I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a small ecommerce company headquartered in [Location], that does Fulfillment by Amazon (aka Amazon FBA). The Company will use the Amazon FBA service to fulfill orders for its products placed through the Amazon marketplace.
Products Served
[Company Name] will maintain an inventory of its products at Amazon fulfillment centers, and when a customer places an order, FBA will handle the receiving, packing, shipping, customer service, and returns for those orders. The Company’s services include:
- 24/7 customer service
- All fulfillment and shipping costs included (pick, pack, and ship)
- Access to one of the world’s most dynamic fulfillment networks
Customer Focus
[Company Name], through Fulfillment by Amazon, will reach a much larger customer base than it would through a stand-alone ecommerce site. As an FBA seller, [Company Name] has access to millions of potential customers, worldwide. In addition, the FBA service provides Prime shipping, which has been identified as a major incentive to consumers.
Management Team
[Company Name] is owned and managed by [Founder’s name], who has been a graphic designer for [x] years. He has extensive experience in product design, working as a product director with one of the nation’s leading marketing firms prior to starting his own company. He will have the help and support of his business partner, [Insert Name], who will handle the procurement and admin tasks for the company.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There has been significant growth in Fulfillment by Amazon over the past few years. In addition, the company has served the local population and received highly positive feedback pointing towards an explicit demand for customized products (t-shirts, mugs, stickers, etc.), supporting the business after launch.
- The management team has a track record of success in the graphic design business.
- The Company will provide high-quality, unique products.
- The Amazon FBA business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is currently seeking $200,000 to launch its Amazon FBA business.
Specifically, these funds will be used as follows:
- Build-out and Startup costs: $20,000
- Working capital: $180,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even.
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
