Our location, adjacent to the university campus in a commercial area featuring a bookstore, bank, cafes, movie theatre, and a coffee shop is ideal. We receive constant, daily visual exposure from students. Students and staff are constantly walking outside our door, and we intend to benefit from the traffic. Our nearest competitor is several blocks away, removed from the heart of the university commercial sector of town. For the student customer in a hurry Cycle City is the immediate solution to their needs.

The negotiations of the past two years also brings the advantage of continued financial agreements with major suppliers. This is an advantage over a new bicycle shop. Traditionally a start-up store will be placed on a Cash On Delivery (COD) status by bicycle manufacturers and parts/accessories suppliers. The COD status stays in effect until the new shop demonstrates its ability to manage its orders and cash flow. This also means the new shop must have more funding to be able to write checks on a moments notice, for large amounts.

Cycle City will be continuing an established system of dating programs, ordering, delivery, and invoicing/accounts payable, stabilizing our funding needs and monthly cash flow.

It is estimated that, with purchase of the building taking place in June of this year, the conversion into storage units could be completed and ready for occupancy by the end of the year. Demand for the units is strong, as evidenced by the market survey of existing self storage facilities. Bank financing for 70% of the project costs is expected with the remainder supplied by shareholder equity.

The business will be based out of Tracey Kay’s home. Tracey will be responsible for scheduling, estimates, training, inventory, ordering, payroll and customer care management. The business organizational type will be a sole proprietorship, with six employees scheduled to be hired within the first 12 months.

According to sales forecasts, net profits within six months will be 15% of sales and will grow to 15% by year three.

• Print media advertising: The Birmingham Gazette, a weekly entertainment guide. Similar weekly entertainment guides will be used with expansion to different cities.
• Flyers: Passed around to local businesses with coupons attached to introduce the community to Bubba’s and creating an economic incentive to try it.
• Entertainment book coupons: Presented within the first twelve months of entering a market. The effectiveness of these books diminishes after approximately eight months and Bubba’s will turn to more cost effective marketing methods.

Much of the equipment to go into the facilities such as tools, air compressors, etc., are currently owned by the two partners.

Table:  Start-up

The business will be based out of Julie Lee’s home, who will be responsible for scheduling, providing estimates, conducting training, payroll and customer care management. The business organizational type will be a sole proprietorship, with four employees within the first year of operation.
Based on sales forecasts, net profits within six months will be 15% of sales and will grow to 20% by year three.

Coffee House is determined to become a daily habit for local coffee drinkers, a comfortable place to meet your friends, read a book, and relax. With the growing demand for high-quality gourmet coffee and great service, Coffee House will take advantage of its closeness to the Downtown Mall to build a dedicated group of repeat customers. Coffee House will offer the best prepared coffee in the area as well as pastries and free magazines that its customers can read to enjoy their visit.

The company will operate a 1700 square foot commercial space within easy walking distance from the Downtown Mall. The owners have secured this location through a two year lease with an option for extending. They have also provided 25% of the required $125,000 start-up funds. The remaining capital will be obtained through a Bank of the West commercial loan.
The company is expected to grow sales revenue from $200,000 in FY2003 to $300,000 in FY2005. As Coffee House will strive to maintain a 45% gross profit margin and reasonable operating expenses, it will see net profits grow from $80,000 to $110,000 during the same period.