I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a souvenir gift shop located in the heart of [Location]. We have an enormous selection of souvenirs, gifts, and other items that will commemorate our customers’ visit to [Location]. We will offer a massive inventory and expect our most popular items to include mugs, shot glasses, t-shirts, magnets, and keychains. Our store will be located in a prime location in the heart of downtown near several tourist attractions. Tourists will easily find our store while walking around downtown and checking out the sights. Any tourists who can’t come to our store in person can shop our inventory on our website.
Products Served
[Company Name] will sell the following souvenirs in its gift shop:
- Mugs
- T-shirts
- Postcards
- Magnets
- Keychains
- Flags
- Shot glasses
- Books about [Location]
Customer Focus
[Company Name] will primarily serve the local tourist industry. [Location] is a popular destination and receives over a million tourists annually.
[Company Name] will also serve the community of [Location]. The demographics of these customers are as follows:
- 502,124 residents
- 289,741 workers
- Average income of $61,000
- 39% married
- 40% in Mgt./Professional occupations
- Median age: 40 years
Management Team
[Company Name] is led by [Founder’s Name], whose family has run retail stores for more than 30 years. [Founder’s Name] has spent his career working in various roles in these stores, from cashier to upper management. In addition to his extensive experience, he graduated from the [University] where he majored in Business Administration. His experience and education will be our most valuable assets.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The location is in high traffic with significant numbers of tourists and other passersby daily.
- The management team has a track record of success running gift shops.
- Gift shops are highly successful in communities throughout the United States.
Financial Highlights
[Company Name] is seeking total funding of $310,000 to launch its gift shop. The capital will be used for funding the store build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Store design/build: $100,000
- Equipment and supplies: $50,000
- Initial inventory: $10,000
- Working capital: $150,000 to pay for marketing, salaries, and overhead 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% |
