XANA WATSON DISCLAIMER: This document is for information only and is not an offering for sale of any securities of the company. Information disclosed herein should be considered proprietary and confidential. The document is the property of Laze &1 L be a zdisclosed, e and may not distributed, or reproduced without the express written permission of Laze.
Table of Contents Executive Summary
3
Company Description
5
Industry Analysis and Trends
7
Target Market Analysis
10
The Competition
13
Marketing Plan and Sales Strategy
15
Operations and Management
17
Financials
20
Appendix
23
Resources
27
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Executive Summary The Company Laze is an organic handmade soap company. The company has a reputation of organically grown ingredients that are not grown with pesticides, synthetic fertilizers, and or genetically modified. The company has entered the organic beauty industry to meet the needs of customers who wish to use organic products.
The Company’s Mission Laze take pride in the company mission of “Creating soaps with pure and stimulating ingredients that enable the mind to feel at a state of relaxation with natural aromas while the body soaks in friendly and moisturizing oils.
Service or Product Laze provides three signature handmade soaps: ReFlaxzation Organic Flaxseed Soap, Jojoba Blash Organic Soap, and Mil-Aze Organic Camomile Soap.
Marketing Plan Laze will drive business through marketing channels of Social/Viral Marketing, Public Relations and Email Marketing. Within Social/Viral Marketing and Email Marketing all metrics will be calculated and documented to see the success rate of complete sales transactions in relation to the ad.
The Competition Two direct competitors that are on the scale of Laze are The Florida Soap Company and The Naked Bar Soap Company as they are small scale local entrepreneurial endeavors who offer similar product lines. And a larger scale competitor within the organic beauty industry would be Lush known by the masses for their variety of products and customer service.
Competitive Advantage Compared to competitors Laze has a lead in business to consumer relationships when it comes to the connectivity and transparency that the company has. With this method in place consumers are prone to buy from Laze due to the emotional attachment with the leaders behind the company.
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Target Market Within the organic industry there is a wide pool of potential consumers that wish to consume pure and organic products. Laze has create a company target market of woman, ages 23-40, married, with about $30,000-$50,000 in annual income. With this demographic the company has tailored it’s marketing to the target market but is never limited to outside consumers.
Management Laze is a sole entrepreneurship with Xana Watson as the owner. There are potential assistant positions in place to ease the work flow incase of an unexpected increase in demand.The company also has in place key advisors Jennifer Miller Owner of Rolls And Raspberries and Demetrius Moore Owner of Live Moore Marketing for insightful entrepreneurial advice without being the companies direct competitors.
Stage of Development As of November 13, 2016 Laze has developed a thorough business plan assessing competitors, financials, potential investors , and marketing plans. The next stages of company will be landing investors interest to fund for products and testings for the final product launch.
Funds Sought and Utilization Laze as an online company is seeking efficient technology that will enable customer service and products to be handled in a timely manner. Also, the company is seeking financial assistance when it comes to product testing and procedures that have to be done, based off the legal laws of the USDA. Lastly, partial funds will be used on service that cannot be internally fulfilled such as Attorney’s, Accountants, licenses and insurance.
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Company Description Mission Laze takes pride in creating soaps with pure and stimulating ingredients that enable the mind to feel at a state of relaxation with natural aromas while the body soaks in friendly and moisturizing oils.
Services Laze offers a variety of handmade organic soaps that targets skin types ranging from dry to oily. With the beginning stages of the company, Laze only offers three variations of organic soaps to the market. As of now, each product has its own market price based on the ingredients used while only offering one option of quantity. Products Listing: ReFlaxzation Organic Flaxseed Soap (5oz) - Organically grew flaxseed oil is a huge aid to skin that is prone to dryness as it moisturizes and hydrates. Flaxseed also has many added benefits such as skin toning. Within ReFlaxation, Laze has also infused Eucalyptus oil. Eucalyptus has a distinct relaxing aroma but also is packed with skin healing properties. Jojoba Blash Organic Soap (5oz.) - Pure Jojoba oil surprising is a huge aid to oily skin. Pure Jojoba oil counteracts overactive sebaceous glands, causing sebaceous glands to reduce production of oily skin. Jojoba oil is also an aid for acne prone skin. Additionally, Laze has infused frankincense oil, which has healing properties the reduce acne and blemishes. Mil-Aze Organic Camomile Soap(5oz.) - Camomile is known for its glorious smell and soothing feel. Although it also has many benefits for those who have combination skin. Combination skin can be prone to sensitivity allowing chamomile to be the balance in moisture and light weight. Laze products can only be consumed online. The company uses Squarespace and Paypal software for sales transactions, product distribution, and customer service.
