Sample Company Inc. Business Plan for E-2 Visa Contact: Applicant Email: info@sample.com Mob: XXX-XXX-XXXX
2 Sample Company | BUSINESS PLAN Sample Company Inc Table of Contents EXECUTIVE SUMMARY............................................................................................4 Business description ...............................................................................................5 THE US COMPANY DETAILS.....................................................................................6 Company Ownership ..............................................................................................6 Company Location ..................................................................................................7 Management Summary ..........................................................................................7 INDUSTRY ANALYSIS ...............................................................................................8 Events industry market...........................................................................................8 Google Trends ......................................................................................................14 Summary ..............................................................................................................15 INVESTMENT & FINANCIAL DETAILS .....................................................................15 Applicant Investment Details ................................................................................16 Financial Highlights ............................................................................................... 16 OPERATING PLAN .................................................................................................18 The Company strategy to get clients ....................................................................19 Pricing and revenue ..............................................................................................21 Stuffing Needs ......................................................................................................21 Operation costs ....................................................................................................22 FINANCIALS ..........................................................................................................23 CONCLUSION ........................................................................................................26 APPENDIX: YEAR 1 FINANCIALS BY MONTH ..........................................................27
3 Sample Company | BUSINESS PLAN Sample Company Inc LIST OF TABLES Table 2 Major highlights.......................................................................................................... 18 Table 3 Personnel projections................................................................................................. 22 Table 4. Monthly wages by year ............................................................................................. 22 Table 5 Monthly general costs ................................................................................................ 22 Table 6 Personnel forecast...................................................................................................... 23 Table 7 Profit and Loss statement .......................................................................................... 23 Table 8 Cash Flow statement .................................................................................................. 25 Table 9 Profit and Loss Statement .......................................................................................... 27 Table 10 Cash Flow.................................................................................................................. 28 Table 11 Balance Sheet ........................................................................................................... 30 LIST OF FIGURES Figure 1 ...................................................................................................................................... 4 Figure 2 Stuffed balloon with a gift........................................................................................... 5 Figure 3 Industry event revenue in the USA ............................................................................. 8 Figure 4 Market size of the party and event planner sector .................................................... 9 Figure 5 Number of businesses in the party and event planner sector .................................10 Figure 6 Nubmer of employees in the party and event planner sector .................................11 Figure 7 Christmas holidays survey ......................................................................................... 11 Figure 8 Average cost for a wedding in the USA.....................................................................12 Figure 9 Share of meeting, convention and event planning jobs in 2019 ..............................13 Figure 10 Industry revenue of "convention and trade shows organizers" .............................13 Figure 11 Google Trends Index ............................................................................................... 14 Figure 12 Financial Highlights ................................................................................................. 18 Figure 13 Revenue structure ................................................................................................... 21 Figure 14 Break – Even Analysis .............................................................................................. 24
