experience, but do not want to plunge into the beauty category for fear of masculinity-compromising ramifications. Ritual meets the grooming needs of men who do not want to be labeled as “metrosexual” by creat-ing a product and process that is “machosexual” (trademark pending). In other words, Ritual cre-ates a masculine tradition in a market saturated with effeminate products. It should be noted that women understand the need for a clearly defined product identification in regard to the modern consumer, and will certainly see the merit of providing a product that both they and their male partners feel comfortable with.
3.3 Industry Analysis
Ritual will operate in the $451 billion wholesale Drugs, Proprietaries, and Sundries industry (Stan-dard Industrial Classification 5122). Dun & Brad-street defines this industry as “establishments primarily engaged in the wholesale distribution of prescription drugs, proprietary drugs, druggists’ sundries, and toiletries.” Nationwide, 11,008 establishments average annual revenues of $48 million. The Company is more aptly classified in the Toiletries sub-sector of this industry. Whole-sale distributors of toiletries, of which there are 242 nationwide, average $4.4 million in sales while employing an average of eleven people. The sub-sector as a whole generates $999 million and comprises 2.2% of the total industry. 4
Ritual will compete with other specialty men’s grooming product lines sold both online and in retail stores. While many of the Company’s com-petitors are new to the market, several have been on the market for years and are reaching matura-tion. Ritual has performed a complete analysis on the competitive landscape to create strategic marketing plans and prepare for any unforeseen market variables. The Company’s main competi-tors are analyzed below. For a complete descrip-tion of Ritual’s strengths and advantages in the market (see section 4.1 Competitive Edge).
Jack BlackThis line of products is of particular importance when comparing the competitive landscape fac-ing the Company because of its current market penetration. Jack Black products are available online and nationwide via various retailers, and at first glance appear to be the greatest potential competitor for Ritual. However, a deeper analysis reveals a great disparity between the two com-panies on many levels, including: presentation, quality of product ingredients, and efficacy of marketing in regard to the target consumer. It is worth noting that while Jack Black retail outlets are in constant flux, this company’s products are available in more than 30 online outlets and numerous physical retail locations.
A focused evaluation of Jack Black’s presenta-tion clearly reveals that Ritual’s marketing strat-egy aims at, and squarely hits, a more discerning urban market aesthetic. Jack Black’s visual appeal is essentially effective only with an aging clientele. Its Internet appeal for a younger, tech-savvy, and masculine audience is less effective. Ritual’s careful market analysis and subsequent, stylized, brand appeal – via its logo, packaging, and products, have all been precisely orches-trated to avoid the pitfalls of slipping into the mainstream, as Jack Black has done.
A side-by-side product comparison between the two reveals superficial similarities: for instance, each company offers a “whipped” shave cream. However, a discerning consumer will also notice that the intended shave experiences behind the two products are somewhat more disparate. While Jack Black offers a remodeled version of the same bor-ing shave, Ritual creates an original experience that maintains practicality. Jack Black’s strengths and weaknesses are further discussed below:
Strengths: Jack Black has large market penetration and is now available for sale through Costco stores.
Weaknesses: The brand has too many products, which makes choosing the correct product an overwhelming experience for many men. Old news, over-saturated, no longer hip or trendy (too mainstream).
Anthony LogisticsStrengths: Anthony Logistics sells targeted products made from natural ingredients.Weaknesses: Most products in this line are bland, bor-ing, and border on the feminine beauty market.
Billy JealousyStrengths: This brand targets young men and limits its products to four main categories – face, body, hair, and shave – which makes product navigation easy.Weaknesses: This brand has a “metrosexual” image, and the products are overpriced.
Art of ShavingStrengths: This brand’s image is sophisticated and stylish. The products are rooted in the tradition of shaving and the company targets professional and distinguished men. Art of Shaving benefits from having its own brick and mortar stores.Weaknesses: Art of Shaving products are high-end and expensive. Because of this, its target market is limited to an older male demographic.
SharpsStrengths: Sharps is widely accessible through Target stores nationwide.Weaknesses: The brand is too quirky to sustain a broad appeal. Its products aren’t innovative or solution-based.
Keihls and Malin+GoetzStrengths: These stores have established names in the market as procurers of premier grooming products.Weaknesses: Both Kiehls and Malin+Goetz sell both men’s and women’s products, which obstructs the foundation of a masculine tradition.
Baxter of CaliforniaStrengths: Baxter of California has been in business for more than 40 years and recently re-branded its products to appeal to a younger generation.Weaknesses: The products are feminine, and the re-branding efforts lack authenticity.
American CrewStrengths: American Crew products have a strong hold on the men’s hair care market.Weaknesses: The products are limited to hair care.
Brave SoldierStrengths: This company’s brand and image are designed to emphasize masculinity in groom-ing products.Weaknesses: The company mainly targetsath-letes and outdoorsmen and fails to capture the urban market.
ZihrStrengths: Zihr sells its products both internationally and in the U.S.Weaknesses: The image of the product is strictly “European” and does not appeal to the everyday American man.
3.2 Market Needs 3.4 Competitive Comparison
12 13
Ritual will meet the growing demand for groom-ing products while catering to men’s desire to feel masculine. The Company believes that men are looking for a better grooming experience, but do not want to plunge into the beauty category for fear of masculinity-compromising ramifications. Ritual meets the grooming needs of men who do not want to be labeled as “metrosexual” by creat-ing a product and process that is “machosexual” (trademark pending). In other words, Ritual cre-ates a masculine tradition in a market saturated with effeminate products. It should be noted that women understand the need for a clearly defined product identification in regard to the modern consumer, and will certainly see the merit of providing a product that both they and their male partners feel comfortable with.
3.3 Industry Analysis
Ritual will operate in the $451 billion wholesale Drugs, Proprietaries, and Sundries industry (Stan-dard Industrial Classification 5122). Dun & Brad-street defines this industry as “establishments primarily engaged in the wholesale distribution of prescription drugs, proprietary drugs, druggists’ sundries, and toiletries.” Nationwide, 11,008 establishments average annual revenues of $48 million. The Company is more aptly classified in the Toiletries sub-sector of this industry. Whole-sale distributors of toiletries, of which there are 242 nationwide, average $4.4 million in sales while employing an average of eleven people. The sub-sector as a whole generates $999 million and comprises 2.2% of the total industry. 4
Ritual will compete with other specialty men’s grooming product lines sold both online and in retail stores. While many of the Company’s com-petitors are new to the market, several have been on the market for years and are reaching matura-tion. Ritual has performed a complete analysis on the competitive landscape to create strategic marketing plans and prepare for any unforeseen market variables. The Company’s main competi-tors are analyzed below. For a complete descrip-tion of Ritual’s strengths and advantages in the market (see section 4.1 Competitive Edge).
Jack BlackThis line of products is of particular importance when comparing the competitive landscape fac-ing the Company because of its current market penetration. Jack Black products are available online and nationwide via various retailers, and at first glance appear to be the greatest potential competitor for Ritual. However, a deeper analysis reveals a great disparity between the two com-panies on many levels, including: presentation, quality of product ingredients, and efficacy of marketing in regard to the target consumer. It is worth noting that while Jack Black retail outlets are in constant flux, this company’s products are available in more than 30 online outlets and numerous physical retail locations.
A focused evaluation of Jack Black’s presenta-tion clearly reveals that Ritual’s marketing strat-egy aims at, and squarely hits, a more discerning urban market aesthetic. Jack Black’s visual appeal is essentially effective only with an aging clientele. Its Internet appeal for a younger, tech-savvy, and masculine audience is less effective. Ritual’s careful market analysis and subsequent, stylized, brand appeal – via its logo, packaging, and products, have all been precisely orches-trated to avoid the pitfalls of slipping into the mainstream, as Jack Black has done.
A side-by-side product comparison between the two reveals superficial similarities: for instance, each company offers a “whipped” shave cream. However, a discerning consumer will also notice that the intended shave experiences behind the two products are somewhat more disparate. While Jack Black offers a remodeled version of the same bor-ing shave, Ritual creates an original experience that maintains practicality. Jack Black’s strengths and weaknesses are further discussed below:
Strengths: Jack Black has large market penetration and is now available for sale through Costco stores.
Weaknesses: The brand has too many products, which makes choosing the correct product an overwhelming experience for many men. Old news, over-saturated, no longer hip or trendy (too mainstream).
Anthony LogisticsStrengths: Anthony Logistics sells targeted products made from natural ingredients.Weaknesses: Most products in this line are bland, bor-ing, and border on the feminine beauty market.
Billy JealousyStrengths: This brand targets young men and limits its products to four main categories – face, body, hair, and shave – which makes product navigation easy.Weaknesses: This brand has a “metrosexual” image, and the products are overpriced.
Art of ShavingStrengths: This brand’s image is sophisticated and stylish. The products are rooted in the tradition of shaving and the company targets professional and distinguished men. Art of Shaving benefits from having its own brick and mortar stores.Weaknesses: Art of Shaving products are high-end and expensive. Because of this, its target market is limited to an older male demographic.
SharpsStrengths: Sharps is widely accessible through Target stores nationwide.Weaknesses: The brand is too quirky to sustain a broad appeal. Its products aren’t innovative or solution-based.
Keihls and Malin+GoetzStrengths: These stores have established names in the market as procurers of premier grooming products.Weaknesses: Both Kiehls and Malin+Goetz sell both men’s and women’s products, which obstructs the foundation of a masculine tradition.
Baxter of CaliforniaStrengths: Baxter of California has been in business for more than 40 years and recently re-branded its products to appeal to a younger generation.Weaknesses: The products are feminine, and the re-branding efforts lack authenticity.
American CrewStrengths: American Crew products have a strong hold on the men’s hair care market.Weaknesses: The products are limited to hair care.
Brave SoldierStrengths: This company’s brand and image are designed to emphasize masculinity in groom-ing products.Weaknesses: The company mainly targetsath-letes and outdoorsmen and fails to capture the urban market.
ZihrStrengths: Zihr sells its products both internationally and in the U.S.Weaknesses: The image of the product is strictly “European” and does not appeal to the everyday American man.
3.2 Market Needs 3.4 Competitive Comparison
12 13
Ritual Company is committed to the devel-opment of unique products and brand experiences, as well as the establishment
of its reputation and superiority in the marketplace. The Company’s tagline, “How Guys Get Ready” will be the guiding focus of its publicity and mar-keting tactics and will serve to effectively instill brand recognition in the industry. The Company’s marketing strategy can be understood by looking at the implementation of the “Four Ps” of market-ing – product, price, promotion, and place:
4.1 Competitive Edge
Ritual Company has a considerable number of advantages in its industry. The following briefly lists each advantage:
Distinctive blend of innovation and tradition
Stimulates interest in the brand due to its clear voice, which resonates with its consumers
Solution-based with unique product offerings not available anywhere else
Strong brand recognition
Offers a unique and higher quality alternative to other brands on the market
Built to maintain a level of counter-culture attitude
Offers a realistic approach to men’s “getting ready” rituals
Top quality ingredients
Fashionable and eye-catching designs to attract users – key to female market
Affordable pricing structure
Extremely targeted marketing approach with inclusive Internet strategy
Unique marketing programs that resonate with its target demographic
Press is a crucial aspect of the Company’s marketing efforts. Ritual aims to maintain press outreach for 12 months a year, with heavy increase in press efforts for the holiday season. The Company has been featured in numerous magazine and media outlets, such as the avenues depicted to the right:
4.3.1 Marketing Strategy for Men
untruthful tactic of implying that “our product will help you get girls.” Ritual’s marketing strategy takes a completely different direction toward simplicity and empowerment, which is why the Company has chosen the tagline How Guys Get Ready. This line evokes confidence and understanding, but it also touches on empowerment by not completing the statement – it could mean getting ready for a date, to close a business deal, get a job, catch a fish, or win the championship.
product for them. Simply stated, the Company asks male consumers to “Make Ritual part of your morn-ing routine.” Guys are creatures of habit, and Ritual is the only grooming company that will enhance their existing routine with innovative products and make them feel confident about their appearance and attitude as they try to achieve their goals.