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Development-to-Date As of October 2016, Laze is in its start-up phase. Within this phase the company is developing the vision and scope which enables the company to begin to develop the structure of the company, what Laze stands for, as well as the intended market. Laze has also curated the mission of the company as well as the target market. Currently, Laze is working or finalizing services as well as hardware and software needed in order to fulfill all services offered in a timely and organized manner.
Legal Status and Ownership Laze is owned and managed by Xana’ Watson in Winter Park, Florida. As of October 2016, Laze was registered as a Limited Liability Company. The company is in the process of looking for crowd funding and or investor to fulfill $10,000. This cost will cover hardware and software cost. As well as, potential coverage of assistant staff payroll, product, and product packaging.
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Industry Analysis and Trends Industry Overview Traditionally, there has been constant fluctuations within the United States Economy year-to- year. With this trend it is common for many industries to thrive or crash as a result. Writer Bill McBride of Calculated Risk Finance & Economics perviously embarked on the Gross Domestic Product which measures the countries overall economy, between the year of 2000-2013 even though these statics occurred prior to this current fiscal year it still remains relevant to our current behaviors.
Between 2008 and 2010 the United States reached a major decline. America shortly recovered during the publication of this article leaving the economic growth at about 3% in 2013. Now to expand upon the sectors that make up the global economy and more specifically the Beauty and Wellness industries contribution. According to the Global Cosmetics Industry article entitled Demand for Organic Beauty to Grow to Over $13 Billion by 2018 analyzed prior and current trends beginning in 2012 that will potentially effect the economy until 2018.
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In 2012, the demand for organic personal care products was over $7.6 billion.(Global Cosmetic Industry, 2013) Within this time US consumers became concerned and conscious of personal hygiene needs causing the US to dominate this increase of demand followed by Japan and Germany. With the outstanding growth and development of new products within the organic beauty industry it is predicted that by the year of 2018 that the industry will reach a peak of 9.6% in growth. Moving forward to typical mark up and profit margins applied within this industry that make up the economic growth. When creating natural products there are components that consist of cost of raw materials, packing, labor, and shipping. The price of these components vary depending on quality although cost of raw material is the leading cost factor when manufacturing these goods. The reasoning for the cost differentiation of raw ingredients stems from the need companies have to outsource these good. According to writer Laura Badcock of Essential Wholesale and Labs states that a healthy retail price in the US natural and organic skin care and body care market is five to six times your cost, leaving you with an 80% or more profit margin.
Market Opportunity When it comes to marketing there are two major markets that have the potential to skew and or positively effect Laze. Those industries consist of the beauty and health industries.Traditionally speaking there was once a time where consumers would pick a product off the self first assessing price and secondly the visual appeal. Although the trend generating approximately 31 billion U.S dollars of organic food sales has shaped consumers to inquire nutritional facts before price. Additionally, the beauty industry has grown and takes up 35.3% of the global market in 2014. Although, within the beauty industry consist of a small niche for organic products parallel with the expansion of organic produce, causing a trend of living organically inside and out to surfaced.
Barriers to Entry Even though the demand of the organic industry has increased it has also made consumers more conscious of indigents before any other factors. When some consumers look into a product they are mainly looking into companies that are 100%, cruelty free and chemical free which will not harm Laze as they fulfill these demands. But other consumers are even more thorough than that. These types of consumers are the researchers that take weeks to look into all ingredients of a new product line to
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ensure that they are spending their max dollar on honest products which will also cause them to have to stray for the routine competitor products. Meaning that in the beginning as Laze enters the market the buying behaviors of consumers will not be as frequent due to these factors.
Long-Term Opportunities There are several opportunities that Laze has considered and wish to develop with the end goal of expanding the brand reputation as well as product line. With this end goal in mind, Laze has come up with ways to strategically target consumers in ways that they naturally consume information rather than in times were they are uninterested. Laze accredits that the Global Beauty Market has not only grown by 4.5% within a yearly average, but is heavily influenced by trends and word of mouth. Therefore, Laze has set out to develop brand deals with local social media influencers such as Youtube stars Nicole Guerrero(Orlando, 2,722,748 subscribers) and Luhhsett (Orlando, 640,154 subscribers) and local family Instagram Brand Ambassadors such as @realone921(Orlando, 371 followers). With these connections Laze hopes to instill brand credibility through reviews from the influencers enabling their fan base to become aware and curious of Laze company mission and products. As a result of this goal, Laze hopes within 10 years to be a reputable Florida brand landing articles in the Orlando Sentinel, become a permanent vender of the Winter Park Farmers Market, as well as owning a Laze store front in the Winter Park area along with its online store.
