Business Plan For All Leathers & More

Contents
Executive Summary.................................................................................................................................2
Objectives............................................................................................................................................4
Mission................................................................................................................................................4
Keys to Success...................................................................................................................................4
Company Summary.................................................................................................................................5
Company Ownership...........................................................................................................................6
Start-up Summary................................................................................................................................6
Products...................................................................................................................................................7
Market Analysis Summary......................................................................................................................8
Market Segmentation...........................................................................................................................9
Target Market Segment Strategy.......................................................................................................10
Industry Analysis...............................................................................................................................11
Competition and Buying Patterns......................................................................................................12
Strategy and Implementation Summary.................................................................................................12
Competitive Edge..............................................................................................................................13
Marketing Strategy............................................................................................................................13
Sales Strategy....................................................................................................................................13
Sales Forecast....................................................................................................................................14
Web Plan Summary...............................................................................................................................15
Website Marketing Strategy..............................................................................................................16
Development Requirements...............................................................................................................16
Management Summary..........................................................................................................................16
Personnel Plan...................................................................................................................................17
Financial Plan........................................................................................................................................17
Break-even Analysis..........................................................................................................................17
Projected Profit and Loss...................................................................................................................18
Start-up Funding................................................................................................................................19
Projected Cash Flow..........................................................................................................................20
Important Assumptions......................................................................................................................22
Projected Balance Sheet....................................................................................................................22
 Business Plan For All Leathers & More
Business Ratios..................................................................................................................................24
 Business Plan For All Leathers & More
Executive Summary
All Leather & More will carry only top of the line quality in men and men and men and women’s
shoes and accessories. Our selection will range from the basics of comfortable flats and
sandals to the trendy style of stiletto shoes and boots, belts, wallets and perfumes. We will be
purchasing through sales representatives and manufacturers in a variety of sizes, colors and style
to fit our customer base. The greatest percentage of merchandise will be in shoes, followed
by accessories.

All Leather & More is organized as a sole proprietorship in the name of Mrs. Kwakye. All
Leather & More will be located at East Legon, temporarily, until it is vast enough to expand into
a store of its own, located in Dansoman and Dzorwolu.

The hours of operation will be Monday - Friday 10 a.m. - 6 p.m., Saturday 10 a.m. - 8 p.m.,
and closed on Sundays. Customers will be able to purchase directly from our website and VIP
Showcase Events. There will be extended special hours designated during Christmas holiday
shopping season.

All merchandise will be purchased according to the company's mission and customer focus of
shoes ranging from sizes 5-13 and accessories. Management will rely
on customer feedback, suggestions, and sales reports to introduce or eliminate certain brands,
styles and sizes.

The Concept

Recognizing that the market for quality shoes in extended sizes is quite competitive using the
larger shoe retailers, All Leather & More will minimize the competition by targeting specific
niches, generally focusing on other retail stores whose prices are too expensive, lack quality
and are not "shoe size efficient".   

All Leather & More has three keys to success. The first is establishing a high quality, high value
relationship with its vendors and customers. The second key is to ensure reliable and timely
delivery of their products. The last key to success is reliable administration of the organization.
 Business Plan For All Leathers & More
This boutique business plan is intended to provide the structure to make sure this last key to
success is realized.

All Leather & More is set up as a home-based business, with plans for expansion into a
store/boutique in the near future. This will be the most cost effective arrangement, yet provide
the requisite amount of service and support.

The Market

All Leather & More will grow at 3% and there are many potential customers now, patiently
awaiting the start of business. All Leather & More will differ from other retail shoe stores
because we will always be less expensive than the competition, but we will still maintain the
high quality of our shoes.

Also, we will offer a sales promotion on a monthly basis, such as:

 buy one, get one half price

 buy one, get one free
 half off on shoes from the previous season
 "All Leather & More" cedis (for every GH¢50 dollar purchase, the consumer receives an
additional 20% off of their next purchase)

In the future, All Leather & More will design its own, custom-made shoes for men and women
and men.

The Sales Strategy

Our marketing strategy will not exceed 5% of our annual gross sales. We will use a wide range
of approaches, including our website with free shipping, postcards, business cards, and word of
mouth.