4.3.2 Marketing Strategy for Women
Grooming companies have made a costly mistake by ignoring an obvious trend in men’s grooming – women like to buy men their groom-ing products, just as they like to have a say in their man’s wardrobe.
that can be virtually owned through carefully crafted messages, communicating the message, “Turn your guy into a man,” in an authentic, intel-ligent manner.
would be “clean” and “smell nice,” but it also extends to “taking care of her” and “being con-fident” – issues that no doubt are near and dear to women’s hearts.
4.0 Strategy and Marketing Summary
4.2 Press and Media Coverage
4.3 Marketing Strategy
Ritual‘s creative marketing plan allows the Com-pany to focus directly on its target market while using its advertising dollars conservatively. The primary focus of the marketing strategy is to use unconventional guerilla marketing tactics in order to grow the Company’s loyal customer base.
As the Company expands, it will reevaluate its
marketing strategy to accommodate regional con-sumer dynamics – the variants each region has in social, economic, and buying trends. At the corpo-rate level, an Internet-based and direct marketing strategy will continue to create awareness. The Company’s marketing plan is separated by gender, as illustrated in the two subsequent sections.
The Company has also been featured on numerous blogs, which include Urban Daddy, Guy Ville, High Fat Content, On the Fly, Thrillist, Uncrate, Urban Kinet-ics, Young Hollywood, 49 Media, the Tip Jar, Notcot, and Loft 405.
Ritual Company is committed to the devel-opment of unique products and brand experiences, as well as the establishment
of its reputation and superiority in the marketplace. The Company’s tagline, “How Guys Get Ready” will be the guiding focus of its publicity and mar-keting tactics and will serve to effectively instill brand recognition in the industry. The Company’s marketing strategy can be understood by looking at the implementation of the “Four Ps” of market-ing – product, price, promotion, and place:
4.1 Competitive Edge
Ritual Company has a considerable number of advantages in its industry. The following briefly lists each advantage:
Distinctive blend of innovation and tradition
Stimulates interest in the brand due to its clear voice, which resonates with its consumers
Solution-based with unique product offerings not available anywhere else
Strong brand recognition
Offers a unique and higher quality alternative to other brands on the market
Built to maintain a level of counter-culture attitude
Offers a realistic approach to men’s “getting ready” rituals
Top quality ingredients
Fashionable and eye-catching designs to attract users – key to female market
Affordable pricing structure
Extremely targeted marketing approach with inclusive Internet strategy
Unique marketing programs that resonate with its target demographic
Press is a crucial aspect of the Company’s marketing efforts. Ritual aims to maintain press outreach for 12 months a year, with heavy increase in press efforts for the holiday season. The Company has been featured in numerous magazine and media outlets, such as the avenues depicted to the right:
4.3.1 Marketing Strategy for Men
untruthful tactic of implying that “our product will help you get girls.” Ritual’s marketing strategy takes a completely different direction toward simplicity and empowerment, which is why the Company has chosen the tagline How Guys Get Ready. This line evokes confidence and understanding, but it also touches on empowerment by not completing the statement – it could mean getting ready for a date, to close a business deal, get a job, catch a fish, or win the championship.
product for them. Simply stated, the Company asks male consumers to “Make Ritual part of your morn-ing routine.” Guys are creatures of habit, and Ritual is the only grooming company that will enhance their existing routine with innovative products and make them feel confident about their appearance and attitude as they try to achieve their goals.
4.3.2 Marketing Strategy for Women
Grooming companies have made a costly mistake by ignoring an obvious trend in men’s grooming – women like to buy men their groom-ing products, just as they like to have a say in their man’s wardrobe.
that can be virtually owned through carefully crafted messages, communicating the message, “Turn your guy into a man,” in an authentic, intel-ligent manner.
would be “clean” and “smell nice,” but it also extends to “taking care of her” and “being con-fident” – issues that no doubt are near and dear to women’s hearts.
4.0 Strategy and Marketing Summary
4.2 Press and Media Coverage
4.3 Marketing Strategy
Ritual‘s creative marketing plan allows the Com-pany to focus directly on its target market while using its advertising dollars conservatively. The primary focus of the marketing strategy is to use unconventional guerilla marketing tactics in order to grow the Company’s loyal customer base.
As the Company expands, it will reevaluate its
marketing strategy to accommodate regional con-sumer dynamics – the variants each region has in social, economic, and buying trends. At the corpo-rate level, an Internet-based and direct marketing strategy will continue to create awareness. The Company’s marketing plan is separated by gender, as illustrated in the two subsequent sections.
The Company has also been featured on numerous blogs, which include Urban Daddy, Guy Ville, High Fat Content, On the Fly, Thrillist, Uncrate, Urban Kinet-ics, Young Hollywood, 49 Media, the Tip Jar, Notcot, and Loft 405.
The Company currently operates with numerous comprehensive marketing strategies to effectively reach its intended audience. Ritual Company will use the following online channels:
Media Strategy: The Company will deliver product samples in non-traditional way: coffee sleeves and newspaper polybags. Men will use the sample products and women will give them to a man they know. Additionally, Ritual will use highly vis-ible media to create a buzz around its brand. For example, instead of a conservative message on one single billboard, the Company will instead use its existing media relationships to purchase consecu-tive billboards. Each board will have one word of the phrase, “Sh!t, Shower, and Shave.” This tactic will apply to bus benches, shelters, and posters in front of the hottest stores in Los Angeles, New York City, San Francisco, and Chicago. Additional advertising phrases may include, “Our Sh!t Don’t Stink! Come and find out why.”
Radio Strategy: The Company will target the How-ard Stern show, FM Talk Radio, and Satellite Radio shows because of their more relaxed policies on acceptable language. This will allow the radio sta-tions to elaborate on the “Sh!t, Shower, and Shave” theme. These venues will also allow for more focus on the Company’s toilet deodorizer drops.
Television Strategy: The Company is aware that television is a highly effective marketing channel. Accordingly, TV shows like Donny Deutch’s Big
Idea, as well as shows on E!, the Style Channel, and more will feature the brand’s products and increase awareness among the target audience.
Media Leverage Strategy: Major stores like Nord-strom’s, Barneys, and more are looking for increased sales support from their partnerships. Ritual uses media buys to leverage retail purchase. Simply put, the Company includes a store mention in the adver-tisement in exchange for an agreed upon minimum purchase of Ritual product (see bottom right: Coffee Sleeve and Billboard Program). This will act as the first part of Ritual’s dedication to in-store sales. It is a unique program that no other grooming company offers. Ritual’s founders have existing relation-ships with media buyers, so the Company receives reduced, negotiated rates unavailable to most busi-nesses. The Company’s media leverage strategy not only allows Ritual access to the biggest, most desirable stores, but it also gets instant return on investment (ROI) for marketing expenditures.
In-Store Strategy: Ritual will purchase antique barbershop chairs and travel around the country to different department stores, offering free shaves using Ritual products. Ritual will surround these stores with its “Here We Come to Shave the Day” street teams to lure consumers.
Event Marketing Strategy: Ritual will participate in trade shows like Pool, Project, Magic, and Apothecary shows, gift shows, and more. A strong presence at music events, skating competitions, alternative sports, popular sports, and award shows will likewise bolster brand awareness. It is important that the Company utilize street teams to drive traffic to its booth at these events and trade shows. The Company will offer the same shaving chair tactic for buyers and other patrons or consumers that attend the booth.
International Strategy: The Company will set up distribution contracts in every country (Specifically England, France, Italy and Japan), and it is already working on a contract with Israel. This will allow the Company to ship large amounts of its products at once. It will utilize an international public relations strategy to stimulate sales (there are already features written on Ritual in Australia and Germany, as well as a short video shot for Canada’s MTV equivalent).
The quality of American-made products will serve as the focal point of this aspect of Ritual’s strategy.
Website (see bottom left): The Company currently operates with a fully functional and easily navigable website (www.yourritual.com). The site includes a listing and description of products, information on where to buy the products, shaving tips, and a description of the Company. The site also features an online shopping cart capability, allowing users to shop from the convenience of their own home or office. The site will also include user-generated forums and contests, such as the “Stache for Cash Contest”.
Forums: The Company will host www.ratemys-tache.com, where individuals can post a picture of themselves with a moustache and the online com-munity can talk about it, rate it, or comment on it. There will also be www.shitshowerandshave.com, a shaving and grooming forum.
Blogs: Ritual will feature its own blog on the site because search engines, such as Google, search for daily/hourly updated content. The Company currently has bloggers writing on various highly traf-ficked sites (see Section 4.2 Press and Media Cover-age) and establishing links to Ritual’s website. This process increases search engine optimization.
Search Engine Optimization: In order to run its online store at the optimum level, the Company will place strong importance on being at the top of
the list for all online searches. Original content on social network portions of site, as well as frequently updated content on blogs and forums will heavily increase Google hits and traffic.
Viral Marketing: Ritual Company will employ viral marketing to enhance awareness of its new prod-ucts. This marketing method allows users to experi-ence the uniqueness that each product offers, thus fueling word of mouth advertising among friends and family. To further this viral marketing campaign, it will use a theme song and video performed by Henry Phillips, a well-known comedian. The use of this tactic will prove cost effective due to the relatively low cost associated with production and zero cost for media and distribution. It should yield a high and rapid response rate, reaching a global population of interested customers.
Online stores: The Company is currently looking into launching web stores outside of its own website. It is presently working with Amazon.com, with which it is in the process of developing a Ritual Store.
Co-op Marketing and Partnerships: The Company will form alliances with brands such as Hard Rock Hotel in Las Vegas and Virgin America Airlines (sup-plying a shaving kit for red eye business travelers). Similar partnerships will continue with foreseen synergistic opportunities between the Company and social or country clubs, golf courses, and any other place where the Ritual man might be found.
4.4 Marketing Programs
4.5 Coffee Sleeve Program 4.6 Billboard Program
16 17
TM
How Guys Get Ready.
Don’t miss a beat, sign up for online discounts, contests and more from Ritual:
TRADITION MEETS INNOVATION.
GO
Stache enthusiasts unite! Post a pic of your stache. If you accrue the votes, you’ll win FREE Ritual product and be entered into our annual Stache For Cash Contest!
RATE MY STACHE!
GO GO
David Arquette liked it so much he wrote, “Your product is amazing, and the packaging is sick.”
