

Manufacturing
A Company Of Quality

Business
Plan
[YEAR]

John Doe
10200 Bolsa Ave, Westminster, CA, 92683

(650) 359-3153

[email protected]

http://www.example.co

CONFIDENTIAL
Table of Contents

Executive Summary 5
Business Profile Summary 6
Market Research Summary 6
Marketing Summary 6
Finance Summary 7
Net Income 7

Business Description 8
Business Overview 9
Business Description 9

Unique Value Proposition 9

Company History 9
Management 10
Location 10
Legal Structure 10
Vision & Mission 11
Professional Advisors 11
Goals & Objectives 11

Products and Services 12

Products 13
Premium Sustainable Leather Designer Bag 13

Alternate Sustainable Material Bag 13

Heirloom Limited Edition Bag 13

Basic Purse 14

Market Research 15
Industry Profile & Outlook 16
Local Market 16
Key Competitors / SWOT Analysis 17
Ci Comme Ca 17

Manufacturing | Business Plan [YEAR] 2/37

 Baggit 18

Target Market 18
Customer Survey Summary 19

Sales & Marketing 20

Pricing Strategy 21
Alternate Sustainable Material Bag 21

Premium Sustainable Leather Material Bag 21

Heirloom Limited Edition Bag 21

Basic Purse 22

Marketing Strategy 22
Digital Marketing 22

In Person Marketing 23

Print Marketing 23

Operations 24
Location(s) 25
Legal Issues 25
Insurance Issues 25
Human Resources 26
Jennifer Martinez 26

Packaging/Shipping/Handling 26

Manufacturing Assistant 26

Marketing Designer 26

Process/Production 27
Production Flow and Delivery Method of Products and Services 27

Suppliers 27

Risk Assessment 28

Financials 29
Breakeven analysis 30
Projected Profit and Loss 30
Projected Cash Flow 33
Projected Balance Sheet 34

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1.

Executive Summary
Business Profile Summary
Market Research Summary
Marketing Summary
Finance Summary

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Business Profile Summary

 Baggit

Baggit designs manufacture and sell the highest quality men’s and women’s designer
bags and totes. Baggit distributes products through its online store, boutique retailers,
and brick and mort ar fashion outlets across North America. Wholesale is a key part of
Baggit’s strategy through
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Market Research Summary

 Baggit

Jennifer has built key relationships throughout her career in retail sales, fashion
design education, and employment at an overseas manufacturer in Spain who is now
a supplier of Baggit. Jennifer plans to leverage these relationships to eventually enter
into the major retail
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Marketing Summary

 Baggit

Upmetrics!
During the first year, Baggit will build on the success of attending local markets,
pop-up shops, and boutiques for regular sales. Baggit will attend an average of 4
markets or pop-up shops per month to maintain sales.


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Finance Summary

Net Income

Financial Year Revenue Expenses Net Income

Year1 184,074 219,452 -35,378

Year2 341,645 338,451 35,000

Year3 612,545 451,125 70,000

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2.

Business Description
Business Overview
Company History
Management
Location
Legal Structure
Vision & Mission
Professional Advisors
Goals & Objectives

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Business Overview

 Baggit

Baggit designs manufacture and sell the highest quality men’s and women’s designer
bags and totes. Baggit distributes products through its online store, boutique retailers,
and brick and mortar fashion outlets across North America. All of the materials are
sustainably sourced and
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Business Description

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 Baggit

The top three features of Baggit products and their value to the customer:

1. Intelligent organization compartments using lightweight materials.

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Unique Value Proposition

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Company History

 Baggit

Since a young child, Jennifer Martinez has been inspired by her grandmother’s love for
Spanish leather-carving and her grandfather’s career as a curator for The Museo
Nacional del Prado (Popularly called El Prado) museum in Madrid. Jennifer learned to sew
and pattern from her
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Management

 Baggit

Jennifer Martinez, 28 years old - 100% Owner/Designer

Jennifer Martinez holds a Bachelor of Design Degree from Emily Carr University. She
has been
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Location

 Baggit

Baggit currently operates rent-free from a 600 square foot garage at 252 National
Street, Burnaby. After 6 months of operations, the company will require a 1000 square
foot additional storage and assembly space. An example of the ideal 1000 square foot
space is 1352
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Legal Structure

 Baggit

Baggit is a sole proprietorship, 100% owned by Jennifer Martinez. A sole

proprietorship will fulfill all of the company’s requirements for at least the
first 2 years.
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Vision & Mission

 Baggit

In 10 years, the Baggit team will be 100 employees strong and headquartered
in Toronto and New York City. The company will have distribution partnerships
Upmetrics!
with major department stores throughout North America such as Nordstrom
and Macy’s.