Objectives
The objectives of All Leather & More are:
 Business Plan For All Leathers & More
1. To market trendy, handbags, belts, men shoes, perfumes, elegant shoes, ranging from
sizes 5-13, that will cater to the needs of the everyday man and woman.
2. To receive a 50% profit margin within the first year.
3. To provide customer service, measured through new and repeat business (our goal is that
50% of our customers will return within 6 months for an additional purchase) and
multiple sales (our goal is that 30% of our non-running and 60% of our running shoe
sales are accompanied by an additional purchase).
4. To achieve a net profit of GH¢5,000 by year two and GH¢15,000 by year five.

Mission
The All Leather & More mission is to offer quality, name brand shoes and accessories in an
assortment of sizes and styles to accommodate the chic in every man and woman.

Keys to Success
In order to succeed in the men and men and women’s shoe industry All Leather & More must:

 Carry an assortment of shoes sizes and style to fit the personalities of any man and
woman.
 Provide customers with top-notch personalized customer service in an atmosphere of
southern hospitality.
 Advertise and promote in all areas so that our customer base will learn more about All
Leather & More
 Continuously review our inventory and sales and adjust our inventory levels accordingly.
 Most importantly, always stay on top of the latest trends in the style of men and men and
women’s shoes.

Company Summary
All Leather & More is organized as a sole proprietorship in the name of Mrs. Kwakye. All
Leather & More will be located at East Legon, temporarily, until we have the volume to expand
into a separate store, to be located in Dansoman and Dzorwulo. The site is the owner's house,
 Business Plan For All Leathers & More
along a busy pedestrian area in the trendy shopping section of downtown, and is zoned for
commercial/residential use. A prominent street-level entrance leads into a foyer and 2 parlors
which are already renovated to accommodate the business. Built-in shelving with under-shelf
lighting will highlight the shoes, while antique display tables will hold special and sale items,
and accessories. The house is equipped with security monitors, and the second parlor is fully
wired for phone and internet access. We will use a point-of-sale system to handle in-house sales.
Website sales will be processed by an online credit card processor affiliated with our website
hosting company.

The hours of operation will be Monday - Friday 10 a.m. - 6 p.m., Saturday 10 a.m. - 8 p.m.,
and closed on Sundays. Customers will be able to purchase directly from our website and VIP
Showcase Events. There will be extended special hours designated during Christmas holiday
shopping season.

All merchandise will be purchased according to the company's mission and customer focus of
shoes ranging from sizes 5-13 and accessories.

Company Ownership
All Leather & More is organized as a sole proprietorship where I, Mrs. Kwakye, am responsible
for the daily management, sales, and development of the company.

Start-up Summary
All Leather & More start-up costs are listed below. The company will start with two months of
inventory on hand for shoes and accessories, as this is the main revenue generator. The majority
of the company's assets will reside in inventory. The opening day's cash on hand balance will be
GH¢10,000.

Successful operation and building a loyal customer base will allow All Leather & More to be
self-sufficient and profitable in year two.

Start-up Requirements
Start-up Expenses
Legal GH¢500
Stationery, business cards etc. GH¢500
 Business Plan For All Leathers & More
Credit Card Set-up GH¢200
UPS Account GH¢300
Supplies (special made shoe boxes, invoices, etc.) GH¢500
Website Start-up GH¢3,000
Total Start-up Expenses GH¢5,000
Start-up Assets
Cash Required GH¢10,000
Start-up Inventory GH¢15,000
Other Current Assets GH¢5,000
Long-term Assets GH¢0
Total Assets GH¢30,000
Total Requirements GH¢35,000

Products
All Leather & More will carry only top of the line quality in men and men and women’s shoes
and accessories. Our selection will range from the basics of comfortable flats and sandals to
the trendy style of stiletto shoes and boots, handbags, belts, bags and perfumes. We will be
purchasing through sales representatives and manufacturers in a variety of sizes, colors and style
to fit our customer base. The greatest percentage of merchandise will be in shoes, followed
by accessories.

Management will rely on customer feedback, suggestions, and sales reports to introduce or

eliminate certain brands, styles and sizes.

Mission:

“To become the premier supplier organization in the leather and fragrance industry, gaining
market competitiveness and diversifying into value added leather with clean, well maintained
and friendly environment”.

Objectives:

 Our aim is to maximize business without compromising on quality.

 We are committed to meet the changing demands of an evolving organization.
 Business Plan For All Leathers & More
 We aspire to improve quality norms and enhance our product range.