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Target Market Analysis Overview With the occurrence of the market trends, Laze target market are people who wish to fulfill and live healthy lifestyles. With this transition these consumers are looking to consume the freshest and most organic produce as well as health produces.
Market Description Many trends were created due to the satisfaction of healthy living. Within this market families are ditching traditional products due to ingredients and spending a little more of the household dollar to invest in their health. These changes consist of things like switching from regular milk to almond milk or even mothers shopping for organic produce to create their own baby food.
Market Size and Trends The beauty industry has grown and takes up 35.3% of the global market in 2014. Although, within the beauty industry consist of a small niche for organic products parallel with the expansion of organic produce, causing other companies to reassess and launch products that are vegan, cruelty, and chemical free. But, what drives this change? A huge change and industry shift that has been a factor of beauty sales is the age of Youtube beauty influencers. For instance beauty company Sigma took advantage of this platform through the partnerships of influencers increasing sales by $25 million within one year. With many success stories of companies and online influencers, it has become an easy way to promote product while being able to show consumers the product through fellow consumer reviews.
Target Customers Age- 23-40 Location - Central Florida Gender - Female Education Level - College Income Level - $30,000-$50,000 Marital or Family Status - Married Behaviors - Enjoys routine, Easily adaptable
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Personality - Adventurous, Comfortability, Balance Laze target customers are woman of all walks of life that are constantly on the go whether it is juggling a career or children. But these type of people are loyal to brands and enjoy knowing that a company will have what they want when they want it in the mist of there chaos.
Market Readiness The national market is saturated with organic wellness companies with the growth of billions of dollars demonstrating the readiness and demand for Laze products. Although the industry saturation has not reached it full potential. According to the USDA Census of Agriculture there are ten states that take the lead in organic sales.
All in all, this illustrates national consumers readiness for better living, while showing the need for growth in Florida when it comes to the organic market.
Strategic Opportunities An advantage that Laze has when it comes to the target market is their relationships. Companies now fail to see and or look into how our target market consumes information and where it is headed. Within the last few years many natural hair care forms and communities where created to bridge connections between like mined individuals. This sparked not only friendships but sales as consumers shared their experience or likings of a new product. Laze has acknowledged that this process and creation is what kept
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many business afloat with the power of word of mouth between consumers. Therefore Laze will take the initiative to connect and interact with online customers to make them feel appreciated with hopes that they will instill trust within the brand and spark conversations about Laze.
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The Competition Overview Within the organic industry, companies have formed to fulfill specific needs of a new target market. Within this competitive field companies offer and array of beauty as well as health products with natural and handmade ingredient allowing consumers to feel that they are getting the freshest products. Laze specific competitors consist of: The Florida Soap Company The Naked Bar Soap Company Lush
Competitors (1) The Florida Soap Company founded in 2010 with an online store and storefront property in Orlando Florida, offering pure products ranging from soaps, sugar scrubs, facial serums, and shower soufflé. While encouraging consumers to “Bathe Yourself in Sunshine” (2) The Naked Bar Soap Company founded in 2011 with an online store and storefront property in Winter Park Florida, offers products ranging from body to skin cleansers, moisture’s, and accessories. With a mission of “Crafting soap is therapeutic and holistic all at the same time.”(NakedBar, 2016) (3) Lush founded in 1995 in over five countries, is a company that provides handmade cosmetics that ensures that all products are the freshest, 100% Vegetarian, and cruelty free. Lush offers products ranging from fresh facial mask only available in store as well as bath, hair, face, body cleaners, moisturizers, and perfumes. With a mission encouraging consumers to live “A Lush Life.”