4 Sample Company | BUSINESS PLAN Sample Company Inc Executive Summary Sample Company Inc. is a shop that supplies party planners with flowers, décor, and other events equipment and items (see Figure 1). The Company will be serving both business and private clients in Florida within a XXX-mile radius from XXX Beach Gardens. Given the level of vaccination in the United States, we can expect a recovery in demand for live events, and the industry will need efficient suppliers to manage them. The Company plans to become one of these suppliers. The Company’s shop will include floral centerpieces, balloon centerpieces, and party event decor rentals (signs, arches, ball pits, bouncing castles, etc.) - everything required for party decorations. Topline sales will grow from their current level in 20XX/XX to more than XXX thsd dollars in 20XX. This business plan provides detailed information and includes the immediate strategic business plan necessary for the initial establishment and operations of the Company. Figure 1
5 Sample Company | BUSINESS PLAN Sample Company Inc Business description The Company’s business will be based on selling elements for decoration of Events and providing more expensive equipment for rent. “The chip” in sales will be two products. The Company will focus on centerpieces with preserved roses - roses that last for years beautifully displayed. Another hit position is stuffed balloons with gifts inside (Fig. 2) - the perfect present and centerpieces for an event. The Company will supply event planners and other decor elements to meet all requirements of the event. The second line of work is to rent expensive large decorative equipment. These are signs, arches, ball pits, bouncing castles, etc. Buying these items is not beneficial for event planners, so that we will offer them for rent. Sample Company Inc. plans to equip a warehouse that will store goods and materials and prepare orders. Also, in the warehouse, there will be restored the appearance and working capacity of the equipment returned after the lease. The market for event supplying is relatively steady. Even in economic downturns, companies still have product launches and will still need to organize these events. Significant events in the life of private customers also occur with the same frequency, and they try to celebrate them triumphantly. Therefore, with the right way of doing business, the planned business will be a reliable source of profit, less exposed to risk than other types of business. Figure 2 Stuffed balloon with a gift
6 Sample Company | BUSINESS PLAN Sample Company Inc The US Company Details Sample Company Inc. is a supplying firm that will sell flowers and goods for décor and provide event equipment rental services for party planners. The Company registered in the state of Florida on May XXth, 20XX. Company Ownership SAMPLE COMPANY INC. is owned by Applicant (100%), Canadian national. Mrs. Applicant has realized that she wants to make a difference in children's lives being a university student. After completing her studies at George Brown College, she focused on working with children with multiple behavioral diagnoses. She gained expertise in dealing with multiple crises while maintaining calm and collected. She continued to work in that field for a few years until she decided to help children in another way. In 20XX, Voila Surprise, a stuffed balloon gift company, was created. Through this Company, she got the ability to interact with clients and be aware of their needs and wants. She had created over XXX balloons for clients all over the province to that day, made birthdays special, and brought a smile to children through a different form of therapy using balloons. The willingness to help people, making them happy, and an intense experience from the management of another business, have led to the creation of SAMPLE COMPANY INC.
7 Sample Company | BUSINESS PLAN Sample Company Inc Company Location The Company is registered at XXXX/XXX-XXX Management Summary As the Investor & CEO, Ms. Applicant will plan, direct, and coordinate the Company’s operational activity. She will hold a key role in developing the entity and business activity to achieve its growth targets. Specifically, Ms. Applicant will be responsible for the following: • Direct, plan and implement policies, objectives of the Company to ensure continuing operations, maximize returns on investments, and increase business productivity. • Direct and coordinate the Company operational activity • Establish, implement and revise policies and procedures • Plan and fulfill the client's relations strategy • Analyze operations to evaluate company performance, potential cost reduction, policy change • Review and analyze administrative and financial reports • Directing and coordinating pricing/sales/provision of services • Monitor revenue and profits • Market the Company’s business • Direct and coordinate financial and marketing activities, increase the efficiency of the Company • Create intricate balloon centerpieces for many occasions • In charge of the social media aspect of the business and continue to post pictures of the work that is created Ms. Applicant will also be responsible for forging lasting relationships with clients, networking, and overall growth initiatives. Her professional experience will play a vital role in the successful development of the Company.
