I. Executive Summary
This Section's Contents
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Business Overview
[Company name] is a newly established perfume store located in [location]. The company will manufacture and sell a variety of perfume products and accessories, all made using natural ingredients found in nature. [Company Name]’s perfume products will be made using ethically and naturally sourced ingredients and will not include any harmful ingredients.
The company plans to manufacture all of its products in a small warehouse space and market and sell it locally at farmers markets, trade shows, industry events, etc. The company will also have a website where its perfumes will be sold online.
Products
[Company Name] will offer a variety of perfume products and accessories. The products include perfumes, colognes, body sprays, and lotions.
Customer Focus
[Company Name] will primarily serve the residents within a 1 to 50-mile radius of our location. The demographics of these residents are as follows:
- 3,462,789 residents
- Average income of $38,500
- Average household income of $75,600
- 49.62% married
- Median age: 36 years
[Company Name] will sell its perfume products to the local market initially, until it has achieved enough funding to begin to distribute nationwide and ultimately, globally.
Management Team
[Company name] will be owned and operated by [Founder’s Name], a local perfumer with a love for natural fragrances. [Founder] has been in the fragrance industry for over ten years, and previously ran the fragrance department at a large retailer where she learned the ins and outs of the industry. At this juncture, [Founder] is ready to take her knowledge and experience to the next level by creating her own brand.
From her knowledge in department stores and now as an independent perfume, [Founder] has plenty of management and operations experience as well as an understanding of how perfume companies operate on a day-to-day basis.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The company derives all of its ingredients directly from natural and ethically-motivated distributors.
- The company does not include harmful ingredients in its products.
- The fragrances are unique, refreshing, and mood enhancing.
- The owner is an experienced perfumer who knows the ins and outs of the industry and marketing her product.
- The pricing model is structured to be affordable to people from all walks of life.
Financial Highlights
[Company Name] is seeking a total funding of $725,000 of debt capital to launch the perfume business.
- Initial inventory: $200,000
- Manufacturing system: $100,000
- Down payment for manufacturing space in a warehouse: $50,000
- Brand development and marketing: $300,000
- Working capital: $75,000 to fund payroll, taxes, 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% |