HOME PRODUCTS STORE RETAILERS ABOUT US PRESS SHAVING TIPS
Kill harful bacteria on your blade with Razor Rinse while at the same time eliminating toilet odor with Nature Calls. These products are truly revolutionary.
IT’S TIME FOR A BETTER MORNING RITUAL.
legal copy will go here etc. legal copy will go here etc. legal copy will go here etc. Cpoywrite 2007
The Company currently operates with numerous comprehensive marketing strategies to effectively reach its intended audience. Ritual Company will use the following online channels:
Media Strategy: The Company will deliver product samples in non-traditional way: coffee sleeves and newspaper polybags. Men will use the sample products and women will give them to a man they know. Additionally, Ritual will use highly vis-ible media to create a buzz around its brand. For example, instead of a conservative message on one single billboard, the Company will instead use its existing media relationships to purchase consecu-tive billboards. Each board will have one word of the phrase, “Sh!t, Shower, and Shave.” This tactic will apply to bus benches, shelters, and posters in front of the hottest stores in Los Angeles, New York City, San Francisco, and Chicago. Additional advertising phrases may include, “Our Sh!t Don’t Stink! Come and find out why.”
Radio Strategy: The Company will target the How-ard Stern show, FM Talk Radio, and Satellite Radio shows because of their more relaxed policies on acceptable language. This will allow the radio sta-tions to elaborate on the “Sh!t, Shower, and Shave” theme. These venues will also allow for more focus on the Company’s toilet deodorizer drops.
Television Strategy: The Company is aware that television is a highly effective marketing channel. Accordingly, TV shows like Donny Deutch’s Big
Idea, as well as shows on E!, the Style Channel, and more will feature the brand’s products and increase awareness among the target audience.
Media Leverage Strategy: Major stores like Nord-strom’s, Barneys, and more are looking for increased sales support from their partnerships. Ritual uses media buys to leverage retail purchase. Simply put, the Company includes a store mention in the adver-tisement in exchange for an agreed upon minimum purchase of Ritual product (see bottom right: Coffee Sleeve and Billboard Program). This will act as the first part of Ritual’s dedication to in-store sales. It is a unique program that no other grooming company offers. Ritual’s founders have existing relation-ships with media buyers, so the Company receives reduced, negotiated rates unavailable to most busi-nesses. The Company’s media leverage strategy not only allows Ritual access to the biggest, most desirable stores, but it also gets instant return on investment (ROI) for marketing expenditures.
In-Store Strategy: Ritual will purchase antique barbershop chairs and travel around the country to different department stores, offering free shaves using Ritual products. Ritual will surround these stores with its “Here We Come to Shave the Day” street teams to lure consumers.
Event Marketing Strategy: Ritual will participate in trade shows like Pool, Project, Magic, and Apothecary shows, gift shows, and more. A strong presence at music events, skating competitions, alternative sports, popular sports, and award shows will likewise bolster brand awareness. It is important that the Company utilize street teams to drive traffic to its booth at these events and trade shows. The Company will offer the same shaving chair tactic for buyers and other patrons or consumers that attend the booth.
International Strategy: The Company will set up distribution contracts in every country (Specifically England, France, Italy and Japan), and it is already working on a contract with Israel. This will allow the Company to ship large amounts of its products at once. It will utilize an international public relations strategy to stimulate sales (there are already features written on Ritual in Australia and Germany, as well as a short video shot for Canada’s MTV equivalent).
The quality of American-made products will serve as the focal point of this aspect of Ritual’s strategy.
Website (see bottom left): The Company currently operates with a fully functional and easily navigable website (www.yourritual.com). The site includes a listing and description of products, information on where to buy the products, shaving tips, and a description of the Company. The site also features an online shopping cart capability, allowing users to shop from the convenience of their own home or office. The site will also include user-generated forums and contests, such as the “Stache for Cash Contest”.
Forums: The Company will host www.ratemys-tache.com, where individuals can post a picture of themselves with a moustache and the online com-munity can talk about it, rate it, or comment on it. There will also be www.shitshowerandshave.com, a shaving and grooming forum.
Blogs: Ritual will feature its own blog on the site because search engines, such as Google, search for daily/hourly updated content. The Company currently has bloggers writing on various highly traf-ficked sites (see Section 4.2 Press and Media Cover-age) and establishing links to Ritual’s website. This process increases search engine optimization.
Search Engine Optimization: In order to run its online store at the optimum level, the Company will place strong importance on being at the top of
the list for all online searches. Original content on social network portions of site, as well as frequently updated content on blogs and forums will heavily increase Google hits and traffic.
Viral Marketing: Ritual Company will employ viral marketing to enhance awareness of its new prod-ucts. This marketing method allows users to experi-ence the uniqueness that each product offers, thus fueling word of mouth advertising among friends and family. To further this viral marketing campaign, it will use a theme song and video performed by Henry Phillips, a well-known comedian. The use of this tactic will prove cost effective due to the relatively low cost associated with production and zero cost for media and distribution. It should yield a high and rapid response rate, reaching a global population of interested customers.
Online stores: The Company is currently looking into launching web stores outside of its own website. It is presently working with Amazon.com, with which it is in the process of developing a Ritual Store.
Co-op Marketing and Partnerships: The Company will form alliances with brands such as Hard Rock Hotel in Las Vegas and Virgin America Airlines (sup-plying a shaving kit for red eye business travelers). Similar partnerships will continue with foreseen synergistic opportunities between the Company and social or country clubs, golf courses, and any other place where the Ritual man might be found.
4.4 Marketing Programs
4.5 Coffee Sleeve Program 4.6 Billboard Program
16 171717
TM
How Guys Get Ready.
Don’t miss a beat, sign up for online discounts, contests and more from Ritual:
TRADITION MEETS INNOVATION.
GO
Stache enthusiasts unite! Post a pic of your stache. If you accrue the votes, you’ll win FREE Ritual product and be entered into our annual Stache For Cash Contest!
RATE MY STACHE!
GO GO
David Arquette liked it so much he wrote, “Your product is amazing, and the packaging is sick.”
HOME PRODUCTS STORE RETAILERS ABOUT US PRESS SHAVING TIPS
Kill harful bacteria on your blade with Razor Rinse while at the same time eliminating toilet odor with Nature Calls. These products are truly revolutionary.
IT’S TIME FOR A BETTER MORNING RITUAL.
legal copy will go here etc. legal copy will go here etc. legal copy will go here etc. Cpoywrite 2007
Ty Lifeset, Co-owner
Ty Lifeset graduated from Ithaca College with a degree in advertising and public relations from the renowned Roy H. Park School of Communications. He is a for-mer creative executive for advertising agencies and marketing companies. He has worked with many popular brands – managing, creating, and conceptual-izing ad campaigns and events for DISH Network, Gateway Computers, Playboy, Nintendo, and more.
Mr. Lifeset also has extensive experience in beauty and hygiene industries. His mother was an esthetician and dean of a reputable beauty school in New England. His sister is a barber, and his uncle owns a high end salon on Newberry Street in Boston.
5.0 Management Summary5.1 Personnel Plan
Scott McEwen, Co-owner
Scott McEwen graduated from the Uni-versity of California at Santa Barbara with a degree in fine arts and a minor in communications. He is a former cre -ative executive who has helped develop marketing and communications for brands such as Carl ’s Jr. , BMW, Gate-way Computers, DISH Network, and many others. He is also the founder of his own housing development com-pany, Highlander.
Year 1 Year 2 Year 3 Year 4 Year 5Personnel Count
Executives 2 3 3 3 3Director of Marketing 0 0 0 0 1Admin Assistant 0 1 1 1 2Intern 1 1 1 1 1Director of Sales 0 0 1 1 1Bookkeeper 1 1 1 1 1Distribution Manager 0 0 1 1 1
Additional Employees 0 0 0 0 2Total Personnel 4 6 8 8 12
Personnel WageExecutives $70,000 $73,500 $77,175 $81,034 $85,085Director of Marketing $0 $0 $0 $0 $100,000Admin Assistant $0 $25,200 $26,460 $27,783 $29,172Intern $0 $0 $0 $0 $0Director of Sales $0 $0 $50,000 $52,500 $85,125Bookkeeper $3,600 $4,140 $4,761 $5,475 $6,296Distribution Manager $0 $0 $50,000 $52,500 $55,125Additional Employees $0 $0 $0 $0 $40,000
Personnel CostsExecutives $140,000 $220,500 $231,525 $243,101 $255,256Director of Marketing $0 $0 $0 $0 $100,000Admin Assistant $0 $25,200 $26,460 $27,783 $58,344Intern $0 $0 $0 $0 $0
Director of Sales $0 $0 $50,000 $52,500 $85,125Bookkeeper $3,600 $4,140 $4,761 $5,475 $6,296Distribution Manager $0 $0 $50,000 $52,500 $55,125Additional Employees $0 $0 $0 $0 $80,000
Total Payroll $143,600 $249,840 $362,746 $381,359 $640,147
Personnel
1918
Ty Lifeset, Co-owner
Ty Lifeset graduated from Ithaca College with a degree in advertising and public relations from the renowned Roy H. Park School of Communications. He is a for-mer creative executive for advertising agencies and marketing companies. He has worked with many popular brands – managing, creating, and conceptual-izing ad campaigns and events for DISH Network, Gateway Computers, Playboy, Nintendo, and more.
Mr. Lifeset also has extensive experience in beauty and hygiene industries. His mother was an esthetician and dean of a reputable beauty school in New England. His sister is a barber, and his uncle owns a high end salon on Newberry Street in Boston.
5.0 Management Summary5.1 Personnel Plan
Scott McEwen, Co-owner
Scott McEwen graduated from the Uni-versity of California at Santa Barbara with a degree in fine arts and a minor in communications. He is a former cre -ative executive who has helped develop marketing and communications for brands such as Carl ’s Jr. , BMW, Gate-way Computers, DISH Network, and many others. He is also the founder of his own housing development com-pany, Highlander.
Year 1 Year 2 Year 3 Year 4 Year 5Personnel Count
Executives 2 3 3 3 3Director of Marketing 0 0 0 0 1Admin Assistant 0 1 1 1 2Intern 1 1 1 1 1Director of Sales 0 0 1 1 1Bookkeeper 1 1 1 1 1Distribution Manager 0 0 1 1 1
Additional Employees 0 0 0 0 2Total Personnel 4 6 8 8 12
Personnel WageExecutives $70,000 $73,500 $77,175 $81,034 $85,085Director of Marketing $0 $0 $0 $0 $100,000Admin Assistant $0 $25,200 $26,460 $27,783 $29,172Intern $0 $0 $0 $0 $0Director of Sales $0 $0 $50,000 $52,500 $85,125Bookkeeper $3,600 $4,140 $4,761 $5,475 $6,296Distribution Manager $0 $0 $50,000 $52,500 $55,125Additional Employees $0 $0 $0 $0 $40,000
Personnel CostsExecutives $140,000 $220,500 $231,525 $243,101 $255,256Director of Marketing $0 $0 $0 $0 $100,000Admin Assistant $0 $25,200 $26,460 $27,783 $58,344Intern $0 $0 $0 $0 $0
Director of Sales $0 $0 $50,000 $52,500 $85,125Bookkeeper $3,600 $4,140 $4,761 $5,475 $6,296Distribution Manager $0 $0 $50,000 $52,500 $55,125Additional Employees $0 $0 $0 $0 $80,000
Total Payroll $143,600 $249,840 $362,746 $381,359 $640,147
Personnel
1918
6.0T sales. Certain assumptions were made.As with any long-range projection, accuracy
is based on reasonable estimates of return oninvestment and past performance. The Companybelieves the following numbers are attainable andreasonable. However, actual results will vary.
