Executive Summary For Gym Shoes

We predict that during the second year of operation, our established presence in the market and our superior services will allow us to generate approximately 10% profit. This will be a higher margin than other shoes stores, those that generate under $1M in the U.S. market. If our sales projections end up being too high, we might be around the 7% benchmark that is typical in the industry. Our first year, however, is anticipated as a 1% net profit. Net profit in year one is $3,042, year 2 is $39,983, and year 3 is $ 45,386.

Based on our marketing plans, location, store size, and product assortment, we expect to collect annual sales of $412,439 in year one, $418,364 in year 2, and $444,954 in year three. Our average cost of goods sold will be 45% which leaves us with a gross margin of 55%. Also, we anticipate a monthly revenue of $6,000 per employee.
Our hourly pay is high when compared with others in the U.S. industry. We are paying sales team members the minimum wage that is currently established in Arizona and that is $10 an hour. Employee related expenses covers the cost of providing new shoes to our employees (incentive program). The rest of this expense (approximately $1,00/month will be the owners salary. Since this is a start-up we expect to incur additional expenses in the first year, our financial loan allows us to cover the unexpected expenses. In such case, we would end up suffering a net loss year