Product Information:

Two types of leather products are offered;

1. Leather bags (men)

2. Wallets
3. Belts
4. Perfumes for men and men and women
5. Leather shoes
6. Ladies handbags
7. Leather shoes for men and women

These are available in 3 different sizes in jackets;

Small
Medium
Large

Price range for products

 Prices of men bags ranges from GH¢150
 Prices of men and women handbags ranges from GH¢250
 Prices of men wallets ranges from GH¢100
 Prices of men perfumes ranges from GH¢150
 Prices of men and women perfumes ranges from GH¢120
 Prices of belts ranges from GH¢100

Market Analysis Summary

The primary target customers of All Leather & More are men and women with a taste for high-
quality shoes, ranging from size 5-13. The types of shoes offered are casual and dress:
 Business Plan For All Leathers & More
1. Heeled Shoes
2. Sandals
3. Boots
4. Flats
5. Belts
6. Handbags
7. Wallets
8. Men shoes

The most important thing I wanted to focus on is marketing "plus-size shoes."  I have many
friends and family who are so limited and are really missing out on the fun in shoe fashion
because they have a hard time shopping for shoes in sizes 10 and up. This is the main reason I
will be one of the few shoe retailers who carries shoes from sizes 5-13. I want every man and
woman to own and enjoy a nice pair of fashionable shoes!

Market Segmentation
The numbers in the Market Analysis table represent numbers of men and women in each target
market segment residing within 10 miles of the store location. The numbers for each category are
based on the existing customer base of local shoe and accessory stores.

I also anticipate a number of web customers, but those numbers are harder to estimate. They
have been left out of the market analysis table, but I expect 2% of all sales in the first year to
come from the website.

Here is a breakdown for my Market Analysis table:

 The Working Man and woman: is generally going to spend GH¢120-GH¢150. They're
looking for comfort and quality for the everyday 9-5.
 The Retro Man and woman: will spend GH¢135-GH¢175. Keep in mind, this is a man
and woman who loves classic and the word "limited edition."
 The Man and woman on the Edge: loves trendy, chic and whatever is in for the season.
She will purchase a pair of gold shoes--sale or not!
 Business Plan For All Leathers & More
 The Red Carpet Man and woman: must have a shoe that is fresh off the runway and
she has to be the first man and woman to ever wear a pair of Manolo Blahniks. She will
pay GH¢400 and the sky's the limit for a pair of shoes. 

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
The Working Man 3% 25,000 25,750 26,523 27,319 28,139 3.00%
and woman
The Retro Man and 2% 2,000 2,040 2,081 2,123 2,165 2.00%
woman
The Man and woman 1% 1,500 1,508 1,516 1,524 1,532 0.53%
on the Edge
The Red Carpet Man 1% 200 201 202 203 20 -
and woman 43.77%
Total 2.64% 28,700 29,499 30,322 31,169 31,856 2.64%
 Business Plan For All Leathers & More

Target Market Segment Strategy

Our trendy location and upscale interior will make shopping at All Leathers & More an
indulgence for every man and woman. However, our marketing efforts will attract
different market segments with targeted ad campaigns and sales.

Working men and women: The majority of our shoes will be priced below the standard for their
quality and this shopping district. I am planning on lower margins for the first three years in
order to establish a broad customer base, and lure "working men and women" who come through
this area to see a pair of shoes from All Leather & More as an affordable luxury. Our initial
marketing thus includes print ads in the local paper's weekend shopping section, as well as flyers
put up around the downtown financial section nearby. This is our largest customer base, and will
be important for maintaining healthy month-to-month sales. Our challenge with this group is to
convince them that they can find affordable, comfortable, and stylish shoes downtown; they don't
have to go to the mall.

Retro and Trendy men and women: This group includes college students and young
professionals, as well as professional men and women in more creative fields. Our marketing
efforts to these segments will include flyers on the local campuses and print ads highlighting our
unique product offerings, with an emphasis on "the latest" looks. We will attempt to get free
coverage of our grand opening in the fashion section of the local paper, and will encourage local
fashion magazines and the newspaper to use us as a "fashion expert' resource on footwear issues.
The patronage of this group will give us an air of youthful and creative energy, while
maintaining sophistication.