Advantages The competitors of Laze offer many perks but one advantage that Lush offers that sets them apart is the face to face interaction that customer receive when offered a sample and or demonstration of a product. A huge disconnect when consumers buy from a store and or online stores is the guarantee of their satisfaction. But, Lush as put in place a process that will limited dissatisfaction. When a consumers seems hesitant about a products texture, ingredient, smell, or quality Lush consultants sit down with the customer and performs a live demonstration. As a result this gives the opportunity for the consultant to offer another product if the consumer isn't pleased lowering the rate of exchanges and or sales loss.
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Barriers to Entry The biggest barrier that Laze will have when it comes to competing with current competition will be brand visibility and reliability. It is know that consumers tend to shop at online stores that they are more familiar with. This is simply a trust factor between the business and the consumers as the consumers purchase material before they receive the tangible item.Laze competitors have one major advantage which is, how long they have been around. Therefore, a barrier is created for Laze top the fan base that these companies took years to build. Secondly, as a newer company it will be harder to offer deals. Prior to the opening of Laze, knowing that a healthy retail price in the US natural and organic skin care and body care market is five to six times the cost, leaving the company with an 80% or more profit margin(Bascock,2015) may seem large but Laze will be recovering from starter cost, Limiting the companies ability to match competitors pricing and deals. For example NakedBar Soap Company, offering “Flat rate Shipping or Free Shipping for orders over $50�(NakedBar,2016)
Strategic Opportunities Laze never views competitors as any less due to the similarities within missions of using the freshest and most natural ingredients to suit consumers needs. Therefore, there is defiantly potential for collaboration. Since Laze works diligently to create connects with consumers it is likely that Laze and competitors could come together to sponsor or host a natural market or seminar to share knowledge and perspectives of the industry.
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Marketing Plan and Sales Strategy Marketing Message “It’s the LazeCraz way to bathe�
Customer Need Based off Laze target consumers there is a need within the customers to use 100% organic soaps that are tailored to their skin styles. Therefore, the companies marketing effects intrigue the target market as it reassures the purity of the product.
Social/Viral Marketing With this growth of the social media age many companies have taken the opportunity to use these platforms to promote business to their target market. Although Laze plans to use social media in a few different ways. First, based off the companies target market it is known that about half of the companies target market rely heavily and or are influenced by social media. Therefore, Laze will participate in creating relationship with consumers. One campaign that Laze will use to interact with consumers on Twitter will be in the form of a Tweet Up. Within this campaign consumers will not only use company hashtag (#LazeCraz) to drive visibility but to also spark conversation between consumers to see what their interest are within the organic beauty industry and tips that they have to share within the companies Tweet Up community. Secondly, Laze plans to use social media as an outlet for sales promotion and product information. This form of communication allows easy share-ability of product sales from consumers to consumers as well as product information and Q&A responses from the company.
Public Relations Laze plans to use local special events as the companies source of Public Relations. One of the events that Laze wish to participate in is the Winter Park Farmers Market. With Laze participation of this event there are two benefits: potential product sales and brand exposure. The similarities in target market between Laze and the Winter Park Farmers market it enabled to company to connect with consumers that would traditionally seek Laze product and gain a connection through those who are not yet aware of Laze online store.
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Email Marketing With research found on Laze target market it is known that the behaviors of the older population within the target market are creatures of habit and routine. As a result, of these behavior they drive the companies customer loyalty but how are they consuming information? Traditionally speaking the older age bracket of the target market are woman whom are established within their careers and families. With this lifestyle they are know to have a shorter amount of down time within a day to explore the web for news and deals. With this observation, Laze will curate email marketing, eBlast that are colorful, short, and informative to catch the attention of the consumers. Along with these attributes email marketing also allows for Laze to target consumers in a way that does not effect their time. All of Laze email marketing campaigns will consist of short statements regarding sales or product launch. Another aspect that Laze email marketing takes pride in is no hassle, the companies messages will only directly link them to the site upon the consumers request without the worries of popups or request to make an account.
Sales Process and Structure Upon marketing visibility to consumers orders will be processed solely online. After their payments are approved and processed it is the job of the product packing assistant to gather packing material needed to prepare and the quantity needed to fulfill the order.
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Operations and Management Overview Laze business operations will solely be conducted online therefore, it is not required to have a physical location for store sales. Due to the predicted accumulation of sales owner Xana Watson has put in place assistant positions to assist with fulfilling online sales.
