I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a neighborhood vape shop located in [insert location here], that sells assorted electronic cigarette products and accessories. The Company will provide a large selection of products including starter kits, vape pens, vape mods, vape pods, dry herb vapes, disposable vapes and flavored liquid.
Products Served
[Company Name] will operate a vape shop that sells electronic cigarette products and accessories:
- Electronic cigarettes
- Electronic cigarette accessories
- Tank refills
- Vaping equipment
- E-liquids
Customer Focus
[Company Name] will primarily offer its products to the residents living within a 10-mile radius of the business location. The demographics of these customers are:
- 47,827 residents
- Average income of $74,700
- 58.9% married
- 49.6% in Professional occupations
- Median age: 38 years
Management Team
[Company Name] is led by [Founder’s name], who has been in the vaping industry for [x] years. He has worked extensively in the e-cigarette manufacturing industry during his career. Additionally, he has managed several vape shops, smoke shops, bars, and nightclubs in the local market. As such [Founder] has an in-depth knowledge of the vape shop business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for e-cigarettes and vape products in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the products, supporting the business after launch.
- The Company’s location is in a high-volume traffic area and will thus be highly convenient for a significant number of youngsters visiting nearby. The Company plans to set up its shop in a strategic location with plenty of foot traffic and sufficient parking space.
- The management team has a track record of success in the e-cigar business.
- The upscale vaping business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $270,000 to launch the vape shop. Specifically, these funds will be used as follows:
- Store design/build: $150,000
- Working capital: $120,000 to pay for marketing, salaries, inventory and supplies, 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% |