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Professional Advisors

 Baggit

Rex Eagleton: 20-year business owner in the clothing industry.

Rex is a family friend of Jennifer’s and has been an invaluable source for advice and
guidance
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Goals & Objectives

Goal Objectives Date

• Reach $192,000 in sales

• Introduce one new product
• Attend at least 2 trade shows and 3 high-profile fashion
Goal 1 shows Year1
• Sell at least 1 exclusive product to a local or national
celebrity

• Reach $300,000 in sales

Goal 2 • Presence in a major retail chain Year2
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3.

Products and Services

Products

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Products

 Baggit

All materials for Baggit’s premium line are selected for quality and durability.
Materials include chromium-free, vegetable-tanned, high-end leather, and
recycled cork.
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Premium Sustainable Leather Designer Bag

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 Baggit

All materials for Baggit’s Alternate material line are selected for quality and
durability. Materials include Hemp fabric, bamboo, cork, organic wool, and linens.
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Alternate Sustainable Material Bag

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 Baggit

Heirloom edition bags are 100% handmade locally and incorporate original
artwork from up and coming global artists. Materials used are similar to the
premium design models but the hardware used for each bag uses pure materials
such as Stainless Steel, Carbon Fibre, Gold,
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Heirloom Limited Edition Bag

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  Baggit

These entry-level bags employ similar design and functionality as the premium
models, but use less-expensive materials and are produced 100% mechanically
by the manufacturer. The average material and labor costs for each bag are $20
and shipping is $150 per 100 bags.
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Basic Purse

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4.

Market Research
Industry Profile & Outlook
Local Market
Key Competitors / SWOT Analysis
Target Market
Customer Survey Summary

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Industry Profile & Outlook

 Baggit

Baggit operates primarily in the Manufacturing industry.

Handbags became a symbol of women's independence in the 20th century, according

to
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Local Market

 Baggit

Baggit’s early sales strategy will include targeting small vendors such as
boutique clothing and accessory shops, markets and pop-up shops, as well as
some trade shows and fairs.
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Key Competitors / SWOT Analysis

Ci Comme Ca

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Strength Weakness
• Uses many different options for
materials • Style across products is not distinct
• Strong reputation • Confusing website
• Connections in fashion industry • Brand is not cohesive
• Large social media following and • Only sells through Etsy
engagement

Opportunity Threat

• Could expand distribution • Vulnerable to crashes and

• Leverage large social networks changes because of reliance
more effectively upon Etsy

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Baggit

Start writing here..

Strength Weakness

• Highest quality materials • Smaller social media networks

• Strong relationships in fashion and
retail • Lower profit margins due to smaller
industries batches during the first year
• Offers both high-end luxury and
accessible lines of bags

Opportunity Threat

• Develop stronger social media • Changes in import regulations

networks
• Fluctuations in currency could
• Increase margins by making affect margins
larger raw material purchases
• Student interns
• Maximize partnership with
previous employers

Target Market

 Baggit

Primary Target Market – End consumer

• 26 – 32-year-old women; 35 – 40-year-old men

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Customer Survey Summary

 Baggit

Based on a recent survey poll, Baggit has updated its design and marketing
strategy to confirm a target market.
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5.

Sales & Marketing

Pricing Strategy
Marketing Strategy

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Pricing Strategy

 Baggit

This product is priced at the lower end of designer bags and is intended to be used
as an everyday bag with more common materials employed. The MSRP for this
product is $225.