Technology When consumers shop online, it is proven that the speed and simplicity of an online shop is what lowers bounce rates and increases sales. In order to ensure fast service, organization, and great user experience the following technology will be needed: Software: Paypal, Microsoft Office, Microsoft Excel,Squarespace Hardware: iMac Desktop, MacBook Air, iPhone, Color Printer/Fax, Headset, Cannon t5
Management XANA WATSON,OWNER. Xana Watson has 3 years of retail experience as she worked alone side an entrepreneur of a local beauty supply, assisting with store advertising and customer interaction. Xana is also a recent graduate with a Bachelors of Science in Media and Communication. With this insight Xana has the knowledge of marketing, structure of a business, and the steps it takes to kick start a business. Xana also has an emotion tie with the organic industry as she has found an interest for organic hair and skin care living since going natural in 2013, enabling her to realize what her need once were as a consumer.
Key Employees CUSTOMER SERVICE ASSISTANT (TO BE SELECTED) Owner, Xana’ Watson will closely work and train this candid. It is the responsibility of Customer Service Assistant to consult with customers regarding any enquiries and or complaints that customers may have. Customer interaction will solely be conducted via messaging or phone conversations therefore it is essential that all conversations are kept professional, courteous, and solution based. Customer Service Assistants are ultimately the first point of contact from consumers to the company. Skills Required:
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Communication Skills, Ability to manage multiple customer inquires, IT skills, 2-3 years of customers service experience. PRODUCT PACKING ASSISTANT (TO BE SELECTED) It is the responsibility of a Product Packing Assistant manage invoice as well as, ensure all packages meet the required quality standard of the company. A Product Packing Assistants work load ranges from printing product invoices, product shipping labels to lifting of heavy equipment and or inventory. Skills Required: Ability to work in team, Highly organized, well adapted to change, Ability to troubleshoot problems.
Key Advisors JENNIFER MILLER OWNER. ROLLS AND RASPBERRIES. Jennifer is the found of Rolls and Raspberries kids appeal line. As an entrepreneur and Digital Cinemtiagreapher teacher, Jennifer is able to used her acquired knowledge to target her consumers with engaging content and product style. Therefore, Jennifer will be able to assist Laze when it comes to creating trendy web design, social media graphics, and connecting with consumers. DEMETRIUS MOORE OWNER. LIVE MOORE MARKETING. Demetrius Moore is a graduate of the University of Central Florida, with a major in Marketing. Demetrius has taken what he has learned and founded Live Moore Marketing which helps small and large business to reach their intended market through social media. Therefore, Demetrius will be able to assist Laze when it comes to strategic marketing tactics that should be used to trigger consumers to buy.
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Management Structure
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Financials Overview In order to start the Laze company, there are several factors that will cause the company to seek outside funding. Since Laze will solely be an online operating business there are a few things that the company are able to foresee in the buying process but certain equipment and services will be necessary for the effectiveness and efficiency of business operations. Therefore the three sources of outside funding that Laze will seek are Crowdfunding, Angel Investors, and Microlenders.
Start - Up Costs Laze (initial capital expenditures)
Facilities Land Building Improvements / Remodeling other : other: subtotal
$0 $0 $0 $0 $0 $0
Equipment
Furniture Production Machines / Equipment Computers / Software Cash Registers / POS Terminals Telephone / depreciable equipment Vehicles other: other: subtotal
$6,300
Materials / Supplies Office Supplies Stationary / Business Cards Brochures / Pamphlets / forms Inventory Packaging Product Tools subtotal
$300 $60 $100 $500 $400 $150
Fees and professional services Product Test Deposits (Security/ Utilities/ etc) Licenses, Permits Trade or Professional Attorneys Accountants Insurance Marketing / Mgt Consultants Design / Technical Consultants Advertising / Promotion subtotal
$799 $275 $200 $100 $360 $375 $500 $350 $400 $460
TOTAL Capital Costs Working Capital Needs Total Funds Required
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$0 $400 $5,400 $0 $500 $0 $0 $0
$1,510
$3,819
$11,629 $5,000 $16,629
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Sources of Funding Crowdfunding Crowdfunding is defined as a method of raising funds through small investors, potential customers, family and or friends but the main drive that enables people to donate is through their sense of connection to the company. Therefore, this method of funding would be beneficial to Laze when it comes to company visibility and gathering potential customers. To begin, when small investors, customers or friends donate, it is their sense of emotional connection to the cause. In return, this would be an advantage for Laze as the crowdfunding will help forecast potential interest in the companies products. Also and advantage of crowdfunding would be the visibility that it brings. Most crowdfunding sites are shared via social media, email messaging and word of mouth. Thus, this gives Laze an opportunity to broaden customer reach through the share-ability of the crowdfunding efforts causing many to wonder the mission and values of the company before investing. On the contrary, a disadvantage of seeking crowdfunding would be the return that donators want to see on their investment. For instance, most investors expect a courtesy gift for their donation and or proof that they invested in a profitable cause. Since Laze is seeking crowdfunding to kickstart and create product there is a chance that investors may not be 100% satisfied with the results.