Sales forecast data is presented in the table andcharts below. The total sales come from unitsales multiplied by the unit price. The direct cost
of sales is derived from unit sales multiplied bythe direct unit cost.
6.1 Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5Profitability %'s: Gross Margin 64.80% 67.02% 67.43% 67.83% 68.22% Net Profit Margin -21.43% 14.39% 31.91% 48.49% 52.36% EBITDA to Sales -20.92% 14.79% 32.20% 48.70% 52.50% Return on Assets -7.26% 10.83% 33.05% 49.49% 49.74% Return on Equity -7.34% 11.01% 33.69% 50.31% 50.45%
Activity Ratios: Accounts Payable Turnover 10.88 15.42 17.75 20.08 21.20
Asset Turnover 0.34 0.75 1.04 1.02 0.95
Leverage Ratios: Debt to Equity 0.01 0.02 0.02 0.02 0.01 Debt to Assets Ratio 1.10% 1.61% 1.90% 1.64% 1.42% Interest Coverage Ratio N/A N/A N/A N/A N/A
Liquidity Ratios: Current Ratio 88.97 59.56 50.52 59.52 69.05 Current Debt to Total Assets Ratio 1.10% 1.61% 1.90% 1.64% 1.42%
Additional Indicators: Sales to Equity Ratio 0.34 0.77 1.06 1.04 0.96
Financial Indicators
-$10 000
$0
$20,000
$40,000
$60,000
$80,000
Sales
-$70,000
-$60,000
-$50,000
-$40,000
-$30,000
-$20,000
-$10,000
Current
Gross Margin
Earnings
Year 1 Year 2 Year 3 Year 4 Year 5Unit Sales
Direct Sales 2,778 5,890 11,898 22,844 41,576Direct Affiliate Sales 1,401 2,970 5,999 11,518 20,963Wholesale 3,969 8,414 16,997 32,634 59,394Wholesale From Sales Rep 4,669 9,899 19,996 38,393 69,875
Total Unit Sales 12,818 27,173 54,890 105,389 191,808
Unit PriceDirect Sales $37.79 $38.93 $40.09 $41.30 $42.54
Direct Affiliate Sales $32.12 $33.09 $34.08 $35.10 $36.16Wholesale $18.90 $19.46 $20.05 $20.65 $21.27Wholesale From Sales Rep $16.06 $16.54 $17.04 $17.55 $18.08
SalesDirect Sales $105,000 $229,278 $477,036 $943,386 $1,768,471Direct Affiliate Sales $45,000 $98,262 $204,444 $404,308 $757,916Wholesale $75,000 $163,770 $340,740 $673,847 $1,263,194Wholesale From Sales Rep $75,000 $163,770 $340,740 $673,847 $1,263,194
Total Sales $300,000 $753,342 $1,567,403 $3,099,697 $5,810,692
Direct Unit CostsDirect Sales $6.84 $6.94 $7.04 $7.15 $7.25Direct Affiliate Sales $6.84 $6.94 $7.04 $7.15 $7.25
Wholesale $6.84 $6.94 $7.04 $7.15 $7.25Wholesale From Sales Rep $6.84 $6.94 $7.04 $7.15 $7.25
Direct Cost of Sales
Direct Sales $18,990 $40,864 $83,783 $163,276 $301,620Direct Affiliate Sales $9,575 $20,604 $42,243 $82,324 $152,077
Wholesale $27,129 $58,377 $119,690 $233,251 $430,885Wholesale From Sales Rep $31,917 $68,678 $140,811 $274,413 $506,924
Subtotal Direct Cost of Sales $87,611 $209,126 $428,771 $835,589 $1,543,583
Sales Forecast
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Mon
th1
Mon
th2
Mon
th3
Mon
th4
Mon
th5
Mon
th6
Mon
th7
Mon
th8
Mon
th9
Mon
th10
Mon
th11
Mon
th12
Sales Monthly
Wholesale From SalesRep
Wholesale
Direct Affiliate Sales
Direct Sales
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
Sales By Year
Wholesale From SalesRep
Wholesale
Direct Affiliate Sales
Direct Sales
2120
6.0T sales. Certain assumptions were made.As with any long-range projection, accuracy
is based on reasonable estimates of return oninvestment and past performance. The Companybelieves the following numbers are attainable andreasonable. However, actual results will vary.
Sales forecast data is presented in the table andcharts below. The total sales come from unitsales multiplied by the unit price. The direct cost
of sales is derived from unit sales multiplied bythe direct unit cost.
6.1 Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5Profitability %'s: Gross Margin 64.80% 67.02% 67.43% 67.83% 68.22% Net Profit Margin -21.43% 14.39% 31.91% 48.49% 52.36% EBITDA to Sales -20.92% 14.79% 32.20% 48.70% 52.50% Return on Assets -7.26% 10.83% 33.05% 49.49% 49.74% Return on Equity -7.34% 11.01% 33.69% 50.31% 50.45%
Activity Ratios: Accounts Payable Turnover 10.88 15.42 17.75 20.08 21.20
Asset Turnover 0.34 0.75 1.04 1.02 0.95
Leverage Ratios: Debt to Equity 0.01 0.02 0.02 0.02 0.01 Debt to Assets Ratio 1.10% 1.61% 1.90% 1.64% 1.42% Interest Coverage Ratio N/A N/A N/A N/A N/A
Liquidity Ratios: Current Ratio 88.97 59.56 50.52 59.52 69.05 Current Debt to Total Assets Ratio 1.10% 1.61% 1.90% 1.64% 1.42%
Additional Indicators: Sales to Equity Ratio 0.34 0.77 1.06 1.04 0.96
Financial Indicators
-$10 000
$0
$20,000
$40,000
$60,000
$80,000
Sales
-$70,000
-$60,000
-$50,000
-$40,000
-$30,000
-$20,000
-$10,000
Current
Gross Margin
Earnings
Year 1 Year 2 Year 3 Year 4 Year 5Unit Sales
Direct Sales 2,778 5,890 11,898 22,844 41,576Direct Affiliate Sales 1,401 2,970 5,999 11,518 20,963Wholesale 3,969 8,414 16,997 32,634 59,394Wholesale From Sales Rep 4,669 9,899 19,996 38,393 69,875
Total Unit Sales 12,818 27,173 54,890 105,389 191,808
Unit PriceDirect Sales $37.79 $38.93 $40.09 $41.30 $42.54
Direct Affiliate Sales $32.12 $33.09 $34.08 $35.10 $36.16Wholesale $18.90 $19.46 $20.05 $20.65 $21.27Wholesale From Sales Rep $16.06 $16.54 $17.04 $17.55 $18.08
SalesDirect Sales $105,000 $229,278 $477,036 $943,386 $1,768,471Direct Affiliate Sales $45,000 $98,262 $204,444 $404,308 $757,916Wholesale $75,000 $163,770 $340,740 $673,847 $1,263,194Wholesale From Sales Rep $75,000 $163,770 $340,740 $673,847 $1,263,194
Total Sales $300,000 $753,342 $1,567,403 $3,099,697 $5,810,692
Direct Unit CostsDirect Sales $6.84 $6.94 $7.04 $7.15 $7.25Direct Affiliate Sales $6.84 $6.94 $7.04 $7.15 $7.25
Wholesale $6.84 $6.94 $7.04 $7.15 $7.25Wholesale From Sales Rep $6.84 $6.94 $7.04 $7.15 $7.25
Direct Cost of Sales
Direct Sales $18,990 $40,864 $83,783 $163,276 $301,620Direct Affiliate Sales $9,575 $20,604 $42,243 $82,324 $152,077
Wholesale $27,129 $58,377 $119,690 $233,251 $430,885Wholesale From Sales Rep $31,917 $68,678 $140,811 $274,413 $506,924
Subtotal Direct Cost of Sales $87,611 $209,126 $428,771 $835,589 $1,543,583
Sales Forecast
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Mon
th1
Mon
th2
Mon
th3
Mon
th4
Mon
th5
Mon
th6
Mon
th7
Mon
th8
Mon
th9
Mon
th10
Mon
th11
Mon
th12
Sales Monthly
Wholesale From SalesRep
Wholesale
Direct Affiliate Sales
Direct Sales
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
Sales By Year
Wholesale From SalesRep
Wholesale
Direct Affiliate Sales
Direct Sales
2120
Each sales line consists of the items listed below. The price and direct cost are also included. The “% of sales” line shows the percentage of each product as it relates to sales.
The following break-even analysis is the aver-age monthly break-even point after the new incurred interest expense AND the new expen-ditures in marketing and fixed costs. It states that the Company must, on average, achieve
sales of $33,269 per month to break even. It is important for the Company to point out that this is an average from the first year projec-tion. The fixed costs will not grow to this point unless sales grow accordingly.
6.2 Sales Assumptions 6.3 Break-Even Analysis
Item Price % of Sales Direct CostNature Calls $9.00 18.3% $1.68
Trifecta $16.00 5.6% $2.50Razor Rinse $17.00 5.2% $2.70The Whip $18.00 9.2% $2.70The Balm $19.00 5.8% $2.85The Kit $79.00 35.5% $15.43
Face Lotion $25.00 4.1% $2.10Face Scrub $25.00 5.3% $2.10Shave oil $17.00 4.9% $1.80Lip Balm $6.00 6.1% $1.10
Direct SalesItem Price % of Sales Direct Cost
Nature Calls $7.65 18.3% $1.68Trifecta $13.60 5.6% $2.50
Razor Rinse $14.45 5.2% $2.70The Whip $15.30 9.2% $2.70The Balm $16.15 5.8% $2.85The Kit $67.15 35.5% $15.43
Face Lotion $21.25 4.1% $2.10Face Scrub $21.25 5.3% $2.10Shave oil $14.45 4.9% $1.80Lip Balm $5.10 6.1% $1.10
Direct Affiliated Sales & Private Labeling
Item Price % of Sales Direct CostNature Calls $4.50 18.3% $1.68
Trifecta $8.00 5.6% $2.50Razor Rinse $8.50 5.2% $2.70The Whip $9.00 9.2% $2.70The Balm $9.50 5.8% $2.85The Kit $39.50 35.5% $15.43
Face Lotion $12.50 4.1% $2.10Face Scrub $12.50 5.3% $2.10Shave oil $8.50 4.9% $1.80Lip Balm $3.00 6.1% $1.10
WholesaleItem Price % of Sales Direct Cost
Nature Calls $3.83 18.3% $1.68Trifecta $6.80 5.6% $2.50
Razor Rinse $7.23 5.2% $2.70The Whip $7.65 9.2% $2.70The Balm $8.08 5.8% $2.85The Kit $33.58 35.5% $15.43
Face Lotion $10.63 4.1% $2.10Face Scrub $10.63 5.3% $2.10Shave oil $7.23 4.9% $1.80Lip Balm $2.55 6.1% $1.10
Wholesale From Sales Rep
($25,000)($20,000)($15,000)($10,000)($5,000)
$0$5,000
$10,000 $15,000 $20,000 $25,000
0 1,421 2,843
Monthly break-even point
Break-even Analysis
Monthly Units Break-even 1,421Monthly Revenue Break-even $33,269
Assumptions:Average Per-Unit Revenue $23.41Average Per-Unit Variable Cost $8.24Estimated Monthly Fixed Cost $21,557
Break-even Analysis
22 23
Each sales line consists of the items listed below. The price and direct cost are also included. The “% of sales” line shows the percentage of each product as it relates to sales.