8 Sample Company | BUSINESS PLAN Sample Company Inc Industry Analysis Events industry market Party events are an essential part of people's lives: they often highlight remarkable moments by organizing festivals where everyone is united. The USA is a country where events have pretty enormous popularity among citizens. To prove this fact, we can observe the chart, given below which provides the information about events industry revenue in the USA from 2012 to 2014 (figure 3). As seen from the bar chart, the revenue from the events industry had never declined and is not expected to do that from 2012 to 2024, except in 2020, when the pandemic of COVID-19 erupted. As the pandemic is an external factor, which cannot be predicted, we can assume that in normal conditions, the industry revenue has a positive trend to grow and, therefore, the market size could grow with even higher CAGR than it used to before the pandemic after all the restrictions will be eliminated. The overall increase from 2012 to the projected 2024 year is expected to be 92%, while the CAGR for the same period is 5,6%. Such statistics imply that the industry has good prospects for growth, and the number of companies who operate in the industry will grow steadily due to the market size, which is growing at a pretty high pace. Because the projected Company is just about to be established, it is vital to assess the potential opportunities for entering the market and measure the Figure 3 Industry event revenue in the USA
9 Sample Company | BUSINESS PLAN Sample Company Inc levels of entry boundaries. The information provided in figure 4 could help to handle these tasks. The information about the industry's market size, where the projected Company will operate indicates that entering this market in the nearest future is very prospective. The restrictions implied by the local authorities due to the pandemic have stopped the growth of the market size. In contrast, the demand for the services provided by the companies that operate in the industry has increased because the number of citizens in the USA has grown by two million1. These positive indicators signalize that the industry is stable and is prospective for new companies to conduct business there. Such conditions are favorable for entrepreneurs who want to establish a company because the existing companies have severe problems due to restrictions. In contrast, the new ones can capture the market size. Overall, the industry is expected to grow up to 25% with a 2,8 CAGR. 1 Source: Worldometers // United States population (www.worldometers.info) Figure 4 Market size of the party and event planner sector
10 Sample Company | BUSINESS PLAN Sample Company Inc To analyze the possible output from entering the market, we had to observe the number of companies who have already provided the same services as the projected Company will provide before (figure 5). According to figure 5, the number of companies in the observing industry will grow up to 11% from 2012 to 2021 with a CAGR of 1,2%. Let's compare the growth rates of industry revenue and the market size with the number of companies operating in the industry. We can assume that the two first mentioned indicators grew more rapidly than the number of companies in the industry. That means that even though the new companies enter the market every year, their revenue is still growing. We can assume that the projected Company will be able to generate profits, which will increase yearly. Figure 5 Number of businesses in the party and event planner sector
11 Sample Company | BUSINESS PLAN Sample Company Inc To underline the importance of the operational sphere of the projected Company for the US labor market, we should analyze the information given in figure 6. Even though the negative impact of COVID-19 has not disappeared yet, the number of employees who work in the sector has not declined and is not expected to do that in forecasted 2021. One of the services which the projected Company is going to provide is holidays party. Since Christmas is one of the most popular events in the USA, it can indicate the potential demand for such services. The survey conducted in 2019 among US citizens has shown that most US people (for about 57% of respondents – 45%+12%) usually go to private or public parties. That means that the Company's services will Figure 6 Nubmer of employees in the party and event planner sector Figure 7 Christmas holidays survey
12 Sample Company | BUSINESS PLAN Sample Company Inc most likely meet the needs of American citizens, and the number of clients will increase throughout the time (figure 7). As weddings are another popular event, which is very important for many, the revenue from participating in its organizing is quite significant (figure 8). Based on the information in figure 8, we can assume that the majority of services used by clients during weddings can be provided by the projected Company, which means that the potential targeted market is vast, so, if there will be a crisis or severe problems in one operational sphere, the projected Company, due to the specific of its business, can easily switch to other markets and change the targeted audience. Such flexibility acts as an initial risk diversification, which is very vital in any business. Figure 8 Average cost for a wedding in the USA