Red Carpet men and women: These men and women know each other, go to the same events,
and wouldn't be caught dead in the same shoes. Our targeted ads in the opera and symphony
booklets, as well as donations to local fundraiser auctions, will establish us among this group as
an upscale and exclusive boutique. We will offer special-ordering and maintain a very low
inventory of the highest-level shoes, in order to keep these customers' purchases exclusive.
Although sales in this group will be low and occasional, they will give us the air of sophistication
we are seeking. To say, "I got them at All Leather & More" should be a claim to good taste and
 Business Plan For All Leathers & More
high class. Our challenge with this group is to maintain the air of exclusivity while offering a
wide-enough range to appeal to their different tastes.

Industry Analysis
In the Men and men and women’s Shoe industry, most companies are manufacturing their own
shoes and they have their own retail stores to market to the consumers. A lot of the distribution is
through promotional ads, word of mouth, the internet and other promotional means. Small, high-
end retailers like All Leather & More usually focus on two or three brands, and use targeted ads
and word-of-mouth to gain new customers. 

Competition and Buying Patterns

Competition for our first three market segments is usually driven by who is offering the best
quality, most interesting shoes for less. The key to success is the quality of the shoe: how it was
made and with what materials. In the fourth and smallest market (red carpet men and women), as
well as among the trendy men and women, the shoe's designer and uniqueness, and the store's
warmth, sophistication, and customer service are usually more important than price.

The buying factors include what is "in" for each season, and the relation of comfort to style each
man and woman is aiming for. A few of the main competitors are:

Bata: They have a great selection of men and men and women’s shoes and they have all of the
latest styles, but their shoes are a bit over-priced. Also, they are limited in the sizes of shoes they
sell. For example, I wear a 9 1/2 but I always purchase a size 10 or an 11 (11's only if I'm
purchasing stillettos). A usually does not carry 11's, only in a few styles. Also, their shoes are
extremely narrow and are not made for all types of men and men and women’s feet. However, a
big plus for this store is when you are at the register, ready to pay, they provide a
shoe protectant for no charge and the protectant really does work. 

Excellency Butik:  They have very decent prices for their shoes but not all of their shoes are of
good quality. Some of their shoes are made at a second-rate and you can tell just by looking at
the details of the shoe.  Excellency Butik is also another store that is limited in their shoe sizes.
 Business Plan For All Leathers & More
Strategy and Implementation Summary
All Leather & More will use a strategy of providing a service to all men and women consumers
with regular shoes and "plus size" shoes. We will offer a product that most men and women
consumers will require. We will create an atmosphere that is appealing to the truly fashion
forward consumer.

Strategic Assumptions:

1. Every male and female resident in Accra, is a potential customer.

2. Promoting on the Web, by word of mouth and promotional postcards will give All
Leather & More the opportunity to draw customers from outside Houston, TX.
3. All Leather & More will aggressively pursue all contacts through networking.

Competitive Edge
All Leather & More will differ from other retail shoe stores because we will always be less
expensive than the competition, but we will still maintain the high quality of our shoes.

Also, we will offer a sales promotion on a monthly basis, such as:

 buy one, get one half price

 buy one, get one free
 half off on shoes from the previous season
 "All Leathers & More " cedis (for every GH¢150 dollar purchase, the consumer receives
an additional 20% off of their next purchase)

Marketing Strategy
Our marketing strategy will not exceed 5% of our annual gross sales. Marketing will be via:

 All Leathers & More website (to be launched in the first year of business)- free shipping
if ordered by 2pm central.
 Advertisement postcards
 Business Cards
 Word of mouth
 Business Plan For All Leathers & More
Sales Strategy
Our key to sales strategy at All Leather & More will be a great buying experience, every time.
Once a customer comes in the door, they will be greeted and assisted as much or as little as they
wish. Some customers are uncomfortable with lots of personal attention; others expect it. Chloe's
experience as a retailer has taught her how to read the subtle signs that tell her what a customer is
seeking when they enter. All customers will be offered tea or coffee while they shop, and we will
have comfortable chairs for friends to sit in while waiting.

Our sales goal is to generate repeat business and strong word-of-mouth advertising based on
this great buying experience. Word of mouth in new men and men and women’s apparel and
accessory stores tends to spread to family, friends, co-workers, church members and people we
depend on to provide us a service (hair stylist, nail salon,doctors, etc.), in and out of state. 

We also plan to have software to collect customer information such as:

 Names, addresses, email addresses and phone numbers

 What type of shoes the customers prefer

All Leather & More will also accept returns/exchanges of unworn shoes with receipt within 30
days of their purchase to build a trust with all of our customers.