The following break-even analysis is the aver-age monthly break-even point after the new incurred interest expense AND the new expen-ditures in marketing and fixed costs. It states that the Company must, on average, achieve
sales of $33,269 per month to break even. It is important for the Company to point out that this is an average from the first year projec-tion. The fixed costs will not grow to this point unless sales grow accordingly.
6.2 Sales Assumptions 6.3 Break-Even Analysis
Item Price % of Sales Direct CostNature Calls $9.00 18.3% $1.68
Trifecta $16.00 5.6% $2.50Razor Rinse $17.00 5.2% $2.70The Whip $18.00 9.2% $2.70The Balm $19.00 5.8% $2.85The Kit $79.00 35.5% $15.43
Face Lotion $25.00 4.1% $2.10Face Scrub $25.00 5.3% $2.10Shave oil $17.00 4.9% $1.80Lip Balm $6.00 6.1% $1.10
Direct SalesItem Price % of Sales Direct Cost
Nature Calls $7.65 18.3% $1.68Trifecta $13.60 5.6% $2.50
Razor Rinse $14.45 5.2% $2.70The Whip $15.30 9.2% $2.70The Balm $16.15 5.8% $2.85The Kit $67.15 35.5% $15.43
Face Lotion $21.25 4.1% $2.10Face Scrub $21.25 5.3% $2.10Shave oil $14.45 4.9% $1.80Lip Balm $5.10 6.1% $1.10
Direct Affiliated Sales & Private Labeling
Item Price % of Sales Direct CostNature Calls $4.50 18.3% $1.68
Trifecta $8.00 5.6% $2.50Razor Rinse $8.50 5.2% $2.70The Whip $9.00 9.2% $2.70The Balm $9.50 5.8% $2.85The Kit $39.50 35.5% $15.43
Face Lotion $12.50 4.1% $2.10Face Scrub $12.50 5.3% $2.10Shave oil $8.50 4.9% $1.80Lip Balm $3.00 6.1% $1.10
WholesaleItem Price % of Sales Direct Cost
Nature Calls $3.83 18.3% $1.68Trifecta $6.80 5.6% $2.50
Razor Rinse $7.23 5.2% $2.70The Whip $7.65 9.2% $2.70The Balm $8.08 5.8% $2.85The Kit $33.58 35.5% $15.43
Face Lotion $10.63 4.1% $2.10Face Scrub $10.63 5.3% $2.10Shave oil $7.23 4.9% $1.80Lip Balm $2.55 6.1% $1.10
Wholesale From Sales Rep
($25,000)($20,000)($15,000)($10,000)($5,000)
$0$5,000
$10,000 $15,000 $20,000 $25,000
0 1,421 2,843
Monthly break-even point
Break-even Analysis
Monthly Units Break-even 1,421Monthly Revenue Break-even $33,269
Assumptions:Average Per-Unit Revenue $23.41Average Per-Unit Variable Cost $8.24Estimated Monthly Fixed Cost $21,557
Break-even Analysis
22 23
Year 5
32%
16%
0%
52%
COGS Total Operating Expenses Taxes & Interest Incurred Net Income
The projected profit and loss for the Company shows substantial growth even though additional marketing, operating, and interest expenses are incurred. It should be noted that sales subtracted by direct cost of sales equals the Company’s gross margin. Additionally, the profit before interest
and taxes is reached when operating expenses are subtracted from the gross margin. Finally, the Company’s net profit is calculated by sub-tracting interest expense and taxes incurred from the amount representing the profit before interest and taxes.
The following charts illustrate how revenue is allocated among cost of goods sold (COGS), total operating expenses, taxes and interest, and net income over time:
6.4 Projected Profit and Loss
Year 1 Year 2 Year 3 Year 4 Year 5Sales $300,000 $753,342 $1,567,403 $3,099,697 $5,810,692Direct Cost of Sales $87,611 $209,126 $428,771 $835,589 $1,543,583Distribution $18,000 $39,305 $81,778 $161,723 $303,167Total Cost of Sales $105,611 $248,431 $510,548 $997,312 $1,846,749
Gross Margin $194,389 $504,911 $1,056,855 $2,102,385 $3,963,942Gross Margin % 64.80% 67.02% 67.43% 67.83% 68.22%
Expenses
Advertising & Marketing $50,000 $60,000 $72,000 $86,400 $103,680Travel $0 $0 $12,120 $12,012 $12,001Leased Equipment $3,000 $3,300 $3,630 $3,993 $4,392Rent $18,000 $19,800 $21,780 $23,958 $26,354Utilities $6,300 $6,930 $7,623 $8,385 $9,224Insurance $4,200 $4,620 $5,082 $5,590 $6,149Consultants $6,000 $6,600 $7,260 $7,986 $8,785Dues & Subscriptions $1,800 $1,980 $2,178 $2,396 $2,635Fees & Permits $1,200 $1,320 $1,452 $1,597 $1,757Office Supplies $1,500 $1,650 $1,815 $1,997 $2,196
Depreciation $1,542 $3,008 $4,622 $6,396 $8,348Payroll Burdon $21,540 $37,476 $54,412 $57,204 $96,022Total Personnel $143,600 $249,840 $362,746 $381,359 $640,147
Total Operating Expenses $258,682 $396,524 $556,719 $599,274 $921,691
Profit Before Interest and Taxes ($64,293) $108,387 $500,135 $1,503,111 $3,042,252EBITDA ($62,751) $111,395 $504,757 $1,509,508 $3,050,600
Interest Expense $0 $0 $0 $0 $0Taxes Incurred $0 $0 $0 $0 $0
Net Profit ($64,293) $108,387 $500,135 $1,503,111 $3,042,252Net Profit/Sales -21.43% 14.39% 31.91% 48.49% 52.36%
Pro Forma Profit and Loss0% 0%
Year 1
29%
71%
0% 14%
Year 2
33%
53%
14%
Year 3
33%
35%0%
32%
Year 4
32%
19%
0%
49%
$
$10,000
$15,000
$20,000
$25,000Gross Margin & Profit Monthly
-$15,000
-$10,000
-$5,000
$0
$5,000
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0
Mon
th 1
1
Mon
th 1
2
Gross Margin
Profit
24 25
Year 5
32%
16%
0%
52%
COGS Total Operating Expenses Taxes & Interest Incurred Net Income
The projected profit and loss for the Company shows substantial growth even though additional marketing, operating, and interest expenses are incurred. It should be noted that sales subtracted by direct cost of sales equals the Company’s gross margin. Additionally, the profit before interest
and taxes is reached when operating expenses are subtracted from the gross margin. Finally, the Company’s net profit is calculated by sub-tracting interest expense and taxes incurred from the amount representing the profit before interest and taxes.
The following charts illustrate how revenue is allocated among cost of goods sold (COGS), total operating expenses, taxes and interest, and net income over time:
6.4 Projected Profit and Loss
Year 1 Year 2 Year 3 Year 4 Year 5Sales $300,000 $753,342 $1,567,403 $3,099,697 $5,810,692Direct Cost of Sales $87,611 $209,126 $428,771 $835,589 $1,543,583Distribution $18,000 $39,305 $81,778 $161,723 $303,167Total Cost of Sales $105,611 $248,431 $510,548 $997,312 $1,846,749
Gross Margin $194,389 $504,911 $1,056,855 $2,102,385 $3,963,942Gross Margin % 64.80% 67.02% 67.43% 67.83% 68.22%
Expenses
Advertising & Marketing $50,000 $60,000 $72,000 $86,400 $103,680Travel $0 $0 $12,120 $12,012 $12,001Leased Equipment $3,000 $3,300 $3,630 $3,993 $4,392Rent $18,000 $19,800 $21,780 $23,958 $26,354Utilities $6,300 $6,930 $7,623 $8,385 $9,224Insurance $4,200 $4,620 $5,082 $5,590 $6,149Consultants $6,000 $6,600 $7,260 $7,986 $8,785Dues & Subscriptions $1,800 $1,980 $2,178 $2,396 $2,635Fees & Permits $1,200 $1,320 $1,452 $1,597 $1,757Office Supplies $1,500 $1,650 $1,815 $1,997 $2,196
Depreciation $1,542 $3,008 $4,622 $6,396 $8,348Payroll Burdon $21,540 $37,476 $54,412 $57,204 $96,022Total Personnel $143,600 $249,840 $362,746 $381,359 $640,147
Total Operating Expenses $258,682 $396,524 $556,719 $599,274 $921,691
Profit Before Interest and Taxes ($64,293) $108,387 $500,135 $1,503,111 $3,042,252EBITDA ($62,751) $111,395 $504,757 $1,509,508 $3,050,600
Interest Expense $0 $0 $0 $0 $0Taxes Incurred $0 $0 $0 $0 $0
Net Profit ($64,293) $108,387 $500,135 $1,503,111 $3,042,252Net Profit/Sales -21.43% 14.39% 31.91% 48.49% 52.36%
Pro Forma Profit and Loss0% 0%
Year 1
29%
71%
0% 14%
Year 2
33%
53%
14%
Year 3
33%
35%0%
32%
Year 4
32%
19%
0%
49%
$
$10,000
$15,000
$20,000
$25,000Gross Margin & Profit Monthly
-$15,000
-$10,000
-$5,000
$0
$5,000
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0
Mon
th 1
1
Mon
th 1
2
Gross Margin
Profit
24 25
The important factor in the cash flow analysis is that the Company never runs out of cash while in periods of non-profitability. The cash flow
supports the Company’s operations adequately and allows the Company to expand through more aggressive marketing.