13 Sample Company | BUSINESS PLAN Sample Company Inc Figure 9 gives us information about the segmentation of meeting, convention, and event planning jobs in the USA. As can be seen from the bar chart, the targeted segment occupies 3rd place among others. Though it is not very popular, we can assume that it has enormous growth potential and is not flooded by an inexperienced labor force. Trade shows the organization is one of the projected Company’s services; that is why we will further observe this sphere of business's prospects (figure 10). Figure 9 Share of meeting, convention and event planning jobs in 2019 Figure 10 Industry revenue of "convention and trade shows organizers"
14 Sample Company | BUSINESS PLAN Sample Company Inc The industry revenue shown in figure 10 is expected to grow up to 40% from 2012 to 2024 with a CAGR of 2,7%. The dynamics are slightly the same as shown in figure 3, as convention and trade show that the organization industry is an essential part of the events industry. As the growth rates of the events industry are higher than the same indicators of the convention and trade shows organization industry, we can assume that this industry is not the key driver of events industry growth. However, this industry should not be excluded from the list of the projected Company's operational activities due to the seasonality of the business and possible changes in clients’ demand in the future. Google Trends To assess the growth potential of the events market, we conducted an analysis using the Google Trends service to assess the interest of Google search engine users in events organizations. The values on the Y-axis indicate the level of interest in the topic. The most significant historical number of queries corresponds to the index of 100; all other indices are calculated as the ratio of the current number of queries to the highest. According to the Google Trends User Guide, a score of over 50% indicates high interest in the topic. Region of search - USA. We analyzed the Google search for “events” over five years to assess interest in the events market. The results are presented in Figure 11 below. Figure 11 Google Trends Index
15 Sample Company | BUSINESS PLAN Sample Company Inc The chart shows that since 2016 the average value of the index has been 54, and in the spring of 2020, there was a significant reduction due to the pandemic. The time series has strongly pronounced seasonality: there are peaks in the summer months every year. But the level of interest recovers throughout the time, so we can assume that as long as the restrictive measures will be eliminated by the government and the awareness of people by COVID-19 will go, the topic will be considered highly interested again. Based on these data, we may assume that events organizing projects will be in demand during the coming years. Summary The statistics presented in the market analysis show that the USA's events industry is actively growing at a rate exceeding the US economy’s growth rate. It indicates the high demand for the planned services. The main conclusions of the section: • The size of the events market in the USA is constantly increasing at a high rate. • The revenue from the event industry in the USA is in an active growth stage. Over the past years, the revenue has grown by 92%. The CAGR exceeded 5%. • People in Florida show a high interest in the topic of events and parties. • The specific of the projected Company's business makes it robust to rapid economic changes because its operational activity covers several spheres. The general conclusion from the industry statistics analysis is that the Company’s business is in demand in the US economy.
16 Sample Company | BUSINESS PLAN Sample Company Inc Investment & Financial Details Applicant Investment Details The Applicants shall make an initial investment of capital, contemporaneously with the execution of this Agreement, as follows: NAME CONTRIBUTION % OWNERSHIP Applicant Cash: $XXX,XXX 100% To-date expenditures LATCHING BOX + WHEELS Blush Velvet Panels Picnic tables 6x5 Gold Frame Wicker Chair with Stand White Wall 8x8 ICONA Stand ICONA Stand (Black) ICONA Stand (White) ASTARTE Love ASTARTE ONE ASTARTE GIRL ASTARTE BOY AGAUE Numbers 2 - 9 AGAUE Numbers 0 - 1 ASTARTE BABY ASTARTE ONE ASTARTE LOVE SHAI BABY Shower Blocks (White/Gold) SHAI BABY Shower Blocks (Clear) DIA Panel (Gold) DIA Panel (Black) DIA Panel (White) DIANA Panel Gold CIRCULAR Panel MERI Panel (Gold) AZTEC Round Panel (Gold) AZTEC Round Panel (White) AZTEC Round Panel (Black) KYLTIE Set (Gold)