Sales Forecast
I expect a growth rate of 3% annually on shoe sales. I am projecting my sales to be at this level
due to the low wholesale prices and the demand for men and men and women’s shoes. If you
notice in my forecast table for the Christmas holidays and summer time, sales will increase.
College kids will be out of school from May to August. Research shows that most consumers
tend to spend the most money during the holidays for Christmas gifts and they can't miss out on
all of the great holiday sales.

In January, sales will most likely decrease because the average consumer has spent a lot of
money for the holidays. January is the month to play "catch-up" on paying their credit card bills
and restoring their bank accounts back to normal.
 Business Plan For All Leathers & More
Direct costs for shoe and accessory sales are set at 70% for the first three years. This is much
higher than normal for the industry, because of our pricing and specials - we can undersell the
competition not through volume, but through the value-added of an exclusive location, personal
service, and the owner's independent income, which does not require a paid salary.

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Shoes GH GH GH¢112,922 GH GH¢119,799
¢106,440 ¢109,633 ¢116,309
Accessories GH¢1,419 GH¢1,461 GH¢1,505 GH¢1,550 GH¢1,597
Total Sales GH GH GH¢114,427 GH GH¢121,396
¢107,859 ¢111,094 ¢117,859
Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5
Shoes GH¢63,864 GH¢65,780 GH¢67,753 GH¢63,970 GH¢59,900
Accessories GH¢852 GH¢877 GH¢903 GH¢899 GH¢926
Boxes and bags GH¢1,079 GH¢1,111 GH¢1,144 GH¢1,179 GH¢1,214
Shipping costs for GH¢2,157 GH¢2,222 GH¢2,289 GH¢2,357 GH¢2,428
website sales
Subtotal Direct Cost GH¢67,951 GH¢69,989 GH¢72,089 GH¢68,405 GH¢64,468
of Sales

Web Plan Summary

The website for All Leather & More will serve as a channel for business.  The consumer will be
able to:

 View and purchase their shoes and accessories online (VISA, MC, AMEX, DISCOVER)
 Purchase gift cards
 Take a virtual tour of the store
 Read shoe FAQs
 See our Return/Privacy Policy
 Contact Us
 Sign up for All Leather & More news and updates
 Business Plan For All Leathers & More
 Complete surveys for customer satisfaction

Website Marketing Strategy

All of our customers will be encouraged to use our website, in state and out of state, for faster
service. Shoes and accessories will be sent out via USPS, Fed-Ex, or UPS, depending upon how
fast the customer prefers to receive the purchase. The website will include a special "buying
shoes online" section, where customers can print out the footprint of each model at actual size, to
see how it compares to their foot shape. Each brand that we offer generally conforms to a
particular foot shape, regardless of size; tips on picking your best brand for your foot shape will
help online customers get a good fit without every leaving home.

Development Requirements
I plan to use a contracted service to design my website.  Projected costs are estimated at GH
¢3,000. I plan to have the website officially up and running by year 2 of business.

I have estimated the ongoing costs:

 Website name registration for Site Hosting:  GH¢60 per year

 Search Engine Registration: GH¢30 or less per month
 Site Design Changes:  Changes in the site, such as photography costs (estimated at GH
¢150-GH¢200 per shot), are considered to be part of Marketing and Advertising.

Management Summary
When the company begins the start-up phase, I want to hire an assistant to basically be my right
hand and one other person for coverage.  The hire process will be well-thought-out and will take
serious consideration to make sure that the employees will be trustworthy, have great
attitudes and can provide excellent customer service. I will continue to be in charge of
Operations.

I also would like to reach out to college students looking for part-time jobs or just a summer job
to earn some extra money for school. I am also willing to hire to the "right" person with no
 Business Plan For All Leathers & More
experience, because I feel that everyone has to start somewhere. I remember someone who gave
me a chance when I had no experience and now I feel it's my turn.

Personnel Plan
There will be two part-time employees working 20-30 hours per week. They will be paid at a rate
of GH¢9.00 per hour. All employees will benefit from a one day paid holiday on their respective
birthdays and one week of paid vacation after twelve months of employment. Bonuses will be
given annually in the month of December.

At this time medical/dental benefits will not be offered to employees. As profits increase in the
future medical/dental benefits will be offered to all employees.