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Alternate Sustainable Material Bag

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 Baggit

This product is priced at the high end of the ‘accessible’ designer bags but the low end
of the well-known brand names and is intended to be used for specific purposes and
special occasions with higher-end materials and designs used. The average MSRP of
this product is
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Premium Sustainable Leather Material Bag

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 Baggit

This product is priced at the premium level. Only 2-3 will be made per year and the
opportunity to purchase them will only happen 2 times per year on an application basis.
They are exclusive and one-of-a-kind items. These high-end bags are used to raise the
profile of Baggit products
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Heirloom Limited Edition Bag

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  Baggit

This product has been created to provide a smaller, more affordable entry level for
consumers. It is an everyday purse and a way for customers to discover the quality and
style of Baggit products, but without having to invest in a more expensive bag
immediately. The MSRP for this
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Basic Purse

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Marketing Strategy

 Baggit

Digital Marketing strategies will focus on Instagram, Facebook, Professional

Bloggers, and directing traffic to Baggit's website.
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 Baggit

Most Instagram and Facebook posts will be used to engage with customers as opposed
to advertising or direct selling with approximately 3 to 4 posts every day rotating
between fashion and entertainment info; makeup and fashion tutorials; latest trends
from Paris, New York, and
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Digital Marketing

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  Baggit

Baggit stands out at every event because of the unique and creative displays, for
example, turning our display table into a high-end-looking runway using mannequins.
At each event, the aim is to collect an email address from each booth visitor by offering
something of value in
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In Person Marketing

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 Baggit

Circulation of approximately 100 business cards per month at a cost of $300 per
year.

Circulation of approximately 500 flyers/per month at a cost of $500 per month.

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Print Marketing

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6.

Operations
Location(s)
Legal Issues
Insurance Issues
Human Resources
Process/Production
Risk Assessment

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Location(s)

 Baggit

Currently, Baggit operates out of a 600 square foot garage for its manufacturing,
storage, packaging, and shipping. Space includes a fabric and materials storage area,
2 large working tables, 2 sewing machines, and a small product storage area. Working
and storage are
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Legal Issues

 Baggit

Baggit anticipates the following legal issues:

• business licenses
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Insurance Issues

 Baggit

Basic Liability Insurance will be obtained through Atkinson and Terry Insurance
and will be paid in monthly installments to help increase monthly cash flow.
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Manufacturing | Business Plan [YEAR]

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Human Resources

Jennifer Martinez
Owners - [email protected]

Her responsibilities include building relationships that lead to sales,

design work and changes, sewing, cutting and shipping &handling.
Jennifer plans to employ staff to take over the manufacturing,
shipping, and handling during the first 6 months of operation. The
role will be paid a starting salary at $32,500 per year and will aim
for 40 - 60 hours per week.

 Baggit

The position is currently filled by family members on a pro bono basis, which will
continue until approximately month 6. Position requires approximately 10 hours
per week, with responsibilities include boxing, labeling, packaging, organizing
and shipping orders. The role
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Packaging/Shipping/Handling

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 Baggit

The position will begin as part-time during months 3 and 4 becoming full-time in
month 5.
Responsibilities will focus on manufacturing and assembly work (sewing, cutting,
gluing, etc.).
This role is key in enabling Jennifer to plan for and attend shows and trade fairs. The
role will
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Manufacturing Assistant

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 Baggit

Linda Holsworth bringing with her8 years of marketing experience. The position is
on a contract basis at approximately $40 per hour and is on an ‘as needed’ basis.
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Marketing Designer
Start writing here..

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Process/Production

 Baggit

Products/Services Production Flow: Raw materials will be ordered 2 months in

advance, allowing approximately 30-45 days of manufacturing time to maintain
sufficiently. Cutting is done in as large batches as possible and prepared material is
organized near the assembly
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Production Flow and Delivery Method of Products and Services

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Suppliers

Terms &
Supplier Policies
Product/Service Pricing
Name Location

$1,500
Industrial leather sewing machine 30 days shipping
Cal industries
6” leather skiving machine
Inc. $2,600 Southern
Hot Foil Stamping Machine California, USA
600