Angel Investors With the start up of Laze it would be beneficial to seek funding from an angel investors as they seek opportunities to invest in small companies. An advantage that Laze has when it comes to angel investors are the market opportunities. Aside from the companies mission and business plans which also play a factor in investors decisions there is also statistical growth in the organic beauty industry demonstrating the demand. With the growth in the economy within the last five years in 2012 the organic beauty industry projected over $7 billion in global sales. Although this could also be a disadvantage to the company with the potential of angel investors wanting an average of 10%-50% of the business.
Microlenders Since Laze is a small start up venture one of the best sources to receive outside funding is through micro loans. Micro loans are what provides about a maximum of $100,000 in financial support to small businesses. Most micro lenders invest in small business as they see the potential for growth in the economy, job opportunities, and income. This method is also helpful as many larger scale investors want to see company history and profit before they invest. Therefore, this form of funding is an advantage for
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Laze as there are no current asset or products made but the companies market is one that has show exponential growth within the last four years allowing micro lenders to receive a return on their investment with the hyper growth of the industry demand. On the contrary, a disadvantage to micro lending would be fees and interest rates. Since Laze is seeking $15,280 in investments it is projected that the company could be charged an average of 15%-18% interest rate with an annual percentage rate of 20%.
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Appendix SWOT Analysis
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Additional Financials: Projected Income Statement - Year 1
Income Statement by MONTH
first year of operation
JAN
FEB
MARCH
APRIL
Laze
JUNE
MAY
JULY
AUGUST
SEPT
OCT
NOV
DEC
TOTAL
INCOME Gross Sales (commissions) (returns / allowances) NET SALES (Cost of Goods Sold) GROSS PROFIT
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$250 $0 $0 $250 $0 $250
$350 $0 $0 $350 $0 $350
$500 $0 $0 $500 $0 $500
$650 $0 $0 $650 $0 $650
$750 $0 $0 $750 $0 $750
$750 $0 $0 $750 $0 $750
$700 $0 $0 $700 $0 $700
$750 $0 $0 $750 $0 $750
$700 $0 $0 $700 $0 $700
$700 $0 $0 $700 $0 $700
$6,100 $0 $0 $6,100 $0 $6,100
Salaries & Wages Employee Benefits Payroll Taxes Professional Services Rent Maintenance Equipment Rental Furniture & Equipment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30
$0 $0 $0 $100 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $100 $0 $0 $0 $10 $0 $0 $250
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $10 $0 $0 $50
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $10 $0 $0 $50
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $100 $0 $0 $0 $10 $0 $0 $150
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $10 $0 $0 $50
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $10 $0 $0 $50
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $10 $0 $0 $50
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $10 $0 $0 $50
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $10 $0 $0 $50
$0 $0 $0
Insurance Utilities Telephone Svc Office Supplies Postage / Ship Expense Marketing & Advertising exp Travel Entertainment Technology Packaging Other: Other: TOTAL EXPENSES
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $0 $100 $0 $0 $0 $0 $0 $0 $130
$0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $10 $0 $0 $50
$0 $0 $0 $100 $0 $0 $0 $0 $0 $0 $0 $360 $0 $100 $300 $0 $0 $0 $100 $0 $0 $960
EBIT (earnings b4 interest & taxes)
-$130
-$30
$0
$300
$450
$500
$700
$700
$650
$700
$650
$650
$5,140
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
