Gentle Touch Creations is a start-up business specializing in hand-made herbal products created by Joanne Lovejoy, the company founder. These products include herbal therapy packs, soaps, Saint-John's-wort oil, balsam eye packs, salves, moisturizers, herbal bath bags, and bath powder. All Gentle Touch Creations are made from herbs that are either garden grown or gathered in local fields or wooded areas when they are at their peak of maturity and the concentration of active ingredients is highest. Herbal products have grown in popularity with consumers over the past ten years. Herbal products industry exceeded $4.3 billion dollar in sales last year. Where once a customer would have to go to a speciality shop to purchase herbal products, now those same product are available at the local supermarket. The demand has created a cottage industry of supplying herbal products to companies who then market the product under their own brand name. Gentle Touch Creations will sell its product line to herbal product companies that sell baskets with specific themes (such as balsam salve and eye packs). Joanne Lovejoy has seven years of experience in the herbal product industry. She has worked as a Product Manager for both Jerry's Herbal Products and Safe Soap. She has maintained her contacts in the industry and has already signed contracts with Forest Meadows Products and WindWalker Products to supply herbal therapy packs, salves, balsam eye pack, and Saint-John's-wort oil.
The mission of Gentle Touch Creations is to create herbal products that heal, sooth and cleanse our customers. 1.2 Objectives
The objectives for Gentle Touch Creations are as follows:
* Achieve sales goal of $120,000 during first year of operation. * Achieve a regular customer base of 10 companies.
* Increase sales by 15% during the second year of operation.
Gentle Touch Creations is a provider of herbal products including herbal therapy packs, soaps, Saint-John's-wort oil, balsam eye packs, salves, moisturizers, herbal bath bags, and bath powder. Gentle Touch Creations sells its product line to herbal product companies that sell baskets with specific herbal themes. The company will be organized as a Sole Proprietorship.
2.1 Company Ownership
Gentle Touch Creations is owned by Joanne Lovejoy.
2.2 Start-up Summary
The start-up expense for the Gentle Touch Creations is focused primarily on production and extraction equipment. Joanne Lovejoy will invest $50,000. In addition, she will secure a $50,000 SBA loan.
Start-up Expenses| |
Legal| $600 |
Stationery etc.| $100 |
Insurance| $300 |
Rent| $600 |
Expensed Equipment| $40,000 |
Total Start-up Expenses| $41,600 |
Start-up Assets| |
Cash Required| $33,400 |
Start-up Inventory| $5,000 |
Other Current Assets| $5,000 |
Long-term Assets| $15,000 |
Total Assets| $58,400 |
Total Requirements| $100,000 |
Start-up Expenses to Fund| $41,600 |
Start-up Assets to Fund| $58,400 |
Total Funding Required| $100,000 |
Assets | |
Non-cash Assets from Start-up| $25,000 |
Cash Requirements from Start-up| $33,400 |
Additional Cash Raised| $0 |
Cash Balance on Starting Date| $33,400 |
Total Assets| $58,400 |
Liabilities and Capital| |
Current Borrowing| $0 |
Long-term Liabilities| $50,000 |
Accounts Payable (Outstanding Bills)| $0 |
Other Current Liabilities (interest-free)| $0 |
Total Liabilities| $50,000 |
Planned Investment| |
Joanne Lovejoy| $50,000 |
Other| $0 |
Additional Investment Requirement| $0 |
Total Planned Investment| $50,000 |
Loss at Start-up (Start-up Expenses)| ($41,600)|
Total Capital| $8,400 |