17 Sample Company | BUSINESS PLAN Sample Company Inc To-date expenditures OSTARA Panel (Gold) OSTARA Panel (Black) PARANKA Gazebo (Gold) ARSINOE Gazebo (Clear) 【Pre-Order】LED Neon Sign【Girl or Boy】 【Pre-Order】LED Neon Sign【He or She】 【Pre-Order】LED Neon Sign【Mr & Mrs】 【Pre-Order】LED Neon Sign【Better Together 】 【Pre-Order】LED Neon Sign【Let's Party 】 【Pre-Order】LED Neon Sign【Love】 3 Pcs of Clear Square Cylinder Stand 【pre order】3 PCs Gold Round Metal Cylinder 5pcs of Metal Cylinder Stands 3PCs of Clear Round Cylinder Stand LED Neon Sign【Happy Birthday】 LED Neon Sign【Oh Baby 】 Lease (12 month contract) 1200 a month Sylvia: Artificial flower Wall Snow: Flower Wall Oracal 651 Vinyl Oracal 651 Vinyl Oracal 651 Vinyl Silhouette Cameo 4 Pro Gray Mercy Cart Total
18 Sample Company | BUSINESS PLAN Sample Company Inc Financial Highlights The following table and graph illustrate the business goals of the Company during the next five years: Table 1 Major highlights 2021 2022 2023 2024 2025 Total Revenue Gross Margin Operating Expenses EBITDA Net Profit Profitability Ratios Gross Margin/Revenue EBITDA/ Revenue Net Profit % Net Cash Flow Cash Balance Figure 12 Financial Highlights
19 Sample Company | BUSINESS PLAN Sample Company Inc Marketing plan The Company strategy to get clients The Company’s marketing strategy will be based on specialization and strategic relationships. Sample Company Inc. will be specializing in supplying the event planners with centerpieces of preserved roses and balloons with gifts inside. It will not be easy for competitors to find similar products while this task is solved. We believe that event planners will evaluate the efficiency of the purchase from the Company will contact it permanently. The Company's second competitive edge is based on the use of strategic relationships. Sample Company Inc. plans to build strong relationships with companies to equip their corporate activities. Most event planners are generalists and try to do a little of everything. We will focus on providing events with our products and leave other parties of events so that our partners also make a profit. The Company will aim to use the following strategy and every tactic available to acquire clients: • Event platforms The Company will register on platforms where companies and private customers can order events, floral arrangements, and equipment. Such platforms work as marketplaces for products, and the Company will use the same promotion strategy. The Company will create the proposal pages, and these pages will be promoted on the platform. • Event/party participants Participants in events for which the Company will deliver its products will be able to see its reality. The Company will agree with event planners branding part of the tracks so that those who like them can order them for their events in the future. The Company will also use a unique style of its centerpieces so that people looking for this style on the Internet immediately find the company website.
20 Sample Company | BUSINESS PLAN Sample Company Inc • Online Marketing Our main promotion activity will be aimed to attract targeted visitors to the Company's website. For this purpose, we will use mainly methods of online promotion (AdWords, SEO, SMM, etc.). The Company will use means such as: 1. Website creation and development. The website aims to promote the Company's products. The websites' visitors may see the catalog of flower centerpieces, balloons, and equipment. It will be possible to the visitors to make online orders. 2. Search Engines Optimization. The overall goal of Search Engine Optimization is to bring more website visitors, build Sample Company Inc. brand awareness, and bring more customers to the Company. 3. Social Media Marketing. The Company will develop platforms in several social networks in parallel, creating a community of interested users, informing them, and answering questions. Since we will constantly create beautiful compositions in our work, we will always have enough new content for SMM. In addition, Sample Company Inc. will create landing pages with special offers and use their paid promotion on social media. 4. PPC advertising. Periodically we will launch "paid per click" advertising campaigns in Google to speed up sales. • Direct Sales to B2B clients Direct sales are the first sales channel the Сompany will use. Mrs. Applicant, as a Company CEO, will play a significant role in the process. The Company may start this kind of sales in a short time.
21 Sample Company | BUSINESS PLAN Sample Company Inc Pricing and revenue The Company’s revenue is forecasted as follows: Income from selling flowers is estimated at $XXX per bouquet, income from selling balloons $XX per balloon, from selling arches & signs – $XX per unit. Along with the products mentioned above, the Company plans to provide such entertainment services as a ball pit and bouncing castle. The revenue from each of them is estimated at $XXX per hour of usage, and the minimum period to be used is 3 hours. The revenue structure of the Company is shown in Figure 13. Figure 13 Revenue structure
22 Sample Company | BUSINESS PLAN Sample Company Inc Stuffing Needs The number of employees in our team will stay permanent throughout the first month of project period and will consist only of CEO, in the second month the number of employees will increase due to the addition of sales manager and two specialists: • CEO (1 employee) • Sales manager (1 employee) • Specialist (X employees) Table 2 Personnel projections 2021 2022 2023 2024 2025 CEO Sales manager Specialist Total Table 3. Monthly wages by year Wages per month, $, 2021 Wages per month, $, 2022 Wages per month, $, 2023 Wages per month, $, 2024 Wages per month, $, 2025 CEO Sales manager Specialist Operation costs The Company operating costs consist of general expenses. Detailed costs information about the composition of costs can be found in Table 4. Table 4 General costs Cost type Period Amount Equipment/supplies Monthly Office/warehouse rent Annual Insurance Monthly Antivirus Annual Accounting/bookkeeping outsourcing Annual