-$130 -$26
-$30 -$6
$0 $0
$300 $60
$450 $90
$500 $100
$700 $140
$700 $140
$650 $130
$700 $140
$650 $130
$650 $130
$1,028
NET INCOME AFTER TAXES
($104)
($24)
$0
summation of cash flows
-$130
-$160
-$160
EXPENSES
Depreciation
Interest expense Net Income before Taxes ( Provision for income taxes)
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$240 $140
$360 $590
$400
$560
$560
$520
$560
$520
$520
$1,090
$1,790
$2,490
$3,140
$3,840
$4,490
$5,140
&24
$5,140
$4,112
Additional Financials: Projected Income Statement - Year 2
Income Statement by MONTH
second year of operation
JAN
FEB
MARCH
APRIL
Laze JUNE
MAY
JULY
AUGUST
SEPT
OCT
NOV
DEC
TOTAL
INCOME Gross Sales (commissions) (returns / allowances) NET SALES (Cost of Goods Sold) GROSS PROFIT
$700 $0 $0 $700 $0 $700
$700 $0 $0 $700 $0 $700
$800 $0 $0 $800 $0 $800
$1,200 $0 $0 $1,200 $0 $1,200
$1,350 $0 $0 $1,350 $0 $1,350
$1,500 $0 $0 $1,500 $0 $1,500
$1,500 $0 $0 $1,500 $0 $1,500
$1,400 $0 $0 $1,400 $0 $1,400
$1,400 $0 $0 $1,400 $0 $1,400
$1,300 $0 $0 $1,300 $0 $1,300
$1,200 $0 $0 $1,200 $0 $1,200
$1,200 $0 $0 $1,200 $0 $1,200
$14,250 $0 $0 $14,250 $0 $14,250
Salaries & Wages Employee Benefits Payroll Taxes Professional Services Rent Maintenance Equipment Rental Furniture & Equipment Depreciation Insurance Utilities Telephone Svc Office Supplies Postage / Ship Expense Marketing & Advertising exp Travel Entertainment Technology Packaging Other: Other: TOTAL EXPENSES
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $100 $0 $0 $0 $20 $0 $0 $160
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $0 $0 $0 $40
$0 $0 $0 $100 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $0 $0 $0 $140
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $20 $0 $0 $0 $0 $20 $0 $0 $70
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $20 $50 $10 $40 $0 $0 $0 $0 $150
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $0 $0 $0 $40
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $20 $0 $0 $60
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $0 $0 $0 $40
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $50 $0 $0 $0 $0 $0 $0 $90
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $20 $0 $0 $60
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $0 $0 $0 $40
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $0 $0 $0 $40
$0 $0 $0 $100 $0 $0 $0 $0 $0 $0 $0 $360 $0 $140 $200 $10 $40 $0 $80 $0 $0 $930
EBIT (earnings b4 interest & taxes)
$540
$660
$660
$1,130
$1,200
$1,460
$1,440
$1,360
$1,310
$1,240
$1,160
$1,160
$13,320
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$540 $189
$660 $231
$660 $231
$1,130 $396
$1,200 $420
$1,460 $511
$1,440 $504
$1,360 $476
$1,310 $459
$1,240 $434
$1,160 $406
$1,160 $406
$13,320 $4,662
EXPENSES
Interest expense Net Income before Taxes ( Provision for income taxes)
$0 NET INCOME AFTER TAXES summation of cash flows
L a z e
$351 $540
$429
$429
$735
$780
$949
$936
$884
$852
$806
$754
$754
$1,200
$1,860
$2,990
$4,190
$5,650
$7,090
$8,450
$9,760
$11,000
$12,160
$13,320
&25
$8,658
Additional Financials: Projected Income Statement - Year 3
Income Statement by MONTH
third year of operation
JAN
FEB
MARCH
Laze
APRIL
JUNE
MAY
JULY
AUGUST
SEPT
OCT
NOV
DEC
TOTAL
INCOME Gross Sales (commissions) (returns / allowances) NET SALES (Cost of Goods Sold) GROSS PROFIT
$1,300 $0 $0 $1,300 $0 $1,300
$1,300 $0 $0 $1,300 $0 $1,300
$1,400 $0 $0 $1,400 $0 $1,400
$1,350 $0 $0 $1,350 $0 $1,350
$1,500 $0 $0 $1,500 $0 $1,500
$1,600 $0 $0 $1,600 $0 $1,600
$1,700 $0 $0 $1,700 $0 $1,700
$1,650 $0 $0 $1,650 $0 $1,650
$1,650 $0 $0 $1,650 $0 $1,650
$1,500 $0 $0 $1,500 $0 $1,500
$1,500 $0 $0 $1,500 $0 $1,500
$1,400 $0 $0 $1,400 $0 $1,400
$17,850 $0 $0 $17,850 $0 $17,850
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $20 $10 $200 $0 $0 $0 $20 $0 $0 $280
$0 $0 $0 $100 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $0 $0 $0 $140