Minimum order
time of 14 days in
Vegetable-tanned leather hides
advance
Provides entry-level materials as
well
Archdale $4 - $45 per 30 day order time
as premium materials
Leather sq.ft. for material not in
Vegan and alternative leathers stock
available
North Vancouver,
Canada

Premium, authentic Spanish

leather $2 - $35 per sq. Up to 65 days

hides ft. custom clearance

BC Calzado
Unique hides finished with Min order of 5
Leather SL traditional Additional $5 hides
per sq. ft.
Spanish carving patterns
shipping Madrid, Spain
Manufacturing | Business Plan [YEAR] 27/37
 Terms &
Supplier Policies
Product/Service Pricing
Name Location

Website design and development $5,000

Mackrelmoto Digital marketing campaign Vancouver,

$800 per Canada
Media management month

Print and banner design work Per project

Risk Assessment

 Baggit

Cash flow is dependent on making estimated sales at 2 trade shows per year:
The first trade show is already confirmed. Jennifer will apply to attend multiple shows.
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7.

Financials
Breakeven analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet

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Breakeven analysis

 Baggit

Average Overhead cost per month: $18,000

Average Product Price: $153
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Projected Profit and Loss

2024 2025 2026

Revenue $720,051 $1,187,558.50 $1,990,421

Women's Designer
$141,938 $202,402 $288,552
Handbags

Unit Sales 710 1,012 1,443

Unit Price $200 $200 $200

Men’s Designer Bags $100,585 $127,582.50 $161,802.50

Unit Sales 402 510 647

Unit Price $250 $250 $250

Online Sales $477,528 $857,574 $1,540,066.50

Unit Sales 3,184 5,717 10,267

Unit Price $150 $150 $150

Cost Of Sales $554,401.02 $578,951.17 $610,654.42

General Costs $554,401.02 $578,951.17 $610,654.42

Production Costs $490,000 $504,700 $519,841

Material Costs $250,000 $257,500 $265,225

Labor Costs $240,000 $247,200 $254,616

Manufacturing | Business Plan [YEAR] 30/37

 2024 2025 2026

Manufacturing Overheads $64,401.02 $74,251.17 $90,813.42

Utility Costs $14,401.02 $23,751.17 $39,808.42

Equipment Depreciation $50,000 $50,500 $51,005

Revenue Specific Costs $0 $0 $0

Personnel Costs (Direct

$0 $0 $0
Labor)

Gross Margin $165,649.98 $608,607.33 $1,379,766.58

Gross Margin (%) 23.01% 51.25% 69.32%

Operating Expense $524,049.19 $555,645.52 $601,496.49

Payroll Expense (Indirect

$432,000 $440,841.60 $449,874.24
Labor)

Design Team $103,680 $106,358.40 $109,108.56

Lead Designer $60,480 $62,294.40 $64,163.28

Assistant Designer $43,200 $44,064 $44,945.28

Production Staff $237,600 $242,352 $247,199.04

Production Manager $57,600 $58,752 $59,927.04

Production Workers $180,000 $183,600 $187,272

Administrative Staff $90,720 $92,131.20 $93,566.64

Office Manager $50,400 $51,408 $52,436.16

Administrative Assistant $40,320 $40,723.20 $41,130.48

General Expense $92,049.19 $114,803.92 $151,622.25

Facility Costs $44,047.15 $47,645.58 $51,880.69

Rent $36,000 $37,440 $38,937.60

Utilities $8,047.15 $10,205.58 $12,943.09

Manufacturing | Business Plan [YEAR] 31/37

 2024 2025 2026

Marketing and Advertising $40,802.04 $59,742.34 $92,101.64

Digital Marketing $28,802.04 $47,502.34 $79,616.84

Print Advertising $12,000 $12,240 $12,484.80

Administrative Costs $7,200 $7,416 $7,639.92

Office Supplies $2,400 $2,424 $2,448.24

Insurance $4,800 $4,992 $5,191.68

Bad Debt $0 $0 $0

Amortization of Current
$0 $0 $0
Assets

EBITDA ($358,399.21) $52,961.81

$778,270.09

Additional Expense
$17,314.93 $15,380.77 $13,327.31
Long Term Depreciation
$12,168 $12,168 $12,168
Gain or loss from Sale
of Assets
$0 $0 $0