6.5 Projected Cash Flow
6.6 Projected Balance Sheet
6.7 Sensitivity Analysis
-$100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0
Mon
th 1
1
Mon
th 1
2
Cash
Net Cash Flow
Cash Balance
Year 1 Year 2 Year 3 Year 4 Year 5Cash ReceivedCash Sales $300,000 $753,342 $1,567,403 $3,099,697 $5,810,692
New Long-term Liabilities $0 $0 $0 $0 $0Sales of Other Current Assets $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0New Investment Received $1,000,000 $0 $0 $0 $0
Subtotal Cash Received $1,300,000 $753,342 $1,567,403 $3,099,697 $5,810,692
ExpendituresExpenditures from Operations
Cash Spending $143,600 $249,840 $362,746 $381,359 $640,147 Bill Payments $209,440 $385,704 $687,251 $1,187,915 $2,082,502
Subtotal Spent on Operations $353,040 $635,544 $1,049,997 $1,569,274 $2,722,649
Additional Cash SpentLong-term Liabilities Principal $0 $0 $0 $0 $0Purchase Inventory $29,678 $62,917 $127,093 $244,018 $444,113 Purchase Long-term Assets $20,000 $22,000 $24,200 $26,620 $29,282 Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $402,718 $720,461 $1,201,290 $1,839,913 $3,196,044
Net Cash Flow $897,282 $32,881 $366,113 $1,259,784 $2,614,648 Cash Balance $773,426 $806,307 $1,172,420 $2,432,205 $5,046,852
Pro Forma Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5AssetsCurrent Assets
Cash $773,426 $806,307 $1,172,420 $2,432,205 $5,046,852 Inventory $90,562 $153,479 $280,572 $524,590 $968,703
Total Current Assets $863,988 $959,786 $1,452,992 $2,956,795 $6,015,556
Long-term AssetsLong-term Assets $23,123 $45,123 $69,323 $95,943 $125,225
Accumulated Depreciation $1,542 $4,550 $9,171 $15,568 $23,916
Total Long-term Assets $21,582 $40,574 $60,152 $80,376 $101,309 Total Assets $885,570 $1,000,360 $1,513,144 $3,037,171 $6,116,865
Liabilities and CapitalCurrent Liabilities
Accounts Payable $9,711 $16,114 $28,763 $49,678 $87,121Subtotal Current Liabilities $9,711 $16,114 $28,763 $49,678 $87,121
Long-term Liabilities $0 $0 $0 $0 $0Total Liabilities $9,711 $16,114 $28,763 $49,678 $87,121
Paid-in Capital $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Retained Earnings ($59,848) ($124,141) ($15,754) $484,381 $1,987,493 Earnings ($64,293) $108,387 $500,135 $1,503,111 $3,042,252 Total Capital $875,859 $984,246 $1,484,381 $2,987,493 $6,029,744 Total Liabilities and Capital $885,570 $1,000,360 $1,513,144 $3,037,171 $6,116,865
Net Worth $875,859 $984,246 $1,484,381 $2,987,493 $6,029,744
Pro Forma Balance Sheet
The sensitivity analysis provides a crucial “what if” scenario. The best case and worse case tables below are based on factors assuming
that sales are 15% higher or lower than figures projected earlier in this business plan.
Year 1 Year 2 Year 3 Year 4 Year 5Sales $345,000 $866,343 $1,802,514 $3,564,651 $6,682,296COGS $121,453 $285,695 $587,131 $1,146,909 $2,123,762GM $223,547 $580,648 $1,215,383 $2,417,743 $4,558,534Gm% 64.80% 67.02% 67.43% 67.83% 68.22%O/E $258,682 $396,524 $556,719 $599,274 $921,691Net Profit ($35,135) $184,124 $658,664 $1,818,469 $3,636,843Cash Flow $799,261 $110,149 $527,789 $1,581,290 $3,220,623Cash Balance $803,379 $913,528 $1,441,316 $3,022,606 $6,243,230Net Profit/Sales -10.18% 21.25% 36.54% 51.01% 54.43%
Best Case Scenario (Sales Increase by 15%)
Year 1 Year 2 Year 3 Year 4 Year 5Sales $260,870 $655,080 $1,362,959 $2,695,389 $5,052,775COGS $91,836 $216,027 $443,955 $867,228 $1,605,869GM $169,033 $439,053 $919,004 $1,828,161 $3,446,906Gm% 64.80% 67.02% 67.43% 67.83% 68.22%O/E $258,682 $396,524 $556,719 $599,274 $921,691Net Profit ($89,648) $42,529 $362,285 $1,228,887 $2,525,216Cash Flow $743,262 ($34,309) $225,526 $980,214 $2,087,713Cash Balance $747,380 $713,071 $938,597 $1,918,812 $4,006,524
Net Profit/Sales -34.37% 6.49% 26.58% 45.59% 49.98%
Worst Case Scenario (Sales Decrease by 15%)
26 27
The important factor in the cash flow analysis is that the Company never runs out of cash while in periods of non-profitability. The cash flow
supports the Company’s operations adequately and allows the Company to expand through more aggressive marketing.
6.5 Projected Cash Flow
6.6 Projected Balance Sheet
6.7 Sensitivity Analysis
-$100,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0
Mon
th 1
1
Mon
th 1
2
Cash
Net Cash Flow
Cash Balance
Year 1 Year 2 Year 3 Year 4 Year 5Cash ReceivedCash Sales $300,000 $753,342 $1,567,403 $3,099,697 $5,810,692
New Long-term Liabilities $0 $0 $0 $0 $0Sales of Other Current Assets $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0New Investment Received $1,000,000 $0 $0 $0 $0
Subtotal Cash Received $1,300,000 $753,342 $1,567,403 $3,099,697 $5,810,692
ExpendituresExpenditures from Operations
Cash Spending $143,600 $249,840 $362,746 $381,359 $640,147 Bill Payments $209,440 $385,704 $687,251 $1,187,915 $2,082,502
Subtotal Spent on Operations $353,040 $635,544 $1,049,997 $1,569,274 $2,722,649
Additional Cash SpentLong-term Liabilities Principal $0 $0 $0 $0 $0Purchase Inventory $29,678 $62,917 $127,093 $244,018 $444,113 Purchase Long-term Assets $20,000 $22,000 $24,200 $26,620 $29,282 Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $402,718 $720,461 $1,201,290 $1,839,913 $3,196,044
Net Cash Flow $897,282 $32,881 $366,113 $1,259,784 $2,614,648 Cash Balance $773,426 $806,307 $1,172,420 $2,432,205 $5,046,852
Pro Forma Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5AssetsCurrent Assets
Cash $773,426 $806,307 $1,172,420 $2,432,205 $5,046,852 Inventory $90,562 $153,479 $280,572 $524,590 $968,703
Total Current Assets $863,988 $959,786 $1,452,992 $2,956,795 $6,015,556
Long-term AssetsLong-term Assets $23,123 $45,123 $69,323 $95,943 $125,225
Accumulated Depreciation $1,542 $4,550 $9,171 $15,568 $23,916
Total Long-term Assets $21,582 $40,574 $60,152 $80,376 $101,309 Total Assets $885,570 $1,000,360 $1,513,144 $3,037,171 $6,116,865
Liabilities and CapitalCurrent Liabilities
Accounts Payable $9,711 $16,114 $28,763 $49,678 $87,121Subtotal Current Liabilities $9,711 $16,114 $28,763 $49,678 $87,121
Long-term Liabilities $0 $0 $0 $0 $0Total Liabilities $9,711 $16,114 $28,763 $49,678 $87,121
Paid-in Capital $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Retained Earnings ($59,848) ($124,141) ($15,754) $484,381 $1,987,493 Earnings ($64,293) $108,387 $500,135 $1,503,111 $3,042,252 Total Capital $875,859 $984,246 $1,484,381 $2,987,493 $6,029,744 Total Liabilities and Capital $885,570 $1,000,360 $1,513,144 $3,037,171 $6,116,865
Net Worth $875,859 $984,246 $1,484,381 $2,987,493 $6,029,744
Pro Forma Balance Sheet
The sensitivity analysis provides a crucial “what if” scenario. The best case and worse case tables below are based on factors assuming
that sales are 15% higher or lower than figures projected earlier in this business plan.
Year 1 Year 2 Year 3 Year 4 Year 5Sales $345,000 $866,343 $1,802,514 $3,564,651 $6,682,296COGS $121,453 $285,695 $587,131 $1,146,909 $2,123,762GM $223,547 $580,648 $1,215,383 $2,417,743 $4,558,534Gm% 64.80% 67.02% 67.43% 67.83% 68.22%O/E $258,682 $396,524 $556,719 $599,274 $921,691Net Profit ($35,135) $184,124 $658,664 $1,818,469 $3,636,843Cash Flow $799,261 $110,149 $527,789 $1,581,290 $3,220,623Cash Balance $803,379 $913,528 $1,441,316 $3,022,606 $6,243,230Net Profit/Sales -10.18% 21.25% 36.54% 51.01% 54.43%
Best Case Scenario (Sales Increase by 15%)
Year 1 Year 2 Year 3 Year 4 Year 5Sales $260,870 $655,080 $1,362,959 $2,695,389 $5,052,775COGS $91,836 $216,027 $443,955 $867,228 $1,605,869GM $169,033 $439,053 $919,004 $1,828,161 $3,446,906Gm% 64.80% 67.02% 67.43% 67.83% 68.22%O/E $258,682 $396,524 $556,719 $599,274 $921,691Net Profit ($89,648) $42,529 $362,285 $1,228,887 $2,525,216Cash Flow $743,262 ($34,309) $225,526 $980,214 $2,087,713Cash Balance $747,380 $713,071 $938,597 $1,918,812 $4,006,524
Net Profit/Sales -34.37% 6.49% 26.58% 45.59% 49.98%
Worst Case Scenario (Sales Decrease by 15%)
26 27
Appen
dixM
onth
1M
onth
2M
onth
3M
onth
4M
onth
5M
onth
6M
onth
7M
onth
8M
onth
9M
onth
10
Mon
th 1
1M
onth
12
Uni
t Sal
esD
irect
Sal
es17
518
319
220
221
222
323
424
625
827
128
429
9D
irect
Affi
liate
Sal
es88
9297
102
107
112
118
124
130
137
143
151
Who
lesa
le24
926
227
528
930
331
833
435
136
838
740
642
6W
hole
sale
Fro
m S
ales
Rep
293
308
323
340
357
374
393
413
433
455
478
502
Tota
l Uni
t Sal
es80
584
688
893
297
91,
028
1,07
91,
133
1,19
01,
249
1,31
21,
377
Uni
t Pric
e
Dire
ct S
ales
$37.
79$3
7.79
$37.
79$3
7.79
$37.
79$3
7.79
$37.
79$3
7.79
$37.
79$3
7.79
$37.
79$3
7.79
Dire
ct A
ffilia
te S
ales
$32.
12$3
2.12
$32.
12$3
2.12
$32.
12$3
2.12
$32.
12$3
2.12
$32.
12$3
2.12
$32.
12$3
2.12
Who
lesa
le$1
8.90
$18.
90$1
8.90
$18.
90$1
8.90
$18.
90$1
8.90
$18.
90$1
8.90
$18.
90$1
8.90
$18.
90W
hole
sale
Fro
m S
ales
Rep
$16.
06$1
6.06
$16.
06$1
6.06
$16.
06$1
6.06
$16.
06$1
6.06
$16.
06$1
6.06
$16.
