Make your own free website on Tripod.com


Financial Plan

Liability Issues

Capital Equipment

Start-up Costs

Sources and Uses of Cash Statements

Projected Profit Goals (Cigarettes Only)


Liability Issues

The main liability issues for J B C Smoke Shop concern three areas:

Back to the Top


Capital Equipment List

Other than the equipment listed with J B C Enterprises, Inc., there is no additional capital equipment needed for J B C Smoke Shop to begin operations.

Back to the Top


Start-up Costs

Our computer is the main purchase to start operations (Already available) N/A
Online Store Expenses (See infoComCorp)
ShopSite Manager / Shopping Cart Setup
Domain Name Registration
Hosting Service Set-up Costs
SSL Certificate Set-up(Encryption / Security)
SSL Certificate Annual Fee
Monthly SSL service ($20 per month for 6 months)
Monthly Hosting Fees ($65 per month for 6 months)

$495
$72
$175
$125
$100
$120
$390

Initial Advertising Costs Approx. $1500
Preferred Account/Referral Cards Approx. $250
Other start-up Costs
Shipping Materials
Operating Capital

Approx. $350
Approx. $1500
Total Estimated Costs $5,077

Back to the Top


Sources and Uses of Cash Statements

Source
Use of personal cash from Matt Scofield, President and CEO of J B C Enterprises, Inc. and any loan that he will be personally responsible for.

Uses of cash as follows:

  1. Start-up Expenses
  2. Purchase of stock(cigarettes) and supplies

Back to the Top


Projected Profit Goals (Cigarettes Only)

Year One: Fiscal Year 2000 (October thru December)

Month No. of Customers Cartons1 Gross Profit2 ($)
October 20 80 400
November 50 200 1,000
December 100 400 2,000
FY 2000 Projected Total 680 3,400

Year Two: Fiscal Year 2001 (January thru December)

Month No. of Customers Cartons1 Gross Profit2 ($)
January 200 800 4,000
February 300 1,200 6,000
March 400 1,600 8,000
April 500 2,000 10,000
May 600 2,400 12,000
June 700 2,800 14,000
July 800 3,200 16,000
August 900 3,600 18,000
September 1,000 4,000 20,000
October 1,100 4,400 22,000
November 1,200 4,800 24,000
December 1,300 5,200 26,000
FY 2001 Projected Total 36,000 180,000

It is expected that sometime during FY2001, we will have to move from our residentail location to a small warehouse. This will probably occur around February or March, due to our limited capacity. Also, we expect to probably have to hire up two extra people by the end of the year. It is our goal to keep these two expenses, along with all other additional expenses, below 20 percent of our gross profit for FY2001, making our projected profit about $140,000.

1Research has shown that the average customer orders 4 cartons per month. Our limit per customer is 50 cartons per quarter.
2Our markup will be approximately $6-7 per carton with a gross profit of $5 per carton after expenses.

Back to the Top


Back to Table of Contents


Prepared By: Matt Scofield
September 2000