Year 1 Year 2 Year 3 Year 4 Year 5

Operations Assistant GH GH GH GH GH
(part-time) ¢12,150 ¢12,200 ¢12,300 ¢12,300 ¢12,300
Sales Associate (Part- GH¢9,360 GH¢9,400 GH¢9,400 GH¢9,400 GH¢9,400
Time)
Total People 2 2 2 2 2
Total Payroll GH GH GH GH GH
¢21,510 ¢21,600 ¢21,700 ¢21,700 ¢21,700

Financial Plan
Sales growth will be aggressive the first 18 months as we sharpen our merchandise assortment,
size scales, and stock levels to better meet our customers' requirements.

However, it is expected that All Leather & More will become profitable in the first year, but not
excessively so. This is partly due to our lower overall sales price for merchandise, compared to
our competitors, but also due to the fact that all our sales must come from customers lured away
from other retailers. Once we have a solid customer base, we can increase our margins slightly
without risk of losing customers.
 Business Plan For All Leathers & More
Break-even Analysis
Our break-even analysis is summarized by the following chart and table. In order to break even,
we must sell at least GH¢7,312 of shoes and accessories per month. We should easily sell more
than this even in our first month.

Break-even Analysis
Monthly Revenue Break-even GH¢6,585
Assumptions:
Average Percent Variable Cost 63%
Estimated Monthly Fixed Cost GH¢2,436

Projected Profit and Loss

The following table and charts show our profitability for the next three years, and detail our
operating expenses. These include a portion of the mortgage for my house, for the spaces which
will be dedicated solely to business operations.

Pro Forma Profit and Loss

Year 1 Year 2 Year 3 Year 4 Year 5
Sales GH GH GH GH GH
¢107,859 ¢111,094 ¢114,427 ¢117,859 ¢121,396
Direct Cost of Sales GH¢67,951 GH¢69,989 GH¢72,089 GH¢68,405 GH¢64,468
Other Costs of Sales GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Total Cost of Sales GH¢67,951 GH¢69,989 GH¢72,089 GH¢68,405 GH¢64,468
Gross Margin GH¢39,908 GH¢41,105 GH¢42,338 GH¢49,454 GH¢56,928
Gross Margin % 37.00% 37.00% 37.00% 41.96% 46.89%
Expenses
Payroll GH¢21,510 GH¢21,600 GH¢21,700 GH¢21,700 GH¢21,700
Marketing/Promotio GH¢2,375 GH¢1,500 GH¢2,000 GH¢2,500 GH¢2,750
n
Depreciation GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Mortgage %/Rent GH¢1,800 GH¢1,800 GH¢1,800 GH¢1,800 GH¢1,800
Utilities GH¢960 GH¢1,000 GH¢1,100 GH¢1,200 GH¢1,300
Insurance GH¢1,800 GH¢1,850 GH¢2,000 GH¢2,200 GH¢2,250
Website maintenance GH¢372 GH¢375 GH¢375 GH¢375 GH¢375
POS contract/fees GH¢420 GH¢450 GH¢450 GH¢450 GH¢450
Payroll taxes GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Total Operating GH¢29,237 GH¢28,575 GH¢29,425 GH¢30,225 GH¢30,625
Expenses
Profit Before Interest GH¢10,671 GH¢12,530 GH¢12,913 GH¢19,229 GH¢26,303
 Business Plan For All Leathers & More
and Taxes
EBITDA GH¢10,671 GH¢12,530 GH¢12,913 GH¢19,229 GH¢26,303
Interest Expense GH¢2,274 GH¢1,875 GH¢1,459 GH¢1,042 GH¢626
Taxes Incurred GH¢2,519 GH¢3,196 GH¢3,436 GH¢5,456 GH¢7,703
Net Profit GH¢5,878 GH¢7,458 GH¢8,018 GH¢12,731 GH¢17,974
Net Profit/Sales 5.45% 6.71% 7.01% 10.80% 14.81%

Start-up Funding
I will be investing GH¢10,000 in the business, and am seeking another GH¢25,000 in SBA long-
term loans, to be repaid over six years.