06$1
6.06
Sal
es Dire
ct S
ales
$6,5
97$6
,927
$7,2
73$7
,636
$8,0
18$8
,419
$8,8
40$9
,282
$9,7
46$1
0,23
4$1
0,74
5$1
1,28
3D
irect
Affi
liate
Sal
es$2
,827
$2,9
69$3
,117
$3,2
73$3
,436
$3,6
08$3
,789
$3,9
78$4
,177
$4,3
86$4
,605
$4,8
35W
hole
sale
$4,7
12$4
,948
$5,1
95$5
,455
$5,7
27$6
,014
$6,3
14$6
,630
$6,9
62$7
,310
$7,6
75$8
,059
Who
lesa
le F
rom
Sal
es R
ep$4
,712
$4,9
48$5
,195
$5,4
55$5
,727
$6,0
14$6
,314
$6,6
30$6
,962
$7,3
10$7
,675
$8,0
59To
tal S
ales
$18,
848
$19,
790
$20,
780
$21,
818
$22,
909
$24,
055
$25,
258
$26,
520
$27,
847
$29,
239
$30,
701
$32,
236
Dire
ct U
nit C
osts
Dire
ct S
ales
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
Dire
ct A
ffilia
te S
ales
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
Who
lesa
le$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4W
hole
sale
Fro
m S
ales
Rep
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
Dire
ct C
ost o
f Sal
esD
irect
Sal
es$1
,193
$1,2
53$1
,315
$1,3
81$1
,450
$1,5
23$1
,599
$1,6
79$1
,763
$1,8
51$1
,943
$2,0
41D
irect
Affi
liate
Sal
es$6
02$6
32$6
63$6
96$7
31$7
68$8
06$8
46$8
89$9
33$9
80$1
,029
Who
lesa
le$1
,704
$1,7
90$1
,879
$1,9
73$2
,072
$2,1
75$2
,284
$2,3
98$2
,518
$2,6
44$2
,776
$2,9
15W
hole
sale
Fro
m S
ales
Rep
$2,0
05$2
,105
$2,2
11$2
,321
$2,4
37$2
,559
$2,6
87$2
,821
$2,9
63$3
,111
$3,2
66$3
,430
Subt
otal
Dire
ct C
ost o
f Sal
es$5
,504
$5,7
79$6
,068
$6,3
72$6
,690
$7,0
25$7
,376
$7,7
45$8
,132
$8,5
39$8
,966
$9,4
14
Sale
s Fo
reca
st
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0 M
onth
11
Mon
th 1
2
Per
sonn
el C
ount
Exe
cutiv
es2
22
22
22
22
22
2
Dire
ctor
of M
arke
ting
00
00
00
00
00
00
Adm
in A
ssis
tant
00
00
00
00
00
00
Inte
rn1
11
11
11
11
11
1
Dire
ctor
of S
ales
00
00
00
00
00
00
Boo
kkee
per
11
11
11
11
11
11
Dis
tribu
tion
Man
ager
00
00
00
00
00
00
Add
ition
al E
mpl
oyee
s0
00
00
00
00
00
0
Tota
l Per
sonn
el4
44
44
44
44
44
4
Per
sonn
el W
age
Exe
cutiv
es$5
,833
$5,8
33$5
,833
$5,8
33$5
,833
$5,8
33$5
,833
$5,8
33$5
,833
$5,8
33$5
,833
$5,8
33
Dire
ctor
of M
arke
ting
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Adm
in A
ssis
tant
$2,0
00$2
,000
$2,0
00$2
,000
$2,0
00$2
,000
$2,0
00$2
,000
$2,0
00$2
,000
$2,0
00$2
,000
Inte
rn$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Dire
ctor
of S
ales
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Boo
kkee
per
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Dis
tribu
tion
Man
ager
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Add
ition
al E
mpl
oyee
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Per
sonn
el C
osts
Exe
cutiv
es$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7
Dire
ctor
of M
arke
ting
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Adm
in A
ssis
tant
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Inte
rn$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Dire
ctor
of S
ales
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Boo
kkee
per
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Dis
tribu
tion
Man
ager
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Add
ition
al E
mpl
oyee
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Tota
l Pay
roll
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
Pers
onne
l
29
Appen
dixM
onth
1M
onth
2M
onth
3M
onth
4M
onth
5M
onth
6M
onth
7M
onth
8M
onth
9M
onth
10
Mon
th 1
1M
onth
12
Uni
t Sal
esD
irect
Sal
es17
518
319
220
221
222
323
424
625
827
128
429
9D
irect
Affi
liate
Sal
es88
9297
102
107
112
118
124
130
137
143
151
Who
lesa
le24
926
227
528
930
331
833
435
136
838
740
642
6W
hole
sale
Fro
m S
ales
Rep
293
308
323
340
357
374
393
413
433
455
478
502
Tota
l Uni
t Sal
es80
584
688
893
297
91,
028
1,07
91,
133
1,19
01,
249
1,31
21,
377
Uni
t Pric
e
Dire
ct S
ales
$37.
79$3
7.79
$37.
79$3
7.79
$37.
79$3
7.79
$37.
79$3
7.79
$37.
79$3
7.79
$37.
79$3
7.79
Dire
ct A
ffilia
te S
ales
$32.
12$3
2.12
$32.
12$3
2.12
$32.
12$3
2.12
$32.
12$3
2.12
$32.
12$3
2.12
$32.
12$3
2.12
Who
lesa
le$1
8.90
$18.
90$1
8.90
$18.
90$1
8.90
$18.
90$1
8.90
$18.
90$1
8.90
$18.
90$1
8.90
$18.
90W
hole
sale
Fro
m S
ales
Rep
$16.
06$1
6.06
$16.
06$1
6.06
$16.
06$1
6.06
$16.
06$1
6.06
$16.
06$1
6.06
$16.
06$1
6.06
Sal
es Dire
ct S
ales
$6,5
97$6
,927
$7,2
73$7
,636
$8,0
18$8
,419
$8,8
40$9
,282
$9,7
46$1
0,23
4$1
0,74
5$1
1,28
3D
irect
Affi
liate
Sal
es$2
,827
$2,9
69$3
,117
$3,2
73$3
,436
$3,6
08$3
,789
$3,9
78$4
,177
$4,3
86$4
,605
$4,8
35W
hole
sale
$4,7
12$4
,948
$5,1
95$5
,455
$5,7
27$6
,014
$6,3
14$6
,630
$6,9
62$7
,310
$7,6
75$8
,059
Who
lesa
le F
rom
Sal
es R
ep$4
,712
$4,9
48$5
,195
$5,4
55$5
,727
$6,0
14$6
,314
$6,6
30$6
,962
$7,3
10$7
,675
$8,0
59To
tal S
ales
$18,
848
$19,
790
$20,
780
$21,
818
$22,
909
$24,
055
$25,
258
$26,
520
$27,
847
$29,
239
$30,
701
$32,
236
Dire
ct U
nit C
osts
Dire
ct S
ales
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
Dire
ct A
ffilia
te S
ales
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
Who
lesa
le$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4W
hole
sale
Fro
m S
ales
Rep
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
$6.8
4$6
.84
Dire
ct C
ost o
f Sal
esD
irect
Sal
es$1
,193
$1,2
53$1
,315
$1,3
81$1
,450
$1,5
23$1
,599
$1,6
79$1
,763
$1,8
51$1
,943
$2,0
41D
irect
Affi
liate
Sal
es$6
02$6
32$6
63$6
96$7
31$7
68$8
06$8
46$8
89$9
33$9
80$1
,029
Who
lesa
le$1
,704
$1,7
90$1
,879
$1,9
73$2
,072
$2,1
75$2
,284
$2,3
98$2
,518
$2,6
44$2
,776
$2,9
15W
hole
sale
Fro
m S
ales
Rep
$2,0
05$2
,105
$2,2
11$2
,321
$2,4
37$2
,559
$2,6
87$2
,821
$2,9
63$3
,111
$3,2
66$3
,430
Subt
otal
Dire
ct C
ost o
f Sal
es$5
,504
$5,7
79$6
,068
$6,3
72$6
,690
$7,0
25$7
,376
$7,7
45$8
,132
$8,5
39$8
,966
$9,4
14
Sale
s Fo
reca
st
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0 M
onth
11
Mon
th 1
2
Per
sonn
el C
ount
Exe
cutiv
es2
22
22
22
22
22
2
Dire
ctor
of M
arke
ting
00
00
00
00
00
00
Adm
in A
ssis
tant
00
00
00
00
00
00
Inte
rn1
11
11
11
11
11
1
Dire
ctor
of S
ales
00
00
00
00
00
00
Boo
kkee
per
11
11
11
11
11
11
Dis
tribu
tion
Man
ager
00
00
00
00
00
00
Add
ition
al E
mpl
oyee
s0
00
00
00
00
00
0
Tota
l Per
sonn
el4
44
44
44
44
44
4
Per
sonn
el W
age
Exe
cutiv
es$5
,833
$5,8
33$5
,833
$5,8
33$5
,833
$5,8
33$5
,833
$5,8
33$5
,833
$5,8
33$5
,833
$5,8
33
Dire
ctor
of M
arke
ting
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Adm
in A
ssis
tant
$2,0
00$2
,000
$2,0
00$2
,000
$2,0
00$2
,000
$2,0
00$2
,000
$2,0
00$2
,000
$2,0
00$2
,000
Inte
rn$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Dire
ctor
of S
ales
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Boo
kkee
per
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Dis
tribu
tion
Man
ager
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Add
ition
al E
mpl
oyee
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Per
sonn
el C
osts
Exe
cutiv
es$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7$1
1,66
7
Dire
ctor
of M
arke
ting
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Adm
in A
ssis
tant
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Inte
rn$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Dire
ctor
of S
ales
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Boo
kkee
per
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
Dis
tribu
tion
Man
ager
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Add
ition
al E
mpl
oyee
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Tota
l Pay
roll
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
Pers
onne
l
29
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0 M
onth
11
Mon
th 1
2
Sal
es$1
8,84
8$1
9,79
0$2
0,78
0$2
1,81
8$2
2,90
9$2
4,05
5$2
5,25
8$2
6,52
0$2
7,84
7$2
9,23
9$3
0,70
1$3
2,23
6
Dire
ct C
ost o
f Sal
es$5
,504
$5,7
79$6
,068
$6,3
72$6
,690
$7,0
25$7
,376
$7,7
45$8
,132
$8,5
39$8
,966
$9,4
14
Tota
l Cos
t of S
ales
$6,6
35$6
,967
$7,3
15$7
,681
$8,0
65$8
,468
$8,8
92$9
,336
$9,8
03$1
0,29
3$1
0,80
8$1
1,34
8
Gro
ss M
argi
n$1
2,21
3$1
2,82
3$1
3,46
4$1
4,13
8$1
4,84
4$1
5,58
7$1
6,36
6$1
7,18
4$1
8,04
3$1
8,94
6$1
9,89
3$2
0,88
8
Gro
ss M
argi
n %
64.8
0%64
.80%
64.8
0%64
.80%
64.8
0%64
.80%
64.8
0%64
.80%
64.8
0%64
.80%
64.8
0%64
.80%
Exp
ense
s
Adv
ertis
ing
& M
arke
ting
$4,1
67$4
,167
$4,1
67$4
,167
$4,1
67$4
,167
$4,1
67$4
,167
$4,1
67$4
,167
$4,1
67$4
,167
Trav
el$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Leas
ed E
quip
men
t$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50
Ren
t$1
,500
$1,5
00$1
,500
$1,5
00$1
,500
$1,5
00$1
,500
$1,5
00$1
,500
$1,5
00$1
,500
$1,5
00
Util
ities
$525
$525
$525
$525
$525
$525
$525
$525
$525
$525
$525
$525
Insu
ranc
e$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50
Con
sulta
nts
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Due
s &
Sub
scrip
tions
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
Fees
& P
erm
its$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00
Offi
ce S
uppl
ies
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
Dep
reci
atio
n$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28
Pay
roll
Bur
don
$1,7
95$1
,795
$1,7
95$1
,795
$1,7
95$1
,795
$1,7
95$1
,795
$1,7
95$1
,795
$1,7
95$1
,795
Tota
l Per
sonn
el$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7
Tota
l Ope
ratin
g Ex
pens
es$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7
Pro
fit B
efor
e In
tere
st a
nd T
axes
($9,
344)
($8,
734)
($8,
092)
($7,
419)
($6,
712)
($5,
970)
($5,
191)
($4,
373)
($3,
513)
($2,
611)
($1,
664)
($66
9)
Inte
rest
Exp
ense
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Taxe
s In
curr
ed$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Net
Pro
fit($
9,34
4)($
8,73
4)($
8,09
2)($
7,41
9)($
6,71
2)($
5,97
0)($
5,19
1)($
4,37
3)($
3,51
3)($
2,61
1)($
1,66
4)($
669)
Net
Pro
fit/S
ales
-49.