23 Sample Company | BUSINESS PLAN Sample Company Inc Cost type Period Amount Cargo Van Finance Monthly Car Gasoline Monthly Marketing Monthly Financials Table 5 Personnel forecast 2021 2022 2023 2024 2025 Year-end personnel count CEO Sales manager Specialist Total personnel ($ per month) CEO Sales manager Specialist Personnel costs CEO Sales manager Specialist Total costs The Company intends to deploy its funding to maximize growth and profitability. The “bottom line” or profit (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses. In the Profit and Loss table below, gross margin equals revenue minus direct costs. Table 6 Profit and Loss statement 2021 2022 2023 2024 2025 Gross revenue COGS Salary and wages General costs Other expenditures Total costs Earnings before interest, taxes, depreciation and amortization Amortization
24 Sample Company | BUSINESS PLAN Sample Company Inc 2021 2022 2023 2024 2025 Earnings before interest and taxes Interest paid Profit before taxes Federal net income tax State (PA) net income tax Net profit Profit accrual The chart below demonstrates when the Company is expected to become profitable. Break-even occurs when revenue equals expenses. According to the financials, period 16 will be the point at which break-even will occur. As shown in the figure, revenue is always more significant than expenses after the 16st period. The following depictions of the Company’s projected cash flow show that the Company expects to achieve sufficient cash balances by 20XX. The “pro forma cash flow” table differs from the “pro forma profit and loss” (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include “noncash” items and exclude funding and investment illustration. Figure 14 Break – Even Analysis
25 Sample Company | BUSINESS PLAN Sample Company Inc Table 7 Cash Flow statement 2021 2022 2023 2024 2025 Cash at the beginning of the period Cash received from customers COGS Operating profit margin Salary and wages General costs Interest paid Taxes Cash flow from operating activities Land Building costs Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed Proceeds from loan Payments on loan Cash flow from financing activities Net cash flow FCFF Cash at the end of the period
26 Sample Company | BUSINESS PLAN Sample Company Inc Conclusion Summarizing the business plan data and results: • The size of the events market in the USA is constantly increasing at a high rate %. • The project’s investment period is short, and the Company may start working in the second half of 20XX. • The company owner will invest $XXX,XXX, and the Company will reach a break-even point in the XXst month after the start of sales. The total Company net profit will be $X,XXX,XXX - big enough to make the investment idea attractive. Based on all mentioned above, it can be concluded that financing of the project is a productive investment with low risk.
Appendix: Year 1 Financials by Month Table 8 Profit and Loss Statement Month 1 2 3 4 5 6 7 8 9 10 11 12 Gross revenue COGS Salary and wages General costs Other expenditures Total costs Earnings before interest, taxes, depreciation and amortization Amortization Earnings before interest and taxes Interest paid Profit before taxes Federal selfemployment tax Federal net income tax State (PA) net income tax Net profit Profit accrual
28 Table 9 Cash Flow Month 1 2 3 4 5 6 Cash at the beginning of the period Cash received from customers COGS Operating profit margin Salary and wages General costs Interest paid Taxes Cash flow from operating activities Land Building costs Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed Proceeds from loan Payments on loan Cash flow from financing activities Net cash flow FCFF Cash at the end of the period
29 Month 7 8 9 10 11 12 Cash at the beginning of the period Cash received from customers COGS Operating profit margin Salary and wages General costs Interest paid Taxes Cash flow from operating activities Land Building costs Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed Proceeds from loan Payments on loan Cash flow from financing activities Net cash flow FCFF Cash at the end of the period
Table 10 Balance Sheet Month 1 2 3 4 5 6 Assets Fixed assets PP&E Investments in-progress Current assets Accounts receivable Inventories Cash TOTAL ASSETS Equity and liabilities Owner's equity Capital stock Retained earnings Long-term debts Long-term debts Short-term debts Short-term debts Accounts payable Taxes payable TOTAL EQUITY AND CAPITAL
31 Month 7 8 9 10 11 12 Assets Fixed assets PP&E Investments in-progress Current assets Accounts receivable Inventories Cash TOTAL ASSETS Equity and liabilities Owner's equity Capital stock Retained earnings Long-term debts Long-term debts Short-term debts Short-term debts Accounts payable Taxes payable TOTAL EQUITY AND CAPITAL
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