Start-up Funding
Start-up Expenses to Fund GH¢5,000
Start-up Assets to Fund GH¢30,000
Total Funding Required GH¢35,000
Assets
Non-cash Assets from Start-up GH¢20,000
Cash Requirements from Start-up GH¢10,000
Additional Cash Raised GH¢0
Cash Balance on Starting Date GH¢10,000
Total Assets GH¢30,000
Liabilities and Capital
Liabilities
Current Borrowing GH¢0
Long-term Liabilities GH¢25,000
Accounts Payable (Outstanding Bills) GH¢0
Other Current Liabilities (interest- GH¢0
free)
Total Liabilities GH¢25,000
Capital
Planned Investment
Owner GH¢10,000
Investor GH¢0
Additional Investment Requirement GH¢0
Total Planned Investment GH¢10,000
Loss at Start-up (Start-up Expenses) (GH¢5,000)
Total Capital GH¢5,000
Total Capital and Liabilities GH¢30,000
Total Funding GH¢35,000
 Business Plan For All Leathers & More

Projected Cash Flow

Our projected cash flow is outlined in the following chart and table. The table lists sales tax
collected and paid out, as well as repayment of the loan we are seeking.

Pro Forma Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Cash from
Operations
Cash Sales GH GH GH¢114,427 GH GH¢121,396
¢107,859 ¢111,094 ¢117,859
Subtotal Cash from GH GH GH¢114,427 GH GH¢121,396
Operations ¢107,859 ¢111,094 ¢117,859
Additional Cash
Received
Sales Tax, VAT, GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Received
New Current GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Borrowing
New Other GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Liabilities (interest-
free)
New Long-term GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Liabilities
Sales of Other GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Current Assets
Sales of Long-term GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Assets
New Investment GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Received
Subtotal Cash GH GH GH¢114,427 GH GH¢121,396
Received ¢107,859 ¢111,094 ¢117,859
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from
 Business Plan For All Leathers & More
Operations
Cash Spending GH¢21,510 GH¢21,600 GH¢21,700 GH¢21,700 GH¢21,700
Bill Payments GH¢70,868 GH¢82,102 GH¢84,729 GH¢82,123 GH¢81,093
Subtotal Spent on GH¢92,378 GH GH¢106,429 GH GH¢102,793
Operations ¢103,702 ¢103,823
Additional Cash
Spent
Sales Tax, VAT, GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
HST/GST Paid Out
Principal Repayment GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
of Current
Borrowing
Other Liabilities GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Principal Repayment
Long-term GH¢4,164 GH¢4,165 GH¢4,165 GH¢4,165 GH¢4,165
Liabilities Principal
Repayment
Purchase Other GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Current Assets
Purchase Long-term GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Assets
Dividends GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Subtotal Cash Spent GH¢96,542 GH GH¢110,594 GH GH¢106,958
¢107,867 ¢107,988
Net Cash Flow GH¢11,317 GH¢3,227 GH¢3,833 GH¢9,871 GH¢14,438
Cash Balance GH¢21,317 GH¢24,544 GH¢28,377 GH¢38,248 GH¢52,686

Important Assumptions
I assume that the economic conditions will improve in the next two to three years. Therefore,
business will be good in year one, but years two and years three.  All Leather & More will be
very successful.

General Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Plan Month 1 2 3 4 5
 Business Plan For All Leathers & More
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0

Projected Balance Sheet

The table below outlines the projected balance sheet. While, as a retail store, we have no plans
for long-term assets, we will have a healthy cash balance, growing over the next five years. We
plan to pay off our loan within six years, and increase the net worth of the business from GH
¢5,000 at start-up to over GH¢15,000 by the end of five years.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash GH¢21,317 GH¢24,544 GH¢28,377 GH GH¢52,686
¢38,248
Inventory GH¢13,255 GH¢12,111 GH¢12,475 GH GH¢10,208
¢10,905
Other Current Assets GH¢5,000 GH¢5,000 GH¢5,000 GH¢5,000 GH¢5,000
Total Current Assets GH¢39,573 GH¢41,655 GH¢45,852 GH GH¢67,894
¢54,154
Long-term Assets
Long-term Assets GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Accumulated Depreciation GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Total Long-term Assets GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Total Assets GH¢39,573 GH¢41,655 GH¢45,852 GH GH¢67,894
¢54,154
Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5
Current Liabilities
Accounts Payable GH¢7,859 GH¢6,649 GH¢6,992 GH¢6,728 GH¢6,660
Current Borrowing GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Other Current Liabilities GH¢0 GH¢0 GH¢0 GH¢0 GH¢0
Subtotal Current GH¢7,859 GH¢6,649 GH¢6,992 GH¢6,728 GH¢6,660
Liabilities
Long-term Liabilities GH¢20,836 GH¢16,671 GH¢12,506 GH¢8,341 GH¢4,176
Total Liabilities GH¢28,695 GH¢23,320 GH¢19,498 GH GH¢10,836
¢15,069
Paid-in Capital GH¢10,000 GH¢10,000 GH¢10,000 GH GH¢10,000
 Business Plan For All Leathers & More
¢10,000
Retained Earnings (GH GH¢878 GH¢8,336 GH GH¢29,084
¢5,000) ¢16,354
Earnings GH¢5,878 GH¢7,458 GH¢8,018 GH GH¢17,974
¢12,731
Total Capital GH¢10,878 GH¢18,336 GH¢26,354 GH GH¢57,059
¢39,084
Total Liabilities and GH¢39,573 GH¢41,655 GH¢45,852 GH GH¢67,894
Capital ¢54,154
Net Worth GH¢10,878 GH¢18,336 GH¢26,354 GH GH¢57,059
¢39,084