EBIT ($370,567.21
) $40,793.81 $766,102.09
Interest Expense
$5,146.94 $3,212.76 $1,159.29
EBT ($375,714.14
) $37,581.04 $764,942.78
Income Tax
Expense / Benefit
$0 $0 $0

Total Expense $1,095,765.14 $1,149,977.46 $1,225,478.22

Net Income ($375,714.14) $37,581.04 $764,942.78

Net Income (%) (52.18%) 3.16% 38.43%

Manufacturing | Business Plan [YEAR] 32/37

 2024 2025 2026

Retained Earning Opening $0 ($383,714.14) ($350,133.10)

Owner's Distribution $8,000 $4,000 $4,000

Retained Earning Closing ($383,714.14) ($350,133.10) $410,809.68

Projected Cash Flow

2024 2025 2026

Cash Received $720,051 $1,187,558.50 $1,990,421

Cash Paid $1,083,597.14 $1,137,809.46 $1,213,310.22

COS & General Expenses $646,450.21 $693,755.09 $762,276.67

Salary & Wages $432,000 $440,841.60 $449,874.24

Interest $5,146.94 $3,212.76 $1,159.29

Sales Tax $0 $0 $0

Income Tax $0 $0 $0

Net Cash From

($363,546.14) $49,749.04 $777,110.78
Operations

Assets Sell $0 $0 $0

Assets Purchase $60,000 $0 $0

Net Cash From

($60,000) $0 $0
Investments

Amount Received $150,000 $0 $0

Loan Received $100,000 $0 $0

Common Stock $0 $0 $0

Preferred Stock $0 $0 $0

Owner's Contribution $50,000 $0 $0

Manufacturing | Business Plan [YEAR] 33/37

 2024 2025 2026

Amount Paid $39,359.35 $37,293.51 $39,347.12

Loan Capital $31,359.34 $33,293.52 $35,347.14

Dividends & Distributions $8,000 $4,000 $4,000

Net Cash From $110,640.6

5 ($37,293.51) ($39,347.12)
Financing

Summary

Starting Cash $0 ($312,905.49) ($300,449.96)

Cash In $870,051 $1,187,558.50 $1,990,421

$1,182,956.4
Cash Out 9 $1,175,102.97 $1,252,657.34
($312,905.49
Change in Cash ) $12,455.53 $737,763.66
($312,905.4
Ending Cash 9) ($300,449.96) $437,313.70

Projected Balance
Sheet

2024 2025 2026

($265,073.49
Assets ) ($264,785.96) $460,809.70
($312,905.49
Current Assets ) ($300,449.96) $437,313.70

Cash ($312,905.49) ($300,449.96) $437,313.70

Accounts Receivable $0 $0 $0

Inventory $0 $0 $0

Other Current Assets $0 $0 $0

Long Term Assets $47,832 $35,664 $23,496

Gross Long Term Assets $60,000 $60,000 $60,000

Accumulated Depreciation ($12,168) ($24,336) ($36,504)

Manufacturing | Business Plan [YEAR] 34/37

 2024 2025 2026

Liabilities & Equity ($265,073.48) ($264,785.96) $460,809.68

Liabilities $68,640.66 $35,347.14 $0

Current Liabilities $33,293.52 $35,347.14 $0

Accounts Payable $0 $0 $0

Income Tax Payable $0 $0 $0

Sales Tax Payable $0 $0 $0

Short Term Debt $33,293.52 $35,347.14 $0

Long Term Liabilities $35,347.14 $0 $0

Long Term Debt $35,347.14 $0 $0

Equity ($333,714.14) ($300,133.10) $460,809.68

Paid-in Capital $0 $0 $0

Common Stock $0 $0 $0

Preferred Stock $0 $0 $0

Owner's Contribution $50,000 $50,000 $50,000

Retained Earnings ($383,714.14) ($350,133.10) $410,809.68

Check $0 $0 $0
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Manufacturing | Business Plan [YEAR] 36/37
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