I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a new party rental business located in [Location]. Our mission is to provide high-quality decor and supplies to make every party or special gathering an unforgettable event. Our massive catalog includes furniture, inflatables, catering supplies, and activities. These all come in numerous styles and designs to fit any aesthetic. We offer short-term and long-term rentals and provide both pickup and delivery services. So whether our customers are planning a low-key birthday party or a luxurious corporate event, we have all the supplies needed to make their party unforgettable.
Products Served
[Company Name] offers a variety of party supplies, furniture, and gear for rent. Whether a customer is setting up a birthday party or a more formal occasion, we have all the supplies needed to make it unforgettable. Some of the items we rent out include:
- Tents
- Furniture
- Catering supplies
- Decorations
- Linens
- Games and activities
- Inflatables
Rentals can be booked on our website or in our store. We offer both short-term and long-term rentals on all of our supplies. We also provide a delivery and set-up service for larger gatherings and events. Minimum purchase applies.
Customer Focus
[Company Name] will serve residents living within 20 miles of the company’s location. The demographics of this area are as follows:
- 94,308 residents
- Median age: 35
- Average salary: $75,000
- 45% married
- 31% with families/children under 18
Management Team
[Company Name] is led by [Founder’s Name] who graduated from [University] where he majored in Business Administration. While [Founder’s Name] has never run his own party rental business before, he has worked in the party rental industry most recently as a general manager, and has helped customers set up their numerous events. As such [Founder’s Name] has in-depth knowledge of the operations and the management (e.g., scheduling, organizing, marketing, etc.) sides of this business.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is a high demand for party rental supply businesses. Party planning is stressful and expensive. Party rental stores help reduce stress by providing all the supplies needed and delivering them to the event.
- The management team has a track record of success in the party rental industry.
- The party rental business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $500,000 to launch. The funding will be dedicated to the store build-out, equipment and supplies, overhead, marketing expenses, and working capital. The breakout of the funding is below:
- Store design/build: $250,000
- Initial supplies and inventory: $150,000
- Working capital: $100,000 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% |