Business Ratios
All Leather & More's ratios can be seen in the table below. For comparison, we have included
standard business ratios for the Miscellaneous retails stores industry.

Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Industry
Profile
Sales Growth n.a. 3.00% 3.00% 3.00% 3.00% 2.79%
Percent of Total
Assets
Inventory 33.50% 29.08% 27.21% 20.14% 15.03% 33.69%
Other Current 12.64% 12.00% 10.90% 9.23% 7.36% 24.88%
Assets
Total Current 100.00% 100.00% 100.00% 100.00% 100.00% 75.34%
Assets
Long-term 0.00% 0.00% 0.00% 0.00% 0.00% 24.66%
Assets
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current 19.86% 15.96% 15.25% 12.42% 9.81% 37.95%
Liabilities
Long-term 52.65% 40.02% 27.27% 15.40% 6.15% 16.70%
Liabilities
Total Liabilities 72.51% 55.98% 42.52% 27.83% 15.96% 54.65%
Net Worth 27.49% 44.02% 57.48% 72.17% 84.04% 45.35%
Percent of Sales
 Business Plan For All Leathers & More
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 37.00% 37.00% 37.00% 41.96% 46.89% 31.49%
Selling, General 31.55% 30.29% 29.99% 31.16% 32.09% 18.95%
&
Administrative
Expenses
Advertising 0.00% 0.00% 0.00% 0.00% 0.00% 1.80%
Expenses
Profit Before 9.89% 11.28% 11.28% 16.32% 21.67% 1.05%
Interest and
Taxes
Main Ratios
Current 5.04 6.27 6.56 8.05 10.20 1.77
Quick 3.35 4.44 4.77 6.43 8.66 0.70
Total Debt to 72.51% 55.98% 42.52% 27.83% 15.96% 61.43%
Total Assets
Pre-tax Return 77.19% 58.11% 43.46% 46.53% 45.00% 2.23%
on Net Worth
Pre-tax Return 21.22% 25.58% 24.98% 33.58% 37.82% 5.78%
on Assets
Additional Year 1 Year 2 Year 3 Year 4 Year 5
Ratios
Net Profit 5.45% 6.71% 7.01% 10.80% 14.81% n.a
Margin
Return on 54.03% 40.68% 30.42% 32.57% 31.50% n.a
Equity
Activity Ratios
Inventory 5.95 5.52 5.86 5.85 6.11 n.a
Turnover
Accounts 10.02 12.17 12.17 12.17 12.17 n.a
Payable
Turnover
Payment Days 27 33 29 31 30 n.a
Total Asset 2.73 2.67 2.50 2.18 1.79 n.a
Turnover
Debt Ratios
Debt to Net 2.64 1.27 0.74 0.39 0.19 n.a
 Business Plan For All Leathers & More
Worth
Current Liab. to 0.27 0.29 0.36 0.45 0.61 n.a
Liab.
Liquidity Ratios
Net Working GH GH¢35,007 GH¢38,860 GH GH¢61,235 n.a
Capital ¢31,714 ¢47,425
Interest 4.69 6.68 8.85 18.45 42.03 n.a
Coverage
Additional
Ratios
Assets to Sales 0.37 0.37 0.40 0.46 0.56 n.a
Current 20% 16% 15% 12% 10% n.a
Debt/Total
Assets
Acid Test 3.35 4.44 4.77 6.43 8.66 n.a
Sales/Net 9.92 6.06 4.34 3.02 2.13 n.a
Worth
Dividend 0.00 0.00 0.00 0.00 0.00 n.a
Payout