We will have renovations costing $XXX based upon three estimates. The building is zoned R-3, commercial use.
Manufacturing Plan SAMPLE: We will be using a conventional assembly line method of construction of our complex widgets. Our main supplier of component parts will be DEF Manufacturing of Fort Lee, NJ. In the event that they are not able to ship according to our specifications our secondary supplier will be MNO Amalgamated located in Charlotte, NC. These parts will be shipped to us by motor freight. The actual machinery used in the production line will be manufactured by A&M Machine Tools of Arlington, Texas. They also will be doing maintenance under a service contract. This design of machine and assembly will allows us to produce 24 hours a day as the entire assembly process is fully automated with state-of- the-art robotics of American manufacture. With robotics our labor costs and therefore our production costs will be the lowest in the industry. To maintain our advantage we have established lines of communication with all of our potential machinery suppliers. Most importantly we have an ongoing relationship with several universities and are actively participating in various studies and experiments relating to production methods. These machines also incorporate quality checking by lasers. All products must come within XX% of specifications. Also, at regular intervals we will be using human inspection of products and machines. We do not anticipate generating any toxic materials at this time for these products. However, we will be closely monitoring all production to determine if any hazardous materials are being generated. We have contracted with an environmental engineering company to advise us on any possible problems as well as solutions including legal disposal of all hazardous wastes. We anticipate the following outlays for this capital equipment: A&M Machines $XXX Service Contract $XXX Research & Development SAMPLE: We have already spent a considerable amount of time in researching and developing our complex widgets. We have a very simple laboratory equipped with the basic research equipment we need. We have thus far been able to discover lighter materials and several cost cutting manufacturing methods. The largest achievement to date is the discovery of a water based lubricant that does not disintegrate in rainstorms. We have called this lubricant “H2Ocus-Pocus”. Presently our research is being supervised by our Technical Director, John Q. Public. He will continue in this capacity. Having been the researcher involved with all our activities to this point, he is well qualified to continue our research efforts. Our next research project will center around using this new lubricant in our manufacturing processes and testing of a new material that has come to our attention. To this point, our research has paid for itself as we have been keying on bringing this new product to market. However, now that we are becoming more experimental in our research efforts such a continued success ratio can not be maintained. We have been investigating several potential government (both state and federal) funding sources. Our present program of joint research with the local university has b=proven very beneficial. Historical Financial Data See “Attachments” [This discussion should include all facts pertaining to your financial statements.] SAMPLE: Income Statement [Discuss both positive and negative aspects of your income statements. This is no time for trying to hide the facts.] Balance Sheet [Discuss both positive and negative aspects of your balance sheets. This is no time for trying to hide the facts.] Asset Worksheet [Discuss both positive and negative aspects of your assets. This is no time for trying to hide the facts.] Ratio Analysis Financial ratios are included for your convenience. Financial Standards We have also included financial standards as compiled by Dun & Bradstreet and Robert Morris Associates. Proforma Financial Data See “Attachments” Proforma Cash Flow Analysis SAMPLE: Assumptions: Cash Receipts: Percentages as indicated. Rent: Building rental at $12/square foot. Utilities: Water, gas, sewer, trash, electric Telephone: Local, long distance and cellular Salaries: Executives. Payroll: Hourly, non executive Withholding: Figured at XX %. Inventory: Freight-In: Office Supplies: Postage: Advertising: Trade, magazine, direct mail, etc. Professionals: Commissions: Figured at 10%. Insurance: Travel & Entertainment: Research: [Explanation] Miscellaneous: State Taxes: XX% Federal Taxes: XX% Terms to customers: 2/10, n/30 (only to qualified accounts). Terms from suppliers: Suppliers offers 3% cash discount.
Sales Forecast SAMPLE: Sales have been forecast at the following growth rates: Year 2 Year 3 Product 1: XX% XX% Product 2: XX% XX%
Cash Flow Variables: SAMPLE: |