58%
-44.
13%
-38.
94%
-34.
00%
-29.
30%
-24.
82%
-20.
55%
-16.
49%
-12.
62%
-8.9
3%-5
.42%
-2.0
8%
Prof
it an
d Lo
ss
Add
ition
al C
ash
Rec
eive
dM
onth
1M
onth
2M
onth
3M
onth
4M
onth
5M
onth
6M
onth
7M
onth
8M
onth
9M
onth
10
Mon
th 1
1M
onth
12
Cas
h S
ales
$18,
848
$19,
790
$20,
780
$21,
818
$22,
909
$24,
055
$25,
258
$26,
520
$27,
847
$29,
239
$30,
701
$32,
236
New
Lon
g-te
rm L
iabi
litie
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Sal
es o
f Oth
er C
urre
nt A
sset
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Sal
es o
f Lon
g-te
rm A
sset
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
New
Inve
stm
ent R
ecei
ved
$1,0
00,0
00$0
$0$0
$0$0
$0$0
$0$0
$0$0
Sub
tota
l Cas
h R
ecei
ved
$1,0
18,8
48$1
9,79
0$2
0,78
0$2
1,81
8$2
2,90
9$2
4,05
5$2
5,25
8$2
6,52
0$2
7,84
7$2
9,23
9$3
0,70
1$3
2,23
6
Cas
h S
pend
ing
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
Bill
Pay
men
ts$8
,585
$16,
274
$16,
614
$16,
972
$17,
347
$17,
742
$18,
156
$18,
590
$19,
047
$19,
526
$20,
029
$20,
558
Add
ition
al C
ash
Spe
nt
Long
-term
Lia
bilit
ies
Prin
cipa
l Rep
aym
ent
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Pur
chas
e In
vent
ory
$17,
352
$868
$911
$957
$1,0
04$1
,055
$1,1
07$1
,163
$1,2
21$1
,282
$1,3
46$1
,413
Pur
chas
e Lo
ng-te
rm A
sset
s$2
0,00
0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Div
iden
ds$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Cas
h S
pent
$185
,878
$29,
108
$29,
492
$29,
895
$30,
318
$30,
763
$31,
230
$31,
720
$32,
234
$32,
775
$33,
342
$33,
938
Net
Cas
h Fl
ow$8
32,9
70($
9,31
8)($
8,71
2)($
8,07
7)($
7,40
9)($
6,70
8)($
5,97
2)($
5,19
9)($
4,38
8)($
3,53
6)($
2,64
1)($
1,70
2)
Cas
h B
alan
ce$8
37,0
88$8
27,7
70$8
19,0
58$8
10,9
81$8
03,5
72$7
96,8
64$7
90,8
92$7
85,6
93$7
81,3
05$7
77,7
69$7
75,1
28$7
73,4
26
Cas
h Fl
ow
Appen
dix
31
Mon
th 1
Mon
th 2
Mon
th 3
Mon
th 4
Mon
th 5
Mon
th 6
Mon
th 7
Mon
th 8
Mon
th 9
Mon
th 1
0 M
onth
11
Mon
th 1
2
Sal
es$1
8,84
8$1
9,79
0$2
0,78
0$2
1,81
8$2
2,90
9$2
4,05
5$2
5,25
8$2
6,52
0$2
7,84
7$2
9,23
9$3
0,70
1$3
2,23
6
Dire
ct C
ost o
f Sal
es$5
,504
$5,7
79$6
,068
$6,3
72$6
,690
$7,0
25$7
,376
$7,7
45$8
,132
$8,5
39$8
,966
$9,4
14
Tota
l Cos
t of S
ales
$6,6
35$6
,967
$7,3
15$7
,681
$8,0
65$8
,468
$8,8
92$9
,336
$9,8
03$1
0,29
3$1
0,80
8$1
1,34
8
Gro
ss M
argi
n$1
2,21
3$1
2,82
3$1
3,46
4$1
4,13
8$1
4,84
4$1
5,58
7$1
6,36
6$1
7,18
4$1
8,04
3$1
8,94
6$1
9,89
3$2
0,88
8
Gro
ss M
argi
n %
64.8
0%64
.80%
64.8
0%64
.80%
64.8
0%64
.80%
64.8
0%64
.80%
64.8
0%64
.80%
64.8
0%64
.80%
Exp
ense
s
Adv
ertis
ing
& M
arke
ting
$4,1
67$4
,167
$4,1
67$4
,167
$4,1
67$4
,167
$4,1
67$4
,167
$4,1
67$4
,167
$4,1
67$4
,167
Trav
el$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Leas
ed E
quip
men
t$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50$2
50
Ren
t$1
,500
$1,5
00$1
,500
$1,5
00$1
,500
$1,5
00$1
,500
$1,5
00$1
,500
$1,5
00$1
,500
$1,5
00
Util
ities
$525
$525
$525
$525
$525
$525
$525
$525
$525
$525
$525
$525
Insu
ranc
e$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50$3
50
Con
sulta
nts
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
$500
Due
s &
Sub
scrip
tions
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
$150
Fees
& P
erm
its$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00$1
00
Offi
ce S
uppl
ies
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
$125
Dep
reci
atio
n$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28$1
28
Pay
roll
Bur
don
$1,7
95$1
,795
$1,7
95$1
,795
$1,7
95$1
,795
$1,7
95$1
,795
$1,7
95$1
,795
$1,7
95$1
,795
Tota
l Per
sonn
el$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7$1
1,96
7
Tota
l Ope
ratin
g Ex
pens
es$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7$2
1,55
7
Pro
fit B
efor
e In
tere
st a
nd T
axes
($9,
344)
($8,
734)
($8,
092)
($7,
419)
($6,
712)
($5,
970)
($5,
191)
($4,
373)
($3,
513)
($2,
611)
($1,
664)
($66
9)
Inte
rest
Exp
ense
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Taxe
s In
curr
ed$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Net
Pro
fit($
9,34
4)($
8,73
4)($
8,09
2)($
7,41
9)($
6,71
2)($
5,97
0)($
5,19
1)($
4,37
3)($
3,51
3)($
2,61
1)($
1,66
4)($
669)
Net
Pro
fit/S
ales
-49.
58%
-44.
13%
-38.
94%
-34.
00%
-29.
30%
-24.
82%
-20.
55%
-16.
49%
-12.
62%
-8.9
3%-5
.42%
-2.0
8%
Prof
it an
d Lo
ss
Add
ition
al C
ash
Rec
eive
dM
onth
1M
onth
2M
onth
3M
onth
4M
onth
5M
onth
6M
onth
7M
onth
8M
onth
9M
onth
10
Mon
th 1
1M
onth
12
Cas
h S
ales
$18,
848
$19,
790
$20,
780
$21,
818
$22,
909
$24,
055
$25,
258
$26,
520
$27,
847
$29,
239
$30,
701
$32,
236
New
Lon
g-te
rm L
iabi
litie
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Sal
es o
f Oth
er C
urre
nt A
sset
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Sal
es o
f Lon
g-te
rm A
sset
s$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
New
Inve
stm
ent R
ecei
ved
$1,0
00,0
00$0
$0$0
$0$0
$0$0
$0$0
$0$0
Sub
tota
l Cas
h R
ecei
ved
$1,0
18,8
48$1
9,79
0$2
0,78
0$2
1,81
8$2
2,90
9$2
4,05
5$2
5,25
8$2
6,52
0$2
7,84
7$2
9,23
9$3
0,70
1$3
2,23
6
Cas
h S
pend
ing
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
$11,
967
Bill
Pay
men
ts$8
,585
$16,
274
$16,
614
$16,
972
$17,
347
$17,
742
$18,
156
$18,
590
$19,
047
$19,
526
$20,
029
$20,
558
Add
ition
al C
ash
Spe
nt
Long
-term
Lia
bilit
ies
Prin
cipa
l Rep
aym
ent
$0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Pur
chas
e In
vent
ory
$17,
352
$868
$911
$957
$1,0
04$1
,055
$1,1
07$1
,163
$1,2
21$1
,282
$1,3
46$1
,413
Pur
chas
e Lo
ng-te
rm A
sset
s$2
0,00
0$0
$0$0
$0$0
$0$0
$0$0
$0$0
Div
iden
ds$0
$0$0
$0$0
$0$0
$0$0
$0$0
$0
Cas
h S
pent
$185
,878
$29,
108
$29,
492
$29,
895
$30,
318
$30,
763
$31,
230
$31,
720
$32,
234
$32,
775
$33,
342
$33,
938
Net
Cas
h Fl
ow$8
32,9
70($
9,31
8)($
8,71
2)($
8,07
7)($
7,40
9)($
6,70
8)($
5,97
2)($
5,19
9)($
4,38
8)($
3,53
6)($
2,64
1)($
1,70
2)
Cas
h B
alan
ce$8
37,0
88$8
27,7
70$8
19,0
58$8
10,9
81$8
03,5
72$7
96,8
64$7
90,8
92$7
85,6
93$7
81,3
05$7
77,7
69$7
75,1
28$7
73,4
26
Cas
h Fl
ow
Appen
dix
31
1. ACNielson. “Male Grooming Habits Key Driver of Growth in Personal Care Products.” June 2004. Obtained at: http://www2.acnielsen.com/news/20040622.shtml.
2. Al Bawaba. “Global Male Grooming Industry Worth AED 59 Billion.” July 2007. Obtained at: http://www.tmcnet.com/usubmit/2007/07/30/2822101.htm
3. Business Analyst Online. Demographic Reports Age, Sex, Income. August 2007
4. Dun & Bradstreet, Industry Data for SIC 5122-0000 and 5122-0200; obtained July 2007
Citations
33
1. ACNielson. “Male Grooming Habits Key Driver of Growth in Personal Care Products.” June 2004. Obtained at: http://www2.acnielsen.com/news/20040622.shtml.
2. Al Bawaba. “Global Male Grooming Industry Worth AED 59 Billion.” July 2007. Obtained at: http://www.tmcnet.com/usubmit/2007/07/30/2822101.htm
3. Business Analyst Online. Demographic Reports Age, Sex, Income. August 2007
4. Dun & Bradstreet, Industry Data for SIC 5122-0000 and 5122-0200; obtained July 2007
Citations
33
www . you r r i t u a l . com