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $15 $0 $0 $0 $0 $0 $0 $0 $45
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $45 $0 $20 $0 $0 $0 $0 $20 $0 $0 $85
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $45 $0 $25 $100 $0 $100 $200 $0 $0 $0 $470
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $45 $0 $20 $0 $0 $0 $0 $0 $0 $0 $65
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $45 $0 $10 $0 $0 $0 $0 $20 $0 $0 $75
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $45 $0 $10 $0 $0 $0 $0 $0 $0 $0 $55
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $50 $0 $0 $0 $0 $0 $0 $90
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $20 $0 $0 $60
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $0 $0 $0 $0 $40
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30 $0 $10 $0 $0 $0 $200 $0 $0 $0 $240
$0 $0 $0 $100 $0 $0 $0 $0 $0 $0 $0 $435 $20 $160 $350 $0 $100 $400 $80 $0 $0 $1,645
$1,020
$1,160
$1,355
$1,265
$1,030
$1,535
$1,625
$1,595
$1,560
$1,440
$1,460
$1,160
$16,205
EXPENSES Salaries & Wages Employee Benefits Payroll Taxes Professional Services Rent Maintenance Equipment Rental Furniture & Equipment Depreciation Insurance Utilities Telephone Svc Office Supplies Postage / Ship Expense Marketing & Advertising exp Travel Entertainment Technology Packaging Other: Other: TOTAL EXPENSES EBIT (earnings b4 interest & taxes) Interest expense Net Income before Taxes ( Provision for income taxes)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,020 $357
$1,160 $406
$1,355 $474
$1,265 $443
$1,030 $361
$1,535 $537
$1,625 $569
$1,595 $558
$1,560 $546
$1,440 $504
$1,460 $511
$1,160 $406
$16,205 $5,672
$663
$754
$881
$822
$670
$998
$936
$949
$754
$1,020
$2,180
$3,535
$4,800
$5,830
$7,365
$13,585
$15,045
$16,205
prev yr adjst NET INCOME AFTER TAXES summation of cash flows
L a z e
$1,056 $8,990
$1,037
$1,014
$10,585
$12,145
&26
$0 $10,533
Additional Financials: Sources & Uses of Funds
Sources and Uses of Funds Laze
$16,629 $3,000
Amount of Investor funds being sought this round: Investment by Principal(s):
$19,629
TOTAL SOURCE OF FUNDS :
Uses of Funds Capital Expenditures
Land, building and leasehold Improvements Purchase of Equipment/Furniture
$0 $6,300 $6,300
Working Capital
Materials, supplies and inventory Deposits, fees and professional services
$1,510 $3,819 $5,329
$11,629
Three year working capital needs
$5,000
Total Use of Funds
$16,629
Cash Reserve:
L a z e
total start-up costs
$3,000
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Owadenko, T. (2014, September 5). Check Site Links To Sigmabeauty.com. Retrieved from http://www.sitelinks.info/ sigmabeauty.com/ U.S. organic sales post new record of $43.3 billion in 2015. (n.d.). Retrieved from https://ota.com/news/press-releases/19031 "Organic" Cosmetics. (n.d.). Retrieved from http://www.fda.gov/Cosmetics/Labeling/Claims/ucm203078.htm Types of Public Relations. (2011, August 3). Retrieved from https://bitesizepr.com/types-of-public-relations/ Microloan Program | The U.S. Small Business Administration | SBA.gov. (2016). Retrieved from http://www.sba.gov/loansgrants/see-what-sba-offers/sba-loan-programs/microloan-program Microloans. (2016). Retrieved from http://www.opportunityfund.org/learn/microloans/ What is Crowdfunding? Clear, Simple Answer Here. (2014). Retrieved from https://www.fundable.com/learn/resources/ guides/crowdfunding-guide/what-is-crowdfunding Harroch, R. (2015, February 5). 20 Things All Entrepreneurs Should Know About Angel Investors. Retrieved from http:// www.forbes.com/sites/allbusiness/2015/02/05/20-things-all-entrepreneurs-should-know-about-angel-investors/ #4a334d81483a E. (2016). Getting Started With Angel Investing. Retrieved from https://www.entrepreneur.com/article/52742 Shewan, D. (2015, July 16). WordStream. Retrieved from http://www.wordstream.com/blog/ws/2014/11/12/is-emailmarketing-effective
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