products location floor plan equipment printing capacity: 120 shirts/hour
TRANSCRIPT
Products
Location
Floor Plan
Equipment
Printing Capacity: 120 Shirts/Hour
Capital Budget and GPM
Capital Budget Cost
Leasehold Improvements $6,460
Equipment & Screens $14,582
Net Working Capital $21,445
Total Capital Requirements
$42,487
Gross Margin
76%
Retail In-Store Price
Personalized Shirts $18-$20
In-House Designed Shirts $22-$25
Wholesale (B 2 B)
Personalized In-House
20-40 $15.50-$17.50 $18-$21
40-60 $13-$15 $15-$17
80-100 $10-$12 $13-$15No Credit Retail Sales
B 2 B Credit: Net 30 Days
Pricing
Positioning Statement
Providing quality press and print clothing with unique designs for individuals, sports teams and businesses in need of personalization or uniformity.
Press it. Wear it. Love it.
Target Market
In-store market 15-30 years old Made to order:
Business to Business Sport Rec leagues Camps Schools Tourism Moose Jaw
Promotion Strategy
Moose Jaw Warrior Halftime Shows Student Billboards Moose Jaw’s Sidewalk Days Moose Jaw Exhibition and Rodeo Annual Festival of Words Youth Quake
Target Range
Marketing Expenses
Category Cost
Exterior Sign $3,000
Logo Design $150
Business cards $25
Web Page $1,200
Telephone (long distance) $360
Radio (one 30 second ad per month) $3,000
Phonebook (yellow pages) $178
Newspaper (Moose Jaw Times Herald, once per week)
$3,557
Promotions (give-aways, demos, gifts, etc.)
$2,000
Community Newspaper (Daily Bean) $1,000
Total $14,470
Financial Budget
Year 1
Bank debt $25,000
Equity $20,000
Total $45,000
Cash Flow
1 2 3 4 5
(50,000)
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
(12,818)
17,648
60,632
145,659
307,345
Net Cash Flow
Net Cash Flow
Critical Variables
Number of B2B Sales Input Costs
Break-Even Analysis
1 2 3 4 50
5
10
15
20
25
30
Base Case Cust/day Breakeven Cust/day
Nu
mb
er
of
Cu
sto
mers
p
er
Day
Sensitivity Analysis
Customers/Day Total 5 Year Profit
Net Payback
10 ($428,439) ($800,477)
15 ($183,433) ($354,527)
20 $69,577 $105,030
25 $346,433 $609,141
30 $615,278 $1,096,003
35 $881,502 $1,578,509
40 $1,147,726 $2,061,014
Contingency Plan
If Impresswear does not succeed, there will be a realized loss of $22,500 per owner
Owner Compensation
2013 2014 2015 2016 2017 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
40,000 40,464 40,933
61,532
83,368